The prompt Jun’25 Brent Futures saw prices rally up to $61.03/bbl at 14:40 BST before falling down to $59.61 around 16:10 BST. Prices have since crawled back up to $60.59/bbl at 17:40 and have jumped up to $64.90 at 18:54 BST (time of writing). Analysts warn US oil companies may slash capital spending and share buybacks to preserve cash. Many producers now face breakeven prices above $62/bbl, factoring in dividends and debt service, with companies like Exxon and Chevron needing up to $95/bbl to fully cover payouts. Analysts expect cautious earnings guidance later this month if prices stay low. US crude stockpiles rose by 2.6 mb last week, as imports increased and exports fell to their lowest since January, according to the EIA. Exports dropped by 637 kb/d to 3.2 mb/d, while imports rose to nearly 3 mb/d. Reuters report that analysts voiced concerns that falling demand and rising trade tensions, especially with China’s new 84% tariffs on US. goods, may signal broader economic weakness. In other news, Saudi Arabia has discovered 14 new oil and gas fields across the Eastern Province and the Rub’ al Khali, boosting its upstream reserves. Energy Minister Prince Abdulaziz bin Salman called it a strategic milestone that reinforces the Kingdom’s energy future. The news follows Saudi Aramco’s sharp price cut for May Arab Light crude to Asia. Finally, the front month Jun/July and 6-month Jun/Dec spreads are at $0.48/bbl and $1.18/bbl respectively.
