![\"Iran](\"https:\/\/shipandbunker.cdn.speedyrails.net\/a\/img\/_asp_d6afe34881134d19842789dd7a5fe7d4.v.652.jpg\")
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\n\tMeanwhile, the EU discourages Southeast Asia from obtaining oil from Russia: File image\/Pixabay<\/p>\n
\u201c<\/p>\n \n\tUnfortunately, this energy crisis is benefiting Russia<\/p>\n Kaja Kallas, European Union<\/p>\n
\n\tOil prices on Tuesday dipped somewhat, with Brent slipping from a session high of above $111 per barrel, after U.S. president Donald Trump stated <\/a>that Iran informed Washington it is “in a state of collapse” and wants the Strait of Hormuz open as soon as possible.<\/p>\n
\n\tWest Texas Intermediate spent most of the session creeping towards the $100 mark, trading roughly 3 percent higher.<\/p>\n
\n\tNoting 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.<\/p>\n
\n\tThe bank added<\/a>\u00a0that 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.<\/p>\n
\n\tMeanwhile, 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.<\/p>\n
\n\tHe said<\/a>, \u201cThere is an energy crisis right now in the world, and unfortunately, this energy crisis is benefiting Russia.\u201d<\/p>\n
\n\tKallas went on to explain that higher oil revenue sales meant more funding for Russia\u2019s war in Ukraine: \u201cWe 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.\u201d<\/p>\n
\n\tTuesday 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.<\/p>\n
\n\tJulianne Geiger, researcher for Oilprice.com noted <\/a>that \u201cThere 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\u2026In Europe, barrels are one question [but] moving them is another.\u201d<\/p>\n