2023-09-21 18:00:00
London: Oil prices started to rise once more on Thursday, following Russia’s announcement of a restriction on its exports of gasoline and diesel, rekindling market fears regarding the supply deficit, both on the crude and product side. .Around 3:40 p.m. GMT (5:40 p.m. CET), the barrel of Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. from the North Sea, for delivery in November, took 0.42% to 93.92 dollars.
Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in setting the price of crude and as a raw material for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.), for delivery in the same month, of which it is the first day of use as a reference contract, rose by 0.70% to 90.29 dollars.
“Crude prices were poised to continue falling, but Russia’s abrupt decision to impose (restrictions on) gasoline and diesel exports pushed up the price of oil,” said Edward Moya, an analyst at Oanda.
The Russian government introduced export restrictions on gasoline and diesel on Thursday in the face of soaring prices which are increasingly eating into Russian income.
“The government has introduced temporary restrictions (…) in order to stabilize the domestic market,” the Russian government announced in an official statement, without specifying for how long.
After having digested the extension of the Russian export cut of 300,000 barrels per day of crude oil until the end of the year, the market “must now face uncertainty as to the duration of this temporary ban” concerning petroleum products, underlines Mr. Moya.
In the red at the start of the session due to the risk aversion sentiment present on the market, oil prices shifted into the green following the Russian announcement.
“Russian diesel exports represent around 1 million barrels per day, or 16% of the supply by sea, while the share of gasoline is much lower, around 3%,” estimates Giovanni Staunovo, analyst at UBS, interviewed by AFP.
“The appreciation of the dollar limits the current rise in oil prices because it is accompanied by a deterioration of the outlook for Europe,” tempers Edward Moya, however.
???????? On Wednesday, the Fed kept rates at their current level, a range of 5.25 to 5.50%, but forecasts an additional increase by the end of 2023.
If the Fed did not opt for an increase during its meeting, it still “surprised by its offensive side by indicating that it might further increase interest rates this year”, continues Mr. Staunovo.
Investors’ risk aversion benefits safe haven assets like the dollar, and weighs on risky assets like oil, which are more volatile.
However, the price of black gold being denominated in greenbacks, an appreciation of the American currency discourages oil purchases by reducing the purchasing power of buyers using foreign currencies, while a weaker dollar strengthens demand .
(c) AFP
Comment Oil rises, Russia restricts its exports of gasoline and diesel
Community barrel price
1695331924
#Oil #rises #Russia #restricts #exports #gasoline #diesel
