The Jul’25 Brent futures contract saw a rangebound morning, initially trading between $64.81/bbl and $65.18/bbl. Prices then fell to $64.45/bbl at 11:31 BST (time of writing). In the news, Guyana has passed a new oil pollution bill that makes companies liable for oil spill damages, including those from vessels. The move comes as Guyana’s Exxon-led consortium ramps up offshore oil production, expected to exceed 900kb/d this year. The law aims to strengthen oversight of the rapidly growing energy sector. Brazil’s Finance Minister Fernando Haddad said oil exploration near the mouth of the Amazon River should proceed, but warned it must not delay the country’s shift to clean energy. The region is seen as Brazil’s most promising for new oil discoveries, yet drilling is controversial due to its location in the Amazon basin. In other news, Venezuela’s PDVSA has resumed exporting Boscan heavy crude after cancelling US-bound cargoes due to payment issues. This follows the US Treasury’s March revocation of a key Chevron license amid political tensions. PDVSA redirected a 920kb cargo to Malaysia marking the first such shipment since Chevron’s exports ceased. According to Reuters, China’s oil balance lengthened to an estimated 1.89 mb/d in April as strong imports outpaced falling refinery output. While not all surplus oil may have gone into official storage, the large excess gives refiners flexibility. With ample reserves, they can pause imports if prices rise or sanctions bite, maintaining supply without pushing up global prices. Finally the front month Jul/Aug spread is at $0.59/bbl and the 6-month Jul/Jan’26 spread is at $1.55/bbl.
