Jun Brent flat price weakened further into the afternoon, moving from $89.85/bbl around noon to $88.80/bbl come 15:15 BST. However, the contract found support at these lows and rallied to $89.20/bbl at 17:10 BST (time of writing). Uncertainty regarding developments in the conflict between Iran and Israel has likely kept the market from forming a robust directional view of prices. Israeli Minister of Defence Yoav Gallant reportedly said to the US Pentagon that they had “no choice” but to respond to Iran’s attack whilst Israel’s Western allies have called for the country to avoid any further regional escalation. However, Citi has raised its short-term oil forecast by $8 to $88/bbl on the back of higher risk premia. In other news, state-run CNOOC is reportedly stockpiling shipments of Russia’s ESPO blend crude at a newly launched reserve base. Finally, the front-month and six-month Brent spreads are currently at $0.80/bbl and $4.50/bbl, respectively.
