Market News The decline of international oil prices is limited, and the conflict between Russia and Ukraine covers up the existing contradictions
The decline of international oil prices is limited, and the conflict between Russia and Ukraine covers up the existing contradictions
International oil prices came under pressure on Tuesday (May 24) on fears of a possible global recession, but tight supply and expectations of a pick-up in fuel demand during the U.S. summer driving season limited losses. Nasser, head of Saudi oil company Aramco, said the conflict between Russia and Ukraine overshadowed what had already happened, with less than 2% of global spare capacity, and most companies are afraid to invest in the petrochemical industry because they are under pressure from green energy.
2022-05-24
10511
International oil prices came under pressure on Tuesday (May 24) on fears of a possible global recession, but tight supply and expectations of a pick-up in fuel demand during the U.S. summer driving season limited the decline.
At 16:49 GMT+8, NYMEX crude oil futures sank 0.16% to $110.11 a barrel; ICE Brent crude futures fell 0.20% to $113.19 a barrel. The largest intraday declines in the two cities reached 1.80% and 1.56% respectively.
At the annual economic summit in Davos, financial elites worry about multiple threats to the global economy. Soaring prices have undermined consumer confidence and rattled financial markets around the world, prompting central banks including the Federal Reserve to raise interest rates. Meanwhile, the negative impact of the Russian-Ukrainian war on oil and food markets has added to the pessimism.
German Deputy Chancellor Habeck said: "We have at least four crises that are intertwined. We have high inflation ... we have an energy crisis ... we have a food shortage, we have a climate crisis. Even if we focus on one of them, We can't fix everything either. But if we don't fix anything, I'm really worried about going into a recession with a huge impact on global stability."
The EU could agree an embargo on Russian oil imports "within a few days", according to top member Germany. With some member states heavily dependent on Russian energy, the EU has not been able to act quickly. The EU has provided up to 2 billion euros in aid to Middle Eastern countries that lack energy supplies outside Russia.
Crude losses were limited, however, as supplies were tight and gasoline demand was expected to remain high. Driving season in the U.S. begins this weekend on Memorial Day and runs through Labor Day in September.
Nasser, head of Saudi oil company Aramco, said on Monday that the world is facing an oil supply crunch and that most companies are afraid to invest in the industry because they are under pressure for green energy. He added that the company cannot expand capacity faster than previously promised.
Nasser said he would stick to his 2027 capacity target — expanding to 13 million barrels a day from the current 12 million barrels a day — despite calls for a faster pace, “with less than 2 percent of global spare capacity. Before the coronavirus outbreak, aviation The industry consumes 2.5 million barrels more fuel per day than it is now. If the aviation industry recovers quickly, there will be big problems. The Russian-Ukrainian conflict overshadows what has already happened, we are going through an energy crisis due to lack of investment, in the middle of the pandemic It started to be affected after that.”
At 16:49 GMT+8, NYMEX crude oil futures sank 0.16% to $110.11 a barrel; ICE Brent crude futures fell 0.20% to $113.19 a barrel. The largest intraday declines in the two cities reached 1.80% and 1.56% respectively.
At the annual economic summit in Davos, financial elites worry about multiple threats to the global economy. Soaring prices have undermined consumer confidence and rattled financial markets around the world, prompting central banks including the Federal Reserve to raise interest rates. Meanwhile, the negative impact of the Russian-Ukrainian war on oil and food markets has added to the pessimism.
German Deputy Chancellor Habeck said: "We have at least four crises that are intertwined. We have high inflation ... we have an energy crisis ... we have a food shortage, we have a climate crisis. Even if we focus on one of them, We can't fix everything either. But if we don't fix anything, I'm really worried about going into a recession with a huge impact on global stability."
The EU could agree an embargo on Russian oil imports "within a few days", according to top member Germany. With some member states heavily dependent on Russian energy, the EU has not been able to act quickly. The EU has provided up to 2 billion euros in aid to Middle Eastern countries that lack energy supplies outside Russia.
Crude losses were limited, however, as supplies were tight and gasoline demand was expected to remain high. Driving season in the U.S. begins this weekend on Memorial Day and runs through Labor Day in September.
Nasser, head of Saudi oil company Aramco, said on Monday that the world is facing an oil supply crunch and that most companies are afraid to invest in the industry because they are under pressure for green energy. He added that the company cannot expand capacity faster than previously promised.
Nasser said he would stick to his 2027 capacity target — expanding to 13 million barrels a day from the current 12 million barrels a day — despite calls for a faster pace, “with less than 2 percent of global spare capacity. Before the coronavirus outbreak, aviation The industry consumes 2.5 million barrels more fuel per day than it is now. If the aviation industry recovers quickly, there will be big problems. The Russian-Ukrainian conflict overshadows what has already happened, we are going through an energy crisis due to lack of investment, in the middle of the pandemic It started to be affected after that.”
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