The Oct’25 Brent Futures contract initially rallied to $68.79/bbl at 08:23 BST before falling to $68.02/bbl at 11:00 BST (time of writing). In the news, Saudi Aramco reported a 22% drop in Q2 profit to $22.7 Bn amid falling crude prices and rising debt, prompting cost cuts and potential asset sales to raise capital. Aramco’s realized crude price averaged $66.7/bbl, down from $85.70/bbl a year ago, putting pressure on Saudi finances, which require oil above $90.00/bbl to balance the 2025 budget. The kingdom is now expected to run a budget deficit of around 5% of GDP, more than double prior forecasts. In other news, Russia’s seaborne diesel and gasoil exports declined 5% in July to 3.26 mmt due to refinery maintenance and higher domestic demand, LSEG data shows. Shipments via Primorsk fell 11.3% from June to 1.26 mt. Turkey and Brazil remained top buyers, though exports to Turkey dropped 14% to 1.25 mt and to Brazil fell 29% to 0.37 mt. Deliveries to African nations, including Morocco, Senegal, Ghana, and Libya, decreased by about 25% to 0.69 mt. Over 400 kt of diesel are also undergoing ship-to-ship transfers near Cyprus, with final destinations yet unconfirmed. Saudi Arabian oil drilling firm ADES International Holding has agreed to acquire Oslo-listed Shelf Drilling for 3.9 Bn Norwegian crowns ($379 million) in cash. The deal values Shelf Drilling at 14 crowns per share and has been recommended by Shelf’s board. The combined company will operate 83 offshore jack-up drilling rigs, strengthening ADES’s position in shallow-water offshore drilling. Finally, the front-month Oct/Nov spread is at $0.66/bbl and the 6-month Oct/Apr spread is at $1.86/bbl.
