Gasoline prices in Westchester are above $6 as prices at the pump continue to rise across Southland on Sunday, March 13, 2022 in Los Angeles, CA.
Jason Armond | Los Angeles Times | beautiful pictures
Oil prices edged higher on Monday after Russia-Ukraine talks appeared to show no signs of progress and the market continued to worry about tight supply – sparking a call from the Federal Reserve Agency. International Energy aims to reduce oil demand.
Crude oil futures were up as much as 3% on Monday morning in the Asian session – international benchmark Brent crude was at $110.81 and US oil futures were at $107.68.
Oil prices have been volatile in recent weeks – surging to a record high in March before falling more than 20% last week to hit levels below $100. They rebounded in the second half of last week to break above that level.
In a note on Monday, Mizuho Bank said two factors are pushing oil prices higher: lingering uncertainty between Russia-Ukraine as well as hopes that China’s latest Covid impact could be less catastrophic than expected amid expectations of easing restrictions.
Ukrainian and Russian officials have met intermittently to conduct peace talks, which have so far failed to reach significant concessions. However, Ukrainian President Volodymyr Zelenksyy has called for another round of talks with Moscow.
“If these efforts fail, it means this is a third world war,” Zelenskyy told CNN’s Fareed Zakaria in an interview that aired Sunday morning.
“The breakdown of peace talks between Russia and Ukraine witnessed ANZ Research analysts Brian Martin and Daniel Hynes wrote in an announcement Monday.
Clearly the industry’s inability to fill any of the potential gaps has driven demand down.
Brian Martin and Daniel Hynes
Research ANZ
Meanwhile, tight supply continued to worry markets, prompting calls by the International Energy Agency (IEA) on Friday for “urgent measures” to reduce oil use.
The Russia-Ukraine war has led to worries about supply disruptions due to US sanctions on Russian oil and gas. The UK and the European Union also said they would Russia’s fossil fuel elimination. According to Goldman Sachs statistics, Russia provides 11% of global oil consumption and 17% of global gas in 2021, and 40% of Western Europe’s gas consumption in the same period.
The Commonwealth of Australia Bank on Monday warned that oil prices have fallen below recent peaks as markets are still pricing oil largely by “assessing the possibility of a diplomatic resolution to the conflict.” Ukraine conflict.”
“Material shortages, related to current sanctions on Russia, will ultimately play a more dominant role in determining what is going to be done,” said Vivek Dhar, director of energy commodities research at the bank. oil pricing.
“The industry’s inability to fill a clear potential gap has driven down demand,” said ANZ Research analysts.
In the 10 point planThe IEA’s recommendations to reduce oil demand include reducing speed limits for vehicles, working from home up to three days a week, and avoiding air travel for work.
“We estimate the full implementation of these measures in advanced economies could cut oil demand by 2.7 million bpd over the next four months, compared with current levels,” the IEA said. “.
