Cartel curbs production by 2m barrels a day despite strong US pressure, further squeezing supplies
The Opec oil cartel and its allies have agreed to a bigger than expected cut in oil production targets despite significant pressure from the US.
The Opec+ group of oil-producing nations signed up to a cut in output of 2m barrels a day, surpassing predictions earlier in the week of cuts of 1m to 1.5m barrels, squeezing supplies in a tight market.
Continue reading...Russia is suspected to have carried out explosions to put pressure on western energy supplies
Liz Truss has said a series of explosions that severely damaged Russia’s undersea Nord Stream gas pipelines were an act of sabotage.
In a joint report delivered to the United Nations last week, the Danish and Swedish governments have claimed that the leaks in the Nord Stream gas pipelines, which can carry gas to Germany, were caused by blasts equivalent to the power of “several hundred kilograms of explosive”.
Continue reading...As Norway steps up seabed security, experts say underwater cables carrying world’s internet traffic are also at risk
Nato countries are scrambling to improve security of highly vulnerable undersea pipelines and communications cables after the apparent Nord Stream attack in the Baltic Sea underlines the west’s extreme vulnerability.
Four gas leaks on two Nord Stream pipelines have now been reported after blasts were detected on Monday. According to several reports citing European officials, Russian vessels were seen in the vicinity of the Nord Stream I and II pipelines where they were damaged, but an examination of the damage may not be possible for weeks for safety reasons, and no proof of Moscow’s involvement has been presented.
Continue reading...European Commission also proposes extra curbs on hi-tech trade as part of sanctions to ‘make Kremlin pay’ over Ukraine war
The EU executive has promised to cap the price of Russian oil and impose further curbs on hi-tech trade, as part of the latest round of sanctions to “make the Kremlin pay” for the escalation of the war against Ukraine.
The president of the European Commission, Ursula von der Leyen, said Russia had ramped up the invasion to “a new level”, listing the sham referendums in Russian-occupied territory, the partial mobilisation order and Vladimir Putin’s threat to use nuclear weapons. “We are determined to make the Kremlin pay for this further escalation,” she said.
Continue reading...The Karish maritime reservoir, part of which is claimed by Lebanon, is estimated to hold 2-3tn cubic feet of natural gas
Israel is preparing to connect a disputed Mediterranean gas field to its national gas network, a development helping the country cement its new role as a supplier to Europe at the risk of inflaming tensions with Lebanon’s Hezbollah.
The Israeli energy ministry said last week that it would conduct tests on the rig and natural transmission system in the Karish maritime reservoir, part of which is claimed by neighbouring Lebanon. The work is expected to begin on Tuesday, and London-listed company Energean, which has licensed the field, has said that it is “on track to deliver [the] first gas from the Karish development project within weeks.”
Continue reading...EU countries’ efforts to avoid big shortages likely to ‘successfully solve’ Russian cuts, says bank
European countries can withstand Russia’s gas cuts this winter as supply headaches may have been “successfully solved”, according to analysis by a leading US bank.
Goldman Sachs said the price of gas was likely to more than halve this winter as efforts by EU countries’ to avoid big shortages this winter prove effective.
Continue reading...Countries that import large volumes fear Kremlin would respond by halting all gas flows, plunging them into recession
EU energy ministers have clashed over a plan to put a price cap on Russian gas, casting doubt on whether the measure will go ahead.
Speaking after emergency talks in Brussels in response to surging gas and electricity prices, the EU’s energy commissioner, Kadri Simson, said “nothing is decided” on proposals to curb Russia’s income.
Continue reading...Kremlin blames western sanctions for failure to deliver gas through Nord Stream 1 pipeline
Russia will not resume in full its gas supplies to Europe until the west lifts its sanctions against Moscow, the Kremlin said, as concerns over Russian gas supplies continued to drive up energy prices.
Speaking to journalists on Monday, Dmitry Peskov, the Kremlin’s spokesperson, blamed sanctions “introduced against our country by western countries including Germany and the UK” for Russia’s failure to deliver gas through the Nord Stream 1 pipeline.
Continue reading...More UK manufacturers are cutting production or making job cuts as result of ‘out of control’ energy bills
Analysts are expecting gas prices to surge to record highs this week after Russia shut down a key pipeline to Europe.
At the same time, a growing number of UK manufacturers have said they are already cutting production or making job cuts as a direct result of “out of control” energy bills.
Continue reading...Shutdown over ‘oil leak’ comes only hours after G7 nations agree to impose a price cap
Fears that Europe could be engulfed by a winter energy crisis reached new heights yesterday after the Russian energy supplier Gazprom extended the shutdown of gas flows it had imposed through its key Nord Stream 1 pipeline into Germany.
The seriousness of the situation is underlined by the fact that Russia kept gas supplies to Europe flowing even at the height of the Cold War. By contrast, the pipeline has now been shut down twice since the Russian invasion of Ukraine: for 10 days in July in addition to the current indefinite closure.
Continue reading...Russian energy company had been due to resume gas delivery to Germany on Saturday morning
The Russian energy major Gazprom extended the shutdown of gas flows through its key Nord Stream 1 pipeline to Germany on Friday evening, providing no timeframe for a reopening.
The move came hours after G7 countries agreed to impose a price cap on Russian oil in an attempt to stem the flow of funds to Vladimir Putin’s regime.
Continue reading...Motorists forced to pay premium for smuggled black market fuel or drive to service stations at border with neighbouring Mozambique
Motorists in Malawi are having to rely on fuel smuggled in from neighbouring Mozambique as pumps across the country run dry, while some drivers told the Guardian they had to cross the border to get petrol as the country grapples with severe shortages.
“We have been depending on smuggled fuel from Mozambique,” said Allick Pondani, a motorist from the southern Malawi district of Phalombe. “Some entrepreneurs have taken advantage of the situation and are smuggling the scarce commodity, which they are selling at 50% over the normal pump price.”
Continue reading...European Commission says it is working ‘flat out’ on emergency intervention and on longer-term structural reform
The wholesale price of gas has dropped sharply in a rare respite from recent highs on signs that Europe is preparing to intervene directly in energy markets.
The European Commission said it was working “flat out” on an emergency package, and on a longer-term “structural reform of the electricity market” to combat soaring prices while efforts to fill gas storage facilities appear to be ahead of schedule.
Continue reading...Warning raises prospect of continued rationing, as Total boss says Europe has to plan for future without Russian supplies
Gas shortages across Europe are likely to last for several winters to come, the chief executive of Shell has said, raising the prospect of continued energy rationing as governments across the continent push to develop alternative supplies.
Cuts to the supply of Russian gas since the invasion of Ukraine have plunged European countries into a devastating energy crisis, driving up wholesale prices to leave consumers facing huge bills and the highest rates of inflation since the 1980s.
Continue reading...Company’s owner, Centrica, says extra support will begin in autumn and last for the ‘duration of the energy crisis’
British Gas has announced it will donate 10% of its profits to help its poorer customers manage rising gas and electricity bills for the “duration of the energy crisis”.
Ahead of an expected rise in the price cap on energy on Friday, the company’s owner, Centrica, said it would donate £12m this autumn into an existing support fund. Grants of £250 to £750 would be given to poorer customers, and the pledge to donate 10% of profits every six months would last for the duration of the energy crisis “backdated to the start of 2022”, it added.
Continue reading...German energy firm, which operates many UK power stations, has been bailed out by federal government
The owner of the Ratcliffe-on-Soar power station in Nottinghamshire has posted a €12bn (£10bn) loss weeks after agreeing a bailout package with the German government, in a set of results that signal the deepening energy crisis across Europe.
Uniper received a €15bn lifeline from the German state in return for a 30% equity stake in a deal agreed in July.
Continue reading...Chinese recovery from lockdowns shows signs of fizzling out as central bank cuts interest rates
Global oil prices have dropped amid concerns over weaker growth in the Chinese economy caused by repeated Covid lockdowns and a downturn in the property sector.
A barrel of Brent crude fell by about 5% to below $94 (£78) on Monday, hitting the joint lowest levels since the Russian invasion of Ukraine as traders reacted to weaker figures from the world’s second-largest economy.
Continue reading...The $48bn figure from world’s biggest oil firm is thought to be one of largest quarterly profits in history
Saudi Arabia’s largely state-owned energy firm has highlighted the colossal profits made by gas and oil-rich nations during the energy crisis by revealing profits in the three months to the end of June up 90% to $48bn (£40bn).
Saudi Aramco recorded what is believed to be one of the largest quarterly profits in history to easily beat the near $26bn it made a year earlier.
Continue reading...Joseph Rowntree Foundation, consumer champion Martin Lewis and CBI chief urge PM to act urgently to help people with soaring energy bills
More on the new forecast for UK energy bills from Cornwall Insight, which spells more misery for millions of families across the UK.
The consultancy’s principal consultant, Dr Craig Lowrey, said:
It is essential that the government use our predictions to spur on a review of the support package being offered to consumers.
If the £400 was not enough to make a dent in the impact of our previous forecast, it most certainly is not enough now.
The government must make introducing more support over the first two quarters of 2023 a number one priority. In the longer term, a social tariff or other support mechanism to target support at the most vulnerable in society are options that we at Cornwall Insight have proposed previously. Right now, the current price cap is not working for consumers, suppliers, or the economy.
Continue reading...Output last month of Russian firm was down 14% on June, sharpening fears Moscow could provoke energy crisis in Europe
The daily gas production of Russia’s Gazprom dropped in July to its lowest level since 2008, figures suggest, amid continued fears that Moscow could cause an energy crisis in Europe by shutting off the supply.
The state-owned energy firm pumped 774 million cubic metres a day last month – 14% less than in June – according to analysis by Bloomberg of data released on Monday.
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