Oil Prices Are Set for Another Monthly Dip
Crude oil prices extended their latest decline today, looking set for a monthly drop that, according to Reuters, will be the deepest in three years. At the time of writing, Brent crude was trading at $63.46 per barrel, with West Texas Intermediate at $59.68 per barrel. Since the start of the month, the benchmarks have lost between 15% and 16%, Reuters reported. This is the deepest dive since November 2021. Trump’s tariff offensive seems to be the chief reason for the price decline, with virtually every analyst and economist predicting global economic trouble because of the tariffs. The predictions naturally affect oil prices negatively, but the effect has been reinforced by OPEC+’s decision to roll back its production cuts by a larger amount than initially planned, deepening fears of oversupply. In more recent news that pressured the benchmarks, Chinese factory activity shrank in April as a direct result of Trump’s tariff barrage, with the purchasing managers’ index reading for the month dipping from 50.5 in March to 49, Reuters reported earlier today. “The sharp drop in the PMIs likely overstates the impact of tariffs due to negative sentiment effects, but it still suggests that China’s economy is coming under pressure as external demand cools,” Capital Economics analyst Zichun Huang told Reuters. “Although the government is stepping up fiscal support, this is unlikely to fully offset the drag, and we expect the economy to expand just 3.5% this year,” she added. Since any bad economic news out of China tends to pressure oil prices immediately, this latest report will likely weigh on Brent crude and WTI as well, potentially deepening the weekly rout and extending it over time. A weekly build in U.S. crude oil inventories reported by the American Petroleum Institute on Tuesday did not help prices, either, even though it follows a bigger draw for the previous reporting week.
Russia’s ESPO Blend crude finds new market in India amid China dip
Chinese firms, India’s ESPO Blend crude oil imports from Russia reached their peak since August 2024 in April, Reuters quoted data from LSEG and traders in a report. ESPO Blend is Russia’s primary light sweet crude oil grade, a significant component of its energy exports. This particular blend is loaded onto tankers at the Kozmino port, strategically located to facilitate efficient shipment to key Asian markets. ESPO Blend Notably, ESPO Blend has become a highly sought-after crude oil, particularly among Chinese independent refiners, often referred to as “teapots,” due to its specific characteristics and the reliable supply from the East Siberia–Pacific Ocean (ESPO) pipeline system that feeds the Kozmino terminal. Due to sanctions on Russian entities and scheduled maintenance, Chinese state refiners reduced their ESPO Blend crude oil acquisitions in March and April. This increased the supply available to India, the second-largest consumer of Russian oil. The quality of ESPO crude, characterised by its low sulfur content and moderate API gravity, makes it an attractive feedstock for refineries looking to produce a range of high-value petroleum products. Its popularity in Asia underscores the evolving global energy landscape and the increasing importance of Russian oil supplies to meet the growing energy demands of the region. The consistent flow of ESPO Blend from Kozmino through dedicated infrastructure ensures a stable supply, further solidifying its position as a favored crude oil grade for many Asian buyers. Imports to India this month Indian ports have been receiving increased shipments of Russia’s ESPO Blend crude oil, reaching approximately 400,000 metric tons (around 100,000 barrels daily) this month. This is a significant increase from March, which saw only one cargo of 100,000 tons, as reported by LSEG and traders. India’s ESPO Blend crude oil imports reached their highest level in April since August of the previous year, according to Reuters data. “Recently, traders have started showing us ESPO volumes as well. Seems there is low demand in China for ESPO”, one of the sources in India’s oil industry was quoted in the report. India is the top seaborne buyer of Russian oil, but it typically purchases limited quantities of ESPO Blend. This is because the grade’s complex logistics and higher cost compared to Russia’s Urals crude usually make it a less appealing option for Indian refiners. India to import additional 200,000 metric tons of ESPO Blend LSEG reports that India is expected to import an additional 200,000 metric tons of ESPO Blend in May. Market participants suggest that India’s ESPO Blend imports could increase next month due to greater availability and continued weak Chinese demand for the crude. Lower international benchmark prices have caused the cost of Russian oil, including ESPO Blend, to fall below the $60 per barrel Western price cap. This decrease may facilitate the easier procurement of the grade.
Woodside Greenlights Louisiana LNG
Woodside Energy has announced the final investment decision for the Louisiana LNG project and plans to start production in 2029. The facility is designed to have three liquefaction trains with a total capacity of 16.5 million tons annually. This would boost Woodside’s total LNG capacity to 24 million tons annually by next decade, the company said. Woodside also has permits to expand the Louisiana LNG facility by another two trains, which would boost its capacity to a total 27.6 million tons annually. Woodside bought the former Driftwood LNG project as part of its acquisition of Tellurian for $1.2 billion last year. The deal “adds a scalable US LNG development opportunity to our existing approximately 10 Mtpa of equity LNG in Australia,” Woodside chief executive Meg O’Neill said at the time. Then, this year, reports emerged that Woodside was looking for partners in the projects, seeking to sell up to 50% of the ownership. Indeed, earlier this month the news broke that Woodside had sold 40% in Louisiana LNG to infrastructure investment firm Stonepeak. Under the terms of their deal, Stonepeak will provide $5.7 billion of the total capital expenditure for the project, accounting for 75% of total capex for the project this year and next. The entry of a partner in the project boosts Louisiana LNG’s economics and Woodside’s cash flow profile, said the Australian energy giant said. The price tag for the facility has been calculated at $17.5 billion. With Stonepeak’s entry into the project, Woodside’s share of that tag has declined to $11.8 billion. Per its operator, the Louisiana LNG facility will generate some $2 billion annually in net operating cash once it enters full-scale operation. “It will drive Woodside’s next chapter of value creation, giving the company’s global portfolio the potential to generate over $8 billion of annual net operating cash in the 2030s,” the company said.
Fuel oil transport via Ctg-Dhaka pipeline to begin trial in first week of May
BPC plans to commence full-scale operations after the trial run, the officials said. Earlier in March, BPC had planned to start transporting fuel through the new pipeline, but administrative complications delayed the process. Moni Lal Das, general manager (Commerce and Operations) of BPC, told TBS that project officials held a meeting yesterday (22 April) to review progress. “It was decided that the trial run will begin in the first week of May,” he said. According to BPC officials, once the project becomes operational, the cost of transporting fuel oil will decrease, the supply chain will become more reliable, and environmental pollution can be reduced. Around 2.7 million tonnes of diesel will be transported annually through the pipeline, saving around Tk 2.36 billion each year. According to project documents, the project was approved in October 2018 with an initial completion deadline of December 2020. However, actual work began in 2020. The deadline was first extended to December 2022, and later to December 2024. Initially, the project was estimated to cost Tk 28.61 billion, but the figure has now risen to nearly Tk 36.99 billion. The project is being implemented by the Bangladesh Army’s 24 Engineer Construction Brigade on behalf of BPC. The pipeline has two sections: one stretching from Patenga in Chattogram through Feni, Cumilla, Chandpur, and Munshiganj to the Godnail depot in Narayanganj; and the other from Godnail to Fatullah. In addition to the pipeline, the project also includes booster pumps, nine generators, and other related equipment.
Oil Prices Slip Further as Market Remains in Grip of Tariff Fear
Crude oil prices extended their decline today as traders remained fixated on demand and the impact of the tariff war between the U.S. and China on its future prospects. At the time of writing, Brent crude was trading at $65.41 per barrel, with West Texas Intermediate at $61.63 per barrel, both down from opening. Besides the tariff exchange, which has already hurt energy trade between the United States and China after the latter imposed retaliatory tariffs on U.S. crude oil and natural gas, OPEC+ is also keeping oil traders awake at night. After the cartel surprised everyone by deciding to boost production in May by about three times the original amount, now there are reports it might do the same in June. Reuters broke the news last week, citing unnamed sources as saying several OPEC members would suggest another substantial output hike for the following month. The publication also suggested that the motivation behind the more robust than originally planned output boost was overproduction by Iraq and Kazakhstan, especially the latter. To add insult to injury, Astana earlier this month said it could not curb production in line with OPEC+ quotas because it could not order international oilfield operators around, after it pledged to compensate for its overproduction. “Kazakhstan’s statement cements our view that OPEC+ may implement another accelerated three-month unwind again in the May meeting and it may continue again in July and through the summer,” Energy Aspects’ Amrita Sen said at the time. A further bearish factor for oil prices, U.S.-Iran nuclear talks seem to be making some progress, which means there is a chance that U.S. sanctions on Iranian oil will be lifted at some point in the future. That chance is pressuring prices right now. ING’s commodity analysts, meanwhile, reported Monday that traders had boosted their net long positions on Brent crude after two weeks of reductions. Most of that boost came from the liquidation of short positions, the Dutch bank’s team said.
Oil Prices Down Nearly 2% on Demand, Iran, Tariffs
Oil prices were trading down 2% intraday, driven by ongoing demand fears combined with perceived progress on Iran nuclear talks and tariff whiplash, which continues to unsettle markets. On Monday, April 28, at 2:57 p.m. ET, Brent crude was paring its 2% daily losses slightly, trading down 1.60% at $65.80, and West Texas Intermediate (WTI) was trading down 1.59% at $62.02. Oil prices are responding most heavily to the impact of the trade war on demand. On Monday, Beijing lashed out at Washington’s negotiating tactics, with Zhao Chenxin, deputy director of the National Development and Reform Commission, saying: “They make up bargaining chips out of thin air, bully and go back on their words.” The Chinese official was responding to Trump’s statement earlier in the day that the U.S. would not lower tariffs on China unless Beijing offered up “something substantial”. Last week, Rystad Energy told clients that if we get into a situation where we have a real and sustained trade war, it could cut China’s oil demand growth in half, which would lead to a massive dive in oil prices, Forbes reported. With respect to Iran, an unnamed senior U.S. official reportedly told Reuters that “further progress” had been made during talks with Iran over the weekend, which Washington hopes will lead to assurances from Tehran that the country’s nuclear program will not be weaponized. Those assurances, in turn, could lead to an easing or reversal of sanctions, stoking fears that Iranian oil could flood the market. Last Friday, Trump said he thought the talks would be successful, but Israel is attempting to throw a spanner in the works, with Netanyahu demanding that no relief be given to Iran unless all of its nuclear infrastructure is removed, in entirety. Israel is not satisfied with an Iran that will not weaponize its nuclear capabilities; instead, it wants an Iran stripped of the ability to even develop ballistic missiles, Al Jazeera reported. Trump insisted on Friday that regardless of Israel’s warring actions, the U.S. was not getting “dragged in”.
Biogas sector gets ₹2 billion investment commitments
The biogas sector has received investment commitments of more than ₹2 billion at renewable energy exhibition RenewX 2025, industry body Indian Biogas Association (IBA) said on Sunday. The three-day expo was held at the Chennai Trade Centre, Nandambakkam from April 23 to 25. The event, organised by Informa Markets, saw investment commitments of ₹2 billion through various MoUs (memorandum of understandings) in the biogas industry, IBA sid in a statement. RenewX brought together stakeholders from across the bioenergy, solar, wind, energy storage, and management sectors, offering a platform for strategic collaborations and progressive discussions. With a focus on bioenergy innovations, sustainable partnerships, and policy dialogue, the bioenergy sector attracted strong interest from industry, professionals, investors, and policymakers, the statement said.
GreenLine launches LNG truck fleet for Bekaert’s logistics
GreenLine Mobility Solutions Ltd has launched a fleet of LNG-powered trucks for Bekaert to help decarbonise road logistics. This partnership aligns with India’s vision for a gas-based economy and is part of both companies’ commitments to reduce carbon emissions. The new LNG-powered trucks, deployed at Bekaert’s Ranjangaon Plant, are part of a pilot phase designed to significantly cut the carbon footprint of Bekaert’s logistics operations. Each truck is expected to cut up to 24 tonnes of CO₂ annually, bringing Bekaert closer to its goal of becoming carbon net-zero by 2050 and achieving 65 per cent sustainable sales. GreenLine’s LNG truck fleet has already driven over 40 million kilometres, avoiding more than 10,000 tonnes of CO₂ emissions. The company plans to expand its fleet to over 10,000 LNG and EV trucks and set up a nationwide network of LNG refuelling stations, EV hubs, and battery swapping facilities, aiming to cut 1 million tonnes of CO₂ annually.
Demand-supply imbalances, weakness in transportation fuel cracks impacted O2C segment: Mukesh Ambani
Mukesh Ambani-led Reliance posting a 2% YoY rise in profit saw its oil-to-chemicals segment results were impacted due to significant weakness in transportation fuel cracks, the company said. “Significant demand-supply imbalances in downstream chemicals markets have led to multi-year low margins,” said Mukesh Ambani. Oil-to-chemical business, which houses the company’s twin refineries at Jamnagar in Gujarat and petrochemical plants, saw EBITDA fall 10 per cent to Rs 15,080 crore in Q4 and 12 per cent in the full fiscal. It made good the fall in cracks or margins by placing more fuel in the domestic market. In the fuel retail business, Jio-bp – its joint venture with BP of the UK – saw diesel and petrol sales rise by 24.4 per cent and 25.4 per cent respectively in the quarter, the statement said. Lower gas output from KG-D6 fields led to an 8.6 per cent fall in the pre-tax profit of its oil and gas business to Rs 5,123 crore in Q4. “The average KGD6 production for the 4Q is 26.73 million standard cubic metres per day of gas and 19,000 barrels a day of oil,” it said. Commenting on the results, Reliance chairman and managing director Mukesh D Ambani said FY2025 has been a challenging year for the global business environment, with weak macro-economic conditions and a shifting geo-political landscape. “Our focus on operational discipline, customer-centric innovation and fulfilling India’s growth requirements has helped Reliance deliver a steady financial performance during the year,” he said. The O2C business posted a resilient performance despite considerable volatility in energy markets. Significant demand-supply imbalances in downstream chemicals markets have led to multi-year low margins. “Our business teams ensured optimization of integrated operations and feedstock costs to enhance margin capture across value chains,” he said. Reliance Industries Ltd on Friday reported a 2.4 per cent rise in its March quarter net profit, as its retail business rebounded and oil business defied global downtrend. Consolidated net profit of Rs 19,407 crore, or Rs 14.34 per share, in January-March – the fourth quarter of April 2024 to March 2025 fiscal (FY25) – was compared to Rs 18,951 crore, or Rs 14 a share, in the same period a year back, according to a stock exchange filing by the company. Profit was also up sequentially from Rs 18,540 crore in the October-December quarter. The company’s revenue from operations rose to Rs 2.6 lakh crore from Rs 2.4 lakh crore recorded in January-March 2024.
Three more Russian insurers seek India’s approval to provide cover for oil tankers, sources say
Three more Russian insurers, including a subsidiary of top lender Sberbank, have asked India for approval to provide marine insurance for oil shipments sent to Indian ports, two sources with knowledge of the matter said, as Moscow looks to maintain deliveries despite Western sanctions. India has already approved five insurers from Russia, which has no insurance firms in the International Group of P&I Clubs, which provides liability cover for personal injury or environmental clean-up claims for the majority of the world’s tankers. The move comes as growing scrutiny of Russia’s oil supply chain by Washington and the European Union, including compliance with a price cap set by G7 for the use of Western ships and insurance, makes it increasingly difficult for Moscow to export its oil. Russia is the top oil supplier to India for a third straight year in 2024-25 as New Delhi benefited on cheap supply after Western nations imposed sanctions on Moscow and curtailed their energy purchases in response to Russia’s invasion of Ukraine. India’s shipping ministry is evaluating the plea from Sberbank Insurance, Ugoria Insurance Group and ASTK Insurance Company to offer protection and indemnity (P&I) coverage for ships, the sources said.