The Jan’26 Brent futures opened slightly lower overnight Tuesday around $63.20/bbl, before ticking lower towards $62.80/bbl where it found support. As of 17:30 SGT (time of writing), prices are trading around $62.87/bbl. In the news, top US Army official Dan Driscoll met directly with a Russian delegation in Abu Dhabi, marking a significant shift into a more active phase of US-brokered peace efforts, as he presents a revised proposal shaped by rapid-fire talks with Ukrainian leaders and aims to bridge remaining gaps in negotiations to end the Russia-Ukraine war. Russia signalled plans to expand oil and LNG exports to China despite US sanctions, with Deputy Prime Minister Alexander Novak telling Beijing counterparts that Moscow sees growing opportunities for both pipeline and seaborne crude supplies as well as deeper cooperation on LNG projects. Venezuela tapped Chevron for scarce naphtha after a US warship disrupted a Russian shipment, adding strain to its already fragile oil operations. China has told its airlines to extend flight cuts to Japan through March 2026 as tensions rise, signalling a prolonged downturn in China-Japan travel and a major hit to Japan’s tourism and airline markets. Indian banks are now open to financing Russian oil purchases as long as cargoes come from non-sanctioned sellers and pass stricter compliance checks, reflecting a cautious shift that could keep discounted Russian crude flowing to India despite new U.S. sanctions. Finally, the front- (Jan/Feb) and 6-month (Jan/Jul) Brent futures spreads are at $0.65 and $1.19/bbl, respectively.
