• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 7 days What fool thought this was a good idea...
  • 10 days They pay YOU to TAKE Natural Gas
  • 10 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 5 days A question...
  • 16 days The United States produced more crude oil than any nation, at any time.
What’s Really Wrong with Thames Water?

What’s Really Wrong with Thames Water?

Following the Thames Water debacle,…

Algeria: Western Price Caps On Russian Crude Could Lead To Supply Disruption

Algerian Energy Minister Mohamed Arkab also warned that Western price caps on Russian crude oil could lead to uncertainty and supply disruption. 

While Arkab suggested that the OPEC+ decision to cut output by 2 million barrels per day from November 2022 until the end of this year brought stability to oil markets, he warned that unilateral measures such as price caps were distortions that could upset OPEC+ efforts to balance oil markets, Reuters reported.

Arkab’s comments followed comments to Energy Intelligence by Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, that OPEC+ plans to maintain its output cut agreement as intended through the end of this year.  The International Energy Agency’s (IEA) latest monthly oil market report shows Russia’s estimated oil export revenues in February fell by $2.7 billion to $11.6 billion from January, suggesting that sanctions and price caps are starting to take effect.  

The energy minister of OPEC-member Algeria has stated that he is “extremely attentive” to the impact on oil markets of bank failures in the U.S. and Europe, Reuters reported.

Bank failures on two continents have led oil prices to plunge nearly 7% as of 12:28 p.m. EST on Wednesday, with financial markets on full alert over fears the contagion could spread to broader markets.  WTI was down 6.7% at the time of writing, while Brent crude was down 6.52%. 

The sharp losses for oil are extending following a sell-off of Credit Suisse, which has lost nearly 25% of share value on Wednesday. The share price plunge was sparked after Saudi National Bank, Credit Suisse’s largest backer, said it would not lend any more to the bank due to regulatory constraints. The lender’s note followed Credit Suisse’s annual report, which noted “material weaknesses” in financial reporting controls and customer outflows. 

Earlier in the week, two regional bank failures, Silicon Valley Bank (SVB) and Signature Bank sent oil prices lower and prompted fears of contagion. 

By Charles Kennedy for Oilprice.com


More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News