The October Brent futures flat price has strengthened significantly this morning, rising from $78.90/bbl at 04:00 BST to $79.70/bbl by 07:55 BST, before retracing down slightly then rallying again to $80.10/bbl by 10:20 BST. It sits at $80/bbl as of 11:05 BST (time of writing). Israel’s Defense Minister Yoav Gallant has said, “we don’t want war, but we are preparing for all possibilities”, following the IDF’s successful .Beirut airstrike and the death of Hamas’s political leader in Tehran yesterday. Russia’s First Deputy Energy Minister Sorokin has stated Russia is now processing 4% more crude than a year ago. Air New Zealand’s decision to drop its 2030 emissions target suggests more airlines will also have to drop their own targets given the current lack of requisite sustainable fuel or new, more efficient aircraft. Global supply of sustainable aviation fuel will be just 0.5% of total fuel requirements this year according to the IATA. In other aviation news, Singapore Airlines’ Q2 profit slid 38.4% y/y to S$452 million ($337 million), with non-fuel costs up 7.7%, outpacing revenue growth. At the time of writing, the front (Oct/Nov) and 6-month (Oct/Apr) spreads are $0.58/bbl and $2.42/bbl, respectively.
