Brent Regains as QatarEnergy Extends Force Majeure

In the news, QatarEnergy has extended its force majeure on LNG deliveries by several weeks, as LNG flows through the Strait of Hormuz remain blocked even as oil volumes tick up. The company notified buyers in Pakistan and Bangladesh this week that cargo cancellations will continue through October, as per Bloomberg. Some long-term deliveries to Europe have also been cancelled beyond September, with Italy's Edison saying the force majeure now extends into early November. In Germany, gas operators are actively filling storage facilities, the government has said today (28 Aug), citing improved price dynamics and softer Asian LNG competition. Storage sites were 51.64% full, per an economy ministry spokesperson, who noted operators had injected significant volumes in recent days. According to the spokesperson, Germany is targeting 70% storage capacity by early November. In other news, Energean is in exclusive talks to buy some of BP's upstream oil and gas assets in Egypt, according to Reuters sources. The deal, which could raise about $1bn for BP, covers stakes in the producing offshore West Nile Delta assets and BP's 50% contractor interest in the Temsah concession in the eastern Mediterranean. BP has invested more than $35 billion in Egypt over six decades, but its natural gas production has fallen about 40% from 2024 and nearly 60% from 2023. Finally, as of the time of writing, the Nov/Dec and Nov/May’27 Brent futures contracts are at $2.17/bbl and $9.17/bbl, respectively.

This afternoon in dated we saw the front of the curve come off with 1-4 Sep'26 2w trading down to -$0.38/bbl and $7.00/bbl-11 Sep/Cal Sep'26 sold at $0.18/bbl in good size. Sep/Oct'26 DFL also traded down to -$0.37/bbl. In the physical window we didn’t see any cargo bids or offers. In the paper window we saw 7-11 Sep'26 CFD trade down to $1.83/bbl with market makers selling to refiner and producer. DFLs came off however found support at the end of the window. Post window we saw some selling of 21-25 Sep vs Cal Oct'26 at $1.80/bbl and 1-7 Oct vs Cal Oct'26 at $0.93/bbl. However saw buying of 8-14 Sep vs Cal Sep'26 at $0.22/bbl. Also saw a major come in selling Q1'27 DFL down to $1.19/bbl.

In VLSFO, Sing 0.5 continued to strengthen this afternoon, Sep/Oct'26 traded up to $42.25/mt before selling back down to $41.00/mt, Oct/Nov'26 gained 2 dollars to $28.00/mt. Sep'26 Sing crack was consistently bid this afternoon trading up to $21.20/bbl from this mornings close of $20.00/bbl. Euro 0.5 spreads sold off slightly this afternoon with Sep/Oct'26 trading down from $21.50/mt to $20.00/mt while the Sep'26 Euro crack was offered down from $7.20/bbl to $6.85/bbl.

In HSFO, 380’s momentum from this morning slowed coming into this afternoon, spreads traded at similar levels to this morning's close with Sep/Oct'26 trading around $30.00/mt. It was a similar story for Sep'26 380 crack which traded between -$2.80/bbl and -$2.60/bbl. Barge spreads had some real buying this afternoon with Sep/Oct'26 trading up to $13.50/mt before retracing and settling at $13.00/mt post window. Barge crack traded up 50c to -$10.70/bbl, 380 e/w was therefore implied slightly lower to $51.50/mt.

This afternoon in distillates, Sing gasoil spreads were mixed, with Oct/Nov'26 initially well bid at $5.80/bbl before turning better offered post window at $6.00/bbl while front E/W weakened from -$89.00/mt down to -$91.00/mt last. Combos were well bid in Oct'26, pushing regrade up to -$0.60/bbl.

Prompt ICE gasoil spreads rallied into the window, with Sep/Dec'26 trading from $145.00/mt up to $160.00/mt, while cracks rallied to $68.90/bbl in Nov'26. European jet diffs continued to strengthen into Q4'26, with Oct'26 trading up to $83.50/mt.

This afternoon in gasoline, MOC was well bid with trade and refiners buyside. EBOB cracks rallied with the Sep EBOB crack trading $49/bbl end of window, with little sellside interest during the window - seeing cracks rally up to $50/bbl shortly post-window. Sep/Oct EBOB continues to find strenght, trading at highs of $160/mt. Sellside interest in the Q2 arb this afternoon from trade at 30.4c/gal, with selling in the Q2/Q3 arb roll also. Some buying in Jan + Feb arb strip at 21c/gal, seeing the Q1/Q2 EBOB crack roll weaken from this morning's trading levels of -$4.45/bbl to -$4.65/bbl.

This afternoon in naphtha was better bid overall, with MOC relatively muted after the morning’s better-bid tone. NWE naphtha was offered earlier but flipped into the window, with Sep'26 cracks moving from around -$3.00/bbl this morning to -$2.30/bbl post-window, while Oct'26 improved to around -$3.00/bbl, Q4'26 to -$4.00/bbl and Q1'27’ to -$5.70/bbl; spreads were supported as well, with Sep/Oct'26 up from $23.00/mt to around $24.00/mt and Oct/Nov'26 steady around $28.00/mt. E/W held firm after the earlier fade, with Sep'26 around $56.50/mt, Oct'26 up to $50.00/mt, Q4'26 around $49.75/mt and Q1'27 firmer to $39.75/mt. MOPJ was stronger on cracks earlier before turning illiquid through the window, with Oct'26 trading at $2.35/bbl and Q2'27 at -$4.10/bbl, while spreads stayed supported on low interest, with Sep/Oct'26 firm at $30.00/mt and Oct/Nov'26 around $28.50/mt.

This afternoon in NGLs, FEI spreads traded down from morning highs, seeing Sep/Oct'26 close the afternoon at $35.50/mt from $38.00/mt and Oct/Nov'26 $2 weaker trading at $27.00/mt. Oct'26 LST/FEI continued to trade around -$346.00/mt, before ending the window printing at -$348.00/mt, and in the deferred Q1'27 LST/FEI was sold at -$260.00/mt, the same level that was trading this morning. There was Q4'26 interest in both FEI/MOPJ and pronap, trading at -$59.00/mt and -$161.00/mt, respectively, with the prior $1 stronger than where it traded earlier in the day. Deferred LST spreads had better buying towards the end of the afternoon, with Q2/4'27 getting lifted at -1.625c/gal, and Q2/3'27 was trading at 0.125c/gal. In the front there was Sep/Dec'26 LST selling at -0.375c/gal, before it strengthened to -0.25c/gal end window. Quiet afternoon in Butane today with some small flat price interest that was trading in line with crude. There was an Oct'26 C4/C3 LST buyer at 37.50c/gal, which softened to 37.125c/gal by close.