The prompt Brent futures contract has seen a mixed morning, initially trading sideways around $87.25/bbl before surging upwards to peak at $88.19/bbl at 08:30 BST and subsequently correcting back down to $87.07/bbl at 10:00 BST. Iran is ramping up its oil exports to levels unseen in the past six years, providing a significant $35 billion annual boost to its economy. This surge comes as Western nations impose fresh sanctions following Iran’s attack on Israel. Tehran has been selling an average of 1.56 mbpd during the first quarter of the year, with the majority destined for China, marking its highest export level since Q3 2018, according to data from Vortexa. In a separate development, the CEO of Saudi Aramco has lauded China’s efforts in aiding the West’s pursuit of net zero targets, this comes as the world’s largest oil producer strengthens its commercial ties with Beijing. Aramco recently detailed new agreements with China’s major petrochemical producers, aimed at securing committed buyers for its crude in the future. One notable aspect of these agreements is Aramco’s intention to acquire a 10% stake in Hengli Petrochemical, a prominent Chinese chemical producer with a $15 billion refining project, known for its production of plastics. The front and 6-month Brent futures spreads are at $0.92/bbl and $4.50/bbl, respectively.
