(Bloomberg) — Oil ended the day little changed as traders weighed fresh efforts from the European Union to crimp Russian energy exports.<\/p>\n
Most Read from Bloomberg<\/p>\n
West Texas Intermediate crude held steady to close near $67 a barrel after the EU agreed to a lower price cap for Moscow\u2019s crude as part of a package of sanctions on Moscow. The measures include curbs on fuels made from Russian petroleum, additional banking limitations and a ban on a large oil refinery in India. The Asian country, which buys large amounts of Russian crude, is a major exporter of refined products to Europe, where markets for fuels like diesel have been tight.<\/p>\n
\u201cWhile the EU measures may not drastically impact crude flows, the restrictions on refined products and expanded shadow fleet targeting are fueling concern in the diesel complex,\u201d said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group.<\/p>\n
Oil has trended higher since early May, with both Morgan Stanley and Goldman Sachs Group Inc. making the case that a buildup in global crude stockpiles has occurred in regions that don\u2019t hold much sway in price-setting.<\/p>\n
Meanwhile, spreads in the diesel market are indicating tightness. The gap between the first and second month of New York heating oil futures climbed to $4.17 a gallon at one point in the session, up from $2.99 on Thursday. (Diesel and heating oil are the same product in the US, just taxed differently.)<\/p>\n
\u201cThe logic of diesel tightness propping up crude flat prices remains unchanged,\u201d said Huang Wanzhe, an analyst at Dadi Futures Co., who added that the peak-demand season had seen a solid start. \u201cThe key question is how long this strength can last,\u201d she said.<\/p>\n
In wider markets, strong US data on consumer sentiment eased concerns about the world\u2019s largest economy, helping to underpin a risk-on mood.<\/p>\n
Crude futures also remain in backwardation in the nearer months of their curves, which means traders are having to pay more to secure prompt supplies. That pattern points to tight conditions even as producers\u2019 cartel OPEC+ has been relaxing output curbs at a rapid clip.<\/p>\n
–With assistance from Sarah Chen.<\/p>\n
Most Read from Bloomberg Businessweek<\/p>\n
\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Oil ended the day little changed as traders weighed fresh efforts from the European Union to…\n","protected":false},"author":2,"featured_media":272922,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7655],"tags":[3662,1699,332],"class_list":{"0":"post-272921","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-russia","8":"tag-bloomberg","9":"tag-european-union","10":"tag-russia"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114876100292110045","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/272921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=272921"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/272921\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/272922"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=272921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=272921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=272921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}