While world oil prices remained stable above $90 per barrel, gas prices in Europe continued to jump. At the end of last week, traders were frightened by Russia’s ban on the export of gasoline and diesel fuel. As a result, gas prices have risen.
Oil
From September 15 to 22, the benchmark North Sea Brent oil gained a little more than a dollar and traded at $93.3 per barrel on Friday.
“Record oil demand in China will continue to support prices in the near term,” HSBC said in a note. They forecast that production cuts in Saudi Arabia will remain in force until the second quarter of 2024,” Reuters reports.
HSBC raised its forecast price for Brent next year by $7.5 to $90 per barrel.
Current quotes have already led to the fact that Middle Eastern oil grades, which are traded at a premium to the standard and are supplied to Europe instead of Russian oil, are sold for more than $100.
Gas
This week, gas traders in Europe received a new reason for excitement and on Friday, gas supplies for a month ahead from the TTF hub rose in price to $450 per thousand cubic meters, while they ended last week at $410.
On the one hand, unions and the American Chevron have reached a compromise on wages and working conditions at two LNG projects in Australia, and the strike will end. On the other hand, Norway is delaying the removal of production facilities in the North Sea from maintenance work. However, the main reason for the growth was the Russian government’s ban on the export of gasoline and diesel fuel, which would ensure the domestic market and reduce prices in Russia.
“There have been no reports that gas exports could also be affected, but some traders see the new ban as a sign that Russian risks remain,” Bloomberg reported. Gazprom has reduced supplies to Europe due to sanctions and counter-sanctions, but Russian pipeline supplies still account for 11% of all imports to EU countries.
Tom Marzek-Manser from ICIS told the agency that high oil prices are also supporting quotes.
Coal prices, in turn, continued to follow in the wake of gas. Deliveries from the Amsterdam-Rotterdam-Antwerp (ARA) hub for the month ahead increased in price from $118.8 to $122 per ton. Coal is not welcome in Europe, but it remains one of the most reliable sources of electricity in the event of a drop in green generation.
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2023-09-25 20:16:00
