In its Saturday meeting, OPEC+ agreed for the second consecutive month to accelerate oil production increases, announcing that in June it will raise output by 411,000 barrels per day — nearly three times the initially planned volume — despite falling prices and expectations of weaker demand.
Riyadh appears to be pursuing a low-price strategy aimed at disciplining overproducing members such as Kazakhstan and Iraq as both countries have repeatedly exceeded their output quotas.
Oil prices fell to a four-year low below $60 per barrel in April, as tariffs imposed by U.S. President Donald Trump sparked concerns over global economic weakness. On the other hand, Some analysts believe that signs of slowing growth in U.S. oil output could provide some support for oil prices over the longer term.
A threat by President Trump on Thursday to impose secondary sanctions on buyers of Iranian oil helped ease some of the pressure on oil prices, as it could tighten global supply. The warning, which followed the postponement of U.S. nuclear talks with Iran, could also complicate trade negotiations with China, the world’s largest importer of Iranian crude.
Last Thursday, it was announced that Donald Trump had dismissed his National Security Advisor, Mike Waltz. According to senior officials and Trump advisers,the fate of Waltz — a hawkish member of the Trump — administration was sealed in March after a journalist was added to a sensitive Signal chat group. However, he had been at odds with other top officials since the beginning of the administration — including over whether military action should be taken against Iran.
Clashes between U.S. forces and Houthis in Yemen have also escalated over the past week. In response to the U.S. aggressive attacks on Yemen, which began on March 15 and have gradually intensified, the government based in Sanaa announced this Saturday morning that it has decided to impose a ban on U.S. crude oil exports.
The Humanitarian Coordination Center in Sanaa issued a statement declaring that companies violating this ban will be placed on the list of sanctions for those responsible for the attacks on Yemen. The vessels of these companies will not be allowed to pass through the Red Sea, Bab el-Mandeb Strait, the Gulf of Aden, the Arabian Sea, and the Indian Ocean.
Bitumen prices showed a downward trend in most regions worldwide over the past week. Export cargoes from the Mediterranean, Rotterdam, and the Baltic saw declines of $16.5, $12.5, and $12.5 respectively, with final prices settling at $385/t, $432/t, and $422/t. In Singapore, bitumen was priced at $404/t, reflecting a decrease of $6.6. Meanwhile, in South Korea, export bitumen averaged $387/t, indicating relatively stable market conditions.
In Iran, market participants have reported that the recent explosion in Bandar Abbas has slowed customs clearance processes, leading to delays in the loading of previously contracted bulk bitumen cargoes. Containerized cargo operations have also remained somewhat subdued. Export offers from Iran were reported in the range of $340/t to $345/t FOB, reflecting current market conditions.