The July Brent Futures flat price has had a weak morning, ticking down consistently since its high of $82.80/bbl at 05:00 BST. Significantly, the morning saw the contract drop into $81/bbl handles, and reach a low of $81.80/bbl at 10:30 BST, from which it has since partially retraced upwards to $82.35/bbl at 11:20 BST (time of writing). The US has paused the sending of a shipment of 2,000lb bombs to Israel amidst the Middle Eastern country’s current battle in and around the southern Gazan city of Rafah. This occurs at the same time Israel has reopened the key Kerem Shalom border crossing for aid deliveries four days after it was closed due to Hamas rocket fire. BP has softened its tone on 2030 oil output cuts to reassure investors, who have been concerned recently about the company’s pledges to reduce oil and gas output by around 25% between 2019 and 2030. Notably, BP is the only major oil company to have reduction targets. Fujairah oil product stocks have fallen by 2.5% to 20.3mbbls in the week to May 06 following a surge in exports, leaving middle distillate stocks at a six-week low but also light distillates at a three-week high. Norway’s oil workers have agreed a wage deal that will raise their annual pay by 44,000 Norwegian crowns, averting a potential strike that could have matched a strike in 2020 which reduced the country’s production by 330kbbls/d (8% of the country’s overall production). The front and 6-month spreads are $0.46/bbl and $2.98/bbl, respectively.
