Coquest Daily Energy Report
Crude Oil Futures for May 2023 settled up $0.39 @ $73.20/bbl. trading in a $2.74 range including the overnight-RBOB settled up 2.79/cpg and Heating Oil settled down 0.08/cpg. Energy Minister Nikolai Shulginov said on Tuesday that Russia has successfully redirected all its crude oil exports affected by Western sanctions over Ukraine to “friendly” countries. “I can say today that we have managed to completely redirect the entire volume of exports affected by the embargo. There was no decrease in sales,” Shulginov told an energy forum. Also speaking at the same event, Alexander Dyukov, CEO of Russian oil major Gazprom Neft, said that 2023 would be more difficult than 2022 and the pressure from sanctions would grow. India was the biggest buyer of Russia’s benchmark Urals grade crude in March. Deliveries to India are set to account for more than 50.0% of all seaborne Urals exports this month, with China in second place.
Natural Gas Futures for April 2023 settled down $0.058 @ $2.030/mmbtu trading in a 0.106 cent range including the overnight session. The European Union is considering allowing individual member states to block LNG imports from Russia without slapping sanctions on Russian gas. The proposal would allow individual member states to prevent Russian LNG exporters from booking capacity at Europe’s LNG import facilities. The push to give EU members the power to temporarily block LNG imports from Russia is led by Russia’s EU neighbors Finland, Estonia, Latvia, Lithuania, and Poland. Even if the mechanism to block Russian LNG without sanctions is endorsed by the EU energy ministers, the individual EU governments would still need to consult with other EU countries, the European Commission, and other EU institutions. Earlier this month, EU Energy Commissioner Kadri Simson urged all EU member states and all companies not to sign new LNG import contracts with Russia.
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