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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKpler: There's no confidence in any bullish signals being flashed in the energy marketsViktor Katona of Kpler discusses why oil prices are trading at 1-year lows, even amid ongoing supply issues, and the loosening of more COVID restrictions in China, the world's largest oil importer.
EU officials have agreed to set a price cap on Russian oil at $60 a barrel. Starting Monday, seaborne imports of Russian oil into the EU will be banned, as will European insurance and shipping services for vessels carrying Russian oil anywhere in the world. How would the oil price cap work? At the same time, the EU, G7 member countries, and Australia are participating in the price cap on Russian oil. But the EU ban on Russian oil supersedes a price cap, Energy Aspects analyst Amrita Sen has pointed out.
Russia is sending an ice-breaking tanker of oil to China via the Arctic Circle, Bloomberg data shows. It could open up a quicker route to Asia, with an EU ban on seaborne Russian oil due next month. Its crude oil shipments to the region have already plunged 60% since its February invasion of Ukraine. The measure will bar EU tankers from transporting Russian oil — meaning deliveries to alternative buyers in India, for example, will take 10 times as long. Like India, China has been snapping up Russian crude sold at a discount as Moscow seeks alternative buyers to its European market.
Ships are lingering in Spanish waters because they are unable to unload LNG, Kpler told Insider. LNG storage tanks in Spain are filling up fast. Seven ships are currently lingering in the Bay of Cadiz located in the Southwestern Spain, as they wait to unload at the Huelva terminal, energy data provider Kpler told Insider. The ships waiting in Spain are being hotly discussed in the energy circles, Viktor Katona, an energy analyst at Kpler said. That's because Spain has Europe's largest network for six LNG regasification terminals — facilities that turn the liquefied fuel back to gas — said Katona.
Sri Lanka has been buying large amounts of Russian crude since March 2022. Three months ago, Sri Lanka said it was sending an official delegation to Russia to negotiate oil deals amid a crippling fuel shortage. But it's just one of the emerging markets dealing with economic crises now lining up to buy discounted Russian oil. It's unlikely that Sri Lanka had ever purchased Russian crude before March this year, Kpler's lead crude analyst Viktor Katona said. The US has banned Russian crude and the European Union set to implement an oil embargo on Russian oil by the end of the year.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThere's a 'decoupling of trends' between the oil and larger commodity markets, says analystViktor Katona of Kpler says "the macroeconomic data is just killing the oil prices."
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