Brent crude oil sailed above $91 per barrel following the announcement; the first time it hit this height in 10 months. According to Goldman Sachs’s previous forecasts, Brent oil would reach $86 per barrel in December and $93 by the end of 2024 barring any unforeseen drastic macroeconomic changes.

The investment bank expects Saudi oil supply to be 500,000 barrels below its previous expectations. Still, Goldman Sachs warned that price increases could be even more drastic than it expected if should output cuts be extended further than the end of 2023.

The post Oil Prices Expected To Surge Following Russian And Saudi Supply Cuts appeared first on theprimarymarket.com.

Contracts listed on the S&P 500 fell 0.09%, while those on the Dow Jones Industrial Average remained relatively unchanged. Futures on the Nasdaq Composite edged lower by 0.16%.

Following the recent turmoil in Russia, investors appeared to flock to investments that are typically considered safe havens. Gold prices rose by 0.5% on Monday morning.

Still, it did not seem as if investors were entirely discouraged by the latest developments in the Russian-Ukraine conflict. Bonds edged lower on a whole, with 10-year Treasury note falling by more than 10 basis points to 3.70%.

Investors are gearing up for the latest round of data on PCE inflation and consumer confidence due later this week. This data should provide an indication of the Federal Reserve’s next moves, with Fed Chair Jerome Powell signaling that more rate increases may come next week.

The post Futures Dip Following Latest Russia Developments appeared first on theprimarymarket.com.

While Europe still made use this winter of Russian imports that arrived in mid-2022, Eni SpA CEO Claudio Descalzi explained that the continent would look to eliminate Russian gas imports in their entirety next winter. This decision comes after the war in Ukraine escalated.

Equinor ASA CEO Anders Opedal confirmed that Norway is already producing gas at maximum capacity, emerging as a feasible supplier in place of Russia. Opedal warned, however, that in the event that gas demand rises due to extreme weather, Norway may need to increase its exports.

As Europe looks to acquire new sources of gas supply, U.S. oil production appears to be on the rise, with Occidental Petroleum Corp. expecting an increase of approximately 500,000 barrels this year; a 20% rise.

Fred Forthuber, president of the Occidental subsidiary that oversees the marketing of crude and natural gas, said that between 80% and 90% of the output increase is expected to come from the Permian Basin of West Texas and New Mexico.

The post Europe Prepares for Winter Without Russian Gas, CERAWeek Speakers Explain appeared first on theprimarymarket.com.

“It is the most significant set of market dislocations and distortions in energy markets generally speaking that I ever recall,” Ed Morse, global head of commodity research at Citi explained.

Morse observed the emergence of two sub-oil markets following the conflict’s outbreak, namely “a transparent oil market, and a non-transparent market.” On one hand, Russian oil exports to Europe have been largely redirected to Asia following Western-imposed sanctions, while Europe has largely sourced new energy suppliers, thereby almost eliminating its dependency on Russian oil.

Earlier this month, an E.U. ban on Russian oil product exports was imposed. This follows a G7 price cap on Russian oil in an attempt to weaken the country’s coffers.

Although the market continues to face much volatility, prices have been largely restabilized since the start of the Russia-Ukraine conflict. Following the invasion, West Texas Intermediate skyrocketed to a peak of $123.70 per barrel and Brent futures hit $127.98. As of Friday, West Texas Intermediate is hovering around $75 per barrel while Brent is approximately $82 per barrel.

The post Oil Market Notably Different After Ukraine Conflict, Economists Observe appeared first on theprimarymarket.com.

The parties agreed to convene during discussions following a virtual meeting held by US Deputy Treasury Secretary Wally Adeyemo with other deputy ministers.

“The Deputies agreed to an approach for refined products that will institute two distinct caps, in addition to the crude cap: one cap for products that generally trade at a premium to crude, such as diesel or gasoil, and one for products that trade at a discount to crude, such as fuel oil,” the Treasury Department confirmed.

Although some members of the price-cap coalition such as Poland and Estonia looked to impose a price cap below $60 per barrel in an effort to limit Russian revenues, the U.S. remains resolute to keep the price level consistent.

Last year, Europe imported about 220 million barrels of diesel-type products from Russia last year, data from Vortexa Ltd. compiled by Bloomberg revealed. With the continent aiming to limit its reliance on Russian supplies, there has been pressure to establish a price cap before the EU imposes a ban in February.

The post U.S. and Allies Agree to Review Russian Oil Price Cap appeared first on theprimarymarket.com.

In addition to the dollar, the rouble was also up 4.4% against the euro at 72.4 while gaining 2.1% against the yen at 9.71. Despite ongoing economic sanctions and investors’ concerns over their impact on the Russian oil and gas trades, the rouble has emerged as one of the strongest performers against the dollar, trailing only the Brazilian real.

Russia’s currency lost 8% over the past week, bringing its total loss for the month to 10%. According to the Russian finance ministry, this decline is attributed to recovering imports, however, concerns over the oil embargo and price cap have also shed investor confidence.

Brent crude oil, which is the global benchmark for what remains Russia’s main export, has reached a three-week high during its final trading session before the Christmas break, rising 3.7% to $84 per barrel.

The post Russian Rouble Gains Ground Following Heavy Weekly Slump appeared first on theprimarymarket.com.

Named the Group of 7 price cap, this latest sanction on the Russian oil trade was formulated with the aim of limiting the finances available to Russia as it continues its war efforts against Ukraine.

“These tools were created for political purposes and it is not clear yet whether they can achieve these political purposes,” Prince Abdulaziz said of the European sanctions. He added that central banks would also be preoccupied with implementing mechanisms to curb the ongoing inflation crisis.

While Russia claims that it may not be able to conform with the price caps, the OPEC+ alliance continues to restrict its own production. The alliance passed a decision on October 5 to cut its production by two million barrels per day. During a meeting on December 4, OPEC+ decided to keep its production levels unchanged as member nations continue to observe the oil market for changes amid the recent sanctions on Russia.

The post Results of Russian Energy Price Cap Still Unclear, Saudi Minister Claims appeared first on theprimarymarket.com.

Prior to the announcement, banks were only permitted to sell foreign currency cash that had been bought by individuals before April 9. With the new policy in place, banks are permitted to sell any foreign currency that has been obtained from other sources regardless of date of purchase.

“This is an additional tweak to the measures already in place, which allow for the increased supply of cash dollars and euros on the Russian market,” the Bank of Russia stated on Saturday as the new policy came into effect. While Russian banks have been permitted to sell any foreign currency apart from Dollars and Euros since May, this restriction has also been lifted.

Curbs on foreign currency exchange restrictions by the Bank of Russia are expected to remain in effect until March 9, 2023.

The post Russian Central Bank Cuts FX Restrictions for Banks appeared first on theprimarymarket.com.

The EU ban, which came into effect on August 10, also prevents EU operators from providing auxiliary services such as financing to Russian coal suppliers and other shipments originating in Russia.

Although Russian coal exporters largely redirected shipments to Asia in an attempt to avoid the effects of the impending ban before it came into force, they continued to insure and reinsure their shipments with EU providers, whom they are no longer capable of relying on. These exporters will likely incur time-based and financial costs as they seek new insurance providers to work with.

With Russia controlling about 17% of global shipments, coal supplies are expected to be placed in jeopardy, particularly with an array of countries relying on Russian coal. Dmitry Smolin, an analyst at Sinara Investment Bank, expects that this will lead to a global price increase for coal as well as alternative energy sources such as LNG.

The post Russian Coal Exports Effectively Halted By EU Ban appeared first on theprimarymarket.com.

Data released by the General Administration of Customs on Saturday revealed that China had imported 7.42 million tonnes of Russian coal in July, thereby exceeding the 6.49 million tonnes in July 2021.

With the European ban on Russian coal coming into effect on 11 August, Russia has had to shift its focus to markets such as China and India, offering significant discounts in an effort to outprice competitors.

Aside from Russia, China also looked toward Indonesia’s cheap, low-quality thermal coal. The country imported 11.7 million tonnes of Indonesian coal in July, a 22% rise from June albeit a 40% slump from last year.

China has been working to reduce its imports in recent months amid a rise in local output. Still, southern China power plants continue to target Indonesian imports as they remain more affordable than domestic coal.

The post China’s July Coal Imports From Russia Hit 5-Year High appeared first on theprimarymarket.com.

Brent crude oil sailed above $91 per barrel following the announcement; the first time it hit this height in 10 months. According to Goldman Sachs’s previous forecasts, Brent oil would reach $86 per barrel in December and $93 by the end of 2024 barring any unforeseen drastic macroeconomic changes.

The investment bank expects Saudi oil supply to be 500,000 barrels below its previous expectations. Still, Goldman Sachs warned that price increases could be even more drastic than it expected if should output cuts be extended further than the end of 2023.

The post Oil Prices Expected To Surge Following Russian And Saudi Supply Cuts appeared first on theprimarymarket.com.

Contracts listed on the S&P 500 fell 0.09%, while those on the Dow Jones Industrial Average remained relatively unchanged. Futures on the Nasdaq Composite edged lower by 0.16%.

Following the recent turmoil in Russia, investors appeared to flock to investments that are typically considered safe havens. Gold prices rose by 0.5% on Monday morning.

Still, it did not seem as if investors were entirely discouraged by the latest developments in the Russian-Ukraine conflict. Bonds edged lower on a whole, with 10-year Treasury note falling by more than 10 basis points to 3.70%.

Investors are gearing up for the latest round of data on PCE inflation and consumer confidence due later this week. This data should provide an indication of the Federal Reserve’s next moves, with Fed Chair Jerome Powell signaling that more rate increases may come next week.

The post Futures Dip Following Latest Russia Developments appeared first on theprimarymarket.com.

While Europe still made use this winter of Russian imports that arrived in mid-2022, Eni SpA CEO Claudio Descalzi explained that the continent would look to eliminate Russian gas imports in their entirety next winter. This decision comes after the war in Ukraine escalated.

Equinor ASA CEO Anders Opedal confirmed that Norway is already producing gas at maximum capacity, emerging as a feasible supplier in place of Russia. Opedal warned, however, that in the event that gas demand rises due to extreme weather, Norway may need to increase its exports.

As Europe looks to acquire new sources of gas supply, U.S. oil production appears to be on the rise, with Occidental Petroleum Corp. expecting an increase of approximately 500,000 barrels this year; a 20% rise.

Fred Forthuber, president of the Occidental subsidiary that oversees the marketing of crude and natural gas, said that between 80% and 90% of the output increase is expected to come from the Permian Basin of West Texas and New Mexico.

The post Europe Prepares for Winter Without Russian Gas, CERAWeek Speakers Explain appeared first on theprimarymarket.com.

“It is the most significant set of market dislocations and distortions in energy markets generally speaking that I ever recall,” Ed Morse, global head of commodity research at Citi explained.

Morse observed the emergence of two sub-oil markets following the conflict’s outbreak, namely “a transparent oil market, and a non-transparent market.” On one hand, Russian oil exports to Europe have been largely redirected to Asia following Western-imposed sanctions, while Europe has largely sourced new energy suppliers, thereby almost eliminating its dependency on Russian oil.

Earlier this month, an E.U. ban on Russian oil product exports was imposed. This follows a G7 price cap on Russian oil in an attempt to weaken the country’s coffers.

Although the market continues to face much volatility, prices have been largely restabilized since the start of the Russia-Ukraine conflict. Following the invasion, West Texas Intermediate skyrocketed to a peak of $123.70 per barrel and Brent futures hit $127.98. As of Friday, West Texas Intermediate is hovering around $75 per barrel while Brent is approximately $82 per barrel.

The post Oil Market Notably Different After Ukraine Conflict, Economists Observe appeared first on theprimarymarket.com.

The parties agreed to convene during discussions following a virtual meeting held by US Deputy Treasury Secretary Wally Adeyemo with other deputy ministers.

“The Deputies agreed to an approach for refined products that will institute two distinct caps, in addition to the crude cap: one cap for products that generally trade at a premium to crude, such as diesel or gasoil, and one for products that trade at a discount to crude, such as fuel oil,” the Treasury Department confirmed.

Although some members of the price-cap coalition such as Poland and Estonia looked to impose a price cap below $60 per barrel in an effort to limit Russian revenues, the U.S. remains resolute to keep the price level consistent.

Last year, Europe imported about 220 million barrels of diesel-type products from Russia last year, data from Vortexa Ltd. compiled by Bloomberg revealed. With the continent aiming to limit its reliance on Russian supplies, there has been pressure to establish a price cap before the EU imposes a ban in February.

The post U.S. and Allies Agree to Review Russian Oil Price Cap appeared first on theprimarymarket.com.

In addition to the dollar, the rouble was also up 4.4% against the euro at 72.4 while gaining 2.1% against the yen at 9.71. Despite ongoing economic sanctions and investors’ concerns over their impact on the Russian oil and gas trades, the rouble has emerged as one of the strongest performers against the dollar, trailing only the Brazilian real.

Russia’s currency lost 8% over the past week, bringing its total loss for the month to 10%. According to the Russian finance ministry, this decline is attributed to recovering imports, however, concerns over the oil embargo and price cap have also shed investor confidence.

Brent crude oil, which is the global benchmark for what remains Russia’s main export, has reached a three-week high during its final trading session before the Christmas break, rising 3.7% to $84 per barrel.

The post Russian Rouble Gains Ground Following Heavy Weekly Slump appeared first on theprimarymarket.com.

Named the Group of 7 price cap, this latest sanction on the Russian oil trade was formulated with the aim of limiting the finances available to Russia as it continues its war efforts against Ukraine.

“These tools were created for political purposes and it is not clear yet whether they can achieve these political purposes,” Prince Abdulaziz said of the European sanctions. He added that central banks would also be preoccupied with implementing mechanisms to curb the ongoing inflation crisis.

While Russia claims that it may not be able to conform with the price caps, the OPEC+ alliance continues to restrict its own production. The alliance passed a decision on October 5 to cut its production by two million barrels per day. During a meeting on December 4, OPEC+ decided to keep its production levels unchanged as member nations continue to observe the oil market for changes amid the recent sanctions on Russia.

The post Results of Russian Energy Price Cap Still Unclear, Saudi Minister Claims appeared first on theprimarymarket.com.

Prior to the announcement, banks were only permitted to sell foreign currency cash that had been bought by individuals before April 9. With the new policy in place, banks are permitted to sell any foreign currency that has been obtained from other sources regardless of date of purchase.

“This is an additional tweak to the measures already in place, which allow for the increased supply of cash dollars and euros on the Russian market,” the Bank of Russia stated on Saturday as the new policy came into effect. While Russian banks have been permitted to sell any foreign currency apart from Dollars and Euros since May, this restriction has also been lifted.

Curbs on foreign currency exchange restrictions by the Bank of Russia are expected to remain in effect until March 9, 2023.

The post Russian Central Bank Cuts FX Restrictions for Banks appeared first on theprimarymarket.com.

The EU ban, which came into effect on August 10, also prevents EU operators from providing auxiliary services such as financing to Russian coal suppliers and other shipments originating in Russia.

Although Russian coal exporters largely redirected shipments to Asia in an attempt to avoid the effects of the impending ban before it came into force, they continued to insure and reinsure their shipments with EU providers, whom they are no longer capable of relying on. These exporters will likely incur time-based and financial costs as they seek new insurance providers to work with.

With Russia controlling about 17% of global shipments, coal supplies are expected to be placed in jeopardy, particularly with an array of countries relying on Russian coal. Dmitry Smolin, an analyst at Sinara Investment Bank, expects that this will lead to a global price increase for coal as well as alternative energy sources such as LNG.

The post Russian Coal Exports Effectively Halted By EU Ban appeared first on theprimarymarket.com.

Data released by the General Administration of Customs on Saturday revealed that China had imported 7.42 million tonnes of Russian coal in July, thereby exceeding the 6.49 million tonnes in July 2021.

With the European ban on Russian coal coming into effect on 11 August, Russia has had to shift its focus to markets such as China and India, offering significant discounts in an effort to outprice competitors.

Aside from Russia, China also looked toward Indonesia’s cheap, low-quality thermal coal. The country imported 11.7 million tonnes of Indonesian coal in July, a 22% rise from June albeit a 40% slump from last year.

China has been working to reduce its imports in recent months amid a rise in local output. Still, southern China power plants continue to target Indonesian imports as they remain more affordable than domestic coal.

The post China’s July Coal Imports From Russia Hit 5-Year High appeared first on theprimarymarket.com.