"New US sanctions targeting major Russia n oil companies, including state-owned Rosneft and Lukoil, drove the market to the upside. These measures are part of the Trump administration's strategy to pressure Russia regarding the conflict in Ukraine. The sanctions are expected to disrupt Russian exports, immediately tightening global supply and prompting key importers to reassess purchases. The latest EIA report data also supported the impact of the sanctions."
"The data revealed a surprise drawdown in US crude inventories, which fell by 1 million barrels. Combined with declining gasoline and distillate stocks, the data signal resilient demand in the US. However, this headline-driven move contrasts with an overall softer macro environment. While the sanctions provide a near-term shock, persistent concerns over structural oversupply and the ongoing strategy of OPEC+ to regain market share could cap the upside."
WTI crude traded above USD 60 per barrel as market prices extended a rebound. New US sanctions targeted major Russian oil companies, including state-owned Rosneft and Lukoil, to pressure Russia over the conflict in Ukraine. The sanctions are expected to disrupt Russian exports, tightening global supply and prompting key importers to reassess purchases. The EIA reported a surprise drawdown of 1 million barrels in US crude inventories, alongside declining gasoline and distillate stocks, signaling resilient US demand. Despite the near-term shock, a softer macro environment, structural oversupply concerns, and OPEC+'s strategy to regain market share could limit upside.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]