The August Brent futures contract had a relatively quiet afternoon, trading in a tight range of $77.10/bbl and $76.80/bbl. It has since seen some upside support, trading up to $77.50/bbl as at 17:20 BST (time of writing) yet it seems hesitant to make any major moves either way. Nigeria has seen a shutdown of the national grid alongside flights being disrupted nationwide due to an indefinite strike from the country’s main labour unions. Following President Bola Tinubu’s appointment to office last year, Nigeria has seen crippling bouts of inflation which have sparked a cost of living crisis, with the minimum wage failing to be adjusted. One of the prominent contributors was the removal of fuel subsidies. While electricity and aviation unions have directed members to withdraw services in compliance with the strike, Nigeria’s oil regulator chief Gbenga Komolafe assured people that contingencies are in place to avoid output disruption. After being given the green light by South Korean President Yoon Suk Yeol to conduct exploratory drilling, we may see the tides turn for one of the largest energy importers globally. This is primarily in response to a study that suggested there is a high possibility of 14 billion barrels of oil and gas off the country’s east coast. Since 1996 South Korea has only managed to tap gas reserves of 4.5 mbbls. The project which will commence at the end of the year may therefore see South Korea dramatically reduce its import dependence. The Aug/Sep and Aug/Feb Brent Futures spreads are $0.20/bbl and $1.71/bbl, respectively
