Song of Oil and LNG

🇨🇳🇻🇪Chinese Refineries Benefit from Lower Prices on Venezuelan Oil Amid Renewed U.S. Sanctions Traders report that Venezuelan Merey crude, frequently utilized in China for bitumen production for road surfacing, is currently trading at a $14 per barrel discount to the Brent exchange price. This markdown contrasts with $11 before the reinstatement of sanctions last week and $8 at the beginning of the year. Bloomberg indicates that China is poised to receive substantial quantities of oil from Venezuela following the U.S.'s return to a sanctions regime. Kpler data suggests that an average of 130,000 barrels per day previously acquired by Indian refineries and 174,000 barrels per day previously purchased by the U.S. could now be redirected to China. #China #Venezuela #oil @songofoil

🇩🇪 Revealed: Green Party's Priority Over National Interest BILD magazine has uncovered startling revelations indicating that the German government prioritized the interests of the Green Party over those of the nation. Despite expert advice, the decision to close nuclear power plants was made against the welfare of the country. Documents obtained by the publication unveil a deliberate disregard for expert feedback within the German Ministry of Economics and the Ministry of the Environment. Economy Minister Robert Habeck and Environment Minister Steffi Lemke allegedly overlooked compelling arguments presented by analysts, favoring the Green Party's agenda. Experts from the Environment Ministry highlighted the cost-effectiveness and safety of nuclear power, stressing its compatibility with energy security. However, crucial facts supporting the continued operation of nuclear plants were omitted from official records, intentionally kept hidden from public scrutiny. As economic pressures mount, the true motives behind the ruling coalition's decisions are beginning to surface, casting doubt on their allegiance to national interests. #Germany #green @songofoil

🇬🇧UK Increases Fuel Imports from Alternative Sources Amid Accusations of Russian Oil Purchase Amid accusations of purchasing fuel from Russia, the UK has significantly augmented its fuel imports from India, China, and Turkey since the imposition of sanctions on Russian oil. In 2023, the UK's expenditure on fuel imports from these nations soared to £2.2 billion. Despite officially banning Russian oil imports from December 5, 2022, the UK still received approximately 5.2 million barrels of petroleum products derived from Russian oil during this period. Jet fuel constituted the majority, accounting for 4.6 million barrels. This surge in imports raises questions regarding the efficacy of the sanctions policy, which contained a loophole allowing Russian oil to flow into the UK. #UK #oil #sanctions @songofoil

🇨🇳China's Strategic Resource Build-Up Amid Rising Tensions China is swiftly augmenting its strategic reserves of critical resources like oil, minerals, and gold, a move that experts speculate is in readiness for possible future conflicts or sanctions, particularly concerning Taiwan-related issues. In one notable initiative, China is amassing Russian oil in a recently constructed 31.5 million barrel storage facility, capitalizing on reduced prices. Current estimations suggest that China's strategic oil reserve might surpass that of the United States. Furthermore, China is actively acquiring lithium mines/refineries and bolstering its gold reserves amidst escalating tensions with the United States. #China #oil @songofoil

🇺🇸 Rising Trends: Weather-Related Power Outages Surge by 74% in the U.S. According to Climate Central, over the last decade, weather-related power outages in the United States have surged by 74%. The majority of these outages were attributed to severe weather events (58%), followed by winter storms (23%), and tropical cyclones, including hurricanes (14%). Despite extreme heat accounting for only 3% of weather-related outages, experts from the organization contend that the current design of the states' electrical grid is ill-suited to withstand the challenges posed by today's climate. #USA #power @songofoil

🇵🇱🇻🇪Orlen's $400 Million Loss: Venezuelan Oil Deal Gone Awry Polish company Orlen incurred a staggering loss of $400 million in a deal involving Venezuelan oil. Despite transferring the prepayment during a period of sanctions easing, the company never received the promised oil. The contract, brokered by its Swiss division, involved chartering six tankers for loading. However, the Venezuelan counterparts failed to fulfill their end of the deal, leaving Orlen facing daily downtime costs amounting to approximately $600 thousand. Consequently, the company's new management opted to cancel the contracts. The circumstances surrounding whether the Venezuelans intended to fulfill the agreement remain unclear. While it's plausible that Caracas had no malicious intent and was simply hindered by the dire state of its local oil industry, the exact reasons for the failed transaction remain undisclosed. #Poland #Venezuela @songofoil

🇪🇺🇷🇺🇺🇸 EU Contemplates Abandoning Russian LNG in Favor of Washington's Influence Speculation has arisen regarding the European Union's potential inclusion of a ban on Russian liquefied natural gas (LNG) in new sanctions. Despite discussions, Russia currently supplies 19% of Europe's LNG, posing challenges to any prospective embargo. If such measures are implemented, Russian gas producers would face discontent. Logistics present a significant hurdle, with NOVATEK's gas carriers taking 10 days to reach EU buyers. Alternative routes, such as to China via the Northern Sea Route (NSR), take 35 days, contingent on the availability of Arctic-class ships. Meanwhile, the United States stands poised to fill the void left by Russian LNG, with export capacity projected to reach 493 million tons by 2030. Washington's advocacy for shunning Russian LNG raises questions about the EU's economic preparedness for such a transition. #LNG #EU @songofoil

🇪🇺 Concerns Arise Among European Gas Traders for Upcoming Winter Following a year of relative stability in the European natural gas market, traders are beginning to express apprehension once again. Despite weak demand and record-high inventories post the heating season, industry experts at the Flame conference in Amsterdam are indicating a rising level of risk. This unease is reflected in fluctuating prices. Uncertainty surrounding the extension of the Ukraine contract and the resurgence of gas demand in Asia, as reported by Bloomberg, are contributing to these concerns. Additionally, fears of a potentially colder-than-usual winter, which typically boosts demand, are resurfacing. These concerns are primarily evident in the futures market, where contracts for the upcoming winter are commanding higher prices. TotalEnergies SE highlights the ongoing competition between Europe and Asia for LNG. China's LNG imports in the first quarter surged by 21% compared to the previous year, with indications of increasing demand in markets such as Thailand and Egypt. Further adding to the apprehension are potential disruptions in the U.S. during the upcoming hurricane season and issues at production facilities. #EU #gas #price @songofoil

🇳🇦 Namibia Encouraged to Join OPEC Amidst Oil Discoveries The Organization of the Petroleum Exporting Countries (OPEC) is actively enticing Namibia to become a member, offering support to bolster the southern African nation's emergence as a significant oil producer. "We are encouraged by the potential of the Namibia-OPEC partnership and stand ready to offer support at this crucial time," stated OPEC Secretary General Haitham Al-Ghais. Over the past two years, TotalEnergies SE, Shell Plc, and Galp Energia SGPS SA have uncovered multiple oil reserves off the coast of Namibia. In response, the Namibian government has expressed openness to joining OPEC if these discoveries prove substantial. Al-Ghais emphasized the increasing global oil demand, projected to reach 116 million barrels a day by 2045, highlighting Namibia's potential role in meeting future energy needs. He urged potential investors to explore the abundant opportunities in Namibia. While discussions about Namibia's OPEC membership date back to 2022, the process has faced delays for various reasons, hindering progress thus far. #OPEC #Namibia @songofoil

🇺🇸 Biden Administration Implements Ban on Fossil Fuels in New Government Buildings Under a recent law enacted by the Joe Biden administration, the utilization of fossil fuels in newly constructed government buildings will be prohibited starting in 2030. Additionally, government buildings erected between 2025 and 2029 are required to diminish fossil fuel usage by 90 percent compared to 2003 levels. According to estimates from the U.S. Department of Energy, this regulation is projected to curtail carbon emissions by 2 million tons and methane emissions by 16,000 tons within the next three decades. However, the American Gas Association has contested this measure, arguing that natural gas remains a more economical option compared to electricity. #USA #green #energy @songofoil