The Nov’25 Brent Futures contract rallied to $68.14/bbl at 09:53 BST before dropping to $67.35/bbl at 11:04 BST. Prices recovered slightly to $67.67 at 11:20 BST (time of writing). In the news, the Federal Reserve reduced rates by 25 basis points and signalled more cuts to come, aiming to counter slowing job growth. In other news, Poland has called on EU countries still buying Russian oil and gas to fully phase out those imports by the end of 2026. Energy Minister Milosz Motyka said doing so would demonstrate unity and reduce strategic risks, especially after recent Russian drone incursions into Polish territory. While most EU nations have already cut ties with Russian energy, Slovakia and Hungary continue purchases via the Druzhba pipeline, citing cost concerns and limited alternatives. Slovakia’s economy minister said the country needs better access to alternative routes to avoid harming its industry. Freight rates for Very Large Crude Carriers have surged to their highest levels since November 2022, driven by tight tanker availability and rising crude exports from the Middle East and Atlantic Basin to Asia. The Middle East-China route hit W108 on the Worldscale index, equivalent to over $6.6 million, marking a nearly 150% increase since the start of 2025. Shipowners are enjoying strong returns as Middle East exports are set to surpass 18mb/d in September, while arbitrage flows from the US, Brazil, and West Africa to Asia tighten vessel availability. Finally, the front-month Nov/Dec and the 6-month Nov/May spreads are at $0.50/bbl and $1.48/bbl respectively.
