fuel taxes – JKempEnergy.com

Best in Energy – 23 June 2022

Germany declares stage two gas emergency

U.S. presses EU to relax oil sanctions ($WSJ)

Biden requests three-month fuel tax holiday

Biden’s broken relations with oil and gas firms

Supply constraints trip up policymakers ($FT)

Batteries for grid storage – beyond lithium ion

EUROPEAN manufacturers are on the leading edge of a recession. Preliminary readings show the eurozone purchasing managers’ index has slipped to 52.0 (47th percentile) down from 54.6 (65th percentile) in May and a record 63.4 in the same month a year ago:

U.S. GASOLINE SUPPLIED averaged 8.86 million b/d in March 2022 compared with 9.18 million b/d in March 2019 (-328,000 b/d, -3.6%).

U.S DISTILLATE SUPPLIED averaged 4.16 million b/d in March compared with 4.18 million b/d in March 2019 (-23,000 b/d, -0.5%).

The differential recovery in distillate and gasoline consumption after the pandemic helps explain the relative shortage of diesel, as well as jet fuel, and why mid-distillate crack spreads and prices have been pulling the whole petroleum complex higher:

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Best in Energy – 23 May 2022

U.S. president ends strategic ambiguity on Taiwan

India cuts fuel taxes and boosts subsidies

Russia ends gas deliveries to Finland on pay dispute

Global refiners in dilemma whether to boost capacity

Electricity supplies are stretched worldwide ($BBG)

Saudi Arabia reiterates commitment to OPEC⁺ ($FT)

Fuel tax cuts are poor response to high prices ($BBG)

BRENT’s six-month calendar spread has increased to a backwardation of more than $13 per barrel, up from just $3 in early April, as traders anticipate planned EU sanctions on Russia’s petroleum exports will intensify the global shortage of crude oil and refined products:

U.S. RIG COUNT rose by +14 to 728 last week, with the addition of +13 rigs targeting oil-rich rock formations and +1 rig targeting predominantly gas-rich rock. The number of rigs drilling for oil has risen by +404 from its cyclical low in August 2020 but is still -107 below the pre-pandemic level:

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Best in Energy – 25 April 2022

China’s oil consumption tumbles ($BBG)

Russia’s crude oil production falls ($BBG)

Coal consumption hits new record ($BBG)

China oil and gas output rises rapidly ($BBG)

China’s growing domestic gas production

China only buyer for Russia divestments ($FT)

U.K. supermarkets limit cooking oil sales

Indonesia prohibits palm oil exports

Indonesia justifies palm oil export ban

Fuel tax cuts boost Russia’s oil revenues

Commodity currencies hit by global slowdown

Emerging markets fear reprise of 1994 tequila crisis

EU explores options for Russia oil embargo

India blackouts during hot weather ($BBG)

U.S. PETROLEUM inventories including the strategic petroleum reserve depleted by -13 million bbl to 1,699 million bbl in the week to April 15. There were large draws in crude (-13 million bbl) and distillate fuel oil (-3 million bbl) underscoring the continued shortage of oil in global markets and strong demand, for now, for middle distillates from manufacturers and freight firms:

INDIA’s electricity grid is struggling to meet demand as air conditioning and refrigeration loads climb with temperatures that have been well above the long-term seasonal average. Frequency remains well below the target of 50 Hz, with a control range of 49.90-50.05, for much of the day as there is insufficient generation. The situation seems to have stabilised since early April but is fragile with little or no spare capacity to absorb additional shocks or meet further demand:

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