Page 117 - RusRPTNov23

This means that the world should back the growth of consumption with respective investment, Russian Deputy PM said, noting that OPEC+ nations, which have reduced output, currently have free capacities of 4-5mn barrels per day. "Nevertheless, speaking about global demand growth, we can experience the lack of capacities as a result of underinvestment," he said.
How has the war in Israel affected world markets? Oil prices rose 5% after the attack on Israel by the Palestinian group Hamas threatened to inflame tensions in the Middle East, the source of about a third of the world's oil. According to Bloomberg,WTI oil traded around $86 per barrel (+4%) as the military risk premium returned to the markets, and Brent traded at $87 (+4%). Although recent developments in Israel do not pose an immediate threat to oil flow, Tehran's response could jeopardize the passage of ships through the Strait of Hormuz, a vital oil supply channel. In addition, as Reuters writes, the growing geopolitical risk may lead to the purchase of assets such as gold and the dollar and potentially increase demand for US Treasury bonds. Gold price has already risen by 1.2%. As a result of the conflict in Middle Eastern markets, stocks also began to fall. The region's main stock indices lost 6.4% on Sunday, marking the biggest drop in Israel's TA-35 stock index in three years.
The Russian Energy Ministry expects an increase in oil refining volumes in 2023, Minister Nikolay Shulginov told reporters. "We keep [the oil refining growth forecast]. The refining level has not dropped significantly. There is an increase year to date," the minister said. The Russian government banned gasoline and diesel fuel exports from September 1. Later, the Cabinet approved a series of new systemic measures to keep stability in the fuel market on October 6. Russia also lifted restrictions of diesel fuel pipeline exports to seaports for producers delivering at least 50% of produced diesel fuel to the domestic market.
US wants to buy oil for strategic reserves at $79 a barrel or lower.
President Joe Biden's administration hopes to purchase 6mn barrels of crude oil for the Strategic Petroleum Reserve in December and January, continuing a plan to replenish the emergency stockpile, the US Department of Energy said Thursday. The department hopes to sign purchase contracts for the oil at $79 a barrel or less. That's up from the previously stated preferred range of about $70 a barrel, yet still looks too optimistic given that the current benchmark US crude futures price is over $90 a barrel. The US oil reserves are now at a 40-year low, and oil prices are only rising.
117 RUSSIA Country Report November 2023 www.intellinews.com