Crude prices have declined on demands for progress in ending the Russian war, Ukraine

The European Union recently agreed to new sanctions on Russian oil because of its aggression against Ukraine. The sanctions package includes a reduction in 20 other Russian banks from the Swift International Payments System, as well as restrictions on refined Russian oil in other countries. A large oil refinery in India, partly owned by the Russian Rosneft PJSC, was also included in the black menu. In addition, 105 other ships were approved in the shadow fleet in Russia, prompting the number of ships over 400.

A decrease in crude oil that was held all over the world on tank tankers is up to oil prices. Vortexa reported on Monday that crude oil stored on carriers was fixed for at least seven days decreased by -15 % w/W to 79.12 million barrels per week ending August 1.

On Wednesday, the weekly environmental impact assessment report was mainly up to oil and raw products. On the upper side, EIA -3.03 million barrels fell, a lot of 2.6 million barrels. Also, EIA’s gasoline supplies decreased by 1.3 million barrels, a lot of 1.0 million barrel expectations. In addition, EIA’s distillation stocks have decreased unexpectedly by -565,000 BBL against expectations for increasing +811,000 BBL. On the negative side, raw supplies in Cushing, and the Future WTI connecting point, increased by +453,000 BBL.

The weekly EIA report showed on Wednesday that (1) American crude oil lists as of August 1 were less than 6.5 % of the seasonal average for 5 years, (2) gasoline stocks were less than -0.3 % than the seasonal average for 5 years, and (3) distillation stocks by -16.1 %. US crude oil production in the week ended on August 1 -0.2 % w/s to 13.284 million barrels, less than a record level of 13.631 million barrels per day published in the week 12/6/2024.

Baker Hughes said last Friday that the number of American oil platforms active in the week ending August 1 decreased by -5 platforms to the lowest new level 3.75 years from 410 platforms. Over the past 2.5 years, the number of US oil platforms has decreased sharply from the highest level in 627 years of 627 devices reported in December 2022.

On the date of publication, Rich Asplund did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com