Diesel Flow to Europe to Cap Winter Price Surge
debt loses some appeal in Hong Kong In June, China struck a similar agreement with the Bank of England worth up to 200 billion yuan. The deal with the ECB comes as political gridlock in the U.S. weakens the U.S. dollar against many other global currencies. A spokesperson for the ECB said the deal had been in the works for the last few months. China’s wine obsession spurs Bordeaux sales The yuan, also called the renminbi, currently trades directly with the U.S. dollar, the Australian dollar and the Japanese yen . In September, the Bank for International Settlements announced the Chinese yuan was the ninth most traded currency in the world. The yuan was involved in 2.2% of foreign exchange trading worldwide in April, the period examined by the report, more than double its share in April 2010. The dollar was involved in 87% of all trades, the euro was part of 33% of trades, and the Japanese yen was involved in 23%.
to Europe climbed in the third quarter to the most since Bloomberg began compiling the data last year, as refiners increase production amid North Americas oil shale boom. Europe imports about 16 percent of the diesel it uses, IEA data show. Russia , which supplied a third of Europes imported diesel in 2012, according to the IEA, has also entered seasonal maintenance, taking offline 21 percent of its refining capacity in the week ended Oct. 2, according to the countrys Energy Ministry. When the overhauls end in November, Russian flows of the fuel will rebound, according to the survey of refining executives. Russian Diesel Russia, the worlds largest oil producer, has doubled exports of high-quality diesel to Europe this year to about 650,000 barrels a day, Facts Globals Parker said. OAO Rosneft, the worlds largest publicly traded oil producer by volume, is spending $25 billion on refinery upgrades. Diesel crack spreads below $15 a barrel were extremely disappointing for refineries that have all maximized diesel production, Dario Scaffardi, Sarass executive vice president and general manager, said on an Aug. 9 conference call. Repsol spokesman Kristian Rix declined to comment on how diesel supply affects the Spanish company and Massimo Vacca, head of investor relations at Saras, didnt return a phone call and e-mail yesterday seeking comment. Mild Weather Milder-than-usual weather is forecast for the early part of the European winter, potentially damping demand for heating fuels, according to MDA, a Gaithersburg, Maryland-based meteorologist. An early look at winter 2013-2014 shows a mild temperature pattern being driven by warmer waters in the Atlantic Ocean, Bradley Harvey, an operational meteorologist at MDA said Sept. 27 by e-mail.
Energy leaders warn of blackouts across Europe
Id rather see the Sheriff of Nottingham for most of the legislation. Lets restore normal and eliminate state intervention and subsidies. The EU started a debate in March on a new set of climate and energy rules as the 28-nation bloc seeks to ensure security of supply and cut greenhouse gases. A framework for the decade to 2030 is needed to give investors legal certainty, spur innovation and prepare for a global climate deal, the European Commission said in a consultation paper at the time. At the same time, the EU is considering options to overhaul the 53 billion-euro ($72 billion) carbon market after emission-permit prices slumped to a low of 2.46 euros in April amid a record glut of permits. In addition to broader reforms in coming years, the emissions-trading system needs a short-term fix, GDF CEO Gerard Mestrallet said. Without a carbon signal, we will not have any visibility, and we will not be in a position to invest. Carbon Collapse The collapse of the carbon price has made coal, the dirtiest source of power, also one of the cheapest. The switch to coal and requirements to buy renewable power have sapped the profitability of natural-gas-fired plants, leading to the widespread shutdown of combined-cycle gas turbine plants, which are among the cleanest. Fifty-one gigawatts of the blocs electricity capacity is mothballed, equivalent to the combined capacity of Belgium , the Czech Republic and Portugal , the utilities said in a brochure given to reporters today. Energy consumers should be billed only for energy, said EON CEO Johannes Teyssen who also is president of the Eurelectric industry lobby. At present European consumers help pay for subsidies to promote renewable-power generation through larger energy bills. Bigger Bills More than 50 percent of the bill European consumers are paying today has nothing to do with power generation and networks, and thats because of political decisions, said Iberdrolas Ignacio Galan. That has already created a lot of distortions. Energy bills rose 17 percent in four years for domestic consumers and 21 percent for industrial consumers, the utilities said today in the brochure.
The European Union needs to change its policies toward energy subsidies, regulations and emissions targets, the chief executives of Europe’s leading energy companies told CNBC on Friday, warning that increasing operational difficulties could lead to “blackouts” across Europe. ‘Colliding’ energy regulations hurting industry: ENEL’s Conti Fulvio Conti, CEO and general manager of ENEL, explains why European politicians need to change the way they are regulating the energy market. Energy companies say they were pushed to invest heavily in renewable energy and technology by the 28-country European Union but have since run into rules that differ from country to country, an inadequate Europe-wide emissions-trading system and problems with subsidies. Peter Terium, chief executive German electric utilities firm RWE AG told CNBC that he and other executives meeting in Brussels were there to urge European Union policymakers to dangers facing the energy industry. “We want to send an a SOS to Europe, not for the companies, not for the sector, but for Europe as a whole. A prosperous society cannot be prosperous without proper energy infrastructure and our infrastructure is in jeopardy”, Terium told CNBC in Brussels. Warning that Europe could face power blackouts if the economy in Europe recovered but energy provision remained inadequate, Terium warned that energy companies were closing power plants across the continent “that are technically and environmentally very efficient, but we’re shutting them down because the system does not allow us to economically operate those plants.” Fulvio Conti, chief executive and general manager of Italian electricity firm ENEL told CNBC that EU regulations needed to be “straightened out” to make the industry “investable again.” “We have contrasting regulations coming from Europe and from member states that are colliding and most of the markets are seeing an increase in prices for the consumer and no profits whatsoever for the industry, that makes no sense at all,” Conti told CNBC in Brussels, where the chief executives of Europe’s leading energy companies have gathered to discuss European Union energy policy with policymakers. In a move that highlights the varying energy policies across Europe. the French constitutional court Friday upheld its ban on fracking in France , the Associated Press reported. The direction of EU policy and whether renewable energy initiatives should be state-funded has proved divisive among industry and governments. The European Commission, the EU executive arm, released a draft copy of its guidelines for state aid for energy production this week. In it, it dropped a reference to subsidies for nuclear power, which could affect whether governments can use public funding to help finance further plants.