Flux Markets | Brent Reaches $107.50/bbl Skip to main content

Brent Reaches $107.50/bbl

Brent trades up by $3; Chinese independent refiners cut run rates further; Trump gas tax holiday estimated to cost $3.5 bn
Published: May 12, 2026
Written by:
Mita Chaturvedi

Mita Chaturvedi

Research Associate, Flux
Mita Chaturvedi
4 page report
Share

This morning the Jul’26 Brent futures gradually traded higher from the $104.50/bbl level, rising by $3 following the London open up to $107.50/bbl before retracing towards $107.15/bbl by 18:00 SGT (11:00 BST)...

Prices have gradually traded higher as hopes for a deal to end the Iran faded amid stark differences between Tehran and Washington, while President Trump remarked that the ceasefire with Iran was “on life support”. In the news, Reuters reported that some of China’s independent refiners are cutting fuel output on crumbling margins, with the average operating rate slipping to roughly 50% from about 55% in April and is expected to fall further. According to the source, there is an estimated loss of 500 to 600 yuan ($74-88) for each metric ton of crude processed. The US SPR awarded 53.3mb to companies including Trafigura, Marathon, and Exxon, where the oil will be released between June and August. A federal gasoline tax holiday (18.4c/gal gasoline, 24.4c/gal diesel) proposed by President Trump would result in a $3.5 billion a month loss in tax revenue, according to independent budget analysts. Meanwhile, research from Brown University indicated that American consumers are facing a $37 billion hit from the spike in gasoline and diesel prices since the war with Iran started, the increase in costs amount to more than $284 per household. Mexico’s Pemex said late on Monday that a fire in a cooling tower inside its Salina Cruz refinery in Oaxaca had been fully extinguished. Finally, the Jul/Aug and Jul/Jan Brent futures spreads are at $4.18/bbl and $18.43/bbl respectively.

Related News

Naphtha finds its footing

Global naphtha markets rebound despite a softer start to the week, despite selling in the East...
17 page report

Brent Climbs to $104.07/bbl

Brent rebounds; Aramco warns Hormuz risks could cut 100mb weekly; LNG crossings resume; Trump eyes gas tax pause
4 page report

Relentless RBOB

RBOB futures drive gasoline strength, EBOB cracks at highest levels since 2022; market risk focused in Jun'26 EBOB crack
14 page report

Brent gaps up overnight

Oil's initial jump stemmed from US President Donald Trump calling Iran's response to a US peace proposal "totally unacceptable" in a post...
4 page report