The October Brent futures flat price rallied into Friday afternoon, climbing by $1 from $78/bbl to the $79/bbl level by 17:00 BST (time of writing). Markets were buoyed by Fed Chair Jerome Powell’s comments, where he stated that “the time has come for policy to adjust”, which was interpreted as a dovish signal. However, the question remains about the amount of the cut (25bps or 50bps), and the upcoming non-farm payrolls report on 7 September may change the calculus. BP has acquired a stake in a Chinese sustainable jet fuel company (Zhejiang Jiaao Enprotech Stock Co.) for 350 million yuan ($49 million). China’s Rongsheng has purchased an Aframax-sized cargo of Canada’s Kearl Lake Blend crude, which is being transported via the TMX pipeline. The crude grade is set to arrive in China for the first time since 2018. Finally, the front (Oct/Nov) and 6-month (Oct/Apr) Brent futures spreads are at $0.85/bbl and $2.84/bbl respectively.
