Brent Firms as Saudi Aramco Offers More Loadings

In the news, Saudi Aramco is now offering more September loadings from outside the Strait of Hormuz, after selling at least 4mb to China this month, according to Reuters sources. Shipping data shows that the company has turned to shuttling cargoes on tankers moving through the strait with disabled trackers. Elsewhere, at least three Indian refiners plan to avoid vessels on Iran's new blacklist, including for ship-to-ship transfers, over security concerns. Tehran has warned it will act against any vessel transferring cargo with them. Named vessels face fines, detention, and cargo confiscation, according to a post on X from the Persian Gulf Strait Authority, a new body Iran set up to manage the strait. In Japan, the nation has unveiled a plan to bolster energy supply resilience, including support for pipeline projects that bypass the Strait of Hormuz. The plan was outlined at a Green Transformation (GX) Implementation Council meeting, with legislative details due by year-end. Tokyo will back Middle East pipeline projects that route around the strait via financing from JOGMEC. Measures include cooperation with Middle Eastern oil-producing countries on pipeline projects bypassing the Strait of Hormuz, through financial contribution via the Japan Organisation for Metals and Energy Security, and a plan to build naphtha reserves. In other news, Brazil's government will extend its gasoline subsidy until 09 Sep. The subsidy, paid to gasoline producers and importers, was set to expire today (26 Aug). Lula's administration last extended it on July 26 for 30 days. This time, the government couldn't extend the benefit for another full month, since the presidential decree enabling the subsidy expires 09 Sep and congressional approval is still pending. Finally, as of the time of writing, the Nov/Dec’26 and Nov/May’27 Brent futures spreads are at $1.95/bbl and $7.82/bbl, respectively.

This afternoon in Dated we saw strong buying following the window with Sep DFL trading back up to $1.70/bbl and Sep Oct DFL up to -$0.25/bbl. Pre-window we saw a seller of 14-18 Sep vs Cal Oct at $1.55/bbl and 28-2 Sep vs Dec ICE Brent futures. In the physical window we saw a trade lift the only Midland offer, whilst a producer offered a forties cargo, leaving the implied phys diff pretty unchanged. In the paper window we saw buying of 7-11 Sep CFD from trades and majors up to $1.69/bbl. Post window 1-4 Sep vs Cal Sep traded up to $0.08/bbl, as well as Sep/Nov DFL buying.

This afternoon in Brent/Dubai there was more refiner hedging of Oct Brent/Duabi. However this was well offered into by tradehouse. There was also lots of selling by Chinese of Oct Brent/Dubai and Dec ICE Brent Future vs Oct Dubai. The Sep Brent/Dubai traded down from its highs of $3.40/bbl to $2.58/bbl. During this the Sep/Oct spread rallied aggressively, up from $3.80/bbl to $4.35/bbl. All boxes sold back off, someone selling aggressively on screen and Dubai spreads well bid on screen.

In VLSFO, Sep/Oct Sing 0.5 traded at similar levels to this morning, trading between $32.00/mt and $32.75/mt. Sep Sing crack was rangebound trading between $18.85/bbl and $19.00/bbl. Euro 0.5 came off slightly this afternoon with Sep/Oct trading down from $22.00/mt to $21.00/mt while the Sep crack was offered down from $7.00/bbl this morning to $6.70/bbl at afternoon close.

In HSFO, Sep/Oct 380 strengthened to $35.50/mt in the early afternoon, and then sold off to $35.00/mt where it settled and consistently traded at for the afternoon, Oct/Nov 380 sold off quite aggressively and bottomed out at $17.50/mt, it then encountered real buying back up to $18.25/mt. Sep 380 Crack was stable this afternoon trading between -$0.60/bbl and -$0.75/bbl.
Barge spreads were decently stronger this afternoon, Sep/Oct was bid up from $10.25/mt this morning to $12.00/mt at window close and Oct/Nov gained 75c to $11.25/mt. Sep Barge crack was rangebound trading at -$10.10/bbl.

This afternoon in distillates, Sing gasoil spreads were scale back offered, with Oct/Nov trading from $4.45/bbl up to $5/bbl. Front E/W saw strong selling in Nov, trading down to -$73.25/mt. Regrade rolls were better bid in Sep/Nov, while Sep/Oct kero traded up to $1.80/bbl.

Prompt ICE gasoil spreads rallied throughout the afternoon, with Sep/Dec trading from $120/mt up to $136/mt, while cracks moved higher to $72.30/mt in Oct futures. European jet diffs strengthened in the front, with Sep up to $52/mt, while Q4 traded at $90/mt.

This afternoon in gasoline, mixed interest in MOC slightly better bid, seeing European producers sellside with the Sep 92 crack trading $39.80/bbl end of window. RBBRs stronger across the afternoon but arbs weaker with EBOB finding support, seeing buying in Sep/Oct EBOB up to $119.50/mt with the Sep arb trading at -7.9c/gal end of window. E/W weaker after this morning’s strength with some sell side interest in Sep 92 cracks, seeing Sep E/W trading down to -$19/bbl.

This afternoon in naphtha, MOC was better bid but limited interest through the window. NWE naphtha came off from the afternoon highs, with Sep cracks moving from -$3.85/bbl this morning to -$3.20/bbl before ending weaker around -$4.05/bbl, while Oct was bid at -$4.10/bbl and Q1'27 traded around -$6.25/bbl. Spreads were mixed but softer in the front, with Sep/Oct moving from $17/mt this morning to highs of $20.50/mt before settling around $18.75/mt post-window, while spreads further down saw support on higher crude. E/W gave back part of the morning rally, with Sep down to $53/mt before recovering to around $54/mt post-window, while Q1'27 was around $36.50/mt. MOPJ was illiquid on cracks, with Oct around $1.25/bbl post-window, and Cal 28’ trading at $18/mt, while spreads stayed relatively supported, with Sep/Oct around $25/mt post-window and Oct/Nov moving from $22.50/mt to $24.75/mt value.

This afternoon in NGLs, FEI spreads firmed at the morning levels, and found some strength heading into the window. Sep/Oct FEI was trading at $34/mt, and Oct/Nov was bid up to $24.50/mt, compared to the morning’s opening level of $22.50/mt. Interest both sides on LST/FEI across the afternoon, with Oct trading down to -$328/mt, and the Q4 arb was getting bought at -$303/mt, $3 stronger than the close of yesterday. Scale back importer buying of the Sep C3 ENT/FEI arb at -$376/mt to -$378/mt, with it closing the afternoon at -$380/mt. LST spreads slightly better bid today. Sep/Oct traded up from -0.125c/gal to 0c/gal, and Feb/Mar 27 was getting lifted at 1.5c/gal. There was also some buying of Q2/4'27 LST at -1.375c/gal, up from last night’s closing level of -1.5c/gal. Another quiet afternoon for Butane, but there was some buying of Sep/Oct C4 ENT at -0.625c/gal, and Sep C4/C3 LST was sold at 35c/gal, before strengthening to close the window at 35.5c/gal.