Monday, April 15 2024

Missed opportunities
Late in December 2023, the United States Treasury warned that it would apply sanctions on foreign banks for evading the Russian price cap and called on them to boost compliance. Playing it safe, banks in China, Turkey and the United Arab Emirates (UAE) that work with Russia increased checks. They have now begun asking for extra documentation and have trained more staff to make sure deals were compliant with the price caps, Reuters reported, quoting eight sources familiar with the matter. Russian oil firms are consequently facing delays of up to several months or even rejection of money transfers into their accounts in Moscow. Cautious of US secondary sanctions, these banks are now asking clients to provide written guarantees that no person or entity from the US Special Designated Nationals (SDN) list is a payment beneficiary or involved in a deal.
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Up to Rs8.50 hike in fuel prices likely
While the impact of the Middle East escalation is yet to materialise, the higher international market is estimated to push up the prices of petrol and high-speed diesel by about Rs2.50 and Rs8.50 per litre, respectively on Monday (April 15) for the next fortnight, despite a decline in the import premium and a slightly improved exchange rate. Informed sources said the prices of petrol and HSD had increased in the international market by about $4 and $4.50 per barrel, respectively, during the last fortnight, before the latest escalation. Depending on final calculation, the price of petrol is projected to be higher by Rs2.50 to Rs2.80 and that of HSD to go up by Rs8 to Rs8.50 per litre. Interestingly, the imp­ort premium on petrol has dropped by almost 21pc to $10.7 per barrel over the last fortnight when compared to $13.50 in last few days of March and the rupee strengthened by about 40 paisa against a dollar to Rs278.20. The net impact is estimated to be about Rs2.80 per litre increase in petrol price from existing rate of Rs289.41.
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Tuesday, April 09 2024

Oil falls 1pc on Gaza ceasefire talks
Oil prices fell over a dollar a barrel on Monday after Israel reduced its troops in southern Gaza and began a fresh round of ceasefire talks with Hamas. Brent crude futures fell $1.07, or 1.2 per cent, to $90.10 a barrel by 1:26 p.m. ET (1726 GMT). US West Texas Intermediate crude was down 85 cents, or 1pc, at $86.06. Both benchmarks fell more than $2 earlier in the session, with investors focusing on Israel’s decision to withdraw more soldiers from southern Gaza on Sunday. Also weighing on oil prices were expectations that US crude oil stocks likely rose last week, Staunovo said. However, the decline in oil prices should be modest until it becomes clear how Iran will respond to the bombing of its consulate in Syria last week, he added.
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OGDCL finds tight gas
The state-run Oil and Gas Development Company Ltd (OGDCL) on Monday announced to have discovered tight gas at its exploratory Well Nur West-01, situated in the Sujawal district of Sindh. OGDCL is the sole operator with a 100pc stake in Nur Development & Production Lease. A company statement said the structure of Nur West-01 was drilled and tested using OGDCL’s in-house expertise to a depth of 2,975 metres. The well tested 1.24 million standard cubic feet per day of gas through a 32/64” choke at a wellhead flowing pressure of 150 Pounds per Square Inch from the Lower Goru Formation (‘A’ Sand). The discovery is being evaluated as Tight Gas, the company said. The statement said the success at Nur West-01 was the result of the company’s steadfast commitment to strategic exploration initiatives to augment the hydrocarbon reserve base of both OGDCL and the country.
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Wednesday, April 03 2024

Brent oil hits highest price this year
Global oil benchmark Brent on Tuesday rose above $89 a barrel for the first time since October, albeit briefly, as oil supplies faced fresh threats from Ukrainian attacks on Russian energy facilities and escalating conflict in the Middle East. Brent futures for June delivery were up $1.35, or 1.5 per cent, at $88.76 a barrel by 11:40 a.m. EDT (1540 GMT) after touching a peak of $89.08. US West Texas Intermediate (WTI) crude futures for May rose $1.27, or about 1.5pc, to $84.98 after touching a peak of $85.46, also the highest since October. A Ukrainian drone struck one of Russia’s biggest refineries on Tuesday in an attack that Russia initially said it repelled.
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