Tom Whipple and Steve Andrews, Editors
Quotes of the Week
“The world faces a much bigger energy crisis than the one of the 1970s… Back then it was just about oil. Now we have an oil crisis, a gas crisis, and an electricity crisis simultaneously.”-Fatih Birol, Executive Director of the International Energy Agency
“The European Union’s decision to cut 90% of its oil imports from Russia will accelerate a move already underway – that is, Moscow trying to sell as much crude as it can to Asian buyers. Russia is likely to find China and India particularly willing, as the former reopens much of its economy from strict zero-COVID lockdowns and the latter seeks to lower its sky-high energy import bill.”-Clyde Russell, Reuters“
The focus on shareholder returns is also unlikely to change anytime soon. Oil and gas might be raking in the cash because of high oil prices, but overall, it remains a pariah industry for many as the energy transition’s momentum accelerates amid the struggle to regain some energy security when a sizeable chunk of the world’s global oil supply is being targeted by sanctions. What this means is that U.S. shale, like OPEC, is not riding to the rescue. U.S. shale has its own priorities.”-Irina Slav, oilprice.com
Graphic of the Week
Headlines for the week of May 30 – June 6
The Global Energy Situation
Oil set for sixth weekly gain as Opec+ supply boost disappoints
Global refiners falter in efforts to keep up with demand
US East Coast fuel crisis deepens ahead of peak season
Russia
EU’s phased-in oil embargo allows Russia time to adjust, say, analysts, sources
Insurance is the real weapon in Europe’s Russian oil embargo
EU’s Russian ships insurance ban to distort commodities trade: sources
Kazakhstan renames its export oil to avoid Russia’s sanctions risk
Ukraine power operator says Russian missile flew “critically low” over nuclear plant
EU leaders back push to ban most Russian oil over Putin’s War
EU ban on Russian crude to exacerbate disruptions to global flows
Factbox: How much oil does the European Union import from Russia?
North America
There’s no immediate cure for sky-high gasoline prices
Why U.S. shale firms aren’t likely to change their growth plans
NYMEX natural gas futures tumble amid bearish weather, production data
New York suspends the gas tax for six months as pump prices soar
U.S. EPA sets 2020-2022 biofuel blending mandates, denies refiners waivers
China
Electric vehicles accelerate China’s looming dominance as a car exporter
Middle East
Opec agrees to accelerate oil production following US pressure
Divided again, Libya slides back toward violence, chaos
OPEC’s nod to Biden will help Saudis, not oil users
South America
Guyana’s deeper waters leading to new attractive oil findings, Hess says
Africa
Shortage of oil refineries haunts Africa as fuel prices rocket
Nigeria finance minister: low oil output barely enough to cover petrol imports
Africa: Anglo-Swiss firm Glencore pleads guilty to massive bribery in Africa
India
Indian private refiners’ profit from cheap Russian crude as state refiners suffer
The Global Economy
Rising energy prices could tip the world into a 1980s-style recession
IEA: the current energy crisis is “much bigger” than the 1970s oil crunch
Agriculture
War in Ukraine adds to food price hikes, hunger in Africa
Ukraine warns that only lifting Black Sea blockade can avert the global food crisis
U.S. wheat crop hit by dry winter then soggy spring, adding to global tightness
Poland races to help Ukraine export looming wheat harvest
Russia
Russia economy lurched into contraction in April amid sanctions
Teetering on default, Russia misses $1.9 mln payment, the committee determines
U.S.
Corporate America turns up volume on warnings about economy
As Shanghai reopens, California ports prepare for cargo surge
U.S. Midwest in danger of rotating power blackouts this summer
Europe
Eurozone inflation hits record 8.1 percent
Banks warn of grim prospects for pound as economy slows
French industrial production unexpectedly fell in April
Ukraine signs deal with Westinghouse to end Russian nuclear fuel needs
China
China’s economic downturn shows signs of easing
After two months, a scarred Shanghai’s COVID-19 lockdown ends
China’s slowdown poses credibility test for economic data
China’s exports suffer reversal of fortune as world shakes off Covid lockdowns
Beijing chafes at Moscow’s requests for support, Chinese officials say
Asia
N.Korea mobilizes army, steps up tracing amid COVID wave
North Korea receives aid from China as covid outbreak spreads
Japan nuclear regulator grants initial nod to Fukushima water release plan
Sri Lanka can’t find cash to pay even one ship for petrol
Pakistan’s forex reserves dip below $10 billion as IMF loan uncertain
Sri Lanka inflation jumps close to 40% as shortages persist
India
India plans to phase down at least 81 coal-fired utilities in 4 years – document
COVID news: Biggest jump in cases in almost three months
Middle East
Biden to travel to Saudi Arabia, ending its ‘pariah’ status
Israel warns it will use “right to self-defense” to keep nukes out of Iran
‘Enemies’ triggering unrest in Iran to overthrow Islamic Republic -Khamenei
Global Warming
North America
