Daily Energy Report
EU oil demand is declining, Russia to boost LNG, Panama Canal update, Indonesian coal, US grid issues, Russia export ban, Germany subsidizes power, High cost of EVs, and more.
Story of the Day: EU Oil Demand is Declining
Summary
Figure (1) above shows trends in EU crude oil imports in the last five years. It shows that the EU’s oil imports have been declining recently to levels to close to that of 2020.
EOA’s Main Takeaways
Some European countries are suffering from recession or low economic growth, especially Germany, the largest economy in the EU. As a result, their oil consumption declined, leading to lower oil imports. This decline in oil consumption and imports is one of the reasons for the decline in oil prices recently.
Story of the Day
Reuters: Russian Fuel Export Ban to be Lifted Next Week
Summary
Russian fuel producers have been instructed to prepare for the removal of all export restrictions on diesel and gasoline. After initially banning fuel exports on September 21 to address domestic price hikes and shortages, the Russian government relaxed diesel export restrictions on October 6 while maintaining the ban on gasoline exports. However, indications now suggest that these measures will be fully lifted next week.