Oil slips as dollar firms

Oil prices were lower, although the decline was limited due to worries about Russia‘s exports to Poland through the major pipeline. Benchmark Brent crude futures fell 25 cents, or 0.32%, to $82.92 a barrel, while US WTI decreased 19 cents, or 0.23%, to $76.14. At the close of the day, both indices were over 90 cents lower versus the previous day.

Meanwhile, the dollar was near its seven–week peak, caused by solid US economic statistics, which prompted conjecture that the Federal Reserve may not have to maintain low interest rates for a prolonged period. During January, the United States Personal Consumption Expenditure (PCE) price gauge soared by 0.62%, a substantial increase from the 0.21% ascribed in December.

The Russian Pipeline Operator Transneft has resumed shipments, provided they have paperwork for the second half of February. At the beginning of this month, Russia reported that oil exports from its western ports dropped by 26% in March compared to February, surpassing its original estimate of 5.3%. However, most analysts believe the European Union‘s ban on importing Russian oil and global pricing pressures have only a minimal effect on global supply.

With the added downward pressure, US oil inventories reached their highest level since May 2021 last week, according to energy information data.

UK Oil And Gas Industry

In Autumn of last year, the UK instituted a Windfall Tax on the gains of energy firms, increasing the percentage from 25.4% to 35.5%, with an extra 10 rate points commencing on the first day of 2023. This constituted the utmost percentage for any sector in the UK, boosting the total tax rate by 75.6%.

Therefore, in response, Harbour Energy, the largest oil and gas producer in the UK‘s northern seas, launched a licensing round offering over 100 new licenses.