Oil prices are climbing once again globally on the news that the EU has agreed to a partial ban on Russian oil imports. Whilst Russia will almost inevitably see its production decline as a result of the ban, the general anticipation is that Asia, and especially China, will ramp up its purchases.

The European Union finally reached an agreement on Russian oil sanctions, aiming for a six-month phase-in period, giving a temporary waiver for crude oil delivered by pipeline, without specifying their wind-down period.

US gasoline prices have strengthened during the long Memorial Day holiday weekend, with nationwide prices trending at $4.62 per US gallon, boosted by strong driving demand and low availability of high-octane components across the Americas.

Merely a couple of days after the US seizure of two vessels allegedly carrying Iranian crude, Teheran has seized two Greek-flagged vessels that it claims were smuggling fuel, making the likelihood of a nuclear pact even thinner. 

According to an internal power ministry presentation reported by Reuters, India is expected to face an even worse coal shortage over the next quarter ending September, assuming that coal supply will fall 42.5 million tons short of demand over that period. 

In another wave of Russia becoming ever-more reliant on itself amidst sweeping sanctions, the Moscow government is considering amendments to the country’s subsoil law that would make it illegal for foreign companies to access its oil and gas reserves. 

With the May 31 payment deadline looming today, Gazprom has cut gas supplies to Denmark’s Orsted as well as Shell, with both companies refusing to pay the Russian company in rubles. 

Media reports are suggesting that Russian oil production increased by 1% month-on-month and rose to 10.17 million b/d this month so far, implying that the 10 million b/d through last month might be the low point of output.

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