The Mar’25 Brent futures flat price saw a volatile and choppier performance amid thinner liquidity on Tuesday, rising to $73/bbl by 11:20 GMT before selling off by 60c within 15 mins, and is printing $72.74/bbl at 13:15 GMT (time of writing). With trading volumes quieter during the holiday period, price action is expected to fluctuate around current levels in the short term, with traders in a tentative and wait-and-see mode ahead of the new year. In the news, Russian President Vladimir Putin has lifted a 2022 ban on transactions involving Rosneft shares, paving the way for potential sales, including stakes in German refineries, amid ongoing sanctions challenges and interest from Middle Eastern investors. Indian state refiners may turn to Middle Eastern spot crude to offset an 8-10mb shortfall in Russian oil for January, driven by rising Russian domestic demand and OPEC commitments, potentially raising costs due to less favourable economics. Indian Oil Corporation will invest 610 billion rupees ($7 billion) in a naphtha cracker project in Paradip, Odisha, with an initial agreement expected to be signed in January, complementing its existing 300kb/d refinery in the region. Finally, the front (Feb/Mar) and 6-month (Feb/Aug) Brent futures spreads are at $0.40/bbl and $1.92/bbl respectively.
