Dec’24 Brent futures flat price saw further strength this afternoon, trading at $77.74/bbl at 12:00 BST and rallying up to $79.30/bbl at 17:50 BST (time of writing). Price has continued to rise this afternoon as fears mount of a potential Israeli attack on Iranian oil and nuclear sites, with Israeli Prime Minister Netanyahu stating this is a “historic opportunity”. In the news today, Reuters has reported that Saudi Arabia, UAE, and Qatar are lobbying Washington to stop Israel from attacking Iranian oil infrastructure. In addition, several Gulf states, including Saudi Arabia, have communicated to the US that they refuse to allow Israel to use their airspace for any attack on Iran. In other news, Russian Finance Minister Anton Siluanov has said the Kremlin is looking to reduce the country’s dependence on oil in its budget revenues, amid depressed oil prices. Siluanov stated that the share of oil revenues in Russia’s budget is set to decline to 27% next year and to 23% by 2027, compared to making up 35-40% of revenues prior to the Russo-Ukraine conflict. Finally, the Mexican government has passed a bill to ensure greater control over state-owned oil giant Pemex. According to Bloomberg, the bill proposes to encourage Pemex to prioritize social and economic objectives over corporate profit. At the time of writing, the front month (Dec/Jan’25) and six-month (Dec/Jun’25) Brent futures spreads are at $0.54/bbl and $2.40/bbl, respectively.
