‘Grotesque greed’: UN chief Guterres slams oil and gas companies | Oil and Gas News

UN Secretary-Common Antonio Guterres urges governments to tax oil and fuel corporations’ earnings amid the power disaster.

United Nations Secretary-Common Antonio Guterres slammed the “grotesque greed” of oil and fuel corporations and their monetary backers and urged governments globally to “tax these extreme earnings” to assist essentially the most weak folks.

“It’s immoral for oil and fuel corporations to be making file earnings from this power disaster on the backs of the poorest folks and communities, at an enormous value to the local weather,” Guterres advised reporters on Wednesday.

The 2 largest United States oil corporations – Exxon Mobil Corp and Chevron Corp – plus British-based Shell and France’s TotalEnergies mixed earned practically $51bn in the newest quarter, nearly double what the group introduced in for the year-ago interval.

“I urge all governments to tax these extreme earnings, and use the funds to assist essentially the most weak folks by means of these tough occasions,” Guterres stated.

“And I urge folks in all places to ship a transparent message to the fossil gas business and their financiers: that this grotesque greed is punishing the poorest and most weak folks, whereas destroying our solely widespread residence,” he stated.

Politicians and client advocates have criticised the oil corporations for capitalising on a worldwide provide scarcity to fatten earnings and gouge customers. US President Joe Biden stated in June that Exxon and others have been making “more cash than God” at a time when client gas costs surged to data.

Final month, Britain handed a 25 % windfall tax on oil and fuel producers within the North Sea. US lawmakers have mentioned the same thought, although it faces lengthy odds in Congress.

Guterres stated Russia’s battle in Ukraine and the local weather breakdown have been stoking a worldwide meals, power and finance disaster.

“Many growing international locations – drowning in debt, with out entry to finance, and struggling to get well from the COVID-19 pandemic – might go over the brink,” he stated. “We’re already seeing the warning indicators of a wave of financial, social and political upheaval that would go away no nation untouched.”

EU leaders agree to Russian oil ban after compromise with Hungary | Russia-Ukraine war News

EU says deal will successfully lower 90 % of oil imports by year-end slicing off key supply of Moscow’s funding for Ukraine battle.

European Union leaders have agreed in precept to chop 90 % of oil imports from Russia by the top of this yr, slicing off a significant supply of funding for Moscow’s invasion of Ukraine, after reaching a compromise cope with Hungary.

The 27-nation organisation has spent weeks haggling over an entire ban on Russian oil however encountered cussed resistance from Hungarian Prime Minister Viktor Orban who mentioned an embargo would destroy his nation’s financial system.

At a gathering in Brussels on Monday, leaders hatched a compromise deal to exempt deliveries arriving in Europe by the Druzhba pipeline.

“Settlement to ban export of Russian oil to the EU. This instantly covers greater than two thirds of oil imports from Russia, slicing an enormous supply of financing for its battle machine,” European Council chief Charles Michel mentioned in a tweet on the finish of the primary day of a two-day leaders’ summit.

“Most strain on Russia to finish the battle,” Michel added.

The pinnacle of the EU’s government, Ursula von der Leyen, mentioned the transfer “will successfully lower round 90 % of oil imports from Russia to the EU by the top of the yr” when Germany and Poland have promised to finish deliveries by way of pipeline.

Two-thirds of the Russian oil imported into the EU is delivered by tanker and one third by the Druzhba pipeline. The embargo would attain 90 % after Poland and Germany, that are additionally related to the pipeline, cease taking supply of Russian oil by the top of the yr.

The remaining 10 % will likely be briefly exempt from sanctions in order that Hungary, Slovakia and the Czech Republic, that are all related to the southern leg of the pipeline, proceed to have entry to gas they can not simply change.

“Russia has chosen to proceed its battle in Ukraine. Tonight, as Europeans, united and in solidarity with the Ukrainian folks, we’re taking new decisive sanctions,” French President Emmanuel Macron tweeted.

The compromise means different measures also can take impact, together with disconnecting Russia’s greatest financial institution Sberbank from the worldwide SWIFT system, banning three state broadcasters, and blacklisting people blamed for battle crimes.

Zelenskyy’s criticism of the EU

In a video handle to the summit earlier, Ukrainian President Volodymyr Zelenskyy chastised EU leaders for being too comfortable on Moscow.

“Why are you depending on Russia, on their strain, and never vice-versa? Russia have to be depending on you. Why can Russia nonetheless earn nearly a billion euros a day by promoting vitality?” Zelenskyy mentioned.

The EU has rolled out 5 rounds of sanctions since Russia invaded Ukraine in February, demonstrating uncharacteristic pace and unity given the complexity of the measures.

However the haggling over an oil import ban uncovered a battle to widen sanctions because the financial threat for Europe grows as a result of so many international locations depend upon Russia for his or her vitality provides.

Dutch Prime Minister Mark Rutte mentioned as he left the Brussels talks that he had been shocked by the flip of occasions.

“Initially of the night I wasn’t in any respect hopeful, however at 11pm or so, it was finished,” he mentioned, including that excellent technical particulars shouldn’t be tough to resolve.

The summit additionally introduced political backing for a package deal of EU loans value 9 billion euros ($9.7 billion), with a small part of grants to cowl a part of the curiosity, for Ukraine to maintain its authorities going and pay wages for about two months.

Leaders additionally backed the creation of a global fund to rebuild Ukraine after the battle, with particulars to be determined later.

The summit continues on Tuesday.

Oil extends four weeks of gains amid tight supply | Oil and Gas News

The rise in power prices has contributed to rampant inflation, stoking investor concern progress will gradual.

By Bloomberg

Oil prolonged 4 weeks of positive aspects amid tight gas provides and a weaker greenback, although elevated costs are fanning considerations that the world financial system could also be heading for a recession.

West Texas Intermediate futures topped $111 a barrel whereas gasoline and diesel costs have rallied to data forward of the beginning of the US driving season in a few week. The immediate unfold for Brent crude jumped to a seven-week excessive, with crude provides constricted by the boycott of Russian shipments, and product markets strained as refining capability fails to maintain up with rebounding demand.

The rise in power prices has contributed to rampant inflation, prompting central banks to lift charges and stoking investor concern progress will gradual. The Biden administration is contemplating tapping a little-used emergency diesel gas reserve to mitigate the provision crunch amid Russia’s invasion of Ukraine, in response to a White Home official.

Global benchmark Brent climbs as a gauge of US currency eases

The top of the Worldwide Power Company and India’s oil minister, talking on the World Financial Discussion board in Davos, issued warnings on the chance of excessive costs.

“We might even see costs even going greater, being far more risky and turning into a significant threat for recession for the worldwide financial system,” IEA Govt Director Fatih Birol stated in an interview with Bloomberg TV from Davos.

His sentiments had been echoed by Indian oil and fuel minister, Hardeep Singh Puri, who stated that a number of of his nation’s neighbors are in “extreme dire straits” due to rallying costs. “Let’s make no mistake: oil at $110 a barrel constitutes a problem for the complete world.”

Oil has surged this yr on rising demand and the complicated world fallout from Russia’s invasion. Cash managers have additionally boosted bullish crude bets.

In remarks reported on the weekend, Saudi Arabia signaled it would proceed to help Russia’s function within the OPEC+ group of producers, undermining US-led efforts to isolate Moscow for its invasion of Ukraine, the Monetary Occasions stated. The dominion hoped to work out an settlement with OPEC+ which incorporates Russia, Power Minister Prince Abdulaziz bin Salman advised the newspaper.

Weaker Greenback

An added carry for crude got here from a weakening greenback, which makes the commodity cheaper for holders of different currencies. The dollar was decrease on Monday following a drop of 1.4% final week, probably the most since November 2020.

On the similar time, China has imposed a collection of painful lockdowns to quell Covid-19 outbreaks, hurting Asia’s largest financial system. In Shanghai, officers have laid out the standards to categorize elements of the business hub as low-risk for Covid-19 as they appear to finish a two-month lockdown, with no new circumstances exterior quarantine being reported. Beijing, nonetheless, reported a file variety of circumstances, reviving concern that the capital could face a lockdown.

Costs:

  • WTI for July supply rose 1% to $111.12 a barrel on the New York Mercantile Trade at 1:37 p.m. in London.
  • Brent for July settlement added 0.8% to $113.48 a barrel on the ICE Futures Europe trade.

Oil markets stay in backwardation, a bullish sample that’s marked by near-term costs buying and selling above longer-dated ones. The distinction between WTI’s two nearest December contracts, for this yr and in 2023, was close to $13 a barrel, up from about $11 a barrel a month in the past.