Natural Gas Liquids (NGLs)

Feb’25 Brent futures failed to break through support at $72.00/bbl throughout this afternoon and rose to $73.00/bbl at 1720 GMT (time of writing). Kremlin spokesman Dmitry Peskov warned that potential G7 sanctions on Russia’s oil industry could destabilise global energy markets and prompt Russian countermeasures. Proposed measures include reducing the price cap on Russian oil from $60 to $40/bbl or banning its transportation and insurance, though no decision has been finalised. According to data from China’s General Administration of Customs, Russia increased oil exports to China by 1.65% year-on-year to 99 million tons from January to November, valued at $57.4 billion (+4.7%). The EIA forecasts U.S. energy consumption rising from 93.69 qBtu in 2023 to 95.15 qBtu in 2025, with liquid fuels averaging 20.29 mb/d in 2024 and 20.53 in 2025 and natural gas at 90.5 and 90.2 billion cubic feet/day, respectively. Russia remains China’s top oil supplier, followed by Saudi Arabia and Malaysia. Presidents Putin and Xi emphasised strengthening energy cooperation during their May meeting. At the time of writing, the front (Feb/Mar’25) and 6-month (Feb/Aug’25) Brent Futures spreads are at $0.39/bbl and $1.89/bbl, respectively.

Feb’25 Brent futures fell from $73.70/bbl at 13.30 GMT to $72.70/bbl at 17:00 GMT. A US government shutdown is looming as Congress scrambles to pass a stopgap bill, despite opposition from President-elect Donald Trump, according to Fox News. Economic data showed jobless claims dropped to 220,000 (below estimates) from 242,000 the previous week. US GDP saw annualised growth of 3.1% in Q3, and the Philadelphia Fed survey plunged to -16.4, compared to the predicted +3.0. BP and Iraq have agreed on key technical terms for redeveloping Kirkuk’s oil and gas fields, which still contain billions of barrels of recoverable oil. According to BP, a full contract is expected to be finalized by early next year. Oil operators in North Dakota, the third-largest oil-producing state in the US, are still working to restore facilities after October wildfires impacted key production areas. The fires caused a loss of 520kb and a decline in output to 1.178 mb/d from 1.2 mb/d in September. According to Sinopec, China’s oil consumption is projected to peak by 2027 at 800 million metric tons, equivalent to 16 million barrels per day. They say the decline in diesel and gasoline demand is driving the slowdown in the world’s largest oil importer. At the time of writing, the front (Feb/Mar’25) and 6-month (Feb/Aug’25) Brent Futures spreads are at $0.40/bbl and $1.78/bbl, respectively.

The Feb Brent Futures contract has seen mixed price action this afternoon, trading up to a high of $74.12 at 16:10 GMT before retracing to $73.61/bbl where it sits at the time of writing, as EIA data highlighted that crude inventories fell by 934kb to 421mb in the week, compared with analysts’ expectations in a Reuters poll for a 1.6mb draw. In headlines, Saudi Arabia’s crude oil exports rose to a three-month high in October, reaching 5.92 mb/d, up 174 kb/d from September, according to JODI data. Despite the increase in exports, crude production slightly declined to 8.972 mb/d as the Kingdom adhered to its pledge to produce “around 9 mb/d.” Meanwhile, Barclays downgraded the energy services sector from positive to neutral, citing a bearish oil macro environment, limited investor capital influx, and potential risks to 2025 earnings. The sector, after three years of double-digit growth, is now experiencing a mid-cycle spending plateau. At the time of writing, the front (Feb/Mar’25) and 6 month (Feb/Aug’25) Brent Futures spreads are at $0.38/bbl and $1.64/bbl, respectively.

The Feb’25 Brent futures flat price came off from the $73.20/bbl handle on Tuesday afternoon. Price action fell to lows of $72.50/bbl before recovering to $72.88/bbl by 17:20 GMT (time of writing). In the headlines, the UK imposed new sanctions on two oil trading firms, 2Rivers DMCC and 2Rivers Pte Ltd, and 20 shadow fleet vessels to curb Russian oil revenues and disrupt its illicit oil trade. Oil has washed ashore tens of kilometres of Russia’s Black Sea coast after two aging tankers were damaged in a storm, and now a third tanker has issued a distress signal, heightening fears of a worsening environmental disaster. Saudi Arabia has successfully extracted lithium from oilfield brine and plans to launch a commercial pilot program led by Lihytech, showcasing its move toward alternative wealth sources amid rising global demand for battery minerals. Kazakhstan has downgraded its 2024 oil output forecast to 87.8 million tons, citing maintenance at the Tengiz oilfield, with production totalling 80.5 million tons from January to November. Finally, the front (Feb/Mar) and 6-month (Feb/Aug) Brent futures spreads are at $0.32/bbl and $1.41/bbl respectively.

The Feb’25 Brent futures flat price traded within a 60c range on Monday afternoon. Price action reached highs of $74.30/bbl at 15:30 GMT before falling to $73.74/bbl at 16:30 and climbed to $74.11/bbl by 17:30 (time of writing). In the news, the EU has adopted its 15th sanctions package against Russia, targeting 52 new vessels from Russia’s shadow fleet, increasing the total number of such listings to 79. Shell and its partners will invest $5 billion in Nigeria’s Bonga North offshore oil project, expected to produce 110kb/d by the decade’s end, with 300 million barrels of oil equivalent recoverable from the area. According to a Bloomberg article, tanker rates for Middle East-China routes (TD3C) have fallen by a third this year due to weaker Chinese crude demand, driven by an economic slowdown, fuel-switching, and OPEC+ delays in restarting idled supply, impacting supertanker operators significantly. US SPR crude inventories rose by 0.5mb w/w to 393.0mb last week. Finally, the front (Feb/Mar) and 6-month (Feb/Aug) Brent futures spreads are at $0.38/bbl and $1.69/bbl respectively.

The Feb’25 Brent futures flat price initially saw a decline this afternoon from around $74.10/bbl at 12:00 GMT to $73.60/bbl at 14:05 GMT, before recovering to $74.40/bbl at 17:50 GMT (time of writing). Bullish sentiment has persisted as Russia launched an extensive aerial attack today on Ukraine’s power grid, using 93 missiles and nearly 200 drones, as per Reuters. Ukrainian officials stated six unspecified energy facilities were damaged in the western region of Lviv, in addition to serious damage to thermal power plants, according to DTEK, Ukraine’s largest energy provider. In other news, the presidential decree banning Russian companies from selling oil and petroleum products at the price cap set by the G7 countries has been extended until the end of June 2025, according to Russian news agency Interfax. Finally, US-based Kosmos Energy said it is in early preliminary discussions to buy Tullow Oil, with a view to potentially expanding their African oil assets. Kosmos currently has oil production and exploration assets in basins offshore Ghana and Equatorial Guinea, while Tullow Oil owns offshore production platforms in Ghana, Gabon and Cote d’Ivoire. At the time of writing, the Feb/Mar’25 and Feb/Aug’25 Brent futures spreads stand at $0.39/bbl and $1.67/bbl, respectively.

The Feb’25 Brent futures contract initially saw weakness this afternoon, falling from $73.60/bbl at 12:00 GMT down to $72.45/bbl around 16:10 GMT, before recovering to $73.65/bbl at 17:30 GMT (time of writing). Crude oil prices were elevated amid reports that Israel is preparing for potential strikes against Iranian nuclear infrastructure, according to The Times of Israel. In the news today, the Kremlin has stated that Russian President Putin backs Hungarian Prime Minister Orban’s efforts to achieve a Christmas ceasefire in Ukraine and a major exchange of prisoners of war, as per Reuters. In other news, Saudi Arabia plans to ship 46mb of crude oil to China in January, the highest volume since October and significantly higher than the 36.5mb of volume expected in December, as per Reuters. Sinopec and PetroChina is expected to lift more crude, as well as non-state owned refiners Rongsheng Petrochemical and Shenghong Petrochemical. Finally, Germany’s oil product sales increased 6.2% y/y to 7.602 million tons in September, with heating oil recording the highest rise of 45.9% y/y to 1.114 million tons and jet fuel seeing the biggest decline of 18.7% y/y to 0.714 million tons, according to BAFA. At the time of writing, the Feb/Mar’25 and Feb/Aug’25 Brent futures spreads stand at $0.39/bbl and $1.67/bbl, respectively.

The Feb’25 Brent futures contract was supported this afternoon, rising from $73.00/bbl at 12:00 GMT up to $73.40/bbl at 17:50 GMT (time of writing). In the news today, OPEC’s monthly report has cut oil demand growth forecasts for this 2024 by 210kb/d to 1.6mb/d, marking the fifth consecutive month the cartel has reduced its demand projection, as per Bloomberg. Meanwhile, crude oil production from all OPEC members rose by 104kb/d in November m/m, due to increased output in Libya, Iran, and Nigeria, according to OPEC’s secondary sources. Nigeria’s oil production hit its highest level for 2024 in November with a total of 1.7mb/d (+13.3% m/m) of crude oil and condensate output. In other news, Exxon has unveiled plans to increase spending to $28-$33 billion annually with a goal of lifting oil and gas output by 18% by 2030. Furthermore, Exxon aims to triple its production in the Permian Basin to 2.3mb/d by 2030 and pump 1.3mb/d in Guyana, as per Reuters. Finally, At the time of writing, the Feb/Mar’25 and Feb/Aug’25 Brent futures spreads stand at $0.36/bbl and $1.45/bbl, respectively.

The Feb’25 Brent futures contract saw strength this afternoon, increasing from $71.80/bbl at 12:00 GMT up to a touch above $72.50/bbl at 17:50 GMT (time of writing). In the news today, Equinor stated that the start-up of their Johan Castberg oilfield in the Arctic has been postponed to January or February 2025 due to poor weather conditions. Johan Castberg, located in the Barents Sea, holds estimated recoverable volumes of 450mb to 650mb of crude oil and will be able to produce 220kb/d at its peak, according to Equinor. In other news, China National Petroleum Corporation (CNPC) said that Chinese oil demand could peak at 770 million metric tons as early as 2025 owing to the adoption of EVs and LNG trucks. This time last year, CNPC expected a peak of between 780-800 million metric tons in oil demand coming to China by 2030. Finally, Chevron has completed upgrades to its refinery in Pasadena, Texas, which is expected to increase processing capacity of lighter crudes by nearly 15% to 125kb/d. At the time of writing, the Feb/Mar’25 and Feb/Aug’25 Brent futures spreads stand at $0.32/bbl and $1.30/bbl, respectively.

The Feb’25 Brent futures contract strengthened this afternoon, increasing from $71.90/bbl at 12:00 GMT up to $72.65/bbl shortly after 15:40 GMT, before falling to $72.35/bbl at 17:55 GMT (time of writing). Crude oil prices were supported this afternoon with news of supply disruption in Syria alongside China’s easing monetary policy stance aiding bullish sentiment. In the news today, a tanker carrying Iranian oil to Syria turned around in the Red Sea after the fall of Syrian President Bashar al-Assad. Syria has not exported oil since late 2011, when international sanctions came in force, and is reliant on fuel imports from Iran, according to Reuters. In other news, an explosion and fire at a fuel depot owned by energy major Eni near Florence, Italy, killed at least two people and injured nine. The depot receives, stores, and ships out gasoline, diesel, and jet fuel, connected to a refinery in Livorno via two pipelines also operated by Eni. At present, the explosion and fire have not affected storage tanks, according to Eni. Finally, Israeli Foreign Minister Gideon Saar said that Israel is now more optimistic about a possible hostage deal in Gaza, with indirect negotiations under way about the return of 100 hostages, as per Reuters. Foreign Minister Saar has stipulated “there will not be a ceasefire in Gaza without a hostage deal”. At the time of writing, the Feb/Mar’25 and Feb/Aug’25 Brent futures spreads stand at $0.31/bbl and $1.17/bbl, respectively.

The Feb’25 Brent futures contract fell this afternoon from a high of $71.60/bbl at around 12:30 GMT down to $70.85/bbl at 15:30 GMT as support was seen at the lower Bollinger band and the prompt tose to $71.25/bbl at 17:30 GMT (time of writing). Oil supplies from Russia to the Czech Republic via the Druzhba pipeline restarted today after flows were interrupted earlier this week. “Oil supplies were restored this morning, and oil is flowing again through the Druzhba pipeline to the Czech Republic,” Unipetrol’s chief executive Mariusz Wnuk said in a post of the company on X (Twitter). Analysts at Barclays have said the oil market may be too pessimistic, as they believe tighter supply-demand dynamics could emerge by 2025 and support higher prices, with 2026 expected to be even tighter. Barclays predicts Brent is more likely to stay above $70/bbl than fall below unless there’s a significant drop in Iranian output. The US added 227,000 jobs in November, beating expectations, while unemployment rose to 4.2%. Growth was led by healthcare, hospitality, and manufacturing, though retail lost 28,000 jobs. Revised data showed stronger gains in September and October, supporting expectations for a Fed rate cut. At the time of writing, the Feb/Mar’25 and Feb/Aug’25 Brent futures spreads stand at $0.33/bbl and $1.16/bbl, respectively.

The Feb’25 Brent futures contract fell this afternoon from $72.85/bbl at 11:35 GMT down to $72.05/bbl shortly before 18:00 GMT (time of writing). In the news today, OPEC+ delayed the revival of its oil production by three months to April, originally scheduled to begin in January with a hike of 180kb/d, according to Bloomberg. OPEC+ is expected to unwind the output cuts at a much slower rate than previously planned, though no official timeline has been specified. In other news, rising costs have squeezed intermediaries out of Russian oil trade with India due to high funding costs in Russia and lack of access to Western funds, according to six trading sources cited by Reuters. Meanwhile, Russian oil flows to the Czech Republic via the Druzhba pipeline were seen resuming today after payment issues linked to the transit via Ukraine caused a halt, two sources told Reuters. Finally, Iraq’s oil exports fell slightly in November to 3.296mb/d from 3.327mb/d in October, according to a senior Oil Ministry official. At the time of writing, the Feb/Mar’25 and Feb/Aug’25 Brent futures spreads stand at $0.42/bbl and $1.28/bbl, respectively.

The Feb’25 Brent futures contract saw weakness this afternoon, increasing from around $73.80/bbl at 12:00 GMT to $74.07/bbl at 14:30 GMT, before declining to $73.25/bbl at 17:55 GMT (time of writing). EIA stats released at 15:30 GMT for the week ending 29 Nov showed a 5.07mb draw in US crude oil inventories. In the news today, Spain’s crude oil imports from Venezuela have hit the highest level this year since 2006, thanks to a US license for Spanish energy major Repsol to import Venezuelan crude. In other news, four sources briefed on US intelligence told Reuters that Hezbollah will likely try to rebuild its stockpiles and military forces to pose a long-term threat to the US and its regional allies, with Hezbollah reportedly smuggling materials through Syria. Finally, Pakistan’s Energy Minister Awais Leghari stated that the country requires additional oil refining capacity and is interested in attracting investment from Russia, following a meeting of the Russia-Pakistan intergovernmental commission, reported by Interfax. At the time of writing, the Feb/Mar’25 and Feb/Aug’25 Brent futures spreads stand at $0.39/bbl and $1.46/bbl, respectively.

The Feb’25 Brent futures contract continued to rise this afternoon from $72.62/bbl at 12:00 GMT up to $73.65/bbl at 17:50 GMT (time of writing). In the news today, Russia’s seaborne crude exports have risen ahead of 5 Dec’s OPEC+ ministerial meeting to discuss production policy for 2025. Daily crude flows in the week to 1 Dec jumped by about 570kb/d to 3.36 million with more ships leaving Russia’s Baltic, Black Sea, and Arctic ports, according to vessel-tracking data compiled by Bloomberg. In other news, Israel’s Defence Minister Israel Katz threatened to return to war in Lebanon if its truce with Hezbollah collapses, stating “until now we separated the state of Lebanon from Hezbollah… it will no longer be [like this]”, according to a Reuters report. Finally, maintenance at Kazakhstan’s Tengiz oil field is still ongoing with repairs not completed on schedule, the Kazakh Energy Ministry told Russian news agency Interfax. At the time of writing, the Feb/Mar’25 and Feb/Aug’25 Brent futures spreads stand at $0.39/bbl and $1.46/bbl, respectively.

The Feb’25 Brent futures contract saw weakness this afternoon, falling from $72.66/bbl at 12:00 GMT down to $71.77/bbl at 17:55 GMT (time of writing). In the news today, Iran-backed Iraqi fighters crossed into Syria to help the government fight rebels who seized Aleppo last week, while Lebanon’s Hezbollah has no plans for now to join them, according to a Reuters report. Meanwhile, Hezbollah launched an attack on an Israeli army position in the Mount Dov area, as an “initial warning” amid “continued violation of Lebanese airspace by hostile Israeli aircraft”, The Times of Israel reported. This came as US special envoy Amos Hochstein reportedly sent a message urging Israel to uphold the ceasefire deal, in light of Israeli drone flights over Beirut. In other news, Asia’s crude oil imports from Saudi Arabia rose to 5.83mb/d in November, up from 5.28mb/d in October, as per data compiled by LSEG Oil Research. In addition, Russia’s supplies to Asia dropped to 3.51mb/d in November, the lowest level since January, according to LSEG. Finally, Gazprom’s natural gas flows via the Power of Siberia pipeline to China have reached full capacity of 38 billion cubic meters annually, as per Russian news agency Interfax. At the time of writing, the Feb/Mar’25 and Feb/Aug’25 Brent futures spreads stand at $0.28/bbl and $1.12/bbl, respectively.

The Jan’25 Brent futures contract has weakened this afternoon, falling from $73.05/bbl at 12:00 GMT to $72.45/bbl at 17:50 GMT (time of writing). EIA data for the week to 22 Nov showed a larger-than-expected draw of 1.84mb in US crude oil inventories, compared to a build of 0.5mb the prior week. In the news today, Russian Deputy Foreign Minister Sergei Ryabkov warned the US today to halt a “spiral of escalation” over Ukraine, stating “you mustn’t supply Kyiv with everything they want”, according to Reuters. Meanwhile, Russian state news agency TASS quoted an official saying Moscow was working to put its Sarmat ICBM, part of its strategic nuclear arsenal, on combat duty. In other news, the Kazakh Energy Ministry has proposed widening the current six-month ban on fuel exports to gasoline, jet fuel and bitumen, starting January 2025, according to Interfax. Finally, Prax is continuing to work toward buying Shell’s minority stake in the Schwedt oil refinery in east Germany, as per Bloomberg. The shareholder structure of the Schwedt refinery has been complicated by the involvement of Russia’s Rosneft, whose stake was seized by the German government. At the time of writing, the Jan/Feb’25 and Jan/Jul’25 Brent futures spreads stand at $0.60/bbl and $1.68/bbl, respectively.

The Feb’25 Brent futures contract declined marginally from $72.90/bbl at 12:00 GMT to a touch under $72.75/bbl at 17:50 GMT (time of writing). In the news today, Russian President Putin said Moscow launched more than 90 missiles and 100 drones that hit 17 targets in Ukraine, leaving more than 1 million people without power…

The Jan’25 Brent futures contract has weakened this afternoon, falling from $73.05/bbl at 12:00 GMT to $72.45/bbl at 17:50 GMT (time of writing). EIA data for the week to 22 Nov showed a larger-than-expected draw of 1.84mb in US crude oil inventories, compared to a build of 0.5mb the prior week. In the news today, Russian Deputy Foreign Minister Sergei Ryabkov warned the US today to halt a “spiral of escalation” over Ukraine, stating “you mustn’t supply Kyiv with everything they want”, according to Reuters. Meanwhile, Russian state news agency TASS quoted an official saying Moscow was working to put its Sarmat ICBM, part of its strategic nuclear arsenal, on combat duty. In other news, the Kazakh Energy Ministry has proposed widening the current six-month ban on fuel exports to gasoline, jet fuel and bitumen, starting January 2025, according to Interfax. Finally, Prax is continuing to work toward buying Shell’s minority stake in the Schwedt oil refinery in east Germany, as per Bloomberg. The shareholder structure of the Schwedt refinery has been complicated by the involvement of Russia’s Rosneft, whose stake was seized by the German government. At the time of writing, the Jan/Feb’25 and Jan/Jul’25 Brent futures spreads stand at $0.60/bbl and $1.68/bbl, respectively.