The Jul’25 Brent futures contract saw a volatile afternoon, trading between $63.91/bbl at 13:02 BST and $63.10/bbl at 17:38 BST (time of writing). In the news, Scotland’s only oil refinery at Grangemouth has permanently stopped processing crude oil after 100 years of operation, following a decision announced in 2024 by owner Petroineos. The site will now function as an import and distribution hub for fuels. The closure, attributed to competition from modern refineries in Asia and the Middle East, has led to 430 job losses, with around 70 staff remaining. India is significantly increasing its imports of US crude oil ahead of key negotiations over American tariffs. Around 11.2mb are expected to arrive in June driven by state refiners like Indian Oil and BPCL. The move is seen as a strategic effort to strengthen ties and potentially reduce US tariffs. Other Asian nations, including Thailand and South Korea, are also boosting US energy purchases to avoid tariffs. In other news, PetroChina reported a 2.3% rise in first-quarter profit to $6.4B, making it the only Chinese state oil giant to post higher earnings amid weaker oil prices. Its crude oil price fell 7.2% year-on-year, while domestic gas prices dipped 3.9%. However, stronger natural gas production and sales drove a 9.7% gain in gas division profits, offsetting declines in refining. Overall revenue fell 7.3% due to lower demand for refined products. Meanwhile, Sinopec and CNOOC both reported profit declines. Finally, the front month Jun/Jul and 6-mont Jun/Dec spreads are at $0.80/bbl and $1.41/bbl respectively.
