The European Union does not abandon its attempts to impose an embargo on Russian oil deliveries to Europe. According to Josep Borrell, this measure may be included in the fifth package of sanctions, which is scheduled for discussion on April 11 at the level of EU foreign ministers.
Am I the only one who finds it strange that economic issues are now discussed by foreign ministers?
The embargo “helps” quotations
Well, what do we have today? We have repeatedly stated that the U.S. administration’s decision to release oil reserves has no proper impact on the oil market. It turns out that the additional volumes do not solve the problem of meeting the increased demand.
Josep Borrell dreams of leaving Europe without oil from Russia. Photo: CNBC
Futures for major oil benchmarks are going up again. West Texas WTI and North Sea Brent gained 2.35% and 2.05%, while prices are at $98.55 and $103.2 per barrel, respectively. According to industry experts, the embargo may bring the price tags to new highs. According to various estimates, these may be as high as $150 or $180 per barrel.
Business losses already today
On the background of absolutely non-market behavior of Western colleagues begin to bear losses not only Russian representatives of the sector. The Anglo-Dutch oil and gas giant Shell announced about significant write-offs and losses because of its withdrawal from Russia. Only in the first quarter of this year, the amount could reach $5 billion, according to the latest release of the company.
Already in April Shell will face problems with payments for gas supplies from Russia in March. We would like to remind you that the UK, unlike the same European Union, managed to impose restrictions on work with Gazprombank – the only organization through which it is possible under the new scheme of payments for energy from the Russian Federation.
Tensions have risen in the United States against the backdrop of rising gasoline prices. Representatives of the American oil business are getting tired of blatantly populist criticism and accusations of high prices for motor fuel in the US.
On Fox Business, Dan Eberhart, CEO of Canary, couldn’t stand it any longer and literally berated the U.S. president and Congress for a “sham trial” and “playing to the public” during the hearings, and accused the White House administration of a lack of dialogue between the government and business.
macroeconomic issues, yesterday analysts from Deutsche Bank “pleased” Washington with the fact that they see a recession in the U.S. economy already next year. At the same time, they predict a decline of the stock market by at least 20%.
The question remains open: will there be an embargo at all?
Appointment of discussion does not mean acceptance. It is already clear that economic pressure has a boomerang effect. Russia turned out to be too integrated into the world economy to be excluded from its structure by one meeting only, even as important as Borrel suggests. Recall that Russia supplies 30% of all oil imported by the European Union and 40% of natural gas.