Overnight & Singapore Window: Brent Sees Resistance Above $63/bbl

The Feb’26 Brent futures contract remains highly rangebound. Price action continues to encounter resistance above the $63/bbl threshold, although support is seen at $62.75/bbl. At the time of writing at 10:00 GMT, the contract stands at $62.85/bbl. ExxonMobil plans to wind down its operations at one of its two steam crackers on Singapore’s Jurong Island from March, with the intention of shutting the plant down by June. This comes amid industry losses faced by chemical producers due to overcapacity led by China. Meanwhile, Chevron has reportedly planned its capital expenditure for 2026 to be between $18-19 billion, with approximately $17 billion allocated to upstream operations, and roughly $9 billion set aside for the US. The major has stated that it expects to spend $6 billion on American shale, with plans to produce more than 2mb of oil equivalent per day from the US next year. Also in the US, the Colonial Pipeline requested that the US Federal Energy Regulatory Commission reconsider its decision to block Colonial’s proposal to modify delivery specifications, end overlapping shipments of different grades of gasoline, and discontinue shipments of “Grade 5” gasoline sold in some Northeastern US states during the winter. Colonial states that the changes are necessary to prevent wear and tear of the pipeline system and to improve efficiency, although their plan has met protest from majors and shippers, who argue it would harm their business by shifting blending margins away from them to Colonial. Finally, Turkey has finalised a one-year extension of its two gas import contracts with Russia (total: 22 bcm), but is considering investments in US gas to diversify its energy sources, according to Turkish Energy Minister Alparslan Bayraktar. Finally, at the time of writing, the Feb/Mar’26 and Feb/Aug’26 Brent futures spreads stand at $0.38/bbl and $0.78/bbl, respectively.