In the wake of Russian invasion of Ukraine, several western countries are contemplating to impose a ban on Russian oil import.

Even though US announcing sanctions on Russian oil is very much on the cards, several European countries have carefully avoided directly hitting the country’s energy exports.

Moreover, Russia has threatened to close a major gas pipeline to Germany and warned of $300 oil prices if the West goes ahead with a ban on its energy exports.

Even if US moves ahead with its plan, can other western nations follow suit considering that Russia caters to almost half of Europe’s gas needs?

Russian oil

Russia is the world’s second-largest producer of petroleum after the United States although, at times, its position fluctuates with that of Saudi Arabia.

Russia accounts for 7 per cent of the global share and is the top exporter of crude and oil products worldwide. Several European countries are heavily reliant on Russian energy.

Russia produces close to 11 million barrels of crude oil per day, of which roughly half the output is used to meet domestic demand.

About half of Russia’s oil output is shipped to European countries and another large chunk goes to China.

EU’s dependence

According to the International Energy Agency, the EU imported 155 billion cubic meters of natural gas from Russia in 2021, almost half (45%) of its gas imports and nearly 40 per cent of the total amount used.

The IEA has put together a 10-part plan to help the region reduce its dependence&nbsp;on&nbsp;the&nbsp;Russian energy source by a third in&nbsp;one year — while still adhering to the&nbsp;European Green Deal.

The plan includes not renewing expired contracts, ramping up renewable sources, keeping open existing nuclear power plants and asking the public to turn down the heat inside buildings.

Switching from burning natural&nbsp;gas&nbsp;to burning coal is a quick fix that is technically possible, but it’s not going to help the&nbsp;EU&nbsp;achieve its climate goals.

European countries that rely most on Russian gas

According to data from the European Union Agency for the Cooperation of Energy Regulators, Germany imports around half of its gas from Russia.

France procures about a quarter of its supply from Russia while it relies heavily more on Norway.

Italy would also be among the most impacted major economies at a 46 per cent reliance on Russian gas.

The UK, on the other hand, draws half its gas supply from domestic sources and imports mostly from Norway and Qatar.

Gas used in Spain also comes from different locations, the biggest trade partners being Algeria and the United States.

Some smaller countries in Europe rely exclusively on Russian gas, namely North Macedonia, Bosnia and Herzegovina and Moldova.

Dependence also exceeded 90 per cent of gas supply in Finland and Latvia. It stood at 89 per cent in Serbia as per the latest available data.

Inflationary shock

Expectations remain grim. JP Morgan predicts oil could hit a record $185 a barrel by 2022-end if the supply disruption to Russian exports lasts long, while a Reuters poll showed most&nbsp;analysts expect yearly price&nbsp;to average below $100.

With natural gas prices hitting all-time highs, soaring energy costs are expected to push inflation above 7 per cent on both sides of the Atlantic in the coming months and severely impact households' purchasing power.

What are the alternatives?

According to&nbsp;current estimates, 79.4 per cent of the world's proven oil reserves (1,189.80 billion barrels, as of 2018) are located in Organization of the Petroleum Exporting Countries (OPEC) member countries, with the bulk in West Asia, accounting for 64.5 per cent of the bloc's total.

During 2011-2020, OPEC members added 71.1 billion barrels to their total proven crude reserves, a significant addition compared to other producers.

On March 1, the US and other member states of the International Energy Agency (IEA) decided to release 60 million barrels of oil reserves to make up for supply disruptions caused by Russia's invasion of Ukraine.

(With inputs from agencies)

In the wake of Russian invasion of Ukraine, several western countries are contemplating to impose a ban on Russian oil import. Even though US announcing sanctions on Russian oil is very much on the cards, several European countries have carefully avoided directly hitting the country’s energy exports.

In the wake of Russian invasion of Ukraine, several western countries are contemplating to impose a ban on Russian oil import. Even though US announcing sanctions on Russian oil is very much on the cards, several European countries have carefully avoided directly hitting the country’s energy exports. Moreover, Russia has threatened to close a major gas pipeline to Germany and warned of $300 oil prices if the West goes ahead with a ban on its energy exports. Even if US moves ahead with its plan, can other western nations follow suit considering that Russia caters to almost half of Europe’s gas needs? Russian oil Russia is the world’s second-largest producer of petroleum after the United States although, at times, its position fluctuates with that of Saudi Arabia. Russia accounts for 7 per cent of the global share and is the top exporter of crude and oil products worldwide. Several European countries are heavily reliant on Russian energy. Russia produces close to 11 million barrels of crude oil per day, of which roughly half the output is used to meet domestic demand. About half of Russia’s oil output is shipped to European countries and another large chunk goes to China. EU’s dependence According to the International Energy Agency, the EU imported 155 billion cubic meters of natural gas from Russia in 2021, almost half (45%) of its gas imports and nearly 40 per cent of the total amount used. The IEA has put together a 10-part plan to help the region reduce its dependence on the Russian energy source by a third in one year — while still adhering to the European Green Deal. The plan includes not renewing expired contracts, ramping up renewable sources, keeping open existing nuclear power plants and asking the public to turn down the heat inside buildings. Switching from burning natural gas to burning coal is a quick fix that is technically possible, but it’s not going to help the EU achieve its climate goals. European countries that rely most on Russian gas According to data from the European Union Agency for the Cooperation of Energy Regulators, Germany imports around half of its gas from Russia. France procures about a quarter of its supply from Russia while it relies heavily more on Norway. Italy would also be among the most impacted major economies at a 46 per cent reliance on Russian gas. The UK, on the other hand, draws half its gas supply from domestic sources and imports mostly from Norway and Qatar. Gas used in Spain also comes from different locations, the biggest trade partners being Algeria and the United States. Some smaller countries in Europe rely exclusively on Russian gas, namely North Macedonia, Bosnia and Herzegovina and Moldova. Dependence also exceeded 90 per cent of gas supply in Finland and Latvia. It stood at 89 per cent in Serbia as per the latest available data. Inflationary shock Expectations remain grim. JP Morgan predicts oil could hit a record $185 a barrel by 2022-end if the supply disruption to Russian exports lasts long, while a Reuters poll showed most analysts expect yearly price to average below $100. With natural gas prices hitting all-time highs, soaring energy costs are expected to push inflation above 7 per cent on both sides of the Atlantic in the coming months and severely impact households' purchasing power. What are the alternatives? According to current estimates, 79.4 per cent of the world's proven oil reserves (1,189.80 billion barrels, as of 2018) are located in Organization of the Petroleum Exporting Countries (OPEC) member countries, with the bulk in West Asia, accounting for 64.5 per cent of the bloc's total. During 2011-2020, OPEC members added 71.1 billion barrels to their total proven crude reserves, a significant addition compared to other producers. On March 1, the US and other member states of the International Energy Agency (IEA) decided to release 60 million barrels of oil reserves to make up for supply disruptions caused by Russia's invasion of Ukraine. (With inputs from agencies)

Just how crucial Russian gas is for West, in spite of its invasion of Ukraine

Oil prices soared nearly $2 per barrel on Friday as Russia’s invasion of Ukraine continued to inflame global supply concerns. The attack on Ukraine caused prices to surge to more than $100 a barrel for the first time since 2014 on Thursday.

Oil prices surge 2% to $101/barrel as Russian invasion of Ukraine rings supply alarm bells

Oil prices soared past $100 for the first time in over seven years on Thursday after Russian President Vladimir Putin announced a"military operation" in Ukraine, apparently realising fears he would invade.

In response to the announcement, Brent reached $100.04 a barrel, as concerns grew over a full-scale conflict in eastern Europe, and WTI hit $95.54.

This came shortly after Putin made a surprise television announcement declaring his intentions.

Also read |&nbsp;<a href="https://www.wionews.com/world/putin-declares-military-operation-to-demilitarise-ukraine-455828">Putin declares military operation 'to demilitarise Ukraine'</a>

"I have made the decision of a military operation," Putin said shortly before 6:00 am (0300 GMT) in Moscow, vowing retaliation against anyone who interfered.

In addition, he urged the Ukrainian military to lay down its weapons.

Earlier, the Kremlin reported that rebel leaders in eastern Ukraine had asked Moscow for military assistance against Kyiv.&nbsp;

Following Russia's recognition this week of two breakaway regions in Ukraine and its promise to provide "peacekeepers", US officials warned of a potential Russian incursion.

Also read |&nbsp;<a href="https://www.wionews.com/world/even-as-tensions-over-ukraine-rise-us-russian-space-cooperation-continues-455825">Even as tensions over Ukraine rise, US-Russian space cooperation continues</a>

After separatists called for help repelling Ukrainian forces, fears of a move grew.

The threat of a conflagration has stoked concerns regarding the supply of key commodities such as wheat and metals at a time when demand is rallying after the reopening of economies following pandemic lockdowns.

Crude oil prices have soared in recent weeks, and on Thursday, Brent crude oil finally crossed the $100 mark for the first time since September 2014.

Watch |&nbsp;Gravitas: China's lessons from the Ukraine crisis

<iframe allowfullscreen="" autoplay="1" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-chinas-lessons-from-the-ukraine-crisis-455785/embed" width="560"></iframe>

"Russia/Ukraine tensions bring both a possible demand shock (for Europe), and more importantly a much larger supply shock for the rest of the world given the importance of Russia and Ukraine to energy, hard commodities and soft commodities," said National Australia Bank's Tapas Strickland.

Governments are struggling to contain runaway inflation fuelled by demand, with many fearing the fragile global economic recovery will be hindered as life returns to normal after recent lockdowns.

(With inputs from agencies)

Oil prices soared past $100 for the first time in over seven years on Thursday after Russian President Vladimir Putin announced a"military operation" in Ukraine, apparently realising fears he would invade.

Oil prices soared past $100 for the first time in over seven years on Thursday after Russian President Vladimir Putin announced a"military operation" in Ukraine, apparently realising fears he would invade. In response to the announcement, Brent reached $100.04 a barrel, as concerns grew over a full-scale conflict in eastern Europe, and WTI hit $95.54. This came shortly after Putin made a surprise television announcement declaring his intentions. Also read | Putin declares military operation 'to demilitarise Ukraine' "I have made the decision of a military operation," Putin said shortly before 6:00 am (0300 GMT) in Moscow, vowing retaliation against anyone who interfered. In addition, he urged the Ukrainian military to lay down its weapons. Earlier, the Kremlin reported that rebel leaders in eastern Ukraine had asked Moscow for military assistance against Kyiv. Following Russia's recognition this week of two breakaway regions in Ukraine and its promise to provide "peacekeepers", US officials warned of a potential Russian incursion. Also read | Even as tensions over Ukraine rise, US-Russian space cooperation continues After separatists called for help repelling Ukrainian forces, fears of a move grew. The threat of a conflagration has stoked concerns regarding the supply of key commodities such as wheat and metals at a time when demand is rallying after the reopening of economies following pandemic lockdowns. Crude oil prices have soared in recent weeks, and on Thursday, Brent crude oil finally crossed the $100 mark for the first time since September 2014. Watch | Gravitas: China's lessons from the Ukraine crisis "Russia/Ukraine tensions bring both a possible demand shock (for Europe), and more importantly a much larger supply shock for the rest of the world given the importance of Russia and Ukraine to energy, hard commodities and soft commodities," said National Australia Bank's Tapas Strickland. Governments are struggling to contain runaway inflation fuelled by demand, with many fearing the fragile global economic recovery will be hindered as life returns to normal after recent lockdowns. (With inputs from agencies)

In the wake of Putin's 'military operation' threat, oil prices soar past $100 for the first time since 2014

OPEC+ production group is expected to stick to its plans to increase output in February when it meets on Tuesday.

OPEC+ expected to stick with planned February output increase

OPEC and its allies begin two days of meetings to decide whether to release more oil into the market or restrain supply amid an oil price rout and fears the Omicron coronavirus variant could weaken global energy demand.

Omicron scare: OPEC+ begins two day talks amid oil price rout

The United States is expected to announce a loan of crude oil from its emergency stockpile on Tuesday as part of a plan it hashed out with major Asian energy consumers to lower energy prices, a Biden administration source familiar with the situation said.

The move is designed to tame soaring energy prices after the OPEC producer group and its allies rebuffed repeated requests from Washington and other consumer nations to pump more quickly to match rising demand.

US&nbsp;President Joe Biden is facing low approval ratings due to high prices for gasoline and other consumer items in the recovery from the coronavirus pandemic, posing a threat to him and his Democratic party ahead of next year`s congressional elections.

A so-called "swap" from the US&nbsp;Strategic Petroleum Reserve (SPR) will be announced on Tuesday in a move coordinated with several countries, the source said. The source did not specify how much oil would be released from the stockpiles.

Biden has already asked China, India, South Korea and Japan to release strategic oil stocks in concert with the United States. Japanese and Indian officials are working on ways to do that, Reuters reported.

The unprecedented effort by Washington to team up with major Asian economies to lower energy prices is intended as a warning to major producers that they should pump more oil to address concerns of high fuel prices in powerhouse economies.

OPEC+, which groups the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, plans to meet on Dec. 2 to discuss output policy.

The impact of a coordinated oil release would depend on the timeframe and quantity, but a release of more than about 60 million barrels in around 30 days would be seen by the market as "very negative for pricing", said Commonwealth Bank of Australia analyst Vivek Dhar.

"This situation is coming at a time when this market was shifting and global oil stockpiles are rising. So this could see prices fall more steeply than you think," he said, pointing to new coronavirus lockdowns in Europe.

<h2>Oil off highs</h2>

The United States historically has worked with the Paris-based International Energy Agency (IEA), a bloc of 30 industrialized energy-consuming nations when global supply issues demand a coordinated release of stocks.

Japan and South Korea are IEA members, while China and India are only associate members.

Under an SPR swap, oil companies take crude oil from the stockpiles but are required to return it - or the refined product - plus interest. Swaps are typically offered when oil companies face a supply disruption like a pipeline outage or damage from a hurricane.

Outright sales are less common.

U.S. presidents have authorized emergency sales from the SPR three times, most recently in 2011 during a war in OPEC member Libya. Sales also took place during the Gulf War in 1991 and after Hurricane Katrina in 2005.

Current high prices have not been caused by a supply disruption, but rather a rebound on global energy demand from lows struck during lockdowns in the early days of the coronavirus crisis.

OPEC+ has been adding around 400,000 barrels per day to the market on a monthly basis to meet the increasing demand, but has resisted Biden`s calls for more rapid increases, arguing the rebound in demand could be fragile.

The threat of a coordinated release of stockpiled oil onto the market, along with new coronavirus-related lockdowns in Europe, has knocked the wind out of crude oil`s rally lately. Brent crude was last trading around $79.30 a barrel, down more than $7 from a peak reached in late October. [O/R]

Citigroup analysts estimated that a combined release of oil from the United States and other countries could be "on the order of 100-120 million bbls or higher."

One source familiar with the discussions, however, said the input from China and other countries is still very much up in the air, and that nations like India and South Korea would be likely to contribute just a small amount of barrels.

The United States is expected to announce a loan of crude oil from its emergency stockpile on Tuesday as part of a plan it hashed out with major Asian energy consumers to lower energy prices, a Biden administration source familiar with the situation said.

The United States is expected to announce a loan of crude oil from its emergency stockpile on Tuesday as part of a plan it hashed out with major Asian energy consumers to lower energy prices, a Biden administration source familiar with the situation said. The move is designed to tame soaring energy prices after the OPEC producer group and its allies rebuffed repeated requests from Washington and other consumer nations to pump more quickly to match rising demand. US President Joe Biden is facing low approval ratings due to high prices for gasoline and other consumer items in the recovery from the coronavirus pandemic, posing a threat to him and his Democratic party ahead of next year`s congressional elections. A so-called "swap" from the US Strategic Petroleum Reserve (SPR) will be announced on Tuesday in a move coordinated with several countries, the source said. The source did not specify how much oil would be released from the stockpiles. Biden has already asked China, India, South Korea and Japan to release strategic oil stocks in concert with the United States. Japanese and Indian officials are working on ways to do that, Reuters reported. The unprecedented effort by Washington to team up with major Asian economies to lower energy prices is intended as a warning to major producers that they should pump more oil to address concerns of high fuel prices in powerhouse economies. OPEC+, which groups the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, plans to meet on Dec. 2 to discuss output policy. The impact of a coordinated oil release would depend on the timeframe and quantity, but a release of more than about 60 million barrels in around 30 days would be seen by the market as "very negative for pricing", said Commonwealth Bank of Australia analyst Vivek Dhar. "This situation is coming at a time when this market was shifting and global oil stockpiles are rising. So this could see prices fall more steeply than you think," he said, pointing to new coronavirus lockdowns in Europe. Oil off highs The United States historically has worked with the Paris-based International Energy Agency (IEA), a bloc of 30 industrialized energy-consuming nations when global supply issues demand a coordinated release of stocks. Japan and South Korea are IEA members, while China and India are only associate members. Under an SPR swap, oil companies take crude oil from the stockpiles but are required to return it - or the refined product - plus interest. Swaps are typically offered when oil companies face a supply disruption like a pipeline outage or damage from a hurricane. Outright sales are less common. U.S. presidents have authorized emergency sales from the SPR three times, most recently in 2011 during a war in OPEC member Libya. Sales also took place during the Gulf War in 1991 and after Hurricane Katrina in 2005. Current high prices have not been caused by a supply disruption, but rather a rebound on global energy demand from lows struck during lockdowns in the early days of the coronavirus crisis. OPEC+ has been adding around 400,000 barrels per day to the market on a monthly basis to meet the increasing demand, but has resisted Biden`s calls for more rapid increases, arguing the rebound in demand could be fragile. The threat of a coordinated release of stockpiled oil onto the market, along with new coronavirus-related lockdowns in Europe, has knocked the wind out of crude oil`s rally lately. Brent crude was last trading around $79.30 a barrel, down more than $7 from a peak reached in late October. [O/R] Citigroup analysts estimated that a combined release of oil from the United States and other countries could be "on the order of 100-120 million bbls or higher." One source familiar with the discussions, however, said the input from China and other countries is still very much up in the air, and that nations like India and South Korea would be likely to contribute just a small amount of barrels.

US set to unveil emergency oil release in bid to fight high prices

OPEC and its allies agreed to stick to plans to raise oil output by 400,000 barrels per day from December, despite calls from the United States for extra supply to cool rising prices.

World Business Watch: OPEC+ rebuffs US calls for speedier oil output increases

Oil prices fell on Monday after China said it released reserves of gasoline and diesel to boost supply, while investors unwound long positions ahead of an OPEC+ meeting on November 4.

Crude oil prices fall after China releases petroleum reserves

Crude oil price is trading hits 7-year highs, as surging demand continues to outpace supply, even as the global economy continues on the path to recovery from the pandemic lows.

Crude oil price hits 7-year highs as Goldman Sachs raises price target

Oil prices climbed on Monday to a one-week high in a second straight session of gains as concerns over US supplies following damage from Hurricane Ida supported the market, along with expectations for higher demand.

World Business Watch: Global oil price climbs to one-week high on US supply concerns

Strategic oil reserves are used to smoothen supply disruptions during emergencies. But China is using it to bring down oil prices. What explains Beijing's new policy? How did the markets react? Palki Sharma tells you.

Gravitas: China announces sale of strategic oil reserves

Snapping a three-day rally on renewed concerns over demand due to rising COVID-19 infections and as Mexico restored some output after a fire disrupted supplies, oil prices settled lower on Thursday.

World Business Watch: Oil rally falters on pandemic surge, renewed Mexico supply

Oil prices rose more than 5% on Monday, as a weaker dollar and strong global equities markets boosted crude futures after seven sessions of declines.

World Business Watch: Oil jumps 5% after 7 days of losses, boosted by weaker dollar

Closing out its worst day since March this year oil prices slumped $5 a barrel on Monday, after an OPEC+ agreement to boost output stoked fears of a surplus just as rising COVID-19 infections once again threaten demand.

World Business Watch: Oil prices slip after OPEC and allies reach deal to boost supply

Oil prices fell more than 1% on Monday, hit by an agreement over the weekend within the OPEC+ group of producers to boost output after an earlier pact fell apart due to objections from the United Arab Emirates (UAE).

World Business Watch: Oil falls more than 1% after OPEC+ agrees to boost supply

As producers balance expectations of a recovery in demand against a possible increase in Iranian supply, OPEC+ is likely to stick to the existing pace of gradually easing oil supply curbs at a meeting on Tuesday.

World Business Watch: OPEC+ likely to stick with current supply plan, sees orderly Iran return

Oil prices climbed in early Asian trade on Monday, underpinned by the bright outlook for fuel demand growth in the next quarter, while investors looked ahead to the OPEC+ meeting this week for supply guidance.

World Business Watch: Oil prices stay firm as demand to outstrip supply in H2

Oil is up more than 35% this year amid optimism fuel demand will increase as the vaccination drive accelerates across major economies and boosts mobility.

Oil steady near two-year high on improving U.S. demand outlook

Oil prices climbed on Monday (May 03) as optimism about a strong rebound in fuel demand in developed countries and China in the second half of the year overshadowed growing concerns of a full lockdown in India to curb the COVID-19 pandemic.

World Business Watch: Oil prices rise amid strong rebound in fuel demand

Royal&nbsp;Dutch&nbsp;Shell&nbsp;swung back into profit in the first quarter as oil prices recovered strongly from a year earlier, the company said Thursday.

The Anglo-Dutch&nbsp;group posted net profit of $5.7 billion (4.7 billion euros) in the first three months of the year,&nbsp;Shell&nbsp;said in a statement.

That compared with a loss after tax of $24 million in the first quarter of 2020 when the coronavirus pandemic began to slam the price of crude.

The first-quarter performance this year benefitted also from a $1.4-billion gain following the sale of assets, the statement added.&nbsp;

"Shell&nbsp;has made a strong start to 2021, generating over $8 billion of cash in the quarter," said chief executive Ben van Beurden.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/world-business-watch-oil-inches-lower-on-concerns-over-covid-19-surge-in-india-japan-380453/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"Our... model is ideally positioned to benefit from recovering demand."

Shell&nbsp;had dived into net loss of $21.7 billion last year as factories shut and planes were grounded.

As a result, it decided to axe more than 10 per cent of its global workforce, or up to 9,000 jobs.

Its losses and steep job cuts mirrored the situation elsewhere in the energy sector last year.&nbsp;

After lockdowns began to spread towards the end of the first quarter in 2020, oil prices dropped off a cliff, even briefly turning negative.

Prices then rebounded sharply, however, with benchmark Brent North Sea oil contract currently trading around $67 per barrel.

Shell&nbsp;rival BP also recovered in the first quarter, announcing this week net profit of $4.7 billion, which compared with a year-earlier loss of $4.4 billion.

France's Total, meanwhile, posted a net profit of $3.3 billion in the first quarter that was even higher than pre-pandemic levels.

On Thursday in the wake of its own results, shares in&nbsp;Shell&nbsp;climbed around 1.0 per cent in early London deals.

"Fortunately for investors these latest results come without the drama seen this time last year when&nbsp;Shell&nbsp;cut its dividend for the first time since the Second World War," said Keith Bowman, equity analyst at Interactive Investor.

Shell&nbsp;this time around increased its dividend payout by about 4.0 per cent compared with the final quarter of last year.

Bowman meanwhile noted that extreme winter weather hitting&nbsp;Shell's US Texas operations had dragged on adjusted earnings, "although, as with rivals, an upturn in energy prices has aided profit generation".&nbsp;

Shell&nbsp;said this year's deadly Texas winter storm cost the group $200 million in the first quarter on reduced oil output.

February's polar vortex storm killed dozens of people, left millions without electricity and water, caused billions of dollars of damage to the sector and forced several Texas electric firms to file for bankruptcy.

The freezing temperatures also caused outages at energy installations...natural gas-fired power plants, wind turbines and nuclear plants, which are not typically insulated as they are in other states with colder climates.

Royal Dutch Shell swung back into profit in the first quarter as oil prices recovered strongly from a year earlier, the company said Thursday. The Anglo-Dutch group posted net profit of $5.

Royal Dutch Shell swung back into profit in the first quarter as oil prices recovered strongly from a year earlier, the company said Thursday. The Anglo-Dutch group posted net profit of $5.7 billion (4.7 billion euros) in the first three months of the year, Shell said in a statement. That compared with a loss after tax of $24 million in the first quarter of 2020 when the coronavirus pandemic began to slam the price of crude. The first-quarter performance this year benefitted also from a $1.4-billion gain following the sale of assets, the statement added. "Shell has made a strong start to 2021, generating over $8 billion of cash in the quarter," said chief executive Ben van Beurden. "Our... model is ideally positioned to benefit from recovering demand." Shell had dived into net loss of $21.7 billion last year as factories shut and planes were grounded. As a result, it decided to axe more than 10 per cent of its global workforce, or up to 9,000 jobs. Its losses and steep job cuts mirrored the situation elsewhere in the energy sector last year. After lockdowns began to spread towards the end of the first quarter in 2020, oil prices dropped off a cliff, even briefly turning negative. Prices then rebounded sharply, however, with benchmark Brent North Sea oil contract currently trading around $67 per barrel. Shell rival BP also recovered in the first quarter, announcing this week net profit of $4.7 billion, which compared with a year-earlier loss of $4.4 billion. France's Total, meanwhile, posted a net profit of $3.3 billion in the first quarter that was even higher than pre-pandemic levels. On Thursday in the wake of its own results, shares in Shell climbed around 1.0 per cent in early London deals. "Fortunately for investors these latest results come without the drama seen this time last year when Shell cut its dividend for the first time since the Second World War," said Keith Bowman, equity analyst at Interactive Investor. Shell this time around increased its dividend payout by about 4.0 per cent compared with the final quarter of last year. Bowman meanwhile noted that extreme winter weather hitting Shell's US Texas operations had dragged on adjusted earnings, "although, as with rivals, an upturn in energy prices has aided profit generation". Shell said this year's deadly Texas winter storm cost the group $200 million in the first quarter on reduced oil output. February's polar vortex storm killed dozens of people, left millions without electricity and water, caused billions of dollars of damage to the sector and forced several Texas electric firms to file for bankruptcy. The freezing temperatures also caused outages at energy installations...natural gas-fired power plants, wind turbines and nuclear plants, which are not typically insulated as they are in other states with colder climates.

Shell swings back to profit on oil price recovery

Brent crude futures rose US$2.91, or 4.6%, to settle at $66.58 a barrel. U.S. West Texas Intermediate (WTI) crude ended $2.97, or 4.9%, higher at $63.15 a barrel.

Oil price climbs nearly 5% on signs of increasing crude demand

Crude prices rose on Thursday, recouping some of the previous session's losses on expectations that a meeting of OPEC and its allies later on Thursday (April 01) would yield output constraint in the face of resurgent COVID-19 infections in some regions.

World Business Watch: Oil gains ahead of OPEC+ meet on output policy

Investors are shifting focus to the upcoming OPEC+ ministerial meeting that is happening this Thursday (01 April). Analysts expect the group to extend supply curbs given dim demand prospects.

World Business Watch: Analysts expect OPEC+ to extend supply curbs

OPEC has said a recovery in oil prices and demand will be focused on the second half of the year as the impact of the COVID-19 lingers as a headwind for a group and its allies in supporting the market.

World Business Watch: 2021 oil demand recovery in second half

oil-price

Oil Price, News on Oil Price, stories on Oil Price, articles on Oil Price, Oil Price stories at Wion, Oil Price news, Oil Price latest news