The Brent futures contract has been held steady above the $77/bbl mark today, trading at $77.07/bbl at 10:00 GMT (time of writing), on the back of market participants trying to price in the geopolitical risk premium. Coupled with weaker economic growth, the markets are on hold. The Eurozone has seen its growth hovering around the 0 handles with notably Germany’s industrial production 15% below pre-pandemic peaks. Such a dull picture leaves market participants in the doldrums.
The API announced a 5.215mbbls draw w-o-w in American inventories after analysts had predicted a 1.2mbbls draw. Gasoline and distillates stocks were announced on the rise again, by 4.896mbbls and 6.873mbbls w-o-w respectively.
TotalEnergies has signed an agreement to acquire additional stake in one of the offshore Namibian discoveries. The Venus discovery will yield a light oil as well as gas.
Given high market volatility and the need for a lower deficit, the Indian Finance Ministry said the country was planning on not topping up crude oil reserves anymore. The Indian government has instead asked Strategic Petroleum Reserves to rent out storage to refiners and oil majors in an effort to secure low prices.
The front and 6-month Brent futures spreads are at $0.32/bbl and $1.58/bbl respectively.
