Oil Holds Gains as Attacks Threaten Russia’s Black Sea Exports

 Yongchang Chin, Bloomberg News 

 

21m ago 

Synopsis     

 Oil holds gains as Ukraine attacks Russian vessel, risking Black Sea commodity flows. West Texas Intermediate near $83/barrel after 4% rise in 2 sessions. A sea drone hit Russian oil tanker supplying Syria, threatening Russia's Black Sea exports (15-20% of daily oil sales, most grain). Oil caps sixth weekly gain, erasing YTD losses due to Saudi Arabia and Russia supply cuts. Saudi Arabia raised September prices to Asia and Europe. 

  

(Bloomberg) -- Oil held gains as Ukraine attacked another Russian vessel over the weekend, putting at risk significant flows of the nation’s commodities from the Black Sea such as crude and grains. 

West Texas Intermediate traded near $83 a barrel at the start of the week in Asia after rising more than 4% over the previous two sessions. On Saturday, a sea drone hit a Russian-flagged oil tanker that supplies fuel to Moscow’s forces in Syria. That followed an attack on a naval vessel on Friday. 

The hostilities could threaten Russia’s commodity exports via the Black Sea, a route that accounts for 15% to 20% of the oil that Russia sells daily on global markets and most of the nation’s grain. 

Oil capped a sixth weekly gain on Friday, the longest rising streak since June 2022. Futures have erased year-to-date losses following supply cuts from Saudi Arabia and Russia, leading to a tightening of the market. Over the weekend, the kingdom raised nearly all of its prices for September to Asia and Europe. 

Source:  www.bnnbloomberg.ca/   

  

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