Chart of the week – Gas supplies from the Russian pipeline have fallen to their lowest level in recent years, with Gazprom’s sales in non-CIS countries falling to an average of 307 mcm / day, as the Russian company claims that EU sanctions are interfering with scheduled maintenance. – While Gazprom blames supply shortages on Siemens’ intransigence, European governments see the drop in volume as a way for Russia to avenge its recent oil and coal sanctions on Moscow. – Most of Gazprom’s European buyers reported lower gas supplies, with deliveries to Uniper and ENI about half of their bids last week, rekindling fears that the summer supply period could be jeopardized. – TTF spot prices jumped around 40 euros per MWh over the past week, with the July 2022 contract now trading just below $ 40 per mmBtu, while pushing LNG prices in Asia. Mobile Market – German utility company RWE (FRA: RWE) has signaled its readiness to extend the life of its coal-fired power plants as Berlin reconsiders supply options, sending the company’s share up 5% weekly. The American oil company Chevron (NYSE: CVX) has signed a preliminary agreement with Egypt’s EGAS to investigate the shipment of natural gas produced in Israel’s offshore fields to Egypt for the processing and export of LNG. Appalachia-based gas company THQ Appalachia is reportedly considered for a sale that could reach $ 5 billion, with the company having a net output of 760 mcfd, mainly in West Virginia. Tuesday 21 June 2022 With fears of an impending market collapse easing somewhat earlier this week, the market began talking about China’s repeated reopening. This in turn continues to fuel expectations for strong summer demand, and while fears of an economic downturn in late 2022 persist, oil prices began to move marginally higher as ICE Brent hovered around $ 120 a barrel. Gas may now become the main focus of energy markets, with lower Russian supply in Europe, while Northeast Asian countries are seeing electricity demand soar amid intense heat. Germany is in recession if Russian gas stops. With Nord Stream 1 running at 40% capacity, industry groups have warned that Germany will fall into recession if Russian gas supplies are cut off altogether, leaving about 50 GWh of electricity exposed.
Ecuador declares superior violence amid protests. Ecuador’s state-owned oil company Petroecuador has declared a crackdown on crude oil production, transportation and trade across the country in a bid to quell protests by indigenous groups opposed to President Lasso’s policies. Biden will announce this week the decision on the taxation of gasoline. US President Joe Biden has said the decision to temporarily suspend the federal petrol tax will be made by the end of this week, adding that he wanted an explanation from the oil companies as to why they are not refining more oil. Europe is starting to receive Venezuela crude again. After the US State Department re-authorized the European companies ENI (NYSE: E) and Repsol (BME: REP) to continue to receive Venezuelan crude oil for unpaid PDVSA debt, the Italian company has already chartered two tankers to start deliveries . Demand for electricity in China reached record highs in the midst of heat. According to media reports, power consumption north of the Yangtze River has skyrocketed in the midst of heatwave in Henan, Jiangsu and Shandong provinces, which have been exacerbated by drought conditions. Petrobras CEO resigns amid unexpected tax discussions. Jose Mauro Coelho, CEO of state-owned Brazilian oil company Petrobras (NYSE: PBR), resigned this Monday as political pressure began to mount on top executives following another fuel price hike last week. The UK Windfall Tax is seeing the first negative effects. Just weeks after the UK government imposed an unexpected tax on oil and gas companies, it was reported that Equinor (NYSE: EQNR) was considering abandoning its $ 4.5 billion investment in the Rosebank offshore area. Curacao could help alleviate US refinery leaks. A consortium of seven companies comprising six unnamed US companies is in advanced talks to restart the Curacao 330,000 b / d refinery in Isla, which went dormant in 2018 amid a payment dispute between PDVSA and ConocoPhillips. Hydrogen is very inefficient for heating. A total of 18 independent studies (including IPCC, IEA and McKinsey) conducted in 2019 found that using hydrogen for heating would be very costly and inefficient, losing heat pumps that can also provide air conditioning. Libya unexpectedly revises production forecasts. The Libyan Ministry of Oil has drastically revised its estimate for crude production for 2022, saying production currently stands at 700,000 b / d (instead of the 100,000 b / d reported last week) and that both El Sharara fields and Sarir is reportedly online again. Bolivia is delaying its lithium decision until December. The Bolivian government has said it will make the final decision on possible lithium mining commitments with pre-selected private partners only by December, six months behind schedule, without seeing any commercial production despite having the world’s second-largest reserves. Iron ore is facing long-term problems in China. Iron ore prices have recently been trapped between a rock and a hard point, with Chinese benchmarks falling to $ 120 / mt as short-term demand is jeopardized by ongoing lockdowns, while long-term profitability may be affected by its desire. China has a bigger say in world prices. In the footsteps of oil, India is increasing the Russian coal market. Coinciding with rising Russian oil purchases from India, coal imports from Russia have tripled from year to year so far this month, with coal traders offering 25-30% off Newcastle reference price in Asia. . By Tom Kool for Oilprice.com More top readings from Oilprice.com: