Vincent Wu
Research Associate, Flux
Brent Falls to $92/bbl
Brent trades around $92/bbl; front Jul/Aug Brent futures fall below $1 on expiry day; US imposes new vessel sanctions
Published: May 29, 2026
Written by:
Vincent Wu
4 page report
Following a bearish close on Thursday, the Aug’26 Brent crude futures contract traded around the $92/bbl level on Friday morning, at 13:30 SGT (06:30 BST) (time of writing).
Prices are trading firmly in the low $90s and are on track for a weekly decline on renewed diplomatic optimism in US-Iran negotiations, however great uncertainty remains with both sides publicly disputing key details. Going into expiry day, there is bearish sentiment in the front Jul/Aug’26 Brent futures spread, which traded below $1/bbl, and the front Jul/Aug/Sep’26 fly is nearly at -$1/bbl. In the news, the US said on Thursday it has imposed new sanctions on Iran’s military oil trade, sanctioning eight vessels involved in transporting Iranian oil to global markets. The US extended by one month to June 27 a licence allowing companies to hold talks with Lukoil on buying its foreign assets. This is the sixth extension since the Treasury imposed sanctions last October. Southwest Air expects higher fares to remain in place even after oil prices fall, as consumer resilience remains strong and the industry behaves rationally, CEO Bob Jordan said at a Bernstein conference on Thursday. Brazil’s Petrobras’ negotiation with SBM Offshore for two floating oil and gas production vessels for its Sergipe deepwater project is done, an executive from the company said on Thursday. The producer is also increasing domestic gasoline prices for distributors after the government approved new subsidies to shield consumers from Iran war-fuelled crude price hikes, raising gasoline prices for those resellers to 2.61 reais (52c) per litre on Friday. Canadian pipeline operator South Bow needs proof that a US presidential permit is “durable” before proceeding with a partial revival of the Keystone XO oil pipeline, its CEO said on Thursday. Finally, the Aug/Sep’26 and Aug/Feb’27 Brent futures spreads are at $1.89/bbl and $9.25/bbl respectively.
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