Petrochemicals market will face serious changes in February
From February 5, the G7 and European Union will impose a cap on Russian petrochemicals. The import of Russian fuel will also be restricted.
Similar measures were already implemented regarding crude oil. However, the cap and the ban on petrochemicals cause fear of a possible price hike.
Founder of consultant Oilytics Keshav Lohiya says that the ban on Russian supplies will bring significant losses and become a serious issue for transport companies.
The EU will have to replace 600,000 barrels per day. Russia, in turn, will have to search for new markets, store the oil on the vessels or reduce production.
Currently, most of the supplies come to the EU from the U.S. and India as these countries produce more than they can consume, and this allows them to sell surpluses. It is expected that China will also export more fuel.
Such a situation isn’t considered a violation of sanctions. However, it shows their inefficiency. The transportation route of raw materials will increase by several thousand miles, and they will also need to be transported back.
At the present time, the cost of gold is firmly entrenched at $1,900 dollars per ounce. That mark is already very close to a possible maximum predicted by analysts. That kind of dynamics is driven by noticeable dollar weakening and decrease in the yields of the U.S. government bonds.
27 JanuaryAccording to expectations of strategists of the Internationale Nederlanden Groep, gold will grow in 2023.
27 JanuaryThe U.S. economy unfolded more actively in the fourth quarter than analysts might have expected. However, domestic demand grew at the slowest pace in 2.5 years, reflecting the impact of higher credit costs.
27 JanuaryThe U.S. strategic petroleum reserve (SPR) decreased by more than 40% in two years. The reserves were 371.57 million barrels on January 20, compared to 638.08 million barrels a year ago.
27 JanuaryThe European Union plans to implement a $100-per-barrel limit on Russian diesel fuel.
27 January