Oil Prices Remain Near Four-Month Highs
OIL & GAS

Oil Prices Remain Near Four-Month Highs

Oil prices slipped at market open but remained near four-month highs as Chinese and Indian buyers sought new suppliers in the wake of the Biden administration's toughest sanctions yet on Russian oil. Brent LCOc1 futures slipped 22 cents, or 0.27%, to $80.79 a barrel by 0122 GMT, while U.S. West Texas Intermediate (WTI) crude fell 16 cents, or 0.2% to $78.66 a barrel. That followed roughly 2% gains in Monday trading, after the U.S. Treasury Department on Friday imposed sanctions on Gazprom Neft and Surgutneftegas as well as 183 vessels that trade oil as part of Russia's so-called "shadow fleet" of tankers. The move is expected to cost Russia billions of dollars per month, according to one U.S. official. "A large portion of Russia's shadow tanker fleet has been sanctioned, making it more difficult for Russia and buyers to circumvent the G-7 price cap. These sanctions have the potential to take as much as 700,000 barrels per day (bpd) of supply off the market, which would erase the surplus that we are expecting for this year," ING analysts said in a note. But the analysts added the actual impact would probably be less as buyers and sellers found ways to continue getting around the sanctions. Robert Rennie, head of commodity and carbon strategy at Westpac, said the new measures could affect 800,000 bpd of Russian crude exports for "an extended period" and as much as 150,000 bpd of diesel exports. As a result, Brent prices could near $85 per barrel, Rennie said, pointing also to the extension of OPEC+ production cuts. Goldman Sachs had said on Friday that Brent prices could top $85 per barrel in the short term and $90 if a decline in Russian output coincided with a reduction in Iranian production. U.S. President Joe Biden said prices would stabilise after the sanctions and they were not meant to impact the pocketbooks of U.S. consumers. Weaker demand from major buyer China could blunt the impact of the tighter supply. China's crude oil imports fell in 2024 for the first time in two decades outside of the COVID-19 pandemic, official data showed.

Oil prices slipped at market open but remained near four-month highs as Chinese and Indian buyers sought new suppliers in the wake of the Biden administration's toughest sanctions yet on Russian oil. Brent LCOc1 futures slipped 22 cents, or 0.27%, to $80.79 a barrel by 0122 GMT, while U.S. West Texas Intermediate (WTI) crude fell 16 cents, or 0.2% to $78.66 a barrel. That followed roughly 2% gains in Monday trading, after the U.S. Treasury Department on Friday imposed sanctions on Gazprom Neft and Surgutneftegas as well as 183 vessels that trade oil as part of Russia's so-called shadow fleet of tankers. The move is expected to cost Russia billions of dollars per month, according to one U.S. official. A large portion of Russia's shadow tanker fleet has been sanctioned, making it more difficult for Russia and buyers to circumvent the G-7 price cap. These sanctions have the potential to take as much as 700,000 barrels per day (bpd) of supply off the market, which would erase the surplus that we are expecting for this year, ING analysts said in a note. But the analysts added the actual impact would probably be less as buyers and sellers found ways to continue getting around the sanctions. Robert Rennie, head of commodity and carbon strategy at Westpac, said the new measures could affect 800,000 bpd of Russian crude exports for an extended period and as much as 150,000 bpd of diesel exports. As a result, Brent prices could near $85 per barrel, Rennie said, pointing also to the extension of OPEC+ production cuts. Goldman Sachs had said on Friday that Brent prices could top $85 per barrel in the short term and $90 if a decline in Russian output coincided with a reduction in Iranian production. U.S. President Joe Biden said prices would stabilise after the sanctions and they were not meant to impact the pocketbooks of U.S. consumers. Weaker demand from major buyer China could blunt the impact of the tighter supply. China's crude oil imports fell in 2024 for the first time in two decades outside of the COVID-19 pandemic, official data showed.

Next Story
Infrastructure Energy

Adani Green Adds 212.5 MW Solar in Gujarat

Adani Green Energy Ltd. has commissioned a 212.5 MW solar power project at Khavda, Gujarat, through its subsidiary Adani Renewable Energy Fifty Seven Ltd. This addition brings Adani Green's total operational renewable capacity to 13,700 MW, as per a stock exchange filing. Last month, Adani Green became India's first renewable energy company to cross 12,000 MW of operational capacity. The company is also developing the world's largest 30,000 MW renewable energy plant in Khavda, spanning 538 sq km—about five times the size of Paris and nearly as large as Mumbai. Upon completion, it will be th..

Next Story
Infrastructure Energy

ONGC NTPC Green Acquires Ayana for Rs 62.5 Billion

ONGC NTPC Green Pvt Ltd (ONGPL) has completed the Rs 62.5 billion acquisition of Ayana Renewable Power, securing a 100% equity stake. The 50:50 joint venture between NTPC Green Energy Ltd (NGEL) and ONGC Green Ltd finalized the deal. NGEL contributed Rs 31.2 billion toward the acquisition, aligning with its goal to achieve 60 GW of renewable capacity by 2032. Ayana, a key player in India's green energy sector, has a 4,112 MW portfolio, with 2,123 MW operational and 1,989 MW under construction. Its projects are backed by high-credit-rated buyers, including SECI, NTPC, GUVNL, and Indian Railw..

Next Story
Infrastructure Transport

Cabinet Approves Rs 37.1 Billion Patna-Sasaram Corridor

The Union Cabinet has approved the construction of a four-lane access-controlled Patna-Sasaram corridor in Bihar at an estimated cost of Rs 37.1 billion. The 120.1 km project, to be developed under the Hybrid Annuity Mode (HAM), aims to ease congestion and enhance connectivity. Currently, travel between Sasaram, Arrah, and Patna takes 3-4 hours due to heavy traffic on state highways. The new corridor will integrate greenfield and 10.6 km of brownfield upgrades, linking key cities such as Arrah, Grahini, Piro, Bikramganj, Mokar, and Sasaram. The project will connect NH-19, NH-319, NH-922, NH-..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?