All articles tagged with #energy international trade
The EU is investigating Chinese wind turbine subsidies as it struggles to compete with the low cost of China's green technology, aiming to build and maintain a competitive green tech industry in the face of low-price Chinese imports.
More crude tankers are diverting from the Suez Canal due to Houthi rebel attacks, leading to longer voyages and supply issues for Europe. This "sea change" in commodity purchases is expected to increase energy prices for Europe and benefit Atlantic Basin crude suppliers like the U.S. and Brazil. The longer transits are causing delays and squeezing tanker availability, leading to increased freight rates. European countries are seen as complicit in the Israel-Hamas war, prompting European oil owners to opt for longer routes around Africa's Cape of Good Hope. This shift is expected to be a prolonged, painful event but a boost for the U.S. and Brazilian energy industry.
Despite Western sanctions, Russia became China's top crude oil supplier in 2023, shipping a record 107.02 million metric tons of crude oil, surpassing Saudi Arabia and Iraq. The discounted Russian crude, shunned by international buyers, found demand from Chinese and Indian refiners, pushing past the Group of Seven's $60 a barrel price cap. Chinese refiners used intermediary traders and trans-shipment points to handle Russian crude and circumvent sanctions. Meanwhile, China's overall crude imports for 2023 rose to a record 563.99 million metric tons.
Oil supply to Europe from the Middle East has nearly halved due to ongoing attacks by Yemen’s Houthi rebels, leading to tighter supply and increased competition for crude. Disruptions in the Red Sea, combined with rising Chinese demand, have impacted European markets, with the market structure of Brent crude reflecting tighter supply. The disruptions have forced vessels to sail around the Cape of Good Hope, raising freight rates. Additionally, other factors such as a drop in Libyan supply and higher demand for Angolan crude from China and India have further tightened the European crude market.
QatarEnergy, the world's second largest exporter of liquefied natural gas, has halted sending tankers via the Red Sea due to attacks by Yemen's Iran-backed Houthi group, seeking security advice and considering alternative routes. At least four tankers carrying Qatari LNG were held up over the weekend, prompting concerns about shipping safety in the region. The disruption could lead to delivery delays and potential cost increases for LNG cargoes to Europe, impacting global energy trade.
Saudi Arabia's recent oil price cuts have led Indian refiners to increase their purchases of Saudi crude as imports from Russia hit an 11-month low due to better discounts available elsewhere. Payment issues with Russian oil suppliers, including a dispute over currency and pressure to maintain good ties with the US, have contributed to the decline in Russian imports. India's oil chief stated that the drop in purchases from Russia is due to better discounts on crude available from other suppliers.