Brent Firms as Zawiya Oil Depot Partially Closes

In the news, a fire at Zawiya oil complex has caused the collapse of a gasoline storage tank holding around 4.5ML. While the refinery itself was not damaged, the incident forced a partial shutdown at the Zawiya oil depot, temporarily disrupting fuel supplies to several stations across western Libya. Supplies have since resumed, with a Brega spokesperson saying the broader domestic market remains stable due to available gasoline stocks at the Tripoli depot and additional imports. The NOC has warned that a full halt to operations at the Zawiya refinery remains possible if further attacks occur. Elsewhere, Russia’s Sibur Zapsibneftekhim petrochemical complex in Tobolsk, western Siberia, was damaged in a drone attack, as per Reuters sources. The facility, Russia’s largest LPG plant, has been shut indefinitely while the extent of the damage is assessed. Regional authorities confirmed a fire at an industrial site following the attack but did not identify the facility. 11 Aug saw no LPG volumes for delivery from the Tobolsk loading point were offered on SPIMEX, compared with regular sales of around 4kt/d of technical propane-butane mix earlier this year. In other news, Phillips 66, Kinder Morgan and HF Sinclair have agreed to proceed with the proposed $5B Western Gateway Pipeline system. The 1,300-mile refined products pipeline is designed to transport around 230kb/d from St. Louis and Gulf Coast supply points west into Arizona and California, with completion targeted for 2029. The project is aimed at strengthening supply to the relatively isolated West Coast market ahead of planned refinery closures in California, reducing its exposure to supply disruptions and price spikes. As part of the project, Phillips 66’s Gold Pipeline from Borger, Texas to St. Louis will be reversed to support east-to-west flows, alongside the reversal of Kinder Morgan’s existing Colton-Phoenix pipeline. Finally, as of the time of writing, the front-month (Oct/Nov) and 6-month (Oct/Apr’27) Brent futures spreads are at$2.25/bbl and $9.51/bbl, respectively.

This afternoon in Dated we continued to see 17-21 Aug 1-week get pushed lower with the 1-week getting hit down to $0.35/bbl pre window. In the physical window we saw 2 Midland cargos trade with a trade buying 2 Midland cargos from majors. We also saw a British major offering a Brent cargo down aggressively, pushing down the implied physical diff. In the paper window we saw 24-28 Aug'26 CFD trade at $2.25/bbl in good size with trades on the buy side and majors and market makers selling. 1-4 Sep'26 CFD also traded $3.70/bbl with majors on both sides. Post window we saw selling of $14.00/bbl-20 Aug/Cal Sep'26 low at $2.49/bbl whilst 24-28 Aug'26 1-week was sold at $0.60/bbl and $14.00/bbl-18 Sep'26 1w sold at $0.65/bbl (before some paper buying came in on the 14-18 1-week). We also saw a buyer of $17.00/bbl-21 Aug'26 2-week which got hit at $1.00/bbl and a buyer of Sep'26 rolls into Oct'26, buying 21-25 Sep/Cal Oct'26 at $1.85/bbl and bidding 7-11 Sep/Cal Oct'26.

This afternoon, VLSFO drifted off this afternoon, screen got offered down on Sing cracks and they traded down around 50c to $18.05/bbl, Sep/Oct'26 Sing traded down a dollar from the early afternoon to $33.25/mt. Sep'26 Euro cracks saw selling from the US, which caused them to trade down to $6.85/bbl while Sep/Oct'26 Euro was range-bound trading around $23.50/mt. 0.5 E/W was implied lower at $71.75/mt.

To start the afternoon Chinese arbers were aggresive selling 380 flat price, this saw the 380 crack sell down from -$3.90/bbl to -$5.00/bbl, as a result 380 spreads and $380.00/bbl E/W came off with the Sep'26 crack and Sep/Oct'26 selling down to $24.00/bbl and $39.25/mt, respectively. Barge MOC was well offered in the window, this resulted in the Sep'26 crack trading down to -$11.25/bbl and Sep/Oct'26 to $10.50/mt.

This afternoon in distillates, Sing gasoil spreads saw buying on lower ICE gasoil in Nov/Dec'26, while Oct/Nov'26 remained well offered, trading from $6.65/bbl down to $6.15/bbl. E/W was range-bound in the front, with Sep'26 trading at -$71.50/mt, while Q4'26 and Q1'27 saw selling, with Q1'27 trading down to -$58.00/mt. Sep'26 regrade continued bid, getting sold into by MMs against kero spread selling, with Sep'26 regrade trading down to -$1.15/bbl.

Prompt ICE gasoil spreads sold off throughout the afternoon, with Sep/Dec'26 trading from $175.00/mt down to $165.00/mt last, while cracks also weakened, with the Oct'26 future trading down to $68.60/bbl. European jet diffs remained range-bound, with Sep'26 at $74.00/mt, while Q1'27 traded at $102.00/mt. Heating oil spreads weakened, while HOGOs firmed slightly, with the Sep'26 HOGO swap up to 27.60c/gal.

This afternoon in gasoline, interest in EBOB MOC mixed with real buyers and sellers. EBOB weaker this afternoon with Sep crack trading down from $31.70/bbl to $30.20/bbl and bouncing back slightly. E/W boxes pricing higher – seeing buying in Sep E/W up to -$12.70/bbl with Q4 getting hit at -$4/bbl, offered on. Deferred arbs better offered again this afternoon, with selling in Cal'27 arb down to $26.40/bbl with selling in Q4 arb between $20.75/bbl to lows of $20.50/bbl.

This afternoon in naphtha was weaker overall, extending the soft tone from the morning. NWE naphtha MOC was better offered, and Sep'26 cracks slipped from around -$4.30/bbl pre-window to finish closer to -$4.65/bbl. Spreads came off morning levels, with Sep/Oct'26 around $24.75/mt and Oct/Nov'26 around $24.50/mt post-window. E/W also came off through the afternoon, with Sep'26 down to $36.75/mt, and Q4'26 getting hit at $35.50/mt. MOPJ remained thin, with limited crack colour, though there was real outright sell-side interest in the front, with Sep/Oct'26 and Oct/Nov'26 offered around $25.50/mt and $25.00/mt, respectively.

This afternoon in NGLs, Sep/Oct'26 FEI traded up to $27.00/mt before softening to $26.50/mt end window. Balmo Aug/Sep'26 was trading at $42.00/mt and Oct/Nov'26 was getting lifted at $15.00/mt. Bank was on the sellside of the fullmo Aug/Sep'26 LST/FEI roll at -$46.50/mt for good size. Sep'26 LST/FEI traded up to -$316.00/mt, where it eventually settled post window, and Q4'26 was getting sold at -$272.00/mt. LST/NWE buying continued into the afternoon, trading at -$144.00/mt, before settling -$142.50/mt end window, and the Q4'26 pronap was lifted at -$166.00/mt. Deferred FEI/MOPJs had good buy side interest again today, with Q4'26 trading at -$69.00/mt, and Q1'26 traded down from -$70.00/mt to -$73.00/mt. LST spread buying down the curve, with Oct/Dec'26 trading at -1.75c/gal, and Q2/3 27 was lifted at 0.25c/gal. Cal'27 LST flat price was lifted at 69.50c/gal, and the Cal 27/Cal28 roll was trading at 3.875c/gal. In butane, Sep/Oct'26 C4 ENT traded up from -0.875c/gal to -0.75c/gal, and C4/C3 LST was trading in Sep'26 at 30.625c/gal before strengthening to trade at 31.125c/gal at the close.