The Sep’25 Brent crude futures saw a bearish Friday afternoon, falling from $69.70/bbl to $68.50/bbl where it found some support. This level was also where prices found support on Thusday evening. Nonetheless, prices have been rangebound between $68 and $70/bbl this week as volatility has sharply declined. In the news, Syria’s energy ministry has announced a tender to sell 500kb of heavy oil crude, where bids must be submitted in person by 5 August. US Gulf Coast refiners have increased their buying of Middle Eastern and South American crudes to offset the loss of Venezuelan and Mexican barrels; however, this might be short-lived if the US allows some sanctioned Venezuelan crude to return to the market. Refiner Phillips 66 reported higher-than-expected Q2 earnings on higher refinery margins and lower turnaround expenses. PetroChina has approved a new refinery and petrochemical complex near Dalian, following recent closure of a nearby old plant. The development comprises a 200kb/d crude oil refinery, a 1.4 million mt per year ethylene complex. Finally, the front (Sep/Oct) and 6-month (Sep/Mar) Brent futures spreads are at $0.80/bbl and $2.26/bbl respectively.
