Tom Whipple and Steve Andrews, Editors
Quotes of the Week
Limited global LNG supplies could be “really, really tight this winter.”
— Corey Grindal, Cheniere Energy’s executive vice president
“Russia may face a longer and deeper recession as the impact of US and European sanctions spreads, handicapping sectors that the country has relied on for years to power its economy, according to an internal report prepared for the government.
“…Two of the three scenarios in the report show the contraction accelerating next year, with the economy returning to the prewar level only at the end of the decade or later. The “inertial” one sees the economy bottoming out next year 8.3% below the 2021 level, while the “stress” scenario puts the low in 2024 at 11.9% under last year’s level.
— Bloomberg News
Stats of the Week
Energy bills for European households will surge by 2 trillion euros ($2 trillion) at their peak early next year, underscoring the need for government intervention, according to Goldman Sachs Group Inc. utilities analysts.
— Allegra Catelli, Bloomberg News
The shortage of distillate fuel oils is worldwide with stocks at their lowest level for more than a decade in Europe and Asia. [US] stocks are…at the lowest level for the time of year since 1996… Europe’s distillate inventories are… at the lowest seasonal level since 2002. Only a global slowdown in manufacturing and freight transportation will rebuild stocks to more comfortable levels and abate the upward pressure on refinery margins and oil prices.
— John Kemp, Reuters
Graphics of the Week
Headlines for the week of Sept 5 – Sept 12
Russia evacuates occupied area as Ukraine presses offensive in East
Germany and Europe set for energy rationing after Russian gas cuts
Macron: France, Germany to provide each other with gas, electricity, to weather crisis
The oil giant planning to make Russian gas irrelevant by 2025
Cost of Truss energy relief plan may top $200 billion, analyst says
UK shale gas developers eager to resume work after fracking ban lifted
UK puts a cap on household energy bills
U.S. gasoline prices to keep falling as refiners keep making other products
Short-Term Energy Outlook
LNG could be “really, really tight” this winter: Cheniere
Column: U.S. diesel stocks critically low after failing to recover over summer: Kemp
Column: China’s August coal and copper imports not as strong as they look: Russell
China’s ‘Zero Covid’ bind: no easy way out despite the cost –
China’s annual oil demand could drop for the first time In 20 years
The Global Economy