The Nov’25 Brent Futures contract initially traded rangebound between $67.17/bbl and $66.77/bbl before jumping up to $67.45/bbl at 16:09 BST. Prices continued rallying to $67.69/bbl at17:30 BST (time of writing). In the news, the EIA reported that US oil inventories climbed sharply: crude stocks rose by 3.9 mb, gasoline by 1.5 mb, and distillates by 4.7 mb. In other news, the EU is unlikely to follow US President Trump’s push to impose major tariffs on India and China over their Russian oil imports, despite recent discussions in Washington. EU sources say the bloc prefers sanctions over tariffs, which require lengthy legal investigations. Brussels is also finalising a trade deal with India, making such measures politically risky. The EU is expected to continue targeting specific entities in upcoming sanctions, with the next package potentially arriving Friday. The White House is reviewing an EPA proposal that would require large oil refineries to cover about half of the 1.1 Bn gallons of biofuel blending obligations waived for small refineries. This partial reallocation aims to stabilise the renewable fuel credit (RINs) market and ease compliance costs for refiners. However, it’s likely to frustrate biofuel producers and farm-state lawmakers, who want 100% reallocation. Russia has increased its September crude oil export plan from western ports to 2.1 mb/d due to reduced domestic refinery demand following a wave of drone attacks. Exports from Primorsk, Ust-Luga, and Novorossiisk will rise from 1.9 mb/d initially planned and from 2.0 mb/d in August. The rise in Urals crude shipments aims to satisfy continued strong demand from India, which despite a dip in August, remains a key buyer of Russian oil. Finally, the front-month Nov/Dec and the 6-month Nov/May spreads are at $0.34/bbl and $1.14/bbl respectively.
