February saw stable oil production in Russia
According to Deputy Prime Minister Alexander Novak on Wednesday, Russia’s daily crude oil production has been consistent with January’s output of between 9.8 million and 9.9 million barrels per day (bpd).
Furthermore, Novak also assured reporters that by the beginning of March. Moscow would devise countermeasures to the ban the EU placed on Russian oil products last week. He claimed on Wednesday that actions taken by the European Union. In order to increase what he called “exemptions” from its price restrictions on oil goods demonstrated the continued need for Russian oil. Consumers in Europe, according to Novak, wouldn’t be able to survive without Russian oil products.
European reaction
In December, Western nations banned the import of seaborne Russian oil. And set a price restriction of $60 per barrel, still higher than the price of Russia’s flagship Urals crude blend at the time. Brent oil futures increased by more than 1% to over $85 per barrel. Continuing their upward trend for a third session on the back of expectations for a pickup in demand.
According to the most recent API report, US crude stocks fell by 2.18 million barrels last week. Contrary to expectations for a 2.15 million barrel rise. Additionally, Saudi Arabia, the top producer in the world. Increased crude prices for Asian markets for the first time in six months as the most recent indication that demand may be ready to rebound. This in response to the probability of larger imports from China.
After Federal Reserve Chair Jerome Powell made less hawkish comments than markets had anticipated, risk assets gained more support as optimism in the US economy’s potential to escape a recession grew. An unexpected shutdown of a significant oil field in Norway and the suspension of operations at a critical oil port in Turkey as a result of the recent earthquake added to the optimistic sentiment on the supply side.
A fire breaks out at a Russian oil plant near the Ukrainian border
On Wednesday, a fire started at an oil refinery in the southern Rostov region of Russia, close to the Ukrainian border, and was later put out, according to reports in state media citing the emergency ministry.
The small refinery belonged to a company by the name of Resource LLC. According to a report by Interfax news agency. The fire started over an area of about 100 square meters and was put out about an hour later. The fire was started by a “violation of technological process.” The emergency service was quoted as saying.