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Asia midday crude futures: Ice Brent holds steady
Ice Brent crude futures were largely stable in early Asian trading, after the US lawmakers approved a bill to introduce new sanctions against Russia's energy industry.
The Ice front-month November Brent contract was at $105.76/bl at 04:00 GMT, down by 7¢/bl from its settlement on 16 September when it ended $2.92/bl lower.
The Nymex front-month October crude contract was at $102.34/bl, lower by 9¢/bl from its settlement on 16 September when it ended $3.40/bl lower.
The US House of Representatives voted on 16 September to approve the most significant sanctions package in years targeting Russia's energy sector. But the bill would also grant US president Donald Trump additional authority to impose tariffs on key US trading partners.
The legislation would allow Trump within 30 days to impose additional tariffs of up to 100pc on US imports from the five largest customers by volume of Russian crude or natural gas, and, separately, from "the top five countries facilitating Russian oil sanctions evasion". The latter category applies to any country — based on criteria that the legislation does not clearly define — where banks and private companies enable sales or transportation of Russian oil.
China, India and Turkey are the three top buyers of Russian crude. EU members in eastern Europe, former Soviet states and China are the remaining buyers of Russian pipeline gas. The legislation exempts Caspian Pipeline Consortium crude, which transits Russia from Kazakhstan, from any sanctions.
Chinese oil firms are likely to cut product exports from October as the government reimposes restrictions in reaction to tightening domestic fuel supply, market participants told Argus on 16 September.
Beijing may again curb exports to destinations outside Hong Kong and Macau — as it did in April-June following the start of the US-Iran war — to alleviate domestic supply concerns, sources said. Those restrictions more than halved the country's product exports, to around 320,000 b/d in the second quarter from about 800,000 b/d a year earlier.
It is unclear if the government has made a final decision on curbing exports, but oil firms are increasingly pessimistic about their chances of maintaining access to lucrative global markets after this month. Both availability of imported crude, and domestic transportation fuel supplies, have tightened in recent weeks, while prices have surged following attacks on Saudi Arabian oil infrastructure by Yemen's Houthi militant group.
Key VLCC rates across west Africa, the US Gulf, the Gulf of Oman, Yanbu and the Mideast Gulf have rallied and extended historic highs this week across key markets, on the back of escalations in the US-Iran conflict.
The bellwether Mideast Gulf to China route broke the four-digit threshold for the first time since Argus records began, before rising further to WS1100 ($241.45/t) on 15 September.
Ice Brent crude futures were largely stable in early Asian trading, after the US lawmakers approved a bill to introduce new sanctions against Russia's energy industry.
The Ice front-month November Brent contract was at $105.76/bl at 04:00 GMT, down by 7¢/bl from its settlement on 16 September when it ended $2.92/bl lower.
The Nymex front-month October crude contract was at $102.34/bl, lower by 9¢/bl from its settlement on 16 September when it ended $3.40/bl lower.
The US House of Representatives voted on 16 September to approve the most significant sanctions package in years targeting Russia's energy sector. But the bill would also grant US president Donald Trump additional authority to impose tariffs on key US trading partners.
The legislation would allow Trump within 30 days to impose additional tariffs of up to 100pc on US imports from the five largest customers by volume of Russian crude or natural gas, and, separately, from "the top five countries facilitating Russian oil sanctions evasion". The latter category applies to any country — based on criteria that the legislation does not clearly define — where banks and private companies enable sales or transportation of Russian oil.
China, India and Turkey are the three top buyers of Russian crude. EU members in eastern Europe, former Soviet states and China are the remaining buyers of Russian pipeline gas. The legislation exempts Caspian Pipeline Consortium crude, which transits Russia from Kazakhstan, from any sanctions.
Chinese oil firms are likely to cut product exports from October as the government reimposes restrictions in reaction to tightening domestic fuel supply, market participants told Argus on 16 September.
Beijing may again curb exports to destinations outside Hong Kong and Macau — as it did in April-June following the start of the US-Iran war — to alleviate domestic supply concerns, sources said. Those restrictions more than halved the country's product exports, to around 320,000 b/d in the second quarter from about 800,000 b/d a year earlier.
It is unclear if the government has made a final decision on curbing exports, but oil firms are increasingly pessimistic about their chances of maintaining access to lucrative global markets after this month. Both availability of imported crude, and domestic transportation fuel supplies, have tightened in recent weeks, while prices have surged following attacks on Saudi Arabian oil infrastructure by Yemen's Houthi militant group.
Key VLCC rates across west Africa, the US Gulf, the Gulf of Oman, Yanbu and the Mideast Gulf have rallied and extended historic highs this week across key markets, on the back of escalations in the US-Iran conflict.
The bellwether Mideast Gulf to China route broke the four-digit threshold for the first time since Argus records began, before rising further to WS1100 ($241.45/t) on 15 September.
By YouLiang Chay