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U.S. crude oil futures eked out a 0.01% acquire for the week, sufficient to attain an eleventh enhance up to now 13 weeks, with market uncertainty working excessive as traders attempt to resolve if crude is overbought or if triple-digit pricing may return for the primary time since July final yr.
Entrance-month Nymex crude (CL1:COM) for November supply ended the week at $90.03/bbl, however regardless of WTI’s tiny acquire, Brent crude completed with a small decline after posting three straight weeks of positive factors, shedding 0.7% for the week to settle at $93.27/bbl.
ETFs: (NYSEARCA:USO), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (NRGU), (USOI)
Even in every week that noticed the Federal Reserve warn of additional price hikes, power markets additionally had been targeted on Russia’s new ban on diesel and gasoline exports.
Russia ships ~1M bbl/day of diesel, making it one of many world’s greatest seaborne exporters of diesel, and the ban seemingly will elevate already excessive diesel costs, however the severity of the influence ought to rely upon how lengthy the export ban is in place.
The Kremlin mentioned the ban was “short-term” and designed to deal with rising power costs in Russia, however the timing raises suspicions in western capitals that Vladimir Putin is once more leveraging Russia’s energy over power markets.
Whereas Russia might have some home provide points, Putin “nonetheless needs to trigger chaos [and] break the west’s resolve to help Ukraine,” RBC Capital’s Helima Croft mentioned. “His objective appears to be to make it to subsequent yr and see the influence on the U.S. presidential election.”
Analysts at Citigroup and J.P. Morgan Chase anticipate the ban will final weeks, not months, as as soon as the heaviest demand from agriculture passes, permitting Russia to reap what ought to be a bumper crop, pressures to maintain diesel at residence ought to abate.
Citi mentioned home Russian diesel demand for the harvest is ready to peak within the subsequent 3-5 weeks, predicting the ban will final solely barely longer than that.
The diesel export ban can be felt, however Russia is a a lot smaller exporter of gasoline, exporting solely 90K bbl/day in August, in keeping with Kpler.
Power shares, as represented by the Power Choose Sector SPDR ETF (NYSEARCA:XLE), completed -2.9% for the week, in the midst of the S&P sector standings.
High 5 gainers in power and pure assets throughout the previous 5 days: (LZM) +39.8%, (ATLX) +13.1%, (WAVE) +11.3%, (LTBR) +11%, (GPP) +10.9%.
High 5 decliners in power and pure assets throughout the previous 5 days: (AMTX) -15.8%, (LAC) -15.2%, (PLL) -14.8%, (USAU) -14.8%, (NRGV) -14.2%.
Supply: Barchart.com
