Oil: Tanker rates decrease – ING

Oil prices recorded their first weekly decline of the year with ICE Brent closing last week just over 2.8% lower. And this downward pressure has continued in early trading this morning. The tariff story has become a growing concern for the market. This is particularly the case after the Trump administration imposed 25% tariffs on Colombia, which will rise to 50% within a week after Colombia refused entry to two US military planes attempting to deport illegal immigrants, subject analysts say. cousins ​​of ING, Warren Patterson and Ewa Manthey.

Sanctions do not have much impact on Russian oil exports

“The Colombian government has retaliated with the president ordering similar 25% tariffs. Colombia is the fourth largest supplier of crude oil to the US, exporting just over 200k b/d. Colombia’s key export grades are heavier crudes, so refiners on the US Gulf Coast will have to find alternatives or face higher costs. The strength of the USD after this rally will also be providing headwinds to the oil and raw materials complex in the US. general.”

“Putting further pressure on oil are signs that the latest US sanctions may not be having a significant impact on Russian oil exports. Tanker rates appear to be coming down from their recent highs following the announcement of sanctions against Russia, suggesting that Russian oil continues to flow through the use of Russia’s shadow tanker fleet, even though a large part of this fleet is sanctioned.”

“The latest positioning data shows that speculators increased their net long position in ICE Brent by 8,533 lots during the last reporting week to 262,865 lots as of last Tuesday. While for NYMEX WTI, speculators increased their position net long from 20,195 lots to 250,887 lots as of last Tuesday, the largest position speculators have had since July.”

Source: Fx Street

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