G7 seeks to curb Russian oil income

The Group of Seven rich nations debating price cap

The Group of Seven rich nations are debating a global price cap for Russian oil that would curb Moscow’s energy revenues and potentially limit its ability to fund its invasion of Ukraine. Higher crude oil and fuel prices allowed Russian revenues to climb in May despite its export volumes slipping due to sanctions, the International Energy Agency said in its June monthly report.

Russian oil export revenues are estimated to have increased by $1.7 billion in May to about $20 billion. The G7 nations have agreed to ban Russian oil imports, although some over time. Europe was still the destination for 43% of Russian oil and fuel last month. China’s imports of Russian oil and fuel have risen, while India has overtaken Germany’s place as the number two destination.

The G7 would ideally like to end Russian oil sales, but accepts that increased output from producers would not make up the shortfall.

https://www.reuters.com/

European Gas Prices On The Decline

Early start of summer and ample LNG supply push gas prices down

European natural gas prices have been on the slide for several days now as an early start of summer combines with ample LNG supplies to quench supply worries. According to a Bloomberg report, natural gas prices in Europe have been on the decline for five days now as demand eases while supply remains strong thanks to LNG and continued deliveries by Gazprom via Ukraine and the Nord Stream 1 pipeline.

Europe became the biggest buyer of U.S. liquefied natural gas a few months ago as it sought to reduce its dependence on Russian gas even before Russia’s invasion of Ukraine. This has led to a spike not only in gas prices but also in LNG carrier rates, which recently hit the highest in a decade.

Despite the lower demand, gas prices in Europe remain quite elevated as importers seek to refill their reserves ahead of the next heating season. Some of these might be worse off than others as Gazprom suspended deliveries to Poland, Bulgaria, the Netherlands, and Denmark over their refusal to pay for the gas in rubles.

Still, most of the large gas buyers that supply European countries with natural gas from Gazprom have accepted the latter’s payment terms, ensuring the uninterrupted supply of gas. According to unnamed sources cited by Bloomberg today, Gazprom was unlikely to cut off supplies to any other European buyers for now.

https://oilprice.com/

Energy Prices Rose 59% In 2021

Economic recovery from the Covid-19 pandemic

Energy prices at the end of 2021 were 59% higher than they were at the beginning of the year, according to a new report by the Energy Information Administration (EIA).

The boom in energy prices—which was more than the gains seen by other commodities—was largely the result of economic recovery from the Covid-19 pandemic. Most other commodity prices in the S&P Goldman Sachs Commodity Index (GSCI) saw about a  20% increase, with the exception of precious metals, which saw a decline.

Within the energy portion of the commodity index that tracks the performance of global commodities markets, RBOB (wholesale gasoline) saw the largest gain at 67%, followed by heating oil, then WTI and Brent. Gasoil and natural gas rounded out the energy segment of the GSCI.

https://oilprice.com/

China’s Coal Prices Soar To All-Time High

Secure supply “at all costs”

The world’s second-largest economy is grappling with a shortage of coal supply and a power crisis, which threaten to slow economic growth. Just last week, Chinese authorities ordered 72 coal mines in Inner Mongolia to boost production by almost 100 million tons amid an energy crunch that has seen factories shut down and prompted fears of a disruption to the global economy. China is now allowing coal mines to produce the dirtiest fossil fuel even if they have already hit their production quotas.

 

China is also said to have resorted to Australian coal once again to plug the supply hole gaping in its energy security. Last year, China imposed an unofficial ban on Australian coal imports amid a political spat between the two governments. China is scrambling for energy supply ahead of the winter, with a global shortage of natural gas and coal that has led to record-high prices of the fuels in Asia. China has also reportedly ordered its state energy companies to secure supply “at all costs” despite the rallying prices of liquefied natural gas (LNG) and coal.

https://oilprice.com/

Uranium Is Gaining Interest On Reddit’s Most Notorious Investment Forum

Nuclear energy production has a virtually nonexistent carbon footprint

Nuclear advocates point out that the much-maligned form of energy production is actually one of the safest out there. And, importantly, nuclear energy production has a virtually nonexistent carbon footprint. It’s a highly efficient form of climate-friendly energy production, and yet it’s still a hard sell. Nuclear power plants are being decommissioned around the world, and have particularly fallen out of favor in the United States. But nuclear still has a lot of fans who make a lot of compelling points, and they are intent on making themselves heard.

While high-profile nuclear disasters like Chernobyl, Fukushima Daiichi, and Three Mile Island loom large in the public consciousness, and the long half-life of radioactive nuclear waste is a hard pill to swallow, nuclear energy actually kills far fewer people than fossil fuels. “Coal power is estimated to kill around 350 times as many people per terawatt-hour of energy produced, mostly from air pollution, compared to nuclear power,” as CNET is quick to point out.

https://oilprice.com/

Soaring European Energy Prices

Europe’s natural gas and electricity prices could rise even further

Record breaking natural gas and electricity prices in Europe could be the harbinger of increased volatility in global commodity markets, according to Goldman Sachs. “European energy pricing dynamics offer a glimpse of what is in store for other commodity markets, with widening deficits and depleting inventories leading to elevated price volatility,” the investment bank’s analysts wrote in a new report carried by Bloomberg.

Depleted natural gas inventories and low wind speeds have led to a surge in electricity prices across Europe, putting pressure on governments as consumers protest against soaring power bills ahead of the winter heating season. Electricity prices from the UK to Spain have jumped to all-time highs, people in Spain have taken to the streets, while prices across Europe so high could become a drag on the economic recovery from the pandemic.

According to Goldman Sachs, Europe’s natural gas and electricity prices could rise even further, considering that gas levels in inventories are at a ten-year low—and not filling fast enough—just ahead of the winter heating season that begins next month.

https://oilprice.com/

Oil Slips

Prospect Of Rising OPEC+ Supply

Oil prices dropped early on Thursday as the market assesses the prospect of higher crude supply from the OPEC+ group after a reported compromise between key OPEC members Saudi Arabia and the United Arab Emirates (UAE). As of 11:21 a.m. EDT on Thursday, WTI Crude prices were down by 0.53 percent at $72.78 and Brent Crude was falling by 0.56 percent at $74.37.

Oil prices extended losses from Wednesday, when the market fell sharply after reports emerged that Saudi Arabia and the UAE had resolved their nearly two-week-long standoff over baseline production levels that was blocking a unanimous OPEC+ deal on oil supply. Under the compromise, the UAE will see its baseline production level lifted to 3.65 million barrels per day (bpd) after the current pact expires in April 2022, according to a Reuters source. The current baseline for the UAE is around 3.17 million bpd.

https://oilprice.com/

Big Data and economic theory

The Success of Monitoring the Economy With Big Data Co-authored by Alex Verkhivker, Graduate Student at the UCLA Anderson School of Management… http://newsviewsnreviews.com/ — Tue, 17 Mar 2015 06:23:41 -0700