June Brent futures flat price rose gently overnight but failed to pass $86/bbl, leaving it trading around $85.75/bbl at 0640 GMT (time of writing). This marks an increase of approximately 12% this quarter, with WTI increasing 14%. The Biden administration awarded contracts to buy 2.8mbbls of oil for the SPR at over $81 per barrel, $2 above the target price. The Department of Energy will spend $225.6 million for this purchase with delivery in September. The U.S. dollar index stabilised, maintaining strength following The Fed’s Waller saying there is no rush to cut the rate and may need to maintain the current rate for longer than expected. According to Bloomberg, China’s property market downturn is gradually weakening the financial health of the country’s leading state banks as non-performing loans increase. The Jun/Jul and Jun/Dec futures spreads are at $0.72/bbl and $4.08/bbl, respectively.
