Daily Energy Report
US still importing from Russia, China NEV sales, Hedge Funds skeptical of oil/OPEC+, OXY to buy CrownRock, Weak chemical demand, China’s electricity storage, COP28 crunch time, and more.
Chart of the Day: Despite Sanctions, the US Continued to Import Critical Materials from Russia
Figure (1) above shows the value of US total imports from Russia. It started increasing after the collapse of the USSR. It reached a peak in 2011, declined, increased, then plummeted after the sanctions on Russia after it invaded Ukraine.
EOA’s Main Takeaway
Despite the large decline in US imports from Russia after sanctions were imposed following the Russian invasion of Ukraine, the US is still importing about $275-$300 million worth of goods from Russia. The hypocrisy of the sanctions is fully exposed when looking at the resources being imported: nonferrous metals, fertilizers, and inorganic chemicals! The nonferrous metals are mostly uranium for US power plants!
Story of the Day
In November, China hit a new milestone with over 1 million new energy vehicle (NEV) sales and production, marking significant year-on-year growth. NEVs now represent 34.5% of China’s total vehicle sales. Despite the removal of subsidies, the NEV market is expected to exceed the 9 million units forecasted for 2023. The outlook for 2024 suggests electric passenger car sales could reach 11 million units, accounting for 40% of new vehicle sales, aided by falling lithium and battery costs.