The July Brent futures flat price has had a spiky afternoon, which it began by falling to $83.10/bbl at 12:40 BST, from which it rapidly rose to the afternoon’s high of $83.75/bbl at 14:10 BST. Subsequently, between 14:15 BST and 16:25 BST, price action bounced between $83.20/bbl and $83.60/bbl, before more stability was seen, with the price settling by 17:15 BST (time of writing) in $83.50/bbl handles. The UK, alongside international allies, has announced a new package of sanctions to target Russia and North Korea’s illicit arms-for-oil partnership in response to their respective involvements in the ongoing war in the Ukraine. In related news, India and China are sustaining the market for sanctioned oil, with the world now awash with discounted, sanctioned crudes that now make up around 5% of the global oil trade. Building on this morning’s news, Vladimir Putin says Russia is mulling building an oil pipeline besides the Power of Siberia-2 gas pipeline. South Korea’s Hyundai Oilbank has cut crude runs temporarily to around 87% of normal levels at its Seosan refinery site after a minor fire, resulting in an estimated cut of around 68kbbls/d to the 520kbbls/d total capacity. The front and 6-month spreads are $0.33/bbl and $2.82/bbl, respectively.
