Vincent Wu
The Jun’26 Brent crude futures opened more than $2 higher this morning compared to Friday’s close, trading above $96/bbl by 09:00 BST before falling to lows of $94.04/bbl by 11:11 BST.
Prices continue to trade above Friday’s levels, given escalating tensions in the Iranian conflict over the weekend. President Trump renewed threats of significant infrastructure strikes if Iran does not accept a deal, while Tehran fired at vessels and reimposed controls in the Strait of Hormuz on Saturday, and the US navy seized an Iranian container ship on Sunday. According to ICE COT data, money managers reduced net positions for the second consecutive week in Brent futures in the week ending 14 April. In other news, major Asian airlines, including Cathay Pacific, Singapore Airlines, Korean Air Lines, and Qantas, have reported surging demand on European routes as travellers shun disrupted Middle Eastern hubs. China is curtailing refined fuel exports rather than banning them, but the export cut has been deeper in April than it was in March, according to Vortexa, with exports totalling 320kt in the first two weeks of this month, just a sixth of year-earlier levels. India has expanded the pool of Russian insurers eligible to provide marine cover to ships docking at its ports, increasing the number to 11 from eight, according to its Directorate General of Shipping. A Ukrainian drone attack on Russia's Black Sea port of Tuapse sparked a fire and killed at least one person, Russian officials said on Monday, only hours after a blaze was extinguished following a similar attack on April 16. Finally, the Jun/Jul and Jun/Dec Brent futures spreads are at $4.54/bbl and $13.35/bbl respectively.