New US sanctions against Russia

2022-04-11T10:51:52
Crude oil New sanctions oil sector
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New US sanctions against Russia and Disappointing oil performance for the second straight week

The White House said U.S. President Joe Biden signed two bills imposing further sanctions on Russia and Belarus

Evest follows market developments in the following report

 

Topic

New American bill imposing further sanctions on Russia

Oil declines for the second straight week

Weekly oil performance

 

 

New American bill imposing further sanctions on Russia

The report states that the “Law on the Cessation of Russian Oil Imports
which embargoes the import of energy products from the Russian Federation
and the “Law on the Suspension of Normal Trade Relations with Russia and Belarus
are aimed at further promoting trade and human rights

Both laws relate to a special Russian-ed operation in Ukraine
The United States Congress approved the bills the day before

Earlier, the White House press secretary, Jane Psaki
said that “the president supports” and “calls for” sanctions

This week

the Biden administration has already announced sanctions against the largest Russian financial institutions and a number of individuals it believes to be associated with the Russian leadership

The European Union also imposed a further round of sanctions against Russia
as reported in the Official Journal of the European Union

Restrictive actions are taken against more than 200 individuals and 18 organizations
The new sanctions affected entrepreneurs, as well as family members of people who were already under sanctions

These procedures entered into force as soon as they were published on Friday evening

As previously reported, the European Union decided to embargo the import of certain types of wood
cement, fertilizers, seafood, beverages and caviar from the Russian Federation

The European Union decided to impose restrictions on the export of electronic equipment to the Russian Federation
as well as to declare an embargo on the supply of coal and other solid fuels from the Russian Federation to the European Union
The last restriction will enter into force on 10 August 2022
Until then, both parties will be allowed to perform contracts concluded before April 9, 2022
The annual volume of coal imports to the European Union is currently €8 billion

The sanctions also embargo Russian vessels from entering European Union cargo vessels’ ports
with the exception of those carrying gas, oil, petroleum products, fuel for nuclear power plants
certain types of minerals, iron ore and medicines

The European Union has improved the embargo on the supply and sale of euro banknotes to Russia
Now, this rule applies not only to the euro but also to all currencies of EU member states

 

artical  name New US sanctions against Russia

 

 

 

 

Oil declines for the second straight week

Global crude oil markets fell for the second straight week due to increased supply following the announcement of the release of oil from strategic reserves by countries
even in light of the wild fluctuations in benchmark futures, the largest since mid-2020

Over the week, benchmark Brent crude futures fell by 1.5 percent
and US West Texas Intermediate crude futures fell by 1 percent

Brent crude oil closed at $102.78 per barrel and West Texas Intermediate crude futures at $98.26
Over the week, Brent crude fell by 1.5% while WTI fell by 1%
For several weeks
the standards have been at their most volatile since June 2020

The IEA member states have agreed to release 60 million barrels in addition to the 180 million barrels announced
last week by the United States to help reduce prices in a tight market after the Russian invasion of Ukraine

According to Reuters analysts: According to Reuters analysts: “There is concern that artificially lowering prices will only increase demand, which will burn this supply very quickly

Reuters reported that JPMorgan expected the emergency release to be “going a long way in the short term” to offset the shortage of Russian oil supplies that it expects to remain permanently unrelated

“However, looking forward to 2023 and beyond, global producers will likely need to increase investment to fill a Russian-sized supply gap and re-store the International Energy Agency’s strategic reserves,” the Bank said

On Thursday, EU countries agreed to embargo Russian coal imports as of August under new measures against Moscow
but they are divided on whether to follow sanctions on oil or gas

 

 

 

 

 

Weekly oil performance

The price of Brent oil rose by $2.2, or 2.19%, to $102.78 per barrel in the last session of the week. The price of US light sweet oil (WTI) increased by $2.23 to $98.26 per barrel

Oil prices fell on April 7, after oil-consuming countries coordinated the release of a large quantity of oil from storage and worried about declining demand after China blocked Shanghai
Brent crude futures fell by 49 cents (0.5%) to $100.58 per barrel
while West Texas Intermediate crude fell by 20 cents (0.6%) to $96.03 per barrel

At the 6 April session

oil prices declined sharply after major oil-consuming countries said they would release their reserves to cope with supply shortages

and the dollar strengthened when the monthly meeting minutes were issued
Three suggest that the United States Federal Reserve (Fed) supports raising interest rates
Brent and West Texas Intermediate closed at their lowest price since March 16

At the close of this session, Brent crude fell by $5.57, or 5.2%, to $101.07 per barrel
while WTI fell by $5.73, or 5.6%, to $96.23

Oil prices fell in the April 5 session due to pressure from the dollar’s strength and growing concerns about the number of new Covid-19 infections that could reduce the consumption demand
However, oil decline has culminated in concerns about supply

At the close of this session, Brent crude fell by 89 cents, or 0.8%, to $106.64 per barrel
while WTI fell by $1.32 (1.3٪) to $101.96 per barrel

Oil prices rose by more than 3% on April 4, as investors worried about declining supply ahead of new developments related to the Ukraine crisis
increasing pressure on European countries to impose orders and sanctions on the Russian energy sector

During this session, Brent crude rose by $3.14, (or 3%), to $107.53 per barrel
while WTI rose by $4.01 (4%) to $103.28 per barrel

Over the entire week, Brent fell by 1.5%, while West Texas Intermediate crude fell by 1%

 

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