Pressured market

The pressure keeps building in the crude market, with ICE Brent crude rallying close to 88 $/b at the prompt this morning in a backdrop of Middle-eastern tensions, as Iran-backed Houthis in Yemen struck the UAE with a deadly drone attack on fuel trucks near Abu Dhabi’s airport. Yemen’s Houthi attacks were generally aimed at Saudi Arabia, the largest belligerent of the region in the Yemen war. The escalation in the region was likely, as UAE’s foreign ministry mentioned retaliations. Apart from Brent crude price rallying strongly, diesel prices are also soaring, with ICE Gasoil cracks now at 14.35 $/b and a backwardation two times stronger than Brent’s backwardation (currently at 75 cents). In Europe, as denoted by the European Commission’s economic bulletin, prices are reaching all-time highs, as the dollar remained strong in a post-pandemic era, contrary to the period of high dollar-denominated prices in 2010-2014 era. Furthermore, tax burdens were added progressively to fuel prices to support investment in renewable energy. 

Share this news :

You might also read :

ES-oil
September 27, 2021

Unwind week ahead of OPEC+ meeting?

Crude markets continued to be boosted by winter demand expectations, as the ICE Brent November contract reached 79 $/b. The commitment of traders report showed…
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…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet? 

[booked-calendar]