Tag: Poland

Best in Energy – 14 September 2022

EU plans significant energy market overhaul

China set for turnover in economic officials

Poland to freeze household electricity prices

Equinor completes rapid sale of Russia assets

U.S. households’ real incomes are flat ($WSJ)

U.S. power generators’ carbon intensity falls

Expert interpretation of the Soviet Union

U.S. INTEREST RATE traders expect the central bank to boost its target federal funds rate to 4.25-4.50% by April 2023 up from 2.25-2.50% at present as officials try to bring inflation back towards their long term target. Inflation has proved faster and more persistent than anticipated implying higher interest rates and a greater probability of a hard-landing for the economy:

U.S. SERVICES prices increased at an annualised rate of +7.7% in the three months to August. Services inflation is a proxy for underlying price pressures in the economy because services account for more than 60% of consumer spending and are labour-intensive rather than energy or commodity-intensive. Service sector inflation has decelerated from a peak of +9.9% in the three months to June but remains more than three times faster than the central bank’s long-term target of a little over 2% per year:

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Best in Energy – 28 April 2022

India cuts electricity to industrial users

EU importers to pay for gas in roubles ($FT)

China’s major problem with vaccines ($BBG)

Poland/Bulgaria alternatives to Russian gas

Automakers revert to vertical integration

China’s passenger rail traffic down (trans.)

U.S. gas production areas

INDIA’s electricity consumption climbed to a record of more than 201,000 megawatts at the peak on April 26. But grid stability is deteriorating with average frequency trending lower and prolonged under-frequency excursions pointing to insufficient generation. Frequency is now so low for so much of the day controllers no longer appear to be trying to maintain it close to 50.0 Hz and have instead accepted a lower frequency as normal. States have begun to restrict supplies to industrial users during peak hours to maintain stability and reduce the risk of a cascading failure:

U.S. PETROLEUM inventories fell by -2 million bbl to 1,697 million bbl last week and are now down by -421 million bbl since the start of July 2020:

U.S. DISTILLATE inventories fell -1 million bbl to just 107 million bbl last week, the lowest seasonal level since 2008:

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Best in Energy – 27 April 2022

Russia halts gas deliveries to Poland and Bulgaria

Germany says gas transit unaffected by dispute

Germany plans to seize Russian-owned refinery

Italy explores Russian-owned refinery seizure

EU remains reliant on Russian diesel imports

Britain plans to extend coal-fired generation

India plans to boost coal imports through 2025

China to boost infrastructure spending ($BBG)

China plans major infrastructure boost (trans.)*

Narratives about inflation and recession as epidemic

World Bank warns over energy and food prices shock

Indonesia needs Russian oil to keep prices down ($FT)

* The announcement was anodyne but significant the policy meeting was chaired by the president himself and the write up is the top item across all state-controlled media and government websites (Xinhua, NDRC and State Council) emphasising importance of the investment message and signal.  

BRITAIN plans to extend coal-fired power generation at Drax to cope with gas and electricity shortages, according to the operator:

EUROPE’s gas traders were sanguine about the ability to replenish storage over the next few months ahead of next winter’s heating season, at least before Gazprom announced it would cut deliveries to Poland and Bulgaria. Benchmark futures for summer 2022 and winter 2022/23 gas have been high but stable for more than a month and the backwardation has remained narrow and also stable, indicating that most traders expected a regular storage fill:

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