• Forex
  • Investments
  • Loyalty program
  • Promotions
  • Analysis
  • Getting started
  • About us

Daily focus: Russia supplies fuel to US

News. Crude futures have been in retreat today amid a sharp rise in energy supplies to the United States.

Comment. A fleet of tankers laden with Russian diesel is heading to the US east coast, according to Vortexa Ltd. The energy crisis and the cold winter stateside have caused a shortage of petroleum products: for example, a large refinery in the state of Texas, owned by Marathon Petroleum Corporation, sharply reduced its output of petroleum products last week due to the high cost of electricity. This situation was partly responsible for a 4% spike in WTI from February 2 to 7. However, today, global oil prices are in decline amid media reports that tankers with fuel from Russia are stepping in to help freezing America. By the time of writing, WTI was down 2.2%, dropping below $90/bbl. Bloomberg reported that as of the end of January, Russia had shipped 1.55 mln bbl of petroleum products to the US, a three-year record. The oil market is currently pricing in the news about increased supply of petroleum products in the US, with prices trending lower.

Market reaction. Brent slid 2.3%, but is still holding above $90/bbl.

Forecast. In our view, Brent could drop to $89.5/bbl.

Share

There's a better website for you

A new exciting website with services that better suit your location has recently launched!

Sign up here to collect your 30% Welcome Bonus.