Brent declines as Oman says ships may pay fees to transit Strait of Hormuz

In the news, Oman has reportedly told European officials that the Strait of Hormuz is unlikely to return to its pre-war operating model, with transiting vessels potentially facing new service-related fees. While Omani officials stressed that they would continue to comply with international maritime law, they indicated charges could be introduced for services such as navigation assistance or pollution control. Elsewhere in the region, Saudi Aramco has resumed crude loadings at its Ras Tanura export terminal after nearly a four-month suspension, as the world's largest oil exporter moved to restart shipments amid growing expectations of a return to normal Gulf trade. The restart comes despite a Taiwanese Evergreen Marine vessel being struck by an unidentified object in the Strait of Hormuz on Thursday. In other news, several intermediaries, along with the National Iranian Oil Company (NIOC), have offered discounted Iranian crude to Indian refiners following Washington's 60-day sanctions waiver. According to Reuters sources, NIOC is marketing its crude at a $3 to 4/bbl discount to comparable regional grades on a delivered basis, as Tehran looks to accelerate exports amid the temporary easing of sanctions. In other news, Kazakhstan has reduced gas production at the Karachaganak oil and gas condensate field after a Ukrainian drone strike disrupted operations at Russia's Orenburg gas processing plant, Energy Minister Erlan Akkenzhenov said. Raw gas from Karachaganak is typically processed at the Orenburg facility, which Ukraine said it struck on 24 Jun. Finally, at the time of writing, the Aug/Sep and Aug/Feb Brent futures spreads are at -$0.55 and $0.57/bbl, respectively.

This afternoon in Dated we continued to see selling with Jul DFL trading down to lows of -$1.04/bbl in the window. We saw a seller of 29-3 Jul vs Cal Jul at -$0.42/bbl, 3-7 Jul DBL at -$1.21/bbl and 13-17 Jul 3w at -$0.26/bbl, however buying of 20-24 Jul vs Cal Aug -$0.12/bbl. We also saw good size buying of 10-14 Aug DBL at -$0.35/bbl. In the physical window we saw a major offering Brent and another offering Ekofisk, leaving the implied physical diff unchanged. In the paper window we saw majors and trades selling CFDs with 13-17 CFD trading down to -$1.15/bbl and 20-24 CFD down to -$0.85/bbl.

This afternoon was very quiet in Brent/Dubai as we traded rangebound. There was continued buying of the Sep Brent futures vs Aug Dubai cross month, but once this was taken out OTC was more sellside. We traded between $6.10/bbl to $6.40/bbl in Jul Brent/Dubai. The Dubai spreads traded in a tight range between -$1.20/bbl to -$1.10/bbl. Boxes were quiet, smalls selling of Jul vs Q4 box. There was also large buying of Q4 Brent/Dubai between $2.50/bbl to $2.60/bbl.

There was exciting action further down the curve to end the week on VLSFO. Q4 Euro cracks were well bid by a European trade house with Sing trades houses on the bid side of Q4 0.5 E/W. This lent support for front 0.5 E/W which traded a fair bit higher this afternoon. Sing spreads continued to be bid, particularly in the Aug/Dec region. The Jul Sing crack caught a bid as a result closing the week at $15.40/bbl from $14.70/bbl. Jul/Aug Sing was up a touch to $20.25/mt, however that wasn’t the most supported part of the curve. Euro 0.5 was very illiquid in the afternoon, the Euro crack went a bit better offered in the window down to $7.75/bbl, while Jul/Aug Euro closed the week $20.50/mt.

In HSFO Chinese arbers were small size buyers on cracks in Sep and Nov adding support to the front E/W which is left implied at $19.25/mt followed by a weak barge window where we saw good size selling in front cracks down to -$9.80/bbl. Jul/Aug'26 barges traded down to -$1.50/mt, otherwise a quiet afternoon.

This afternoon in distillates, Sing gasoil spread interest was mixed with selling on the Jul/Aug box down to -$7.25/bbl. E/W continued to firm with ICE gasoil selling off, then seeing gappy flows on Aug and Q4, trading up and down 0.50c every few mins. Regrade was bid firming to -$1.15/bbl in Jul, while kero spreads remained offered in the Jul/Sep region.

Prompt ICE gasoil spreads sold off into the afternoon, down from $23/mt to $18.75/mt. Aug cracks were volatile but also sold off, dropping 75c to $44.85/mt. European jet diffs saw continued weakness, reaching down to $53/mt in Jul. Heating oil spreads traded rangebound while the M1 HOGO swap firmed to 33c/gal.

This afternoon in NGLs, FEI spreads were stronger than the morning, seeing Jul/Aug trade up to $14/mt, having traded at $11/mt earlier in the day. Aug/Sep was also up, getting lifted at $2.50/mt before strengthening to $4/mt. LST/FEI continued to trade in the prompt in Jul and Aug at -$185/mt and -$173/mt, respectively. In the deferred the Q1 LST/FEI was getting sold at -$157.50/mt. Also had FEI/MOPJ selling in Q1 and Q4, trading at -$57/mt and -$60/mt, both strengthening by $2 into the close. LST spreads today were sell side with Q3'26/Q1'27 hit at -0.5c/gal, and Jul/Dec at -1.5c/gal, where it eventually settled post window. In butane, saw some Cal C4/C3 LST buying at 13c/gal, and Q4 at 18.25c/gal. Butane spreads relatively balanced in the front, with Jul/Aug trading at -0.125c/gal, before settling at -0.25c/gal, and Aug/Oct strengthening to -0.625c/gal having traded at -0.75c/gal.