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 through Ukraine stopped operating and later on the day as Russia announced sanctions to stop export of product and raw materials to thirty-five Westerns companies.

Prices were also pushed higher as the number of Covid-19 cases in Beijing is starting to go down, and with the report of a lower factory-gate inflation in China that could open the door to a monetary stimulus.

The EIA published its Weekly Petroleum Status Report: crude oil inventory grew by 8mb last week. In fact, it is the release of 7.0mb from the strategic petroleum reserve that explains most of the stock build. However, under low refining capacities and boycotts of Russian supply, products inventory continued to shrink: -3.6mb for gasoline and -0.9mb for fuel oil, fuel oil inventory reach its lowest level since May 2005.

Today, recession fears are going back (see daily Eco comment) and oil market is down: ICE Brent trades -1.4% lower and NYMEX WTI -1.6% lower.

Share this news :

You might also read :

June 18, 2021

EUAs traded rangebound after an early weakness

The European power spot prices remained overall stable yesterday as the expectations of increased French nuclear generation offset the forecasts of slightly weaker wind and…
January 7, 2022

Watch out for the US job report

European equity markets fell yesterday after the shock of the Fed minutes, but they have almost stabilised in the US and the trend has reversed…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?