Donna Dong
Research Analyst, Flux
Brent Trades Up to $70.21/bbl
Russian Urals piles up on tankers amid sanctions risk and weak demand; Freeport LNG restarts, OPEC+ output, Iran stays defiant.
The Apr’26 Brent futures contract has traded up this afternoon, from $69.14/bbl at 14:00 GMT to $70.21/bbl at 16:30 GMT (time of writing).
In the news, Russian Urals crude stored in tankers is increasing as customers consider sanctions risks and weakening demand. India and Turkey have reduced their imports since the end of last year due to stricter Western sanctions, such as recent US actions against Rosneft and Lukoil, as well as an EU ban on fuel made from Russian crude. As a result, Russian oil prices have fallen to historic lows. According to LSEG data, several Urals tankers are intentionally delaying their journeys as they lack confirmed buyers and attempt to secure deals while sailing. Extended pauses are thus turning some tankers into floating storage; data shows roughly 19mb of Urals loaded before 15 Dec that are awaiting discharge or remain in transit. Elsewhere, Freeport LNG's export plant in Texas was set to receive more natural gas on Friday, indicating that one of its three liquefaction trains was likely operational again after shutting down on 29 Jan. Freeport has not yet confirmed this. In other news, delegates from OPEC+ reportedly said that the group is expected to maintain its oil production policy this weekend, affirming a pause in output hikes in March. In geopolitical news, Tehran’s foreign ministry has said that the nation’s missile and defence capabilities “will never be subject to negotiation.” Minister Abbas Araghchi also stated that the Republic is “ready for negotiations, [but] it is also ready for war.” Finally, the Apr/May and Apr/Oct Brent futures spreads are at $1.03/bbl and $3.00/bbl, respectively.
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