
European Window: Brent Rallies $65.01/bbl
The Jul’25 Brent futures contract initially dropped from $64.58/bbl down to $63.41/bbl at 13:10 BST. Prices then rallied all afternoon to $65.01/bbl but slightly came off to $64.72 at 17:15 BST (time of writing). In the news, US President Donald Trump proposed a 50% tariff on EU imports starting June 1. EU and US trade officials are set to discuss the issue later today. The proposed tariffs triggered sharp declines in European stocks and bond yields, with economists warning of a serious escalation in trade tensions. The EU is considering countermeasures but prefers a negotiated solution. In other news, Suriname is aiming to expand its offshore oil exploration with increased interest from majors like Shell, TotalEnergies, and Petronas. TotalEnergies is leading the $10.5B GranMorgu project, expected to produce first oil in 2028 from reserves of over 750mb. The project includes a 220kb/d FPSO and is forecast to boost Suriname’s GDP by 55% in 2028, according to the IMF. Iraq’s federal government said Friday that recent energy deals signed between US companies and the Kurdistan Regional Government (KRG) violate the constitution and must be approved by Baghdad. This comes after the KRG formalized two major agreements with HKN Energy and WesternZagros, targeting development of the Topkhana block, estimated to hold 5 trillion cubic feet of gas and 900mb of oil. Iraq’s Oil Ministry emphasized it has no issue with US firms operating in Iraq, but only through official federal channels, not directly with the KRG. Finally the front-month Jul/Aug and 6-month Jul/Jan’26 Brent spreads are at $0.59/bbl and $1.63/bbl respectively