TOKYO: Oil prices rose on Monday as concerns grew about tighter international supply, with the deepening crisis in Ukraine elevating the prospect of heavier sanctions by the West on high exporter Russia.
Brent futures LCOc1 had been up US$1.50, or 1.3%, at $113.20 a barrel at 0030 GMT, and U.S. West Texas Intermediate futures CLc1 rose 98 cents, or 0.9%, to $107.93 a barrel.
Ahead of Easter weekend holidays, each contracts gained greater than 2.5% on Thursday on information that the European Union would possibly part in a ban on Russian oil imports.
EU governments stated final week the bloc’s government was drafting proposals to ban Russian crude, however diplomats stated Germany was not actively supporting a right away embargo. Read full storyRead full story
Those feedback got here earlier than tensions grew within the Ukraine crisis over the weekend, with Ukrainian troopers resisting a Russian ultimatum to put down arms on Sunday within the pulverised port of Mariupol. Moscow, which calls its actions in Ukraine a “particular operation”, stated its forces had virtually fully seized town, offering no indicators of a ceasefire. Read full story
The International Energy Agency had warned that roughly 3 million barrels per day (bpd) of Russian oil might be shut in from May onwards as a consequence of sanctions, or patrons voluntarily shunning Russian cargoes. Read full story
Russian oil manufacturing has continued to slip in April, declining by 7.5% within the first half of the month from March, the Interfax information company reported on Friday. Read full story
“The oil market will seemingly keep on a bullish development this week with restricted extra supply coming from main oil producers to offset a diminished circulation from Russia,” stated Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.
“Soaring U.S. heating oil prices had been additionally behind the latest rally as expectations grew that U.S. petroleum market would get tighter as a consequence of growing demand to export to Europe.”
The Organization of the Petroleum Exporting Countries (OPEC and its allies in a grouping recognized as OPEC+, which incorporates Russia, have rebuffed Western strain to boost output at a quicker tempo below a beforehand agreed deal to spice up supply.
An OPEC report final week confirmed OPEC output in March rose by simply 57,000 bpd to twenty-eight.56 million bpd, lagging the 253,000 bpd rise that OPEC is allowed below the OPEC+ deal. Read full story
Adding to strain, Libya halted oil manufacturing from its El Feel oilfield on Sunday and two sources at Zueitina oil port stated exports there had been suspended after protesters calling for Tripoli-based Prime Minister Abdulhamid al-Dbeibah to resign took over the websites. Read full storyRead full story
U.S. oil manufacturing forecasts, nonetheless, are being revised upwards regardless of labour and supply chain constraints, as increased prices spur extra drilling and nicely completion exercise, in accordance with trade consultants.- Reuters
