Brent Eases While Bessent Urges US Gasoline Retailers to Cut Pump Prices

Ahead of expiry, the Jul'26 Brent futures contract is at $73.05/bbl. In the news, no North Sea Brent crude cargoes are currently scheduled to load in August, marking the first time this has happened since at least 2007, according to Reuters and LSEG data. The absence of planned loadings reflects the continued decline in Brent production, although delayed cargoes from July could still roll into August. Elsewhere, India's Russian crude imports climbed to a record 2.7mb/d in June, as refiners increased purchases to offset supply disruptions caused by the Strait of Hormuz closure. This compares with roughly 2–2.1mb/d in May, according to Kpler and LSEG. Russian crude accounted for more than half of India's total oil imports in June, up from 36.5% in May. In the US, Treasury Secretary Scott Bessent has urged gasoline retailers to cut pump prices ahead of the country's 250th anniversary celebrations, reinforcing President Trump's push for lower fuel costs. Speaking to Fox News, Bessent said, "I would encourage all the gasoline retailers... to be good actors, especially in the 250th anniversary, because we're watching." In other news, some Asian refiners have started offering Middle Eastern crude cargoes to the US West Coast as supplies rise with the partial reopening of the Strait of Hormuz. With Asian buyers already well-covered for the next two months from non-Middle Eastern sources, spot demand for Gulf crude has eased, prompting re-exports to markets such as California and Hawaii. Finally, at the time of writing, the Sep/Oct and Sep/Mar Brent futures spreads are at $0.04/bbl and $1.40/bbl, respectively.

This afternoon in Brent/Dubai we sold back off in the July Brent/Dubai, trading down from $5/bbl to $4.65/bbl. There was large Chinese buying of Jul/Aug Dubai spread up from -$0.80/bbl to -$0.73/bbl. There was producer selling of July and Aug Brent/Dubai around $4.75/bbl and $3.85/bbl. There was major buying of Sep Brent/Dubai around 3/bbl, products selling of Sep and Oct Brent/Dubai. The boxes all traded lower with no real interest OTC. There was some more Q4 Brent/Dubai selling, which traded rangebound between $2.25/bbl to $2.35/bbl.

VLSFO relaxed into the afternoon. There was a brief moment where Chinese arbers were buying Aug Sing flat price, however, this was short-lived and resulted in little price action. The Sing crack remained between $16.90/bbl and $17.00/bbl for the majority of the day. Sing spreads relaxed a touch with buying not as keen as we saw this morning, consequently Jul/Aug Sing traded down to $22.25/mt from $23.50/mt. There was a similar story on Euro 0.5 where the Euro crack closed the afternoon at $9.25/bbl from $9.40/bbl earlier this afternoon. Euro spreads also traded lower, Jul/Aug Euro down to $25.50/mt from $27.50/mt.

In HSFO, Chinese arbers were buyside on 380 flat price mostly buying in Aug and Sep which added support to cracks trading around -$7.10/bbl equivalent on Aug 380 cracks where we saw the flow fade, leading into a weak barges window driven by MOC selling. The front crack traded down to -$9.70/bbl despite jul/Aug'26 trading up to flat by end of window.

This afternoon in distillates, Sing gasoil spreads saw some selling on higher ICE gasoil, with July/Oct trading up to $8.30/bbl, while front E/W sold off aggressively, with July moving from -$50/mt down to -$52.50/mt. Kero spreads were offered in the front, with $1.80/bbl trading in decent size, while regrade saw buying in August at -$0.95/bbl.

Prompt ICE gasoil spreads rallied into the end of the window before weakening, with Sep/Dec trading from $75/mt up to $80.25/mt, then back to $76.50/mt last, while September cracks rallied to $45/bbl. European jet diffs firmed in the front, with July up to $64/mt, while deferred strengthened to $80/mt in Q1. Both heating oil spreads and HOGOs dumped, July HOGO swap trading from 32.1c/gal down to 29.5c/gal.

This afternoon in gasoline, EBOB flat price traded end window at $901/mt with MOC better bid. RBBRs strengthened, pushing July arbs up from 31.90c/gal to 33.10c/gal. EBOB cracks were a touch better offered in Sep and Q3, but July firmed from $34.35/bbl to $34.60/bbl. Spreads were mixed, as Jul/Aug strengthened from $39.50/mt to $40/mt. E/W was stable around $12.85/bbl in July, with front 92 cracks trading at $21.55/bbl during the window.

European MOC better bid with NWE naphtha cracks continuing to trail higher this afternoon, seeing July naphtha crack trade up to -$1/bbl end of window, with the Cal'27 naphtha crack trading -$7.90/bbl this afternoon. E/W continues the sell-off from this morning, with the July/Aug E/W box getting hit down to -$11/mt with July E/W trading $16.50/mt end of window, down from last night's trading level of $25.50/mt. Some buyside interest in Q4/Q1 E/W box, trading up from $4.25/mt to $4.50/mt with Cal E/W valued at $21/mt.

This afternoon in NGLs, FEI spreads traded again in the prompt, seeing Jul/Aug at $18/mt, and Aug/Sep getting hit at $7/mt, up from the morning’s trading level of $5/mt. LST/FEI selling in Q4'26 at -$181/mt, where it eventually settled post-window, and there was also buying in Aug at -$191/mt, before it softened slightly into close to settle at -$193/mt. In Q4 there was also some FEI/MOPJ selling at -$58/mt, before it strengthened into close to -$55/mt. LST spreads slightly weaker in the front today, with Jul/Aug trading down from 0.125c/gal to -0.125c/gal. Had some ENT/LST interest in Jul and Aug at -1.875c/gal and -2c/gal, respectively, with mixed buying and selling. In butane, spreads were relatively firm with Jul/Aug at -0.25c/gal, and Oct/Nov lifted at flat.