Benchmark oil prices continue to rise Wednesday morning after climbing the previous day, driven by reduced concerns about the global economy and growing worries about fuel shortages on the world market.
The price of November futures for Brent on the London-based ICE Futures exchange at 8:16 a.m. Wednesday is $94.91 per barrel, up $0.95 (1.01%) from the previous session’s close. On Tuesday, these contracts rose by $0.67 (0.7%) to $93.96 per barrel.
Quotes of futures for WTI crude oil for November at the electronic trading of the New York Mercantile Exchange (NYMEX) by the specified time rose by $0.96 (1.06%) and amounted to $ 91.35 per barrel. At the end of the last session they rose by $0.71 (0.8%) – to $90.39 per barrel.
Oil is supported by fears that demand will greatly exceed supply, which intensified after the decisions of Saudi Arabia and Russia to extend voluntary production cuts.
“It seems nothing can derail the oil price rally,” said Edward Moya, senior market analyst at OANDA. – Energy traders are quick to recognize the bullish trend, and it will take much more than a strong dollar and weakening demand to break it.”
Market participants are also evaluating signals about changes in U.S. energy inventories.
According to the American Petroleum Institute (API), last week oil reserves in the States increased by 1.59 million barrels. A week earlier, the reserves fell by 5.25 million barrels.
The official data from the Energy Department will be released at 5:30 p.m. Q1 on Wednesday. Analysts surveyed by S&P Global Commodity Insights forecast that the data will indicate a reduction in oil reserves by 320 thousand barrels, gasoline – by 120 thousand barrels, distillates – by 1.3 million barrels.
Due to the drought observed in Ukraine, autumn winter crops have already been partially lost, at the same time, the prolonged lack of precipitation intensifies the pace of the harvesting campaign and contributes to high quality corn grain, according to the analytical cooperative “Pusk”, established within the framework of the All-Ukrainian Agrarian Rada (VAR).
“The forecast model does not show precipitation in Ukraine in the near future. Therefore, the moisture content of corn grain remains low, averaging 17-20%, while in the past season it was 30-35%. This will help reduce the cost of corn grain, as one drying cycle is enough for the harvested crop,” analysts said.
They noted that in early October, agrarians will intensify the collection of corn, because they will complete the harvesting of sunflower and soybeans.
At the same time, it is noted that the shelling of ports in Odessa and Danube region hinders the export of corn. At the same time, this product is in demand from China exclusively on CIF basis with delivery in October-December at a conditional price of $250/ton.
“On all bases weekly price tags for Ukrainian corn lose 3-5$/ton. The supply of its grain is high, but logistical problems are and will continue to be a factor in the fall of prices, especially in the deployment of the harvesting campaign”, – explained in the CAP and added that in a week we can expect the following level of prices for 1 ton of corn: SRT river ports – 140-150$, DAP border – 145-155$.
Forecast of changes in discount rate of National bank of Ukraine, %
Source: Open4Business.com.ua and experts.news
In August 2023, Guardian Insurance Company (Kyiv) collected UAH 109.5 million in payments, which is 22.94% more than in the same period a year earlier, according to the insurer’s website.
It is also reported that in August, the company increased insurance payments by 32.13% compared to the same period a year earlier – up to UAH 35.05 million.
Guardian Insurance Company is a member of the Presidium of the League of Insurance Organizations of Ukraine. In January 2020, it became a full member of the MTIBU and has the right to sell Green Card policies.
In October 2020, by the decision of the general meeting of members of the Nuclear Insurance Pool of Ukraine, Guardian Insurance Company became a member of the pool.
Norway will allocate an additional NOK 1 billion ($92 million) to provide Ukrainians with access to protection and vital assistance, according to a statement on the government’s website.
“The civilian population of Ukraine has suffered greatly as a result of the brutal war waged by Russia. The efforts of the Ukrainian people to combat the daily attacks on civilians and civilian infrastructure have been heroic. They need our help to survive another winter of war,” said Foreign Minister Anneken Huitfeldt.
She was speaking at the opening of the third Senior Humanitarian Officials Meeting on Ukraine, which is being held in Oslo jointly by Norway and the EU.
The meeting is focused on the difficult humanitarian situation caused by the war in Ukraine, as well as on the rapid provision of necessary assistance to the civilian population. In addition, the transition from short-term humanitarian aid to long-term recovery efforts will be discussed.
It is noted that the 150 participants of the meeting include representatives of the Ukrainian authorities, the UN, the International Red Cross and Red Crescent Movement, humanitarian organizations and donor countries.
According to UN estimates, more than 17 million people in Ukraine need humanitarian assistance. Around 5 million people are internally displaced, and more than 6.2 million people have fled the country to seek refuge in other countries because of Russia’s attack.
Humanitarian funding is channelled through the UN, including the Ukrainian Humanitarian Fund and the International Red Cross and Red Crescent Movement.
The Ministry of Agrarian Policy and Food estimates the harvest of the 2023 season at 79 million tons, which is at least 7 million tons more than last season, Minister of Agrarian Policy Mykola Solsky said on the air of the United News marathon.
“In May, at the beginning of the sowing season, we thought we would have about 63-64 million tons. Then we raised the forecast to 67-68 million, then more – 70 million. Last year we had a result of 7 million tons, then 75 million tons. In the last two weeks, we have been talking about the harvest, which will probably be around 79 million, which is at least 7 million more than last year,” he said.
Mr. Solsky reminded that farmers are no longer concerned about yields and gross output, but rather about the price at which they can sell their crops.
“It is very important that we have the opportunity to sell at a higher price. It is important how much we can export. After all, we need to be able to export 5 million tons of grain every month,” the minister explained, adding that logistics are very expensive and grain is not cheap.
Mr. Solsky emphasized that the demand for logistics is now significantly higher than the supply, and pointed out the importance of balancing these indicators.
“We are trying to do our best to bring this balance closer to what is needed (by the farmer – IF-U), so that the price (of grain – IF-U) will rise,” the minister emphasized.
