Oil rose, snapping a four-day losing streak, as traders assess mounting threats to Russian supply flows, from Ukrainian strikes on its enemy’s energy assets to a potential diesel-export ban.
West Texas Intermediate crude rose 1.8% to settle near $63, the biggest gain since early September. Russia is mulling banning diesel exports for some companies amid a spate of attacks by Ukrainian drones on Moscow’s oil refineries, including two latest overnight attacks on oil pipeline that caused gasoline and diesel futures to spiral on the nation’s key Spimex commodities exchange.
“If products are not able to be exported from Russia, there may be a short-term increase in crude exports as they refine less,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. “But that can only last so long before we see shut-ins.”
WTI’s prompt spread — the difference between its two closest contracts — closed at its strongest level in about two weeks, reflecting fears of a tightening global supply outlook.
Russian flows have been in the spotlight over the past few weeks amid global efforts to pressure Moscow to make peace in Ukraine by targeting its energy assets. Leaders including President Donald Trump and Canadian Prime Minister Mark Carney on Tuesday reiterated calls for Western allies to limit their intake of Moscow’s crude.
Capping the rally, Iraq may shortly resume exports via Kurdistan after a two-year halt over a payment dispute. That could see about 230,000 barrels a day return to international markets, according to people familiar with the matter.
A rapid return of shuttered barrels by the Organization of the Petroleum Exporting Countries and its allies, as well as increased production from outside the group has prompted market watchers including the International Energy Agency warn that supplies are set to top demand by a record margin.
Oil Prices
WTI for November delivery rose 1.8% to settle at $63.41 a barrel in New York.
Brent for November settlement climbed 1.6% to settle at $67.63 a barrel.
What do you think? We’d love to hear from you, join the conversation on the
Rigzone Energy Network.
The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.
element
var scriptTag = document.createElement(‘script’);
scriptTag.src = url;
scriptTag.async = true;
scriptTag.onload = implementationCode;
scriptTag.onreadystatechange = implementationCode;
location.appendChild(scriptTag);
};
var div = document.getElementById(‘rigzonelogo’);
div.innerHTML += ” +
‘
‘ +
”;
var initJobSearch = function () {
//console.log(“call back”);
}
var addMetaPixel = function () {
if (-1 > -1 || -1 > -1) {
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
} else if (0 > -1 && 64 > -1)
{
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
}
}
// function gtmFunctionForLayout()
// {
//loadJS(“https://www.googletagmanager.com/gtag/js?id=G-K6ZDLWV6VX”, initJobSearch, document.body);
//}
// window.onload = (e => {
// setTimeout(
// function () {
// document.addEventListener(“DOMContentLoaded”, function () {
// // Select all anchor elements with class ‘ui-tabs-anchor’
// const anchors = document.querySelectorAll(‘a .ui-tabs-anchor’);
// // Loop through each anchor and remove the role attribute if it is set to “presentation”
// anchors.forEach(anchor => {
// if (anchor.getAttribute(‘role’) === ‘presentation’) {
// anchor.removeAttribute(‘role’);
// }
// });
// });
// }
// , 200);
//});
