Happy Martin Luther King Jr. Day!
Russia’s Arctic Oil Seeps into Asia
Despite sanctions and price caps from Western nations, Russian oil is finding its way to Asian nations. Reuters' Florence Tan and Nidhi Verma report on Russia sending oil to China and India, writing: Russia is sending more crude oil produced in the Arctic region to China and India, and at steeper discounts, after Europe slammed its doors shut on Russian supplies last month, trade sources and data show. Arctic grades Arco, Arco/Novy Port and Varandey do not normally head East but are now finding new homes further afield after the European Union, G7 nations and Australia introduced a price … [Read more...]
CHIPS: From Shortage to Surplus
A year ago, everyone was talking about chip shortages and the kinks they were causing in supply chains. Now, there are more semiconductor chips than needed, and surpluses are building up. Asa Fitch reports for The Wall Street Journal: The world is now awash in chips. The oversupply marks a sharp turnaround from a global shortage during two years of supercharged demand. Consumer appetite for electronics has weakened against a backdrop of rising interest rates, a falling stock market and recession fears. Chip inventories are swelling, mirroring what is happening in the wider economy where … [Read more...]
Happy New Year!
Uncertainty as Lithium Supplies Stretched Dangerously Thin
Lithium supplies are stretched, and customers are feeling the pressure. Andy Home reports in Reuters: The world has been running short of lithium this year, a surge of new supply failing to catch up with a still faster demand wave as the electric vehicle (EV) revolution accelerates. Lithium's price narrative is fiercely contested territory, but the clearest signal of market shortfall is price. From spodumene ore through lithium carbonate to lithium hydroxide, prices have more than doubled again this year after an explosive rally in 2021. Last month's average spot Asian price for … [Read more...]
Turkey Reopens Straits to Oil Shipments
After sanctions on Russian oil created confusion in the insurance markets for oil shipping, Turkey closed its shipping straits leading to and from the Black Sea, the Dardanelles, and the Bosphorus. Now, it has once again reopened those straits to oil shipping after sorting out the insurance issues. Alex Longley and Julian Lee report for Bloomberg: A backlog of tankers waiting to haul oil through Turkey’s vital shipping straits is clearing, offering evidence that authorities in Ankara have resolved a spat with the insurance industry that arose following sanctions on Russia. Tankers able to … [Read more...]
Despite Biden’s Desire to “End Fossil Fuel,” His Admin Demands more Drilling
Investors work on expectations. If you expect an industry to be increasingly hemmed in and regulated by the government, why would you invest in growth? No. You'd suck as much value out of that industry as possible to deploy in places you expect growth to be greater. That's why the Biden administration's blame of the oil industry for lack of investment is so bewildering. The Biden administration's hostility to fossil fuels is long and verifiable. In September of 2019, Biden told an audience he'd "end fossil fuel." What incentive do investors have in an industry the ruling administration … [Read more...]
Is LNG the New Strategic Asset?
The war in Ukraine has given rise to massive new demand for LNG by European countries seeking to replace Russian imports of natural gas. The world has been witness to LNG becoming what appears to be a new strategic asset. Japan, a country that relies heavily on LNG, is considering building its own LNG strategic reserve. Bloomberg's Shoko Oda and Tsuyoshi Inajima report: Japan is considering setting up a strategic reserve of liquefied natural gas, as the imports-dependent nation ramps up efforts to make sure it has enough of the fuel amid intensifying competition. The government will … [Read more...]
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