June 4, 2023

Dubai Week

Complete Dubai News World

Fear of supply shortages raises oil prices .. Brent crude above $ 128

Fear of supply shortages raises oil prices .. Brent crude above $ 128

Rose Oil prices In Wednesday’s trade, the United States banned Russian oil imports amid fears of a possible supply shock amid signs that some buyers are already avoiding them.

Asian stocks fought for stability as investors assessed the impact of escalating conflicts in Ukraine and the US embargo on Russian oil.

Oil prices rose nearly 4% to close at $ 128 a barrel on Tuesday.

Oil prices today

08: 9 AM GMT (Mecca time 11:09 AM), futures pricesWest Texas Intermediate Crude Oil – April delivery – 0.44%, reaching $ 124.25 a barrel.

Future prices also roseBrent crude – May 2022 Delivery – 0.26%, recording $ 128.31 per barrel, after registering $ 133.15 per barrel during trading.

Russia bans oil imports

US President Joe Biden on Tuesday imposed an immediate ban on Russian oil and other energy imports, and Britain has said it will suspend Russia’s oil and other energy imports. Russian oil Gradually until the end of 2022 in response to the Russian invasion of Ukraine.

Oil prices rose more than 7%, and Brent crude soared above $ 133, before US President Joe Biden cut back on its gains at the end of trade following a ban on Russian oil imports.

The embargo was the culmination of US and European sanctions imposed on Moscow for waging the largest war in Europe since World War II.

Shell announced that it would stop buying crude oil from Russia and gradually stop participating in all Russian hydrocarbons, making it one of the first major Western oil companies to abandon Russia altogether.

See also  Weekly Profits for US Stocks - Al-Ittihad Newspaper
Russian Oil Exports – Archive

Russia is looking for oil buyers

Goldman Sachs, meanwhile, estimates that more than half of Russian oil exported from ports is unsold, while JPMorgan estimates that 70% of Russian seawater buyers have difficulty finding it.

Russia, the world’s second-largest crude exporter, has seen oil prices rise more than 30% since the so-called “special operation” in Ukraine.

Analysts say fears of further disruptions in oil supplies have increased as sanctions on Moscow have increased. Reuters.

Oil market analyst Vanda Insights said: “As the market absorbs the effects of the US embargo on Russian barrels, the upward pressure on oil prices continues to intensify and awaits details of Moscow’s export embargo.”

On Monday, oil prices hit the highest level since July 2008, with Brent crude at $ 139.13 a barrel and WTI at $ 130.50.

Distribution disruptions

Hiroyuki Kikukawa, general manager of research at Nissan Securities, said: “In addition to the effects of the US and UK announcements, fears of further supply disruptions from Russia due to the tightening of sanctions on Moscow have prompted new purchases.”

“But the rallies on Monday will become a short-term one because countries in the Northern Hemisphere are heading for spring when speculative purchases will fall quickly and fuel demand is low,” he added.

Stephen Innes, Managing Partner, SBI Asset Management, said: “The oil shock is an overall one and not a one-off, and the potential for the market to reach $ 150 before it returns to $ 100 is easily digested by investors.”

He added, “Imposing sanctions without first creating alternative supply coincidences increases the risk of Brent crude rising.”

See also  The story of Elon Musk's "cheap" house ... Where does the world's richest man live?

US oil stocks

U.S. crude inventory rose 2.8 million barrels in the week ended March 4, but fell short of analysts’ expectations of a decline, but petrol and distillation stocks fell, according to market sources, citing U.S. Petroleum Institute figures.

And elevated management US Energy Information Crude oil prices will be 27% this year.

Related topics.

Read this too ..

Subscribe to the newsletter to receive the most important energy news.