EU member states agreed to continue cutting their gas demand by 15% compared to the five-year average until Mar. 31, 2024. The emergency legislation started applying in August 2022 to help the bloc refill its gas stocks and mitigate its unprecedented gas shortage following the Russian pipeline supply cuts.
The Netherlands’ plans to boost its LNG import capacity by a quarter to 30 bn m3 a year by 2026 could allow the country to fully replace the 9 bn m3 of Russian gas it imported prior to Russia’s export cuts to the EU. Like several other EU countries, the Netherlands is turning to LNG to help ensure its security of gas supply while also implementing measures to cut gas demand in the short and long term.
The European Union is on track to jointly buy around 10 bn m3 of gas this year, or roughly three-quarters of its mandatory target. The bloc agreed to start joint gas and LNG purchases in April to help ensure stocks are refilled ahead of next winter when supply is expected to remain tight. The EU is also contemplating expanding its voluntary 15% cut in demand until next year as another measure to tackle the current energy crisis.
Oil markets have rallied last week despite a yet still hawkish tone from Jerome Powell, the FED governor. Rumours around China potentially lifting its sticky zero-covid policy have helped propel front-month prices for Brent by 6% in four days to just under $99/bbl. However, markets could be jumping the gun too early. Chinese authorities have tempered some hope about a turnaround in the country’s zero-covid policy.
Kpler launches a crude supply and demand assessment tool to help crude market professionals and downstream consumers better navigate the turbulent and uncertain global crude markets.
Australia's refined product imports have surged in the first nine months of the year, as our flow data show. However, as the region becomes increasingly import reliant, and trade flows change, we would not be surprised to see the region competing for volumes to ensure its energy needs are met.
European security of gas supply is a topic that won't be going away any time soon. In this article, we discuss the latest proposals by the European Commission to introduce a 80% gas storage target by 1 November and Friday's deal between US and the Europe Union to increase LNG supplies by 15 bcm this year.
European Gasoil imports have fallen to an 11-month low, despite this being the peak demand season. A mild winter in most of the region has combined with faltering demand recovery, meaning just 7.5 million tonnes were imported in January 2022.
