This morning, the October Brent Futures contract has seen a steep decline from highs of $79.70/bbl at 07:55 BST down to $78.35/bbl at the time of writing (11:30 BST). In headlines, an oil depot in the Russia’s southern Rostov region was set ablaze in a Ukrainian drone strike, a retaliatory response to the Russian assault on Ukrainian energy infrastructure this Monday. According to Reuters, Russian officials have not disclosed the full extent of the damage caused by the Ukrainian attack. In other news, Exxon is looking to sell non-core oil assets in the Permian basin with an estimated worth of $1 billion. In response to Bloomberg, Exxon said that they are “exploring market interest” for “select conventional assets in West Texas and South East New Mexico”. Furthermore, German oil product sales have fallen by 9.3% overall y/y with heating oil taking the largest decrease of -33% down to 0.76m tons. This data is the latest indicator of Germany’s poor economic growth, with German GDP stagnating over the past 6 years. Finally, the front (Oct/Nov) and 6-month (Oct/Apr) Brent future spreads are at $0.87/bbl and $3.01/bbl respectively.
