The Russia-Ukraine war, despite escalating, has limited impact the oil Prices ICE Brent settled almost flat yesterday, even after Ukraine fired a US-made long-range missile at Russia for the first time. At the same time, Russia has also updated its nuclear doctrine, widening the scope for using nuclear weapons, note Warren Patterson and Ewa Manthey, commodity analysts at ING.
U.S. crude oil inventories rose
“Feeding into some of the geopolitical risks associated with Russia-Ukraine were reports that Iran has offered to stop increasing its stockpile of enriched uranium by up to 60%. The International Atomic Energy Agency said Iran has taken the first step to cap production. If that happens, President It removes some of the supply risks associated with Iranian oil when Trump-elect enters office.”
“In the North Sea, the Johan Sverdrup field resumed operations on Monday after production was halted due to a power outage. The field produces about 755k b/d but will take some time to return to full capacity.
“Overnight numbers from the API showed that US crude oil inventories rose by 4.8 million barrels last week, compared to expectations for a marginal draw. For refined products, gasoline and distillate stocks fell by 2.5m barrels and 700k barrels respectively. A more widely followed EIA report will be released today.”
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