The September Brent Futures contract experienced a weak start this morning, opening around $85/bbl at 09:00 BST, dropping to a low of $84.74/bbl by 11:00 BST, before slightly recovering to $85.86/bbl at the time of writing (11:15 BST). In geopolitical news, Yemen’s Houthi rebels are suspected of attacking a ship near Nishtun, Yemen, close to the Oman border. This incident comes amid the return of the USS Dwight D. Eisenhower after leading the U.S. response to Houthi assaults, which have significantly reduced shipping through the Gulf of Aden, crucial for Asian, Middle Eastern, and European markets. In other news, the EU plans to sanction 27 vessels, including oil and LNG tankers, as part of its latest sanctions package against Russia, which also bans new investments and services to complete LNG projects under construction, in an attempt to hinder Russia’s attempts to build out its LNG exports and grow market share. India, the world’s third-largest oil importer, looks to increase oil deals with Russia, with state-owned Bharat Petroleum Corp planning to build a new refinery, with other state refiners BPCL and Hindustan Petroleum Corp also looking at long-term deals. According to Reuters, Nayara Energy, majority-owned by Russian entities, has already agreed to buy 8-10mb monthly in 2024 at a $3-3.50/bbl discount linked to the Dubai marker. At the time of writing, the Sep/Oct and Sep/Mar Brent futures spreads are at $0.67/bbl and $3.31/bbl, respectively.
