Crude oil storage tanks are seen at Kinder Morgan Terminal in Sherwood Park, near Edmonton, Alberta, Canada, November 14, 2016. REUTERS / Chris Helgren
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HOUSTON, June 27 (Reuters) – Oil prices rose in a volatile session on Monday as investors waited for any move against Russian oil and gas exports that could come out of a meeting of Group of Seven (G7) leaders in Germany. .
Brent crude futures rose $ 2.56, or 2.3%, to $ 115.68 a barrel at 13:56 ET (1756 GMT), while US West Texas Intermediate crude rose $ 2.51, or 2.3%, at $ 110.14 a barrel.
The prospect of an even tighter supply was raised in the market as Western governments sought ways to limit Russia’s ability to finance its war in Ukraine, although G7 leaders were also expected to discuss a revival of the nuclear deal with Iran, which could lead to more oil exports. of the OPEC member. [ read more ]
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The group of rich nations pledged on Monday to side with Ukraine “for as long as it takes,” promising to bolster pressure on Russia’s finances with new sanctions that include a proposal to limit the price of Russian oil. Read more
“I think that if they had to apply a maximum price to the sale and purchase of Russian oil, I would have a hard time imagining how this will be implemented, especially when China and India have become Russia’s main customers,” he said. say Houston-based oil. the consultant Andrew Lipow.
Commonwealth Bank of Australia analyst Vivek Dhar noted that “nothing has prevented Russia from banning exports of oil and refined products to G7 economies in response to a price cap, exacerbating conditions of scarcity in the world markets for oil and refined products “.
Both crude benchmarks closed for the second week in a row on Friday as interest rate hikes in key economies strengthened the dollar and fueled fears of a global recession.
Fears of the recession and expectations of higher interest rates have led to volatility and risk aversion in futures markets, with some energy investors and traders declining, while spot oil prices ‘have remained strong with high demand and a supply crisis. Read more
So far, urgent supply concerns have outpaced growth concerns.
Members of the Organization of the Petroleum Exporting Countries and their allies, including Russia, known as OPEC +, are likely to adhere to a plan to accelerate oil production in August when they meet on Thursday, they said. say sources. Read more
The producer group also reduced its projected oil market surplus for 2022 to 1 million barrels per day (bpd), below the previous 1.4 million bpd, a report seen by Reuters showed. Read more
Libya, an OPEC member, said on Monday it could have to halt exports to the Sirte Gulf area in 72 hours amid riots that have restricted production.
In addition to supply problems, Ecuador also said it could completely suspend oil production within 48 hours amid anti-government protests in which at least six people have been killed. Read more
Traders also expected news from Ford about when the U.S. government’s oil inventory and other data would be released after it was not released last week due to server issues.
U.S. crude, distillate and gasoline inventories likely fell last week, a preliminary Reuters poll showed on Monday.
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Additional report by Ron Bousso in London, Florence Tan in Singapore; Editing by Marguerita Choy, Louise Heavens and Tomasz Janowski
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