News about Oil
During trading on Monday, June 29, the market price of Brent crude, the benchmark North Sea oil, began to rise amid renewed mutual missile strikes between the U.S. and Iran in the Middle East.
JPMorgan has sharply lowered its forecast for Brent crude oil prices over the next six quarters. The bank believes that falling demand is a more significant factor than the decline in inventories.
The cost of the operation to kidnap Venezuelan President Nicolás Maduro paid for itself 28 times over. Donald Trump made this statement while speaking to his supporters in Pennsylvania.
Following technical talks, Iran and the United States have formed four working groups that will address the lifting of sanctions, the nuclear program, reconstruction and economic development, as well as monitoring compliance with the agreements. This was announced by Iran’s Deputy Foreign Minister Kazem Garibabadi.
Iran announced that it had reached a number of agreements with the United States, including the establishment of an emergency mechanism to ensure the safe passage of ships through the Strait of Hormuz—one of the world’s key oil and gas supply routes.
Demand for oil is falling faster than expected. Global supply in the oil market could significantly exceed demand if lasting peace is established in the Middle East. The global oil market could face an oversupply if the agreement between the U.S. and Iran remains in effect and shipments through the Strait of Hormuz begin to resume. This is the conclusion reached by the International Energy Agency (IEA) in its monthly report.
The U.S. Department of the Treasury has extended the authorization for transactions involving the shipment to Japan of oil produced under the Russian “Sakhalin-2” project until December 18 of this year.
For the fourth time in a row, OPEC+ agreed on June 7 to raise oil production targets. Despite this, the organization’s key countries, including Saudi Arabia, have been unable to fully supply their buyers since late February.
The Baku-Tbilisi-Ceyhan pipeline (BTC) has transported about 557 million tons of Azerbaijani oil over the 20 years of its operation.
British Airways is preparing to increase prices for air tickets due to rising fuel costs amid the conflict in the Middle East. This is reported by Bloomberg with reference to the airline’s CEO Sean Doyle.
The National Energy Regulatory Agency (NERA) reported that retail prices of major petroleum products continued to decline throughout the past week.
We should not expect the global energy crisis to end soon, the balance of global oil supply and demand will not even out in the rest of the year.
The International Energy Agency (IEA) has warned that global oil inventories could reach critical levels ahead of summer demand if the current rate of inventory drawdown continues.
Iraq’s Oil Ministry announced the discovery of a major oil field in the southern province of Najaf, near the border with Saudi Arabia.
Polish group Orlen is interested in expanding its presence in Ukraine and is considering the possibility of acquiring a stake in Ukrnafta.
Moldova will have emergency stocks of petroleum products sufficient to cover domestic consumption for 61 days or equivalent to at least 90 days of net imports, depending on the higher figure.
UPDATED. On May 27, the government supported a number of legislative amendments aimed at reducing the risks of fuel supply interruptions and optimizing the management of power grid capacity.
Shares of major cruise operators are rising noticeably amid a sharp drop in oil prices, which could significantly reduce their fuel costs.
The dollar, considered a defensive asset, is gaining ground amid renewed investor concerns. Negotiations are progressing, but a deal is not expected anytime soon. The dollar stabilized on Tuesday amid expectations of the reopening of the Strait of Hormuz and an end to the conflict with Iran. However, new U.S. strikes on Iranian facilities and statements about a long negotiation process cooled market optimism.
August futures for Brent crude oil were $94.7 per barrel – 5.4% cheaper than the previous day’s close, according to data from the London-based ICE exchange. The last time Brent fell below $95 per barrel on April 24. The cost of U.S. WTI crude oil, shipped in July, fell by 5.77% – to $90.83 per barrel.
