26 July (Argus) — Ice Brent crude futures rose in early Asian trading today as the US called for tighter sanctions enforcement against Russia.
At 04:00 GMT the Ice front-month September Brent contract was at $82.54/bl, higher by 17¢/bl from its settlement on 25 July when the contract ended 66¢/bl higher.
The Nymex front-month September crude contract was at $78.45/bl, up by 17¢/bl from its settlement on 25 July when the contract ended 69¢/bl higher.
US treasury secretary Janet Yellen called for stricter enforcement of the sanctions imposed against Russian oil exports. The G7 countries imposed a $60/bl price cap on Russian seaborne crude exports involving western shippers, trading firms and insurance providers. But Moscow has managed to also bypass the price cap on its exports by cutting out the western middlemen. Prices for Russian Urals cargoes shipped from Baltic ports have averaged about $67/bl so far this year.
Yellen fell short of announcing any specific actions but noted that the US is considering possible sanctions against Russian shipping firm Sovcomflot's fleet of tankers. The US to date has sanctioned 20 out of 120 tankers owned by Sovcomflot, with US sanctions experts calling for targeting more. The UK and 44 European countries plus the EU already announced plans to crack down on Russia's "shadow fleet" of oil tankers used to skirt international sanctions.
Slovakia's economy ministry warned that oil product exports to the Czech Republic and Ukraine could be affected if Ukraine's ban on Russian-origin crude transit through the Druzhba pipeline continues. Kyiv in late June extended its sanctions against Russian firm Lukoil to prohibit it from transporting crude through Ukrainian territory in the Druzhba pipeline system. The move has caused concern in Slovakia and Hungary, as the Russian company provides around 45pc of Slovakia's crude needs and around 33pc of Hungary's demand.
US refiner Valero warned that its refineries on the US west coast could face shutdowns because of rising costs. "The west coast clearly is the highest cost region we operate in," Valero chief executive Lane Riggs said on an earnings call. "That's probably one of the places that you would ultimately see some refinery closures, if it shakes out." Valero operates two west coast refineries — the145,000 b/d Benicia and 85,000 b/d Wilmington, both in the state of California.Since the 1980s, 29 refineries in California have been shut or integrated with other refineries that eventually closed, California Energy Commission data show. Others have been converted to renewable fuels production.
- Asia midday crude futures: Ice Brent edges up
26 July (Argus) — Ice Brent crude futures rose in early Asian trading today as the US called for tighter sanctions enforcement against Russia.
At 04:00 GMT the Ice front-month September Brent contract was at $82.54/bl, higher by 17¢/bl from its settlement on 25 July when the contract ended 66¢/bl higher.
The Nymex front-month September crude contract was at $78.45/bl, up by 17¢/bl from its settlement on 25 July when the contract ended 69¢/bl higher.
US treasury secretary Janet Yellen called for stricter enforcement of the sanctions imposed against Russian oil exports. The G7 countries imposed a $60/bl price cap on Russian seaborne crude exports involving western shippers, trading firms and insurance providers. But Moscow has managed to also bypass the price cap on its exports by cutting out the western middlemen. Prices for Russian Urals cargoes shipped from Baltic ports have averaged about $67/bl so far this year.
Yellen fell short of announcing any specific actions but noted that the US is considering possible sanctions against Russian shipping firm Sovcomflot's fleet of tankers. The US to date has sanctioned 20 out of 120 tankers owned by Sovcomflot, with US sanctions experts calling for targeting more. The UK and 44 European countries plus the EU already announced plans to crack down on Russia's "shadow fleet" of oil tankers used to skirt international sanctions.
Slovakia's economy ministry warned that oil product exports to the Czech Republic and Ukraine could be affected if Ukraine's ban on Russian-origin crude transit through the Druzhba pipeline continues. Kyiv in late June extended its sanctions against Russian firm Lukoil to prohibit it from transporting crude through Ukrainian territory in the Druzhba pipeline system. The move has caused concern in Slovakia and Hungary, as the Russian company provides around 45pc of Slovakia's crude needs and around 33pc of Hungary's demand.
US refiner Valero warned that its refineries on the US west coast could face shutdowns because of rising costs. "The west coast clearly is the highest cost region we operate in," Valero chief executive Lane Riggs said on an earnings call. "That's probably one of the places that you would ultimately see some refinery closures, if it shakes out." Valero operates two west coast refineries — the145,000 b/d Benicia and 85,000 b/d Wilmington, both in the state of California.Since the 1980s, 29 refineries in California have been shut or integrated with other refineries that eventually closed, California Energy Commission data show. Others have been converted to renewable fuels production.
By YouLiang Chay