May 8, 2026/Oilprice.com
Tom Kool
Editor, Oilprice.com
Oil prices head for a 7% weekly loss as traders struggle to price in conflicting signals from U.S.-Iran talks and ongoing Middle East attacks.
Friday, May 8, 2026
Oil prices are set for a 7% weekly loss after markets remain confused about the outlook of a potential US-Iran negotiated settlement. ICE Brent is set to close the week at $101 per barrel, even as missile strikes and drone hits continue to sap any quick diplomatic breakthrough between Washington and Tehran. Meanwhile, the CFTC announcing it would investigate Trump’s war-related Truth Social posts will most probably lower the likelihood of yet another Friday price plunge.
Iranian Navy Arrests Its Own Tanker. Iran has seized the oil tanker Ocean Koi that was routinely sending Iranian fuel oil to the UAE’s port of Fujairah, claiming an alleged attempt to ‘disrupt the country’s oil exports by exploiting regional conditions’, escorting the vessel to the southern coast of Iran.
Chinese Tanker Gets Into US-Iran Crossfire. Marking the first instance that a Chinese-owned ship was targeted in the ongoing conflict between the US and Iran, Chinese media reported that an oil product tanker was attacked on Thursday off the UAE coast, despite the ship signalling ‘China owner & crew’.
BP Pulls the Trigger on Company Reorganization. Meg O’Neill, the incoming chief executive of UK oil major BP (NYSE:BP), reportedly told staff that her suggested reorganization plan to carve the company into two main business units – upstream and downstream – would start as early as this June.
Beijing Asks Banks to Halt Loans to Sanctioned Refiners. China’s financial regulator NFRA has asked the country’s largest banks to temporarily suspend new loans to the five refineries recently sanctioned by the US over their alleged imports of Iranian oil, contrasting earlier mandates to disregard sanctions.
Europe Unlikely to Meet Its Own Restocking Target. According to Europe’s largest natural gas supplier Equinor, the continent will not be able to replenish its depleted natural gas inventories – currently only 34% full – to reach a targeted 80% filling level before the start of next winter pushing prices higher.
Saudi Arabia Disappoints Buyers with Small Price Drop. The Saudi national oil company Saudi Aramco (TADAWUL:2222) has set the June-loading formula price for its Asian deliveries at a $15.50 per barrel premium to Oman/Dubai, marking a $4 per barrel drop despite expectations of a $10-15 per barrel cut.
Australia to Reserve 20% Domestic Gas Supplies. Australia’s government confirmed its new gas reservation policy this week, requiring LNG exporters to reserve at least 20% of their natural gas output for the domestic market from July 2027 onwards, exempting deals signed before December 2025.
Europe’s Jet Panic Starts to Normalize. According to Argus, European spot premiums for jet fuel have dipped to their lowest since the beginning of the US-Iran conflict, down to a $99 per metric tonne premium over ICE gasoil futures, on the heels of several airlines announcing regionwide flight curbs.
US Court Rules Trump Tariffs to Be Unlawful. The US Court of International Trade ruled this week that President Trump’s 10% import tariffs are unlawful and that the administration exceeded its authority by invoking the Trade Act of 1974, however the court declined to enter a universal injunction.
Libya’s Main Refinery Goes Offline. Libya’s 120,000 b/d Zawiya refinery went offline after clashes erupted near the facility, prompting the refinery operator to declare an emergency and evacuate all tankers from the adjacent port after heavy shelling struck multiple facilities across the plant.
EU Warns Against Easing Jet Fuel Specifications. Brussels urged caution to regional airports and airlines amidst growing calls to ease jet fuel specifications and allow for the consumption of Jet A fuel primarily produced in the US, despite being less suited for long-haul and cold-temperature operations.
Pemex Acknowledges Sheen in Houston Channel. Mexico’s state oil company Pemex has reported that an oil sheen was observed next to its fully owned 312,500 b/d capacity Deer Park refinery in Texas, claiming the sheen was formed from onsite activities and did not reach the Houston Ship Channel.
Indonesia Freezes 2026 Crude Exports. The Indonesian government appears to have frozen crude export approvals for this year, seeking to send the country’s oil output to domestic refineries, impacting some 60,000 b/d of crude exports that have historically mostly gone to neighbouring Thailand.
Copper Soars on Grasberg Mine Delay. Copper prices at London’s LME exchange jumped to a three-month high of $13,500 per tonne this Friday after Freeport-McMoran’s Indonesian unit announced that it was targeting a return to full production at the giant Grasberg mine only by early 2028.
