The Feb’26 Brent futures contract initially dipped this afternoon, from $62.26/bbl at 14:00 GMT to $61.77/bbl at 16:00 GMT. Prices met some support here, rising to $62.13/bbl at 17:00 GMT (time of writing). In the news, overnight Ukrainian drone attacks have sparked a fire at an industrial facility in Russia’s Stavropol region. While Governor Vladimir Valdimirov did not specify which facility, speculations have noted that Lukoil’s Stavrolen petrochemical complex is in the area. The Stavropol region also contains gas pipeline infrastructure and fuel storage facilities that are part of Russia’s broader energy and chemical systems. Related, in a late-Monday attack, Russia has struck Ukraine’s Black Sea port of Odesa. Governor Oleh Kipler offered no further details of the attack, though fires were reported at the port and surrounding energy infrastructure in the Odesa region. Elsewhere, the electricity ministry has stated that Iraq’s gas supply from Iran has been interrupted, citing the shutdown of certain generating units and load shedding at others. The ministry reported that 4-4.5 megawatts of power have been lost from the electrical system due to the halt in Iranian gas supplies. In other news, Reuters reports that discounts for Russian ESPO crude loaded in January have increased to a record $7/bbl to $8/bbl compared to ICE Brent at Chinese ports. Higher discounts have reignited buying interest, especially in China’s independent refiners. Finally, at the time of writing, the front-month Feb/Mar and 6-month Feb/Aug spreads are at $0.49/bbl and $1.02/bbl, respectively.
