As bullish sentiment continues to build and Brent settles comfortably above the $90 mark, oil prices look set to continue to climb this week.

– German industrial production finally broke through the cycle of gloom after it posted a 2.1% increase in February, well above the consensus expectation of a 0.5% rise month-over-month.

– Although Germany’s manufacturing is still below its pre-pandemic levels, the surprise hike in activity fuelled this week’s copper rally and reinforced the expectation of the ECB cutting rates from June onwards.

– In contrast to actual figures, business sentiment in Germany remains sour as the S&P Global PMI index dropped as low as 41.6 in March, from 42.5 in February, suggesting the country’s manufacturers don’t necessarily share the optimism.

– Europe has been the laggard continent in terms of rising commodity demand as oil demand keeps on trending flat, electricity demand has now declined for two consecutive years, and steel production has fallen to its lowest level on record. 

Market Movers

– UK-based oil major Shell (LON:SHEL) and Saudi Aramco (TADAWUL:2222) are reportedly vying for the LNG assets of Pavilion Energy, a trading firm set up by Singapore’s Temasek, in a deal that could be worth 2 billion.

– UK oil major BP (NYSE:BP) is reportedly nearing an agreement with Anglo-French upstream firm Perenco to divest its Amherstia, Cashima, and Immortelle gas fields in Trinidad and Tobago.

– French energy major TotalEnergies (NYSE:TTE) has postponed a final investment decision on its Papua LNG project to 2025, saying more alignment would be required with engineering contractors.

Tuesday, April 09, 2024

Brent crude futures have established a firm footing over the $90 per barrel mark and not even a brief opening for a potential ceasefire in Gaza managed to pull it lower. Mexico cutting oil exports will ensure bullish sentiment continues to build in the coming weeks, with further directionality set by the US and Chinese inflation numbers this week, potentially even paving the way for a climb closer to $95 per barrel. 

LNG Prices Keep Calm Despite Strong Asian Buying. Spot LNG prices in Asia have been rangebound in recent weeks around $9 per mmBtu despite higher-than-usual buying from China and Japan as European LNG imports are set to drop to a 7-month low of 8 million tonnes on high gas inventories. 

Mexico Keeps on Cutting Oil Exports. Having withdrawn 436,000 b/d of crude oil exports in April, Mexico’s state oil firm Pemex intends to cut its May exports by 330,000 b/d. The country has refrained from declaring force majeure on its supply contracts despite stretched crude production. 

Guyana Struggles to Launch Its Gas Bonanza. Whilst Guyana’s oil production has been surging recently, its $1.9 billion gas-to-power project is running at least six months behind schedule, with operator ExxonMobil (NYSE:XOM) forced to halt 400,000 b/d of production for a month in Q3. 

Iraq Mulls Restart of Idled Pipeline. The restart of Kurdish crude exports to the Turkish coast is unlikely to materialize anytime soon, but Baghdad is repairing the 350,000 b/d Kirkuk-Ceyhan pipeline destroyed by ISIS in 2014, potentially re-routing some of its exports as soon as next month. 

Hedge Funds Embrace the Bullish Mood. Portfolio investors purchased the equivalent of 37 million barrels in key oil-related futures and options in the week ending April 2, with net length in Brent now standing at 300 million barrels whilst the outlook on WTI is more cautious, at 208 million barrels of net length.  

Nigeria’s Fuel Woes Bubble to the Surface. Nigeria’s national oil company NNPC is reported to owe $3 billion to fuel traders in the African country as the reimposition of fuel subsidies makes retail sales a loss-making business for the NOC, with payments taking more than 130 days to come through. 

Shell Mulls Delisting from London Exchange. UK-based energy major Shell (LON:SHEL) is reportedly looking at all options including switching its listing from London to New York, saying that if the European valuation gap doesn’t improve by mid-2025, the company could make a move. 

Fierce Pipeline Dispute Moves to FERC. US midstream firm Energy Transfer (NYSE:ET) has asked the Federal Energy Regulatory Commission to look into the activities of Williams Cos Inc., saying it builds interstate pipelines without approval whilst the latter claims ET is blocking other operators from building new projects by not allowing them to cross existing pipes.

Guinea Is Running Out of Electricity. The African country of Guinea is facing an electricity market collapse as the state-owned utility firm announced it would deepen power cuts as energy sources get depleted, stemming from extremely low hydropower generation as well as breakdowns at thermal plants.  

Copper Bulls Are Riding High Again. The three-month LME copper benchmark contract reached $9,450 per metric tonne for the first time since January 2023 as a steady inflow of hedge fund investments keeps the bullish momentum going, buoyed by improving manufacturing data from the EU. 

Panama Canal Water Levels to Rise. The Panama Canal Authority indicated that water levels in the Gatun Lake should gradually increase from the end of May as the rainy season takes over in Latin America, with drought-heavy El Nino conditions giving way to La Nina, bringing more rainfall. 

Leaking Gulf of Mexico Pipeline to Restart Soon. The Main Pass Oil Gathering (MPOG) pipeline has successfully undergone a line integrity test and will be restarted soon after transportation was halted for more than six months, shutting 61,000 b/d of offshore production, following a November spill. 

Floods Prompt Russian Refinery Shutdown. Russian oil company Forteinvest shut its 135,000 b/d Orsk refinery in southern Russia because of unprecedented flooding on the Ural River, halting ongoing maintenance works as its product stocks would be enough to cover 10 days of regional fuel consumption.

By Michael Kern for Oilprice.com

More Top Reads From Oilprice.com:

Shares of Hindustan Copper gained as much as 9.8% on Tuesday, marking its biggest single-day gain since December 2023. The stock is also out of the F&O ban in today’s trading session, which means new positions can be taken in the stock.The stock also surged after global Copper prices traded near a 15-month high as supply tightened and global manufacturing picked up.

Prices of Copper have risen almost 10% this year as disruptions at major mines threaten refined metal production at Chinese plants, that account for more than half of the world’s supply, according to a Bloomberg report.

In an interaction with CNBC-TV18 on April 2, Rakesh Arora of GoIndiaStocks.com said that he would advise investors to not waste time on Hindustan Copper, citing that the company’s valuations are unreasonable.At current levels, the stock is trading at a current-year price-to-earnings multiple of 118.6 times, compared to its five-year average of 49.89 times.

On the charts, while the stock trades above all of its key moving averages, the Relative Strength Index (RSI) of the stock is now at 77, which means the stock is in overbought territory. An RSI reading above 70 indicates that the stock is overbought.

Hindustan Copper is the only listed pure play stock on copper prices in India.

While 66% stake in this PSU is held by the government, LIC holds a 8.17% stake. Quant Smallcap Fund and SBI PSU Fund hold a 1.76% and 1.23% stake in the stock respectively.

Shares of Hindustan Copper are now trading 10% higher at ₹364.45. The stock is already up 35% so far in 2024, while over the last 12 months, the stock is up 262%.

The increased talks for peace in Gaza led crude oil prices to a fall on Monday as Israel reduced the number of troops it had in the fighting with Hamas.

US benchmark, West Texas Intermediate crude finished down 48 cents or 0.6% at $86.43 a barrel on the New York Mercantile Exchange.

Brent crude, considered the global benchmark recorded a 79 cent or 0.9% fall to $90.38 a barrel on ICE Futures Europe.

It was the first fall in prices in five sessions for Brent crude and the first in seven sessions for WTI.

May natural gas rose 6 cents to $1.84 per 1,000 cubic feet.

A majority of Oklahoma energy stocks recorded gains in Monday’s day of trading with a 5% jump for Empire Petroleum Corp.

Canoo EV maker saw a more than 13% gain.

Other energy stocks were down for the day, according to the Texas Energy Report.

U.S. oil producers are not in a rush to significantly boost production despite oil prices hovering at a six-month high, as multi-year low natural gas prices are holding back drilling in parts of the Permian and costs have increased, analysts and industry executives tell Reuters.

Last week, WTI crude prices hit their highest level of the year so far, and the highest since the middle of October 2023, amid geopolitical flare-ups in the Middle East and signs of tightening oil markets.

But producers in America, where part of the natural gas is associated gas from oil drilling, are not jumping the gun. They are mindful of the investor demands for higher returns, not necessarily higher production.

“Natural gas is currently pricing at or below costs of production,” an executive at an exploration and production company said in comments in the latest quarterly Dallas Fed Energy Survey released at the end of March. 

Moreover, the same survey showed that breakeven prices for all oil-producing basins, including the Permian, have increased over the past year. Breakeven prices for companies to profitably drill a new well in the Permian now average $65 per barrel, which is $4 higher than last year, the survey showed. Almost all firms in the survey can profitably drill a new well at current prices, Dallas Fed says.

Nevertheless, producers are cautious.

“We need gas prices to get to $2.50 for an overall increase in activity. The Permian customers that have associated gas are seeing awful differentials,” Mark Marmo, CEO of oilfield firm Deep Well Services, told Reuters.

For context, the U.S. natural gas benchmark, Henry Hub, has been depressed below $2.00 per million British thermal units (MMBtu) since early February, due to weak winter demand amid milder weather, record output at the end of 2023, and higher-than-average natural gas stocks. 

Since March, the spot natural gas prices at the Waha hub in West Texas, in the Permian, have turned negative several times, sinking to as low as -$1.16 per MMBtu on March 18, per EIA data.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

• Gold price consolidates near $2,350, as traders await strong catalysts. 
• Gold price cheers surge in central banks’ buying despite fading June Fed rate cut bets.
• Gold price correction is long due amid extremely overbought RSI, ahead of US CPI data.

Gold price is holding the fort near $2,350 early Tuesday, having witnessed good two-way businesses on Monday. Gold price now awaits key US fundamental data for a fresh directional move. In the absence of any top-tier US economic data later on Tuesday, the focus will remain on the speeches from the US Federal Reserve (Fed) policymakers.

Gold price hangs near record highs, correction in the offing?

Gold price has entered a phase of upside consolidation in the Asian session on Tuesday, as the US Dollar licks its wounds while the US Treasury bond yields hold their corrective downside amid a negative shift in risk sentiment.

Asian stock markets pare early gains, led by the decline in Chinese indices even as markets stay hopeful of a worldwide manufacturing rebound. Markets are trading more cautiously, as nervousness sets in ahead of Wednesday’s all-important US Consumer Price Index (CPI) data release. The US inflation data will affirm the recent pullback in the market expectations of a likely rate cut by the Fed in June.

Strong US Nonfarm Payrolls data and hawkish Fed commentaries have weighed on the Fed rate cut bets, with markets now pricing in a roughly 50% chance of another hold in June. The hawkish shift in the market expectations has underpinned the recent upsurge in the US Treasury bond yields.

Early Asia,  Minneapolis Fed President Neel Kashkari (2024 non-voter) said that “the inflation rate is running around 3% and the Fed has to get back down to 2%, adding that “the bank cannot ‘stop short’ on the inflation fight.”

However, Gold price continues to show resilience to rising US Treasury bond yields and easing geopolitical tensions in the Middle East, in the wake of a Gold buying spree by global central banks, especially by the People’s Bank of China (PBOC).

 A Chinese official reported on Sunday, the Chinese central bank purchased Gold for its reserves for the 17th straight month in March. Bullion held by the PBOC rose to 72.74 million fine troy ounces last month, the official said. Turkey, India, Kazakhstan and some eastern European countries have also been buying gold this year, per Reuters.

Renewed central bank demand for the bright metal sent the Gold price to another record high above $2,350 on Monday, extending its record-setting rally.

Looking ahead, Gold traders will take account of Fedspeak amid a lack of top-tier US economic data. Meanwhile, position adjustment and profit-taking in Gold price cannot be ruled out, as traders gear up for key US inflation report due on Wednesday.

Gold price technical analysis: Daily chart

A further upside in Gold price appears elusive, as the extremely overbought 14-day Relative Strength Index (RSI) conditions continue to threaten a correction.

If Gold buyers give up, a correction toward the previous record high of $2,331 will be in the offing.

The extension of the Gold price pullback could test the April 4 high at $2,305, below which the April 5 low of $2,268 will be tested.

However, if Gold buyers retain control, the all-time high at $2,354 will be the first resistance to scale.

A fresh rally toward the $2,370 round figure will be seen only on acceptance above the $2,350 psychological level.

 

• Gold price consolidates near $2,350, as traders await strong catalysts. 
• Gold price cheers surge in central banks’ buying despite fading June Fed rate cut bets.
• Gold price correction is long due amid extremely overbought RSI, ahead of US CPI data.

Gold price is holding the fort near $2,350 early Tuesday, having witnessed good two-way businesses on Monday. Gold price now awaits key US fundamental data for a fresh directional move. In the absence of any top-tier US economic data later on Tuesday, the focus will remain on the speeches from the US Federal Reserve (Fed) policymakers.

Gold price hangs near record highs, correction in the offing?

Gold price has entered a phase of upside consolidation in the Asian session on Tuesday, as the US Dollar licks its wounds while the US Treasury bond yields hold their corrective downside amid a negative shift in risk sentiment.

Asian stock markets pare early gains, led by the decline in Chinese indices even as markets stay hopeful of a worldwide manufacturing rebound. Markets are trading more cautiously, as nervousness sets in ahead of Wednesday’s all-important US Consumer Price Index (CPI) data release. The US inflation data will affirm the recent pullback in the market expectations of a likely rate cut by the Fed in June.

Strong US Nonfarm Payrolls data and hawkish Fed commentaries have weighed on the Fed rate cut bets, with markets now pricing in a roughly 50% chance of another hold in June. The hawkish shift in the market expectations has underpinned the recent upsurge in the US Treasury bond yields.

Early Asia,  Minneapolis Fed President Neel Kashkari (2024 non-voter) said that “the inflation rate is running around 3% and the Fed has to get back down to 2%, adding that “the bank cannot ‘stop short’ on the inflation fight.”

However, Gold price continues to show resilience to rising US Treasury bond yields and easing geopolitical tensions in the Middle East, in the wake of a Gold buying spree by global central banks, especially by the People’s Bank of China (PBOC).

 A Chinese official reported on Sunday, the Chinese central bank purchased Gold for its reserves for the 17th straight month in March. Bullion held by the PBOC rose to 72.74 million fine troy ounces last month, the official said. Turkey, India, Kazakhstan and some eastern European countries have also been buying gold this year, per Reuters.

Renewed central bank demand for the bright metal sent the Gold price to another record high above $2,350 on Monday, extending its record-setting rally.

Looking ahead, Gold traders will take account of Fedspeak amid a lack of top-tier US economic data. Meanwhile, position adjustment and profit-taking in Gold price cannot be ruled out, as traders gear up for key US inflation report due on Wednesday.

Gold price technical analysis: Daily chart

A further upside in Gold price appears elusive, as the extremely overbought 14-day Relative Strength Index (RSI) conditions continue to threaten a correction.

If Gold buyers give up, a correction toward the previous record high of $2,331 will be in the offing.

The extension of the Gold price pullback could test the April 4 high at $2,305, below which the April 5 low of $2,268 will be tested.

However, if Gold buyers retain control, the all-time high at $2,354 will be the first resistance to scale.

A fresh rally toward the $2,370 round figure will be seen only on acceptance above the $2,350 psychological level.

 

Brazilian oil and gas company Enauta may soon change the face of Latin American fossil fuels by establishing an independent oil and gas company with 3R Petroleum Óleo e Gás. This is the most recent of several ambitious moves by Enauta to expand its oil and gas operations in Brazil. In recent months, the firm has signed several contracts to acquire stakes in multiple offshore oilfields in the region, thereby boosting its production capacity. The proposal to merge with 3R, if accepted, could lead to the establishment of a major new independent company in the region. 

The Brazilian oil firm 3R Petroleum Óleo e Gás announced it has temporarily halted talks with PetroReconcavo, over a proposed merger, opening the door for an alternative deal. Enauta proposed a new merger offer to 3R, which could lead to the creation of “one of the most diversified independent oil and gas companies in Latin America,” if accepted. If the merger goes ahead, the independent company will have a production capacity of over 100,000 bpd. The growing interest in 3R led its stocks to rise by 7.3 percent following the announcement. 

This move by Enauta follows a growing ‘megamerger’ trend being seen worldwide. In the U.S., both Chevron and Exxon announced a major new deal in October, with Occidental following in December, and Diamondback in February. Meanwhile, small oil and gas companies in Brazil have been looking to consolidate operations following a widespread buy-up of assets formerly owned by state-owned Petrobras. 

Enauta presented 3R with an all-stock offer. The deal would mean 3R shareholders hold 53 percent of the company, while Enauta shareholders would hold 47 percent. This is expected to provide a “balanced, five-year high organic growth portfolio with ability to add value in an environment of consolidation and resilience to commodity pricing cycles,” according to Enauta. The firm’s board of directors unanimously approved the proposal, believing the new independent company could attain a strategic positioning in domestic and international capital and banking markets. The firm believes that its deal is superior to that of PetroReconcavo in terms of “strategic positioning, governance, tangible synergies and from a risk management perspective.” 

Enauta explained, “The transaction will lead to state-of-the-art governance, with diversified reference shareholders, a predominantly independent board of directors with an experienced executive team. There will be growth opportunities in offshore and onshore operations, mitigating operational, geological and regulatory risks, complementarity in teams, talent attraction and retention and strong adherence to ESG principles.” 

This is just one of many moves by Enauta to expand its operations in recent months. In December the firm signed a deal with Petrobras to purchase two offshore oil and gas fields – Uruguá and Tambaú – in the Santos Basin, as well as natural gas pipeline infrastructure. This is expected to cost Enauta $10 million, with a potential $25 million more for oilfield development. 

That same month, Enauta signed a contract with QatarEnergy Brasil to acquire a stake in the Campos Basin oilfields. The company expected to acquire the whole 23 percent stake previously held by QatarEnergy in the Abalone, Ostra and Argonauta oilfields, which comprise the Parque das Conchas. The zone is operated by Shell, which has a 50 percent equity stake. Production stands at around 35,000 bpd from 25 wells connected to the FPSO Espírito Santo platform. This is expected to cost Enauta a total of $150 million. 

In March, Enauta also signed a deal with Houston-based Westlawn Americas Offshore (WAO) to purchase a 20 precent participating interest in the BS-4 concession for $301.7 million. Enauta released a statementsaying, “Partnerships are important drivers for value generation and risk-sharing in the development of megaprojects such as Atlanta and Oliva. Since Atlanta’s Phase I investment was sanctioned in March 2022, Enauta has been approached by several potential partners interested in joining the project… The signing of a 20 percent minority stake with WAO is aligned with principles of Enauta’s value generation strategy, capital allocation efficiency and management of a balanced high growth, high risk-adjusted return oil and gas portfolio.”

Enauta has been rapidly building up its oil and gas portfolio in Brazil’s offshore region, with the purchase of stakes in several oilfields. This will help boost production in the coming years and allow it to grow as an independent oil and gas company. This could be enhanced further by a potential merger with 3R Petroleum Óleo e Gás, if accepted, which would lead to the creation of a major Latin American independent with high production output and a significant stake in the Brazil region. 

By Felicity Bradstock for Oilprice.com 

More Top Reads From Oilprice.com:

XAU/USD Current price: $2,329.91

• The US Dollar trades with a weaker tone amid a better market mood.
• Central banks’ decisions and US inflation take centre stage this week.
• XAU/USD corrected from a fresh record high, maintains the bullish tone.

Spot Gold keeps reaching record highs on a daily basis, hitting 2,353.64 a troy ounce on Monday. XAU/USD retreated from its Asian peak and currently trades below the $2,330 threshold as a better market mood undermines demand for the bright metal.

Meanwhile, the US Dollar trades with a weaker tone against most major rivals, although volatility is limited amid upcoming first-tier news. Next Wednesday, the United States (US) will release the March Consumer Price Index (CPI), while on Thursday, the European Central Bank (ECB) will announce its decision on monetary policy. In between, the Bank of Canada (BoC) and the Reserve Bank of New Zealand (RBNZ) will also announce their decisions on monetary policy.

Stock markets trade in positive territory, although gains remain modest amid caution ahead of critical events that may set the tone for the rest of the month. Finally, it is worth adding that the odds for a Federal Reserve (Fed) June rate cut keep decreasing, and major analysts now see July as the date for the first move. Upcoming inflation data will surely be a make-it-or-break for the USD.

XAU/USD short-term technical outlook

XAU/USD’s bullish trend is evident in the daily chart, which shows the pair consistently developing above all its moving averages. The 20 Simple Moving Average (SMA) has been steadily increasing but stands far below the current level and above the longer ones, showing a clear uptrend. Meanwhile, technical indicators are partially losing their bullish strength but still developing in extremely overbought territory. The Relative Strength Index (RSI) indicator has been doing so since March 27, anticipating a potential corrective slide or at least a consolidative stage.

The near-term picture is also bullish. The 4-hour chart shows all moving averages heading firmly north below the current level. Furthermore, the RSI indicator has corrected extreme overbought readings but turned flat at around 64, reflecting limited selling interest and far from signaling an upcoming reversal. Finally, the Momentum indicator has picked up within positive levels, in line with the dominant trend.

 Support levels: 2,318.60 2,303.80 2,287.30

Resistance levels: 2,337.70 2,353.65 2,370.00

XAU/USD Current price: $2,329.91

• The US Dollar trades with a weaker tone amid a better market mood.
• Central banks’ decisions and US inflation take centre stage this week.
• XAU/USD corrected from a fresh record high, maintains the bullish tone.

Spot Gold keeps reaching record highs on a daily basis, hitting 2,353.64 a troy ounce on Monday. XAU/USD retreated from its Asian peak and currently trades below the $2,330 threshold as a better market mood undermines demand for the bright metal.

Meanwhile, the US Dollar trades with a weaker tone against most major rivals, although volatility is limited amid upcoming first-tier news. Next Wednesday, the United States (US) will release the March Consumer Price Index (CPI), while on Thursday, the European Central Bank (ECB) will announce its decision on monetary policy. In between, the Bank of Canada (BoC) and the Reserve Bank of New Zealand (RBNZ) will also announce their decisions on monetary policy.

Stock markets trade in positive territory, although gains remain modest amid caution ahead of critical events that may set the tone for the rest of the month. Finally, it is worth adding that the odds for a Federal Reserve (Fed) June rate cut keep decreasing, and major analysts now see July as the date for the first move. Upcoming inflation data will surely be a make-it-or-break for the USD.

XAU/USD short-term technical outlook

XAU/USD’s bullish trend is evident in the daily chart, which shows the pair consistently developing above all its moving averages. The 20 Simple Moving Average (SMA) has been steadily increasing but stands far below the current level and above the longer ones, showing a clear uptrend. Meanwhile, technical indicators are partially losing their bullish strength but still developing in extremely overbought territory. The Relative Strength Index (RSI) indicator has been doing so since March 27, anticipating a potential corrective slide or at least a consolidative stage.

The near-term picture is also bullish. The 4-hour chart shows all moving averages heading firmly north below the current level. Furthermore, the RSI indicator has corrected extreme overbought readings but turned flat at around 64, reflecting limited selling interest and far from signaling an upcoming reversal. Finally, the Momentum indicator has picked up within positive levels, in line with the dominant trend.

 Support levels: 2,318.60 2,303.80 2,287.30

Resistance levels: 2,337.70 2,353.65 2,370.00

ChiniMandi, Mumbai: 8th April 2024

Domestic Market

Domestic sugar prices traded higher

Domestic sugar prices in major markets were traded higher after trading weak for two sessions. Demand is reported to be good and moreover, closure of mills supported the sentiment in the spot markets. Prices in the major markets were reported higher by Rs 10-20 per quintal.

In Muzaffarnagar, M-grade sugar is priced between Rs 3,780 and Rs 3,820 per quintal, while S-grade sugar is expected to cost between Rs 3,420 and Rs 3,460. Agrimandi predicts that the price of S grade sugar in the Kolhapur market will fall to between Rs 3,400 and Rs 3,500 per quintal within the next two weeks.

Ex-mill Sugar Prices as on  April, 8 2024 :

Destination-wise Spot Prices as on April, 8 2024 :

 

International Market

At the time of writing this update London White Sugar #5 front month contract is trading at $645.70 ton, whereas the New York Sugar #11 front month contract is trading at 22.02 c/lb.

Currency, Commodity & Indian Indices

The rupee traded against the US dollar at 83.313 whereas USD was trading with BRL at 5.0648, Crude futures traded at ₹7186, Crude WTI traded at $86.30 barrel. Sensex closed 494.28 points higher at 74742.50 whereas Nifty ended 152.60 points higher at 22666.30

News Round-Up

Efforts required to achieve Zero Fresh Water Consumption (ZFC) and Zero Liquid Discharge (ZLD) in sugar industry

Efforts required to achieve Zero Fresh Water Consumption (ZFC) and Zero Liquid Discharge (ZLD) in sugar industry

Yamunanagar: Sugar mill ends sugarcane crushing operations early this season

Yamunanagar: Sugar mill ends sugarcane crushing operations early this season

Tamil Nadu: Udhayanidhi Stalin assures to set up sugar mill in Omalur

Tamil Nadu: Udhayanidhi Stalin assures to set up sugar mill in Omalur

Russia is seeking to import gasoline from Kazakhstan in case shortages occur on the Russian market because of the diminished refining capacity due to maintenance and damages from Ukrainian drone attacks, Reuters reported on Monday, citing industry sources.

Russia has asked Kazakhstan to prepare to potentially deliver 100,000 tons of gasoline, the sources told Reuters.

Russia is also ready to import gasoline from Belarus if the current domestic supply is insufficient to meet demand.

Russia is estimated to have slashed in half its gasoline exports via railway after imposing a six-month ban on exports from March 1 to ensure sufficient domestic supply in peak demand season, while several refineries are undergoing regular maintenance and urgent repairs after Ukrainian drone strikes.

Russia suspended gasoline exports from March 1 until August 31, 2024, to ensure supply for the domestic market in peak demand season, in a second such export ban in just a few months. In the autumn of 2023, Russia banned exports of diesel and gasoline in an effort to stabilize domestic fuel prices in the face of soaring prices and shortages as crude oil rallied and the Russian ruble weakened.

Russia has seen its refining capacity diminished in recent weeks, due to seasonal maintenance, but most of all due to drone attacks from Ukraine, which have damaged several refineries that have shut down for repairs.

According to Reuters estimates, the amount of Russian oil refining capacity that has been taken offline due to Ukrainian drone strikes is 14% of Russia’s total refining capacity. Calculations show that 900,000 barrels per day of refining capacity have been taken offline by drone strikes, Reuters reported last month.

Most recently, strong spring floods have shut down one refinery in Russia as they compromised a dam in the area forcing the evacuation of thousands of people.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com: