Paul it seems that the markets have been You know pushed up in recent sessions by Talk and and a promise of an oil embargo On russian oil from the eu but now There's been a little bit of softening On that as we were hearing from maria Around in particular the transportation Of russian oil Talk to us about what it is that's Weighing on on the oil price is it that Or is it chinese growth fears Hi anna i think this week it's very much What's going on with the sanctions or The the european european union's Efforts to sanction Russia and that softening as you as you Talked about yes chinese demand or um The covert lockdowns and how that's Hitting demand in china is certainly Weighing on the market but that's been a Theme for for the last few weeks and There's nothing really new in the past Few trading sessions but this this uh This sort of these sort of complications That we're seeing among eu members about Just what to do and how Hard to go against russia um is new and That is what has led to uh you know Brent and wti dropping by about six Percent this week to slightly below 105 Dollars a barrel and we're still at very High levels of course um oil is still Significantly above 100 a barrel but i Think this week's um
News gives signals to traders in oil Markets that perhaps the eu is not going Uh to go all out on uh banning russian Crude exports and then at least european Companies will still be allowed to Transport russian oil even if they can't Take it Into the eu Paul just interesting enough you kind of Say this is more about the softening of Potential sanctions in the eu and russia But it seems to me like we've seen more Downside from the softening than we saw Upside from the original threat that They were gonna you know put in impose That ban does that suggest that overall The backdrop for oil is for softer Prices if we're getting a much bigger Reaction on the downside than we are on The upside It's possible that there's um more sort Of There's more sort of There's more of a downside trajectory Coming for oil in the in the short term Um if you primarily because of what's Happening in china and As the eu sort of argues and can't find Unity over what to do on russian Sanctions If you look in the longer term And you look at what's happening in the Physical markets and pure supply and Demand it's still an extremely tight
Market and the global markets are Probably under supplied at the moment And most analysts uh are are saying that It will probably become even tighter Still as china starts to ease its Starts to ease its lockdowns
