Daily Energy Report
Spain’s dependence on Russian gas, oil demand in second half of 2023, Russian crude exports, Iraq’s northern crude flows, Exxon’s lithium plans, and more
CHART OF THE DAY: Spain’s Dependence on Russian LNG
Figure (1) above shows a notable increase in Spain’s LNG imports from Russia by 147% YoY for the first 4 months of the year. Data shows that the increase was 33% in April MoM alone! Spain’s LNG imports in April jumped to 480,000 tons from 360,000 tons in March.
This sharp percentage increase follows the Spanish government’s declared objective to LOWER LNG imports from Russia.
EOA’s Main Takeaway:
It is not over yet. Europe will need Russian gas supplies next winter especially if the continent ended up with an extreme winter season. As we explained to readers in previous reports, the situation could worsen if a severe hurricane season hit the Gulf of Mexico since this will likely delay US LNG shipments to Europe.
STORY OF THE DAY
Citing speakers at the Middle East Petroleum and Gas Conference in Dubai, S&P Global said that UAE oil exports to Europe are forecast to rise in the next months, amid a drop in Russian crude oil flows to the continent.
Thomas Waymel, president of trading & shipping at TotalEnergies, was cited as saying that UAE shipments to Europe "could triple to more than 300,000 b/d in July, from an average of about 100,000 b/d in the first quarter."
"One of the main reasons that can help this growth more export is, in our opinion at least, Abu Dhabi's choice for market price mechanism for the sale of its crude oil," Waymel was quoted as saying.