The August Brent Futures contract saw a volatile afternoon, rising to a peak of $83.40/bbl at 12:30 BST before prices fell to $82.60/bbl at 14:15 BST and subsequently oscillated between $82.30/bbl and $83.20/bbl later into the afternoon, printing at $82.22/bbl at 17:30 BST. EIA figures have emerged highlighting a 4.2 mbbls draw in US crude inventories, with stocks down to 454.7 mbbls in the week to May 24th and approximately 4% below the 5-year historical average. Conversely, gasoline stocks rose by 2.02 mbbls in the week to 228.8 mbbls, contrasting analyst expectations of a 0.4 mbbls draw in a Reuters poll. Distillate stocks experienced similar movements, rising by 2.5 mbbls to 119.3 mbbls in the week, against expectations of a 0.1 mbbls draw. In other developments, starting in 2025, Germany will abolish a controversial levy on natural gas storage that has been imposed on central European countries, including Austria, the Czech Republic, Hungary, and Slovakia, for gas piped through Germany. This levy has raised tensions as gas import costs from Germany have risen significantly, undermining efforts to reduce reliance on Russian gas. The Aug/Sep and Aug/Feb’25 spreads have narrowed to $0.30/bbl and $2.45/bbl, respectively.
