#ForexChief #SanctionsAgainstRussia #forexnews #WTI #Oil #Brent #stock #worldnews #Gazprom #Biden⠀
🥊 Geopolitics puts pressure on raw materials: the market is controlled by bulls⠀
⚠️ Recall: that for several months now there has been a shortage of supply on the energy raw material market, so the military conflict in Europe has become just an additional, but very strong catalyst. Now Biden is actively trying to convince EU allies that sanctions against Russia need to be strengthened.
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However, the oil embargo has not yet found a unanimous response in continental Europe − no one is ready for the loss of about a million barrels. In particular, Germany and the Netherlands stated that now the bloc cannot stop deliveries, while the Baltic countries, including Lithuania, insist on such an embargo. Even Bulgaria, which is almost entirely dependent on gas supplies from Russia's
Gazprom, has said it will not renew its long-term contract, which expires this year.
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Demand for the supply of crude oil from OPEC countries is growing, especially since European industrial companies are trying to establish contacts with suppliers on their own. The US and UK have asked the Saudis and their partners to increase oil production to reduce short-term volatility, but so far there is no positive in this direction.
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In turn, Saudi Arabia and the UAE said that they do not feel effective support in the fight against the Houthis, since, according to independent sources, the United States continues to supply missile systems to Yemen. So Saudi Arabia does not intend to single-handedly correct the market deficit and warns that the latest Houthi missile strikes on the Saudi Aramco distribution centre in Jeddah will lead to supply disruptions.
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While all oil and gas pipelines to Europe are operating normally, all contracts concluded before the start of the conflict are being fulfilled. But even the fact that the idea of an embargo is being discussed narrows the demand for oil from Russia in Europe (Urals' discount to Brent widened to $22/bbl yesterday) and also pushes prices up.
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All EU sanctions decisions require consensus. The opinion of France, which currently holds the EU presidency, is likely to be decisive. The summit of EU leaders opens tomorrow, we are waiting for specific information. In the meantime, we are aiming for new purchases.
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Profits to y’all!