The Oct’24 Brent futures contract softened from over $77.00/bbl at 07.30 BST to around $76.25/bbl until 11.50, when it corrected to $76.65/bbl at 12:00 BST (time of writing). Saudi Aramco reported a 3.4% decline in second-quarter profit, attributed to lower crude volumes and weaker refining margins. Aramco’s CEO noted significant growth in China and stated that the fundamentals do not support a decrease in oil prices. He also said the market is overreacting to US recession risk. Concerns are mounting that Iran may retaliate against Israel and the US after the assassination of a Hamas leader in Tehran and an Israeli attack that killed a Hezbollah commander in Lebanon, potentially leading to a broader regional war. Secretary of State Antony Blinken called it a “critical moment” for the region. The Biden administration announced a $2.2Bn investment to revamp the power grid against extreme weather threats. According to the Department of Energy, this overhaul aims to add nearly 13 gigawatts of capacity, support more data centres, boost manufacturing, and improve renewable power transmission. At the time of writing, the Oct/Nov and Oct/Apr’25 Brent futures spreads stood at $0.32/bbl and $1.79/bbl, respectively.
