DTN Oil Update
Oil Futures Climbed due to Additional Sanctions on Russia
HOUSTON (DTN) -- Oil futures continued their upward trend Wednesday for the third consecutive day, driven by expectations of global supply tightnessâ?¯after EU ambassadors agreed to approve the 15th package of sanctions against Russia Wednesday.
"The packageâ?¯adds more persons and entities to the already existing sanctions list, and targets entities in Russia and in third countries other than Russia that indirectly contribute to Russia's military and technological enhancement through the circumvention of export restrictions," the Hungarian presidency of the Council of the European Unionâ?¯said in statement posted onâ?¯ X.
The sanctions also constrain the activity of additional vessels of third states operating to contribute or support actions or policies supporting Russia's actions against Ukraine, the presidency said.
The sanctions are expected to limit availability of Russian crude and other products, which will put upward pressure on global oil benchmarks.
In contrast, the Organization of the Petroleum Exporting Countries cut its forecast of oil demand growth for this year to 1.61 million bpd from 1.82 million bpd previously estimated. â?¯The oil cartel is targeting an oil demand of 1.45 million bpd for 2025, below its previous forecast of 1.54 million bpd.
OPEC revised its forecast downward on expectations of abundant supplies and sluggish global demand, mainly from China, days after the organization extended voluntary output cuts of 2.2 million bpd until the end of March.
Separately, ExxonMobil announced Wednesday that it expects incremental growth of $20 billion in earnings and $30 billion in cash flow over the next six years. The operatorâ?¯is also targeting 5.4 million boepd by 2030, with production in the Permian Basin seen at nearly 2.3 million boepd.
Nearly 3:02 p.m. EST, WTI futures contract or January delivery rose $1.85 to $70.44 bbl while February Brent was $73.96 bbl, up $1.46. January RBOB futures rose by $0.0335 to $1.9903 gallon and January ULSD futures edged upâ?¯$0.0419 to $2.2280 gallon.
Maria Eugenia Garcia can be reached at Maria.Garcia@dtn.com
