MNI Commodity Weekly - Sanctions Crack Down Upend Russia Flows

Executive summary:

• Sanctions Crack Down Could Upend Established Russian Flows: Flows of Russian crude reached a new steady state following an EU embargo and the G7 price cap, but a crackdown on sanctions could upend the status quo.
• Oil Markets: Crude is trading within a $2.5/bbl range with no clear direction as markets assess the future market balance amid demand concerns in US and China and after OPEC+ members extended voluntary production cuts. Diesel and gasoline margins soften with signs of returning US refineries from heavy outages in February.
• *See summary of market analyst coverage. (Starts pg.5)
• Gas Markets: European natural gas prices have reversed the ongoing downward trend to trade at the highest since early February, despite bearish short-term fundamentals. US natgas prices continued the recent gradual increase supported by lower production. Asian LNG prices also rebounded amid more buying interest and a likely increase in coal-to-gas switching.

MNI Commodity Weekly - Sanctions Crack Down Upend Russia Flows.pdf