Commentaries on Crude Oil

 

The Daily rig counts have decreased

 

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Russia suffering fuel crunch due to combination of factors.

Russia has temporarily banned exports of gasoline and diesel to all countries outside a circle of four ex-Soviet states with immediate effect in order to stabilize the domestic market, the government said on Thursday.

"Temporary restrictions will help saturate the fuel market, which in turn will reduce prices for consumers," the government said in a statement.

The ban is indefinite and further actions will depend on the saturation of the market, according to Russian First Deputy Energy Minister Pavel Sorokin.

"We expect that the market will feel the effect quickly enough. But then it will depend on the saturation of the market and the results," Sorokin said.

The government statement added: "Previously, to stabilise the situation on the fuel market, the government raised the mandatory supply volumes of motor gasoline and diesel fuel to the commodity exchange.

"Daily monitoring of fuel purchases for the needs of agricultural producers with prompt adjustment of volumes has also been set up."

rs focused on a tighter supply outlook after Moscow issued a temporary ban on fuel exports while remaining wary of further rate hikes that could dampen demand.

UPDATE:

The Russian government has approved some changes to its fuel export ban, lifting the restrictions for fuel used as bunkering for some vessels as well as diesel with high content of sulphur, a government document showed on Monday.

It also lifted restrictions on the export of fuel already accepted for export by the Russian Railways and Transneft (TRNF_p.MM) before the initial ban had been announced last week.

 

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"Crude oil prices have started the week on the front foot, as the market continues to digest Russia's temporary ban on diesel and gasoline exports, into an already tight market, offset with the Fed's hawkish message that rates will stay higher for longer," IG Markets analyst Tony Sycamore said.

China's manufacturing sector is expected to return to expansion mode in September, with the purchasing manufacturing index forecast to rise above 50 for the first time since March, Goldman Sachs analysts said.

Expectations of better economic data this week from China, the world's largest crude importer, also lifted sentiment. However, analysts flagged that oil prices face technical resistance at November 2022 highs that were hit last week.

 

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Tropical Storm Phillipe may do landfall by next week.