Best in Energy – 2 December 2022

Japan explores strategic LNG reserve ($BBG)

U.S./Russia signal readiness for negotiations

U.S. DOE wants to halt SPR sales ($BBG)

Energy prices spur interest in efficiency

U.S. ethanol blending rate at record high

U.S. refiners set to buy Venezuelan crude

Cybersecurity and the internet of things

NORTHERN EUROPE is forecast to experience colder-than normal temperatures through the first half of December, which will boost gas and electricity consumption. The European Centre for Medium-Range Weather Forecasting is predicting colder-than-average seasonal temperatures for the weeks from December 5 to 12 (first chart) and December 12 to 19 (second chart):

U.S. MANFACTURERS reported business activity started to decline last month, for the first time since the first wave of the pandemic. The ISM composite index slipped to 49.0 in November (22nd percentile for all months since 1980) from 50.2 in October (31st percentile) and 60.6 a year ago (96th percentile).

Manufacturing growth has decelerated progressively this year and activity now shows the first sign of falling in absolute terms. Firms signalled a further decline in new business last month. The new orders component slipped to just 47.2 in November from 49.2 in October and 61.4 a year ago. It is well-below the threshold dividing expanding activity from a contraction – implying activity is likely to slow further over the next few months:

Published by

John Kemp

Energy analyst, public policy specialist, amateur historian