Oil prices rose as much as more than 1% on Monday as a key pipeline supplying the United States remained shut while Russian President Vladimir Putin threatened to cut production in retaliation for a Western price cap on its exports.
RIYADH: Saudi energy minister Prince Abdulaziz bin Salman said on Sunday the impact of European sanctions on Russian crude oil and price cap measures “did not bring clear results yet” and its implementation was still unclear.
New data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have shown that crude production increased by 177,000 barrels per day in November.
Winter is settling across Europe, bringing freezing temperatures that are leading to higher energy consumption, and the EU is still wrangling about the gas price cap that 15 members insisted the bloc implemented to shield them from more price excess. Time is running out for the EU. The 27 members of the EU are currently discussing the cap proposed by the European Commission last month, which did not win unanimous support when it was presented to everyone. On the contrary, the level that the Commission had set for the cap was widely considered to be too high and combined with such conditions as to effectively make the cap impossible to implement.
WTI and Brent crude oil prices fell for a third straight session on Tuesday, with the U.S. benchmark now at its lowest level in a year. Front-month Nymex crude for January delivery closed the day -3.5% to $74.25/bbl, its lowest in nearly a year, while February Brent crude finished -4% to $79.35/bbl, its weakest close since January 3. It’s now clear that the broader market selloff and worries about more aggressive monetary tightening by the Federal Reserve have overshadowed any positive effect from the new price cap on Russian oil sales.
The $ 60-per-barrel price cap on Russian crude oil, which came into effect on Monday, looks pretty straightforward. Buyers paying $60 or less per barrel of Russia’s crude will have full access to all EU and G7 insurance and financing services associated with transporting Russian crude to non-EU countries.
Crude oil prices fell slightly today after the U.S. Energy Information Administration reported an inventory decline of 5.2 million barrels for the week to December 2.
The country has made some significant gains in its annual petroleum revenue, recording US$1.16billion as of third-quarter – which is US$550.53million more than it realised for same period last year.
The country could significantly boost its energy security and reduce heavy reliance on imports by prioritising domestic gas, Dr. Joseph Essandoh-Yeddu, an energy expert, has said.
Petroleum Commission (PC) and its partners at the just ended 2022 Local Content and Exhibition Conference held in Takoradi in the Western Region have pledged to ensure a zero emissions by 2025.