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Latest market news

Delta expects fuel costs to double in 2Q

  • Market: Oil products
  • 08/04/26

Delta Air Lines expects its jet fuel costs to roughly double in the second quarter as the conflict in the Middle East continues to restrict supply.

The company expects an all-in fuel price of $4.30/USG during the second quarter, following an adjusted fuel price of $2.62/USG in the first quarter, Delta said this morning in its quarterly earnings call.

The first quarter fuel cost reflects a 7-8pc increase compared to the same period last year.

The US and Iran agreed to a two-week ceasefire starting late Tuesday, but so far there are few signs that the flow of tankers through the strait of Hormuz has picked up significantly.

The US Energy Information Administration yesterday increased its jet fuel price outlook to $4.22/USG during the second quarter, compared with just $2.74/USG during the first quarter. That estimate assumed a full resumption in tanker traffic through the strait by the end of April.

The Argus US jet fuel index averaged $2.89/USG during the first quarter, up by 65¢/USG, or 29pc, compared to the same period of 2025. The index — an average of spot prices across the US — sits at roughly $4.80/bl, having risen by $2.30/USG since the conflict started with Iran on 28 February.

By Amanda Hilow

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08/04/26

Shipowners await clarity on Hormuz after ceasefire

Shipowners await clarity on Hormuz after ceasefire

London, 8 April (Argus) — Vessel traffic through the strait of Hormuz has yet to rise since the US and Iran announced a two-week ceasefire , as shipowners wait for clarity on security arrangements and insurance cover for transits. US president Donald Trump said the ceasefire depends on free transit through Hormuz, a chokepoint for global oil flows. But AIS data do not yet show a surge in transits. Trump agreed to the two-week ceasefire with Iran on 7 April, subject to what he described as the "complete, immediate and safe opening" of the strait of Hormuz. Iran's supreme national security council confirmed the ceasefire but said the proposal under discussion would enshrine "continued Iranian control over the strait", according to Iran's Tasnim news agency, which is linked to the Islamic Revolutionary Guard Corps (IRGC). A small number of vessel movements via the strait have emerged since the announcement, including the Greek-owned bulk carrier NJ Earth and the Liberia-flagged Daytona Beach , according to vessel tracking firm MarineTraffic. But overall traffic has remained limited. The ceasefire could allow commercial shipping flows to recover after weeks of minimal traffic caused by security risks and insurance restrictions during fighting between the US, Israel and Iran. The fact that transits have not accelerated yet reflects uncertainty over technical, security and insurance details. "The shipping industry is currently awaiting technical details from the US and from Iran on how to transit the strait of Hormuz safely," said Jakob Larsen, chief safety and security officer at shipping association Bimco. He noted that Iran continues to seek control over the waterway. The International Maritime Organisation (IMO) welcomes the ceasefire and is "working with the relevant parties to implement an appropriate mechanism to ensure the safe transit of ships through the strait of Hormuz", secretary-general Arsenio Dominguez said. Maritime security firm Ambrey said Iran has maintained control over the strait, despite US demands for unrestricted passage. It expects the risk to shipping in the Mideast Gulf to ease while the ceasefire is in place, but warned there remains "a realistic possibility of continued risk to unauthorised strait of Hormuz transits, as well as to Israel- and US-affiliated shipping attempting to transit". Market participants said crude cargo numbers in the Mideast Gulf appear to be rising, but added that activity remains tentative until insurers spell out cover terms and protocols. By Leonard Fisher-Matthews Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US-Iran ceasefire weighs on European oil product prices

08/04/26
News
08/04/26

US-Iran ceasefire weighs on European oil product prices

London, 8 April (Argus) — European middle distillate and gasoline prices have dropped on Wednesday, 8 April, after the US and Iran agreed overnight to a two-week ceasefire that could see oil flow resume through the strait of Hormuz, but prices remain well above pre-war levels. Front-month Ice April gasoil futures dropped by 18.3pc to $1,247.75/t at 10:30 BST (09:30 GMT). The contract serves as the underlying price against which European diesel and jet cargoes and barges trade. Benchmark non-oxy gasoline barges were trading at $945.50/t at the same time, down by 9.9pc from the close on 7 April. Front-month Ice gasoil futures and benchmark non-oxy gasoline barges prices were still higher than pre-war levels of $752.75/t and $690/t on 27 February, respectively. The drop in European oil product prices has followed a sharp decline in front-month Ice Brent futures values, which fell 15.1pc since 7 April to trade at $94.04/bl at 10:30 BST. European middle distillate values have fallen more steeply than gasoline on the ceasefire news, given that the continent is a net importer of the former and a net exporter of the latter. Diesel and jet arrivals from the Mideast Gulf respectively made up around a fifth and half of total EU, UK and Norwegian imports last year, according to Kpler. The US and Iran said on 7 April that they would halt hostilities for a two-week period to finalise a peace deal. But their public statements differ on the status of navigation through the strait of Hormuz and uncertainty regarding vessel transit remains. The effective closure of the strait of Hormuz since the US-Israel war against Iran began on 28 February has weighed on loadings of diesel and jet from the Mideast Gulf over March. Arrivals are expected to ease this month, reflecting lower March cargo bookings from the Mideast Gulf that would typically now be starting to reach European ports. The drop in Ice gasoil futures is unlikely to translate into a rise in distillate bookings from the Mideast Gulf to European ports for now. The east-west gasoil paper spread remains at a discount, meaning that Europe would still struggle to compete for available volumes from the Mideast Gulf and India. The spread between Ice gasoil and Singapore gasoil swaps has narrowed somewhat on the session to a discount of around $150/t, according to one trader, down from around $210/t. The US remains a more likely source for European diesel imports, one European diesel trader told Argus , given that the spread between US Gulf coast and northwest European diesel values is much narrower. Europe's gasoline values have also risen since the war began, even though the region is a net exporter of the fuel. This is because of tighter east of Suez availability of crude and naphtha and condensates from the Mideast Gulf. Traders have booked numerous cargoes to ship European gasoline and gasoline blending feedstock naphtha to destinations east of Suez since the war broke out, likely bidding up European gasoline values to secure fixtures for destinations in Asia-Pacific. The ceasefire announcement has had little effect so far on the current structure in the European distillate and gasoline markets. The Ice gasoil futures structure remained in steep backwardation, with front-month at a $110.75/t premium to the second-month contract at 10:30 BST, compared with a $9.75/t spread on 27 February. The Eurobob oxy gasoline swap curve was showing front-month May swaps at a premium of $29.25/t over second-month June swaps Wednesday morning. The Eurobob oxy gasoline structure is typically in contango at this time of year as traders price in greater demand and blending costs from May onwards. By George Maher-Bonnett and Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Iran says Lavan refinery attacked despite ceasefire

08/04/26
News
08/04/26

Iran says Lavan refinery attacked despite ceasefire

Dubai, 8 April (Argus) — Iran's state-owned refiner NIORDC said a 55,000 b/d refinery on Lavan Island, south of the Iranian mainland, was attacked on Wednesday, hours after the US and Iran announced a two-week ceasefire aimed at finalising a peace deal. "At around 10am [local time] on Wednesday, the Lavan oil refinery facility located on Lavan Island was subjected to a cowardly attack by enemies," NIORDC said. First responders were working to bring the resulting fire under control and secure the facility, the company said. There were no casualties from the strike. Neither Israel nor the US has formally commented on the incident. The attack occurred several hours after Washington and Tehran said they would halt hostilities for two weeks to allow talks to proceed. Elsewhere in the region, Kuwait and the UAE both reported Iranian projectiles in their airspace on Wednesday, also after the ceasefire was announced. Kuwait's armed forces said it dealt with 28 Iranian drones between 08:00 and 13:00 local time. Some were targeting "vital oil installations and power stations in the south", according to the military. The UAE said its air defence systems were "dealing with a missile threat" around 13:30 local time. US president Donald Trump said he would delay planned attacks against Iran's civilian and energy sites by two weeks if Iran agreed to allow free transit through the strait of Hormuz. Iran's supreme national security council confirmed the ceasefire, but said the peace proposal under discussion includes "continued Iranian control over the strait". Pakistan, which acted as the main mediator in the talks leading to the ceasefire, will host negotiations between Iran and the US in Islamabad later this week, prime minister Shehbaz Sharif said. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Australia's Queensland fast-tracks condensate approvals

08/04/26
News
08/04/26

Australia's Queensland fast-tracks condensate approvals

Sydney, 8 April (Argus) — Australia's Queensland state government aims to accelerate commercial condensate production at the onshore Taroom Trough to improve long-term fuel security, given gasoil supply concerns across Australia stemming from the effective closure of the strait of Hormuz. The Queensland government plans to streamline environmental approvals and develop road and trunk infrastructure near the Taroom Trough, which is considered to have significant oil and gas potential, it announced today. It has called on the federal government to designate the project as one of national interest and assess it under the National Interest Fast-Track Assessment Pathway. The pathway would speed up environmental approvals by avoiding duplication of assessments already completed at the state level, the Queensland government said. Projects assessed under the Environment Protection and Biodiversity Conservation Act typically take several years to be approved. The Taroom Trough has been inactive for about 50 years, but Shell, which is exploring parts of the field, is producing about 200 b/d of condensate. Trucks carrying condensate are now travelling to fuel supplier IOR's Eromanga refinery in western Queensland, where it is processed into diesel, mostly used in underground mining, Shell said. IOR's Eromanga refinery can process about 1,250 b/d of locally produced crude from surrounding basins. By comparison, Ampol's Lytton refinery in Brisbane has crude distillation capacity of about 109,000 b/d. Faster, more efficient approvals are critical, lobby group Australian Energy Producers said, describing the Taroom Trough as a "highly prospective basin" that could play a major role in Australia's energy future. Beach Energy, Omega and Tri-Star E&P are also exploring the Taroom Trough through a joint venture. Beach has entered the trough after being awarded a 750km² permit in the region, it said on 10 February. The Queensland plan adds to fuel security measures by federal government and a move by Western Australia to compel fuel supply chain transparency . Australia's limited refining capacity and reliance on gasoil imports from crude-constricted refineries in South Korea have led to consumer stockpiling, including by mining and agricultural consumers of gasoil. Australian importers have sourced gasoil from the US and Europe since the start of the Iran war to take advantage of lower prices in these markets compared to Asia and in order to lock in supply security. By Grace Dudley Diesel prices to Asia (A$/t) Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Singapore’s bitumen prices hit historic highs

08/04/26
News
08/04/26

Singapore’s bitumen prices hit historic highs

Singapore, 8 April (Argus) — Singapore's bitumen export prices have reached record highs after widespread output cuts sharply reduced regional supply. At least two major refiners in Singapore have declared force majeure on bitumen exports because of feedstock supply disruptions, notifying several contract buyers of reduced volumes. A third refiner is understood to have very limited spot availability for April-loading cargoes. Offers for May-loading cargoes were also scarce, with feedstock shortages likely to persist because transits through the strait of Hormuz remain well below pre-conflict levels. Singapore's daily ABX1 price surged to $700/t fob Singapore on 7 April, up by more than 88pc from pre-conflict levels. But discounts to 3.5pc 380cst high-sulphur fuel oil (HSFO) fob Singapore prices narrowed sharply. The spread between the two products has narrowed to $17.25/t on 7 April, Argus data show. This shift may incentivise some Singapore-based refiners to raise bitumen output, but exports from Singapore are likely to stay limited in the near term. Some market participants are sceptical that more attractive production margins relative to fuel oil alone would prompt refiners to increase bitumen output, given persistent shortages across the barrel. Refiners are still likely to prioritise production of gasoline, gasoil and bunkers where possible. Some export cargoes from China have filled supply gaps in southeast Asia, with buyers in Vietnam and Thailand securing April-loading cargoes from refiners in south China. Some south China-origin cargoes were discussed and sold at around $670-680/t fob for April loadings, market sources said. Buy-side resistance strengthens While supply remains tight, buy-side resistance has grown on the back of rising raw material costs. Some contractors in Vietnam and Indonesia may delay or halt roadwork projects because of funding constraints. Many government budgets were set before the conflict, when bitumen prices were significantly lower, and it remains unclear if governments will provide additional funding in the wake of current higher prices. Many Vietnamese and Indonesian importers are also reluctant to commit to high-priced seaborne cargoes from Singapore, because current domestic trucked prices are lower. Bids and buying indications for April-loading cargoes from southeast Asian importers were largely capped at $660/t fob Singapore, on a netback basis. Australian buyers may be better placed to secure Singapore export supplies as some contractors rush to finish projects before the winter lull, but many remain cautious. Most want to avoid building stocks at current high prices, wary that spot prices could correct sharply and leave them holding expensive inventories. In the near term, government funding is expected to be mainly focused on more pressing issues, including providing subsidies for escalating transportation fuel costs, with infrastructure and roadwork projects given lower priority. Funding constraints from higher raw material costs are not the only factor limiting demand. The cost of gasoil, needed to operate trucks, heat tanks and run some machinery, has also surged since the start of the war, further adding to operating costs for contractors. By Leanne Tan Argus fob Singapore bitumen prices ($/t) Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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