oilcollapse

Iran's crude oil and condensate exports in May fell to the lowest level in at least six years, dropping below 300,000 barrels per day, according to shipping data and analyst estimates. The decrease is primarily due to the U.S. naval blockade imposed on 13.04.

OPEC's oil production dropped by 1.22 million barrels per day in May, hitting 16.33 million barrels, according to a Bloomberg study. This is the lowest level since at least 1989, the agency notes. More than half of the drop came from Iran. The blockade of the Islamic Republic's ports by the U.S. and supply disruptions from the Persian Gulf continued to restrict hydrocarbon production. Additionally, the analysis excluded the United Arab Emirates, as the country exited OPEC last month after six decades of membership.

Oil production in Russia has "dipped" a bit compared to the volumes at the start of the year due to "unscheduled repairs" at several oil refineries (NPPs). This was stated by the Deputy Prime Minister of the Russian Federation, Alexander Novak, while chatting with journalists at the St. Petersburg International Economic Forum (SPIEF) on Thursday, June 4.

The US Strategic Petroleum Reserve decreased to 357.1 million barrels for the week ending May 29, 2025, hitting a low not seen since January 2024. This is reflected in the weekly report on the oil market status from the US Energy Information Administration, released on Wednesday.

Kuwait Petroleum Company expects to recover about 70% of oil production within six to eight weeks after the reopening of the Hormuz Strait, stated the managing director of the International Marketing Company.
Sheikh Khaled Ahmad Al-Sabah made this statement on Tuesday at the S&P Global Energy Middle East Petroleum and Gas Conference. According to him, it will take about another month to restore the remaining 30% of production capacity.

The Russian authorities are considering implementing restrictions on the export of diesel fuel and aviation fuel. This was reported on Tuesday, May 26, by the agencies "Interfax" and RBC, citing sources. Deputy Prime Minister Alexander Novak held a meeting regarding the current situation in the fuel market.
"It's necessary to keep a constant watch on the situation @…> to ensure coordinated actions between federal agencies and industry companies, and to develop additional response measures promptly if needed," he stated.

Shipping in the Strait of Hormuz, a critical route for oil supplies from the Persian Gulf, could resume as early as June, as the risk of oil supply depletion increases pressure on U.S. leadership, according to JPMorgan. Fitch has projected a slightly longer timeline—but they also expect the strait to reopen this summer. Meanwhile, Moody's has warned that President Donald Trump has only a week left before "real problems" start to arise.

In Russia, amidst the ongoing war against Ukraine, tensions are escalating in the fuel market. The pressure is coming from multiple fronts: regular strikes by Ukrainian drones on oil infrastructure are cutting refining capacities, while instability in the Middle East and risks around the Hormuz Strait are impacting global prices. Meanwhile, the summer holiday season is approaching—a time when fuel demand typically spikes, further pushing prices up, experts note.

In mid-May, the freight rates for tanker shipments of Urals crude oil from western ports in Russia to India took a dip. According to sources in trading and shipping circles cited by Reuters, this is due to seasonal factors, an oversupply of vessels from the 'shadow fleet', and broader shifts in global logistics.

London has granted an indefinite license for the import of kerosene and diesel fuel made from Russian oil in third countries. The decision takes effect on May 20.
The UK has issued a license for the import of diesel fuel and aviation kerosene made from Russian oil in third countries. This was reported on the government's website on Tuesday, May 19. The document will allow the import of oil products of Russian origin, bypassing the current sanctions.

Russia's state oil and gas revenues, which account for about a fifth of all budget receipts, are set to surge by 39% year-on-year in May, reaching 700 billion rubles ($9.8 billion). As highlighted by Reuters' calculations released on Wednesday, this boost is fueled by a global oil price rally triggered by the war in Iran.

The U.S. Treasury Department has extended the exemption from sanctions on Russian oil transported by sea for another month. This was announced by U.S. Treasury Secretary Scott Bessent on Monday, May 18. The new 30-day license will allow "the most vulnerable countries to temporarily access Russian oil that is currently at sea," he wrote on social media X.

The deadline for the temporary lifting of US sanctions on Russian oil products already at sea has expired. The easing was in effect until May 16 and has not been extended, according to reports from Reuters and dpa. They draw this conclusion from the fact that no notification of an extension has appeared on the US Treasury's website.

Israel and the USA are ramping up military preparations for a possible coordinated strike on Iran as soon as next week. This is reported by The Times of Israel, citing Middle Eastern and American officials.
The strategic escalation follows a diplomatic deadlock in negotiations mediated by Pakistan and supported by China. The talks have hit a wall due to technical disagreements over Tehran's underground nuclear program and long-term control of the strategically vital Strait of Hormuz.

CIA Director John Ratcliffe met on Thursday, May 14, in Havana with high-ranking officials from Cuba's Ministry of the Interior. This was reported by Reuters citing a statement from the Cuban government.
The meetup was organized to foster political dialogue between the two countries, according to the official statement. The Cuban side provided evidence that "categorically demonstrates that the island does not pose a threat to U.S. national security," reported from Havana. They expressed the view that Washington no longer needs to keep Cuba on the list of state sponsors of terrorism.

South Korea didn't import Iranian oil in April, according to preliminary data released Friday by the Korea Customs Service.
The world's fifth-largest oil buyer imported a total of 8.5 million tons of crude oil last month, down from 11 million tons recorded a year earlier.

Cuba's fuel reserves have been completely depleted, reported Energy and Mining Minister Vicente de la O Levy on Wednesday, May 13. According to global media, amid the blockade of oil supplies to the country by the U.S., this island nation is facing the largest wave of power outages in decades.

Global oil and petroleum reserves dropped by nearly 4 million barrels per day in April—that's more than the combined consumption of the UK and Germany. The International Energy Agency (IEA) warned that as reserves, which act as a safety cushion for the market, dwindle, the risks of price volatility are spiking sharply.

French Finance Minister Roland Lescure stated on Wednesday that France currently has no plans to release its oil reserves; however, this matter may be revisited in the coming weeks.
Lescure made these statements ahead of the upcoming G7 meeting next week. Energy security is expected to be one of the key topics for discussion.

For the first time in three years, a Japanese oil refinery has bought Mexican crude, as supply disruptions from the war with Iran and the effective closure of the Strait of Hormuz force the country to seek alternative sources of raw materials.
Cosmo Energy Holdings Co. is set to receive 1 million barrels of Isthmus crude in the coming days, according to a shipping report reviewed by Bloomberg. The tankers Eagle Kuantan and Eagle Kangar will load the oil at Pemex's Pajaritos terminal on Mexico's Atlantic coast. The delivery is being made by the trading arm of Petroleos Mexicanos — PMI.