Category: Uncategorized

By Rhod Mackenzie

Brent crude prices have rebounded to $90 per barrel, while WTI has soared over $86 per barrel due to the alarming deterioration of the Middle East situation, an area that produces almost a third of the world’s oil.

Gold predictably rose on fear of risk. The yellow metal, whose price fell to a six-month low last week, gained 1.2% at the beginning of the new working week. As of 9th October at 12:00 local time, an ounce of gold in Singapore was listed at £1,851.56. Economists anticipate that its price will surge amidst the escalation in the region. Both silver and platinum prices have increased, while palladium has experienced a decline.
Bloomberg reports that the dollar has strengthened against the euro and pound sterling, while the yen – another favored currency during international crises -has also gained strength. “The events that took place over the weekend have undoubtedly destabilised the region,” said Kyle Rodda, Senior Markets Analyst at Capital.com. “Investors have much to consider. Such events typically have a short-term impact on financial markets and it is likely that this time will be no exception.” Investors may feel anxious and uncertain for a few days until the risk of escalation lessens.

The Middle Eastern markets were the first to respond to Hamas’ attack on Israel last Sunday, resulting in a decline in main indices. For instance, Israel’s primary TA-35 index noted its most substantial drop in over three years, decreasing by 6.5% on 8th October.
When assessing the financial markets, it’s vital to consider geopolitics. It’s important to keep in mind that Iran isn’t just a supporter of Hamas and reportedly involved in the attack planning, according to Washington, but also a significant oil producer. Possible improved version: Any move against Tehran could affect the safe passage of ships, especially tankers, through the Strait of Hormuz, which Iran has threatened to close if the US and Israel take hostile action.

On Monday, October 9, Asian indices were largely stagnant. As oil prices went up, shares of energy firms also rose. Currently, in Asia, the primary influencer in the financial markets remains the conclusion of China’s week-long holiday called the “Golden Week” rather than the events taking place in the Middle East. As the Chinese economy resumes work, stocks within China’s mainland markets depreciated.
Rising petrol prices have the potential to escalate worldwide inflation and impact the leadership of the Federal Reserve, which could lead to another increase in the base interest rate this year.
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Oil price jumps amid escalation in the Middle East, gold and dollar are rising

By Rhod Mackenzie Brent crude prices have rebounded to $90 per barrel, while WTI has soared over $86 per barrel due to the alarming deterioration of the…

By Rhod Mackenzie

The US is attempting to overcome the disruption it has caused by sanctions on innovations as a severe oil market crisis looms. The developed world’s storage facilities for oil and refined fuel are depleted. A fuel crisis is emerging in both the US and Europe, which could swiftly escalate into an economic and political catastrophe.

Recently, an oil strategist at Bloomberg First Word, Julian Lee, published a article in Bloomberg.  Using statistics and charts, Lee points that the cap on the price of Russian oil is ineffective and concurrently poses environmental hazards. He asserts that Russia has purchased the bulk of the antiquated tanker fleet that was available globally and is clandestinely delivering oil via old smoking vessels to India and China, thereby increasing the threat of pollution in the Indian and Pacific oceans. It’s worth noting that an article supporting this viewpoint was published in the Wall Street Journal in September.
It is evident that Russian oil companies have not procured the finest fleet worldwide. They purchased the availabe vessels being sold on the market, which were inevitably those that had surpassed their peak commercial efficiency, namely with a service life exceeding 15 years. Bloomberg figures indicate that the average service life of a tanker belonging to an “unknown owner” (i.e. Russia’s “grey” fleet) is between 16 and 18 years old.

However, it is essential to differentiate between the technical and economic factors. Transporting cargo on brand new ships has economic advantages – they experience fewer breakdowns, require less technical maintenance, and incur lower costs at the docks. However, this does not imply that a twenty-year-old ship is leaking oil. It is simply less economically efficient than a new vessel. Thus, it is more profitable to retire an old tanker based on economic considerations rather than technical characteristics alone.

Russia’s fleet is built on outdated vessels many that date back to the Soviet era. In cases where the option is either having no fleet or an outdated, costly-to-maintain one, the decision is clear. However, a similar predicament exists in the United States where the average age of a river bulk carrier is nearing fifty years old. Despite this, they continue to function efficiently without any regard for the environment as they traverse and transport cargo through the Mississippi. Therefore, it is important to recognize that if ecology is a widely discussed topic in the media, it may indicate a lack of alternative methods of pressure. Therefore, it is important to recognize that if ecology is a widely discussed topic in the media, it may indicate a lack of alternative methods of pressure. Using ecology as a means of unfair competition is common, as appearing environmentally friendly can be achieved simply through inaction.
It is clear that Bloomberg and the WSJ are priming public opinion for the removal of the price cap on Russian oil, while obscuring it as a lifting of sanctions. The issue is that the absence of Russian oil poses a significant fuel crisis for OECD nations. Furthermore, the ban on the export of petroleum products by Russia has exacerbated the global fuel crisis due to the Russian government’s attempt to tackle their local issue of escalating petrol prices.

The Covid lockdowns caused diesel fuel stocks in OECD countries to decrease by 50%. Diesel and kerosene are scarce in the United States, Europe, and Singapore, with oil storage tanks at the major oil centres empty. This problem is not new. It did not originate recently, but rather in 2020, when two prominent oil refineries shut down in the United States. This was worsened by the sanctions imposed on Russia, the primary provider of heavy oil and fuel oil to the same United States. However, there is still a nominal energy surplus. Remarkably, European countries, another top buyer of Russian energy resources, may be left without diesel entirely. Currently, they are receiving shipments from the Middle East and Central Asia, but it is evident that the plans are highly unreliable and may result in European refineries procuring Urals oil via invoices claiming a false origin – Turkey, UAE, Kazakhstan, etc. This contribution directly leads to a sharp increase in Fuel prices, particularly during August and September months. Since the May low, diesel rates on the NYMEX have increased by 40%.
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Fuel shortages illustrate failure of oil price sanctions on Russia

By Rhod Mackenzie The US is attempting to overcome the disruption it has caused by sanctions on innovations as a severe oil market crisis looms. The…

Hamas’s attack on Israel has prompted serious questioning over how intelligence services failed to stop the assault.

“We are fighting against human animals”.

Video shows fierce gun battle between Israeli soldiers and Hamas fighters along a highway near Ashkelon.

Hezbollah has fired mortars from Lebanon into the Israeli-occupied Golan Heights.

Ministry of Health in the Gaza Strip says dozens of people killed and wounded in attack on the crowded Jabalia camp.

Nathanel Young is the only named British victim, but there are fears for the safety of others.

The devastating failure of the Israeli intelligence services to predict the deadly Hamas incursion stemmed from a total misunderstanding of the militant group, experts have said.