Brent Trades in Range US Offers to Loan Emergency Heating Oil Reserves

The Dec’26 Brent futures contract has traded in range this afternoon, from a low of $107.81/bbl at 14:00 BST to $109.36/bbl at 16:00 BST. Prices are currently printing at $108.77/bbl at 17:10 BST (time of writing). In the news, the Trump administration is offering to loan nearly a third of the 1mb US emergency heating oil reserve to cool surging prices, the Department of Energy has said, following bipartisan pressure from senators. The Northeast reserve, held across New Jersey, Connecticut, Massachusetts, and Maine, has been tapped only once since Hurricane Sandy in 2012, and heating oil is used by about a third of New England homes. Elsewhere, Saudi Arabian crude exports rose about 7.9% m/m in August to 4.45mb/d, the highest since March, JODI data shows, even as production fell to a record low of 6.24mb/d from 8.14mb/d in July. Refinery crude throughput dropped 181kb/d to 2.3mb/d, while direct crude burning rose 43kb/d to 604kb/d. In other news, Japan is considering winter subsidies for gas and electricity to ease the burden of rising heating bills, Chief Cabinet Secretary Minoru Kihara announced today. He said the government aims to take "appropriate measures," including drawing on budget reserves, in a timely manner if needed. Finally, as of the time of writing, the front-month (Dec/Jan’27) and 6-month (Dec/May’27) Brent futures spreads are at $3.77/bbl and $14.63/bbl, respectively.

Volatile afternoon, with the Dated complex extending the rally and the strength concentrated in the prompt. Nov'26 DFL slipped from $7.22/bbl to $6.78/bbl before rallying to $7.85/bbl despite real selling on the way up, last $7.80/bbl, around $1.04/bbl above last night’s close. Nov/Dec'26 Dated dipped to $5.15/bbl before rallying to $5.87/bbl, $5.85/bbl end of window, around 80c above last night’s close, and $5.97/bbl in size since, while Nov/Dec'26 DFL firmed to $2.50/bbl.
The physical window drove it: a tradehouse bid the back of the Midland curve aggressively and a refiner bid the front, while a producer offering the back was lifted by a tradehouse. That accelerated the melt-up, with the prompt squeezing: in the window Nov'26 DFL went from $7.45/bbl to $7.85/bbl, most of it after 16:15, and Nov/Dec'26 Dated from $5.58/bbl to $5.87/bbl, while Q1'27 DFL eased to $3.00/bbl. In the days market, 09-13 Nov'26 v Nov'26 was bought at $1.10/bbl and 04-17 Nov'26 v Dec'26 traded $6.65/bbl. 13-19 v 13-26 Nov'26 was bought by real players at $0.84/bbl pre-window, 11-17 v 23-27 Nov'26 was sold at $2.80/bbl, and $16.00/bbl-20 v 23-27 Nov'26 was sold at $1.28/bbl and has firmed since.

This afternoon in Brent/Dubai we traded in a tight range, the Nov'26 Brent/Dubai between -$2.75/bbl to -$2.50/bbl, finishing slightly firmer at -$2.63/bbl. There was buying of Dec'26 Brent/Dubai in size around -$2.45/bbl to -$2.46/bbl, and some selling of Jul'27 Brent/Dubai at -$1.70/bbl. The Dubai spreads were range-bound, the Nov/Dec'26 Dubai spread trading between $3.46/bbl to $3.60/bbl. There was buying of Jan/Feb'27 dub spread around $2.09/bbl to $2.05/bbl. The Nov/Dec'26 box traded down to -$0.37/bbl before rallying late back up to -$0.15/bbl. There was tradehouse buying of Jan/Feb'27 box at -$0.08/bbl. Dated/Dubai was well bid late, the Nov'26 up to $5.20/bbl.

Sing 0.5 price action was relatively muted this afternoon, Nov/Dec'26 traded between up from $29.00/mt to $29.75/mt in the early afternoon and then consistently traded at this level, Dec/Jan'27 consistently traded at $31.25/mt, Nov'26 Sing crack was range-bound this afternoon, trading between $24.25/bbl and $24.55/bbl while Dec'26 Sing crack traded at $23.00/bbl in low volume. Euro spreads traded slightly lower this afternoon, Nov/Dec'26 sold off from $14.00/mt to $13.50/mt, Dec/Jan'27 shed 75c to $12.25/mt and traded then traded consistently at this level, Nov'26 Euro crack was initially better offered trading down from $0.75/bbl to $0.30/bbl before getting bid back up on screen to $0.70/bbl in the window.

380 spread liquidity tightened this afternoon, Nov/Dec'26 traded up from $52.00/mt to $53.00/mt just before the window before selling back down to $52.00/mt in the window, Dec/Jan'27 similarly traded up a dollar to $37.50/mt before coming off to $36.00/mt in the window, Nov'26 380 crack was better bid trading up from $7.60/bbl to $8.40/bbl where it topped out and traded back down to $8.00/bbl. Barge spreads were better bid with Nov/Dec'26 rallying from $21.00/bbl to $23.00/bbl before retracing to $22.50/bbl post window, Dec/Jan'27 traded up 50c to $20.20/bbl in tiny volume, Nov'26 Barge crack was choppy but ultimately traded up from -$9.15/bbl to -$8.90/bbl.

This afternoon in distillates, Sing gasoil spreads saw some buying at lower levels, with Nov/Dec'26 trading from $3.12/bbl down to $2.95/bbl. E/W was better bid in Dec'26 and Jan'27, with Dec'26 E/W lifted up to -$96.00/mt. Nov/Dec'26 regrade roll were well offered at -$0.55/bbl, while Nov/Mar'27 kero saw selling.

Prompt ICE gasoil spreads sold off, with Nov/Dec'26 trading from highs of $55.00/mt down to $49.50/mt, while Dec'26 cracks also weakened from $82.00/bbl down to $75.75/bbl. European jet diffs remained relatively stable, with Nov'26 weakening from $130.00/mt down to $128.00/mt.

This afternoon in gasoline, quiet afternoon for MOC. Trade sell side of Nov/Dec'26 into end of window at $35.50/mt with the crack trading $18.70/bbl, with real interest buyside. March'27 and Feb'27 arbs better offered this afternoon with selling in March'27 stepping down to $38.50/bbl on weaker RBBRs on US open. Q1'27 cracks still better offered this afternoon seeing selling from trade at $19.30/bbl.

Busy and weak afternoon in naphtha, with MOC offered. NWE naphtha weakened versus the morning, with Nov'26 cracks choppy and trading down to -$6.00/bbl early afternoon before recovering to -$5.40/bbl then ending at -$5.85/bbl; Q1'27 finished at -$6.55/bbl from lows of -$6.80/bbl, the Nov/Dec'26 crack roll fell to $0.35/bbl and Cal 28 traded at -$10.15/bbl. Spreads were thin, with Nov/Dec'26 at $33.25/mt post-window and Jan/Mar'27 at $43.00/mt. E/W remained under pressure in the front, with Nov'26 ending at $66.50/mt versus $67.00/mt this morning after briefly recovering to $68.00/mt, while the backend was bid, Q1'27 up from $47.50/mt lows to $49.50/mt, Cal 28 at $24.50/mt, and the Nov/Jan'27 box at $12.75/mt. MOPJ was choppy but illiquid, with Nov'26 falling to $1.45/bbl early afternoon before recovering and ending closer to $1.70/bbl on a flat-price basis; spreads held up better, with Nov/Dec'26 at $36.00/mt and Dec/Jan'27 at $29.50/mt post-window.

This afternoon in NGLs, FEI structure was slightly stronger. Nov/Dec'26 FEI traded at $33.50/mt at the European close up from $32.00/mt during the US window. Dec'26 26/Dec'26 27 was also slightly better bid trading at $222.00/mt during the US window before trading up to $225.00/mt by the European window.

FEI/MOPJs were also implied slightly stronger. Q1'27 FEI/MOPJ traded at lows of -$55.00/mt seeing Chinese and importer buying before printing back to -$49.00/mt. Cal28 FEI/MOPJ was saw importer buying at -$84.00/mt before printing -$87.00/mt into the close.

The Arb was weaker this afternoon with Nov'26 LST/FEI trading at -$329.00/mt pre-European window which was down from -$316.00/mt traded post US window.

The Dec'26 LST/FEI was actively traded at -$300.00/mt by importers and European trade house before stepping down to -$305.00/mt. In the long end there was European trade house buying of the Cal 28 LST/FEI at -$171.00/mt.

LST structure was very weak today with Nov/Dec'26 LST selling at 1.00c/gal before stepping down to 0.75c/gal by the European close. Dec/Jan'27 LST sold off from 3.00c/gal down to 2.375c/gal by the European close. Q1/Q2'27 LST was also weaker selling from 11.75c/gal down to 11.00c/gal by the European close.

Butane finally sold off today with Nov/Dec'26 Butane trading down to 6.00c/gal versus 7.25c/gal at the US open. Dec/Jan'27 Butane also sold off from 7.00c/gal down to 6.125c/gal. Butane was also relatively weaker than LST with Nov'26 C4 ENT/C3LST trading at 60.50c/gal before stepping down to 57.75c/gal by the European close.