Confirmation Of A Partial Ban On Russian Oil Imports Throughout The EU Has Lit A Fire Under Energy Futures Prices This Morning
Confirmation of a partial ban on Russian oil imports throughout the EU has lit a fire under energy futures prices this morning. In a last-minute compromise to pass the embargo, the Union decided to block all Russian imports except those which arrive by pipeline, which make up somewhere between 15%-30%. Energy prices reacted to the news of less supply in the market as expected with the prompt month WTI futures jumping 3% to over $118 per barrel.
The July RBOB contract, being referenced by the majority of physical markets since the June contract expires today, is exchanging hands at over $4 per gallon, a dime over Friday’s settlement. July HO futures are outpacing their counterparts, adding 20 cents so far this morning, likely due to news that the Netherlands is the latest addition to the list of countries Russia has cut natural gas supplies to. Poland, Bulgaria, and now the Netherlands were all cut off for refusing to pay in rubles, while Finland had their supplies shuttered for applying to join NATO.
The first hurricane of the season, Agatha, made landfall as a category 2 storm on the west coast of southern Mexico. While causing flash-floods and mudslides in the area it initially hit, there it is a chance the diminished-but-still-organized storm could redevelop in the Gulf of Mexico and threaten the south US. Right now the National Hurricane Center gives 10% odds that Agatha can reorganize in the next 48 hours to become the first storm in the Atlantic basin this year.