Best in Energy – 30 June 2022

Uniper appeals for state support as gas crisis worsens

India/Russia/China trilateral trade of cement for yuan

Energy conservation as response to Ukraine war ($FP)

Tokyo scrapes through heatwave and power shortage

Vietnam to cut gasoline import tariffs to limit inflation

U.S. central bank refocuses on inflation control ($WSJ)

U.S. refinery capacity fell in both 2020 and 2021

CHINA’s manufacturers reported a slight increase in business activity this month after lockdowns drove a contraction in April and May but it was not very widespread. The purchasing managers’ index rose to 50.2 in June (31st percentile for all months since 2011) up from 49.6 in May (10th percentile) but it was still down from 50.9 in June 2021 (59th percentile):

U.S. PETROLEUM INVENTORIES including the strategic petroleum reserve fell -1 million bbl to 1,679 million bbl last week. Inventories have declined in 77 of the last 102 weeks by a total of -439 million bbl since the start of July 2020. Stocks are now at the lowest level since October 2008:

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Best in Energy – 22 June 2022

U.K. energy supplier failure has cost £2.7bn

India urges refiners to buy Russia oil ($WSJ)

China’s northern heatwave and southern floods

OPEC’s spare capacity decision ($BBG)

Thailand reduces LNG imports ($BBG)

Xilodu hydropower station (trans.)*

Xiangjiaba hydropower station (trans.)*

* The Xilodu (13.9 GW) and Xiangjiaba (7.8 GW) mega-dams on the Jinsha River between the provinces of Sichuan and Yunnan have almost as much combined generation capacity as the much more internationally famous Three Gorges hydropower station (22.5 GW). Hydro generation on the Jinsha plays a critical role in power supply for the southern export manufacturing hub around the Pearl River delta (including Guangzhou, Shenzhen and Hong Kong) as well long-distance power transmission to Shanghai. Southern rainfall and reservoir levels are therefore critical for electricity availability and the region’s demand for coal from the north.

EU28 GAS INVENTORIES increased by an average of +5.6 TWh per day over the seven days ending on June 20, decelerating from more than 7.4 TWh per day in the middle of May. But storage has filled at a record rate this year and the pace of injection was clearly unsustainable; some slowdown in the rate of injection was therefore anticipated. Inventories are +35 TWh (+6% or 0.25 standard deviations) above the ten-year seasonal average. The impact of Russia’s supply reductions to Europe cannot (yet) be identified in the data:

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Best in Energy – 16 May 2022

China’s coal output rises sharply in Jan-Apr

China utilities to rebuild coal stocks ($BBG)

U.K. gasoline and diesel sales start to fall

EU hurries to rebuild depleted gas inventories

EU explores emergency price cap on gas ($BBG)

Climate pressure tempered by energy security

EU/Ukraine steel trade disrupted by war ($FT)

Texas grid appeals for electricity conservation

South Africa increases load-shedding blackouts

EU backs down on rouble gas payments ($BBG)

Remote workers balk at return to office ($WSJ)

CHINA’s coal production climbed by almost +12% in the first four months of the year compared with the same period in 2021, as the government ordered miners to maximise output to reduce the risk of electricity shortages and cut dependence on imports from Australia:

U.S. TRANSPORTATION SERVICES (freight, post and passengers) prices increased at an annualised rate of almost +47% in the three months from January to April – as the supply chain remained under pressure and fuel costs surged after Russia’s invasion of Ukraine and sanctions imposed in response:

U.S. CONSUMER SENTIMENT has weakened sharply this month and has fallen to levels consistent with a recession in the past:

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