Jun Brent futures flat price witnessed another bout of volatility overnight with price action rallying from below $87/bbl at 01:25 BST to $90.55/bbl at 03:45 BST before ultimately easing off to $86.75/bbl come 11:10 BST (time of writing). The significant rally to $90/bbl-handles likely stemmed from reports of explosions over an Iranian city allegedly due to an Israeli attack. However, Iran has referred to the incident as an attack by “infiltrators” rather than by Israel, and has thus reported no plans for retaliation against Israel at present. However, Japanese utilities have flagged “strong concerns” for fuel supply and prices over the rising tensions in the Middle East. In other news, the Biden administration has restricted oil and gas drilling and mining in Alaska, angering state officials who say the limitations will make the US more reliant on foreign oil. Finally, the front-month and six-month Brent spreads are currently at $0.70/bbl and $4.09/bbl, respectively.
