The Sep’25 Brent futures contract initially climbed to $70.75/bbl around 13:20 BST, where it met resistance. Despite fighting to remain above the critical $70/bbl handle at first, prices ultimately sold off and stand at $69.30/bbl at 17:30 BST (time of writing). This level corresponds with the 10-day moving average, which has been a critical short-term resistance level for the M1 Brent futures contract since 15 Jul. In today’s news, the European Union has agreed to the 18th package of sanctions against Russia over its war in Ukraine, and will set a moving price cap on Russian crude at 15% below its average market price. The EU has also banned importing any petroleum products made from Russian crude oil, but the ban will not apply to imports from Norway, Britain, the US, Canada, and Switzerland. Moreover, in the US, single-family homebuilding fell to an 11-month low in June 2025 amid high mortgage rates and increased economic uncertainty. Interestingly, however, the University of Michigan’s Surveys of Consumers showed a rise in US consumer sentiment from 60.7 in June to 61.8 in July 2025, beating a Reuters poll pegging this month’s figure at 61.5. In other news, Chevron has closed its $55 billion acquisition of Hess, enabling them a stake in the Stabroek Block off the coast of Guyana that holds more than 11 billion barrels of oil. At the time of writing, the front-month (Sep/Oct’25) and Sep/Mar’26 Brent futures spreads stand at $0.87/bbl and $2.50/bbl, respectively.
