Archives for September 2021

According to these sources, the swaps are set to begin this week and last for six months, although they could be extended. The imports of Iranian superlight crude will help Venezuela revive its falling oil exports amid US sanctions that, among other problems, have cut off the country’s access to the light oil that is used to blend with its superheavy to make it exportable.

For Iran, the deal will bring in heavy crude it could sell in Asia, the Reuters sources also said. The diluted Venezuela crude will also likely go to Asian buyers.

Also on rt.com US sanctions become blessing in disguise for Iran’s energy sector

Reuters also reported that, according to the US Treasury Department, the deal could constitute a breach of sanctions, to which both Venezuela and Iran are subjects.

“Transactions with NIOC by non-US persons are generally subject to secondary sanctions,” the Treasury Department said in response to a Reuters request for comments on the deal. It added that it “retains authority to impose sanctions on any person that is determined to operate in the oil sector of the Venezuelan economy.”

Despite the sanction noose, Venezuela has been ramping up its oil exports, generating vital revenue. According to a recent Reuters report, the country, which is home to the world’s largest oil reserves, exported more than 700,000 bpd of crude in July—the highest daily export rate since February.

Most of the oil went to China and Malaysia, although the latter is usually only a stop along Venezuelan oil’s trip to China. The same report noted that three of the five crude oil blending facilities in the Orinoco Belt were operational, and another crude upgrader was preparing to restart operations after a year’s pause.

Also on rt.com India hopes to import more Iranian, Venezuelan crude under Biden

Iran, meanwhile, recently revealed plans to attract some $145 billion in oil and gas investments from both local and foreign sources.

“We plan to invest $145 billion in the development of the upstream and downstream oil industry over the next four to eight years, hence I welcome the presence of domestic and foreign investors in the industry,” Javad Owji, Iran’s new oil minister, said during a meeting with executives from China’s oil giant Sinopec.

This article was originally published on Oilprice.com

Article source: https://www.rt.com/business/536035-iran-venezuela-oil-swap-deal/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The price of October futures on the Dutch TTF exchange surged to $1,031.30 per 1,000 cubic meters, with the overall increase in gas prices since the beginning of the trading day exceeding 11%. The price of November futures on the TTF has reached almost $1,040 per 1,000 cubic meters.

European gas prices may continue to rise and break new records in the event of a cold winter and a physical shortage of gas on the market, according to international rating agency Fitch.

Also on rt.com Electricity prices to spike 10% in France this winter, consumer group warns

“The main test for gas prices and consumers will be in winter – in case of cold weather and physical shortage, prices may soar even higher than now,” Dmitry Marinchenko, the senior director of the group for natural resources and commodities at Fitch, told TASS.

Russian experts had warned that gas prices could surge due to a number of factors, including demand in Asia, the weather in Europe and the coming winter season, as well as the timing of the launch of Russia’s Nord Stream 2 pipeline. Low gas-storage volumes across the continent and unusually high demand for the current season also add to the prospects of record highs on the European gas market.

According to the chairman of Russia’s Gazprom, Alexey Miller, growing demand in Europe and a lag in filling underground storage facilities will continue to push natural gas prices higher.

Also on rt.com Russia could offer extra gas to Western Europe as consumers see energy bills skyrocket amid squeeze on supplies, Kremlin reveals

Sergey Komlev, the department head at Gazprom Export, said that pipeline gas supplies from Russia to Europe this year are at historic highs, with Gazprom increasing gas production by 18.4% year-on-year.

At the same time, the European gas market in the first half of 2021 faced an outflow of liquefied natural gas (LNG) to the Asia-Pacific and South American markets, with its share in imports dropping from 41.5% to 31%. In absolute terms, LNG supplies to Europe during this period decreased by 10.74 billion cubic meters (15.9%).

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/536001-europe-gas-price-record-high/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“We need a long-term contract that will cover our operational needs,” head of GTS Ukraine Sergei Makogon said on Tuesday.

Also on rt.com Hungary inks new gas supply agreement with Russia, bypassing Ukraine

Makogon stressed that servicing the country’s gas transmission system is expensive, being an enormous infrastructure with thousands of workers. Therefore, it will be difficult for Ukraine to maintain it “without significant long-term commitments,” he stressed.

Kiev strongly opposes the launch of Russia’s newly constructed Nord Stream 2 pipeline, fearing Moscow could scrap the transit contract with Ukraine and switch entirely or in part to the new system.

“Nord Stream 2 and Turkish Stream 2. What should Europe do? Investigate the abuse of dominance. Show solidarity. Answer resolutely. Protect transit through Ukraine. Do not give exceptions to EU rules,” read the presentation to Makogan’s speech at the conference.

Also on rt.com Gas or gaslighting? Ukraine accuses Russia of weaponizing energy resources

Russia, however, repeatedly stated that it will respect commitments under the gas transit deal with Kiev. At the end of 2019, Russia and Ukraine signed a raft of agreements on the continuation of gas transit through Ukraine’s territory, including a five-year transit contract, according to which Russia’s state energy major Gazprom guaranteed the pumping of 65 billion cubic meters of gas during the first year and 40 billion cubic meters of gas annually over the next four years.

The head of Gazprom, Alexey Miller, recently said that the company is ready to continue gas transit through Ukraine after 2024, depending on economic feasibility and the technical condition of Ukraine’s gas transportation network. At the same time, he pointed out that the volumes of transit will have to be adjusted to the new volumes of purchases of Russian gas by EU states with consideration of Nord Stream 2 contracts.

Also on rt.com Poland has no power to veto certification of Nord Stream 2 – Germany

The new Russian pipeline is awaiting EU certification to launch deliveries. The process could take up to four months due to bureaucratic procedures in Brussels as well as opposition to the project from Washington and some Eastern European states.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/535996-ukraine-needs-gas-contract-russia/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

As of 5am GMT, the price of December Brent futures grew by 0.85% to $79.36 per barrel, while November futures jumped by 0.83%, to $80.19, reaching $80.35 earlier on Tuesday. US benchmark West Texas Intermediate (WTI) November futures were also up, gaining 0.85% to $76.09 a barrel.

Also on rt.com Global energy supply crunch pushes oil prices to three-year high

The rise in oil prices comes amid signs of an improving outlook for global energy demand. At the same time, global refineries are failing to keep up, as supply is growing at a slower pace despite the efforts of OPEC. The group and its allies, including Russia, have been easing supply curbs initially introduced at the height of the Covid-19 pandemic. Markets are also awaiting a new OPEC forecast on global oil outlook later on Tuesday, which will detail the group’s views on market fundamentals.

Market experts say prices could continue to grow, with fuel demand projected to reach pre-pandemic levels by early next year.

Also on rt.com UK may call in the army to tackle ongoing petrol crisis – reports

“Oil demand could rise by 500,000 barrels a day as high gas prices are forcing consumers to switch to other feedstocks,” Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, told Bloomberg. The expert says this will increase the supply deficit in the markets, especially given the fact that OPEC and allies’ production increase of 400,000 barrels a day each month will add only about 2% to the world’s supply by the end of the year.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/535995-oil-rallies-short-supply/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Robert Kaplan of Dallas followed Eric Rosengren of Boston in announcing an early retirement on Monday. Both executives are 64, a year short of the mandatory retirement age at the Fed.

Rosengren said he would retire on Thursday, rather than in July 2022, citing health reasons – an upcoming kidney transplant to help him deal with a chronic condition, specifically. Kaplan will also retire effective October 8, because “the recent focus on my financial disclosure risks becoming a distraction” to the “vital” work of deliberating future monetary policy at “a critical point in our economic recovery,” he said.

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The early retirements come following last week’s disclosures that Kaplan traded stocks of Amazon, Facebook and Johnson Johnson – among others – in 2020, even while the Fed’s measures to deal with the economic fallout of the coronavirus pandemic boosted their profits and shares. Rosengren, meanwhile, invested in real estate trusts that dealt with mortgage-backed bonds the Fed was buying up to influence borrowing rates.

Fed chair Jerome Powell said the trades were technically legal under existing rules, but vowed to tighten ethics regulations in order to ensure the credibility of the Federal Reserve, the quasi-private institution that functions as the de facto central bank of the US.

The Fed has 12 regional banks and their presidents serve on the Federal Open Market Committee, with a rotating vote every three years. Rosengren was scheduled to be a voting member of the FOMC in 2022.

Journalists hastened to claim credit for the highly unusual departure of two regional bank chairs, with a Washington Post economics correspondent citing the work of her colleague at the Wall Street Journal as key to this turn of events.

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Article source: https://www.rt.com/business/535987-federal-reserve-retiring-ethics/?utm_source=rss&utm_medium=rss&utm_campaign=RSS