World News
Oil Dips As Washington Revisits Russia/Ukraine PeaceDeal
Washington once again attempting to broker peace between Russia and Ukraine caused oil prices on Thursday to slide, but the losses were minuscule.
Brent settled down 13 cents $63.38 per barrel, and West Texas Intermediate settled down 30 cents at $59.14 per barrel.
The reason traders responded to the latest peace deal concocted by U.S. president Donald Trump was because Ukraine's President Volodymyr Zelenskiy didn't reject key proposals, including ceding territory to Russia and reducing his armed forces; instead, he said he would consider them.
Phil Flynn, senior market analyst with Price Futures Group Inc., echoed the surprise of many of his colleagues by stating, "A lot of people thought this new proposal would be dead on arrival with Zelenskiy, but he didn't dismiss it out of hand.
"Now the billion-dollar question is are the sanctions going to go into effect tomorrow? If they are close they might get lifted or delayed."
Meanwhile, the U.S. Energy Information Administration disclosed that crude stockpiles fell by 3.4 million barrels to 424.2 million in the week ended November 14, compared with expectations of a 603,000 barrel draw.
However, ruining the chance of more robust trading activity on Thursday were gasoline and distillate stocks, which increased for the first time in over a month.
Another trading influencer, according to Barchart, was "a sharp reversal in stock prices on Thursday, which sent prices lower on the day, sparked risk-off sentiment in asset markets and undercut crude prices."
In other oil news on Thursday, an indication of how seriously India is taking the warning from Washington not to purchase Russian crude was that country's Reliance Industries, which reports stated has officially stopped importing Russian crude into its Jamnagar refining complex as of November 20.
The company said all product shipped from December 1 onward will be made exclusively from non-Russian crude.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 459.50 | 6.50 | 760.00 | 3.00 |
| Rotterdam | 425.00 | 0.50 | 741.50 | 0.50 |
| Houston | 439.50 | 3.50 | 740.50 | 8.00 |
| Fujairah | 452.00 | 7.50 | 744.00 | 7.00 |
| Global 20 Ports Average | 486.50 | 3.50 | 811.50 | 10.00 |
| Global 4 Ports Average | 444.00 | 3.00 | 746.50 | 0.50 |
| Global Average Bunker Price | 524.00 | 13.00 | 839.00 | 3.50 |
Popular Now More
-
Nov 20The government is understood to be preparing to set up the new rule, and has already distributed some funds to barge owners to subsidise the investment. -
Nov 20The vessel came to Singapore from India earlier this month. -
Nov 19The shipping and bunkering industries are engaged in soul-searching over what can be salvaged from global decarbonisation efforts after last month's decision to delay.