EU WILL LOSE
Cheap natural gas has delivered a significant boost to US manufacturing exports, the International Monetary Fund has found.
Advances in shale rock drilling have led to a sharp rebound in US gas production, driving prices in the US to a steep discount to markets in Europe and Asia. US gas sells for $4 per million British thermal units, compared with $10 in Europe and close to $18 in Asia.
The price gap has led to a 6 per cent average increase in US manufactured product exports, the IMF wrote in its twice-yearly World Economic Outlook.
While energy costs generally represent a relatively small share of total input costs, "the lower natural gas price in the United States, which is likely to persist, has had a noticeable effect on US energy-intensive manufacturing exports," the IMF report said.
Lower prices for natural gas favour energy- and gas-intensive industries, such as steelmaking, oil refining, and nitrogen fertiliser production. The International Energy Agency has previously warned that Europe will lose a third of its share of global energy-intensive exports over the next two decades because its energy prices will remain stubbornly higher than those in the US.
According to the IMF, a 10 per cent fall in the relative price of US gas leads to an improvement in US industrial production relative to Europe of roughly 0.7 per cent after 1½ years.
"As more countries exploit new sources of natural gas, not only is the geography of trade in energy products likely to continue to change, but the geography of manufacturing exports is likely to change as well," the IMF said.
|June, 20, 13:15:00|
|June, 20, 13:10:00|
|June, 20, 13:05:00|
|June, 20, 13:00:00|
|June, 20, 12:55:00|
|June, 20, 12:50:00|
NPD - Preliminary production figures for May 2018 show an average daily production of 1 629 000 barrels of oil, NGL and condensate, which is a decrease of 236 000 barrels per day compared to April.
PLATTS - Libyan crude production has fallen around 400,000 b/d -- or nearly halved -- due to militia attacks on the eastern oil terminals of Ras Lanuf and Es Sider, the head of the country?s National Oil Corp. said Tuesday.
PLATTS - Venezuela's crude output averaged 1.36 million b/d in May, down from 1.41 million b/d in April, and 1.9 million b/d in May 2017, according to S&P Global Platts. The International Energy Agency said it could fall to 800,000 b/d or even lower next year.
PLATTS - Nigerian oil has been slow to sell this month as bidders for the country's July-loading heavy and light sweet crudes have been absent from the market. Market participants pegged the amount of unsold Nigerian barrels loading in July at 20 million-34 million barrels, amounting to roughly 40%-75% of what is produced in a month.