Oil Prices Dip, EU Sanctions 52 Russian Tankers
Oil prices dipped on Tuesday in the global commodity market as demand pressures persist due to weak economic data and the U.S. amidst more sanctions on Russian tankers by the European Union.
Demand concerns from China continue following the recent release of poor economic data. Brent was seen trading near US$74 per barrel while US West Texas Intermediate was hovering below US$71 per barrel on Tuesday.
Meanwhile, reports that the European Union sanctioned 52 additional tankers largely shipping Russian crude offered some support for prices.
According to reports, EU’s Council of Ministers has formally adopted the bloc’s largest sanctions package yet, adding a further 52 dark fleet vessels to its targeted list of blacklisted ships.
The 15th package of sanctions confirmed all of the draft details first reported by Lloyd’s List in November, but with additional ships added since the first draft was circulated among ministers.
Latest round of EU sanctions includes a list of nearly 50 vessels considered to be either engaged in high-risk trades of Russian oil or involved in suspicious activity, including theft of Ukrainian grain from occupied territories
The EU has now sanctioned 79 vessels in total. Both benchmarks fell with ongoing uncertainties surrounding the US Federal Reserve’s (Fed) roadmap for 2025, as well as macroeconomic data pointing to a slowdown in the country’s economic growth.
The manufacturing index announced by the Fed’s New York Branch Monday was below market expectations with 0.2 in December. The country’s manufacturing industry Purchasing Managers Index (PMI) also failed to meet the forecasts, decreasing by 1.4 points monthly to 48.3 in December.
Analysts will closely follow the monetary policy decisions from the Fed and Fed Chairman Jerome Powell’s statements after the meeting on Wednesday.
Also, economic data from China, the world’s largest crude oil importer, increased concerns that oil demand in the country will draw back. Key indicators for November in China showed weak consumer spending.
Analysts stated that recession concerns in the Eurozone continue to affect commodity prices with ongoing weakness, especially in the manufacturing industry, posing a major risk.
On Thursday, the Bank of Japan will announce its interest rate decision, which will give further insight into the bank’s future monetary policy. The bank is expected to continue its stance on tightening monetary policy.
The rise of the US dollar against other currencies also aided the decline in oil prices. The dollar index continues to push its highest level recorded in 2 years. #Oil Prices Dip, EU Sanctions 52 Russian Tankers Equities Investors Gain N138bn as Lafarge, VFD Group Rally
