Tag: heatwaves

Best in Energy – 30 May 2023

China’s economic rebound has lost momentum (WSJ)

China’s dependence on fuel and fuel imports (Guardian)

China’s firms slash costs of silicon wafers (Bloomberg)

U.S./China strategic competition and risk reduction (FT)

Saudi Aramco’s contested equity valuation (Bloomberg)

Saudi Arabia becomes major diesel trading hub (Reuters)

UAE chairmanship of climate conference criticised (FT)

India’s new refineries may be smaller in future (Reuters)

Vietnam cuts street lighting to conserve power (Reuters)

HEDGE FUNDS and other money managers increased short positions in NYMEX WTI by +10 million barrels to 72 million barrels over the seven days ending on May 23. Bearish short positions had increased by a total of +50 million barrels over the five weeks since April 18:

U.S. OIL AND GAS drilling activity continued to slow in response to the fall in prices since the middle of 2022. The number of active rigs fell by -9 over the seven days ending on May 26 and has dropped by a total of -73 (-9%) since the start of December 2022:

Best in Energy – 26 May 2023

Nickel trade flows transformed after price spikes (Reuters)¹

Maritime services firms end contracts with Gatik (Reuters)

U.S. shale slows research and development spend (Reuters)

China puts first commercial airframe into service (Reuters)

India’s coal generation and changing climate (Bloomberg)

Semiconductor firms push back against U.S. controls (WSJ)

U.S./China semiconductor security controls broaden (WSJ)

Norway’s complicated policy on oil and gas emissions (FT)

¹ Spiking commodity prices usually encourage changes in behaviour and innovation that have long-term impacts on production and consumption. In nickel’s case the surge in prices to more than $50,000 per tonne in 2007 has encouraged a long-term shift from cathodes and other highly refined forms of nickel to nickel pig iron (NPI) and other forms of lower-quality metal. At the time, many observers predicted users would never switch wholesale to NPI because of its quality issues. But businesses and markets are good at innovating around bottlenecks if the price incentive is strong enough.

EUROPE’s gas storage reached two-thirds full on May 24, the second earliest date in the last 13 years, and 57 days earlier than the average since 2011:

EUROPE’s gas prices are slumping to encourage more consumption by power generators and industrial users and slow the accumulation of inventories. Front-month futures have fallen to €25 per megawatt-hour down from €77 at the start of 2023 and a peak of almost €340 in August 2022:

Best in Energy – 2 May 2023

Australia interest rate rise surprise (Reuters)

U.S. ethanol blend waiver reissued (Reuters)

China coal consumption set to rise (Reuters)

U.S. fuel use slips amid freight recession (FT)

India predicts heatwaves in May (Bloomberg)

Iran executed high-placed British spy (NYT)

U.S./Iran seized each other’s oil tankers (FT)

U.S. South’s low winter gas depletion (EIA)

Wind farm construction costs (Energy Monitor)

Nickel market moves into big surplus (Reuters)

New York to limit gas connections (Utility Dive)

CHINA’s manufacturers unexpectedly reported a fall in business activity in April after rapid growth in March and February. The purchasing managers’ index slumped to 49.2 (6th percentile for all months since 2011) down from 51.9 (92nd percentile) in March and 52.6 (96th percentile) in February. The surge in activity after the end of coronavirus controls and the passing of the exit wave appeared to have run out of momentum, at least temporarily:

U.S. GAS inventories rose by +79 billion cubic feet over the seven days to April 21. Inventories have tracked much higher than usual so far in 2023 and were at the highest level for the time of year since 2020 and before that 2017. Stocks were +280 billion cubic feet (+16% or +0.61 standard deviations) above the prior ten-year seasonal average up from a deficit of -261 billion cubic feet (-8% or -0.98 standard deviations) at the start of 2023: