RUSSIAN SANCTIONS: OIL 5 MB/D
Crude-oil futures extended overnight gains in Asian trading hours Tuesday on indications of stronger U.S. oil demand and as European Union officials mull tighter sanctions against Russia.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at $105.09 a barrel at 0456 GMT, up $0.50 in the Globex electronic session. September Brent crude on London's ICE Futures exchange rose $0.24 to $107.92 a barrel.
U.S. refineries ran at 93.8% of capacity in the week ended July 11, the highest level for the week since 2005, according to the U.S. Energy Information Administration.
The EIA's weekly inventory survey is due on Wednesday. The American Petroleum Institute, a trade body, will publish its weekly data later Tuesday and markets expect U.S. stockpiles to fall further, supporting oil prices.
Meanwhile, European Union foreign ministers are expected to approve sanctions against a range of Russian oligarchs on Tuesday in response to the suspected downing of a Malaysia Airlines jetliner by Moscow-backed rebels in eastern Ukraine.
However, the extent of the sanctions and the impact on the energy sector are unclear, especially considering that Russia is one of the world's largest oil and gas producers.
"Russia is exporting almost five million barrels of crude oil a day. If you want to impose sanctions on them, meaning that they don't export crude oil, the market doesn't have replacement barrels of that magnitude," Johannes Benigni, head of consulting firm JBC Energy said.
He said Europe alone takes up 3.5 million barrels a day of Russian crude and it would be much more expensive for them to buy oil from elsewhere, a move that would hurt European refiners already reeling from weak margins and multiple closures.
Nymex reformulated gasoline blendstock for August--the benchmark gasoline contract--rose 91 points to $2.9005 a gallon, while August heating oil traded at $2.8645, 57 points higher.
ICE gasoil for August changed hands at $884.25 a metric ton, up $4.75 from Monday's settlement.
|March, 19, 08:19:00|
|March, 19, 08:15:00|
|March, 19, 08:10:00|
|March, 19, 08:05:00|
|March, 19, 08:00:00|
|March, 18, 11:45:00|
PENNENERGY - The Trump administration accused Russia on Thursday of a concerted, ongoing operation to hack and spy on the U.S. energy grid and other critical infrastructure, and separately imposed sanctions on Russian officials for alleged high-tech interference in the 2016 American presidential election.
IAEA - IAEA Director General Yukiya Amano commended efforts by Pakistan to increase nuclear safety and security as the country works to triple its nuclear power capacity. Prime Minister Shahid Khaqan Abbasi commended the IAEA for the support provided to Pakistan in the use of peaceful nuclear applications. Pakistan “was ready to further strengthen its partnership with the IAEA and contribute towards the achievement of the Sustainable Development Goals worldwide,” the Prime Minister said.
PLATTS - "The increase in competition induced new practices in the market that resulted in imports returning to normal," Petrobras' Jorge Celestino said during a presentation of the company's 2017 financial results.
PLATTS - The objective of this program is to increase its domestic refinery utilization rates to 90% from current levels of 10-20%, Kragha said speaking to Platts in Cape Town on the sidelines of the African Refiner Association conference.