OPEC+ unexpectedly speeds up oil output hikes, oil drops

Eight OPEC+ members unexpectedly agreed to increase oil output by 411,000 barrels per day in May, higher than the expected 135,000 bpd. This decision, coming amid Trump's announcement of tariffs, caused oil prices to drop sharply. The increase aims to gradually unwind the recent 2.2 million bpd output cut due to healthy market fundamentals. The move is also aimed at improving compliance with production quotas, especially among laggards like Kazakhstan, which has exceeded its targets. The increase may also help offset any disruption in Iranian supply as Trump pressures Tehran. The May hike is part of a plan agreed by Russia, Saudi Arabia, UAE, and others to gradually boost output, with a meeting scheduled for May 5 to decide on June production levels.

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India's gasoline demand to peak by 2035, diesel by 2041

India's gasoline demand is expected to peak by 2035, followed by diesel consumption in 2041 or later as motorists switch to cleaner fuels. The country aims to achieve net carbon neutrality by 2070. India is projected to lead global oil demand growth this year, surpassing China, with fuel consumption expected to rise in the coming decade. Reliance Industries anticipates an energy transition with various fuel sources like LNG, CNG, and electric mobility dominating the transportation sector. The company operates the world's largest refining complex in Jamnagar, processing 1.4 million barrels of crude daily. To stabilize fuel prices and shield consumers from global oil market fluctuations, the Indian government is likely to intervene in local fuel pricing. With annual oil and gas consumption expected to grow by 3-4%, efforts are being made to increase domestic hydrocarbons production. Indian state refiners, including Indian Oil Corp, are planning to expand capacities by 20% in the next two years to meet the rising energy demand in the country.

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Port delays in Taiwan because of cracks down on Chinese ships

According to the Sources has warned that Taiwan's stricter inspections on China-related vessels could lead to port delays. Since the end of March, Taiwan requires vessels controlled in China, Hong Kong, or Macau to consult with authorities when applying for navigation permits, causing delays in berthing. The measures were implemented in response to submarine cable damage reports and to enhance security. Ships from certain flag states are considered substandard, with special scrutiny on vessels from Cameroon, Tanzania, Mongolia, Togo, and Sierra Leone. Taiwan detained a Hong Kong-owned vessel in March for damaging an international cable, leading to the monitoring of 52 suspicious Chinese-owned ships. Heightened tensions in the South China Sea have led to allegations of Chinese vessels disrupting undersea communications cables and confrontations at sea. Taiwanese authorities are tracking anomalies in AIS data to ensure maritime security.

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Chinese Creditors File $4.2M in Claims on Arrested Tanker ‘Argent (formerly Jaguar)’

The aframax tanker Argent, previously known as Jaguar, managed by Gatik Ship Management, is facing supplier claims totaling nearly $5 million. Ever Marine Engineering Trading and Winzard (Hong Kong) have initiated legal action, with the former securing an arrest warrant against the vessel at India’s Sikka port. The creditors are pressing their case in the High Court of Gujarat, concerned about the vessel’s complex ownership and management history. The ship has undergone multiple name changes and has had various owners and managers, making it difficult to determine liability. The current registered owner, Sapang Shipping, took control in February 2024, while Buena Vista Shipping has been listed as the beneficial owner since January 2023. The vessel's management trail includes Dubai-based LTA Shipping, Indian firm Bisu Marine & Shipping, and Zhu Jiang Shipmanagement, adding further complexity to the situation. Creditors argue that the renaming from Jaguar to Argent may have been an attempt to avoid obligations, a claim denied by the ship's supporters. Additionally, Ever Marine claims to be owed money for services provided to another tanker, Great Jacombo, with failed settlement talks exacerbating the dispute.