Oil heads for weekly gain as Saudi facilities come under attack | Oil and Gas News

New York futures reversed losses earlier in Friday’s session to trade near $113.

By Bloomberg

Oil headed for the first weekly gain in three weeks as the EU continued to debate how it could reduce its dependence on Russian exports and Saudi energy assets came under attack.

New York futures reversed losses earlier in Friday’s session to trade near $113. Houthi rebels in Yemen have claimed responsibility for a series of attacks on Saudi Aramco facilities, including an oil storage facility in Jeddah. Saudi Arabia warned this week that crude supplies were under threat and called on the United States to do more to counter attacks by Iran-backed rebels.

The attack on Aramco facilities is likely to cause near-term operational disruption and could temporarily reduce Saudi supply, said Rohan Reddy, research analyst at Global X Management, a company that manages $2 billion in assets. energy-related assets. “Wider geopolitical issues that persist in the country could lead to continued supply cuts and put upward pressure on oil prices.”

Oil is expected to gain this week for the first time in three weeks

Oil is up this week as the war in Ukraine continues to rattle an already tight commodity market. The United States and the United Kingdom decided to ban Russian oil in response to the invasion and many energy companies are also choosing to avoid the country’s crude. Still, buyers in China and India seem to be taking in some of those barrels. Russia is now aiming to ship the largest quantity of its flagship product from the Urals in nearly three years next month, dangling a supply carrot to oil refineries in Europe which are dealing with soaring oil prices. ‘energy.

EU industrial power Germany has said it plans to wean itself off Russian fossil fuels quickly, while warning that an immediate embargo is not possible because of the damage it would cause to the largest economy in Europe. The task will be difficult, especially without reducing demand from Germany at the same time. Austria also said it would not accept a ban on Russian oil and gas, calling the ban “unrealistic” for the country.

Prices:

  • West Texas Intermediate for May delivery rose 69 cents to $113.03 at 2:09 p.m. in New York
  • Brent for May settlement rose 49 cents to $119.52 a barrel

Oil markets remain retrograde, an uptrend marked by higher prices for barrels in the short term than those in the longer term. Brent’s rapid spread – the difference between its two closest contracts – was $3.25 a barrel on Friday, down from 41 cents at the start of the year. Initial margins have also risen, increasing trading costs and compounding trader pushback.

Coverage and Related Commentary:

  • Russia aims to ship the most of its flagship Urals crude in nearly three years next month, dangling a supply carrot to oil refineries in Europe that face prices of $120 a day. barrel if they continue to reject Moscow.
  • The jet fuel market is booming in the United States as its correlation to volatile diesel futures exacerbates tight supply.
  • CPC pipeline partially resumes crude loadings

Mary I. Bruner