Page 11 - FSUOGM Week 10 2022
P. 11
FSUOGM PERFORMANCE FSUOGM
European gas prices hit unprecedented
high amid ongoing Ukrainian conflict
EUROPE THE front-month gas price at the Dutch TTF time being, supplies are actually higher than
hub spiked at close to $4,000 per 1,000 cubic they were in February. Meanwhile, temperatures
Moscow's actions metres on March 7, amid the escalating conflict across Europe have dipped lower in recent days,
in Ukraine have in Ukraine that has built on top of an existing and Asian demand for LNG has soared, limiting
exacerbating an existing energy crunch crisis in Europe. how much gas can be sent to European ports.
energy crunch crisis in The April contract at the hub briefly settled The crisis has prompted several EU mem-
Europe at €345 per 1,000 cubic metres at around 08:30 ber states to rethink their reliance on Russian
GMT, equivalent to $3,990 per cubic metres. Its energy, including Germany, which has halted the
average for the day was €227. certification process for Russia’s Nord Stream 2
Pressure has been rapidly building on Euro- pipeline that is required for the project to ever
pean gas prices since Moscow began its military flow gas. Since then, Berlin has announced it
campaign in Ukraine. Prices were already at will devote itself to building two LNG import
record levels in recent months as a result of esca- terminals in north Germany that can serve as a
lating tensions between Russia and the West, as replacement.
well as a sharp rebound in demand following the Italy, another important market for Russian
easing of coronavirus (COVID-19) restrictions gas, has similarly announced plans to reduce
and global supply constraints. its reliance on its main supplier, Gazprom.
There are mounting concerns that the conflict Italian officials were in Algeria last week to dis-
in Ukraine could lead to a disruption in Russian cuss bolstering supply from the North African
gas transit via the country, even though, for the country.
POLICY
Canada bans Russian oil in response
to Ukraine invasion
CANADA CANADA announced on February 28 that it an analysis of government data by Johnston.
would ban imports of Russian oil in response The value of last year’s petroleum imports
The US and the UK to Moscow’s decision to invade Ukraine. It is from Russia was estimated at about CAD350mn
have taken similar the first G7 country to impose an embargo on ($275mn), the Financial Post said, citing data
steps. Russian oil. compiled by the Business Council of Alberta.
The move, announced by Canadian Prime According to the council, the value of oil and
Minister Justin Trudeau, was seen as largely oil product imports from Russia reached
symbolic given that Canada’s imports of Russian CAD884mn ($694mn) in 2019.
crude are limited. Canadian Minister of Natural This compares with total energy imports to
Resources Jonathan Wilkinson clarified the next Canada worth CAD32bn ($25bn) in 2021, with
day that the ban would also include the import of the US, Saudi Arabia and West Africa also sup-
refined petroleum products and other oil prod- plying significant volumes.
ucts from Russia. Also this week, the Canadian Association of
The Financial Post cited information from Petroleum Producers (CAPP) called for the fed-
Commodity Context’s analyst and founder, eral government to make a “clear commitment”
Rory Johnston, as well as the Canada Energy to grow the country’s oil and gas production and
Regulator (CER), as showing the country had exports in light of the situation in Ukraine.
not imported any Russian crude oil since 2019. “Over the last decade, issues like energy secu-
That year, Canada imported about 18,000 bar- rity and country of supply have not been very
rels per day of oil from Russia, out of total crude high on the public’s radar,” the Canadian Press
imports of 963,000 bpd. In 2021, the country quoted CAPP’s president, Tim McMillan, as
imported 10,000 bpd of petroleum products saying. He added that Canadian producers were
from Russia last year, with gasoline and gasoline ready and willing to play a larger role in global
blends accounting for about 50%, according to energy supply in the coming decades.
Week 10 10•March•2022 www. NEWSBASE .com P11
