EUR/USD 1.15323
-0.221%
Gold 4226.97
-6.100%
Oil 98.994
2.089%
USD/JPY 159.395
0.062%
GBP/USD 1.33098
-0.176%
GBP/JPY 212.156
-0.114%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On March 23, local time, Alexander Drozdenko, governor of Leningrad Oblast, Russia, said on social media that an oil depot at the port of Primorsk in Leningrad Oblast was attacked by a drone and caught fire in the early hours of the day. Workers were evacuated, and the fire is still burning. Drozdenko said that more than 60 drones have been destroyed in the skies over Leningrad Oblast in less than a day. The press office of Pulkovo Airport in St. Petersburg reported that 62 flights were canceled and 80 flights were delayed due to the drone attack threat. Takeoffs and landings gradually resumed from 9:00 AM local time on March 23. The Russian Federal Aviation Administration stated that it will continue to monitor the situation at airports in northwestern Russia to ensure flight safety.March 23 - United Airlines CEO Scott Kirby stated that the companys worst-case scenario is that oil prices rise to $175 per barrel and do not fall back below $100 by the end of next year. High oil prices could lead to a reduction in air capacity, and several airlines have already begun cutting flight frequencies.Indian Prime Minister Modi: India has strategic oil reserves of more than 5.3 million tons.The yield on UK two-year government bonds rose to its highest level since November 2023, reaching 4.685%, up nearly 11 basis points on the day.On March 23, according to the current pricing mechanism, the domestic prices of gasoline and diesel should have increased by 2,205 yuan and 2,120 yuan per ton respectively. However, to mitigate the impact of the abnormal rise in international oil prices, reduce the burden on downstream users, and ensure stable economic operation and social welfare, the National Development and Reform Commission has implemented temporary price control measures for domestic refined oil products while maintaining the existing pricing mechanism framework. After the adjustment, the price increases will be reduced by 1,045 yuan and 1,005 yuan per ton respectively, equivalent to a reduction of approximately 0.85 yuan per liter on average nationwide for gasoline and diesel. Based on a 50-60 liter fuel tank, filling up a tank after the adjustment will save 40-50 yuan. If international crude oil prices continue to rise sharply, what other control measures will the government take? Experts suggest that to stabilize supply, the government may implement some fiscal and tax support policies.

Oil costs increase as supply restrictions trump economic worries

Charlie Brooks

Jul 05, 2022 11:12


Oil prices climbed on Monday as supply worries spurred by a decrease in OPEC production, unrest in Libya, and sanctions against Russia trumped fears of a worldwide recession that would diminish demand.


In June, Euro zone inflation hit an all-time high, boosting the case for rapid rate rises by the European Central Bank, while consumer sentiment in the United States reached an all-time low.


Brent oil rose $2.26, or 2%, to $113.89 a barrel as of 12:47 p.m. ET (1648 GMT), after shedding more than $1 in early trading. The price of U.S. West Texas Intermediate (WTI) crude rose $2.20, or 2%, to $110.63 despite the lack of trading activity over the Fourth of July holiday.


According to a Reuters survey, the Organization of the Petroleum Exporting Countries (OPEC) failed to meet its June goal of increasing production.


Thursday, authorities in OPEC member Libya declared force majeure at the Es Sidr and Ras Lanuf ports and the El Feel oilfield, claiming a reduction of 865,000 barrels per day in oil output (bpd).


Meanwhile, more than two weeks of unrest have caused Ecuador to lose almost 2 million barrels of production, according to Petroecuador, the country's state-owned oil company.


This week, a strike in Norway may restrict supply from the biggest oil producer in Western Europe and reduce overall petroleum production by 8 percent.


"This background of rising supply interruptions clashes with a probable shortage of spare production capacity among Middle Eastern oil producers," said Stephen Brennock of oil trader PVM, referring to the producers' limited ability to pump more oil.


And prices will climb if new oil production does not reach the market shortly.


On Monday, British Prime Minister Boris Johnson asked OPEC+ to raise oil output to tackle the growing cost of living.


As a consequence of Russia's invasion of Ukraine, supply concerns have sent Brent oil prices close to 2008's record high of $147 a barrel.


As a consequence of restrictions on Russian oil and limited gas supplies, surging energy prices have driven inflation in certain countries to multi-decade highs and stoked fears of a recession.


Suggestion