Meanwhile, the EU discourages Southeast Asia from obtaining oil from Russia: File image/Pixabay
Oil prices on Tuesday dipped somewhat, with Brent slipping from a session high of above $111 per barrel, after U.S. president Donald Trump stated that Iran informed Washington it is “in a state of collapse” and wants the Strait of Hormuz open as soon as possible.
West Texas Intermediate spent most of the session creeping towards the $100 mark, trading roughly 3 percent higher.
Noting that there were no immediate signs of meaningful transit flows through the strait, ING on Tuesday issued a new base case for oil, with ICE Brent averaging $104 per barrel in the second quarter, up from $96 previously.
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Unfortunately, this energy crisis is benefiting Russia
Kaja Kallas, European Union
The bank added that significant inventory drawdowns and slow flow recovery meant that Brent would average about $92 per barrel in the fourth quarter of 2026, compared to earlier estimates of $88 per barrel for that time frame.
Meanwhile, amid the global scramble to acquire more product, Kaja Kallas, high representative for foreign affairs and security policy for the European Union, stated on Tuesday during meetings with ASEAN country representatives that he would prefer Southeast Asia countries to diversify their oil supply by buying from producers other than Russia.
He said, “There is an energy crisis right now in the world, and unfortunately, this energy crisis is benefiting Russia.”
Kallas went on to explain that higher oil revenue sales meant more funding for Russia’s war in Ukraine: “We want peace and then we do not have these kind of problems; so, that is why we are advocating for diversifying resources and finding them elsewhere.”
Tuesday also saw reports that Germany was scrambling to reroute crude to the PCK Schwedt refinery following Russia deciding to halt Kazakh oil deliveries through the Druzhba pipeline starting May 1; Berlin entered into negotiations with Poland over moving replacement barrels through the port of Gdansk, with potential deliveries flowing onward to Schwedt, which provide much of eastern Germany with fuel.
Julianne Geiger, researcher for Oilprice.com noted that “There is a bigger signal here for the oil market: what looks like a regional supply disruption adds to a broader premium around logistics security, not just crude supply…In Europe, barrels are one question [but] moving them is another.”
Ship & Bunker News Team
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