Wild card to keep Russian oil markets out, executives warn | – #Wild #card #Russian #oil #markets #executives #warn
HOUSTON, March 7 (Reuters) – Some of the world’s top oil and gas Energy markets are now balanced, but could easily be disrupted by spare generation capacity and supply uncertainties related to Russia’s war in Ukraine, company executives and officials said Tuesday. .
Comments at the CERAWeek energy conference in Houston show the industry is still reeling from the initial effects of one of the biggest shocks to global energy flows in recent memory. A mild winter has helped major consumers in Europe by providing a reprieve from normally high demand for heating fuels.
“There is very little spare capacity, so small changes in supply have an impact,” said Anders Opedal, chief executive of Norwegian energy giant Equinor ( EQNR.OL ). “It’s easy for the market to move in both directions.”
Opedal is the natural one facing Europe after Russia invaded Ukraine and cut off regional supplies gas predicted that supply uncertainty will continue into 2024 and possibly into 2025. Tighter global crude supplies are also possible after the Kremlin threatened to cut supplies by 500,000 barrels per day (bpd) last month. since March.
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Monday USAEnergy executives and top OPEC officials discussed concerns about the lack of spare oil production capacity at a special dinner on the sidelines of the conference.
“We may have had a surprisingly good winter this winter, but I don’t think we’re out of the woods yet,” said Michael LaMotte, managing director of investment firm Guggenheim Partners. “And things could get worse before they get better.”
Algeria, a member of the Organization of the Petroleum Exporting Countries, will provide 40 million to top business to meet demand, especially in Europe. dollars is in the process of investing, said the Minister of Energy and Mines, Mohammad Arkab.
PRICES APPLICABLE TO RUSSIA
Frédéric Lasserre, head of global research and analysis at Gunvor, said tight stock potential of Ukraine Instead of limiting the country’s ability to export crude oil for governments that have imposed sanctions on Moscow for its occupation, Russia makes it important to set a price limit for oil.
USAEnergy Ambassador Amos Hochstein said that Russia A price cap works well because it is designed to reduce their income without slowing their exports Russia oil is still on the market.
“Group of Seven” countries, European Union and Australia on December 5 sea of Russian oil way 60 per barrel by applying a price limit to the cargo transported by dollars determined at the level.
On February 5, the G7 and its allies also imposed a price cap on Russian fuel sales.
On Tuesday, the Kremlin said it did not recognize the price ceiling.
Chevron CEO Mike Wirth said that while Russian oil is still on the market, it has a different cost because ships must travel longer distances to deliver crude to countries that do not impose sanctions.
OPEC Secretary General Haitham Al Ghais said on Tuesday that he was not concerned about Russia’s rerouting of crude oil exports to countries such as China and India.
STABLE OIL MARKET?
Officials, including the CEOs of Gunvor and Kuwait Petroleum Corp., assured attendees at CERAWeek that the oil market has stabilized and rebalanced, and that this winter crude oil, gas and left fears of fuel shortages behind.
However, from fears of a potential global recession and higher interest rates, companies, consumers and governments coronavirus The outlook for the oil market is murkier later this year as it grapples with a range of factors from rising energy demand from China to rising energy demand from China.
OPEC’s Al Ghais said China’s oil demand is expected to increase by 500,000 to 600,000 barrels per day in 2023, while global oil demand is expected to increase by 2.3 million barrels per day in 2023.
Gunvor CEO Torbjorn Tornqvist said on Monday that crude oil prices may increase in the second half of the year as Chinese demand returns to the market.
US Federal Reserve Chairman Jerome Powell told lawmakers on Tuesday that the central bank will need to raise interest rates more than expected to control inflation.
Savvas Manousos, executive vice president of global trade at CEPSA, said: “This year will be a more challenging environment … with flows from the broader macro economy, as well as from Russia.”
Reporting by Stephanie Kelly, Simon Webb, Ron Bousso and Richard Valdmanis in Houston; Edited by David Gregorio
Our standards: Thomson Reuters Trust Principles.
Stephanie Kelly
2023-03-08 05:58:10
Source – reuters
Translation“24 HOURS”