WEEKLY ENERGY RECAP: Russian crude disruption fails to lift oil market

It was surprising that the supply outage of Russian Urals crude oil flows to Germany and Poland didn’t cause an upward momentum in oil prices, says Faisal Mrza. (AFP)
Updated 27 April 2019

WEEKLY ENERGY RECAP: Russian crude disruption fails to lift oil market

RIYADH: Last week started with a major bullish sentiment in the oil market, after the US said it was halting sanctions waivers on Iranian crude exports. This drove Brent prices to a five-month high, touching $75 per barrel, although they dropped by the end of the week to $72.15.
Though oil prices didn’t change much on a weekly closing basis, a steep price fluctuation took place during the week.
Prices fell sharply at the end of the week on speculation that some Iran crude oil exports may be able to find customers regardless of the end to sanctions waivers. Also, global refining margins fell across the board last week, mostly driven by weak middle distillates margins (diesel and jet fuel), though gasoline margins have remained relatively firm ahead of the high demand season in summer.
Most of the supply distributions have been attributed lately to geopolitical factors; however, some other technical factors have emerged after Europe refineries stopped processing Urals crude from Russia after they found contamination in oil delivered via the Druzhba pipeline.
It was surprising that the supply outage of Russian Urals crude oil flows to Germany and Poland didn’t cause an upward momentum in oil prices, especially given that the global market is already short of supplies of similar crude grades.
Urals crude oil is close in quality to the sour crude produced in the Arabian Gulf. It accounts for most of the Russian crude exports in eastern and central Europe, and almost half of Russia’s total crude oil exports globally.
The contamination came at a time when European refiners are already questioning Urals quality, especially the sulfur levels.
Its unclear whether the concerns will affect Russia’s future market share, and hence the global supply and demand balance. Likewise, it is not yet clear how long the issue will last, given that Reuters reported it could have legal effects, as buyers in Europe could open lawsuits against Russian suppliers.

  •  Faisal Mrza is an energy and oil marketing adviser. He was formerly with OPEC and Saudi Aramco. Twitter: @faisalmrza

Emirates launches airbridge between Dubai, Lebanon emergency relief 

Updated 14 August 2020

Emirates launches airbridge between Dubai, Lebanon emergency relief 

  • Customers of Emirates will be able to donate cash or pledge their Skywards Miles to the airline for the aid
  • Emirates SkyCargo will also provide 20 percent reduction on air freight transportation charges for approved shipments

DUBAI: UAE national carrier Emirates SkyCargo plans to ramp up its freighter operations to Lebanon with 50 flights to deliver emergency relief in the wake of the Beirut port blast that killed nearly 200 people.
Customers of Emirates will be able to donate cash or pledge their Skywards Miles to the airline for the aid, state news agency WAM reported.
The Emirates Airline Foundation will coordinate shipments of urgent food, medical supplies with NGO partners to ensure donations directly help those affected on the ground.
Emirates SkyCargo will also provide 20 percent reduction on air freight transportation charges for approved shipments, underscoring its commitment to expedite emergency relief efforts to Beirut.
“Today, the world is banding together to stand in solidarity with Lebanon, providing urgent relief and immediate recovery support to those affected by this tragic disaster,” Chairman and Chief Executive of Emirates Airline & Group, Sheikh Ahmed bin Saeed Al-Maktoum, said. 
“Emirates supports the UAE’s ongoing humanitarian efforts to support Lebanon and is committed to bolster its global emergency response to ensure that it can support organizations which provide urgent care, shelter, food and medical support to the Lebanese people,” he added. 
Emirates said that it had dispatched several charter flights carrying food, clothing and medical supplies donated by various grassroots organizations in the UAE to Lebanon.