Nov’24 Brent Futures flat price weakened this morning from $73.13/bbl at 07:00 BST to $72.50/bbl at 11:30 BST (time of writing). After last week’s upward trend, prices are relatively steady amid US output concerns, countering bearish sentiment caused by lagging Chinese demand. In the news today, Fed funds futures show markets are now pricing in a 69% chance that the US Federal Reserve will cut rates by 50 basis points, as per data by Reuters. A lower interest rate could potentially lift oil demand by supporting economic growth. In other news, the UK government is intensifying its crackdown on the oil trading empire of Hossein Shamkhani, the son of an advisor to Ayatollah Khamenei, Supreme Leader of Iran. The UK is continuing to scrutinise the business practices of London-based Nest Wise Trading, owned by Shamkhani, and has warned Shamkhani’s company with immediate dissolution due to its role in trading both Iranian and Russian crude. This comes as part of a broader crackdown in the UK and US on entities believed to be evading oil-trading restrictions. Finally, US Secretary of State Antony Blinken is headed to Egypt today to prepare a proposal to present to Israel and Hamas for a cease-fire deal and release of hostages. Blinken, however, has no public plans to meet with Israeli Prime Minister Benjamin Netanyahu on the trip. The visit comes amid Israel threatening to escalate conflict against Hezbollah. At the time of writing, the front month (Nov/Dec’24) and six-month (Nov/May’25) Brent futures spreads are at $0.57/bbl and $1.41/bbl, respectively.
