Diplomatic tactics applied by the G7 members to solve war-induced energy supply issues could propel the energy components to break the recent peaks tested in June 2022, as the sharp price reversal on Monday in both the energy components represents the reactionary tilt in the sentiments. If not solved tactfully, energy prices could surge as Russia sells its oil at discounts up to $40 a barrel to some G7 participants.
The leaders of the Group of Seven advanced economies will continue their three-day summit. U.S. officials have said Moscow was earning more money from its energy exports today than before the Russia-Ukraine war.
Russia, the world's second-largest crude oil exporter after Saudi Arabia and the world's largest exporter of natural gas has a trillion-dollar-a-year cushion against sanctions as it sells Urals blend of crude at a discount to Brent.
Major democracies will discuss further sanctions on Moscow as Russia stepped up its missile barrage on Kyiv, Ukraine’s capital, a move which U.S. President Joe Biden condemned as "barbarism."
The leaders of the Group of Seven advanced economies will continue their three-day summit, with Russia’s invasion of Ukraine and the state of the global economy the main topics in discussion.
The group is expected to announce a ban on imports of Russian gold on Tuesday and the future tactics to control rising energy prices, with a potential price cap on Russian crude and oil products exports.
I find the whole world could feel the resultant impact of the outcome of the G7 summit up to the mid of July as the reversal in WTI Crude Oil and natural gas on Monday could keep the uptrend intact.
If both maintain the current uptrend at the same speed on Tuesday and Wednesday, this weekly closing will define the longer-term direction of the oil and gas prices. Traders will be keeping a close eye on the ongoing G7 meeting, given the potential for further moves against Russia’s energy exports and the potential restart of Iranian nuclear talks.
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