EU/Russia oil embargo agreed in principle
(see also press statement from the EU)
EU/Russia oil ban on seaborne imports ($FT)
(see also background on negotiations ($FT))
Global refiners cannot keep up with demand
India boosts discounted oil imports from Russia
Greece advises tankers to avoid Iran waters ($FT)
Russia/Ukraine war focuses on rail system ($WSJ)
China plans big increase in wind and solar (trans.)
BRENT spot prices and calendar spreads have surged as traders anticipate EU sanctions on Russia’s exports will increase the shortage of oil. Both have returned to levels last seen in March in the immediate aftermath of Russia’s invasion of Ukraine. The six-month calendar spread is at a near-record backwardation of $16 per barrel, signalling inventories are expected to fall further in the rest of the year, leaving the market critically tight:
BRENT’s inter-month spreads for the rest of 2022 and 2023 have moved into an increasingly large backwardation over the last two months as the prospect of EU sanctions is expected to tighten the market and leave it short of both crude and fuels:
CHINA’s manufacturers reported a continued contraction in business activity in May but the downturn was less widespread than in April. The official purchasing managers’ index increased to 49.6 (10th percentile) up from 47.4 (1st percentile) the previous month:
CHINA’shydro-electric generation increased to a record 313 TWh in the first four months of the year, surpassing the previous peak of 299 TWh in 2019, and sharply reducing coal consumption:
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