The Aug’25 Brent futures contract initially fell to $67.33/bbl before rallying up to $68.74/bbl at 17:31 BST (time of writing). In the news, Shell has entered early-stage discussions to acquire rival BP, according to a Wall Street Journal report citing sources familiar with the matter. The talks are said to be active, with BP carefully weighing Shell’s approach. No deal terms have been disclosed, and there is no certainty that the negotiations will result in a merger. In other news, Saudi Arabia’s oil export revenues dropped 21.2% yy/y in April to $16.5 B due to falling oil prices amid oversupply concerns and weaker global growth. Prices dipped about 15% that month following OPEC+’s surprise plan to ramp up production and a fresh wave of US tariffs. Oil exports made up 68.6% of total exports in April, down from 77.5% a year earlier. While total exports fell 10.9%, non-oil exports rose 24.6%, data from Saudi Arabia’s General Authority for Statistics showed. Israel’s Leviathan and Karish gas fields have resumed operations after nearly two weeks offline due to the conflict with Iran, restoring a key energy supply to Egypt and Jordan. The shutdown, left only the older Tamar field running for domestic use. Leviathan partners NewMed and Ratio Energies estimate the halt cost $12 million in lost revenue and said they may seek state compensation. Israel’s Energy Ministry confirmed the restart after a security review, saying exports and tax revenues would rise and electricity and industry operations would benefit. Finally, the front-month Aug/Sep and 6-month Aug/Feb’26 spreads are at $1.00/bbl and $3.46/bbl respectively.
