Trade deals perk ANS
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Trump shortens sanction deadline for Russia to pursue peace with Ukraine
Steve Sutherlin Petroleum News
Crude oil futures rose slightly July 30 on continued bullishness arising out of President Donald Trump's tightened deadline for Russia to end its war in Ukraine, coupled with threatened tariffs on countries that purchase Russian crude. West Texas Intermediate gained 79 cents to close at $70 per barrel and Brent moved 73 cents higher to close at $73.24.
The Federal Reserve held interest rates steady in a split decision at its July 30 meeting. Fed Chairman Jerome Powell declined to say whether the central bank will cut its interest rate target in September.
Prices surged July 29 on the announcement of the accelerated Russia sanctions. Alaska North Slope crude leapt $2.27 to close at $75.57, WTI vaulted $2.50 to close at $69.27 and Brent vaulted $2.47 to close at $72.51.
Trump said he would begin sanctions on Russia, including secondary tariffs of 100% on trading partners, if Russian President Putin did not move to end the war in Ukraine within 10 to 12 days -- moved up from an earlier 50-day deadline.
Trump imposed a 25% tariff on goods imported from India starting Aug. 1, coupled with an unspecified penalty for buying Russian weapons and oil. He also warned China that it could face expanded tariffs if it continued the practice.
Traders shrugged off a massive build in U.S. inventories announced by the U.S. Energy Information Administration July 30.
U.S. commercial crude oil inventories for the week ended July 25 jumped 7.7 million barrels from the previous week to 426.7 million barrels -- 6% below the five-year average for the time of year, the EIA said in its weekly petroleum report.
Analysts answering a Reuters poll had called for a 1.3 million barrel draw.
Total U.S. motor gasoline inventories decreased by 2.7 million barrels over the week to 228.4 million barrels -- 1% below the five-year average for the season, the EIA said. Distillate fuel inventories increased by 3.6 million barrels to 113.5 million barrels -- 16% below the five-year average for the time of year
Analysts in the Reuters poll expected gasoline stocks to fall by 600,000 barrels and distillate stocks to rise by 300,000 barrels.
ANS leapt $1.79 July 28 to close at $73.31, as WTI jumped $1.55 to close at $66.71 and Brent jumped $1.60 to close at $70.04.
Prices slipped July 25. ANS fell 88 cents to close at $71.51, WTI fell 87 cents to close at $65.16 and Brent fell 74 cents to close at $68.44.
ANS rose 54 cents July 24 to close at $72.39, while WTI rose 78 cents to close at $66.03 and Brent rose 67 cents to close at $69.18.
ANS edged 2 cents higher July 23, closing at $71.85. WTI dropped 96 cents to close at $65.25 and Brent shaved 8 cents to close at $68.51.
ANS jumped $3.73 over the trading week from its close of $71.84 July 22, to close at $75.57 July 29.
On July 29, ANS traded at a $6.36 premium over WTI and at a $3.06 premium over Brent.
Gulf refiners access new crude sources U.S. Gulf Coast refiners are tapping Middle Eastern and South American crude to compensate for supply gaps from Venezuela and Mexico.
Ship tracking data revealed the change, Reuters reported July 25.
The shift might be temporary if the U.S. eases sanctions on Venezuelan crude. The Treasury Department yanked key licenses in March, blocking import of some 175,000 barrels per day of Venezuelan oil -- previously16% of Gulf Coast oil imports.
Imports of Mexican heavy grade Maya have plunged to a record low of 172,000 bpd due to production and quality challenges.
Gulf Coast refiners boosted imports from other South American countries such as Colombia, Brazil and Guyana, Reuters said. Shipments from Colombia have more than doubled to 225,000 bpd, the highest monthly level in three years. Imports from Guyana have risen to 95,000 bpd, while Brazilian imports have surged by 58% to 57,000 bpd.
Imports of Iraqi Qaiyarah, Kuwaiti Eocene and Saudi Arabian Arab Light have climbed to 212,000 bpd, the highest level since January.
The adjustments reflect an ongoing need for heavier crude grades, which are more suitable for Gulf Coast refineries that typically process heavier oil.
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