World Energy Market
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The British prime minister is trying to convince her people that the country is not sinking.
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Second-largest steelmaker in the world, ArcelorMittal shuts plant in Europe, Here’s why
The second-largest steel producer in the world, ArcelorMittal, is the most recent business name to announce the closure of a factory in Europe as a result of rising gas and energy costs.
Due to the outrageously high surge in energy prices, ArcelorMittal is shutting down one of the two existing blast furnaces at its steelworks plant in Bremen of Germany, starting by the end of September until any further updates.
According to ArcelorMittal, they are taking this action in Europe because it is unable to operate all of its factories profitably due to the high cost of energy.
The decision was made by the steel giant in parts due to weak market demand, a bleak economic outlook, and consistently high CO2 expenses in steel manufacturing.
According to the CEO of ArcelorMittal Germany, Reiner Blaschek, the high cost of gas and electricity is severely hampering competitiveness.
Additionally, starting in October, we will be further burdened by the German government's proposed gas levy.
Blaschek urged elected officials to act quickly to bring energy prices under control right away.
Due to exorbitant energy costs, aluminum smelters in Europe have also started closing recently.
According to a poll conducted by the Association of German Chambers of Industry and Commerce, DIHK, at the end of July, one out of every six industrial enterprises in Germany feels compelled to cut production as a result of high energy prices.
According to a poll of 3,500 enterprises from all industries and areas in Germany, about a quarter of those compelled to scale back output had already done so by the end of July, and then another one-quarter are in the process of doing so.
According to the DIHK poll, 32% of businesses expect to restrict production or have already begun doing so, including stopping entire production lines. This has an especially negative impact on energy-intensive businesses and industries.
Second-largest steelmaker in the world, ArcelorMittal shuts plant in Europe, Here’s why
Following the Russian invasion of Ukraine in February this year, Moscow shut off gas shipments to Europe, raised prices, and posed a risk of recession and energy shortages as winter is approaching.economictimes.indiatimes.com
Germany continues to be hit by the economic crisis
@Cabatli_TR @Test7 @Zafer @Ryder @T-123456 @MisterLike @Yasar @Nilgiri
It is matter of time until a big econimic crisis explode in Europe. Not only Germany, Belgium have closed of of Petro Chemical factories. Netherlands same story, average housholder paid 110 euro energy bill before the war of Ukrain. It is 290 euro, i can not imagine what the fak we have to pay in the winter
. I al ready have electric heated clothing....
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somebody should write sitr len to ursila and translate it....
i don't have twitter account...
CERN draws up shutdown plans to save energy
CERN, the European Center for Nuclear Research, is preparing to idle some of its particle accelerators to save electricity, currently in short supply due to the war in Ukraine.
Serge Claudet, head of the CERN Energy Management Commission, lately told The Wall Street Journal that CERN is making plans to shut down some of its eight particle accelerators, including the Large Hadron Collider (LHC), to assure the stability of the electrical grid in Europe.
The proposal is expected to be presented to the governments of France and Switzerland by the end of the month.
"Given the current context and as part of its social responsibility, CERN is drawing up a plan to reduce its energy consumption this winter, which will be put forward to the CERN Council during the forthcoming meeting the week of 26 September," a CERN spokesperson told The Register in an email.
The $4.4 billion LHC is the world's largest publicly known particle collider, consisting of a 27 km (17 mi) circular tunnel in the vicinity of Geneva, Switzerland and France. It was used to observe the Higgs boson in 2012. The giant particle smasher resumed operations on July 5, 2022, after a three-year shutdown for maintenance and upgrades.
Presently, CERN is using the LHC to explore the origin of mass, dark matter and dark energy, antimatter, and other gaps in the Standard Model of particle physics.
According to The Wall Street Journal, CERN officials are talking to representatives of France's state-run power company EDF SA to arrange a day's warning should a shutdown become necessary to save power. CERN aims to keep the LHC operational if possible by prioritizing the shutdown of its other particle accelerators, for a 25 percent energy savings.
CERN says the LHC and associated experiments have consumed between 600 GWh and 750 GWh per year, while total energy consumption for CERN is about 1.3 TWh per year.
France produces about 500 TWh per year, the Geneva canton of Switzerland produces 3 TWh per year, and the whole of the EU manages to generate about 3,400 TWh annually.
Operating the LHC and other particle probing equipment now looks a bit extravagant in light of European energy shortfall following from the illegal Russian invasion of Ukraine and the ensuing diplomatic and trade fallout. France and other countries in Europe rely on natural gas and oil supplied by Russia, which has become scarce since last week when Russia indefinitely suspended gas flowing from its Nord Stream 1 pipeline.
France has accused Russia of using energy supplies as "a weapon of war," according to Reuters.
Dmytro Kuleba, Minister of Foreign Affairs of Ukraine, has urged European officials to stand united against Russia rather than selling out Ukraine to resolve unrest over energy prices.
On Tuesday, European Commissioner for Energy Kadri Simson told The Associated Press that the EU's energy ministers plan to meet in Brussels on Friday to discuss how to deal with the energy market turmoil.
CERN draws up shutdown plans to save energy
Particle accelerators could be next casualty of Russia's war on Ukraine
Putin announced that they will not sell oil or gas to countries in the world that have passed the ceiling price application. G7 countries wanted to impose a price ceiling to slash Russia's energy bill
Doomsday has come to your door, folks. Store dry food in your home. Prepare for the apocalypse before stores are looted
Preliminary Guidance on Implementation of a Maritime Services Policy and Related Price Exception for Seaborne Russian Oil
Big Challenges for Russian Oil Price Cap
The G7 has confirmed its plans to impose a price cap on Russian oil. The goal is to keep Russian crude oil and petroleum products on the market to avoid a price spike, while depriving the country of essential revenues for its economy and its war machine. The price cap is a novel approach. Most energy sanctions target export volumes, while this plan would cut prices. But rather than set a new, globally recognized price for Russian oil, the cap is likely to create a multitiered price system. It would cut but not decimate Russia’s oil revenue.
The United States has pushed for the price cap in response to the European Union’s risker plan to ban Russian oil imports. In June, the European Union imposed a sanctions package that will ban seaborne imports of crude oil as of December 5 and ban petroleum product imports as of February 5, 2023 (with some exceptions). Crucially, the sanctions also ban EU companies from providing shipping insurance, brokering services, or financing for oil exports from Russia to third countries. U.S. Treasury officials suggest the EU embargo could reduce Russia’s exports by three to five million barrels per day, which would trigger a massive price spike.
Under the proposed plan, shippers and insurers would have to prove they are supporting Russian oil trade at or below the price cap. Unauthorized trade above that price would require buyers to seek brokering, shipping, insurance, and reinsurance from outside the participating countries. These services would become more scarce and more expensive. For now, there are no plans to impose secondary sanctions to force countries to participate. Many details remain uncertain, and the terms have to be agreed before December 5, when EU sanctions take effect.
There are at least four big challenges for the price cap. First, how will Russia respond? It has already threatened to withhold oil from countries joining the price cap. Supporters of the idea argue that this is a bluff. They note that Russia has limited storage capacity and that halting production in Western Siberia could freeze equipment and damage its oil infrastructure. But it seems presumptuous to assume Russia will accept far lower prices. President Vladimir Putin may bet that cutting off Russian oil will panic the market, creating a price shock that will weaken Western resolve.
Second, will Asian buyers get on board? Currently, India and China are enjoying considerable discounts for Russian crude and can purchase as much as they like. This trade is still legal if they do not deal directly with sanctioned Russian companies or individuals. In theory, the price cap will allow them to buy crude and products at even lower prices. Yet India and China may be skeptical about signing on to a cumbersome monitoring and enforcement system. They will also chafe at another imposition of Western energy sanctions.
Third, what will happen if there are multiple prices in the market? Consider how Russian exports have evolved since February. After Western companies stopped buying, Russia was forced to discount its oil but found plenty of willing customers. Middle Eastern refiners, for example, have been buying Russian crude, refining it, and exporting products. Since demand for cheaper Russian oil will outstrip supply, the price cap could create multiple prices: the global crude price, the capped price for Russian oil, and a shadow price that would settle somewhere between the two. The spread will create enormous arbitrage opportunities for traders.
Fourth, monitoring and enforcement will be challenging. Market players manage to evade sanctions on Iranian and Venezuelan oil through ship-to-ship transfers, illicit tanker trade, and crude blending. Refiners and other buyers will probably find ways to beat the proposed requirements for trading Russian oil. They may seek letters of credit from multiple banks or use several subsidiaries to document deals at the approved price, while paying more in reality.
The oil market is full of clever, rapacious people with strong incentives to bend or break rules. If the price cap is imposed, economic theory will collide with the messy reality of the market. Still, this is a better option than the EU embargo and insurance ban. If the price cap legalizes oil trade with Russia but fails to secure full cooperation from India, China, and other countries, the price cap will score a partial victory. It will avoid the worst-case scenario of a market shortage and a huge price spike—but probably will not dramatically cut Russia’s oil revenue.
Big Challenges for Russian Oil Price Cap
The Russian oil price cap is not doomed to fail, but at best it will score a partial victory. It could create a multitiered price system, with a shadow price for Russian exports that will limit but not crush its oil revenues.
Zafer
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Perhaps KSA needs to diversify their security providers.
Germany Cranks Up Chemical Imports as Energy Crisis Hikes Costs
Germany is increasingly getting vital chemicals from abroad as the country’s industrial giants like BASF SE struggle with sky-rocketing energy prices from Russian gas cuts.
Chemical import volumes have almost doubled this year as the crisis deepened. Germany imported around 2.8 billion tonnes of inorganic chemicals in the first half of 2022, according to Germany’s federal statistics office. That’s around 40% more in volume terms than during the same period a year ago.
Meanwhile, domestic chemical production has fallen precipitously as manufacturers curtail production due to sky-high gas costs.
Read more: Europe Gas Jumps With Worries Energy Crunch Will Stall Economies
The shift underscores the depth of the energy crisis in Germany, which is suffering from higher prices than neighboring countries due to its dependence on Russian gas. The drop in domestic production could be an early sign of the economic crisis that is building in the country.
BASF, Germany’s largest chemical producer, said in July it had begun buying ammonia, rather than producing it, to reduce gas consumption at its Ludwigshafen factory. Meanwhile, Abu Dhabi National Oil Company sent its first shipment of low-carbon ammonia to Germany this month.
“We are going to see meaningful import substitution of energy- and gas-intensive products,” said Oliver Rakau, an economist at Oxford Economics. “The evidence is likely to mount in the coming months.”
Read more: Germany Risks a Factory Exodus as Energy Prices Bite Hard
Bloomberg - Are you a robot?
www.bloomberg.com
Sami1234
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During Trump's administration (huge MBS supporter) oil prices went down to $30. most of the stats in the US that benefited from that (Minnesota, Wisconsin, Michigan and Pennsylvania) they all turned blue and voted for Biden. So what was the point of all that?
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Energy prices went down because Trump decided (correctly) that the US has massive resource reserves itself that remain untapped so why be so heavily reliant on foreign dictatorships? Then Biden came in and put the kibosh on that and here we are.
Some businesses in Italy started protesting high bills in their shop windows
By hanging the message "Invoice has arrived" on a cafeteria window in the capital city of Rome, he compared the electricity bills received last year and this year, and showed his customers that there was a 3-fold increase in their bills.
Laura Ramoni, the owner of the cafeteria, told the Italian press, "Invoices have almost tripled. They have increased from 900 euros to 2,600 euros per month. We had to lay off two people. We turned off one of the lights, but it is not enough. The government has to give some help. Every day next month. "We live in fear of closing our shop. It's like a second Covid-19 for us." she said.
Similarly, some shops hang high bills in their windows protesting, "Small and medium-sized businesses also consume a lot of energy. Many will have to close if no help comes from the government." made the statement.
Monica Lucarelli, who provides consultancy services to some businesses in Rome, also told the Italian press, "There are many businesses that have not been taken into account by the government until now but need urgent help. For example, there are more than 2,000 bakeries in Rome. Production due to the increase in energy prices. Their costs have increased by 30 percent. Likewise, dry cleaning shops. Most of them are family businesses and they can't carry this burden anymore." she said.
The organization, which is affiliated with small and micro-sized enterprises in Italy, Confartigianato, in the analysis it shared with the press recently, said, "High energy prices put 881 thousand 264 small and micro-sized enterprises with 3 million 529 thousand employees at risk. 20.6 percent of employment in this Italian business system. equal to." had warned.
www.aa.com.tr
Italy is about to go bankrupt.
@Cabatli_TR @Test7 @T-123456 @Zafer @Ryder @what @MisterLike
By hanging the message "Invoice has arrived" on a cafeteria window in the capital city of Rome, he compared the electricity bills received last year and this year, and showed his customers that there was a 3-fold increase in their bills.
Laura Ramoni, the owner of the cafeteria, told the Italian press, "Invoices have almost tripled. They have increased from 900 euros to 2,600 euros per month. We had to lay off two people. We turned off one of the lights, but it is not enough. The government has to give some help. Every day next month. "We live in fear of closing our shop. It's like a second Covid-19 for us." she said.
Similarly, some shops hang high bills in their windows protesting, "Small and medium-sized businesses also consume a lot of energy. Many will have to close if no help comes from the government." made the statement.
Monica Lucarelli, who provides consultancy services to some businesses in Rome, also told the Italian press, "There are many businesses that have not been taken into account by the government until now but need urgent help. For example, there are more than 2,000 bakeries in Rome. Production due to the increase in energy prices. Their costs have increased by 30 percent. Likewise, dry cleaning shops. Most of them are family businesses and they can't carry this burden anymore." she said.
The organization, which is affiliated with small and micro-sized enterprises in Italy, Confartigianato, in the analysis it shared with the press recently, said, "High energy prices put 881 thousand 264 small and micro-sized enterprises with 3 million 529 thousand employees at risk. 20.6 percent of employment in this Italian business system. equal to." had warned.
İtalya'da bazı işletmeler yüksek faturaları vitrinlerinde protesto etmeye başladı
Rusya-Ukrayna Savaşı'nın etkisiyle Avrupa'da başlayan enerji krizinden dolayı yüksek faturalara daha fazla dayanamayan İtalya'daki bazı işletmeler dükkanlarında protestolara başladı. - Anadolu Ajansı
www.aa.com.tr
Italy is about to go bankrupt.
@Cabatli_TR @Test7 @T-123456 @Zafer @Ryder @what @MisterLike
