New York Mercantile Exchange futures fell nearly $ 8 to just $ 106 a barrel on Monday. The markets sold out after authorities in Shanghai said they would lock half the city in rotation for mass Covid-19 tests. Prices remained lower even after OPEC + indicated it was likely to stick to plans for a modest bid increase at their meeting on Thursday. “Oil demand in China is about 15 million barrels a day,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “The size of the sale reflects fears that Covid lockdowns in China could spread, significantly affecting demand at a time when the oil market is struggling to find alternatives to Russian oil supplies.” The traders added that in the wake of the historic instability, many market participants are simply covering their positions, keeping liquidity at the lowest level in recent years and leading to excessive moves for any news. As compensators become more time consuming and costly, it could disrupt crude oil deliveries in the real world if the situation does not improve. Russia’s invasion of Ukraine continues to disrupt the availability of basic goods, increasing inflationary pressures on the world economy. Despite the sell-off of the day, oil is still heading for a fourth month of profits, as the narrow market is exacerbated by the avoidance of Russian supplies by buyers. The country’s exports from March 17 to 23 fell by more than a quarter compared to the previous week, according to industry data. On Monday, UAE Energy Minister Suhail Al-Mazrouei said no additional supplies of argon would be added if the market is balanced and resources are in the market. If no changes are made, the cartel will validate an increase of 430,000 barrels per day for the month of May, as previously announced. Prices
WTI for May delivery fell $ 7.94 to $ 105.96 a barrel in New York Brent lost $ 8.17 a barrel in May settlement to $ 112.48 a barrel
Concerns about demand are beginning to emerge as the virus spreads to China. Shanghai – a city of 25 million – will first lock areas east of the Huangpu River, which includes its financial district and industrial parks, for four days from Monday. The restrictions will then be moved west of the city for another four days, according to a local government announcement.
A temporary cessation of hostilities by Yemen’s Houthis against Saudi Arabia also helped cut oil prices on Monday. The group’s guerrilla leader announced a three-day ceasefire on Saturday following an escalation of attacks on key Saudi infrastructure last week, according to a television report. The United States, meanwhile, has said a resumption of a nuclear deal with Iran is not imminent following recent demands by Tehran to remove the Islamic Revolutionary Guard Corps from the list of terrorist organizations. Iran is an ally of Russia and its war in Ukraine also complicates negotiations. Related coverage:
Canada’s sand will play a major role in the government’s commitment to boost crude and gas exports by 300,000 barrels a day this year to offset Russian supplies, according to the industry-leading trade body. Compensating for oil is becoming more costly and time consuming as liquidity shrinks in the futures market, slowing trade and threatening to disrupt real-world deliveries if the situation does not improve. Shell Plc is restricting the delivery of regular petrol to petrol stations in the Hamburg area, according to a person familiar with the matter.
title: “Oil Retreats As China S Covid Resurgence Imperils Demand Outlook " ShowToc: true date: “2022-11-06” author: “Eugene Hill”
New York Mercantile Exchange futures fell nearly $ 8 to just $ 106 a barrel on Monday. The markets sold out after authorities in Shanghai said they would lock half the city in rotation for mass Covid-19 tests. Prices remained lower even after OPEC + indicated it was likely to stick to plans for a modest bid increase at their meeting on Thursday. “Oil demand in China is about 15 million barrels a day,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “The size of the sale reflects fears that Covid lockdowns in China could spread, significantly affecting demand at a time when the oil market is struggling to find alternatives to Russian oil supplies.” The traders added that in the wake of the historic instability, many market participants are simply covering their positions, keeping liquidity at the lowest level in recent years and leading to excessive moves for any news. As compensators become more time consuming and costly, it could disrupt crude oil deliveries in the real world if the situation does not improve. Russia’s invasion of Ukraine continues to disrupt the availability of basic goods, increasing inflationary pressures on the world economy. Despite the sell-off of the day, oil is still heading for a fourth month of profits, as the narrow market is exacerbated by the avoidance of Russian supplies by buyers. The country’s exports from March 17 to 23 fell by more than a quarter compared to the previous week, according to industry data. On Monday, UAE Energy Minister Suhail Al-Mazrouei said no additional supplies of argon would be added if the market is balanced and resources are in the market. If no changes are made, the cartel will validate an increase of 430,000 barrels per day for the month of May, as previously announced. Prices
WTI for May delivery fell $ 7.94 to $ 105.96 a barrel in New York Brent lost $ 8.17 a barrel in May settlement to $ 112.48 a barrel
Concerns about demand are beginning to emerge as the virus spreads to China. Shanghai – a city of 25 million – will first lock areas east of the Huangpu River, which includes its financial district and industrial parks, for four days from Monday. The restrictions will then be moved west of the city for another four days, according to a local government announcement.
A temporary cessation of hostilities by Yemen’s Houthis against Saudi Arabia also helped cut oil prices on Monday. The group’s guerrilla leader announced a three-day ceasefire on Saturday following an escalation of attacks on key Saudi infrastructure last week, according to a television report. The United States, meanwhile, has said a resumption of a nuclear deal with Iran is not imminent following recent demands by Tehran to remove the Islamic Revolutionary Guard Corps from the list of terrorist organizations. Iran is an ally of Russia and its war in Ukraine is also complicating the negotiations. Related coverage:
Canada’s sand will play a major role in the government’s commitment to boost crude and gas exports by 300,000 barrels a day this year to offset Russian supplies, according to the industry-leading trade body. Compensating for oil is becoming more costly and time consuming as liquidity shrinks in the futures market, slowing trade and threatening to disrupt real-world deliveries if the situation does not improve. Shell Plc is restricting the delivery of regular petrol to petrol stations in the Hamburg area, according to a person familiar with the matter.
