Growing Fears That War In The Middle East Will Spread, Sending Oil Prices Surging

CNN: Big Oil CEO is concerned about potential Middle East escalation, touts record US supply

The American oil industry is on high alert for an escalation of the violence in the Middle East that disrupts the flow of oil out of the region. 

 Mike Sommers, CEO of the American Petroleum Institute, worries there is a growing chance the crisis will intensify and derail oil supplies. “This should be a real concern, I think, to every American,” Sommers told CNN in an exclusive interview. 

“Oil tankers are being attacked by the Houthi rebels in the Red Sea. And what you’re seeing is a number of those oil tankers no longer traversing the Red Sea.”  

Read more ....  

WNU Editor: It is not only the Middle East where a "black swan" event like a war may disrupt oil production and supply .... Drones attack oil depot, industrial facility in Russia’s Orel (Ukrinform). On a side note. Here are the 5 top oil producers in the world .... These Were The Top 5 Oil Producers Of 2023 (Zero Hedge).

Oil Companies Begin To Pause Red Sea Oil Shipments After Houthi Rebel Attacks

BBC: BP pauses all Red Sea shipments after rebel attacks 

Oil giant BP has announced it is pausing all shipments of oil through the Red Sea after recent attacks on vessels by Houthi rebels. 

The firm blamed the "deteriorating security situation" in the region as Iran-backed Houthis target ships they believe are bound for Israel. 

Many freight firms have suspended journeys as the attacks continue. 

BP said it would keep its "precautionary pause under ongoing review" and monitor the region. 

Analysts suggested that if other large oil firms follow suit, oil prices could rise. 

Brent crude, the international benchmark foroil prices, increased to $78.44 per barrel.  

Read more ....  

Update #1: BP latest firm to pause Red Sea shipments as U.S. says it will form international coalition to curb Houthi attacks (CNBC)  

Update #2: BP halts oil shipments through Red Sea following Houthi attacks (Axios)  

WNU Editor: Expect higher oil prices.

Are We On The Verge Of A U.S. -- Saudi Arabia Oil Supply War?

Business Insider: Saudi Arabia could 'flush' the oil market with a flood of supply to regain control over prices in the face of rising US production, crude expert says 

* Saudi Arabia may "flush" the market with a flood of supply that would sink prices, an expert said. 

* That comes as OPEC+ concluded its latest meeting where members pledged voluntary production cuts without giving firm commitments. 

* Meanwhile, US crude output has been on a tear this year, hitting new record highs. 

Saudi Arabia may flood the market with more oil supplies, reversing its production curbs, as the world's top crude exporter tries to regain control of prices, an energy market veteran said. 

That comes as OPEC+ concluded its latest meeting where members pledged voluntary production cuts without giving firm commitments, prompting oil prices to fall. 

"We've more or less been saying potentially Saudi needs to just flush this thing out," Paul Sankey from Sankey Research told CNBC on Friday.  

Read more ....  

Update: Saudi Arabia is struggling to boost oil prices, raising possibility of supply war with U.S.  

WNU Editor: As oil consumers we are all lucky that high oil prices has resulted in this .... Surging U.S. Oil Production Brings Down Prices and Raises Climate Fears (DNYUZ/New York Times).

World Bank Warns Middle East Conflict Could Lead To $150 A Barrel

 

BBC: World Bank warns oil prices could reach $150 a barrel 

Oil prices could rise to more than $150 a barrel if the conflict in the Middle East escalates, according to the World Bank. 

A drawn-out war in the region could drive big rises in energy and food prices, just a year after prices spiked due to the Russian invasion of Ukraine. 

For now oil prices remain steady at around $90 a barrel and are predicted to fall. 

However, the Bank warns that this outlook could quickly reverse. 

Under its worst case scenario, the World Bank said a situation could develop that was comparable with the oil crisis of the 1970s, which would could push oil prices up to between $140 and $157 a barrel.  

Read more ....  

WNU Editor: The World Bank report is here .... Conflict in Middle East Could Bring ‘Dual Shock’ to Global Commodity Markets (World Bank). 

World Bank Warns Middle East Conflict Could Lead To $150 A Barrel  

Oil prices could reach ‘uncharted waters’ if the Israel-Hamas war escalates, the World Bank says -- AP  

Oil prices could hit $150 if Israel-Hamas conflict intensifies, World Bank -- Financial Times  

World Bank warns Middle East conflict could lead to spike in fuel prices -- UPI  

World Bank warns conflict in Middle East could deliver a dual shock to commodity markets -- CNN

Russia Now Selling Oil Above The Western Price Cap

Zero Hedge: In "Victory" For Moscow, Russia Defies Sanctions By Selling Oil Above Western Price Cap 

Two weeks ago we reported that with a barrel of Urals about to rise above $60, the "Russian oil price at key port was about to breach sanctions cap", which - if the sanctions were strenuously enforced - meant that there would be a sharp drop in supply. 

Fast forward to today when, as the WSJ reported, the price of Russia's most coveted crude finally traded above the western price cap imposed to starve Moscow of funds for the war in Ukraine (but not really, because starving the world of Russian oil has long been viewed as a far more dangerous outcome), resulting in a very distinct "victory" for Moscow in the "fight for influence over global oil markets." 

It is the first time that the price for its flagship Urals grade of oil has breached the $60-a-barrel limit since the U.S. and its allies introduced the novel sanctions policy last December, according to commodities-data firm Argus Media, and - as the WSJ clarifies - it is a sign that the Kremlin has succeeded, at least in part, in adjusting to the restrictions. 

Read more ....  

WNU Editor: There is an expectation that both China and India will be consuming an extra 2-3 million barrels of oil by the end of this year. That alone is going to raise the price of oil significantly, and it will provide more opportunities for Russia to sell its oil at a price significantly above the price cap of $60/barrel. 

And while Russian oil exports by sea continue to decrease .... Russian Crude Oil Exports Continue To Plunge (OilPrice.com), oil shipments by pipeline to customers like China are booming .... China hugely boosts crude stockpiling on cheap Russian oil: Russell (Reuters). 

 Update: The EU wants to keep on doubling down on stupid .... The EU Has No Plans To Revise Its Russian Oil Price Cap (OilPrice.com).

Goldman Sachs Sees Oil Prices Rising On Record Demand

 

CNBC: Goldman Sachs expects ‘all time high’ oil demand to spur large deficits, boosting prices 

* Goldman Sachs forecasts “all-time high” demand in oil markets leading to a “sizeable deficit.” 

* The investment bank projects Brent crude to rise from just above $80 per barrel now to $86 per barrel by year end. 

Goldman Sachs expects record demand in oil markets to drive crude prices higher in the near term. 

“We expect pretty sizable deficits in the second half with deficits of almost 2 million barrels per day in the third quarter as demand reaches an all-time high,” Goldman’s head of oil research Daan Struyven told CNBC’s “Squawk Box Asia” on Monday. 

He added that the bank forecasts Brent crude to rise from just above $80 per barrel now to $86 per barrel by year-end.  

Read more .... 

Update: Goldman Sachs Sees Oil Prices Rising On Record Demand (Global Times) 

WNU Editor: China and India are the driving forces for increased oil demand and cost.

IEA Warns Of Possible Oil Shortages

Image: Shutterstock  

RT: IEA warns of possible oil shortage  

Global demand will rise by 6% between 2022 and 2028, according to the energy watchdog  

The International Energy Agency (IEA) has raised its outlook for world oil demand to a record high of 102.3 million barrels a day this year, saying it will be powered by faster-growing economies in the developing world. 

In its latest medium-term market report released this week, the IEA projects global oil demand to grow 6% between 2022 and 2028 to reach 105.7 million barrels per day (bpd), up 5.9 million bpd compared to 2022 levels. 

That growth will be supported by strong demand from the petrochemical and aviation sectors, it said.  

Read more ....  

WNU Editor: The IEA also predicts oil demand to peak within a decade .... Oil demand could peak this decade, IEA says (CNN).  

Update: This is where Russian oil is going .... IEA: 80% Russian oil exports went to India, China in May (India Times).

China Continues To Stockpile Oil

OilPrice.com: Oil Prices Rise As China’s Crude Imports Jump 

Oil prices rose early on Wednesday as Chinese data showed crude imports into the world’s top oil importer jumped in May, recovering from a weak April. 

As of 8:13 a.m. EDT on Wednesday, ahead of the EIA weekly inventory report, WTI Crude prices were up by 0.99% at $72.45. The international benchmark, Brent Crude, traded at $76.98, up by 0.94% on the day. Following a slump on Tuesday, oil prices recovered some of the losses early on Wednesday, as China’s data showed crude oil imports jumped in May by 12.2% year-on-year and by 17.4% compared to April. 

China imported a total of 12.11 million barrels per day (bpd) of crude in May, data from the General Administration of Customs showed, as refiners returned from maintenance and moved to stockpile crude. 

Read more ....  

WNU Editor: China is also stockpiling on gold and food thereby raising a lot of speculation on why .... Is China preparing for war? Soaring food, gold stockpiles an ominous sign (AsiaMarkets).

Strategic US Crude Oil Reserves Continue To Drop

The Bryan Mound Strategic Petroleum Reserve, an oil storage facility, is seen in this aerial photograph over Freeport, Texas, U.S., April 27, 2020. REUTERS/Adrees Latif

U.S. SPR RESERVES OF CRUDE OIL FELL BY 1.58 MILLION BARRELS LAST WEEK TO 368 MILLION BARRELS, LOWEST SINCE OCT 1983

— Market Rebellion (@MarketRebels) April 17, 2023

Reuters: U.S. Emergency Oil Reserves Tumble to Lowest Since 1984 

HOUSTON (Reuters) -U.S. emergency crude oil stocks fell 8.4 million barrels last week to 434.1 million barrels, their lowest since October 1984, according to U.S. Department of Energy (DOE) data released on Monday. 

The release from the Strategic Petroleum Reserve (SPR) in the week ended Sept. 9 was the steepest draw since May. It comprised of about 6.3 million barrels of sweet crude and around 2 million barrels of sour crude. 

President Joe Biden in March set a plan to release 1 million barrels per day over six months from the SPR to tackle high U.S. fuel prices, which have contributed to soaring inflation. 

The Biden administration is weighing the need for further SPR releases after the current program ends in October, Energy Secretary Jennifer Granholm told Reuters last week. A DOE spokesperson later said the White House at that time was not considering new releases beyond the 180 million barrels.  

Read more ....  

Update: Strategic US crude oil reserves sharply drop (AlBawaba)  

WNU Editor: The Biden administration says there is nothing to worry about .... Biden admin says Republican concerns about oil reserve damage unfounded (Reuters).  

Update #2: I am skeptical the Biden administration is going to do this .... The Biden Administration Is Considering Refilling The SPR This Fall (OilPrice.com).

Breaking With The West, Japan Buys Russian Oil At Prices Above The Western Imposed Cap

Breaking from US and Allies, G7 President Japan is buying Russian oil above the $60 price cap. US has had no choice but to make an exception for Japan. Russia continues to beat sanctions. pic.twitter.com/v8VB0Wg9mF

— Shubhangi Sharma (@ItsShubhangi) April 2, 2023

FOX News: Japan buys Russian oil above $60-a-barrel cap, breaking with US allies: report 

Japan has almost no fossil fuels of its own, relies heavily on imports for much of its energy needs Japan has begun purchasing Russian crude oil above the $60-a-barrel cap, breaking with Western allies thanks to an exception authorized by the United States. 

As many European nations weaned themselves off Russian oil in response to the invasion of Ukraine, Japan stepped up its purchase of Russian natural gas.  

Read more ....  

Update: Japan Buys Russian Oil Above Global $60 Cap (Newsmax)  

WNU Editor: Just two days ago the EU was saying that oil prices will remain stable, and sanctions coupled with price caps on Russian oil were working .... Russian Oil Price Cap to Stay at $60, European Governments Told (Bloomberg). 

Sighhh .... 

As we learned today with this Japanese purchase of Russian oil. Russian oil price caps are not universal (i.e. not working), and what is worse, the price of oil is spiking on today's decision by OPEC+ to cut oil production .... Oil Surges After OPEC+'s Unexpected Crude Production Cut. 

I personally thought just a few hours ago that it would take a few months before the Western cap on Russian oil prices would collapse. I was wrong. It just took one day.

Oil Surges After OPEC+'s Unexpected Crude Production Cut

 

BBC News: Oil prices surge after surprise move to cut output 

Oil prices have surged after several of the world's largest oil exporters announced surprise cuts in production. 

The price of Brent Crude oil jumped by more than $5 a barrel, or 7%, to above $85 as trading began. 

The increase came after Saudi Arabia, Iraq and several Gulf states said on Sunday they were cutting output by more than one million barrels a day. 

Oil prices soared when Russia invaded Ukraine, but are now back at levels seen before the conflict began.

Read more ....  

WNU Editor: Western sanctions on Russian oil has disrupted global oil production, supplies, and prices. 

A prediction. 

 I expect Western price caps on Russian oil will soon collapse. 

Oil Surges After OPEC+'s Unexpected Crude Production Cut  

OPEC+ announces surprise oil cuts, while U.S. calls the move inadvisable -- CNBC/Reuters  

Oil Prices Soar Almost 6% After OPEC+ Output Cut -- AFP  

Brent oil price on ICE above $85 per barrel first time since March 7 -- TASS  

Oil prices soar after Saudi Arabia leads coordinated OPEC+ cuts totaling more than 1 million barrels a day -- Market Watch

Is The Price Of Oil About To Collapse?

 

Bloomberg: Oil Posts Worst Weekly Loss Since April 2020 Amid Bank Chaos 

Oil posted the worst weekly loss since the early months of the coronavirus pandemic as banking turmoil poisoned investor sentiment. 

West Texas Intermediate lost nearly 13% this week, the largest drop in almost three years. The failure of Silicon Valley Bank and troubles at Credit Suisse Group AG drove investors from risk assets, with oil-options covering accelerating the selloff. 

“Crude action this week reminded many of how quickly the commodity can be decimated by macro economic events,” said Rebecca Babin, senior energy trader at CIBC Private Wealth. “The commodity broke a significant level of support as the market tries to quantify the economic ramifications of banking turmoil.” 

Traders had been waiting for a catalyst to break prices out of the relatively narrow trading range that has dominated the market as expectations for rebounding Chinese demand compete with weaker economic outlook in the West.  

Read more ....  

WNU Editor: If we are heading into a recession, oil prices will definitely decrease. According to the experts, this is the worse case scenario .... Oil Prices Tumble. Worst Case Could Be $40 a Barrel (Barons). 

Is The Price Of Oil About To Collapse? 

The Oil Price Collapse Continues After Brief Respite -- OilPrice.com  

Banking rout fuels U.S. oil hedging, as investors seek to limit losses -- Reuters  

Oil has sunk to a near 15-month low. Here's why. -- Houston Chronicle

Saudi Arabia Threatens Oil Embargo On Nations That Impose Price Cap

Saudi Minister of Energy Prince Abdulaziz bin Salman al-Saud at the Future Sustainability Summit at Abu Dhabi National Exhibition Centre, January 14, 2020. © AFP / Karim Sahib  

The Cradle: Saudi Arabia will cut oil supply of nations that impose price cap: Energy Minister  

The Saudi official also criticized efforts by US lawmakers to pass the NOPEC bill, which would allow sovereign states to be sued in federal court 

 Saudi Energy Minister Prince Abdulaziz bin Salman on 14 March said that Riyadh will stop selling oil to any country that imposes a price cap on its supplies. 

“If a price cap were to be imposed on Saudi oil exports, we will not sell oil to any country that imposes a price cap on our supply, and we will reduce oil production, and I would not be surprised if others do the same,” the senior Saudi official said in an interview published by Energy Intelligence. 

Bin Salman stressed that price caps – whether imposed on a country or a group of countries – would lead to “individual or collective counter-responses with intolerable consequences in the form of massive volatility and instability.”  

Read more ....  

Update #1: Saudi Arabia’s Energy Minister Slams NOPEC Bill And Price Caps (OilPrice.com)  

Update #2: Saudi Arabia threatens oil embargo (RT)  

WNU Editor: After since this agreement .... Iran And Saudi Arabia Agree To Restore Diplomatic Relations After Secret Chinese Mediation Efforts (March 10, 2023), I have noticed the Saudis acting very independently against the West.

IEA Raises World Oil Demand Forecast For 2023

FILE PHOTO: Oil tanker is seen at a crude oil terminal in Ningbo Zhoushan port © Thomson Reuters  

OilPrice.com: The IEA Expects Global Oil Demand Hit A Record High In 2023 

* The InternationEnergy Agency has raised its forecast for global oil demand growth in 2023 by 100,000 bpd from last month. 

* The agency’s new forecast sees global oil demand increasing by 2 million barrels per day from 2022 levels. 

* China’s resurgent oil demand will account for nearly half the projected increases this year. 

Global oil demand is set to increase by 2 million barrels per day (bpd) this year, pushed up by growth in Chinese consumption after the reopening, the International Energy Agency (IEA) said on Wednesday as it raised its 2023 demand growth estimate by 100,000 bpd from last month’s forecast.

This year, world oil demand is set to average a record 101.9 million bpd, up by 2 million bpd from 2022, the IEA said in its closely-watched Oil Market Report today. 

The increase is 100,000 bpd higher than the 1.9 million bpd rise the agency expected at the time of the publishing of its January report.  

Read more ....  

WNU Editor: OPEC is also expecting higher global demand for oil this year .... OPEC expects tighter oil market with lower supply and higher demand (Bloomberg).

 IEA Raises World Oil Demand Forecast For 2023  

IEA Boosts Global Oil Demand Forecast as China's Economy Reopens -- Bloomberg 

Resurgent China to drive 2023 oil demand, supply shortfall possible in H2 -IEA -- Reuters  

World Oil Demand To Hit Record As China Reopens: IEA -- AFP

UAE Energy Minister Warns About Oil Supplies Not Being Able To Meet Global Demand In 2024

UAE energy minister Suhail al-Mazrouei  

Bloomberg: UAE Says Oil Supply A Bigger Issue Than Demand For 2024 

Oil supplies will pose a bigger issue than demand for global markets in 2024 as some countries struggle with production and investment, the United Arab Emirates energy minister said. 

Global oil markets are currently balanced, Suhail Al Mazrouei told Bloomberg TV in Dubai, adding to signals that the UAE and fellow OPEC+ producers will stick with current production targets this year. 

But he cautioned that, when the Organization of Petroleum Exporting Countries and its partners review plans for 2024 at the end of the year, the biggest quandary may be how the world will satisfy rising consumption.  

Read more ....  

Update: The UAE Is Worried About An Oil Supply Shortage In 2024 (OilPrice.com)  

WNU editor: UAE’s Energy Minister Suhail Al Mazrouei's analysis is spot on. His interview is here .... UAE Energy Minister: 'More Worried About Oil Supply Than Demand' (Bloomberg).

Russia To Cut Its Oil Output By 500,000 Barrels Per Day Starting In March

 

CNBC: Oil prices posts gains after Russia says it will cut output by 500,000 barrels a day 

* Russia will cut oil output by 500,000 barrels per day in March, Deputy Prime Minister Alexander Novak said on Friday. 

* The announcement follows Western bans on Moscow’s crude and oil products implemented in December and February, respectively. 

Russia will cut oil output by 500,000 barrels per day in March, Deputy Prime Minister Alexander Novak said on Friday, following Western bans on Moscow’s crude and oil products implemented in the past few months. 

The announced production decline amounts to roughly 5% of Russia’s latest crude oil output, which Paris-based watchdog the International Energy Agency estimated was down at 9.77 million barrels per day in December. 

The Brent contract for April delivery was trading at $86.07 per barrel, jumping by $1.57 — nearly 2% — on the news compared to Thursday’s close price. The front-month Nymex WTI contract with March expiry was at $79.44 a barrel, gaining about 1.8% from the previous settlement.  

Read more .... 

WNU editor: This was not expected. What this means is higher energy prices in the coming days/weeks .... Oil prices jump after Russia announces production cuts (RT). More here .... Russia's decision to cut oil output may cause global prices to surge to $100 — experts (TASS). 

 Update: No reaction yet from OPEC .... OPEC Has No Plans To React To Russia's Surprise Production Cut (OilPrice.com). But there has been reports that OPEC may consider production cuts in the coming weeks. 

 Russia To Cut Its Oil Output By 500,000 Barrels Per Day Starting In March  

Russia to cut oil output by 500,000 bpd from current production levels — source -- TASS

Russia to cut oil production in response to Western sanctions -- RT

Russia announces cut to oil output over Western price caps -- AP  

Russia to cut oil output by 500,000 bpd in March -- Reuters  

Russia to Cut Oil Output in Response to Western Sanctions -- NYTimes  

Russia to cut oil output by 5% as sanctions bite -- CNN  

Russia cuts oil production by 5 percent, prices climb -- The Hill  

Oil Prices Rise as Russia Announces Hefty Output Reduction -- Sputnik

Goldman Sachs Warns Of A "Serious" Global Oil Supply Problem In 2024 As Production Capacity Runs Out

OilPrice.com: Goldman Sachs Warns Of An Imminent Oil Supply Shortage 

Crude oil could soon swing into a deficit that will make next year a difficult one, Goldman Sachs said, as spare production capacity dwindles and underinvestment threatens future supply.

Speaking on the sidelines of an event in Saudi Arabia, Goldman’s top commodity analyst Jeffrey Currie said, as quoted by Bloomberg, that the industry is not spending enough to secure future production and that spare capacity globally is declining. 

This could tip the oil market into a serious supply problem next year, but the price for a barrel of Brent could top $100 before then. 

According to Currie, rising demand from China and sanctions on Russian oil will contribute to the deficit, which he expects to manifest in the second quarter of this year. In response, producers will tap their spare capacity, leaving it lower than it was before. Eventually, this will lead to a serious imbalance between supply and demand.  

Read more .... 

 Update: Oil To Face "Serious" Supply Problem In 2024 As Production Capacity Runs Out, Goldman Warns (Zero Hedge)  

Update #2: Goldman Sachs commodities seer sees oil surging above US$100 (Proactive)  

WNU Editor: What does this mean to you and me. Significant higher energy prices, and the resulting inflation from this spike in oil/gas/and diesel prices.

EU's February 5th Ban On Russian Diesel Will Impact Global Fuel Markets

A train moves past oil tanks of the NNK-Primornefteproduct petroleum depot in the far eastern port of Vladivostok, Russia, June 11, 2022. (Reuters Photo)  

Forbes: EU’s Ban On Russian Diesel To Stoke Turmoil In Global Fuel Markets 

Gasoline prices are rising again – up more than 30 cents a gallon in the past month and around 15 cents in the last two weeks alone. 

Motorists should brace for more pain. One reason is that the global market for refined products is about to be upended by the latest European Union (EU) sanctions on Russia’s petroleum industry. 

On February 5, the EU will ban imports of Russian refined products like diesel, jet fuel, gasoline, and heating oil. While global oil markets have recently handled a similar ban on Russian crude imports quite well, these product sanctions could be far more disruptive. 

Markets for refined fuels are much more complex than for crude, with refineries configured to process certain types of feedstock crudes and to manufacture varying slates of products, depending on regional demand patterns. 

 Read more ....  

WNU Editor: The key paragraph in the above Forbes article is this .... 

 .... Global diesel supplies are already tight. It’s unclear how Europe will replace nearly 500,000 barrels per day of Russian diesel, especially since the continent has shut down over 1 million barrels a day of refining capacity in the past few years due to the global pandemic and radical climate policies. 

Update #1: EU refineries are stocking up on what they can .... EU ramps up non-Russian diesel imports ahead of embargo (Argus).  

Update #2: This will impact US fuel prices .... New York Gasoline Shortage Brews on Fallout From EU's Russia Ban (Bloomberg). More here .... Russia sanctions may jeopardize US gasoline supply – Bloomberg (RT). 

Update #3: The EU is not ready for this embargo (see tweet below):

Europe is not ready for Putin’s diesel war https://t.co/TBldj3RafN

— Svein Tveitdal (@tveitdal) February 1, 2023

EU's Ban On Russian Diesel Will Shake Global Fuel Markets  

Europe embargoes Russian diesel to de-fuel war efforts -- CSM  

EU’s upcoming Russian oil embargo reroutes diesel barrels -- Daily Sabah  

What to Know About Europe's Ban on Russian Diesel Imports -- Time  

Energy crisis: Will Europe's ban on Russian diesel hike global fuel prices? -- Africa News  

The EU’s Embargo on Russian Diesel Fuel: What are the ‘Potential Effects? -- Sputnik

China And Russian Sanctions Driving Oil Prices

Reuters: Oil prices rise further on stronger China outlook 

LONDON (Reuters) -Oil prices rose by 1% on Monday to $88.50 a barrel, extending last week's gains on the back of a stronger outlook due to an expected economic recovery in top oil importer China this year. 

Brent crude was up 88 cents, or 1%, to $88.51 at 1247 GMT, their highest since Nov. 18. West Texas Intermediate (WTI) U.S. crude rose 76 cents, or 0.93%, to $82.40 a barrel. Last week Brent rose 2.8%, while the U.S. benchmark logged a 1.8% gain.  

Read more ....  

Update: Oil Climbs as Traders Weigh China Demand Outlook, Russian Supply (Bloomberg) 

 WNU Editor: China will be driving oil prices for the foreseeable future .... China Is Still The Biggest Driver Of Oil Prices (OilPrice.com).

There Continues To Be A Huge Demand For 'Banned' Russian Oil

Bloomberg: Russian Oil Is Getting Mixed in Singapore and Then Re-Exported, Sources Say 

Demand is soaring for oil storage tanks in Singapore, in a sign that a flood of Russian fuel is being blended and re-exported globally. 

Tank space in the city state is being snapped up due to a rise in interest and profits from mixing cheap fuel supplies from Russia with shipments from other sources, according to an executive from a tank operator and a consultant who advises traders on the matter. That process can help to obscure the cargoes’ origins, they said. 

Singapore hasn’t banned the import of Russian oil or petroleum products, although financial institutions based in the island state are prohibited from financing or dealing with Russian goods and companies. Singapore government agencies referred to past statements on the ban and price cap policy, without additional comments.  

Read more .... 

Update: ‘Banned’ Russian oil in high demand – Bloomberg (RT)  

WNU editor: This explains why Russian oil exports are not declining .... Russia Remains Top Seaborne Oil Supplier To Europe Despite Sanctions (OilPrice.com).