Oil market underestimates threat to Russian supply

(Boursier.com) – The barrel of crude is moving down on Wednesday with the resurgence of risk aversion on the financial planet. While the evolution of weekly crude inventories in the United States will not be revealed until tomorrow, the oil market underestimates the threat to Russian supplies, warns Pimco. Russian black gold production could be hit harder by escalating EU sanctions than international oil markets anticipate, causing prices to rise further in the future, according to Pacific Investment Management Co.

Although crude has rallied since OPEC+, which includes Saudi Arabia and Russia, announced plans to cut production quotas by 2 million barrels per day, the gains have been “rather small by comparison. compared to the decline of recent months”, say the specialists of the bond management giant in a note taken up by ‘Bloomberg’.

“Demand remains a concern with tighter financial conditions, but the standout of the past year is that broader energy and commodity markets have tightened tremendously without China acting as a driver. of growth”. Measures to stimulate the Chinese economy could offset declines in demand spurred by interest rate hikes, Pimco teams add.