It’s time to read the writing on the wall: Why the West no longer exists April 21, 2014 WHATEVER the final outcome of the violently simmering crisis in Ukraine, and however likely it is that that embattled state will remain caught in Russia’s crushing embrace, the greatest global political risk can’t be found in Kiev, eastern Ukraine or any of the other hotspots that get the media so excited. It lies in the [...]
Ukraine will only be the start April 21, 2014 Traders set to increasingly feel the pinch from flare-ups in petro-states FOR ANY traders not paying close attention to energy markets, recent events will have come as a rude awakening. Brent crude shot up from just above $104 per barrel in February to over $109 at the end of last week, while energy firms embroiled [...]
Why Europe’s options for diversifying its energy supplies are strictly limited April 21, 2014 CONFLICT in Ukraine has added another major geopolitical risk for energy markets in 2014. Gazprom’s cancellation of gas price discounts in Ukraine at the start of April significantly raises the risk that Russia will use short-term gas supply cuts for political leverage. While a short-term disruption this spring or summer would have muted market impact [...]
Geopolitical risks to support the oil price – despite demand growth drop April 21, 2014 THE BOOST the energy sector received up until early March is unlikely to be repeated as we move into the second quarter. Oil traders will be keeping an eye on several issues. China, the world’s biggest importer of oil, saw a dramatic reduction in February imports, after a record high in January. If this trend [...]
Nato steps up military activity in east Europe April 17, 2014 DEFENCE organisation Nato has stepped up its military presence in eastern Europe amid concerns that the interim government is losing control of a tense standoff with pro-Russian forces. Secretary general Anders Fogh Rasmussen confirmed yesterday that additional planes, ships and land vehicles will be deployed to prepare for intervention. “NATO will protect every ally and [...]
Evraz’s steel production falls in first quarter but prices improve April 16, 2014 RUSSIAN steelmaker Evraz yesterday blamed scheduled maintenance works for an eight per cent drop in crude steel production in the first quarter, but said prices for its products had started to pick up at the end of the period. The heavily indebted FTSE 250 company, which is drastically cutting costs this year, said it expects [...]
Putin doesn’t need to invade Ukraine to get what he wants April 16, 2014 THE SIMMERING crisis in Ukraine has just been brought to a boil again. Pushed to the point of no return, the fledgling government in Kiev has at last responded to Russian provocations, for the first time deploying troops, aircraft, and armoured carriers in the east of the country. Kiev has explicitly labelled this an “anti-terrorist [...]
Violence spreads in east Ukraine April 15, 2014 THE UKRAINIAN government deployed forces in the east of the country yesterday, as Russian Prime Minister Dmitry Medvedev warned that Ukraine is on the brink of a civil war. Government forces moved into the cities of Kramatorsk and Slovyansk, both scenes of violent clashes over the last few days. At the airport in Kramatorsk, Ukrainian [...]
Progress on Petroneft farmout April 15, 2014 Aim-listed Petroneft, the loss-making oil and gas explorer, yesterday said that a long-awaited farmout agreement for a 50 per cent stake in one of the licence areas it owns in the Tomsk region of Russia is set to go ahead next week. It did not reveal which company had bought the farmout. Petroneft’s largest shareholder [...]
Why does it take the threat of a Russian invasion to stop EU protectionism? April 15, 2014 The European Union has proudly announced that it will be lifting €500m worth of tariffs on Ukrainian goods. The EU's magnanimous move covers 94.7 per cent of current tariffs on imports of industrial goods and all tariffs on Ukraine’s agricultural produce. Ukraine will not be required to provide reciprocity, but the EU will be obligated [...]