Ceasefire Ends Oil Price Gains While China Demand Declines

Oil prices declined after a ceasefire took effect between Iran and Israel. Brent crude fell 3.35 percent to $91.09 per barrel while WTI crude dropped 3.82 percent to $87.81 per barrel. China's oil imports reached an eight-year low. The decline in Chinese demand coincided with the end of the price rally that followed earlier missile exchanges.

Shipowners placed orders for 262 very large crude carriers, exceeding the previous record of 254 set in September 2008. Orders increased by 99 since the start of 2026. Second-hand VLCC prices reached $115 million for 10-year-old vessels, the highest level since 2008.

Approximately 10 percent of the non-sanctioned VLCC fleet remains in the Persian Gulf, avoiding transit through the Strait of Hormuz. New VLCC deliveries scheduled for 2029-2030 could increase available tonnage during the next decade. The current fleet averages 14.1 years old.

Kuwait offered its first crude cargoes to Asia since the conflict began. India reported a 6.5 percent drop in fuel demand and a 20 percent decline in LPG consumption. Chevron applied to join Argentina's RIGI tax incentive program for a planned $13.8 billion investment.