Lower Prices for Crude Oil
According to a Tuesday note by OANDA analyst Edward Moya there are some concerns about geopolitical risks. These risks have not yet materialized. Yet were overshadowed by lower crude oil prices. This was a result of the prognosis for global growth continuing to worsen. The oil market is still tight despite the price drop. Therefore the current trend shouldn’t endure too long. According to Moya. Energy markets had anticipated disruptions in crude exports from Iraq or Libya at the beginning of the trading week. The US Federal Reserve’s words that warned of additional suffering for individuals and businesses had the world markets still in shock. According to Moya, EU inflation figures also indicate aggressive tightening that might plunge Europe into a deep recession.
The Spanish oil and energy company Repsol will be sued by Peru’s consumer protection agency. Indecopi, for 3 billion US dollars in environmental damages. Also a 1.5 billion US dollars in compensation for local residents suffering as a result of a spill on January 15, 2022. The Spill led to the entry of over 10,000 barrels of oil into the Pacific Ocean. According to Peruvian authorities, the spill is the largest ecological catastrophe to have affected the region around the country’s capital in recent years. It has wreaked havoc on two protected biodiversity zones. The precise volume of oil that has escaped is now unknown. Some estimates say it is closer to 6,000 barrels.
Peru files a 4.5 billion dollar lawsuit against a Crude Oil company for a spill
The oil firm initially claimed in a news release on January 21, 2022, that the spill was triggered by anomalous waves. Those were brought on by a volcano eruption near Tongo. Causing an undersea oil pipeline to burst. The oil corporation has since disputed culpability for the incident. Repsol later put the blame for the incident on the ship Mare Doricum. It is an Italian vessel, which was discharging crude oil at the La Pampilla plant. The corporation said that because neither government nor navy sources had sent any warnings about large waves approaching, the company had continued unloading when the waves arrived. Repsol made a misleading statement that the spill only contained “seven gallons” before government inspectors arrived to check the disaster.
Repsol’s spokesperson called the allegations made by Indecopi baseless, inadmissible, and inconsistent. Although she said that the business is still looking into the origin of the spill. According to a Repsol spokesman, the cleanup effort would cost the Spanish business 150 million US dollars or its equivalent. On the other hand, Repsol declared a net income of just under 2.5 billion Euros. This is more than 15 times the company’s estimated cleaning cost. Despite one analyst claiming that 150 million dollars are not a little sum.
According to representatives of the Peruvian Ministry of Environment, the oil spill has not only resulted in significant ecological harm and the loss of livelihood for hundreds of fishermen, but it has also led to a reduction in tourism in the region. A Peruvian judge has granted permission for the most recent action against Repsol to proceed, according to the head of Indecopi. A portion of the settlement money will be distributed to the impacted individuals who live within 150 kilometers (nearly 90 miles) of the contaminated shore.
