Brent oil spot price above $120 as ceasefire fails to solve deep disruption The price for actual Brent oil cargos surpassed $120 per barrel on Wednesday, nearly $30 higher than the June futures contract. This surge highlights the persistent tightness in global oil supplies, even as the U.S.-Iran ceasefire agreement remains in place. Analysts emphasize that restoring full oil flows will take months, regardless of the ceasefire’s success. The spot price for Brent crude oil reached $124.68 per barrel on Wednesday, signaling that the ceasefire is unlikely to resolve the deep supply disruptions caused by the five-week war. The spot price reflects immediate market conditions for oil deliveries within the next 10 to 30 days, contrasting with futures contracts for June and beyond. Despite a $19.75 drop in the spot price following the two-week ceasefire agreement between the U.S. and Iran, it remains $30 above the June futures contract, which closed at $94.75. This discrepancy underscores the ongoing scarcity of oil supplies, as analysts argue that the market is still grappling with the aftermath of the conflict. Amrita Sen, founder of Energy Aspects, explained that the spot price captures the real-world situation, including the shutdown of 13 million barrels per day of Middle East production due to a dramatic decline in tanker traffic through the Strait of Hormuz. Most tankers are now diverting to the U.S. to pick up oil, according to Sen, who noted that redirecting ships back to the Middle East could take until June. “It’s a complete mess,” Sen told CNBC’s “The Exchange,” highlighting the chaotic state of global oil logistics. Amena Bakr, an expert on the Middle East and OPEC at Kpler, added that hundreds of millions of barrels of oil have been removed from the market due to the war.#brent_oil #kpler #us_iran_ceasefire #amrita_sen #kuwait_petroleum_corporation
Indian Refiners Secure 60 Million Barrels of Russian Crude Amid Global Supply Strain Indian refiners have secured approximately 60 million barrels of Russian crude oil to ensure supply stability amid ongoing disruptions in global oil markets. The purchases, which include contracts signed at premiums of $5 to $15 per barrel over Brent crude, reflect efforts to secure energy supplies amid tensions in the Middle East and the closure of key shipping routes like the Strait of Hormuz. This volume is comparable to current-month imports but exceeds February levels, according to data intelligence firm Kpler. The decision follows a U.S. waiver allowing India to import Russian oil, which was initially issued to address supply constraints caused by the Strait of Hormuz crisis. The waiver was later expanded to include additional countries, permitting crude already at sea before March 12 to be purchased. India, which relies heavily on oil imports, has increasingly turned to Russian crude since the Russia-Ukraine conflict in 2022. However, purchases were previously scaled back due to U.S. pressure, prompting refiners to source oil from Saudi Arabia and Iraq. Many of those shipments, however, remained within the Persian Gulf after the escalation of recent conflicts. Indian officials expect the U.S. waiver to remain in effect as long as disruptions in the Hormuz route persist. Refiners such as Mangalore Refinery & Petrochemicals Ltd. and Hindustan Mittal Energy Ltd., which had avoided Russian supplies since December, have resumed participation in the market. At the same time, Indian refiners are diversifying their sourcing strategies to mitigate risks from global supply uncertainties.#strait_of_hormuz #kpler #indian_refiners #russian_crude #mangalore_refinery_petrochemicals_ltd
China's Heavy Reliance on Iranian Oil Imports China, the world's largest crude oil importer, has long been a key buyer of oil from Iran, a member of the Organization of Petroleum Exporting Countries (OPEC). However, this reliance faces challenges as the U.S. recently issued a 30-day sanctions waiver allowing limited Iranian oil exports, potentially increasing competition and prices for Chinese buyers. The waiver comes amid broader tensions over Iran’s nuclear program and its energy trade. China’s oil imports from Iran have been a strategic choice to reduce costs, especially as the country has also sourced significant volumes from Venezuela and Russia, both of which face Western sanctions. These purchases have helped China save billions of dollars on its import bill in recent years. According to data from the analytics firm Kpler, China accounted for over 80% of Iran’s shipped oil in 2025. Iranian crude has historically had limited buyers due to U.S. sanctions targeting Tehran’s nuclear activities. In 2025, China imported an average of 1.38 million barrels per day of Iranian oil, representing about 13.4% of its total seaborne crude imports, which totaled 10.27 million barrels per day. This volume highlights the scale of China’s dependence on Iranian oil despite international restrictions. The primary buyers of Iranian crude in China are independent refiners, often referred to as “teapots,” based mainly in Shandong province. These refiners are drawn to Iranian oil due to its price discounts compared to non-sanctioned barrels. Teapots account for roughly a quarter of China’s refinery capacity but operate on narrow or negative margins, making them vulnerable to fluctuations in domestic demand for refined products.#iran #china #kpler #organization_of_petroleum_exporting_countries #energy_aspects
Oil prices surge past $102 amid uncertainty over U.S. coalition efforts to secure tankers Oil prices climbed more than 2% on Tuesday, driven by growing concerns that President Donald Trump may struggle to assemble a reliable coalition to protect oil tankers navigating the Strait of Hormuz. Brent crude, the global benchmark, rose $2.35 to $102.56 per barrel, while U.S. crude gained 2.22% to $95.58 per barrel. The price increase followed statements from Trump, who claimed that NATO allies were unwilling to join a U.S.-led military campaign against Iran. The president’s comments on social media suggested the U.S. could proceed without allied support, dismissing the need for international collaboration. “U.S. NATO allies do not want to participate in the U.S. war against Iran,” Trump wrote, implying that the administration’s efforts to secure shipping lanes were facing significant resistance. This stance has fueled speculation about the effectiveness of any potential military response to recent Iranian attacks on oil tankers. The Strait of Hormuz, a critical maritime route between Oman and Iran, has become a focal point of global energy security. The strait accounts for approximately 31% of all seaborne crude oil shipments, with around 13 million barrels passing through daily in 2025, according to energy firm Kpler. Recent attacks on commercial vessels have disrupted oil flows, triggering fears of a prolonged supply crisis. Warren Patterson, head of commodities strategy at ING, highlighted the scale of the disruption, noting that “the sheer scale of the oil supply disruption makes it difficult for the market to find an adequate solution.” He pointed out that while the U.S. administration has proposed insurance guarantees and naval escorts for tankers, neither measure has been implemented.#iran #nato #donald_trump #strait_of_hormuz #kpler
