Daily Energy Report
EU’s dependence on Russian gas, Oil market tightens, Russia pivot to LNG, Egypt buys LNG, India refining & politics, Mining threat to Gorillas, China excess capacity, Bad climate science, and more.
Chart of the Day: The EU Remains Dependent on Russian Gas!
Summary
Figure (1) above shows the EU’s gas imports by source in March. LNG imports accounted for 39.8% of the EU’s total gas imports, while piped gas accounted for the remaining share of 60.2%. Norway supplied 33.3%, while US LNG accounted for 19.9%. Russia (including its LNG) has retained a share of 18.4%, surpassing Algeria (piped gas and LNG) which supplied 15.8%.
EOA’s Main Takeaway
Some European movements want the EU to stop LNG imports from Russia while calling on Ukraine to renew the contract with Gazprom at the end of this year that enables Gazprom to export gas to Ukraine and Europe. The question is, how will they replace about 19% of their total imports? In fact, Europe got lucky again with another mild winter and no disruptions in gas supplies, leading to low gas prices. The re-routing of some LNG shipments away from the Red Sea and around Cape Good Hope had little effect on prices. The situation would have been different if demand for gas in Europe was strong. What will happen when severe hurricanes hit the Gulf of Mexico and a severe winter hits Europe (both are overdue)?
While such calls are premature, one thing is clear: Europe is not out of the woods yet, even though the winter season ended with gas storage at a record high.
Story of the Day
For the Story of the Day, we decided to post these two news items without any comments. Yes, we are speechless!
Iran’s Oil Exports Sail to Record Post-Sanctions Q1 as Second Panama-Flagged Tanker Exodus Underway
US has Not Asked India to Cut Russian Oil Purchases, says American Officials
News of the Day
Bloomberg: Oil Producers Turn the Screws as Market Tightens
Summary
Oil producers did not consider increasing production at their recent meeting. With prices reaching six-month highs and gasoline prices rising in Europe and North America, Brent crude is nearing $90 a barrel. OPEC+ has reduced output targets by 3.8 mb/d over the last year, with further reductions expected as Russia moves to tighten production. The continuation of the current supply quota could push oil prices beyond $100 a barrel.