Oil prices rise due to a possible US ban on buying oil from Russia

The entire civilized world is tightening sanctions against the Russian economy in order to force the Kremlin authorities to stop the senseless war against Ukraine for the 21st century. After the shutdown of the Russian financial system, the possibility of banning the purchase of Russian oil for the United States is now being considered, which will make it impossible for EU countries to purchase it. This leads to a rapid increase in world oil prices.

The tough resistance of the army and the entire people of Ukraine has shown the world that the country is not going to surrender to the Putin regime. During the 11 days of the war, a third of the Russian occupation forces that were accumulated along the borders and brought into Ukraine were disabled.

The total estimated losses of the enemy from 24.02 to 07.03 were (+for the last day):

• personnel - more than 11,000 people (including the wounded, 46 thousand soldiers were withdrawn from service),
• aircraft-46 units (+2), 
• helicopters-68 units (+20!), 
• tanks ‒ 290 (+5), 
• BBM-999 (+14), 
• artillery systems - 117 (+8), 
• air defense systems – 23 (+2),
• MLRS-50, 
• fuel and lubricants tanks-60, 
• Operational-tactical level UAV-7 (+3), 
• ships / boats-3 units – +1), 
• automotive equipment-454 (+7).  

The data is being updated. Counting is complicated by the high intensity of military operations.

On Friday, May Brent crude futures on London ICE Futures reached 1 138/barrel during the session, but at the end of trading rose by 10% to.130/barrel, and April WTI crude futures on the New York Mercantile Exchange (NYMEX)-by 9.5% to. 126.2/barrel, adding 38% and 37%, respectively, from February 24. The discount on Russian oil continues to grow, and on Friday Shell acquired it at a discount of 2 26/barrel, but after international condemnation, it promised to direct the excess profit to the restoration of Ukraine.

The last time the price of Brent crude oil exceeded березні 130/barrel was in March 2012, and it reached a record $143/barrel in 2008.

Russian oil supplies to the world market have almost stopped, even without an official ban or sanctions, as buyers refuse to buy Russian oil, and tanker companies do not want to ship it, so as not to fall under financial sanctions.

According to JPMorgan estimates, if there is no Russian oil on the market, oil prices may reach 1 185/barrel. Goldman believes that in the event of interruptions in the supply of Russian oil, oil prices may rise to 3 150/barrel within 3 months.

To increase oil supplies to the world market, the Biden administration is actively negotiating with Iran, and may ease the ban on Iranian oil exports. In addition, meetings are planned with Arab leaders to increase supplies from OPEC+members.

Against the background of rising oil prices, prices for cereals and oilseeds are rising.

On Friday, May futures rose on the Chicago Stock Exchange:

• for wheat - by 7% to 1 12.9 / bushel or 4 475 / ton,
• for corn-by 3.2% to 7 7.79/bushel or 3 306.7/ton, an increase of 12.9% since February 24 and almost approaching the record level of 2013.