The Aug’25 Brent Futures contract initially rallied to $69.26/bbl at 14:08 BST but quickly fell off to $67.78/bbl. Prices have since fallen further to $66.93/bbl at 17:50 BST (time of writing). The drop in price comes after US President Trump stated that China could now resume buying Iranian oil. Further fuelling today’s bearish sentiment was the announcement of a ceasefire between Israel and Iran. President Trump later accused both sides of violating it, noting Israeli strikes and Iranian retaliation. Explosions were reported in Tehran despite Trump’s claim he had urged Israel to hold back. Barclays noted that without a broader regional escalation, supply disruptions remain unlikely. In other news, US oil and gas producer Coterra Energy will keep its rig count steady at nine in the Permian Basin, CEO Tom Jorden said Tuesday. Speaking at the J.P. Morgan Energy, Power & Renewables Conference, Jorden noted the company had considered reducing to seven rigs in the second half of 2025, fearing a price collapse. EU diplomats expect to reach a deal this week on a new round of sanctions against Russia, though Slovakia and Hungary are pushing for concessions on Russian energy. The proposed 18th sanctions package includes measures targeting Russia’s energy revenues, banks, and shadow tanker fleet, aiming to pressure Moscow into a Ukraine ceasefire. Slovakia, citing economic impact, wants exemptions for landlocked countries, capped transit fees, and guarantees against shortages. Finally, the front/month Aug/Sep and the 6-month Aug/ Feb’26 spreads are at $0.75/bbl and $2.08/bbl respectively.
