FirstFT: Crude oil market rebounds due to tight diesel and gasoline supplies

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Oil prices rise again It was the most sustained gain since Russia’s invasion of Ukraine as fuel supplies tightened, adding to pressure on markets already disrupted by the coronavirus pandemic.

Russia’s disruption to the flow of oil and related products has rippled through energy markets as refiners race to pump out petroleum products to meet the demands of the global economy emerging from the Covid-19 shock.

The supply-demand imbalance pushed global benchmark Brent crude prices up more than 10 percent in May, the biggest gain since January. Brent crude for July delivery hit a high of $123 yesterday, from less than $80 at the start of the year.

The UK and EU have also reached a coordination Ban on insuring ships carrying Russian oil, which would exclude Moscow from the important Lloyd’s of London insurance market and put additional pressure on commodities.But the EU said Willing to consider tariffs Rosneft will be sanctioned if member states refuse to enforce the embargo announced on Monday.

Refiners will face tougher competition to secure supplies under Brussels’ sanctions on Russian oil. Here’s how the ban will affect global markets.

Brent crude (USD per barrel) line chart shows global oil benchmark topping $120 amid fuel shortage

Thank you for reading FirstFT Europe/Africa.Here’s the rest of the news today – Jennifer

1. Eurozone inflation hits 8.1% Eurozone inflation soars to A record 8.1% In the year to May, that added to pressure on the European Central Bank to accelerate its exit from ultra-easy monetary policy when it meets next week in Amsterdam. Prices jumped more than expected by 7.7% from 7.4% in April.

Year-on-year change in consumer prices showing new highs in Eurozone inflation

2. Citi may retain Russian banking license U.S. bank with largest business in Russia may be Retain banking license and some business In the country, Chief Executive Jane Fraser said it tried to sell its local consumer and commercial weapons even after the war with Ukraine.

3. Shanghai unblocks China’s financial capital is set at Most Notable Easing of Covid-19 Restrictions It has been sealed since authorities said more than two months ago that public transport would resume and shops reopened today.our Interactive function exploration The broad impact of Beijing’s zero-virus strategy on China’s economy and society.

4. German police raid DWS and Deutsche Bank over green laundering claims about 50 police officers Arrive at the DWS premises and the twin towers of Deutsche Bank The meeting was held in Frankfurt yesterday morning until lunchtime, according to people familiar with the matter. Neither company was given advance notice of the raid.Hours later, DWS announced change its CEO Ashoka Wollman.

5. Elliott sells AC Milan to RedBird for €1.2bn Elliott Management has agreed Italian football club for sale The deal ends the company’s four-year foray into the sports business and includes a Serie A season title, according to people close to the club.

the day ahead

Denmark holds EU security referendum the Danes vote to axe The country’s 30-year-old opted to leave the European Union’s security and defense policies, increase military spending and get rid of Russian gas.

Economic data S&P post Manufacturing PMIs for the Eurozone, France, Germany, Italy, the UK and the US. The EU also has unemployment data for April, while Germany has retail trade data. ECB Chief Economist Philip Lane speaks at the CEPR Paris Symposium hosted by Sciences Po.

Federal Reserve Beige Book The Fed released its latest report on the state of the economy, a day after the meeting between Fed Chairman Jay Powell and President Joe Biden Highlight high price risk before the midterm elections.

US lifts UK metal tariffs Washington will Repeal Trump-era tariffs 25% of steel and aluminum exports are replaced with quotas. In return, London will suspend additional taxes on U.S. products such as bourbon and Levis jeans.

Alphabet Annual Meeting Google’s parent company hosts an annual meeting where shareholders will vote on 10 proposals addressing pay equity, sustainability and human rights.

what are we still reading

Twelve propositions about the state of the world How do we understand the world?The crystallization of time spent in Davos last week Martin Wolf’s answer Covers major economic, geopolitical, social and technological issues facing society in the form of 12 forecasts.

Martin Wolf on the state of the world

Martin Wolf: “At a time of division and disillusionment, we in the West must deal with profound changes and deadly conflicts” © James Ferguson

Can Africa develop without fossil fuels? Not every country on the African continent has renewable energy reserves.African leaders are asking poor countries if they can achieve high living standards as developed nations demand emissions cuts No need for extensive use of fossil fuels.

Ukraine war sparks potash boom For the better part of a decade, the potash fertilizer market has struggled with excess capacity and low prices.But sanctions have Restrict fertilizer supply From Russia and Belarus, which account for nearly 40 percent of global inventories, have sparked warnings of a global food crisis.

NSO’s cash woes Faced with such a severe cash crunch, Israel’s maker of cyber weapons Pegasus could miss out on payrolls, Shalev Hulio has a startling suggestion. The foul-mouthed CEO asks: Why not start selling to risky customers all over again? To his audience, the idea was shocking, but that’s not all. Read the inside story here.

Sifting through the wreckage of the stock market How should investors navigate the wreckage of the stock market? The answer is simple and complex, writes Maike Currie: one stock at a time. Some people think, A true story playing out in the market Not a relationship between value and growth, but a relationship between cyclicality and defensiveness.

  • Ask an expert: should i turn my money into cash Avoid market volatility, asked a FT reader. Paul Surguy, managing director and head of investment management at Kingswood, responded.

Benchmark line chart shows 'old economy' stocks outperforming high-growth peers


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