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Myanmar’s military government has announced that they are bought Russian fuel oil

by economypedia
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Myanmar’s military government has announced that they are bought Russian fuel oil that will arrive in phases from September, according the Reuters and Bloomberg.

We aim to buy high-quality fuel oil at a cheap price from the country where we can get it quickly
Myanmar military spokesman Jaw Min Tun said on Wednesday

Russia has been hit with sweeping sanctions from the West since it invaded Ukraine in February. Europe — Russia’s largest customer — has been starting to buy less from the country. To mitigate the impact from lower energy sales to Europe, President Vladimir Putin has been hawking Russia’s energy exports to other markets, including Asia. In April, Russia said it was ready to sell oil to “friendly countries” in “any price range.”

Myanmar southeast asian country has been ruled by the military since its civilian government was overthrown in a coup in February 2021. Since then, the junta has been hit by US and European Union sanctions. More than a year after the coup, civil protests continue to rock the country.

Russian fuel oil exports to Myanmar are expected to begin in September, Reuters reported, citing local media.

Russia and Myanmar have been forging closer ties. Earlier this month, Russian foreign minister Sergey Lavrov was in Myanmar on an official visit. Russia is also a major arms supplier to Myanmar.

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newsoil

Goldman Sachs forecasted that oil price will hit $135.

by economypedia
written by economypedia

Goldman Sachs forecasted that oil price will hit $135 in the second half of 2022.

Goldman Sachs increased its Brent oil price forecasts by $10 to $135 a barrel for the period between the second half of 2022 and the first half of next year, reasoning that a structural supply deficit was still unresolved.
Reuters

That marks a substantial jump from their earlier call for global prices to average $125 in the third quarter.

The Goldman analysts said stockpiles also need to mount to offset expected new demand momentum in China and production declines in Russia.

China, the world’s largest crude consumer, pulled back on oil demand this spring amid a coronavirus surge that galvanized government officials to order new lockdowns. This included Shanghai, the country’s largest city, with about 25 million residents.

But authorities in that city and others in China began easing restrictions this month, opening a pathway for a burst in summer activity and demand for fuels derived from crude.

Additionally, the United States banned imports of Russian oil this year in protest of the Kremlin’s invasion of Ukraine. In additional to that, European Union leaders recently agreed an embargo on Russian crude imports that will take full effect by the end of 2022, aiming to halt 90% of Russia’s crude imports into the 27-nation bloc by year-end.

The EIA said its forecast incorporates the assumption that the European Union will follow through on its plan to ban seaborne crude oil and petroleum product imports from Russia. However, the forecast does not include potential restrictions on shipping insurance because details are not known.
And while the United States and OPEC+ are expected to modestly increase production, the EIA expects Russia’s production will tumble by 1.1 million barrels per day between May 2022 and the end of 2023. That is a steeper decline than the EIA previously expected.

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newsoil

Aramco Increase Oil Prices for Asian, European Buyers

by economypedia
written by economypedia
Aramco

Saudi Arabian Oil Co., the nation’s state-run oil company, raised its crude oil prices for Asia and Europe for August, as OPEC+ struggles to increase output.

Saudi Aramco raised the price of its benchmark Arab Light crude by $2.80 a barrel for Asian buyers to a premium of $9.30 a barrel compared to Oman and Dubai.

For its northwest European customers, Aramco has raised its May formula prices by $1.40-3.80/bl, while May prices for Mediterranean-bound exports have been increased by $0.60-3/bl on fob Ras Tanura terms and by $0.30-2.70/bl on fob Sidi Kerir terms. Market participants had expected Aramco to lift its prices for customers in the two regions. Many European buyers remain wary of purchasing Urals, which is increasing demand for alternative sour crudes.

In some places “the demand rebound is quite something,” Mike Muller, head of Asia at Vitol Group, said Sunday on a podcast produced by Dubai-based Gulf Intelligence. “A lot of the south-eastern Asian countries, where I’m based, are very much exceeding expectations in terms of road-transportation demand. And try buying an air ticket in Singapore in the summer holidays. It’s awfully tough.”

OPEC+ agreed on Thursday to accelerate output increases. The 23-nation cartel, led by Saudi Arabia and Russia, said it would add 648,000 barrels a day to the market in each of July and August, about 50% more than its moves in recent months.

Still, most analysts said the group is unlikely to meet its targets because many members, even aside from Russia, are struggling to pump more. Saudi Arabia and the United Arab Emirates are about the only OPEC+ nations with significant spare capacity.

Saudi Arabia sends more than 60% of its crude exports to Asia, with China, Japan, South Korea and India being the biggest buyers.

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