Oil falls below $110 as Ukraine worries ease

marinelink.com
Tuesday, March 04, 2014

Putin orders troops in military exercise back to base. U.S., EU warn Russia could face sanctions over Crimea; U.S. crude inventory likely rose 1 mln bbls last week.

Oil fell more than $1 on Tuesday to below $110 a barrel after President Vladimir Putin recalled troops to base from military exercises in western Russia near its borders with Ukraine.

April Brent crude was down $1.47 at $109.73 a barrel by 0900 GMT. It closed the previous session at its highest since Dec. 27.

U.S. crude for April delivery fell as low as $103.60, after reaching a 5-1/2-month high at $105.22 on Monday. The contract was currently down $1.11 at $103.81.

Russia invaded Ukraine's autonomous Crimea region at the weekend, and the United States and the European Union have threatened sanctions if Moscow does not withdraw its troops.

This prompted fears that supply out of Russia, the world's second-biggest crude oil exporter, could be disrupted or subject to sanctions.

Putin's order to recall troops raised investors' hopes, however, for a peaceful resolution between the two, with Asian and European equities turning higher and commodities such as oil and gold falling.

There was no word on the movement of Russian forces that have effectively occupied much of Crimea.

Imports of Russian oil are so crucial for Europe that it is unlikely sanctions will be imposed, said Seth Kleinman, head of energy research at Citi.

"As this dispute now puts a question mark over about 50 percent of northwest Europe's crude imports, a rise in the risk premium is justified," he said.

"But Russia is such a critical supplier of oil and gas to Europe and the world that the odds of sanctions impacting these flows remains small."

Russia paid a heavy financial price on Monday for its military intervention in Ukraine. Stocks, bonds and the rouble plunged as investors dumped riskier assets in favour of commodities such as gold and oil.

In the gas market, a mild winter and improved infrastructure mean Europe and Ukraine are less reliant on Russian supplies than in past years, easing worries that the escalating crisis in Ukraine could lead to shortages.

Investors were also looking to weekly U.S. oil inventory data later on Tuesday and on Wednesday to assess demand in the world's largest oil consumer.

U.S. commercial crude oil inventories are expected to have risen by 1 million barrels on average last week, while stockpiles of refined oil products probably dropped, a preliminary Reuters poll of five analysts showed.

The American Petroleum Institute will release its data on Tuesday at 4:30 p.m. EST (2130 GMT). The government's Energy Information Administration will publish its data on Wednesday at 10:30 a.m. EST (1530 GMT).

By Simon Falush 

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

Energy

Khamenei Says Iran Nuclear Weapons are a U.S. "Myth"

Iran's Supreme Leader Ayatollah Ali Khamenei told military commanders on Sunday the United States had created the "myth" of nuclear weapons to portray Iran as a threat,

New CEO for Evergas

Evergas has appointed Steffen Jacobsen as CEO of the company as of 8 May 2015 Mr. Jacobsen joined Evergas 1 February 2015 as Vice President, Fleet after almost 35 years in Maersk.

Icebreakers Ordered for Neft’s Novy Port Project

Aker Arctic’s icebreaker design selected for Gazprom Neft’s Novy Port project   Aker Arctic and Vyborg Shipyard have confirmed a contract for the design of two

LNG

Solving the LNG Propulsion Puzzle

The last piece of the LNG infrastructure puzzle, in the form of North America’s first LNG bunker barge, falls into place at Conrad’s Orange, Texas Shipyard. With

LNG Emergency, Incident Response Study

Safety around Liquefied Natural Gas (LNG) is a hot topic, now that LNG is more and more becoming the fuel of the future. The results of a recent LNG emergency

Sea Star Line, ACT Sign LNG Bunkering System Agreement

System will be the first of its kind in the US for maritime industry   Sea Star Line, LLC and Applied Cryo Technologies (ACT), in cooperation with Dragon Products,

News

China Shipbuilders may Merge to Stay Afloat

The China's four state-run shipping-related companies  are reportedly in the initial phases of combining units in order to beef up the national shipbuilding industry, says local media.

Termination of Seadrill Unit's and Rosneft Deal Extended

North Atlantic Drilling (NADL), a subsidiary of Seadrill, will delay the closing of a deal with Russia's Rosneft by two years and has agreed to renegotiate the terms of the agreement,

Taiwan's Yang Ming Marine to Add Bigger Vessels to its Fleet

Yang Ming Marine Transport Corporation, Taiwnanese global shipping and logistics services company,  will take delivery of 14 large-sized ships over the next two years,

Government Update

USN Names Littoral Combat Ship

Secretary of the Navy Ray Mabus announced today that the next Freedom-variant littoral combat ship (LCS) will be named USS St. Louis. The future USS St. Louis,

China Snubs G7 Declaration on Sea Row

Reacting to recent declaration of  the Group of Seven (G7) major nations' Foreign Ministers on maritime , China said “the situation of this region is generally stable,

Newport News Shipbuilding Hosts Sen. Inhofe

Huntington Ingalls Industries (HII) today hosted Sen. James M. Inhofe, R-Okla., for a tour of the company's Newport News Shipbuilding division.   The senator,

Logistics

Greek Capesize and Maersk Boxship Mishap in Suez Canal

The Danish container ship Susan Maersk has collided with the container ship Margret Oldendorff flying the Libyan flag.   The 347 meter long, 110387 dwt container

China Shipbuilders may Merge to Stay Afloat

The China's four state-run shipping-related companies  are reportedly in the initial phases of combining units in order to beef up the national shipbuilding industry, says local media.

Termination of Seadrill Unit's and Rosneft Deal Extended

North Atlantic Drilling (NADL), a subsidiary of Seadrill, will delay the closing of a deal with Russia's Rosneft by two years and has agreed to renegotiate the terms of the agreement,

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Ship Repair Shipbuilding / Vessel Construction Sonar
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: 0.2216 sec (5 req/sec)