Latest news with #Rystad
Zawya
a day ago
- Business
- Zawya
Oil set for steepest weekly decline in two years as risk subsides
Oil prices rose on Friday though were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate. Brent crude futures rose 50 cents, or 0.7%, to $68.23 a barrel by 1036 GMT while U.S. West Texas Intermediate crude gained 49 cents, or nearly 0.8%, to $65.73. During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after U.S. President Donald Trump announced an Iran-Israel ceasefire. That put both contracts on course for a weekly fall of about 12%. "The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market," said Rystad analyst Janiv Shah. "The market also has to keep eyes on the OPEC+ meeting – we do expect room for one more month of an accelerated unwinding basis balances and structure, but the key question is how strong the summer demand indicators are showing up to be." The OPEC+ members will meet on July 6 to decide on August production levels. Prices were also being supported by multiple oil inventory reports that showed strong draws in the middle distillates, said Tamas Varga, a PVM Oil Associates analyst. Data from the U.S. Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising. Meanwhile, data on Thursday showed that the independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week. Additionally, China's Iranian oil imports surged in June as shipments accelerated before the conflict and demand from independent refineries improved, analysts said. China is the world's top oil importer and biggest buyer of Iranian crude. It bought more than 1.8 million barrels per day (bpd) of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data. (Reporting by Siyi Liu in Singapore and Nicole Jao in New York; Editing by Jamie Freed, Elaine Hardcastle and David Evans)
Business Recorder
a day ago
- Business
- Business Recorder
Oil set for steepest weekly decline in two years as risk subsides
LONDON: Oil prices rose on Friday though were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate. Brent crude futures rose 50 cents, or 0.7%, to $68.23 a barrel by 1036 GMT while US West Texas Intermediate crude gained 49 cents, or nearly 0.8%, to $65.73. During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after US President Donald Trump announced an Iran-Israel ceasefire. That put both contracts on course for a weekly fall of about 12%. 'The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market,' said Rystad analyst Janiv Shah. Oil climbs as investors shift focus to demand signals 'The market also has to keep eyes on the OPEC+ meeting – we do expect room for one more month of an accelerated unwinding basis balances and structure, but the key question is how strong the summer demand indicators are showing up to be.' The OPEC+ members will meet on July 6 to decide on August production levels. Prices were also being supported by multiple oil inventory reports that showed strong draws in the middle distillates, said Tamas Varga, a PVM Oil Associates analyst. Data from the US Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising. Meanwhile, data on Thursday showed that the independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week. Additionally, China's Iranian oil imports surged in June as shipments accelerated before the conflict and demand from independent refineries improved, analysts said. China is the world's top oil importer and biggest buyer of Iranian crude. It bought more than 1.8 million barrels per day (bpd) of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data.
Asharq Al-Awsat
a day ago
- Business
- Asharq Al-Awsat
Oil Set for Steepest Weekly Decline in Two Years as Risk Subsides
Oil prices rose on Friday though were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate. Brent crude futures rose 50 cents, or 0.7%, to $68.23 a barrel by 1036 GMT while US West Texas Intermediate crude gained 49 cents, or nearly 0.8%, to $65.73. During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after US President Donald Trump announced an Iran-Israel ceasefire. That put both contracts on course for a weekly fall of about 12%. "The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market," said Rystad analyst Janiv Shah. "The market also has to keep eyes on the OPEC+ meeting – we do expect room for one more month of an accelerated unwinding basis balances and structure, but the key question is how strong the summer demand indicators are showing up to be." The OPEC+ members will meet on July 6 to decide on August production levels. Prices were also being supported by multiple oil inventory reports that showed strong draws in the middle distillates, said Tamas Varga, a PVM Oil Associates analyst. Data from the US Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising. Meanwhile, data on Thursday showed that the independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week. Additionally, China's Iranian oil imports surged in June as shipments accelerated before the conflict and demand from independent refineries improved, analysts said. China is the world's top oil importer and biggest buyer of Iranian crude. It bought more than 1.8 million barrels per day (bpd) of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data.
Canada News.Net
a day ago
- Business
- Canada News.Net
China warming to new Russian mega gas pipeline WSJ
The Israel-Iran conflict has renewed Beijings interest in Power of Siberia 2, according to the outlet China's interest in the construction of Russia's proposed Power of Siberia 2 pipeline, which would deliver gas via Mongolia, has intensified following the outbreak of the conflict between Iran and Israel, the Wall Street Journal reported on Tuesday, citing sources in Beijing. The planned mega pipeline would allow up to 50 billion cubic meters (bcm) of natural gas to be delivered annually from northern Russia to China via Mongolia. The report said that the recent Iran-Israel conflict has raised concerns within the Chinese government about the reliability of oil and gas supplies from the Middle East, prompting policymakers to explore alternative energy sources. China imports about 30% of its gas as LNG from Qatar and the UAE through the Strait of Hormuz - a route for about 20% of the world's oil - which Iran has threatened to close in response to the US strikes. Chinese "teapot" refineries have also grown reliant on discounted Iranian crude, with analysts estimating that over 90% of Tehran's oil exports now go to China - despite US sanctions aimed at curbing the country's oil sales abroad. "The escalation of the Middle East tensions underscores the severe consequences of a potential blockade in the Strait of Hormuz," Wei Xiong, head of China gas research at Rystad told the outlet. A blockade of the chokepoint could trigger a major shift in Beijing's LNG supply, with the country "moving from being over-contracted to supply deficit." Even with a ceasefire, the recent conflict has prompted Beijing to seek alternative energy sources, according to analysts and officials. China is also looking to increase oil imports from Russia, which already supplies about a fifth of its crude to its neighbor. Moscow, in turn, is pursuing the project as it seeks to diversify its energy export markets amid Western sanctions and reduced European demand. The Power of Siberia 2 pipeline is seen in Beijing as a strategic move to further diversify supplies and strengthen energy security in the face of rising geopolitical uncertainty, the report says. "The volatility and unpredictability of the military situation have shown the Chinese leadership that a stable land-based pipeline supply has geopolitical benefits," the outlet cited Aleksander Gabuev, the director of the Carnegie Russia Eurasia Center and an expert on China-Russia relations, as saying. "Russia could benefit from that." China is seeking closer ties with Russia as the White House signals efforts to drive a wedge between the two nations, according to sources familiar with Beijing's policymaking. Economic cooperation has continued to grow despite sweeping Western sanctions, with bilateral trade reaching a record $245 billion in 2024.
Russia Today
3 days ago
- Business
- Russia Today
China warming to new Russian mega gas pipeline
China's interest in the construction of Russia's proposed Power of Siberia 2 pipeline, which would deliver gas via Mongolia, has intensified following the outbreak of the conflict between Iran and Israel, the Wall Street Journal reported on Tuesday, citing sources in Beijing. The planned mega pipeline would allow up to 50 billion cubic meters (bcm) of natural gas to be delivered annually from northern Russia to China via Mongolia. The report said that the recent Iran-Israel conflict has raised concerns within the Chinese government about the reliability of oil and gas supplies from the Middle East, prompting policymakers to explore alternative energy sources. China imports about 30% of its gas as LNG from Qatar and the UAE through the Strait of Hormuz – a route for about 20% of the world's oil – which Iran has threatened to close in response to the US strikes. Chinese 'teapot' refineries have also grown reliant on discounted Iranian crude, with analysts estimating that over 90% of Tehran's oil exports now go to China – despite US sanctions aimed at curbing the country's oil sales abroad. 'The escalation of the Middle East tensions underscores the severe consequences of a potential blockade in the Strait of Hormuz,' Wei Xiong, head of China gas research at Rystad told the outlet. A blockade of the chokepoint could trigger a major shift in Beijing's LNG supply, with the country 'moving from being over-contracted to supply deficit.' Even with a ceasefire, the recent conflict has prompted Beijing to seek alternative energy sources, according to analysts and officials. China is also looking to increase oil imports from Russia, which already supplies about a fifth of its crude to its neighbor. Moscow, in turn, is pursuing the project as it seeks to diversify its energy export markets amid Western sanctions and reduced European demand. The Power of Siberia 2 pipeline is seen in Beijing as a strategic move to further diversify supplies and strengthen energy security in the face of rising geopolitical uncertainty, the report says. 'The volatility and unpredictability of the military situation have shown the Chinese leadership that a stable land-based pipeline supply has geopolitical benefits,' the outlet cited Aleksander Gabuev, the director of the Carnegie Russia Eurasia Center and an expert on China-Russia relations, as saying. 'Russia could benefit from that.' China is seeking closer ties with Russia as the White House signals efforts to drive a wedge between the two nations, according to sources familiar with Beijing's policymaking. Economic cooperation has continued to grow despite sweeping Western sanctions, with bilateral trade reaching a record $245 billion in 2024.
