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Oil drops as Russian price cap proposal eases concerns about tight supply

Oil declined on Thursday, hovering around two-month lows, as the Group of Seven(G7) nations’ proposed range for a price cap on Russian oil was higher than current trading levels, alleviating concerns over tight supply. A greater-than-expected build in U.S. gasoline inventories and widening COVID-19 controls in China added to downward pressure. Brent crude futures dipped 50 cents, or 0.6%, to $84.91 a barrel by 0702 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell by 46 cents, or 0.6%, to $77.48 a barrel. Both benchmarks plunged more than 3% ...

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The Commodities Feed: G-7 price cap pressure

Energy- oil price cap talks The oil market came under further pressure yet again yesterday. ICE Brent settled more than 3.3% lower on the day to close just above US$85/bbl. The key catalyst for this move was a report that EU members were looking at setting the price cap on Russian crude oil at somewhere between US$65-70/bbl. This is above previous reports of around US$60/bbl. Importantly, this is also around price levels that Russia was already receiving, given the discount with which Urals trade to Brent. Therefore, if we do ...

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Crude oil: High level of “oil on water”

CIO still expect Brent prices to rebound above USD 100/bbl over the coming months as US strategic petroleum reserve (SPR) sales end, the European ban on Russian crude exports comes into force, and oil demand continues to rise. While US inventories of crude oil, refined products, and strategic oil reserves stand at the lowest level since 2004, oil on water—which includes oil transiting in tankers from producer to consumer and oil stored on a tanker (so-called floating storage)—has increased considerably in recent months. In our view, this build-up has been ...

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Russian oil price cap likely to divert trade to smaller businesses – Vitol

An imminentprice cap on Russian oil by G7 countries is likely to divert trade to smaller companies, the chief executive of Dutch energy and commodity trader Vitol, Russell Hardy, said on Wednesday. Larger corporates such as Western banks and insurance companies will not participate in the trades unless there is absolute clarity that the price of the contract is below the price cap, Hardy said at the FT Commodities Asia Summit in Singapore. So the challenge of redirecting leftover Russian oil that typically goes into Europe will be in the ...

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Ukraine war: How Germany ended reliance on Russian gas

When Vladimir Putin switched off the gas taps to Europe, Germany more than most feared a winter of blackouts. Ministers scrambled to secure alternative supplies, painfully aware that a heavy dependence on Russian gas had left this industrial nation woefully exposed. But fast forward a few months and, as lights sparkle in the Christmas markets, there is a sense of tentative optimism in the Glühwein spiced air. Germany’s hastily assembled strategy to manage without Russian gas appears – for now – to be working. “Energy security for this winter is ...

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Germany plans 33% windfall tax on gas, coal and oil firms – sources

The German government plans to introduce a special levy to skim off 33% of windfall profits made by oil, coal and gas companies, which could generate revenue of between one and three billion euros, finance ministry sources told Reuters. The levy, called “EU energy crisis contribution”, would affect a low double-digit number of companies, targeting their 2022 and 2023 profits, and would be implemented by the end of 2022, the sources added. Germany has been in talks over the levy at the European Union level and has examined several ways ...

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U.S. crude oil stocks in SPR fall to lowest level since March 1984 – EIA

U.S. crude stockpiles fell, but gasoline and distillate inventories both rose substantially, alleviating a bit of concern about market tightness, the Energy Information Administration said on Wednesday. Crude inventories fell by 3.7 million barrels in the week to Nov. 18 to 431.7 million barrels, compared with analysts’ expectations in a Reuters poll for a 1.1 million-barrel drop. The decline in inventories was tempered by another release of barrels from the U.S. Strategic Petroleum Reserve. The White House decided earlier this year to release 180 million SPR crude barrels after Russia’s ...

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Charts suggest the ‘mother of all buying opportunities’ for oil is coming next month, Cramer says

CNBC’s Jim Cramer said Tuesday that investors should gear up to buy oil next month, relying on charts analysis from Carley Garner. “She thinks there could be one last washout from this week, possibly early through December, and that washout could take crude down to the low $70s, or even the mid-$60s. Once we get there, she believes that could be the mother of all buying opportunities,” he said. West Texas Intermediate Crude futures, the U.S. benchmark for oil, saw wide swings this week after the Wall Street Journal reported ...

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G7 looking at Russian oil price cap of $65-70 per barrel – EU diplomat

The Group of Seven nations (G7) is looking at a price cap on Russian sea-borne oil in the range of $65-70 per barrel, a European Union diplomat said on Wednesday. Ambassadors from the 27 EU countries are discussing the G7 proposal with the aim of reaching a common position by the end of the day. The G7, including the United States, as well as the whole of the European Union and Australia, are slated to implement the price cap on sea-borne exports of Russian oil on Dec. 5, as part ...

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European Union executive proposes gas price cap at 275 euros/MWh

The European Union executive on Tuesday proposed a gas price cap for the bloc at 275 euros ($282) per megawatt hour for month-ahead derivatives on the Dutch exchange that serve as Europe’s benchmark. The idea to cap prices has divided EU countries for many months and diplomats said the level proposed on Tuesday was unlikely to be popular when energy ministers from the bloc’s 27 member countries debate it on Thursday. “We propose to put a ceiling on the TTF (Title Transfer Facility) gas price to protect our people and ...

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Oil slides 4% on Russian oil price cap talks, U.S. gasoline build

Oil prices fell more than 4% on Wednesday as the Group of Seven (G7) nations looked at a price cap on Russian oil above where it is currently trading and as gasoline inventories in the United States built by more than analysts’ expected. Brent futures for January delivery fell $3.80 to $84.56 a barrel, a 4.4% loss, by 12:19 p.m. ET (17:19 GMT). U.S. crude fell $3.73, or 4.6%, to $77.22 per barrel. Both contracts had risen by over $1/bbl earlier in the session. U.S. gasoline stocks rose by 3.1 ...

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U.S says G7 should soon unveil price cap level on Russian oil, adjust regularly

The Group of Seven nations should soon announce the price cap on Russian oil exports and the coalition will probably adjust the level a few times a year rather than monthly, a senior U.S. Treasury official said. The G7, including the United States, along with the EU and Australia are slated to implement the price cap on sea-borne exports of Russian oil on Dec. 5, as part of sanctions intended to punish Moscow for its invasion of Ukraine. The aim of the unprecedented price cap mechanism is to reduce Russia’s ...

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Russia’s Gazprom threatens to reduce gas transit via Ukraine from Nov 28

Russia’s Gazprom said Nov. 22 it would reduce gas supply entering Ukraine at the Sudzha entry point from Nov. 28 if an imbalance in volumes delivered via Ukraine to Moldova persists. Russian gas flows via Ukraine to customers in Europe and Moldova are currently only supplied via Sudzha at a rate of some 43 million cu m/d. However, Gazprom said in a statement that the volume of gas supplied for transit to Moldova exceeds the physical volumes actually arriving in Moldova. That implies that some gas meant for Moldova is ...

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Sinopec and QatarEnergy Ink Long-term LNG Deal

China Petroleum & Chemical Corporation and QatarEnergy have signed a long-term Liquified Natural Gas (LNG) purchase and sales agreement for the annual supply of four million tons of LNG to Sinopec. Both parties will work together on Qatar’s North Field Expansion Project (“the Project”). The 27-year long-term LNG purchase and sale agreement is an important part of the integrated cooperation between the two sides. Sinopec Chairman Ma Yongsheng and Qatari Minister of State for Energy Affairs, President and CEO of QatarEnergy, H.E. Saad Sherida Al-Kaabi, formally signed the agreement together ...

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UK oil and gas sector faces $24 billion bill to plug old wells -report

British North Sea oil and gas producers will spend around 20 billion pounds ($24 billion) on dismantling over 2,000 unused wells and facilities in the ageing basin over the next decade, an industry group said on Tuesday. The cost burden for plugging wells and removing platforms, in what is known as decommissioning, is set to rise sharply over the next three to four years as more fields stop production, Offshore Energies UK (OEUK) warned in a report. The growing bill coincides with British finance minister Jeremy Hunt’s decision last week ...

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