EnergyScan

Oil market news

ES-oil
May 25, 2022

Oil stable, between tight supply and risk of slowdown

Oil prices remained stable on Tuesday : ICE Brent front month ended the day with a +0.1% gain to $113.56/b. And, NYMEX WTI front month price settled -0.5% lower at $109.77/b. At start, the oil market went down as speakers at World Economic Forum expressed concerns about the path of…
ES-oil
May 24, 2022

Bullish and bearish forces compensated, oil was stable

Oil started the week stable: on ICE, Brent front month price went 0.7% up to $113.42/b. On NYMEX, WTI for July delivery was stable: settling $0.01 higher at $110.29/b. Lingering worries about the state of the economy in the coming months, with a risk of recession that would reduce oil demand,…
ES-oil
May 20, 2022

Oil follows equities markets

Oil prices climbed on Thursday, in a volatile trading session. On ICE, Brent for July delivery settled 2.7% higher to $112.04/b, the contract traded between $105.70/b and $112.31/b. On NYMEX, WTI front month made a 2.4% gain to stand at $112.21/b. At start, oil market was dragged lower as stocks continued…
ES-oil
May 19, 2022

Oil fell in the wake of equity market

Oil prices went down on Wednesday: ICE Brent for July delivery dropped by 2.5%, to settle at $109.11/b and NYMEX WTI for June delivery also decreased by 2.5% to $109.59/b. The increasing fears about economic growth and inflation knocked oil price down from a six-week high following the tumbling equity markets (see…
ES-oil
May 18, 2022

Powell’s comments drive price lower

Oil prices fell yesterday: ICE Brent for July delivery closed at $111.93/b, making a -2% loss, while NYMEX WTI first nearby prices settled at $112.40/b, down -1.6%. For the first time since May 2020, NYMEX WTI prices traded higher than ICE Brent prices. The market moved down at the end…
ES-oil
May 17, 2022

The end of the lockdown in Shanghai drives prices higher

Oil benchmarks started the week on a gain. ICE Brent climbed +2.4% to $114.24/b while NYMEX WTI front month price increased by 3.4% to settle at $114.20/b. The lockdown in China and the weak economic indicators released yesterday dragged oil, as the economic activity in the country seems more and more…
ES-oil
May 13, 2022

Oil stable as market receives mixed signals

Oil trade sideways on Tuesday: NYMEX WTI front month went +0.4% up to end the trading session at $106.13/b. ICE Brent front month closed stable, losing $0.06/b to $107.45/b. The trading session summarized the recent mixed prices moves. The gloomy economic situation (made of inflation, hawkish policy at the Fed and…
ES-oil
May 12, 2022

War in Ukraine triggers a rebound

Oil made a strong rebound on Wednesday: ICE Brent front month climbed by +4.9% to $107.51/b while NYMEX WTI front month gained +6.0% to settle at $105.71/b. Oil market was driven by the tensions related to the war in Ukraine. First as a major pipeline flowing gas from Russia to Europe…
ES-oil
May 11, 2022

Oil price fall on growth concerns and Hungarian veto

Oil benchmarks continued to drop on Tuesday: ICE Brent front month went -3.3% lower to settle at $102.46/b and  NYMEX WTI front month ended the trading session at $99.76/b, -3.2% lower. Concerns on the state of the economy are growing with Chinese’s lockdowns, the comments of the Fed to further increase…
ES-oil
May 10, 2022

Oil drops on global sell-off

Oil benchmarks slumped yesterday: ICE Brent front month lost -5.7% and ended the day at $105.94/b and NYMEX WTI front month closed -6.1% lower at $103.09/b. European diplomats scrapped the idea to ban European companies to ship Russian oil, as partners (in particular Greece, Malta and Cyprus) were opposed to…
ES-oil
May 9, 2022

G7 countries to halt import of Russian oil

Oil benchmarks climbed on Friday : NYMEX WTI front month posted at 1.4% gain to end the week at $109.77/b and ICE Brent front month ended the week 1.3% higher at $112.39/b. Last week, NYMEX WTI climbed by 5.5% and ICE Brent by 5.7%. On Friday, market was pushed up by…
ES-oil
May 6, 2022

European embargo drives the market higher

Oil benchmarks went modestly up yesterday. Front-month July ICE Brent futures settled +0.7% higher at $110.90/b and NYMEX WTI gained +0.4% to reach $108.26/b. The incoming embargo on Russian oil pushed the market up. Meanwhile, members of the European Union are working on a timeline to phase-out Russian oil that would…
ES-oil
May 5, 2022

The European Commission presents the embargo on Russian oil

Oil rallied on Wednesday: Brent futures traded on ICE edged +4.9% higher to $110.14/b and WTI futures traded on NYMEX gained +5.3% to settle at $107.81/b. The bullish market was fueled by the presentation by the European Commission of its plan to ban the import of oil from Russia in six…
ES-oil
May 4, 2022

Chinese prospects drive the market down

Oil prices slid on Tuesday, ICE Brent lost 2.4% to end at $104.97/b. NYMEX WTI went 2.6% down to settle at $102.41/b. Market participants continue to monitor the situation in China, where authorities could impose new restrictions to slow Covid-19 spreading but also the economic activity as a collateral damage. Lockdowns…
ES-oil
May 3, 2022

Another day of reversing market

Oil prices went up yesterday: on NYMEX, WTI front month gained less than 0.1%, ending at $105.17/b. On ICE, Brent price was +0.4% up to settle at $107.58/b. Market reversed at the end of the day, as Brent fell as low as $103.10/b during the session. The main concern was…
ES-oil
May 2, 2022

Another day with an undecided market

Friday was a volatile session, with oil prices reverting at the end of the day: NYMEX front month WTI went down by 0.01% to end the week at $104.69/b and the second-month ICE Brent contract settled at $107.14/b or $0.12 lower. At first, the market continued to climb on Thursday’s comment…
ES-oil
April 29, 2022

Germany moves closer to ban Russian oil

Oil prices rallied on Thursday. The ICE Brent front-month end the day at $107.59/b a 2.1% increase and NYMEX WTI front-month closed 3.3% higher at $105.36/b. The move was triggered by the comment of the German Economy Minister who said that Germany, a country that was reliant on oil deliveries from…
ES-oil
April 28, 2022

Oil stable as news moves the market up and down

Oil benchmarks were mixed yesterday, they started moving up, the Brent reached $106.35/b, then the market made a U-turn and Brent touched $103.27/b to end the day at $105.32/b gaining less than 0.01%. NYMEX WTI front month followed a similar path to close stable at $102.2/b. At first it was…
ES-oil
April 27, 2022

Chinese Central Bank reverse the oil price downward trend

Oil benchmarks bounced back yesterday: at market close, ICE Brent Front month settled at $104.99/b climbing by +2.6% while the NYMEX WTI closed +3.2% higher at $101.70/b. Monday prices drop was driven by the prospect of an economic slowdown in China due to zero-Covid strategy with stringent lockdowns, Tuesday turn…
ES-oil
April 26, 2022

Covid wave in China triggered oil prices drop

Oil prices plunged yesterday, before recovering somewhat, in line with the US stock market: the ICE Brent front month fell to $99.5/b, before rebounding to $102.32/b at the end of the day (-4.1%). It is trading around $103/b this morning. The NYMEX WTI front month fell by 3.5% to end the…
ES-oil
April 25, 2022

Oil is down but risks of supply short are stronger

Brent 1st-nearby declined on Friday, by 1.6% to $106.65/b while the NYMEX WTI went 1.7% down to end the week at $102.07/b. Prices are further down this morning, the Brent now trading below $103/b, mainly due to renewed worries about the pandemic in China (see the Daily Eco). Oil benchmarks…
ES-oil
April 22, 2022

Will the shock come from supply or demand?

On Thursday, crude oil prices increased, by 1.6% to reach $ 103.79/b for the front month WTI and by 1.4% to close at $108.33/b for the Brent. Traders are still mixed between risks of supply shocks from one side with Libya unable to produce 500 kb a day, the potential ban on…
ES-oil
April 21, 2022

Oil is stable, market is waiting

Crude oil prices were sideways on Wednesday. Brent first nearby prices decreased by 0.4% to close at $106.70/b while WTI prics did not move to settle at $102.75/b at the end of the session. Volatility was low, WTI prices traded in a tight band of $100.70 – $104.16 as traders did not…
ES-oil
April 20, 2022

Demand concerns drag crude prices down

Crude oil prices slumped on Tuesday, pressured by the downward revision in the IMF global growth forecast (see macro comment) which fueled concerns over energy demand prospects in the short-term. Benchmark contracts traded once again in a large range, showing that uncertainty over the supply/demand outlook remains high and fuels volatility. Brent…
ES-oil
April 19, 2022

Libyan oil disruption push crude prices further high

Brent first nearby prices moved further north of the $110/b mark and recorded a fourth consecutive session in positive territory with an intraday high at $114.84/b on Easter Monday, supported by a drop in Libyan oil production and expectations of a progressive loosening of Covid restrictions in Shanghai. Indeed, Libya’s National Oil Corp…
ES-oil
April 15, 2022

Crude prices spike on reports the EU plans to ban Russian oil

Crude oil prices jumped late in the afternoon on Thursday, pushed by reports from the New York Times that the EU is drafting a ban on Russian oil products. The measure should not be assessed into details before the second round of the French presidential election planned on April 24…
ES-oil
April 14, 2022

Bulls keep control of crude oil prices

Crude oil prices continue to strengthen with Brent first nearby prices trading as high as $109/b yesterday, buoyed by expectations of an easing monetary policy in China (see macro comment) and latest monthly reports from international agencies pointing to a sharp downturn of Russian crude oil production due to the impact of Western sanctions. …
ES-oil
April 11, 2022

Worsening Covid spread in China to weigh on crude prices

Brent first nearby prices opened Monday’s trading session in negative territory just above the $100/b mark, pressured by a rising number of Covid cases in the Shanghai area with no clarity on when restrictions will be lifted. The massive crude stock releases from strategic reserves announced since the beginning of the month continue to…
ES-oil
April 8, 2022

Bears keep control of crude prices

Brent first nearby prices are hovering above the $100/b mark this morning after touching an intraday low at $98.41b yesterday. They remain pressured by the massive 240 Mb stock release from strategic reserves announced over the past few days and mounting concerns over China’s oil demand. Indeed, China’s oil consumption…
ES-oil
April 7, 2022

Additional IEA stock release weighs on crude oil prices

Crude oil prices posted significant losses on Wednesday as the IEA announced an additional 60 Mb release from strategic stocks of its members, on top of the 180 Mb release from US SPR announced last week by the US President Biden. Brent 1st nearby prices dropped to an intraday low at $100.54/b. In…
ES-oil
April 6, 2022

Mixed picture for crude prices

After a strong start, Brent prices turned slightly negative on Tuesday afternoon and touched an intraday low at $104.53/b, pressured by a stronger USD following Lael Brainard’s statement (see Macro comment) and renewed concerns over the impact on China’s crude oil demand of an extended COVID lockdown in Shanghai (confirmed…
ES-oil
April 5, 2022

Crude prices up on expectations of new EU sanctions against Russia

Brent prices built some risk premium on Monday with the first nearby contract trading just below the $110/b mark this morning, mainly supported by prospect of tougher sanctions against Russia for alleged atrocities during its war in Ukraine. French President Macron notably called for a ban on Russian coal and oil…
ES-oil
April 4, 2022

The price of Brent crude oil has stabilised at around $105/b

There has been very little change in oil prices since their sharp decline following the announcement of the use of US strategic reserves. The price of Brent 1st-nearby has for the moment stabilised in a fairly narrow range, between $104 and $106/b. US allies in the IEA have confirmed that they…
ES-oil
April 1, 2022

Sharp decline in crude oil prices

As we reported yesterday morning, the Biden Administration has announced that it will draw on its strategic reserves in a colossal way, as nearly 1mb/d of oil will be put on the market for about 6 months, or a total of 180mb. President Biden said he hoped that allied countries could…
ES-oil
March 31, 2022

US to tap into strategic reserves

In less than 2 hours yesterday, the price of Brent 1st-nearby first approached $115/b before plunging towards $104/b. It has since recovered to around $113/b.  Fears of the consequences of the restrictive measures taken in Shanghai to curb the pandemic and hopes for peace in Ukraine on a rather shaky basis at the moment (see Daily…
ES-oil
March 30, 2022

Extreme price volatility

In less than 2 hours yesterday, the price of Brent 1st-nearby first approached $115/b before plunging towards $104/b. It has since recovered to around $113/b.  Fears of the consequences of the restrictive measures taken in Shanghai to curb the pandemic and hopes for peace in Ukraine on a rather shaky basis at the moment (see Daily…
ES-oil
March 29, 2022

Sharp drop in prices due to fears of falling demand in China

Anti-Covid measures in China, particularly in Shanghai, have led to a sharp fall in oil prices, with Brent 1st-nearby falling from $120/b at the end of last week to below $110/b last night. It has since stabilised at around $111-112/b. The resumption of negotiations between Russia and Ukraine is also contributing to…
ES-oil
March 28, 2022

Prices fall on fears of lower Chinese demand

The price of Brent 1st-nearby fell back to around $116b after ending the week at around $120/b. The main reason for this decline comes from China where the rapid spread of the Covid epidemic will lead the authorities to impose containment measures in Shanghai, in order to carry out a large-scale testing…
ES-oil
March 25, 2022

No agreement in Europe on stopping Russian oil imports immediately

This was to be expected. Some European countries are too dependent on oil from Russia to declare an embargo overnight. This is particularly true of Austria and several Eastern European countries, but also of Germany, which gets 1/3 of its oil from Russia. On this point, Joe Biden’s visit will not have…
ES-oil
March 24, 2022

Brent crude oil price exceeds $120/b

The price of Brent crude oil rose by almost $7/b yesterday. It even almost touched $124/b overnight before falling back towards $120/b. The market is extremely volatile ahead of the announcement of new sanctions against Russia during the US President’s visit to Europe. Yesterday, the main news agitating the market and…
ES-oil
March 23, 2022

Russian flows still in the spotlight

Ahead of meetings of Nato countries and a new EU summit, the US continues to press the EU for further sanctions against Russia, particularly in the energy field. By a disturbing coincidence, the Caspian Pipeline Consortium (whose main shareholder is Russian) has announced that necessary repairs to the pipeline that transports mainly…
ES-oil
March 22, 2022

EU discusses possible embargo on Russian oil imports

Officially, nothing has been decided and some countries, starting with Germany, remain opposed to stopping oil imports from Russia because they have no immediate alternative. But the subject came back to the fore yesterday at the meeting of EU Foreign Ministers and the fact that it was the Lithuanian Minister who spoke…
ES-oil
March 21, 2022

The price recovery continues

Brent 1st-nearby is approaching $112/b this morning. Concerns about Russian oil flows have been compounded by a new episode of tension in the Middle East, with attacks by Yemeni Houthi rebels on oil facilities in Saudi Arabia. There were at least 6 attacks over the weekend. One might add, almost anecdotally,…
ES-oil
March 18, 2022

Very strong rebound in oil prices

The downturn in prices based mainly on the idea that the conflict in Ukraine could quickly end seemed to be exaggerated. This was confirmed yesterday, as soon as serious doubts reappeared about the validity of this scenario. In addition, statements from Chinese leaders suggested that restrictive measures to stop the…
ES-oil
March 17, 2022

The decline in oil prices has come to a halt

The fall seems to have stopped: the price of Brent had lost around $30/b in a week and even more if we consider the peak of $139/b reached briefly. For the past two days, it has been hovering around $100/b and is even showing signs of a rebound. It is true that…
ES-oil
March 16, 2022

Brent prices (briefly) trade below the $100/b mark

Brent 1st-nearby prices traded to their lowest level since late February at $97.44/b in another volatile trading session on Tuesday, mainly pressured by demand-side concerns on the back of mounting lockdown measures due to a Covid-19 resurgence in China. The OPEC underlined “the slowdown of economic growth” with “rising inflation and…
ES-oil
March 10, 2022

Very sharp decline in oil prices, now slowly recovering

Extraordinary volatility in crude oil prices, with Brent crude losing $26 intraday. It touched $105 after rising to $139 earlier this week. But things are moving really fast, as it is already back near $115 this morning.  Yesterday’s decline was initially part of a wider correction in the financial markets…
ES-oil
March 9, 2022

US and UK embargo on Russian oil

A new milestone has been reached with the decision of the US and the UK to attack Russia’s revenues from hydrocarbon exports. Of course, they can do so because their imports from Russia are still relatively limited (8% of the total for the US, crude and products), which is not…
ES-oil
March 8, 2022

Russia hinders the return of Iranian oil

Brent 1st-nearby briefly fell back below $120/b yesterday before rising again and now trading above $126/b. The price levels are so high that one gets used to huge intraday swings. All of this reflects the instability of the market and the very high level of uncertainty. The US administration seems very…

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