Jun’25 Brent Futures dropped to almost $62.00/bbl around 15.08 BST before recovering to around $63.60/at 16.40 BST and is around $62.75/bbl at 17.35 BST (time of writing). The EIA cut the non-OPEC 2025 supply growth estimate to 1.26mb/d (was 1.43 mb/d), and cut the 2026 estimate to 1.08mpbd (was at 1.27mb/d). Brazil’s government is planning an additional auction of offshore oil stakes this year. In a “worst-case” scenario, the auction, expected by September, will target uncontracted parts of the Tupi, Mero, and Atapu pre-salt fields to raise up to $3.4 billion. The move is seen as a strategic move to offset revenue shortfalls. TotalEnergies EP Namibia, along with partners Namcor and Qatar Energy, plans to produce 160,000 barrels of oil per day from the proposed offshore Venus Field, with storage for two million barrels and a gas separation capacity of 550,000 MMscfd. The US Dollar Index is down 1.7% in the day and USD/CAD is near its lowest level since November. There was a drop of around 5.4mb in Japanese crude inventories last week. The front-month Jun/Jul and 6-month Jun/Dec spreads are at $0.54/bbl and $1.50/bbl, respectively.
