The Nov’25 Brent Futures contract rallied all morning to $66.89/bbl at 10:38 BST before softening a touch to $66.76/bbl at 11:15 BST (time of writing). In the news, Japan will lower its price cap on Russian crude oil from $60/bbl to $47.60/bbl starting 12 September, aligning with the EU’s recent move to tighten sanctions over Russia’s war in Ukraine. While the cap is symbolic of international pressure, it won’t affect Japan’s oil imports, as purchases from the Sakhalin-2 project will continue. Russia supplied just 0.1% of Japan’s crude imports this year, though Sakhalin LNG remains crucial to Japan’s energy security. In other news, the truce between NUPENG and Dangote Refinery has broken down, risking a nationwide fuel crisis. NUPENG accuses Dangote of violating a signed agreement allowing tanker drivers to unionize, claiming drivers were intimidated and union symbols removed. Dangote denies the claims, insisting union membership is voluntary and its CNG truck initiative creates over 60,000 quality jobs. The government has not yet intervened, despite mediating the original deal. NUPENG warns it may resume strikes from 15 September, threatening fuel distribution. US President Trump has called on G7 nations to impose steep tariffs on China and India for continuing energy trade with Russia, arguing it would accelerate an end to the Ukraine war, according to the Financial Times. G7 finance ministers are expected to discuss the proposal in a video call today. Trump reportedly urged the EU to impose 100% tariffs on both countries, stating the US would increase pressure on Russia if Europe did the same. Finaly, the front-month Nov/Dec and the 6-month Nov/May spreads are at $0.37/bbl and $1.04/bbl respectively.
