The Jul’25 Brent futures contract initially saw a volatile afternoon with prices jumping between $64.14/bbl and $64.79/bbl. Later in the afternoon prices slowly rallied up to $64.73/bbl at 17:45 BST (time of writing). In the news, Ukrainian President Volodymyr Zelenskyy is sending a team led by Defense Minister Rustem Umerov to peace talks with Russia in Istanbul. He will not attend personally after Vladimir Putin declined to go. US President Donald Trump claimed no real progress will occur until he meets Putin directly. In other news, Russia’s oil and gas revenues are set to fall by one-third in May y/y to $6.48B, the lowest since July 2023. Year-to-date, revenues are down 14%. The government has cut its 2025 oil and gas revenue forecast by 24% while increasing spending, adding pressure to its budget amid rising military costs. In Brazil, the oil workers’ federation (FUP) has announced a two-day warning strike at Petrobras from May 29–30 over stalled labour talks. The protest follows CEO comments on cost-cutting, despite the company’s Q1 profit of $6.25B. Workers oppose planned austerity and changes to the variable compensation plan. Interra Resources said a legal review found it had not violated US or EU sanctions in Myanmar, countering allegations from Justice for Myanmar that it aided the military regime. Interra holds a 60% stake in Goldpetrol, which operates two oil fields under a contract with state-owned MOGE. The company expects minimal financial risk from any potential sanctions issues. Finally the front-month Jul/Aug spread is at $0.48/bbl and the 6-month Jul/Jan’26 is at $1.16/bbl.
