Daily Energy Report
India oil exports decline, Paris parking rates increase on SUVs, Aramco OSP Korean EV sales, India/Russia oil trade, Shell/Nigeria gas, US solar boom, Greek ship owners & Russia, and more.
Chart of the Day: Major Decline in India’s Exports of Petroleum Products to Europe
Figure (1) above shows India’s exports of petroleum products to Europe. Exports declined substantially in recent weeks and coincided with the decline in shipping through the Red Sea after attacks by Houthis on ships and tankers and the subsequent retaliation by the US.
EOA’s Main Takeaway
We are seeing a major decline in exports in products and crude from several countries through the Red Sea in both directions. Exports from Iraq to Europe have declined. Exports from the US and Kazakhstan to Asia have declined. Petroleum product exports from India and China to Europe have also declined.
While no one can deny the impact of the problems in the Gulf of Aden on shipping in the Red Sea, which raised shipping costs, other factors are also in play. Look back to the chart above. India’s exports declined to near zero at the same of time last year. Some units at some refineries are offline because of maintenance, including Reliance’s Jamnagar refinery. The decline in imports of crude from Russia means the ability to get cheap crude has evaporated and hence exports of petroleum products have declined.
In addition, global oil demand usually declines in the first quarter. The amount of decline in oil exports to Europe from around the world suggests a decline in demand. To conclude, the decline in exports to Europe from India and other countries is not only related to the higher cost of shipping because of the problems in the Red Sea, other problems exist such as maintenance and lower demand. Pricing might be in play too. For example, Algeria’s exports to Asia jumped while they declined to Europe!
Story of the Day
Parisians have voted to significantly increase parking fees for SUVs to address air pollution and target wealthier drivers of larger vehicles. With a 54.6% majority in a referendum, the city will impose higher parking costs starting in September, at €18 per hour in central Paris and €12 elsewhere for heavier vehicles. The policy targets combustion engine or hybrid vehicles over 1.6 tons, and EVs over 2 tons. Turnout for the election was less than six percent of the population.
EOA’s Main Takeaway
It remains to be seen whether this was a socialist vote against the rich or climate pundits against SUVs. But two issues are clear:
1- The turnout was extremely low. Making the percentage of those who voted to triple the cost of parking only 3% of total Parisians who are eligible to vote. (Nearly half of the people who bothered to vote didn’t want the higher parking fees.)