Month: July 2019

The Cabinet of Ministers has determined the final amount of special duties on Russian diesel and liquefied gas, which will come into force on August 1.

On the import of ZN from August 1, a special duty of 3.75% of the customs value of the goods will be applied. The duty is introduced only for pipeline deliveries (90% of the total import of DT from the Russian Federation is on the pipeline).

For liquefied gas, the duty will be set at 1.75% from August.

Starting from October 1, duty rates will be increased to 4% for DT and 3% for liquefied gas.

At the same time, the government refused to introduce quotas on volumes of supplies. In the initial project, an annual QT quota of 2500000 tons was planned (at current annual imports of 2,700,000 tons).

The introduction of duties only on pipeline deliveries to ZN, he explained the “super-market walrus of the trader of the importer”, which carries out import of fuel from the petrochemical pipeline “PrykarpatZapadtrans”.

“The corresponding duties will remove the marginal import trader margin, which arose due to logistics (diesel fuel) and other factors. If a typical walrus in a large opt is $ 10-12 / t, then for the supply of pipeline transport, such a walrus was $ 35-40 / t, “the source reports.

After the introduction of duties on the DT, the wagon suppliers of ZN by pipeline “will be brought to normal market levels, and this will not affect retail prices.”

An additional budget revenue from the introduction of duties, a representative of the president in the government Andrei Gerus, estimated at 2 billion USD per year.

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Let’s remind, the Cabinet of Ministers announced the introduction of a fee for the Russian DT on May 15, but to date, this ruling has not been made public.

The draft resolution, which was considered at the meeting on May 15, provided for the introduction of a 2% duty on imports of diesel fuel in the annual volume of up to 2500000 tons and 25% on deliveries beyond this volume. There were no fees for LPG in this project.

The decision to impose restrictions on imports of Russian goods, including a week ago, was adopted in response to unfriendly actions by the Russian Federation, a month before that, on April 18, 2019, imposed sanctions against Ukraine.

Deliveries of ZN from Russia in 2018 provided 40% of the Ukrainian diesel market – 2597000 tons. In the first half of 2019 deliveries grew by 23.2%, to 1380000 tons, compared to the same indicator in 2018, and the share in the balance of the market to 44 %

The import of liquefied hydrocarbon gas from Russia in 2018 amounted to 503 thousand tons. T. Or 29% of the market volume. In the first half of 2019, it grew by 44% to 317.6 thousand. T, and the share in the balance increased to 37%.

Source: enkorr

Oil prices rose on Wednesday after a sharp fall in previous bids. The quotes support was supported by OPEC + alliance extensions to extend the supply limit for raw materials by March 2020 and more than predicted to reduce commercial oil reserves in the US.

The cost of a barrel of September oil Brent on July 3 at 9:07 am in Kiev was $ 62.55 (+ 0.24%). August’s oil barrel WTI traded at $ 56.42 (+ 0.30%). In the course of the previous sessions, the Brent oil fell from $ 65.40 to $ 62.38 per barrel, WTI brand oil – from $ 59.34 to $ 56.22 /

The Organization of Petroleum Exporting Countries and its allies on the eve of the deal agreed to continue reducing oil supplies until March 2020, as its participants overcame internal disagreements, trying to maintain world prices.

“The meeting of OPEC + showed that members of the cartel keep together in difficult times, characterized by deteriorating prospects for world demand and the pursuit of a more balanced oil market, despite the apparent consequences for the market share,” said Amparit Singh, an analyst at Barclays Commodities Research. “It supports oil prices … despite the fact that the market is still focused on weak macro signals.”

The OPEC + agreement on the extension of oil production contraction for nine months should lead to a decrease in crude oil reserves in the second half of this year, which will raise world prices, analysts at Citi Research say.

“The continuation of the reductions by the end of the first quarter is aimed at preventing the entry of [extra] oil into the market during the minimum seasonal demand and the shutdown of a number of major refineries for maintenance. In addition, [signatories to the OPEC + agreement] are trying to gain time to assess the impact of IMO 2020 “, – experts said.

Last week’s commercial oil reserves in the US fell by 5 million barrels. with an expected decline of 3 million barrels, according to data from the American Institute of Oil (API).

However, signs of a slowdown in the global economy have had a negative impact on the growth of oil demand, anxious investors. This worry has grown after world output has gone negative, and the United States has threatened to impose sanctions against the EU in response to state aid from the European aviation industry.

Barclays expects this year’s demand for oil to grow at the slowest pace since 2011 and will be less than 1 bar. / Daily on an annual basis.

Source: Investing.com, Reuters, Enkor