Price Of Oil Rises Due To Supply Concerns Amid US Sanctions

The New Diplomat
Writer

Ad

Ranked: U.S. Crude Oil Imports by Country

Key Takeaways In 2024, 61.7% of America’s crude oil imports were from Canada. Meanwhile, Mexico accounted for 7.1% of crude oil imports. Crude imports make up about 40% of the oil that is refined in America, much of which is heavier crude compared to America’s light oil. For decades, America was a net importer of…

Alleged N85 Billion Nigeria Air fraud: Ex-Minister Sirika Debunks Allegations

By Abiola Olawale The immediate-past Minister of Aviation, Hadi Sirika has spoken on the controversies surrounding the Nigeria Air project, a national carrier initiative that sparked widespread criticism. Speaking during an interview with Channels TV on Wednesday, Sirika dismissed claims of fraud and mismanagement. Sirika, during the interview rejected allegations of fraud, claiming that Nigeria…

Alphabet surges after court rejects DOJ’s call to break up Google in antitrust case

By Obinna Uballa Alphabet shares jumped 6% in premarket trading on Wednesday after a United States court rejected the Department of Justice’s (DOJ) push to break up Google in a high-stakes antitrust case. The DOJ had proposed divesting Google’s Chrome browser and imposing strict restrictions after the company was found last year to hold an…

Ad

By Ken Afor

Friday saw a rise in oil prices following concerns as US sanctions on Russian crude exports raise concerns about supply in a competitive market.

Global inventories are expected to fall through the fourth quarter.

Brent futures increased by 50 cents, or 0.6%, to $86.50 per barrel, and U. S. At 0345 GMT, West Texas Intermediate (WTI) crude rose 64 cents, or 0.8 percent, to $83.55 per barrel.

Both contracts surged on Monday on the possibility of disruptions to Middle Eastern exports after Hamas’ attack on Israel over the weekend threatened a wider conflict.

Brent is expected to increase by 2.3 percent for the week, while WTI is expected to rise by 0.9 percent.

In the course of the week, prices partially reversed their gains.

However, on Thursday, the U. S. imposed the first sanctions on owners of tankers transporting Russian oil priced higher than the G7 price cap of $60 per barrel, to close gaps in the system intended to punish Moscow for its invasion of Ukraine.

The second-largest oil producer and major exporter in the world is Russia, and the more restrictive US supply could be limited if its shipments are scrutinized.

Also on Thursday, the Organization of the Petroleum Exporting Countries (OPEC) maintained its forecast for growth in global oil demand, citing indications of a resilient global economy thus far this year and anticipated future increases in demand in China, the biggest oil importer in the world.

“Supply side issues remained the focus in the crude oil market,” Daniel Hynes, senior commodity strategist at ANZ, said in a note on Friday, adding that prices during early trade on Friday rose on the stronger U.S. sanctions enforcement.

“Sentiment was also boosted after OPEC said it expects crude stockpiles to slump by 3 (million barrels per day) this quarter. That assumes that there are no further supply disruptions emanating from the Israel-Hamas war,” Hynes said.

Data released on Friday that showed a month-over-month decline in Chinese crude imports was ignored by oil prices.

The number of imports last month was 45.74 million metric tons, or 11.13 million barrels per day, which is a 10.5% decrease from the third-highest level ever recorded in August.

The trend seen through 2023, in which imports have significantly surpassed 2022 levels when China’s economy was severely hampered by widespread pandemic restrictions, was continued in September, when imports were up 14% from a year earlier.

Ad

X whatsapp