Palm oil gains over 4% on the back of higher crude oil prices
Malaysian palm futures gained on Friday and posted a second week of gains. This was due to a rise in crude oil prices as a result of the Middle East conflict, which boosted demand for feedstocks used to make biodiesel. The benchmark May palm oil contract on the Bursa Derivatives Exchange rose 23 ringgit or 0.51% to 4,564 Ringgit ($1,159.26), and was up 4.69% over the week. The biggest daily increase in three years was a surge of more than 9% on Monday. Dalian's most active soyoil contract grew by 0.53% while its palm oil contract grew by 0.62%. Chicago Board of Trade Soyoil lost 0.55%.
Palm oil is set to record a weekly gain as it rises against strong Dalian competitors
The price of Malaysian palm oils rose on Friday and was set to gain for a?second week in a row, as the prices of rival edible oils were also rising at 'Dalian. By Friday's midday, the benchmark palm oil contract for?May delivery at the Bursa Derivatives Exchange had gained 56 ringgit or 1.23% to 4,597 Ringgit ($1,169.42). The weekly gain is 5.27%. Dalian's palm oil contract increased 1.34% on Friday while the most active soyoil contract gained 1.27 %. Soyoil traded on the Chicago Board of Trade fell 0.04%.
EU considers gas price cap as a way to control rising energy costs
The European Union is considering measures to?reduce energy prices. This includes capping gas price, said European Commission President Ursula von der Leyen on Wednesday. Before the Iran War caused oil and gas to surge, Brussels was drafting proposals for industries who claim that high energy costs make it impossible to compete with their rivals in China or the United States. The EU's electric system is set up so that the price of electricity is determined by the last power station needed to meet the total demand. Gas plants are often the last power plant needed to meet total demand.
US-Israeli War on Iran Causes Major Oil, Gas Disruptions
Kuwait announced?cuts at the weekend due to the U.S. and Israel war against Iran. Analysts predict the United Arab Emirates (UAE) and Saudi Arabia, which are running out of oil storage, will have to reduce their output as well. Here are the main energy disruptions that have occurred so far. Three industry sources reported on March 8 that the Iraqi production has collapsed: "the country's oil output from its southern oilfields is down 70%, to 1.3 million barrels a day (bpd), from 4.3 millions barrels a day (bpd), before the war.
US-Israeli War on Iran Causes Major Oil, Gas Disruptions
The U.S. and Israeli war against Iran has caused oil and gas exports to be disrupted from the Middle East. Production was stopped from Qatar all the way up to Iraq. Kuwait announced cuts this weekend. Analysts predict the United Arab Emirates (UAE) and Saudi Arabia, too, will have to reduce their output as soon as possible when they run out of oil storage. Kuwait Force Majeure: Kuwait Petroleum Corporation cut oil output and declared force majeure March 7, due to the war that shut down exports through the Strait of Hormuz.
Iran War threatens to hit global energy markets for a long time
Even if the U.S. and Israel's war against Iran ends soon, consumers and businesses around the world could face weeks or even months of higher fuel costs as suppliers deal with damaged facilities and logistics and increased shipping risks. This outlook is a threat to the global economy and to President Donald Trump's political position as he heads into midterm elections. Voters are concerned about energy costs and do not like foreign involvement. JP Morgan analysts stated in a research…
The Iran War threatens to have a long-lasting impact on global energy markets
Even if the conflict with Iran ends soon, consumers and businesses could face weeks or even months of higher fuel prices. This is because suppliers are dealing with damaged facilities, disrupted logistic, and increased risks in shipping. This outlook is a greater threat to global economic stability and a political vulnerability to U.S. president Donald Trump as we approach the midterms. Voters are sensitive to energy costs and do not like foreign involvement. In a Friday research note…
MOL Announces Capacity Tests on Adria Pipeline Will Start Next Week
Hungary's oil and gas company MOL said on Friday that capacity tests on the Adria oil pipeline from Croatia will start on March 11 and last 10 months, as it seeks alternative routes with Russian crude supplies set to stop at the end of 2027.MOL, which operates refineries in Hungary and Slovakia, has questioned whether the Adria pipeline can meet its needs, concerns dismissed by Croatian operator JANAF.Hungary and Slovakia are keen to keep supplies coming from Russia and have exemptions from current European Union sanctions.
MOL, Slovnaft Report JANAF to EU Watchdog in Fight Over Russian Oil Transport
Hungarian oil company MOL and its Slovak subsidiary Slovnaft have reported Croatian oil pipeline operator JANAF to the EU competition watchdog over its refusal to allow the transit of Russian seaborne oil imports, they said on Wednesday.The Hungarian oil and gas group has grappled since the end of January with an outage of Russian crude deliveries through the Druzhba pipeline transiting Ukraine, and has had to rely more on the Adriatic pipeline from Croatia.Hungary and Slovakia have been given exemptions to EU restrictions on Russian oil to give them time to diversify supplies.
US-Israeli War on Iran Causes Major Oil, Gas Disruptions
The U.S. and Israel war against?Iran disrupted oil exports to the Middle East, forcing production stops from Qatar to Iraq. Here are the major energy disruptions that have occurred so far. Iraq's OPEC's second largest producer, Iraq, slashes production: Iraq?has reduced almost 1.5 million barrels a day?due...to storage limitations and the lack.of an export route. Officials told. The country could be forced to close 3 million barrels per day within days if the exports don't resume.
Source: Russia is ready to divert oil from Middle East to India due to Middle East conflict disrupting flows.
An 'industry source' with direct knowledge said that Russia was ready to divert oil from the Middle East to India in order to counter supply disruptions. About 9.5 million barrels of Russian crude are currently on vessels near Indian waters, and could arrive within weeks. Sources declined to reveal the original destination of the non-Russian cargoes, but they said that they could be delivered to India in a matter of weeks. This would provide refiners with immediate relief. India is susceptible to supply shocks. Crude stocks cover only 25 days' worth of demand.
Japan's Middle East Energy Dependency - and How it Mitigates Shocks
Around 95% of Japan's oil and 11% of its liquefied gas is imported from the Middle East. Around 70% and 6% of these imports come via the Strait of Hormuz which has been effectively closed by the Iran War. Here's a breakdown of Japan's energy dependence on the Middle East and how it can reduce its import risk. Around 95% of Japan's oil imports come from the Middle East. In January, Japan imported an average of 2.8 million barrels per day of crude oil, of which 1.6 millions bpd were from Saudi Arabia, with additional supplies coming from Kuwait, Qatar, and the United Arab Emirates.
Palmetto falls after three sessions on the basis of profit-taking
Malaysian palm futures declined on Wednesday, after reaching a near four-week-high in the previous session. Profit-taking and falling edible oil prices from Dalian and Chicago weighed on the contract. After three consecutive sessions of gains, the benchmark palm oil contract for?May delivery at the Bursa Derivatives exchange lost 32 ringgit or 0.76% to 4,154 Ringgit ($1,052.18) per metric ton. Today's crude palm future will track the soft Dalian and Chicago soybean oil to take profits?after the rally.
US-Israeli War on Iran Causes Major Oil, Gas Disruptions
The U.S. and Israel war against Iran has caused oil and gas exports to be disrupted from the Middle East, and production from Qatar?to Iraq was forced to stop. Here are the major energy disruptions that have occurred so far. Iraq, OPEC’s?second largest producer, has reduced?output by almost a third due to storage limitations and the absence of export routes, officials said. The country could be forced to close 3 million barrels per day, or nearly all its production, within days, if exports don't resume. QatarEnergy LNG halted operations: Qatar ceased operations at its LNG plants on Monday.
Russell: China imports most energy but has the best position on Iran
China is the largest energy importer in the world and would appear to be vulnerable to the rise in crude oil and gas prices caused by the conflict between Israel, the United States and Iran. China's huge crude oil stockpile is a buffer against price spikes. This means that any energy-driven inflation in other parts of the world won't hit China. By increasing the exports of refined goods, China's refiners may also be able to reap a windfall profit in 'the?event?of a prolonged disruption of crude oil supplies from the Middle East.
Russell: China imports most energy but has the best position on Iran
China, the world's biggest energy importer, is vulnerable to the rise in prices of crude oil and natural gas caused by the conflict between Israel and United States against Iran. China's huge crude oil stockpile is likely to be a buffer against any price spikes in the world, so that any energy-driven inflation will not affect China. In the event that crude oil supplies from the Middle East are disrupted for a long time, it is possible that China’s refiners could make a windfall profit by increasing exports of refined goods.
Middle East is a major source of oil and LNG globally
India and other Asian countries are most dependent on Middle East oil and gas, which makes them vulnerable to supply disruptions if the conflict that has erupted following the Israeli and U.S. attack on Iran continues. Here is an overview of the imports and stockpiles of major Middle Eastern buyers. INDIA In January, the share of Middle Eastern crude oil in India’s crude imports reached its highest level since late 2022. This is amounted to?about 2,74 million barrels a day. Refiners have reduced their intakes of Russian oil.
China Oil Refiners Feel Safe From Iran Conflict Disruption with Crude Stockpile
Refiners in China, the world's top oil importer, have enough supply on hand to weather near-term disruption from the Iran conflict, bolstered by recent record purchases of Iranian and Russian crude and robust government stockpiling, traders said.A prolonged supply disruption could, however, force the country's refiners to curb output and run down commercial stockpiles, some of the traders said.China has around 900 million barrels in strategic inventories, or 78 days' worth of imports…
Asia's dependence on Middle East oil and LNG
Asia is highly dependent on Middle East oil and gas, which makes it vulnerable to a prolonged disruption of supply if the conflict that has erupted following the Israeli and U.S. attacks on Iran continues. Here is an overview of the imports and stocks for major Asian buyers who buy Middle Eastern oil and natural gas. CHINA China is currently the largest crude oil importer in the world and also the biggest buyer of Iranian crude. However, record amounts of crude are stored in strategic and floating stockpiles which limit the risk of shortages.
carried Ukrainian and Russian oil before attack
The Druzhba pipeline exported some Ukrainian oil, as well as much higher volumes of Russian crude, before it was damaged a month ago by a Russian strike that has led to a halt in supply, three industry sources familiar with the matter said.Oil shipments to Hungary and Slovakia through the pipeline primarily operated by Russia have been suspended since January 27 following what Kyiv says was a Russian attack on pumping installations in western Ukraine, prompting a dispute within the…