“Russian president Vladimir Putin has threatened “catastrophic consequences” for world energy markets if western powers impose further sanctions on Moscow, as G7 members discuss plans to try to cap Russia’s oil revenues following its invasion of Ukraine…
“His comments will increase concerns that Russia could look to disrupt oil supplies if G7 members move ahead with plans to try to cap the price Russia can receive for its crude, the primary source of government revenues.”
https://www.ft.com/content/45210531-0fc6-48e3-82d2-aece0d02a675
“With world in energy shock, Saudi oil cushion gets very thin.
“Gary Ross, a veteran OPEC and Saudi observer, said Saudi production capacity might be no more than 11 million bpd because low drilling rates of the past years have failed to replace losses in existing capacity. “We are running on empty!” Ross said.”
“OPEC+ Is Still 2.5 Million Bpd Below Its Production Target.
“OPEC+ pumped more than 2.5 million barrels per day (bpd) below its target in June, despite a rebound in Russia’s oil production that helped the group’s output rise by 730,000 bpd from May, according to the Argus survey published on Friday.”
“Global diesel demand starts to slacken as economy falters…
“Something similar occurred at this point in 2008, when softening manufacturing activity coincided with record crude prices to encourage maximum fuel conservation and diesel demand began to fall.”
“Boris Johnson leaves world’s fifth biggest economy in crisis.
“… his popularity outside parliament has also been badly dented by surging inflation and stagnation in the British economy, a cost-of-living crisis that threatens to impoverish millions more people this winter, and the risk of a damaging trade war with the European Union.”
https://edition.cnn.com/2022/07/07/economy/boris-johnson-resignation-economy/index.html
“[UK] Energy bills could reach more than £3,300 a year this winter in the latest blow to households struggling to cope with the soaring cost of living crisis.
“The research firm Cornwall Insight published new, higher forecasts that show the energy price cap is on track to rise to £3,244 a year in October, when it is next adjusted, as wholesale prices continue to soar. The default tariff cap is expected to be raised again in January…”
https://www.theguardian.com/money/2022/jul/08/uk-energy-bills-rise-winter-energy-price-cap
“Norway’s Hydropower Reserves Hit Hard By Drought.
“While Europe scrambles to procure natural gas for winter power generation and heating, Western Europe’s biggest oil and gas producer, Norway, has a whole different power problem this summer—dry weather, which depletes water reservoirs for hydropower…”
“Heat Wave Spreads Across Europe Raising Risk in Energy Crisis…
“Temperatures are soaring across Europe, drying up waterways and boosting demand for electricity to cool homes as the region faces a crunch for energy supplies. It’s a continuation of this summer’s remarkable heat…”
“Low Rhine Water Levels Risk Worsening Europe’s Energy Crunch…
““Low water levels on the Rhine mean that barges cannot load steam coal at full capacity” for power plants in Germany, said Guillaume Perret, founder of energy consultancy Perret Associates. “This could be a double whammy for the German utilities, as they were already facing a shortage of barges.””
“Germany begins energy rationing as gas prices spike.
“Local authorities in Germany have begun rationing energy, dimming street lights and closing swimming pools to cope with soaring gas prices in the wake of Russia’s move to slash energy supplies… “The situation is more than dramatic,” Axel Gedaschko, head of the federation of German housing enterprises, told the FT. “Germany’s social peace is in great danger.””
https://www.cityam.com/germany-begins-energy-rationing-as-gas-prices-spike/
“The flow of gas from Russia to Germany through the Nord Stream 1 pipeline will stop on Monday for a planned 10-day maintenance period. The question is: Will flows then resume?
“Germany is largely dependent on Russian gas to fuel its export-led economy and to keep homes warm. But Europe’s largest economy has been bracing for a possible complete halt in Russian supplies…”
“France can’t tackle inflation crisis with more debt – central bank.
“The French state cannot afford to bear alone the economic fallout from the Ukraine crisis, the country’s central bank governor said on Thursday… Bank of France Governor Francois Villeroy de Galhau said that households would have to face a temporary drop in purchasing power…”
“Euro Zone Faces Recession With or Without Gas Cut-Off, ING Says…
““The long-awaited economic recovery of the euro zone has been canceled,” economist Carsten Brzeski wrote in a note on Thursday. “None of the current risk factors for the euro-zone economy is likely to disappear soon.””
“The euro has slumped to within a cent of parity with the US dollar as a deepening energy crisis and wider economic fears take their toll.
“Inflation in the eurozone is at record levels and forecasters expect a recession this year amid fears that Russia could choke off gas supplies.”
https://www.thisismoney.co.uk/money/markets/article-10995835/Euro-slumps-cent-parity-dollar.html
“Chinese property developers face a $13bn wall of foreign currency bond payments in the second half of this year, as a mounting default tally darkens the market outlook.
“China’s real estate sector has struggled to come to grips with slowing growth coupled with authorities’ efforts to rein in excess leverage. Waves of defaults have been triggered…”
https://www.ft.com/content/3339c433-c441-40fb-b334-72a057f40ea0
“China’s once profitable railways records $900bn debt over push for growth.
“What was once China’s profitable high-speed railways is now heading towards a trillion-dollar disaster after reports of debt nearing a whopping USD 900 billion. Even in the face of mounting debt, China State Railway Group is doubling down on its expansion of what is already the world’s largest high-speed rail network…”
“Chile: Demonstrators block Route 160…
“Protesters in cars are reportedly blocking Route 160 near Playa Blanca, Biobio Province, between Coronel and Lota late July 7 to protest rises in fuel prices. Reports indicate that traffic is heavily blocked on the route.”
“Argentina turmoil sparks panic buying and price hikes.
“”Every day it’s like going out to hunt a lion,” Luis Sacco told AFP in front of his electronics store in the capital Buenos Aires. Since Monday, prices have risen dramatically at shops and businesses across the country. On Saturday, economy minister Martin Guzman resigned following months of pressure…”
https://www.france24.com/en/live-news/20220708-argentina-turmoil-sparks-panic-buying-and-price-hikes
“Surging Fuel Costs Pressure African States as Protests Build…
“Currency weakness resulting from rising interest rates in rich countries is exacerbating matters. The currencies of Ghana, Nigeria and Kenya all dropped to record lows against the dollar this week and will continue to depreciate…”
“Concern over impact of load shedding on [South Africa’s] agriculture industry…
“Christo van der Rheede, the executive director of Agri SA, said the impact of the power outages on the agricultural sector and the wider economy held serious implications for food security and social stability… Van der Rheede said that electricity was central to modern farming practices…”
“‘It’s getting scary.’ How the war in Ukraine plunged this Middle East nation [Egypt] into crisis…
“Egyptian households of all income levels are seeing their spending power erode fast. The economic crisis raises prospects of unrest in a country where a regime was overthrown just a decade ago in an uprising calling for “bread, freedom and social justice.””
https://edition.cnn.com/2022/07/08/business/egypt-economy-inflation-mime-intl/index.html
“Lebanon plans to send 15,000 Syrians back home each month.
“Despite staunch opposition from the UN and rights organizations, Lebanon has announced it intends to start repatriating tens of thousands of Syrian refugees within the next few months. The plan will entail sending back 15,000 Syrian refugees each month.”
http://www.infomigrants.net/en/post/41798/lebanon-plans-to-send-15000-syrians-back-home-each-month
“Iraq Summer Power Shortages Grow Despite New CCGT…
“Iraq’s electricity demand keeps on climbing and its overstretched infrastructure is struggling to cope. Government forecasts point to a 1.4GW year-on-year increase in peak demand to a new record 34.18GW for summer 2022 – with this month likely marking the peak.”
“The ongoing energy crisis in Pakistan is likely to continue after the country’s purchaser of Liquefied Natural Gas (LNG) failed to receive a single offer for its latest tender…
““That illustrates both the extent of the global fuel shortage, and also the reluctance of suppliers to sell to a country in the depths of an economic crisis,” said the report.”
https://www.brecorder.com/news/40184918
“Bangladesh goes for power austerity amid energy crisis.
“Bangladesh has restricted electricity consumption across the country from Friday to cope with a shortage of gas supplies to power plants amid to rising prices, a measure that comes into effect just ahead of the Islamic festival of Eid-ul-Adha.”
https://www.laprensalatina.com/bangladesh-goes-for-power-austerity-amid-energy-crisis/
“Sri Lanka protests: thousands storm president’s residence in Colombo.
“The island of 22 million people is struggling under a severe foreign exchange shortage that has limited essential imports of fuel, food and medicine, plunging it into the worst economic crisis since independence in 1948.”
“The number of emerging markets in the world where investors believe default is a real possibility or are already in default has more than doubled in the past six months, up to 19 nations.
“The data from Bloomberg Economics paints a grim picture as the surge in global interest rates and inflation takes its toll.”
You can read the previous ‘Economic’ thread here. I’ll be back on Monday with a ‘Climate’ thread.
If you found value in this content, please help me continue this work by becoming a patron of my work via Patreon. And if you are already a subscriber or have donated – thank you! It is a huge help, especially as the cost of living crisis is biting here in the UK.
https://indi.ca/my-experience-of-sri-lankas-protests/
You have to log in, but it is free.
Thanks, Lou! My goodness, the situation has deteriorated since I posted this thread.