På et EU-topmøde i dag og i morgen bliver hovedpunktet et forbud mod import af olie, men det bliver meget svært at nå til enighed, viser forhandlinger op til topmødet. Også Tyskland udtrykker tvivl om et resultat. Ungarn stritter voldsomt imod, men det er måske også et spil for at få EU til at betale for en ny olieledning fra Kroatien. Olieprisen er steget med 6 pct. i den forgangne uge til ca. 120 dollar pr. tønde. Olielandene mødes på torsdag, men der er ingen udsigt til, at de vil øge produktionen. Prisen på en række metalvarer er steget som følge af en svækket dollar.
The Commodities Feed: EU still working towards Russian oil ban
Energy
Oil finished last week off strongly. ICE Brent settled above US$119/bbl, which took its gains for the week to more than 6%. Tightness in the refined products market continues to prove supportive for crude oil prices, as healthy refinery margins should see refiners maximize their run rates.
Last week, there were also reports that the US administration was talking to the domestic industry to see whether they could bring back shut refining capacity in order to help improve refined product supply.
Over the weekend, EU diplomats failed to come to an agreement on the EU’s proposed ban on Russian oil ahead of a 2-day summit with EU leaders starting today. There are reports that despite concessions provided to Hungary, which would exclude oil that flows through the Druzhba pipeline from the ban, Hungary is still blocking the agreement. Hungary wants EU funding in order to help them increase pipeline capacity from Croatia and also for refiners to be able to switch to alternative crude.
Diplomats are expected to meet ahead of the summit today, however, it’s unlikely that members come to an agreement when they meet, given that talks have not progressed enough.
OPEC+ are set to meet on Thursday to discuss their production policy for July. We continue to expect no change in the group’s approach and expect confirmation that they will increase output levels by a little over 400Mbbls/d over the month. However, as we have seen for several months now, it is unlikely that members will produce anywhere near their agreed output levels.
Metals
Base metals rebounded on Friday along with other risk assets. A weaker dollar last week offered a temporary boost to the metals complex. LME nickel jumped over 7% at one stage on Friday, which saw the market hit an intraday high of US$29,100/t (highest since May 9). Total open interest in the LME nickel market dropped to 161,884 contracts on Wednesday last week, the lowest since 2012.
