Brent Crude breaches $112 mark; highest in 8 years after Russia sanctions | International Business News

Singapore: Oil producers hit high prices and spread signals across many key markets such as damage from harsh sanctions on Russia’s major oil company .

The oil industry has been hit by a huge financial crisis and moving parts after many countries including the United States have taken over Russian companies following Russia’s invasion of Ukraine, although Washington has publicly excluded energy products from Russian action.

Brent crude lifted $ 112 a barrel on Thursday, the highest since 2014, turning off reports that several developed countries plan to release a record 60 million barrels of oil reserves to tariffs cold.

Nuclear crude oil market destruction

The price spread for Brent’s delivery between now and 12 months is $ 21.54 a barrel, the highest on record, while Brent premium to Dubai – the price spread between sweet and sour desserts – hit an all-time high of $ 12.93 a barrel on Wednesday, a trader said.

That has led to demand for the Middle East crude, with dream rates rising to seasonal highs in early March, more than 50% from last month.

Widespread distribution among regulators with freight rates for international oil tankers has also made it more expensive for Asian buyers to buy oil from Europe, Africa and the United States, reducing their options.

Middle East crude oil prices

Reforms in Asia and Europe are expected to seek more supplies from the Middle East and the United States to replace crude from Russia and Central Asia, the sources said, especially as labor sales tariffs for Saudi crude are set to hit. high in April.

“Freight rates for the Middle East to Asia are very high, so it depends on which is more painful,” said a Singaporean businessman.

“Terror is growing everywhere, with Brent-Dubai being too wide. To some extent Asia will be affected.”

Russian oil buyers face problems in financial security as major banks stop issuing credit loans. Russia’s Urals crude oil price to Brent is wide open ever, while profits for Russian ESPO and Sokol crudes exported to Asia have dropped.

Eastern European crudes look at the cost of living after the Russian invasion of Ukraine, Western sanctions

International freight rates for oil tankers have also jumped, especially for those calling at ports in the Black Sea and Turkey, which could lead to the disruption of CPC Blend exports from Kazakhstan and Azeri Light from Azerbaijan.

Trading companies will be able to use long-term contracts to transport these cargo, an oil trader in Singapore said.

“The boat owners are getting the ball,” he said.

Oil tanker rates increase from Black Sea & Baltic Sea after Russia takes control of Ukraine attack

Cut from their regular supply sources, Asia and Europe are likely to import imports from the US, traders and analysts say.

However, supplies of US Mars and West Texas Intermediate crude for May delivery were more than tripled to $ 14 and $ 16 a barrel above Dubai rumors respectively, traders said, citing Asian buyers.

“Brent’s recent geopolitically-related study in relation to WTI means that the North American landscape has been tightened in order to close the door to exports, given that US balances are stable, especially with Cushing approaching the the foundation is running, ”RBC Capital analyst Mike Tran said in a statement.

Crude stocks in Cushing, Oklahoma, storage facilities have fallen to their lowest since September 2018.

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