Oil prices record $95.77 for Brent and $87.90 for US crude

Oil prices recorded $95.77 a barrel for the global benchmark Brent crude futures contract on Friday, and West Texas Intermediate crude futures recorded $87.90 a barrel.

Diesel supplies in Europe are facing major disruptions due to the loss of Russian oil, which is putting demand under pressure soon. Already.

“The shortage of petroleum products will lead to a rise in diesel prices in the coming months,” Repsol CEO John Emaze confirmed.

The Spanish newspaper “Economista” said that Europe has always been a net importer of medium distillates, with consumption generally rising at this time of year due to winter heating demand.

Russia’s restrictions and sanctions on Moscow have led to an exceptionally high adjustment in the market this year. Added to the supply cut is the decision of some companies to use diesel instead of natural gas, and the situation is not limited to Europe: the United States also suffers from a shortage of stocks.

Emaze said recent strikes in France, which have shut down refineries, have also shrunk the market. This caused an increase in imports from the Gallic country, worsening the limited supply from the rest of the continent.

Emaze added that the current crisis helped push Repsol’s refining margin to 26 euros per barrel in October, well above historical levels. For the fourth quarter, the company expects the margin to reach at least 15 euros per barrel.

Although the old continent has not yet implemented the decision to ban Russian oil derivatives, the diesel crisis has worsened in Europe, and is expected to worsen in the coming months.

Part of the stockpile problems in Europe are due to the structure of diesel futures contracts. The gas oil curve of the Intercontinental Exchange (ICE) suffers from higher spot prices than those with longer terms. This discourages hoarding, as traders are likely to sell at a better price than they can keep in the future.

Several factors have led to an increase in the crisis, the most important of which is the strike of workers in French refineries, and the start of maintenance operations for oil processing facilities throughout Europe. In light of the developments taking place, refineries in Asia and the Middle East are taking advantage of the region’s suffering from an unprecedented crisis to intensify diesel shipments to Europe, According to Bloomberg.

Related Articles

Back to top button