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Brent Rallies To $109/bbl

Brent rallies to weekly high of $109/bbl; no Iran breakthrough from Trump-Xi meeting; UAE to double crude export capacity bypassing SoH
Published: May 15, 2026
Written by:
Vincent Wu

Vincent Wu

Research Associate, Flux
Vincent Wu
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Brent crude futures traded higher on Friday morning from the $106 to $109/bbl level, a weekly high. Prices have been well supported along the 20-day moving average even as the ATR falls to a 2-month low of 6.20, indicating a compression of volatility.

The Trump-Xi summit delivered no diplomatic breakthrough on Iran in relation to the reopening of the Strait of Hormuz, providing bullish sentiment to prices. The UAE will double its capacity to export crude oil bypassing the Strait of Hormuz by next year, as ADNOC accelerates the construction of a pipeline that runs to the port of Fujairah on the Gulf of Oman. Spot premiums for Russia's Far East ESPO Blend crude oil for delivery to China at the end of June and in July have eased due to weak Chinese refining margins and slow demand, four trading sources told Reuters. Nearly half of the crude oil released from the US SPR is being exported, with around 13mb having sailed to Europe and other destinations, according to Kpler. Trafigura and Phillips 66 are the leading recipients the Jones Act waivers, alongside Exxon and Shell. California is the top destination for the waiver voyages. Due to the Iran conflict, Kenya on Thursday hiked its retail fuel prices by as much as 23.5% - ‌after it raised them by 24.2% last month. Finally, the Jul/Aug and Jul/Jan Brent futures spreads are at $4.68/bbl and $20.27/bbl respectively.

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