Oil prices are under pressure as China considers Russia crude

China has added somewhat downward pressure on oil prices this week, while it has clearly signaled its intention to buy more discounted Russian oil. Between China and India, Russia is running to pivot towards Asia as the European Union seeks to push its oil.

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Friday, May 20, 2022

Until now, it was India whose huge discounted Russian crude crude buying markets speculated on whether Moscow could pull a massive pivot in Asia. Yet this week, as it was headlined in China, Beijing began direct government-to-government talks on buying discounted crude crude to “replenish strategic stocks.” This, despite the prospect of an impending Chinese re-opening, added some downward pressure on oil prices as ICE Brent tended to hover around $ 112 per barrel on Friday.

The EU has launched a $ 220 billion drive to free Russian fossil fuels. The European Commission has unveiled its 20 220 billion plan to end Russia’s dependence on fossil fuels by 2027, including $ 120 billion for new renewable projects, $ 30 billion for power grids and $ 59 billion for energy storage and heat pumps.

The United States will ease sanctions on Venezuela. The Biden administration plans to allow European companies still operating in Venezuela to move more oil across the continent, while the U.S. oil chief Chevron (NYSE: CVX) Negotiations will be allowed to resume activities in Latin American countries.

Moscow says high price trigger tariffs. Russia’s top authorities have claimed that the US proposal to impose tariffs on Russian oil would force buyers to pay higher prices because the tariff price would be set at a final price.

The United Nations has called for a global end to energy subsidies. UN Secretary-General Antonio Guterres has called on all governments to stop fossil fuel subsidies, which have reached $ 500 billion worldwide, before increasing COP27 pressure on polluters ahead of the COP27 climate conference in Egypt in November.

ADNOC has announced the biggest discovery of the year. The UAE’s national oil company, ADNOC, has announced three oil discoveries totaling 650 million barrels, the largest of which has expanded the reserves of the coastal Bu Hasa field by 500 million barrels, which could mean more murban exports in the coming years.

Russian crude mop-up plan for China strategic stock. According to a Bloomberg report, the Chinese government is in direct talks with Russian authorities to begin purchasing crude surplus supplies that will be used to replenish China’s strategic inventories.

Occurs offshore in the offshore Columbia block. Colombia’s state-controlled oil company Ecopatrol (NYSE: ECO) Has announced that it is teaming up with the US oil chief Occidental (NYSE: OXY) To create four deep water blocks in Offshore Columbia, the latter acts as the block operator.

Shell’s offshore Brazil fails to impress wild cats. Three exploration wells have been drilled by the UK oil chief Shell (LON: SHEL) Brazil’s three offshore blocks, costing more than $ 1 billion, have all dried up, another setback for the country after Exxon’s failed $ 1.6 billion drilling drive.

ADNOC will create new giant LNG facility. The UAE’s national oil company ADNOC has announced that it will build a new LNG facility in Fujairah with a capacity of 9.6 million tons per year, more than double the country’s current 5.8 MTPA capacity after the planned liquefaction plant is commissioned in 2027.

Iron ore upward on China mortgage rate cut. With China unexpectedly lowering its 5-year debt prime rate by 15 basis points to 4.45%, China’s iron ore futures have risen sharply in anticipation of a quick revival in construction activity, with the June deal rising 6% to 7 127 / mt today.

ExxonMobil sells Barnett Shell assets for $ 750 million. In a widely anticipated move, U.S. oil major XNomobile (NYSE: XOM) Thai-owned producer BKV has sold its Barnet Shale gas assets to the corporation for $ 750 million, thanks to a natural gas price environment of more than মূল্য 500 million valued last year.

Iraq wants legal action to bring Kurdistan under control. The Iraqi Ministry of Oil has reportedly appointed law enforcement agencies Cleary Gottlieb Stein and Hamilton to liaise with oil and gas firms operating in Iraqi Kurdistan to review their contracts and bypass their KRG to comply with applicable Iraqi law.

Half of Russian gas buyers open new bank accounts. Russia’s deputy prime minister says half Gazprom’s (MCX: GAZP) European gas buyers have opened accounts in Gazprombank in foreign currency and in rubles, possibly signaling a new approach to EU-Russia stagnation.

Vital can stay in Mexico after naming the bribe takers. Global trading house Vitale could continue to operate in Mexico, according to the country’s president, AMLO, who was named in 2015-2020 for allegedly taking bribes and possibly paid $ 30 million in damages.

By Tom Cool for Oilprice.com

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