The Jun’25 Brent futures contract saw prices initially rally to $67.34/bbl at 07:12 BST before falling off to $66.48/bbl at 11:30 BST (time of writing). In the news, uncertainty over US-China trade talks and potential OPEC+ supply increase weighed on markets. In Iran an explosion in the Port of Bandar Abbas has killed at least 40 people and has left more that 1,200 injured. In other news, Portugal’s Galp Energia reported a 29% drop in first-quarter core profit to €669 million ($759.75 million), slightly above expectations, due to lower oil output and refining margins. Adjusted net profit fell 41% to €192 million ($218.04 million). Oil and gas production dropped 3% to 104 kb/d. Despite the decline, Galp maintained its full-year production guidance and highlighted exploration successes in Namibia. Estonia has released the oil tanker Kiwala, previously detained for sailing without a valid flag and suspected of being part of a sanctions-evading “shadow fleet.” The tanker was freed after Djibouti confirmed it would temporarily register the vessel until May 7. Kiwala is now anchored near Russia’s Ust-Luga port. Abu Dhabi’s ADNOC will raise $1.5 billion from its first Islamic bond (sukuk) sale, priced at 60 basis points over US Treasuries. The 10-year sukuk, issued via ADNOC Murban, drew over $3.85B in demand and proceeds will go toward general corporate purposes. Finally the front month Jun/Jul and 6-month Jun/Dec spreads are at $1.06/bbl and $2.31/bbl respectively.
