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Oil surges as EU relaxes Russia’s ban and Saudi Arabia’s refinery production surges

View of refinery petroleum product storage tanks at Phillips 66’s Los Angeles refinery (foreground), which processes domestic and imported crude oil into gasoline, aviation and diesel fuel at sunset in Carson, and Kinder Morgan Carson Terminal (background), USA March 11, 2022, California. Taken on March 11, 2022. Taken with a drone. REUTERS / Bing Guan

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  • EU considers Russia’s oil embargo and Biden will participate in negotiations
  • Saudi refinery production hit by Yemen’s Houthi attack
  • OPEC +’s supply gap will widen further as February’s compliance surges
  • US oil rigs fall despite oil prices of $ 100 per barrel-Baker Hughes

March 21 (Reuters)-While European Union countries are considering joining the United States on Russia’s oil ban, Monday’s oil prices as a weekend attack on Saudi Arabia’s oil facilities caused jitter. Came up $ 3 and Brent surpassed $ 110 a barrel.

Brent crude oil futures rose $ 3.44 (3.2%) to $ 111.37 a barrel by 0443 GMT and rose 1.2% last Friday.

Crude oil futures at West Texas Intermediate (WTI) rose $ 3.54 (3.4%) last Friday to $ 108.24, up 1.7%.

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Prices have risen ahead of a series of summit talks between the European Union government and US President Joe Biden this week aimed at strengthening the Western response to Moscow over the invasion of Ukraine.

The EU government will consider whether to impose an oil embargo on Russia.read more

Earlier Monday, Ukrainian Deputy Prime Minister Irina Werschuk said there was no possibility of troops surrendering in the besieged eastern port city of Mariupol.read more

There were few signs that the conflict would ease, and the focus returned to whether the market could replace the sanctioned Russian barrel.

Jeffrey Halley, senior OANDA analyst, said: “Asian oil due to a footy attack on Saudi Arabia’s energy terminal, a warning of a structural shortage of production from OPEC, and a potential European coalition oil ban on Russia. Prices have skyrocketed. “

“Even if the Ukrainian war ends tomorrow, Russia’s sanctions will bring the world to a structural energy shortage.”

Over the weekend, an attack by the Houthi Group in partnership with Iran in Yemen temporarily reduced production at the Saudi Aramco refinery joint venture in Yanbu, with Russia as a major supplier and volatile oil with multiple global inventories. Concerns have arisen in the product market. Yearly cheap.read more

The latest reports from OPEC and allies, including Russia, together called OPEC +, showed that some producers were still below the agreed supply quota.

OPEC + failed to meet production targets of more than 1 million barrels (bpd) per day in February, three sources told Reuters.

Two OPEC countries, Saudi Arabia and the United Arab Emirates, have so far resisted calls for faster production boosts to help lower oil prices from major consumers.

US energy companies are also struggling to maintain a number of active oil rigs, despite soaring prices.read more

Due to poor supply prospects and high prices, the International Energy Agency will reduce oil usage by 2.7 million barrels / day within four months, from carpooling to lower speed limits and cheaper public transport. Was outlined.read more

This will help offset the product with 3 million barrels per day of Russian crude oil, which the IEA estimated to be off the market by April.read more

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Report by Sonali Paul in Melbourne and Florence Tan in Singapore, edited by Shri Navaratnam and Clarence Fernandez

Our Criteria: Thomson Reuters Trust Principles.

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