The Nov’24 Brent futures contract showed volatility this afternoon but ultimately strengthened from $74.30/bbl at 12:00 BST to $75.67/bbl at 17:15 BST (time of writing), indicating a possible continuation of recent bullish sentiment. In the news today, ING, the largest bank in the Netherlands, has stopped funding upstream oil companies that continue to develop new field licenses. This halt in financing serves as part of the Dutch bank’s 2024 policy to tackle climate change and aid the country’s transition into a low-carbon economy. In other news, Tokio Marine Kiln (TMK) have set up insurance for ports to provide cover against trade disruption such as Houthi attacks in the Red Sea and risk of strikes at US terminals. According to Reuters, the insurance policy offers cover up to a limit of $50 million per incident and states there are no geographical limits as to where the disruption event may take place. Finally, sources told S&P Global that China’s Huaxing Petrochemical refinery is still operational despite bankruptcy, producing a total 140 kb/d. However, the 100 kb/d Zhenghe Petrochemical refinery, also declared bankrupt, now remains offline. At the time of writing, the front month (Nov/Dec’24) and six-month (Nov/May’25) Brent futures spreads are at $0.82/bbl and $2.11/bbl, respectively.
