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 April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

M-I SWACO Unveils Fluid, Cuttings Separator

M-I SWACO, a Schlumberger company, announced today the release of the SCREEN PULSE fluid and cuttings separator. Easily installed onto new or existing shale shakers,

ENSCO 110, ENSCO 104 Contracted for UAE & M.E.

Ensco plc has entered into a three-year contract with NDC for a new premium jackup, ENSCO 110. This newbuild rig is scheduled to commence operations later this

Van Oord Develops Deep Dredging Solution

Over the past few years, Van Oord has developed a new technique for dredging at great water depths. This Deep Excavation System (DES) is an innovative method

Tanker Trends

Shipping Industry Faces Major Dilemma on BWM

The Round Table (RT) of International Shipping Organisations (comprising BIMCO, the International Chamber of Shipping, Intercargo and INTERTANKO) is deeply concerned

Golar Mulls Third FLNG deal

Golar LNG has signed a binding Heads of Terms with Ophir Energy Plc for the provision of the GoFLNG vessel Gimi.   Golar has started discussions with partners

Targa: Splitter, Terminal with Noble Still Under Consideration

Targa Resources Partners LP is working closely with Noble Group as Asia's biggest commodity trader evaluates whether to move forward a deal to support a Targa-built condensate splitter,

Finance

Maersk Issues 'letter of undertaking' to Iran

Maersk Line said on Wednesday it had provided a letter of undertaking in relation to uncollected cargo that has led to the seizure by Iranian authorities of the vessel Maersk Tigris.

Iran: Maersk Boxhip Dispute Near Settlement

Iran said on Wednesday a legal settlement could be reached soon over its seizure of the Marshall-Islands flagged Maersk Tigris container ship in the Strait of Hormuz last month,

Royal IHC, Dräger Join Forces

  Royal IHC and Dräger have joined forces to offer the market a single source for fully integrated Diving Support Vessels. The initial focus will lie

Maritime Security

At Greek port, Migrants Try for Italy

Rapper Mahdi Babika Mohamed's journey to a better life in Europe started in his native Sudan and passed through Libya and Turkey before abruptly ending in a squalid

Philippines, Japan Coast Guards in Anti-Piracy Drills

Philippine and Japanese coast guard teams staged an anti-piracy drill on Wednesday, featuring the storming of a cargo vessel after a mock hijack, in a show of maritime

Maersk Issues 'letter of undertaking' to Iran

Maersk Line said on Wednesday it had provided a letter of undertaking in relation to uncollected cargo that has led to the seizure by Iranian authorities of the vessel Maersk Tigris.

News

Ampelmann Opens Office in Houston

Ampelmann announced that it will open a new office in Houston, Texas as the next step in the company’s continued expansion.   Ampelmann said the new office strengthens

At Greek port, Migrants Try for Italy

Rapper Mahdi Babika Mohamed's journey to a better life in Europe started in his native Sudan and passed through Libya and Turkey before abruptly ending in a squalid

Philippines, Japan Coast Guards in Anti-Piracy Drills

Philippine and Japanese coast guard teams staged an anti-piracy drill on Wednesday, featuring the storming of a cargo vessel after a mock hijack, in a show of maritime

Government Update

At Greek port, Migrants Try for Italy

Rapper Mahdi Babika Mohamed's journey to a better life in Europe started in his native Sudan and passed through Libya and Turkey before abruptly ending in a squalid

Philippines, Japan Coast Guards in Anti-Piracy Drills

Philippine and Japanese coast guard teams staged an anti-piracy drill on Wednesday, featuring the storming of a cargo vessel after a mock hijack, in a show of maritime

Maersk Issues 'letter of undertaking' to Iran

Maersk Line said on Wednesday it had provided a letter of undertaking in relation to uncollected cargo that has led to the seizure by Iranian authorities of the vessel Maersk Tigris.

Offshore Energy

Ampelmann Opens Office in Houston

Ampelmann announced that it will open a new office in Houston, Texas as the next step in the company’s continued expansion.   Ampelmann said the new office strengthens

M-I SWACO Unveils Fluid, Cuttings Separator

M-I SWACO, a Schlumberger company, announced today the release of the SCREEN PULSE fluid and cuttings separator. Easily installed onto new or existing shale shakers,

ENSCO 110, ENSCO 104 Contracted for UAE & M.E.

Ensco plc has entered into a three-year contract with NDC for a new premium jackup, ENSCO 110. This newbuild rig is scheduled to commence operations later this

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators
rss | archive | history | articles | privacy | 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: 0.2023 sec (5 req/sec)