Oil continues to decline while the EU disputes the price limit for Russian oil
The European Union considers the price cap for Russian oil to be higher than expected. In combination with intensifying signs of a global slowdown, this caused oil to continue falling.
There is discussion about the level of limit for Russian offshore exports. EU officials are ready to set the price at $65-70 per barrel. This is much higher than many expected. Bloomberg reports about additional negotiations due to a disagreement on details between the embassies. The negotiations are scheduled for Thursday.
The high price cap could lead to a minimal effect on the trade in the end.
Vandana Hari, founder of Vanda Insights, said that all the measures look even more irrelevant, since only the amount can be agreed upon, which may not differ much from the Urals trade at the present time. In his opinion, trading of Russian oil would continue, just with significant discounts.
Goldman Sachs Group Inc. has expressed doubts about the possibility of applying a higher price cap to reduce the risk of retaliatory measures by Russia.
The issue of inflation is currently of less importance in the foreign exchange market. Thus, according to economists at Commerzbank, dollar bears will not suffer losses even on the release of optimistic nonfarm payrolls.
Yesterday at 12:16 PMObviously there has been a structural shift in the markets toward a bearish dollar position. According to economists at Internationale Nederlanden Groep (ING), current U.S. nonfarm payrolls data may not cause an inversion of this trend.
Yesterday at 12:10 PMEuropean Central Bank President Christine Lagarde stated that inflation expectations should not change. People should be confident that price growth will return to the target level.
Yesterday at 11:56 AMCentral banks have recently been stepping up measures to combat global inflation. Investors, meanwhile, are actively discussing the continuation of high price levels amid limited supply.
Yesterday at 11:30 AMThe focus is on the OPEC+ meeting and the entry into force of bans related to the import of Russian oil.
Yesterday at 12:59 PM