The Sep’25 Brent futures contract fell to $68.21/bbl at 10:14 BST. Prices have since slightly recovered to $68.59/bbl at 11:30 BST (time of writing). In the news, several oilfields in Iraq’s semi-autonomous Kurdistan region have halted production after three consecutive days of drone attacks caused significant infrastructure damage. While no group has claimed responsibility, Iraqi Kurdistan security sources suspect Iran-backed militias. Gulf Keystone Petroleum shut its Shaikan field as a precaution despite no direct damage, while Norwegian firm DNO suspended output at Tawke and Peshkabir following explosions. Kurdistan’s government condemned the attacks as terrorism aimed at damaging economic infrastructure and endangering energy workers. In other news, Reuters reported that China accelerated its crude oil stockpiling in June, with surplus crude reaching 1.42 mb/d the fourth consecutive month above 1 mb/d. Imports hit 12.14 mb/d, the highest in nearly two years, while domestic production was 4.43 mb/d. Refinery throughput rose to 15.15 mb/d, its highest since September 2023. The surge in imports in the second quarter coincided with falling oil prices when the cargoes were purchased, continuing China’s strategy of buying more when prices are low and slowing imports when prices rise. Iran has seized a foreign tanker in the Gulf of Oman for allegedly smuggling 2m litres of fuel, according to Hormozgan province’s chief justice. The report did not specify the tanker’s name or flag. Iran, with some of the world’s cheapest fuel due to subsidies and currency devaluation, faces persistent fuel smuggling to neighbouring countries and Gulf states. Finally, the front-month Sep/Oct and 6-month Sep/Mar’26 spreads are at $0.89/bbl and $2.35/bbl respectively.
