The Brent futures flat price for the June contract has had a rangebound morning. Price action saw a small surge reaching $86.23/bbl at 09:15 GMT, before coming back down to just below the $86/bbl mark by the time of writing (10:00 GMT). Recent attacks on Russia’s oil refineries by Ukraine have knocked about 900 kb/d of capacity offline, possibly for weeks and even in some cases permanently, according to Goldman Sachs analysts. Russia has also reportedly begun supplying oil directly to North Korea, in direct violation of UN sanctions, according to the Financial Times. Satellite imagery released from a UK think-tank showcases at least five North Korean tankers collecting oil products from Russia’s Far East. These coincide with North Korea’s munitions support to Russia, suggesting an “arms-for-oil bartering arrangement,” according to Hugh Griffiths, a former US sanctions monitor. The front and 6-month Brent futures spreads are at $0.70/bbl and $4.28/bbl, respectively.
