The Brent futures flat price for the prompt contract has seen a relatively weaker morning. Price action was initially stable around the $89.60/bbl mark in the early hours of the morning, however, since then prices have sold off slightly to $89.17/bbl at 10:40 BST. Exxon has said that its Q1 earnings will be impacted by the decline in oil benchmarks, citing weaker gas prices and substantial losses from its fuel derivatives business, according to Reuters, referencing a securities filing. The operating result for Q1 2024 stands at $6.65 billion, a decrease from the previous year’s record of $11.6 billion, as well as a decline from Q4 2023 at $7.63 billion. In separate news, following multiple delays, cost overruns, and legal disputes, the expanded Trans Mountain oil pipeline is set to commence operations on May 1, after project work amounting to $53 billion will be completed. The expansion will add 590 kbpd to the pipe’s capacity, with production from the oil sands deposit expected to rise 375kbpd this year. The front-month and 6-month Brent futures spreads are at $0.90/bbl and $4.96/bbl, respectively.
