Prompt Brent futures flat price has witnessed a relatively weak afternoon period. Prices initially fell to lows of $88.89/bbl at 13:50 BST, however, this level enticed some buying interest supporting the contract back to low $89/bbl handles. Nonetheless, since 16:00 BST prices have been on a downtrend, subducting the $89/bbl mark again to print at $88.94/bbl at 17:05 BST. According to the US Department of Treasury, the US has not asked India to cut Russian oil imports in order to keep stable global oil supplies. Moreover, refined Russian oil is not subject to Western sanctions, as it represents “an import from the country of purchase, it is not an import from Russia”. The coastal West African oil belt which will soon be responsible for almost 500kbbls of oil per day is under threat of destabilisation from violence spreading from the insecure coup-plagued Sahel region. Nigerian power companies are planning to raise prices to 200 naira/kWh from 68 naira/kWh for urban customers this month. Finally, the exit of Petrobras’ CEO, Jean Paul Prates, is likely to occur in the coming days. The front and 6-month Brent futures spreads are at $0.86/bbl and $4.86/bbl, respectively.
