LAST UPDATE 11:50
Oil prices continue to rise amid falling supply and the prospect of new Western sanctions on Russia, even after signs of progress emerged from the Moscow-Kiev peace talks, while gas comes under renewed tensile pressure. for payments in rubles.
In particular, brent futures see their price rise to $ 111.73 a barrel, up 1.71 cents or 1.55%, after losing 2% yesterday.
US West Texas Intermediate was up $ 1.8, or 1.78%, at $ 106.11 a barrel, after falling 1.6% on Tuesday.
“Fluctuating prices show an extremely sensitive climate among investors,” said Haitong Futures analysts. “People urgently need to see changes to make the market clearer.”
The focus is now on reduced supplies, as the American Petroleum Institute announced that crude stockpiles fell by 3 million barrels per week by March 25.
The drop was three times what analysts had expected.
The market experienced a strong selloff in the previous meeting, after Russia promised to reduce military operations near Kiev, but the attacks continue, according to reports.
Commonwealth Bank analyst Tobin Gorey says the price recovery suggests that the oil market, at least, has a strong degree of skepticism about any “progress.”
Meanwhile, the United States and its allies are planning new sanctions on several sectors of the Russian economy that are critical to sustaining its invasion of Ukraine, including military supply chains.
Keeping the market “tight”, major oil producers are unlikely to increase production beyond the agreed 400,000 barrels per day when OPEC + meets on Thursday.
New jump for gas amid tensions for rubles
At the same time, gas prices have risen again as the West-Russia dispute escalates, following Moscow’s decision to demand that contract payments be made in rubles.
In particular, the price of the contract in Amsterdam (TTF) marks a strong increase of 14.1% or 13.7 euros and is moving at 123.75 euros per megawatt hour, while last week it had fallen in the area of ​​100 euros.
Germany warned today that it could lead to a gas emergency, a measure designed to counter a possible cut-off of gas supplies from Russia.
Economy Minister R. Habeck said supplies were secured for the time being, but stressed that “” Nevertheless, we need to increase precautionary measures to be prepared for an escalation on the part of Russia. ”
At the same time in Moscow, the speaker of the State Duma, lower house of the Russian parliament, Vyacheslav Volodin, today warned the EU that if it wants to import gas, it will have to pay in rubles.
It is recalled that yesterday, Tuesday, the G7 energy ministers rejected this request, while the President of France Emanuel Macron clarified to his Russian counterpart that such a thing would be impossible.
Source: Capital
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