On the back of rapid territorial gains by militants of the Islamic State of Iraq and Syria (ISIS) in northern Iraq, ICE Brent oil futures surged in mid-June to a 9-month high of more than $115/bbl. However, according to the International Energy Agency’s most recent Oil Market Report, future prices pulled back in early July on confidence that Baghdad’s southern fields would remain largely insulated from the turmoil and improved prospects for a recovery in Libyan exports. Brent futures last traded at $108/bbl, and West Texas Intermediate futures at $102/bbl. In the US, WTI prices were supported in mid-June by Washington’s decision to issue permits to certain firms to export stabilized condensate. “The front-month ICE Brent and NYMEX WTI spread contracted in June, averaging $6.82/bbl compared with $7.45/bbl in May, partly on the possibility that the export of distilled condensate could remove some of the overhang along the […]