Oil and gas news covering crude prices, drilling, OPEC, natural gas, refineries, and energy sector developments.
Oil prices jumped over 3% on Monday with WTI crude at $93.87/barrel and Brent at $96.36/barrel, as Iran launched missiles at Israel after Israel renewed attacks on Lebanon. The gains reversed most of last week's losses. OPEC+ approved a fourth output increase, but analysts say it is unlikely to ease supply concerns due to Strait of Hormuz closure.
Brent crude closed at $94.25 and WTI at $91.30 on Monday after Iran and Israel ended multiple exchanges of fire following a call from U.S. President Trump to halt hostilities. Prices had surged over 5% earlier but settled lower after the ceasefire statements.
The national average for regular gas fell 16 cents to $4.164 per gallon on Monday, down 40 cents from the 2026 record high of $4.564 on May 21. Twenty-three states now average below $4 per gallon, a sharp reversal from May 20 when every state was at $4 or higher.
Oil prices spiked with Brent crude above $100/barrel and US crude up 5% to $96.5 after Israel launched airstrikes targeting central and western Iran. Explosions were reported in Isfahan, Tabriz and Tehran. Trump reportedly advised Netanyahu against further retaliation.
Brent crude climbed 4.5% to $97.32 a barrel on Monday after Israel and Iran exchanged fire, threatening the fragile ceasefire and dimming hopes for reopening the Strait of Hormuz. Both benchmarks have gained over 60% this year.
OPEC+ major members agreed to increase oil output quotas by 188,000 barrels per day for July, continuing the gradual rollback of voluntary supply cuts. The quota hike is largely symbolic as a blockage of exports from the Persian Gulf prevents most members from implementing it.
Saudi Arabia slashed the price of Arab Light crude for Asian buyers by $6 a barrel for July, deeper than the $5 reduction expected. The cut reflects slowing demand in Asia, while the near-closure of the Strait of Hormuz continues to restrict supplies from the Persian Gulf.
Shipowners have placed orders for a record 262 oil supertankers, each capable of hauling 2 million barrels of crude oil. The current tanker boom is driven by the Iran war, with the order book enough to handle the entirety of US crude oil exports.
The Iran war's impact on European energy markets is intensifying, with Eurozone petrol sales falling 3.5% year-on-year in April, the first drop in almost two years. The airline industry faces a $100 billion fuel hit, with margins and profits expected to halve this year. British Airways warned that air fares will likely rise again if fuel prices stay high.
The commentary argues that reopening the Strait of Hormuz after a prolonged closure will be an unprecedented logistical challenge for the oil industry, with significant uncertainty about the timeline. It contrasts optimistic views of a quick restart with pessimistic estimates of months or permanent well loss, suggesting the market is deeply divided.