The Oct’25 Brent Futures contract saw a volatile afternoon trading between $67.71/bbl and $68.14/bbl. Prices fell to 67.56/bbl at 17:40 BST (time of writing). The sudden drop in price comes as Russia considers air truce. In the news, US President Trump announced plans to sharply raise tariffs on Indian imports beyond the current 25% within 24 hours, citing India’s continued purchases of Russian oil. The dispute follows Trump’s 31 July tariff announcement. Despite Western pressure, India has maintained close energy ties with Moscow, importing around 1.75 mb/d of Russian oil in the first half of 2025. In more trade related news, Trump announced that the US is now closer to a deal with China to extend the trade truce. In other news, Trinidad and Tobago will award ExxonMobil exploration rights to the Ultra Deep 1 area, a group of seven offshore blocks in waters 2,000–3,000 meters deep. Exxon will conduct seismic studies and drilling in a three-phase program, with royalties and profit-sharing if oil or gas is found. The move is part of Trinidad’s push to boost offshore investment and support its LNG and petrochemical sectors amid declining gas output. Diamondback Energy said it aims to remain the leading consolidator in the Permian Basin following its $26 Bn merger with Endeavor Energy, even as shale activity slows and the company prioritizes shareholder returns. Despite falling Brent crude prices hitting Q2 profits, Diamondback plans to cut debt and shares outstanding in 2025 and could increase buybacks if market conditions weaken. Finally, the front-month Oct/Nov and 6-month Oct/Apr spreads are at $0.65/bbl and $1.81/bbl respectively.
