Page 11 - AsianOil Week 47 2022

AsianOil NEWS IN BRIEF AsianOil

$10/mmBtu to the January gas price at the across China’s cities, casting a shadow over as the People’s Bank of China stepped up
Dutch TTF hub, according to Ciaran Roe, the nation’s reopening path and putting support for the economy, lowering the
global director of LNG global investors on edge. reserve requirement ratio for the second
“While NWM is at a discount to JKM in Stocks were swept in a broad sell-off, time this year late on Friday.
the physical spot market, the forward curves with Hong Kong’s Hang Seng Index falling The Covid-19 rules and resulting protests
for the two benchmarks are showing Europe as much as 4.2 per cent and a separate are creating fears that the economic hit for
(NWM) being above Asia (JKM) out until gauge of Chinese tech stocks down more China will be greater than expected.
Q3 2023, implying a current market view than 5 per cent. On the mainland, the CSI “A growing list of cities, including those
that Europe will be the prime destination 300 Index declined as much as 2.8 per cent, with large populations, have imposed strong
for cargoes during that period,” Roe said. while the onshore renminbi plunged 1 per restrictions on movement because of a
EU energy ministers failed to agree on a cent, the most since May, to 7.2399 per US surge in infections. There will inevitably
gas price cap on Thursday, and postponed dollar as risk appetite faded. be a negative impact on economic activity
adoption of other European Commission Foreign investors were net sellers of 3.8 from the restrictions on movement,” CBA
proposals, such as a joint gas purchasing billion yuan (S$728 million) of onshore analysts said on Monday.
and fast-tracking renewable permits, to a shares so far in Monday’s session via trading “Even if China is on a path to eventually
meeting slated for Dec. 13. links with Hong Kong. move away from its zero-Covid-19
“If a price cap does get approved at the Japan’s Nikkei stock index was down approach, the low level of vaccination
level proposed -275 euros/MWh- this won’t 0.76 per cent and South Korea’s Kospi index among the elderly means the exit is likely
really challenge the status quo since the retreated 1.08 per cent, while Australian to be slow and possibly disorderly. The
chances of the price cap being triggered shares lost 0.43 per cent. economic impacts are unlikely to be small.”
seem very slim. (However) it could still In Singapore, the Straits Times Index was China’s case numbers have hit record
expose the market to speculation and does down 0.62 per cent at 10.21am. highs, with nearly 40,000 new infections on
not deter prices from hitting new record The S&P 500 and Nasdaq futures both Saturday.
highs during winter,” said Ryhana Rasidi, fell, pointing to possible declines on Wall
gas and LNG analyst at data analytics firm Street later in the day.
Kpler. Fears about China’s economic growth apan's MOL, JERA to study
Alex Froley, LNG analyst at data also hit commodities in Asia trade.
intelligence firm ICIS said that Europe’s US crude dipped 2.45 per cent to ammonian fuel transport
overall position remains fairly healthy with US$74.41 a barrel and Brent crude fell 2.24
a substantial backlog of around 28 vessels to US$81.76 per barrel as the Covid-19 Japan's Mitsui O.S.K. Lines Ltd. (MOL) said
waiting offshore Europe to deliver. protests in top importer China fuelled on Monday it had signed a memorandum
Froley said that despite the storage demand worries. of understanding (MoU) with JERA, the
backlog, Europe is attracting rare cargoes Both benchmarks slid to 10-month country's biggest power generator, to study
from the Pacific Basin: the Woodside Rees lows last week and declined for a third transporting ammonia for using it as a fuel.
Withers LNG vessel has arrived off the coast consecutive week. The study will include looking at
of Spain with a cargo from Australia, the Protests spread over the weekend as ammonia shipments to JERA's Hekinan
first direct Australian cargo to Europe since citizens in major cities, including Beijing power station in the Aichi prefecture, which
2012. and Shanghai, took to the streets to express is scheduled to start commercial operations
Another vessel, the BW Paris looks to their anger over the nation’s Covid-19 towards the end of the decade, MOL said in
be carrying an Indonesian cargo towards controls. The rare show of defiance is raising the statement.
Europe, which would be the second to the threat of a government crackdown, "With ammonia emerging as a next-
Europe in history after another vessel prompting investors to rethink investment generation clean energy source that does
headed to France in early November. plans after jumping back in on reopening not emit carbon dioxide during combustion,
LNG freight rates have seen sharp hopes. large-scale demand for ammonia is
declines this week, with both basins down Goldman Sachs economists said they expected in the future, particularly for co-
over 20% as the longer-than-expected see some chance of a “disorderly” exit firing and as a hydrogen carrier in coal-fired
Freeport delays and continued reduction from Covid-19-zero in China, as the power plants," according to the statement.
in floating storage have freed up vessels central government may soon need to Through the MoU, MOL and JERA
for the spot market, according to Henry choose between more lockdowns and more would study developing fuel-ammonia
Bennett, global head of pricing at Spark Covid-19 outbreaks. carriers suitable for domestic thermal power
Commodities. The latest developments underscore plants and receiving stations, the building of
The Atlantic rate on Friday fell to China’s rocky path to reopening as the fuel ammonia transportation and receiving
$375,750/day while the Pacific rate fell to nation grapples with a record number of systems, and installing and operating
$356,250/day. virus cases. Assets rallied in November as propulsion engines that use ammonia as
directives for a less-restrictive pandemic ship fuel. The companies will also work
approach, coupled with strong support with relevant parties to foster regulations
Asia stocks, oil tumble as China for the property sector, gave investors regarding ammonia fuel, MOL's statement
added.
confidence that the worst is well behind.
protests spook markets had turned upbeat on China following
A growing number of Wall Street players
Asia stocks tumbled and oil slid on Monday Beijing’s policy steps to shore up the
as protests against Covid-19 curbs erupted economy. Monday’s setback comes even

Week 47 28•November•2022 www. NEWSBASE .com P11