The energy sector is off to a higher start, supported...
The energy sector is off to a higher start, supported by strength in the underlying commodities. U.S. stock index futures slipped on Monday as Treasury yields continued to rise in expectation of a tighter monetary policy, while Bank of America wrapped up earnings from Wall Street lenders with a better-than-expected quarterly profit.
WTI and Brent crude oil are up in early trading, erasing earlier losses that were caused by worries over slowing demand in China. However, concerns over tight global supply, the war in Ukraine and outages in Libya pushed oil prices into positive territory. Adding to supply pressures from sanctions on Russia, Libya's National Oil Corp warned "a painful wave of closures" had begun hitting its facilities and declared force majeure at Al-Sharara oilfield and other sites. NOC said the closures were caused by "a group of individuals" entering facilities. Groups in eastern Libya protesting at oil plants want the Tripoli-based prime minister to quit in favor of a recently appointed rival. With global energy markets already restricted due to the Ukraine crisis, more losses from Libya's recent 1.2 million barrels-per-day average output will put further pressure on prices.
Late last week, Moody’s Investors Service warned the country’s decision to make payments on the dollar-issued debt in rubles would constitute a default because it violates the terms of the contract. A 30-day grace period allows Russia until May 4 to convert the payments to dollars to avoid default.
Default is one of the clearest signals that the sanctions imposed by the U.S. and other countries are having their intended effect on the Russian economy. But will it have any impact on Russia’s ability to wage war in Ukraine?
Putin tells Europe: You still need Russian gas but we're turning east
(Reuters) -President Vladimir Putin said late last week that Moscow would work to redirect its energy...
(Reuters) -President Vladimir Putin said late last week that Moscow would work to redirect its energy exports eastward as Europe tries to reduce its reliance on them, adding that European nations would not be able to ditch Russian gas immediately.
Russia supplies around 40% of the EU's natural gas, and western sanctions over what Moscow calls its "special military operation" in Ukraine have hit its energy exports by complicating the financing and logistics of existing deals.
Cash-Strapped Pakistan Cuts Power to Households on Fuel Shortage
(Bloomberg) Pakistan is cutting electricity to households and industry as the cash-strapped...
(Bloomberg) Pakistan is cutting electricity to households and industry as the cash-strapped country can no longer afford to buy coal or natural gas from overseas to fuel its power plants.
About 3,500 megawatts worth of power capacity had been shut due to the fuel shortages as of April 13, according to a Twitter post by Miftah Ismail, who has been selected as finance minister by new Prime Minister Shehbaz Sharif. A similar amount is offline due to technical faults, he said. The more than 7,000 megawatts represents almost a fifth of total generation capacity, according to Tahir Abbas, the head of research at Arif Habib Ltd. in Karachi.
Oil prices hit near 3-week highs on supply fears amid deepening Ukraine crisis
TOKYO (Reuters) -Oil prices climbed to nearly three-week highs on Monday as fears over tight global supply...
TOKYO (Reuters) -Oil prices climbed to nearly three-week highs on Monday as fears over tight global supply grew, with the deepening crisis in Ukraine raising the prospect of heavier sanctions by the West on top exporter Russia.
Brent futures were up $1.09, or 1.0%, at $112.79 a barrel at 0445 GMT, after hitting its highest since March 30 of $113.80 earlier in the session.
U.S. West Texas Intermediate futures rose $1.00, or 0.9%, to $107.95 a barrel, having gained to as high as $108.55, the highest since March 30.
