The Paradigm Shift Channel ⏳

2022-08-20 01:42:46 Germany's producer price inflation accelerated unexpectedly to a new record high in July. Producer prices grew 37.2% year-over-year in July, well above the 32.7 percent surge in June. Among other components of the producer price index, prices of intermediate goods increased 19.1% and those for capital goods grew 8.3%.

Evonik Industries AG, the world’s second-largest chemical producer with plants in 27 countries, is substituting as much as 40% of its German gas volumes with LPG and coal, and passing some higher costs on to customers. Europe’s largest copper producer, Hamburg-based Aurubis AG, aims to minimize gas use and pass on power costs to customers.

Background:

Low water levels affects trade along Rhine river.

German electricity up almost 500% from 1 year ago.

Farmers protest climate change policy by German politicians.

German gov't introduces new tax on gas users in October.

German politicians continue to play sanction games with Russia's gas turbines. Open / Comment

2022-08-19 19:01:18 US natural gas prices rise to 14 year highs as concerns that increasing domestic and European demand for the fuel will result in tighter US supplies ahead of the winter season. Texas' Freeport LNG is expected to roar back online in October, which will divert more available natural gas supply towards LNG exports, keeping balances tight for the winter season.

The US added only 18 billion cubic feet into its natural gas inventories for the week ending August 12. Heading into the fall and winter, this is a comparatively low injection rate. During the same week last year, the inventories gained 46 Bcf. U.S. supplies are still more than 10% below normal levels for this time of year. Open / Comment

2022-08-19 18:40:07 Venezuela had restarted shipments to Europe after 2 years of US sanctions under a deal that allows them to trade oil for debt relief. However, the gov't has now suspended those shipments, saying it is no longer interested in oil-for-debt deals and instead wants refined fuels from Italian and Spanish producers in exchange for crude.

Venezuela's own refineries are struggling to remain in operation because of lack of investment and lack of repairs. Refined fuels would help them to get back on their feet in terms of energy and industry.

Venezuela's heavy oil operations need imported diluents such as heavy naphtha. PDVSA has relied mostly on Iranian diluents to turn its extra heavy crude into exportable grades. Open / Comment

2022-08-19 18:21:06 Germany - Shell slashed its refinery output at its Shell Energy and Chemicals Park Rheinland fuel-making facility as low Rhine River levels halted the flow of goods. Shell did not reveal how much of the refinery’s capacity had been cut. It is capable of processing 345,000 barrels of crude oil per day.

Switzerland will further tap its strategic fuel stocks as imports along the River Rhine to the land-locked country have almost come to a standstill. The government will release another 490,000 cubic meters -- about 3 million barrels -- of fuel until the end of September.

Background:
Warnings of Rhine low levels have been recently issued.

Freight shipping on the river continues but with vessels sometimes forced to sail 75% empty.

German companies faced supply bottlenecks and production problems in 2018 for this situation.

This is preventing at least two power plants in Germany from getting all the coal they need. Open / Comment

2022-06-23 21:58:59 Sri Lanka’s prime minister says the island nation’s debt-laden economy has “collapsed” as it runs out of money to pay for food and fuel. Sri Lankans are skipping meals as they endure shortages, lining up for hours to try to buy scarce fuel. The government owes $51 billion and is unable to make interest payments on its loans.

India's top diplomat held talks with Sri Lanka's president and prime minister as India signalled its willingness to go beyond the $4 billion in loans, swaps and aid that it has already provided.

Prime Minister Wickremesinghe noted that the only safe option before the country now to get out of the dire situation it is facing, is to hold discussions with the IMF. Open / Comment

2022-06-23 21:28:28 UK inflation rises to fresh 40-year peak of 9.1% as cost-of-living crisis worsens. The average fuel prices rose again to new records with petrol increased to 189.33p/litre and diesel to 197.11p/litre.

UK rail strike: second day of protests yesterday after negotiations with the National Union of Rail, Maritime and Transport Workers fail again.

The breakdown of regulatory co-operation between the UK and EU over financial services has become “collateral damage” in the dispute over the Northern Irish protocol.

Returning the UK’s stockpile of weapons to pre-Ukraine war levels could take years, the head of the armed forces has said. Open / Comment

2022-06-22 21:35:54 A potential European Commission (EC) act to classify lithium as a Category 1A reproductive toxin in this year’s fourth quarter could undermine the European Union (EU)’s attempt to create and support a domestic battery materials supply chain. Should the European Commission take this decision, it may undermine the EU’s energy security and net zero goals, in addition to increasing costs for the domestic EV market.

Zimbabwe holds Africa's largest lithium reserves, the fifth-largest globally, with its province of Masvingo home to the Bikita mine - site of the world's largest-known deposit of the metal at around 11 million tonnes. Chinese companies are making in roads in acquisitions of lithium mining companies in Zimbabwe after two decades of Western economic and political sanctions. Open / Comment

2022-06-22 21:32:55 European Union leaders aim to maintain pressure on Russia, with gold among assets that may be targeted in a possible next round of sanctions.

UN said that governments should improve and publish their gold trade data, to help eliminate smuggling and violence around mines, and the trading of unethical gold extracted from areas of armed conflict.

Switzerland imported gold from Russia for the first time since February, showing the industry’s stance toward the nation’s precious metals may be softening. Most refiners swore off accepting new gold from Russia after the London Bullion Market Association removed the country’s own fabricators from its accredited list. While that was viewed as a de facto ban on fresh Russian gold from the London market, one of the world’s biggest, the rules don’t prohibit Russian metal from being processed by other refiners . Open / Comment

2022-06-22 21:27:26 Credit union and banking trade groups have released a joint letter to the chair and ranking member of the House Financial Services Committee, warning of “devastating consequences” if the Federal Reserve moves forward with a Central Bank Digital Currency… Open / Comment

2022-06-21 22:35:07 Producer price inflation in Germany rose at a record pace in May, the fastest increase since the beginning of data collection in 1949. prices ballooned 33.6% year-on-year last month, following April’s 33.5% increase. On a monthly basis, producer prices gained 1.6% after growing 2.8% in April. Price increases continue to be driven primarily by soaring energy costs, which were up 87.1% from the previous year. The price of natural gas, which German industry relies on heavily, skyrocketed by 148.1%. As a result, memes of Weimar Germany hyperinflation are appearing on social media. (Photo)

German Economy Minister claims this is an economic attack by President Putin , to stir up fear. Concerns arise over future high interest burden on government debt. For 2024 interest payments on bonds is estimated at just under 25.2 billion euros. Open / Comment