The Brent futures flat price for the prompt contract has remained relatively rangebound this morning, falling no lower than $79/bbl. It managed to surpass the $80/bbl mark at 09:00 GMT to reach $80.10/bbl, before it retraced back down to $79.94/bbl at 09:40 GMT.
In an attempt to ensure the Russian oil $60/bbl price cap is more enforced, companies involved in shipping Russian oil will need to prepare new documentation to portray how the contract was priced. This is an attempt to curtail companies pricing oil under the cap and making up for their losses through inflated costs for shipping, insurance, and so on. Three tankers carrying Russian Sokol grade crude, totalling nearly 5mbbls of oil, have been stuck near Sri Lanka for a month on the back of possible sanctions regarding the G7 price cap. The four-week average of Russian seaborne crude oil exports has increased by 8% from a fortnight ago, sitting at 3.28mbbls/d through Dec 17.
Nigeria’s Dangote oil refinery has received its second crude cargo of the month, with a delivery of 1mbbls of oil from NNPC.
Spreads have broken out of contango up, with the front and 6-month Brent futures spreads at $0.10/bbl and $0.84/bbl, respectively.
