The Jun’25 Brent Futures contract saw prices rangebound between $67.00/bbl and $66.50/bbl for most of the afternoon before falling off to $65.95 at 17:09 BST. Prices have since climbed back to $66.52/bbl at 17:43 BST (time of writing). In the news, Chevron plans to drill its first exploration well in Namibia’s Walvis Basin in 2026 or 2027, following its acquisition of an 80% stake and operatorship in Petroleum Exploration License 82 (PEL 82). The move aligns with Chevron’s broader strategy to expand its exploration portfolio in under-explored regions. PEL 82 lies north of Namibia’s Orange Basin, where Shell, TotalEnergies, and Galp have made major oil discoveries since 2022. In other news, Eni SpA reported Q1 2025 adjusted net profit of $1.6B, down 11% y/y but above expectations. Amid falling oil prices and macro uncertainty, the company will cut capital spending by up to $1.13B but will maintain its planned dividend hike and $1.7B share buyback. Shares rose nearly 2% in Milan on the news. To preserve payouts, Eni is deploying over $2.27B in cost-cutting and cash initiatives. Valero Energy posted a Q1 loss of $595 million, due to weaker refining margins and nearly $1B in impairment charges tied to West Coast assets. This compares to a $1.2B profit a year ago. CEO Lane Riggs cited heavy maintenance and weak renewable diesel margins as key challenges. Finally the front month Jun/Jul spread is at $0.89/bbl and the 6-month spread is at $2.43/bbl.
