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Sources say Mexico is assessing whether to halt oil shipments to Cuba due to fears of U.S. retaliation.Iran’s international internet service will be fully restored within the next 24 hours.On January 24th, Politico, citing three sources familiar with the matter, reported that the Trump administration is weighing new measures to push for regime change in Cuba, including a complete blockade of oil imports from the Caribbean nation. Two of the sources indicated that this escalation was pushed by some within the administration who are critical of the Cuban government and has the support of Secretary of State Rubio. No decision has yet been made on whether to approve the measure, but they added that it could be included in a package of options presented to Trump aimed at forcing the Cuban government to step down. Blocking crude oil shipments to Cuba would go further than Trumps statement last week, when he said the U.S. would block Cuba from importing oil from Venezuela, which has previously been Cubas main crude oil supplier.According to Politico: The Trump administration is considering imposing a maritime blockade to prevent Cuba from importing oil.On January 24th, local time, delegations from Russia, the United States, and Ukraine began negotiations in Abu Dhabi, United Arab Emirates, on the 23rd. The first round of talks was held behind closed doors and not open to the media. Ukrainian President Volodymyr Zelenskyy stated in his evening video address on the 23rd that the three delegations were in talks, with the Ukrainian delegation providing him with updates almost hourly. Zelenskyy pointed out that this trilateral meeting was very important because such a format of trilateral talks had not been seen for a long time. Zelenskyy stated that the current focus of the negotiations was on the specific conditions for ending the conflict. He indicated that Ukraines position was clear, and he had already established a framework for dialogue for the delegations.

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.


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