Daily Energy Report

China EV subsidies, Russia’s OPEC+ quota, Russian ships targeted more, EU refiners, Mexico crude stagnant, US power spike, Dirty wind, Russian payment issues, and more.

Important News:

The Chinese government has raised subsidies to boost trade-in of old internal combustion engine (ICE) vehicles with new energy vehicles (NEV).

China Doubles Cash Subsidies to Propel EV Sales as Economic Growth Falls Short

Chart of the Day: The Relationship Between Days of Cover and Oil Prices

Summary

Figure (1) shows commercial oil stocks cover forward consumption in OECD countries vs Brent spot prices. Days of cover are a proxy for the balance of supply and demand. While the strong inverse relationship is expected, it is stronger than what people expect. 

EOA’s Main Takeaway