The May Brent futures contract clocked in a volatile morning today with prices surging up to $86.20/bbl at 08:50 GMT, dropping to $85.80/bbl handles around 09:10 GMT but ultimately correcting upwards, hovering just below $86/bbl at 10:20 GMT (time of writing). The benchmark crude futures found support amid heightened geopolitical tensions stemming from Ukrainian strikes on Russian oil infrastructure – the latest of which took place at the Syzran and Slavyansk refineries over the past weekend. The refineries have the capacity to process 8.5 and 4.5 million metric tonnes of crude a year, respectively. These attacks over the past year have reportedly taken down 7% of Russian refining capacity in Q1’24, as per an analysis by Reuters. In addition, the market will also be focused on the US Fed’s two-day meeting ending Mar 20 for further clarity on interest rate directions. Finally, the front-month and six-month Brent spreads are currently at $0.58/bbl and $3.97/bbl, respectively.
