Best in Energy – 16 November 2022

India’s refiners prepare for price cap from early December

China’s refiners request state aid on Russian crude ($BBG)

Europe’s energy crisis and supply security lessons ($BBG)

U.K. households and the increase in energy debts ($BBG) ¹

California ports report drop in container volumes ($WSJ)

Freeport LNG – root cause report on explosion

¹ Food and energy shortages have always been about prices and affordability rather than physical supplies and availability. Higher-income and wealthier households will always find ways to put food on the table and heat their homes, it is lower-income and poorer households that lack financial resources that are unable to cope and hit hardest (“Corn supply of ancient Rome”, Rickman, 1980).

SOUTHERN CALIFORNIA’s ports are experiencing a sharp drop in container traffic reflecting contentious labour negotiations and the threat of a strike as well as the slowdown in global merchandise trade and efforts by U.S. manufacturers and distributors to cut excess inventories. Combined container traffic through the neighbouring ports of Los Angeles and Long Beach was just 0.84 million twenty-foot equivalent units (TEUs) in October, down from 1.07 million TEUs in the same month in 2021, and the lowest for the time of year since the recession of 2009:

Best in Energy – 12 April 2022

Retail gasoline prices: rockets and feathers

EU’s proposed carbon tariff moves forward

U.S./India talks about Russia oil

OPEC warns EU about oil shock

U.S. households’ energy security

BRENT spot prices and especially calendar spreads have softened significantly and are now trading at or below levels prevailing immediately before Russia’s invasion of Ukraine. China’s coronavirus outbreaks and lockdowns, signs of a business cycle slowdown in Europe and North America, and the massive offer of 240 million barrels from strategic stocks by the United States and its allies have all weighed on futures near to expiry:

BRENT futures for delivery in July 2022 – the impact of the business cycle and epidemic waves on oil prices:

U.S. GASOLINE and diesel prices at the pump are still elevated despite the reduction in crude futures prices as fuel inventories remain low:

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