The Aug Brent Futures flat price has continued its rally this morning, initially rising from $82.30/bbl at 06:00 BST to $82.95/bbl by 10:30 BST. Subsequently, the price has slightly fallen, but still sits in mid-$82.70/bbl handles as of 11:15 BST (time of writing). The European Commission has announced its proposed level of tariffs against Chinese electric vehicles, which range from 17% to 38% depending on the manufacturer, with Brussels arguing Chinese companies benefit from “unfair subsidisation”. Global observed oil inventories built by 19.3mb in April, with on-land stocks surging by 83.5mb after 8 months of draws, while oil-on-water plummeted by 64.2mb. Senegal’s Sangomar oil and gas field has produced its first oil according to operator Woodside Energy, turning the country into the world’s newest oil producer, with expectations the field will produce around 100kb/d of crude with similar qualities to Oman. Uncertainty remains over the oil prospect found by veteran geologist Vitor Abreu off the coast of South Korea. South Korean President Yoon Suk Yeol has been enthusiastic about the potential 14 billion barrels of resources, which would supply the country’s oil consumption for 4 years and gas consumption for 29 years, however, there is only a 20% chance the basin will yield fuel during exploration. The front and 6-month spreads are $0.40/bbl and $2.68/bbl, respectively.
