In this newsletter, we are going to take a prompt examine a number of the critical figures and data within the energy markets.
We will then study a number of the key market movers early on before providing you with the most recent analysis of the highest news events happening within the global energy complex over the past few days. We hope you enjoy.
- Spot gas prices in Europe have reached unprecedented levels on fears that sanctions against Russia, accounting for 40% of total imports, might leave the continent’s gas demand without supply.
- Europe’s benchmark spot contract, the Dutch TTF, hit an all-time high of €335 per MWh in intraday trading on Monday, reminiscent of $120 per mmBtu, before dropping back to $75/mmBtu, still twice as high as Asian spot prices.
- At the identical time, Germany has already indicated it'll not slap sanctions on Russia’s oil and gas, fearing that the repercussions of such a move would trigger wide ‘civil unrest’.
- Against the background of record gas prices, Gazprom (MCX:GAZP) has ramped up supplies to Europe, with March daily inflows averaging some 3000 GWh to date, up 30% compared to February.
Market Movers
- UK-based oil major Shell (LON:SHEL) apologized for getting Russian crude last week and pledged to withdraw completely from any involvement in Russian hydrocarbons.
- US oil and gas producers Oasis Petroleum (NASDAQ:OAS) and Whiting Petroleum (NYSE:WLL) announced they'll merge during a $6 billion deal including debt, leaving the new entity with prime Williston Basin acreage of just about a million net acres.
- Global commodities trader Trafigura raised a $1.2 billion charge account credit facility from a consortium of Japanese, French, and Italian banks to manage its increasingly distressed financial exposure.
As the Russia-Ukraine war continues to shatter whatever hopes remained of Europe’s post-pandemic economic recovery, Brent prices are already trading near $130 per barrel. Biden's announcement of a ban on Russian energy imports, including oil, coal, and LNG, has only added to the upward pressure in oil markets. While European powers have made it clear they're going to not ban Russian energy imports, European fossil fuel prices are at all-time highs, dragging coal along to unprecedented levels additionally. Moreover, with hopes of a fast Iranian deal cooling, there's no sign of relief for the present oil price rally.
The US Goes It Alone On Russian Energy Ban. in an exceedingly speech on Tuesday morning, President Biden confirmed that the u. s. would ban Russian energy imports. In his speech, Biden confirmed that its European allies won't be joining the U.S. during this measure thanks to their relative lack of energy security. Oil prices and gasoline prices both climbed on the news.
Russia Warns of $300 per Barrel Oil If Imports Slapped. Russia’s deputy prime minister Alexander Novak has warned that if the US and also the EU were to ban imports of oil from Russia, oil would move to $300 per barrel.
2021 Sees Record CO2 Emissions from Energy. in line with the International Energy Agency, global energy-related emissions rose to an all-time high of 36.3 billion ton in 2021, up 6% year-on-year, as exorbitant gas prices rekindled interest in coal burning.
Political Pressure Is Now on Iran and therefore the US. After Russia threatened to dam the Iranian deal on guarantees that its trade with Iran won't be subject to any constraints, the highest EU envoy Enrique Mora said that Teheran and Washington now need to make a political decision to act if they require to forestall the failure of talks.
Brazil Wants to pack Fuel Prices. even as Petrobras (NYSE:PBR) executives suggested Brazil would wish to lift transportation fuel prices amidst soaring crude prices globally, the Bolsonaro government is reportedly considering a fuel subsidy program that would potentially be funded by the Brazilian oil company’s dividends.
Japan Mulls Nuclear Restarts to Avoid Energy Crunch. Wary of ramifications impending the rear of Russia’s invasion of Ukraine, the japanese government is considering a quicker-than-anticipated re-licensing of idle nuclear reactors (more than 40 in total) that were finish off after the 2011 Fukushima disaster.
Palladium Prices Soar To Record Highs. Prices of palladium, a rare metal utilized in catalytic converters, 30% of which is mined in Russia, almost doubled over the past time period, touching a record high of $3,440 an oz. on Monday - with transportation from Russia essentially impossible, prices are expected to travel higher still.
India Wants to shop for Venezuelan Crude. Indian company ONGC Videsh confirmed that there are ongoing talks between India and also the US to permit the corporate to settle past debts worth some $420 million by trading Venezuelan oil cargoes.
Jet Fuel Surge Jeopardizes Fragile Flight Recovery. Surpassing the pace of even Brent’s rapid appreciation, jet fuel prices have soared to 14-year highs because the market struggles to stay up with demand, with Singapore jet prices hitting $150 per barrel.
Gold Nears All Time High On Russia Supply Chaos. Gold is climbing towards its all-time high as Russia's invasion of Ukraine continues to push investors towards safe-haven assets. While gold is now above $2000, assets do tend to drag back as they near their all-time highs as traders take profits.
Saudi Arabia Awards 1 GW in Solar Projects. Saudi Arabia awarded two solar projects with a capacity of 700MW and 300MW, respectively, signing 25-year power purchase agreements with Acwa Power and China’s Jinko Power.
LME Stops Nickel Trading Following Record Surge. The London Metal Exchange (LME) halted nickel trading after its benchmark three-month price surged some 60% on Monday and soared even higher today, fueled by fears of suspended Russian exports, trending around $100,000 per metric ton at the time of closure.
Best regards,
Yusuf Bhandarkar Mumbai 400008
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