The September Brent futures flat price witnessed an impressive rally early this morning. The contract moved sharply up from $87.15/bbl minutes before 08:00 BST to $87.60/MMBtu at 08:40 BST. However, the benchmark crude futures contract subsequently weakened and stands at $87.30/bbl as of 11:25 BST (time of writing). India’s state-run Indian Oil Corp. Ltd., Hindustan Petroleum Corp. Ltd. And Bharat Petroleum Corp. Ltd. are reportedly planning long-term crude oil deals with Brazil’s Petroleo Brasileiro SA (Petrobras) amid India’s attempt to diversify its energy supplies. In the UK, the Labour Party has won the general election by a landslide, winning a 170-seat majority, allowing Keir Starmer to take over from Rishi Sunak as the country’s Prime Minister. Japanese household spending fell unexpectedly by 1.8% y/y in May (against an expected 0.1% rise) alongside a Reuters poll showing a rise in the corporate goods price index (CGPI) by 2.9% y/y in June (prev: 2.4% y/y). Finally, at the time of writing, the front-month and six-month Brent futures spreads stood at $0.90/bbl and $4/bbl, respectively.
