Tag: Spain

Best in Energy – 27 October 2022

LNG stocks in floating storage off coast of Spain ¹

U.S. trucking firms report mixed demand ($BBG)

U.S. officials try to finalise Russia oil price cap

U.S. officials water down price cap plan ($BBG)

U.S. uranium indigenisation strategy  planned

U.S. uncompleted oil wells at lowest since 2013

¹ Floating storage is more expensive than storing on land. Storing LNG is especially expensive because it needs to be kept super-chilled. But the extreme contango in European futures for nearby delivery months has made relatively long duration floating storage commercially viable. As a result, Europe’s available inventories are even higher than shown in the daily storage reports from Gas Infrastructure Europe.

U.S. PETROLEUM INVENTORIES including the strategic reserve fell by -5 million bbl in the week to October 21. Stocks have depleted by a total of -491 million bbl since the start of July 2020 and are at the lowest seasonal level since 2004. Oil inventories are on an unsustainable trajectory. “If something cannot go on forever, it will stop,” according to the aphorism popularised by Herbert Stein, chief economic adviser to U.S. President Richard Nixon. Global production must grow faster. Consumption must grow more slowly. Or both:

Best in Energy – 18 October 2022

LNG cargoes stranded off Spain

EU backs away from gas price caps

China LNG buying to stay subdued

CHINA’s LNG imports have run significantly below prior-year rates every month so far in 2022. The country imported 40.9 million tonnes in the first eight months of the year compared with 52.5 million tonnes in the same period in 2021, leaving more cargoes for Europe and helping ensure the global shortage has not been even worse:

Best in Energy – 13 October 2022

Saudi Arabia responds to oil cut critics

OPEC trims oil consumption forecasts

Manchin attacks Saudi output cut

OPEC+ cuts risk recession says IEA

Spain to leave Energy Charter Treaty

NORTHWEST EUROPE has had an unusually early start to the winter heating season. Temperatures at Frankfurt-am-Main were consistently below the long-term average from the middle of September until early October, boosting gas and electricity consumption:

IF YOU would like to receive best in energy and my research notes every day, you can add your email to the circulation list here: https://eepurl.com/dxTcl1

Best in Energy – 30 March 2022

Germany issues early warning of possible gas rationing

Russia tells Europe to find roubles for export payments

Russia’s oil export system handles third-country crude

EU gas oil storage rates fall to record low as stocks drop

U.S. recession inevitable says former Fed official ($BBG)

Russia’s alternative domestic payments system ($WSJ)

U.S. consumers switch brands to offset inflation ($WSJ)

Spain’s inflation rate nears 10% ($BBG)

India’s coal inventories under pressure

CHINA’s Lower Yangtze mega-region, home to more than 225 million people, has experienced an exceptionally mild winter, especially since late February. Cumulative heating demand at Nanjing has been 14.5% below normal so far, implying large savings in gas, coal and electricity consumption, and limiting upward pressure on international LNG and coal prices:

To receive best in energy plus my research notes by email every day, you can add your email to the circulation list here: https://eepurl.com/dxTcl1