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By Le Figaro with AFP

Published on 03/29/2023 at 4:39 p.m.update on 03/29/2023 at 6:56 p.m.

Commercial crude oil reserves fell sharply to everyone’s surprise last week in the United States, according to figures released Wednesday by the United States Energy Information Agency (EIA), which also showed a new strengthening of demand.

At the end of the week ended March 24, US commercial inventories contracted by 7.5 million barrels, while analysts forecast an increase of 1.75 million, according to a consensus established by the Bloomberg agency. Nevertheless, commercial reserves remain very much higher than those measured a year ago (15% more).

The surprise announcement initially sent oil prices skyrocketing, but the momentum faded after just a few minutes. Around 3:00 p.m. GMT, the price of a barrel of American West Texas Intermediate (WTI) for delivery in May took 0.50% to 73.57 dollars. This unexpected drop is partly explained by the acceleration in the activity of American refineries, whose utilization rate climbed to 90.3%, against 88.6% the previous week, which increases their needs. in gross.

The months of February and March traditionally correspond to a maintenance phase for refineries, which therefore often operate at limited capacity, before ramping up as the start of the major displacement season approaches, at the end of May. Moreover, the period was also marked by a slowdown in imports (-14% over one week), while exports held up better (-7%).

The spark came from gasoline

The EIA also noted new signs of a strengthening of American demand (+2.2% over one week), which now stands 3% above its level last year at the same time. The spark came from gasoline, demand for which is at a three-month high, leading to a 2.9 million barrel decline in US gasoline inventories last week.

For Matt Smith, of Kpler, the renewed appetite for gasoline is driven by attractive fuel prices. The average price of gasoline is thus 18% lower than last year’s rate on the same date in the United States. Crude production fell slightly, to 12.2 million barrels per day, against 12.3 previously.

By Le Figaro with AFP

Posted on 03/28/2023 at 05:11

The United States and Japan signed an agreement on Tuesday 28 March aimed at strengthening “supply chains for critical minerals and batteries for electric vehicles” and strengthen exchanges between the two countries concerning these products essential to the energy transition and hitherto dominated by China.

The agreement should allow “facilitate trade, promote free and undistorted competition and set up solid social and environmental standards” concerning these products and thus allow the establishment of supply chains “secure, sound and fair” between the two countries, according to a statement from the services of White House Trade Ambassador Katherine Tai. “Japan is one of our most important partners and this agreement allows us to strengthen our relationship. This is an important moment that proves the United States continues to work with our allies and partners to strengthen supply chains across the IRA.”said Katherine Tai, quoted in the statement.

This agreement marks the first step towards including Japanese batteries and electric vehicles on the list of those likely to benefit from the $7,500 subsidy provided by the major climate plan (IRA) of President Biden, definitively voted last summer. “The IRA provides that free trade agreements such as this make parts from Japan eligible. The Treasury must specify the conditions by the end of the month”said a representative of the administration during a telephone press briefing.

A risk for the investment

The final decision will indeed rest with the Treasury Department, which must publish the list of eligible vehicles in the coming days. This also concerns the critical materials necessary for the energy transition, in particular for the manufacture of wind turbines and solar panels. The agreement is very similar to the one that the European Union in turn hopes to sign with the United States in order to allow European manufacturers to benefit from the same subsidies. Negotiations are ongoing between the two sides of the Atlantic. The EU has also expressed concerns about the risk of seeing itself out of the US market for solar panels and wind turbines.

Japan, as well as South Korea, had themselves expressed these same concerns after the approval of the IRA, seeing it as a risk for investment in these essential sectors. The Japanese auto industry said it was on its side “concerned” by the subject and follow developments carefully. The head of European diplomacy, Josep Borrell, recalled on March 14 that these subsidies did not respect, in this case, the rules of international trade. on many points“. Visiting Washington at the end of the week, the European Commissioner in charge of the digital economy, Margrethe Vestager, is due to meet US Commerce Secretary Gina Raimondo on Wednesday and then Treasury Secretary Janet Yellen on Friday.