Daily Energy Report
Gasoline demand in 50 countries, Moscow’s problems with payments in non-dollar currencies for its oil, Vietnam’s rare earths output, coal use in Asia, power supply in Texas this summer, and more
CHART OF THE DAY: Average Gasoline Demand in 50 Countries at this Time of the Year Hits Record High
Figure (1) above shows trends in gasoline demand in 50 countries, based on data from JODI, the International Energy Forum (IEF), and estimates calculated by the EOA for the missing data of 10 countries for the month of February. Since the IEF sample covers only 40 countries, we estimated the demand of 10 countries in February to get a sample of 50—and our results were in line with those of the IEF. It is also worth noting that the numbers in the chart above are the average for the 50 countries, or the net increases and decreases.
The figure shows that gasoline demand is at a record high for this time of the year. The recovery has been registered in China, the US, the UK, Germany, Spain, the Netherlands, and France. But the increases have so far originated from countries like India, Indonesia, and the Philippines.
EOA’ Main Takeaway
Let us start with the shocking news first: despite the massive increase in sales of electric vehicles in Norway, gasoline demand increased by 2.1% YoY in February! This increase in gasoline consumption, as shown in the chart, is significant given all the talk about electric vehicles, and a recession. It remains to be seen how this trend will evolve toward the end of 2023.
Although the difference is relatively small between the data for 2023 and 2022, we cannot assume that this is the case globally, since countries like Russia and Ukraine, which are at war, are not included in the sample.
STORY OF THE DAY
ORISSA POST: Pakistan likely to pay for Russian crude in Chinese currency
BLOOMBERG: Russia Says It Has Billions of Indian Rupees That It Can’t Use
Pakistan is expected to receive its first test oil cargo from Russia next month, and the country will most likely pay for the shipment in Chinese yuan, according to a report carried by Orissa Post. However, no further details were provided regarding the mode of payment.
The report cited an official as saying that the oil cargo will be Russian Urals, which will most likely be destined for the Pakistan Refinery Limited (PRL). Moreover, according to the report, “the shipping cost of the Russian oil has been estimated somewhere at $15,” and Pakistan “has finalized the per barrel price close to $50-52” against the G7-led price cap.
Another report by Bloomberg cited Russian Foreign Minister Sergei Lavrov as saying that Moscow has billions of rupees in Indian banks that it cannot use. “We need to use this money. But for this, these rupees must be transferred in another currency, and this is being discussed now,” Lavrov told reporters in India’s state of Goa on the sidelines of the Shanghai Cooperation Organization, according to the report.