The Sep’25 Brent futures contract fell off to 67.24/bbl at 15:32 BST. Prices then rallied to $68.35/bbl at 16:56 BST before softening to $68.25/bbl at 17:30 BST (time of writing). In the news, India is considering building three new sites to expand its Strategic Petroleum Reserve (SPR), which currently has a capacity of about 39 mb equivalent to eight days of the country’s oil consumption. The proposed new sites include locations in Mangalore, Bikaner (Rajasthan), and Bina (Madhya Pradesh). The move aims to increase India’s reserves to 90 days’ worth of oil consumption (current reserves are 75 days worth including private) , allowing the country to meet International Energy Agency (IEA) requirements. In other news, Kazakhstan’s energy ministry announced the cancellation of plans to build a gas processing plant at the Karachaganak field, which was initially set to be developed with foreign shareholders. The field, operated by the Karachaganak Petroleum Operating consortium, had previously agreed to build a gas processing plant, set to start operations in 2028. The ministry did not explain the reason behind halting the project, though some industry sources suggested it was linked to ongoing legal disputes with the foreign companies. A group led by Vitol has submitted a bid of over $10B in the final phase of the court-organized auction for shares in PDV Holding, the parent company of Citgo Petroleum. This auction aims to compensate creditors seeking to recover nearly $19B after Venezuela expropriated assets and defaulted on debt. Vitol had previously participated in earlier bidding rounds, but new bidders have emerged with improved offers. Finally, the front-month Sep/Oct and 6-month Sep/Mar’26 spreads are at $1.05/bbl and $2.78/bbl respectively.
