June 9, 2026/Oilprice.com
In this week’s newsletter, we will take a quick look at some of the critical figures and data in the energy markets this week.
We will then look at some of the key market movers early this week before providing you with the latest analysis of the top news events taking place in the global energy complex over the past few days. We hope you enjoy.
Supertankers Are Back in Fashion as Hormuz Risk Rewrites Oil Trade
– The US-Iran crisis has engendered a shipbuilding boom, with the global orderbook for supertankers soaring to an all-time high as shippers race to lock in Very Large Crude Carriers (or VLCCs) for 2029-2030 delivery.
– There are currently 262 VLCCs on order at shipyards around the world, surpassing the previous record posted in September 2008 (254), with orders jumping by a whopping 99 since the beginning of 2026.
– Some 10% of the world’s non-sanctioned VLCC fleet remains locked up in the Persian Gulf, wary of transiting the Strait of Hormuz, alerting shippers to the geopolitical risks inherent in oil trading.
– Simultaneously, market prices for second-hand tankers have been shooting through the roof, with 10-year-old VLCCs now going for $115 million, the highest since 2008.
– Whilst the rejuvenation of the global VLCC fleet (on average 14.1 years) is definitely a welcome development, the flurry of VLCCs coming into the market by the 2030s could foreshadow a very challenging freight market throughout the next decade.
Market Movers
– US oil major Chevron (NYSE:CVX) has applied to join Argentina’s RIGI tax incentive regime for its $13.8 billion unconventional El Trapial project in the Vaca Muerta shale play, potentially becoming one of the largest investments in the country.
– Global trading house Mercuria has bought the Argentina downstream business of Brazil’s Raizen for $1.42 billion, taking over the second-largest fuel distribution network in Latin America.
– Italian oil major ENI (BIT:ENI) has signed an exploration and development agreement with the Gambia for offshore block A1, five years after BP gave up on exploring the country amidst COVID-19 turmoil.
– Brazil’s state oil company Petrobras (NYSE:PBR) has been granted the right to develop 8 offshore blocks in the West African country of Côte d’Ivoire, covering most of its ultra-deepwater acreage.
– US LNG developer Glenfarne has upped its price estimate for the 20 mtpa Alaska LNG project from the previous $44 billion to $55 billion, with the cost of the liquefaction terminal assessed at $24-28 billion.
Tuesday, June 02, 2026
The sudden escalation in Israeli and Iranian missile attacks and the subsequent Trump-brokered (temporary) cessation of hostilities has prevented another breakout in crude prices, with ICE Brent continuing to linger around $92 per barrel. Fears of demand destruction are increasingly coming to the forefront, with Chinese buying activity falling into the summer months, traditionally a period of peak demand for the Asian continent.
OPEC+ Is the Group That Keeps on Giving. The seven remaining members of OPEC+ rubberstamped another 188,000 b/d production hike for July, the fourth straight monthly increase despite the closure of the Strait of Hormuz that slashed some 10 million b/d from Gulf countries’ output.
Saudi Aramco Pulls Asian Prices Lower. Saudi national oil firm Saudi Aramco (TADAWUL:2222) slashed its formula prices for July-loading cargoes to Asia by $6 per barrel, reflecting a weakening regional pull and putting its flagship Arab Light grade $9.50 per barrel above Oman/Dubai.
Chinese Oil Imports Slump to 8-Year Low. According to Chinese customs data, crude imports to the Asian powerhouse dropped to just 7.8 million b/d in May, the lowest since October 2017 and almost 4 million b/d lower than a year ago as Beijing leans heavily on run cuts and inventory draws.
Colombia Eyes Venezuela’s Oil Revival. Oil companies in Colombia, a country that has managed to reverse a terminal production decline due to the influx of qualified PDVSA employees fleeing the Maduro regime, are increasingly considering investment opportunities in neighbouring Venezuela.
Norway’s Largest Oilfield Gets Reallocated. France’s TotalEnergies (NYSE:TTE) and Norway’s Aker BP have received slightly bigger stakes in the largest European oil field Johan Sverdrup, to 8.72% and 31.72% respectively, to the detriment of Norwegian state-controlled hydrocarbon holding Petoro.
Iran War Disrupts China’s New Refineries. Market disruptions due to the US-Iran war have triggered project delays in China’s upcoming downstream projects, with Saudi Aramco’s 300,000 b/d Panjin refinery pushing back its startup from June to early October, similarly to CNPC’s Dalian expansion.
Recovering Runs Curb Russia’s Oil Exports. Russia’s refinery runs are expected to increase by 250,000-400,000 b/d this month after hitting a 17-year low of 4.7 million b/d in May amidst Ukrainian drone strikes and spring maintenance, slashing exports from its European ports.
Trump Administration Hails Hormuz Progress. US Energy Secretary Chris Wright said that ship traffic through the Strait of Hormuz is rising ‘very meaningfully’, just as Kuwait offered 4 million barrels of its crude to be delivered outside of the Gulf, joining the ranks of the United Arab Emirates.
Ichthys Strike Tightens Australia’s LNG Outlook. INPEX (TYO:1605), the Japanese operator of the Ichthys LNG plant offshore Australia, has hardened its stance vis-à-vis striking employees and asked the country’s workplace tribunal to block industrial action at the facility, planned for June 11.
UK Oil Major Cuts Company in Half. London-based oil giant BP (NYSE:BP) has formalized the restructuring of the company into separate upstream and downstream units, with company veteran Gordon Birrell assuming the former and Richard Harding serving as interim head of downstream.
Trump’s Alaska Auction Fails Spectacularly. The June 5 federal lease sale in the Arctic National Wildlife Refuge disappointed market watchers, with only 5 leases allocated between the state of Alaska itself (3) and a smaller producer HEX Alaska (2), sapping the outlook for Alaskan drilling.
Vancouver to Dredge TMX Waterway. The Port of Vancouver is launching dredging works this summer to allow Aframax tankers, usually carrying 700,000 barrels, to load fully as the current depth of the waterway from the Westridge Marine Terminal caps TMX loadings at just 550-600,000 barrels.
Gulf Aluminium Woes Start to Bite. Primary aluminium output in Gulf countries plunged to its lowest in more than a decade, to just 330,000 tonnes in May and down 35% from a year ago, paving the way for a boom in Chinese exports that have jumped to 632,000 tonnes last month.
Washington Ups the Ante on China’s Tech. The US Department of Defense added several Chinese business giants, including technology firms Alibaba and Baidu and EV manufacturers BYD and Nio to its list of companies linked to China’s military, banning them from government-related contracts.
