Tuesday’s oil prices bounce back might go down as one of the most memorable moments of the oil market’s tumultuous year of 2022. Despite being the third-largest daily loss since the onset of oil exchanges, declining crude did not trigger any changes along the futures curve, implying that the huge drop was primarily coming from widespread profit-taking as primarily non-physical participants panicked at the prospect of recession hitting the markets sooner than expected. The balances, however, do not lie – we are still living in times of extremely tight supply and even though it might take some time, the physical side of the equation will push prices back soon.
Europe’s Ballooning Gas Prices Might Ease Soon. According to German government sources, Canada has agreed to return the repaired turbines from the Nord Stream 1 pipeline, operated by Russia’s Gazprom, implying that in two weeks’ time throughput might go back to 100% capacity from the current 40%.
Russia Moves to Curb Kazakh Oil Flows. A Russian regional court has ruled that the Caspian Pipeline Consortium (CPC), the main conduit of Kazakh oil flows to the global markets, should be closed down for 30 days after alleged mismanagement of oil spills, however, loadings have continued up to now.
The US Slaps New Sanctions on Iranian Crude. Following the spectacular breakdown of the Doha talks to revive the JCPOA, the US Treasury introduced a new round of sanctions on a network of Chinese, Emirati, and other firms that allegedly deal with Iranian crude.
Source: Oil Price
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