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On May 9th, the Ukrainian presidential website published a presidential decree signed by Zelensky late on the 8th, stating that based on the humanitarian principles clarified during talks with the United States on the 8th, the military parade to be held on May 9th in Moscows Red Square would not be a target of attack by Ukraine. The decree took effect immediately upon signing on the 8th.According to the U.S. Commodity Futures Trading Commission (CFTC), in the week ending May 5, crude oil speculators reduced their net long positions in WTI crude oil by 2,220 contracts to 106,278 contracts.According to the U.S. Commodity Futures Trading Commission (CFTC), as of the week ending May 5, COMEX gold speculators net long positions increased by 4,090 contracts to 95,664 contracts.On May 9th, Chicago Federal Reserve President Goolsby stated that all interest rate options are currently under consideration, not just rate cuts. At the end of April, the Fed kept interest rates unchanged, with three officials objecting to wording in the statement that hinted at a possible rate cut, arguing that the possibility of a rate hike should be preserved. Goolsbys remarks reflect a shift in Fed policymakers—no longer considering near-term rate cuts, primarily due to the energy price shock triggered by the Iran war pushing up inflation. He reiterated that both rate cuts and hikes are under consideration and expressed concern about inflation, believing that price pressures exist in addition to the energy shock.Hang Seng Index futures closed down 0.06% at 26,250 points in overnight trading, a discount of 144 points.

Ukraine Will Block A Crucial Russian Gas Transit to Europe, Blaming Russia

Charlie Brooks

May 11, 2022 09:46

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Ukraine said on Tuesday that it will cease the flow of gas via a transit point that, according to Kiev, sends over one-third of the fuel piped from Russia to Europe through Ukraine. Kiev blamed Moscow for the action and said it would redirect the flows elsewhere.


Even after Moscow's invasion, Ukraine has remained a significant transit route for Russian gas to Europe.


The operator of Ukraine's gas infrastructure, GTSOU, has declared "force majeure" and will cease shipments through the Sokhranivka route as of Wednesday. "Force majeure" is a provision triggered when a firm is affected by circumstances beyond its control.


However, Gazprom (MCX:GAZP), which has a monopoly on Russian gas pipeline exports, said that it was "technologically impossible" to move all volumes to the Sudzha connecting point farther to the west, as GTSOU requested.


GTSOU CEO Sergiy Makogon told Reuters that Russian occupation troops have begun transporting gas flowing through Ukraine to two rebel territories supported by Russia in the country's east. He failed to provide proof.


The company stated that it was unable to operate at the Novopskov gas compressor station due to "the interference of the occupying forces in technical processes," adding that it could temporarily redirect the affected flow to the Sudzha physical interconnection point, which is located on Ukrainian territory.


Ukraine's suspension of Russian natural gas shipments via the Sokhranivka route should have no effect on the local Ukrainian market, according to Yuriy Vitrenko, the president of the state-owned energy business Naftogaz.


The national gas company of Moldova, a tiny country on Ukraine's western border, said that neither GTSOU nor Gazprom had notified them of a supply interruption.


Russian army and separatist militants have controlled the Novopskov compressor station in the Luhansk area of eastern Ukraine since shortly after Moscow launched a "special military operation" in February.


GTSOU said that it is the first compressor in the Ukraine gas transit system in the Luhansk area, the transit route for about 32,6 million cubic metres of gas per day, or a third of the Russian gas transported to Europe through Ukraine.


To fulfill its "transit responsibilities to European partners in full," GTSOU said that it will "temporarily move unavailable capacity" to the Sudzha interconnection point.


Gazprom said it had received information from Ukraine that the nation will cease gas transit to Europe through the Sokhranivka interconnector at 7:00 a.m. on Wednesday local time.


The Russian corporation said that it observed no evidence of force majeure or impediments to business as usual. Gazprom emphasized that it was fulfilling its commitments to European gas purchasers.


As punishment for the invasion of Ukraine, the United States has pushed other nations to reduce their reliance on Russian energy and has prohibited Russian oil and other energy imports.


Ned Price, a spokeswoman for the U.S. State Department, said that Tuesday's declaration does not alter the "as soon as feasible" schedule for reducing global dependency on Russian oil.

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