Brent eases below $108 on Ukraine diplomacy

marinelink.com
Thursday, March 06, 2014

EU leaders set to warn, not sanction Russia; U.S. crude stocks rise more than expected. U.S. jobs data, services data point to lower oil demand.

By Shadi Bushra

Brent crude reversed gains made earlier on Thursday after Crimea's parliament voted unanimously to join Russia, even as the West and Russia engaged in high-stakes diplomacy to cool the crisis in Ukraine.

The announcement sets a referendum on the future of Crimea in 10 days, raising the stakes in the most serious East-West confrontation since the end of the Cold War.

The North Sea benchmark has fallen $4 since reaching two-month highs on Monday, when worries of an armed conflict between Ukraine and Russia peaked.

"The Crimea announcement is probably expected by markets as the majority of the population there is Russian," said Andrey Kryuchenkov, an analyst at VTB Capital.

"But the warmongering rhetoric is out of the way so for now we're waiting on the diplomatic negotiations, which are slow, but they're going on. The political risk premium has been reduced."

Brent was down 22 cents at $107.54 at 1248 GMT, after settling $1.54 lower. The contract hit $112.39 on Monday, its highest since Dec. 30.

U.S. crude was 80 cents lower at $100.65, after dropping $1.88 in the previous session.

Diplomats said the decision could not have been made without Russian President Vladimir Putin's approval, and that far from seeking a diplomatic way out, Putin appears to have chosen to create facts on the ground before the West can agree on more than token action against him.

European Union leaders meeting in Brussels were set to warn but not sanction Russia, whose forces have seized control of Ukraine's Crimea region. The foreign ministers of Russia and the United States are due to meet again on Thursday in Rome.

Oil was pressured further by a larger than expected rise in U.S. crude stocks and data showing U.S. private employers in the added fewer workers than forecast in February.

U.S. crude oil stockpiles rose more than expected last week as imports increased and refinery output fell, data from the Energy Information Administration (EIA) showed on Wednesday.

Crude oil inventories rose by 1.4 million barrels in the week ending Feb. 28, compared with analyst expectations for a build of 1.3 million barrels.

Crude stocks at the U.S. WTI benchmark delivery point in Cushing, Oklahoma, fell for a fifth straight week, following the start-up of the Keystone XL pipeline to the Gulf coast.

Further weighing on oil demand, U.S. oil refiners are expected to take 1,608,000 bpd of capacity offline in the week ending March 7, up from 1,412,000 bpd the previous week, data from research company IIR showed.

"With upcoming refinery maintenance on top of the Ukraine situation, there's not much support for oil prices at the moment," Kryuchenkov said.

 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Statoil Invests $1.5b in US Offshore Project

Statoil together with co-owners in the Stampede development in the Gulf of Mexicohas sanctioned the Stampede project in the U.S. Gulf of Mexico. Statoil said it will invest $1.

Vale CEO: Coal Deal Soon

Brazilian mining company Vale SA is close to making a "strategic" announcement concerning its coal unit, the company's chief executive Murilio Ferreira said on

NAO Announces Financials, Declares Dividend

Nordic American Offshore Ltd. has declared a dividend of $0.45 per share for 3Q2014, as previously announced. This is the same dividend as for the previous two quarters.

Maritime Security

Partnerships Key to Caribbean Maritime Security

Planning and execution of port and maritime safety and security in Caribbean region is all about partnerships Maritime security and safety experts are meeting in Nassau,

Warships Heading to Albany

HMAS Stuart and Japanese Defense Ship Kirisame departed Fleet Base West late yesterday to participate in the Albany Convoy Commemorative Event this weekend.   The

Maritime Piracy: Attacks Down, SE Asia Remains Problematic

While the issue of maritime piracy has largely fallen from the public eye, with the rapid evolution of the 24/7/365 news cycle and a never-ending list of new and globally interesting headlines,

News

Two Great Lakes Toxic Hotspots Restored

EPA announces removal of two toxic hotspots on Lake Superior and Lake Michigan from binational list The U.S. Environmental Protection Agency today announced that two U.

Statoil Invests $1.5b in US Offshore Project

Statoil together with co-owners in the Stampede development in the Gulf of Mexicohas sanctioned the Stampede project in the U.S. Gulf of Mexico. Statoil said it will invest $1.

CMA CGM to Retrofit 10 More Bulbous Bows

The CMA CGM Group said it will retrofit 10 of its vessels’ bulbous bows to achieve improved energy efficiency for slow steaming. The modifications are in addition

Government Update

Two Great Lakes Toxic Hotspots Restored

EPA announces removal of two toxic hotspots on Lake Superior and Lake Michigan from binational list The U.S. Environmental Protection Agency today announced that two U.

First Libra Offshore Oil Well Confirms Discovery

Libra consortium reports that drilling the first well in the area extension of Libra, the 3-BRSA-1255-RJS (3-RJS-731), confirmed the discovery of good quality

Monitoring U.S. Troops Returning from Ebola Mission

Secretary Hagel has signed an order that validated a recommendation from the Joint Chiefs of Staff to place all U.S. military service members returning from

Offshore Energy

Statoil Invests $1.5b in US Offshore Project

Statoil together with co-owners in the Stampede development in the Gulf of Mexicohas sanctioned the Stampede project in the U.S. Gulf of Mexico. Statoil said it will invest $1.

Experimental Floating Wind Farm Nears Installation

Launched in March 2012, the Fukushima experimental offshore floating wind farm project sponsored by the Ministry of Economy, Trade and Industry is nearing the installation

NAO Announces Financials, Declares Dividend

Nordic American Offshore Ltd. has declared a dividend of $0.45 per share for 3Q2014, as previously announced. This is the same dividend as for the previous two quarters.

 
 
Maritime Standards Navigation Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1806 sec (6 req/sec)