Your must-know fuel facts this week
Fuel Market Talk
Oil prices surged on Tuesday (March 1st) as concerns over potential supply disruptions after Russia’s invasion of Ukraine and related sanctions outweighed the optimism for talks of a coordinated global crude stocks release.
Brent crude hits a record
Brent crude futures were up to $109.71 a barrel, a seven-year high, after the invasion began last week.
At AF, we believe the fragile situation in Ukraine and financial and energy sanctions against Russia will keep the energy crisis stoked and oil well above $100 per barrel in the near-term and even higher if the conflict escalates further.
Russian oil
Russia exports some 4 million to 5 million barrels per day of crude oil, and 2 million to 3 million barrels per day of refined products.
Major oil and gas companies, including BP and Shell, have announced plans to exit Russian operations and joint ventures. Buyers of Russian oil are facing difficulty over payments and vessel availability due to sanctions.
Signs to alleviate supply concerns
The United States and allies are in discussions about a coordinated release of crude stocks to mitigate supply disruption. It is reported that release could reach 60 million to 70 million barrels.
The Organization of the Petroleum Exporting Countries (OPEC) and other producers – including Russia – are meeting this week to discuss a planned output increase for April.
Here to help
Your AF Fuels team is working closely with suppliers to monitor the situation. To plan your requirements call 01603 881 911 or email fuel@af.farm.
