G7 summit push prices higher

Oil prices moved up yesterday : ICE Brent settled at $115.09/b making a 1.7% gain. And NYMEX WTI front month closed at $109.57/b, that is 1.8% higher.

Prices jumped on the G7 summit at Elmau, where country leaders are talking about new sanctions against Russia. Russian oil industry is in the crossbow of the group of wealthy nations, and in particular the money Moscow is making by selling oil. One plan is to put a cap on Russian oil sold on global markets. The final statement is due today, according to the Financial Times, leaders would write they will explore the “feasibility” of such cap.

Other supports were updates from Libya, where the National Oil Corporation said it might be necessary to stop exports from the East of the country (where most field and refineries are located) due to political unrest, the country produced 1.4mb/d before recent disruptions. And from Ecuador where, all production could be halted within 24h, here again due to political unrest, the country produces 520kb/d.

According to a technical document seen by Reuters and written for this week meeting of OPEC+ members, the cartel sees oil balance at +1.0mb/d in 2022, significantly below the previous estimate of +1.4mb/d.

This morning, oil extends gains, NYMEX WTI trades 1.8% higher, as Saudi Arabia and UAE said there have no significant spare capacity.