Brent Firms As Jizan Refinery Hit

In the news, Saudi Aramco's 400kb/d Jizan refinery was hit in a new attack, threatening a key Red Sea refining hub just as Saudi Arabia shifts more oil westward to avoid the Strait of Hormuz. Financial Times sources reported that the strike on the southwestern Saudi facility was comparable in scale to an attack last month that briefly disrupted operations. Aramco has yet to comment, and no group has been confirmed responsible. Elsewhere, Iran will raise gasoline prices for users exceeding 110 litres per month starting 08 Sep, as it works to address strains from the war and crippling US sanctions, a government spokesperson has said. The first two quotas, covering the initial 110 litres, stay unchanged, but the third quota rises to 100K rials/litre (about 4 US cents at the free-market rate), as per state media. The hike had been discussed and postponed earlier over fears it could spark protests like those seen in 2019. Iranian government spokesperson Fatemeh Mohajerani said that the increase, tied to "current conditions," only hits consumers above 110 litres; others can still buy up to 60 litres at 15K rials/litre and another 50 at 30K rials/litre. In other news, TotalEnergies is cutting its stake in Papua LNG and handing operatorship to ExxonMobil. TotalEnergies, which co-owns the project with Exxon, Santos, Kumul Petroleum/MRDC, and ENEOS Xplora, will sell a 9.1% stake to its partners pro-rata while retaining 20% of the undisclosed price; Santos separately bought an additional 3.3% for $189M, lifting its stake to 21% and its equity LNG output by ~19% to roughly 1.2Mmt/y. The deal hinges on a final investment decision, expected Q4 2026, which TotalEnergies says is now clear of contractual and commercial hurdles. Finally, as of the time of writing, the front-month Nov/Dec’26 and the 6-month Nov/May’26 Brent futures spreads are at $4.05/bbl and $15.39/bbl, respectively.

Strong afternoon in Dated. The physical was well bid, moving up approx $2/bbl, as US players bid across grades. 21-25 Sep CFD saw buyside interest pre-window around $6.55/bbl, rallying to $8.20/bbl by window end, with a French major and trade house buying. 14-18 Sep 1-week also saw better buying, trading from $0.60/bbl to $0.70/bbl, moving up towards $1.00/bbl implied off legs in the window. Oct'26 DFL further strengthened on the back of strong futures and prompt buying, finding highs of $5.61/bbl at window end.

This afternoon we were very quiet in Brent/Dubai but continued to slide lower. The Oct'26 Brent/Dubai traded down from $1.90/bbl to $1.50/bbl. Some trade selling of Nov'26 and Dec'26 Brent/Dubai, the Q2'27 Brent/Dubai still offered by product sellers at $3.05/bbl. The Dubai spreads traded higher, Oct/Nov'26 Dubai spread up from $4.80/bbl to $5.00/bbl, but again on very few flows. The boxes all traded lower, a trade seller of Dec/Mar'27 box at $0.44/bbl.

It was a quiet afternoon in fuel, with Sing 0.5 was better bid with Oct/Nov'26 trading up from $36.50/mt to $38.00/mt and the Oct'26 crack traded up to $19.55/bbl from $19.00/bbl. Euro 0.5 spreads were also better bid although liquidity was thin, Oct/Nov'26 traded up a dollar to $17.75/mt. Oct'26 Euro crack sold down from $4.60/bbl to $4.20/bbl, and the 0.5 E/W was implied 2 dollars higher to $97.25/mt.

In HSFO, 380 was also thin this afternoon, Oct/Nov'26 traded between $15.25/mt and $15.75/mt while the Oct'26 crack was offered on screen selling down from -$6.20/bbl to $6.60/bbl and $380.00/bbl E/W traded down from $32.50/mt to $31.50/mt. Barge complex saw very limited liquidity, Oct/Nov'26 last traded at $12.75/mt in the early afternoon while the Oct'26 crack was range-bound this afternoon trading between -$11.50/bbl and -$11.40/bbl.

This afternoon in distillates, Sing gasoil spreads saw buying in Nov/Jan'27, trading up to $11.50/bbl into end window. Front E/W weakened to -$93.00/mt, while Q2'27 E/W sold off on crack selling, offered at -$48.00/bbl last. Oct'26 regrade was hit lower on screen, trading from -$2.04/bbl down to -$2.40/bbl with Oct/Nov'26 kero hit at $3.95/bbl.

Prompt ICE gasoil spreads rallied throughout the afternoon, with Sep/Dec'26 trading from $206.00/mt up to $225.00/mt, while Nov'26 cracks rallied to $78.00/bbl. European jet diffs were quiet, with Oct'26 lifted up to $78.00/mt on screen.

It was a thin aftrernoon on gasoline due to the US holiday, with RBBRs trading at $29.60/bbl end window. EBOB was stronger, with cracks trading up from $31.60/bbl to $32.25/bbl in Oct, and Cal’s were bid at $20.20/bbl. Front spreads were thin, but Nov/Mar was trading at $97/mt. E/W was stable at -$7.75/bbl and Nov/Dec was stronger at $7.80/bbl.

This afternoon in naphtha remained very illiquid, with MOC better offered and notable NWE flat-price selling into the end of the window. NWE naphtha cracks were bid until the window, with Oct up from around -$3.85/bbl to -$3.25/bbl before selling back down to around -$3.90/bbl, while Q1 returned to the morning levels of -$4.90/bbl from earlier -$4.70/bbl. Spreads were illiquid but firmer where they traded, with Dec/Jan up to $18.75/mt, Bal/Oct moving from $18/mt to $19/mt, and smalls Nov/Dec trading at $28.25/mt. E/W strengthened through the afternoon, with Oct moving from around $56.50/mt this morning to $58.50/mt, the Oct/Nov box firming from $2/mt to $2.50/mt, and Q1 moving up from $43.50/mt to $44.25/mt. MOPJ cracks were supported through the day by E/W buying and 92/MOPJ selling, though liquidity remained thin; spreads followed the illiquid tone, with Dec/Mar at $71.50/mt, but little else trading.

This afternoon was quiet in NGLs with it being a US holiday. The arb came off trading down to -$375.00/mt from -$370.00/mt this morning. FEI traded higher on a crude basis with Oct'26 trading $808.00/mt and Oct/Dec'26 trading $67.00/mt. CP also had buying trading at $642.00/mt in Oct'26, with Oct/Dec'26 CP trading at $24.00/mt.