Week in Review – Oil Prices Ease as Ceasefire Talks Gain Momentum

Oil prices fell Friday as hopes for a longer U.S.-Iran ceasefire weighed on risk premiums, putting WTI on track for a weekly loss of more than $9/bbl. Brent and WTI were headed for their steepest weekly declines since early April after reports of a preliminary 60-day ceasefire extension.

Oil Markets Are Swinging Wildly. Is It Time to Lock in Fuel Prices?

One headline out of the Middle East can move oil markets within minutes, making fixed-price fuel strategies a smart way to manage volatility. In recent months, the Iran war has driven sharp price swings tied to tanker attacks, sanctions, and threats involving the Strait of Hormuz. 

What’s That: Kharg Island

Most people have never heard of Kharg Island, but the small Iranian island sits at the center of one of the world’s most critical oil export systems. As Iran’s main crude export hub, Kharg handles the vast majority of the country’s oil shipments, making it a key focal point in the ongoing Iran war and a growing concern for global energy markets.

Prices are up across the country - wrecking your fuel budget. Is it too late to lock in at a lower price? Turns out, you can use fixed price to lock in a price much lower than current levels, helping you spread your risk out into the future and protecting your bottom line. 

Urea Volatility Pushes DEF Prices Higher as Global Supply Tightens

Although fuel prices have been the focus of headlines, DEF prices are just as volatile. The shift is being driven by rapid changes in the global urea market, where disruptions tied to Middle East tensions are tightening supply and accelerating cost increases.

Rising Lubricant Prices: What’s Behind the Shift?

The conflict with Iran has brought tremendous pressure across the oil industry. From nat gas and crude oil to gasoline, diesel, and lubricants, the reduction of traffic through the Strait of Hormuz has had significant price impacts for fleets.  

With fuel prices returning to near record levels, the threat of loss has been mounting as well. The recent escalation between the U.S. and Iran, and the resulting 40%+ increase in fuel prices, creates a situation that isn’t just problematic for budgets, but also for fuel theft. 

What’s That: Floating Storage

What happens when the world keeps producing oil, but tankers can no longer deliver it? Under normal conditions, oil flows through a seamless chain of operations in which it is pumped, shipped, and refined. But when key transit routes tighten or shut down, this system breaks down.

What's That: Bab el-Mandeb Strait

The Bab el-Mandeb is closely linked to the Strait of Hormuz, as both form a continuous maritime corridor for global energy trade. Under normal conditions, Hormuz handles about 20 million barrels of oil per day, while the Bab el-Mandeb carries around roughly 12% of global oil shipments.

• About 25–30% of global urea exports come from the Arab Gulf.

• NOLA urea prices increased sharply from the mid $400s in late February to almost $700 by late March, up 46%.

• Spot supply availability has decreased. Mansfield maintains adequate supply availability to ensure our customers receive the DEF they need. 

• Monthly average urea prices rose from $449.25/ton in February to $598/ton in March, driving a 20+ cpg increase in DEF pricing. 
• North America is producing urea at high capacity but cannot fully replace lost imports, especially during peak demand periods.