Riyadh: Oil prices fell on Monday as the blockade of the coronavirus in Shanghai hurt economic activity. Meanwhile, the yen continued to fall angry as the Bank of Japan prevented yields from rising.
The 26 million Chinese financial hub has told all companies to suspend production or work people remotely with a two-step blockade for nine days.
Brent fell from $ 3.39 to $ 117.26 and US crude oil fell from $ 3.41 to $ 110.49 due to widespread regulation of the world’s largest oil importers.
Expectations for progress in Russia-Ukraine peace talks this week in Turkey are at risk after President Volodymyr Zelensky said Ukraine is ready to discuss adopting a neutral position as part of the agreement. Promoted emotions.
Norwegian oil workers strike
According to state mediators, about 28,500 workers at Norwegian shipyards, including oil industry factories and other manufacturers, will be on April 1 unless the union and employer sign a new wage agreement. Strike from.
Companies that may be affected are suppliers to the oil and gas industry, including Aker Solutions, which has 736 workers that threaten strikes. Aibel has 661 employees. According to the union, Kafer Energy has 405 employees.
The strike will affect the construction of ships, oil platforms, and other engineering work, but will affect production from the broader Norwegian oil industry, where individual wage negotiations are scheduled for May. Not expected.
US oil exports surge
According to traders, U.S. oil exports have increased after Russia’s invasion of Ukraine, and barrels of domestic oil normally sent to Oklahoma’s storage hub, Cushing, are being exported via the Gulf instead. ..
The aggression disrupted the oil market as companies stopped buying Russian oil and prices soared. Buyers around the world are trying to procure as much crude oil as possible. Over the last few weeks, exports from the United States, the world’s largest producer of crude oil, have increased.
US crude oil exports rose to 3.8 million barrels per day on March 18, the highest since July 2021, according to data from the US Department of Energy. Cushing’s stockpile is currently 25.2 million barrels, just below the four-year lows reached in early March.
Canada’s storage level is low
On the other hand, in Canada, the world’s fourth largest producer of crude oil, low storage is a problem. Dylan White, a senior research analyst at Wood Mackenzie’s oil market, said storage levels in Western Canada’s monitored areas remained within 3 million barrels, a record low of 30.3 percent in 2017. Said that. He said that number is a marker on the operational floor of the storage facility.
According to Bank of America analysts, future oil refinery maintenance will usually take place in the spring, which could lead to higher storage in both Canada and the United States, but the balance should remain tight.
(With input from Reuters)