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GAP CEO Dixon: Consumers are expected to return to shopping malls and physical stores.German Chancellor Merz: We are at the most critical moment in the coming weeks and months to defend the peace and freedom of our continent.On September 14th, a trade source stated that Qatar Energy has issued a tender to sell Al-Shaheen, Qatar Marine, and Qatar Land crude oil products at FOB prices from its Qatari ports located behind the Strait of Hormuz, with shipments scheduled for October and November. The source indicated that Qatar Energy intends to sell 500,000 barrels per day, but the total sales volume for this tender has not yet been disclosed. Furthermore, the tender closes on Tuesday.On September 14, local time, Russian Presidential Press Secretary Dmitry Peskov responded to US President Donald Trumps demand that Ukraine cease its attacks on Russian fuel facilities to ensure supplies at a regular briefing. Peskov stated that Russia currently maintains a ban on the export of petroleum products to stabilize domestic supplies. Against the backdrop of escalating tensions in the Persian Gulf, this measure has a significant impact on international markets. The lifting of the export ban will only be considered after the Russian domestic market recovers. When asked whether Trumps demand was a positive step towards resolving the conflict, Peskov said that any initiative calling on the Kyiv regime to stop attacking civilian economic infrastructure should be welcomed. When asked whether Russia was also prepared to avoid attacking some of Ukraines economic infrastructure if Ukraine agreed to Trumps demand, Peskov declined to answer.NATO Secretary General Rutte: The attack on the Ukrainian train shows how desperate Putin has become.

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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