Jun’25 Brent futures failed to maintain strength over $75.00/bbl overnight and softened to around $74.50/bbl at 0915 BST but strengthened to around $75.15/bbl at 11.10 BST (time of writing). The US has revoked French oil company Maurel & Prom’s licence to operate in Venezuela as part of sanctions targeting the Maduro regime. Other companies, including Spain’s Repsol and Italy’s Eni, were also notified that their licences had been withdrawn. Threats by President Donald Trump to impose secondary sanctions on Russian oil have prompted Indian companies to seek alternative suppliers, Bloomberg reports. State-owned refineries like Bharat Petroleum and Hindustan Petroleum are now exploring options in the Middle East, North Sea, and Mediterranean regions. US crude oil production dropped by 305kb/d in January to 13.15 mb/d, the lowest level in over a year, according to the EIA. Texas and New Mexico led the decline, while natural gas output also fell by 1.7% during the same period. China’s oil consumption is projected to rise by 1.1% in 2025 to 765 million mt, driven by strong economic growth and rising petrochemical demand, according to a CNPC think tank. While transportation fuel use has peaked, plastics demand—especially from the EV sector—continues to grow. At the time of writing, the Jun/Jul’25 and Jun/Dec’25 Brent futures spreads stand at $0.82/bbl and $3.70/bbl, respectively.
