The Sep’25 Brent futures contract rallied to $69.43/bbl at 07:38 BST before softening to $68.91/bbl. Prices then rallied to $69.31/bbl at 11:10 BST (time of writing). In the news, Repsol confirmed its shareholder payout target after reporting a second-quarter adjusted profit of €702 million, beating expectations despite a €175 million impact from an April 28 blackout which affected Spain and Portugal. The company launched a new €350 million share buyback, bringing 2025 total buybacks to €700 million, and reaffirmed plans to distribute 30–35% of operating cashflow to shareholders. In other news, China’s Sinopec Group has signed a contract with Algeria’s state oil firm Sonatrach to explore and develop the Guern El Guessa II (GEG) natural gas block in the Gourara-Timimoun Basin in southwestern Algeria. The block contains proven conventional gas resources and potentially significant shale gas reserves. Sinopec, a pioneer in China’s shale gas development with its Fuling project, won the block in an international tender last month. California officials are urgently seeking a buyer for Valero’s 149 kb/d Benicia refinery, set to close in April 2026, amid growing concerns over fuel security and potential price spikes. The state’s Energy Commission is negotiating with prospective buyers, including HF Sinclair and a European energy firm, to maintain refining capacity. Closure of Benicia, alongside Valero’s Wilmington refinery in 2026, could slash California’s gasoline and diesel output by nearly 17%. Finally, the front-month Sep/Oct spread is at $0.76/bbl and the 6-month Sep/Mar’26 spread is at $2.26/bbl.
