EU Expected to Announce Oil Embargo Today, With a Few Exemptions

LOCAL NEWS

• EU is expected to outline oil sanctions today for a full ban of Russian oil imports by the end of this year. In the past days the EU has shown a willingness to provide concessions to a number of states, such as Hungary & Slovakia, in order to pass the oil embargo – RTRS.
  • Meanwhile, FT reports that China’s independent refiners have been discreetly buying Russian oil at steep discounts with shipping activity rising slightly and showing 12m bbls via 6 supertankers delivered to Asia in the 2 month period. China’s imports were roughly 86k bpd higher last month Y/Y. - FT
• US say it will hold a security council meeting on Ukraine tomorrow (5 May). UK also says it will provide drones to carry equipment to the front lines as part of the £300m military aid package.
• UK’s MoD says Russian troops are amassing near Izium in its attempt to move along the northern axis of the Donbas with the intention to move beyond Izium to capture Kramaforsk & Severodonefsk.
  • Meanwhile, explosions were heard overnight in Lviv and Zelensky confirms that 156 civilians were evacuated from the Azovstal steel plant in Mariupol after intense mediation - Sky
• Defence Analyst says Russia has three military focuses before May 9; including a push West towards Moldova, secure the Western corridor by declaring victory in Mariupol and a push towards the city of Kriviy Rih (Zelensky’s hometown).
  • However, Russia has downplayed the significance of the May 9 victory day -saying troops will remain until the operation is declared over – Sky, bbg

Data:

• 0700BST: April S&P Global Russia Manufacturing PMI exp at 41.5 vs 44.1 prior