Clipper Oil: Latest Fuel News - Putin's Oil Exports Capped at USD60/Barrel: Now What?

Latest Fuel News

December 2022

Putin's Oil Exports Capped at USD60/Barrel: Now What?

There are interesting times ahead in the tanker market. From December 5, the European Union ban on imports of Russian oil will kick in, with a minor exception for Bulgaria, which has been given longer to supply. And, on Friday, in a move meant to restrict Russian profits on oil exports worldwide, the member countries of the Price Cap Coalition (basically the G7, the EU and Australia) on Friday agreed to put a price cap of $60/barrel on seaborne crude oil of Russian Federation origin.

On Sunday, the OPEC-plus countries, which include Russia decided to make no cuts in oil production additional to those they announced back in October. That’s seen as intended to keep oil prices stable, at least for now.

What are the implications of all this? In his latest weekly Tanker Opinion, Erik Broekhuizen of Poten and Partners notes that “currently, Russia is selling its oil well below [the $60 level]. Earlier this week, Urals out of Primorsk were sold below $50/barrel.” Continue reading here (Source: MarineLog).

US Gas Prices Plunge Toward USD3/Gallon as Demand Drops Worldwide

The cost of gasoline is falling so fast that it is beginning to put real money back in the pockets of drivers, defying earlier projections and offering an unexpected gift for the holidays.

Filling up is now as cheap as it was in February, just before Russia’s invasion of Ukraine touched off a global energy crisis. AAA reported the average nationwide price of a gallon of regular Wednesday was $3.50, and gas price tracking company GasBuddy projected it could drop below $3 by Christmas. And all of that relief probably helped drive robust shopping over Thanksgiving weekend. Continue reading here (Source: The Washington Post).

How a Cap on Russian Oil Prices Could Affect US Consumers

U.S. gas prices have been up and down throughout the year and now more uncertainty is on the horizon as a European Union embargo on Russian oil imports kicks in along with a price cap on crude out of Russia Continue reading here (Source: The Wall Street Journal).

Russian Oil Price Cap: Five Things You Need to Know

A price cap set by the Group of Seven (G7) as well as an outright ban by the European Union on Russian seaborne oil came into effect on Monday as the two blocs try to reduce the Kremlin’s ability to continue financing the war in Ukraine.

On Friday, the G7, EU and Australia agreed to set a limit on the price of Russian oil at $60 per barrel. Back in May, the EU announced a ban on Russian seaborne crude oil. The 27-member bloc also said a ban on imports of refined petroleum products will be enforced from February 5.

The ban covers more than two-thirds of Russian oil imports coming into the EU, according to European Council President Charles Michel. He referred to this ban as a symbol of EU unity and said in a tweet that it puts “maximum pressure on Russia to end the war”. Continue reading here (Source: Energy Wire).

US Natural Gas Futures Fall 3% on Forecasts for Less Cold Than Expected

US natural gas futures fell about 3% to a two-week low on Friday on forecasts for less cold weather and lower demand over the next two weeks than previously expected. That milder weather should allow utilities to leave more gas in storage. Gas stockpiles were currently about 2.4% below the five-year (2017-2021) average for this time of year.

Another factor weighing on prices this week has been efforts by the U.S. government to reduce the risk of a railroad worker strike. A rail strike would have cut coal deliveries to power plants, forcing generators to burn more gas to produce electricity. U.S. President Joe Biden is set to sign railroad-related legislation that will block a rail strike that could have wrecked the nation's economy. Continue reading here (Source: Yahoo Finance).

Gasoline Prices Continue to Plummet in the US

After a relentless month’s long climb, U.S. national average gas prices have declined, falling 16 cents from a week ago to $3.403 per gallon on Monday as per AAA. Gas prices have now declined 43 cents over the past 30 days, and are only $1.01 cents higher than a year ago.

However, GasBuddy data compiled from more than 11 million individual price reports covering over 150,000 gas stations across the country show that gas prices are actually lower than where they sat 12 months ago.

“For the first time in 670 days, the national average price of gasoline has fallen below its year-ago level, dropping for the fourth straight week to its lowest level since January,” said Patrick De Haan, head of petroleum analysis at GasBuddy. Continue reading here (Source: OilPrice).