Tom Whipple and Steve Andrews, Editors

Quotes of the Week

“Pivoting exports to Asia will take time and massive infrastructure investments that in the medium term will see Russia’s production and revenues drop precipitously. The situation will be aggravated by a lack of investments and foreign technologies, which will lead to lower drilling activity. Russia is, as a result, not expected to return to pre-conflict production levels even by 2026.”-Daria Melnik, senior analyst at Rystad Energy

“[Diesel] fuel is a lot higher now, adding about $150 to the cost of a trip from Louisiana to Georgia. But I’ve got to come back home, so if I make two round trips in a week, that’s $600 extra a week for fuel, and that means $2,400 a month. That’s a monthly truck payment, so it’s like paying for a whole extra truck.”-Rodney Morine, an independent trucker based in Opelousas, La.

Graphics of the Week

Headlines for the week of  May 9-13

The Global Energy Situation

IEA: lower demand changes everything for oil markets

Russia

Russia cuts gas supply to seized German Gazprom unit
Novak: Russia’s crude production up in May
Russia’s oil revenue is up 50% this year despite the boycott, IEA says

Europe

European gas prices soar after Moscow imposes sanctions on EU energy companies
EU drops plans to ban the shipping of Russian crude in face of opposition
EU readies 195 billion euro plan to quit Russian fossil fuels
Germany prepares crisis plan for an abrupt end to Russian gas – sources
The EU has a major problem with securing non-Russian gas
Historic price spikes, though down from March peaks, lead to record LNG imports into Europe
How Germany’s LNG terminals will morph into green hydrogen hubs

North America

U.S. retail gasoline prices hit new record–$4.38—as refiners struggle to meet demand
U.S. natural gas prices passed the $8 mark, get caught up in perfect storm
Soaring costs set to hurt U.S. shale production
US crude output growth expected to slow amid soaring costs
Biden scraps offshore oil auctions

China

China’s Iranian oil imports ease on poor margins, and the lure of Russian oil

Middle East

Saudi Aramco’s net profit soars 82% in Q1 on high oil prices
Iran says it can double oil exports if the market needs more barrels

The Global Economy

Global Covid-19 Summit upstaged by Ukraine war, inflation
Global stocks record longest weekly losing streak since the 2008 crisis
Dollar’s strength pushes world economy deeper into slowdown; Fed rate hikes hit global growth

Agriculture

Global wheat crop likely to fall for the first time in four years, US forecasts
Russia seizes more than 500,000 mt of grain from Ukraine: ministry
Russia talks of record wheat crop while world mulls output fall
Global agriculture markets jittery on worsening food inflation outlook

Russia

Four Russian governors resign as sanctions bite
Traders prepare to ditch Moscow ruble rate as market split grows

U.S.

Rising diesel costs are straining U.S. truckers, shipping operations

China

China’s economic slowdown is rippling all around the world
Shanghai aims to reopen more COVID-shut businesses, Beijing battles on

Asia

Unvaccinated North Korea locks down after reporting first local Covid infection
North Korea’s Kim says COVID ‘great turmoil’, 21 new deaths reported

Africa

Unvaccinated North Korea locks down after reporting first local Covid infection
North Korea’s Kim says COVID ‘great turmoil’, 21 new deaths reported

India

India buyers grab discounted Russia LNG shunned by rest of world
Indian Railways missed Coal India train provision targets for over a year- data shows
Production and logistical concerns cast a shadow over India’s wheat export potential
India bans wheat exports in a growing wave of food protectionism

Latin America

Panama Canal Authority suspends Neopanamax locks 49.5-foot draft restriction

Global Warming

Record wildfires threaten to wreak $200 billion in global damage

U.S.

Southwest US hydro outlook remains below normal, with snowmelt well underway
California’s water use soars despite pleas for conservation; highest March usage since 2015
Midsummer heat baking southern states with highs feeling like July
The temperature is the least surprising part of the Texas heatwave

Africa

The Horn of Africa ravaged by the worst drought in four decades

Asia

As record-setting heat blasts Pakistan, a glacial lake floods village