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Brent Hits $108.50/bbl

Stalling peace talks boost sentiment; US Treasury sanctions Hengli; Russian ULSD cargos diverted mid-voyage from Brazil
Published: April 27, 2026
Written by:
Vincent Wu

Vincent Wu

Research Associate, Flux
Vincent Wu
4 page report
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This morning the Jun’26 Brent futures traded higher from the $104 level, reaching highs of $108.50/bbl where prices formed a double top (minute candlesticks) before falling below $108 by 11:00 BST.

Stalling peace talks between the US and Iran, and the continued closure of the Strait of Hormuz, have added bullish sentiment to prices. According to Axios, Iran has reportedly given the US a new proposal, including putting off nuclear negotiations to reopen the Strait of Hormuz, including a lifting of the US blockade. The US Treasury has sanctioned Hengli Petrochemical, one of China’s largest private refiners with a nameplate crude refining capacity of 400kb/d. The sanctions are interpreted as an escalation and a bargaining chip deployed by Washington ahead of Trump’s visit to Beijing in May. Chevron’s CEO Mike Wirth said changes to Venezuela’s oil policy are a sign of progress in trying to attract foreign investment, but noted that Venezuela’s diminished oil workforce makes any large-scale industry recovery dependent on whether expatriates return. Two tankers carrying Russian ULSD were diverged mid-voyage from Brazil to alternative destinations, according to LSEG. BP has emerged as the top-performing major oil stock during the Iran war, with shares up around 20% on strong trading profits and limited disruptions, while Exxon has lagged due to stranded Middle East output, highlighting how European majors with larger trading arms are outperforming US peers and enabling BP to deleverage under its new CEO. Finally, the Jun/Jul and Jun/Dec Brent futures spreads are at $6.18/bbl and $21.04/bbl respectively.

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