The Feb’26 Brent futures contract traded in the $62/bbl handle this afternoon, from $62.39/bbl at 13:30 GMT to $62.80/bbl at 16:20 GMT. Prices have since settled to $62.64/bbl at 17:00 GMT (time of writing). In the news, Russian President Vladimir Putin has stated that the US-proposed draft plan for a Russia-Ukraine ceasefire could serve as the basis for future agreements. However, he elaborated by saying that the draft still requires further modifications. Putin has also described Ukrainian leadership as illegitimate and thus not in a position to sign peace deals and reiterated his demand for international recognition of Russian gains in Ukraine, which is a strict red line for Ukraine. In other news, Reuters has reported that OPEC+ is unlikely to alter oil output levels at its meetings this weekend and is seeking to agree on a mechanism to evaluate members’ maximum production capacity. Reuters sources claim that OPEC+ is expected to maintain a pause in hikes in Q1’26. In Kurdistan, UAE-based firm Dana Gas has reported that operations have been halted at the Khor Mor gas field after a rocket attack hit a liquid storage tank, which resulted in a fire. The attack is the most serious since drone strikes at its oilfields in mid-July. The attack has reportedly not affected Kurdistan’s oil production or exports. Meanwhile, the discount of Russia’s Urals oil blend compared to Brent crude increased by six percentage points this month, reaching 23%, according to the Russian central bank. The central bank’s deputy governor, Alexei Zabotkin, said that they assume the widening discount as a “temporary phenomenon.” The discount reflects growing pressure on Russian oil revenues following Western sanctions. Finally, at time of writing, the front-month Feb/Mar’26 and 6-month Feb/Aug’26 spreads are at $0.37/bbl and $0.62/bbl, respectively.
