Home » Posts tagged 'zerohedge'

Tag Archives: zerohedge

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Post Archives by Category

“Please Don’t Panic Buy”: France Taps Strategic Reserve After Gas Stations Run Out Of Fuel

“Please Don’t Panic Buy”: France Taps Strategic Reserve After Gas Stations Run Out Of Fuel

There are “emergency” reasons to drain one’s petroleum reserve – like, for example, approaching midterm elections that give you absolutely no right to drain a country’s strategic reserve but you do it anyway in hope of picking up some votes from idiots who don’t realize that gas will soar to record highs right after the elections – and then there are emergency reasons.

The Biden administration, of course, is dealing with a the quote-unquote emergency…

… while France is about to get hit with a bad case of the real deal.

Several days after we learned that gas stations in France have run out of gasoline due to long-running oil refinery strikes, today the French government said that France has tapped its strategic fuel reserves to resupply petrol stations that have run dry, amid ongoing strikes by workers that have stunted refining production and blocked gasoline deliveries.

Government spokesman Olivier Veran acknowledged “tensions” but said there was no shortage of fuel stocks on a national level. He urged consumers not to panic-buy, which of course is the surest way to encourage panic buying, long lines, rationing and all the ugly scenes from those black and white photos of the 1970s.

In the hardest-hit Hauts-de-France region, authorities didn’t even bother with rationing and banned outright the sale of petrol and diesel in jerry cans and other portable containers.

“We are obviously monitoring very, very closely the situation together with the operators and, here and there, when it was necessary, we have used our strategic stocks to enable the stations to be supplied,” Veran told reporters.

…click on the above link to read the rest of the article…

Power Grid Collapse In Bangladesh Leaves 140 Million People In Dark

Power Grid Collapse In Bangladesh Leaves 140 Million People In Dark

Bangladesh’s national power grid collapsed Tuesday afternoon, plunging 140 million people, or nearly everyone in the country, into darkness, AFP reported.

Reuters spoke with officials at the state-run Bangladesh Power Development Board, who said power transmission failed in the eastern part of the country and then tripped power plants nationwide, cutting off power to the capital, Dhaka, and other major metro areas.

Bangladesh Power Development Board official Shameem Hasan said engineers are investigating ‘glitches’ in the power system. He said restoring the system could take several hours once issues are resolved.

“We are trying to restore the system,” Hasan said. 

Bangladesh is one of the world’s largest garment exporters after China. The country is also an emerging outsourcing destination for business operations, such as call centers…

*Developing… 

Revolution In Air As Brits Burn Power Bills Amid Historic Energy Crisis

Revolution In Air As Brits Burn Power Bills Amid Historic Energy Crisis

Energy prices for millions of households across the UK rose on Saturday. Soaring power bills amid the worst cost-of-living crisis in a generation led to a continuation of growing discontent ahead of the dark winter.

Thousands of Brits marched in London and other metro areas this weekend in protest of being thrown into energy poverty while inflation is at forty-year highs.

There were countless videos on social media showing Brits holding signs about their dire financial situation. “Can’t afford to live,” “Freeze profit, not people,” and “Eat the Tories,” read some of the signs people held. 

The protest was organized by Don’t Pay UK, an anonymous group spearheading the effort to have more than one million Brits boycott paying their power bills this winter (the movement is nearly 200,000 strong).

“Millions of us simply won’t be able to keep our heads above water and many will freeze when the weather turns cold,” a spokesman for the campaign said.

The protest coincided with the new energy price cap that took effect on Saturday, increasing the power bill average per household from £1,971 to £2,500 annually. Without this government intervention, annual bills would’ve continued skyrocketing.

New Prime Minister Liz Truss said that the government’s support for households and businesses shields them from energy hyperinflation. Meanwhile, Truss’ support is already in turmoil. Labour leads the Conservatives by a stunning 33%, according to a recent YouGov poll, up from 14% when she assumed power just three weeks ago.

However, the price cap for a typical household has doubled since last year — the massive increase has sparked discontent among Brits who are crushed by a cost-of-living crisis.

The UK Misery Index is at its worst level in three decades. We noted that Half Of UK Households Will Be In Fuel-Poverty By January last week. 

…click on the above link to read the rest of the article…

Russian Gas Stops Flowing To Italy After ‘Problem’ In Austria

Russian Gas Stops Flowing To Italy After ‘Problem’ In Austria

Russian energy giant Gazprom PJSC suspended natural gas deliveries to Eni SpA, Italy’s largest oil company, on Saturday, reported Bloomberg.

“Gazprom informed that it is not able to confirm the gas volumes requested for today, stating that it’s not possible to supply gas through Austria. Therefore, today’s Russian gas supplies to Eni through the Tarvisio entry point will be at zero. Eni will provide updates in case supplies will be restored,” Eni wrote in a statement on its website. 

An Eni spokesperson told Bloomberg that Austria is still receiving NatGas from Gazprom:

“We are working to check with Gazprom whether it is possible to reactivate the flows to Italy.” 

Gazprom said NatGas flows from Austria to Italy were suspended because the Austrian operator refused to confirm “transport nominations” after recent regulatory changes in the landlocked country in the southern part of Central Europe.

It’s important to note most of the Russian NatGas delivered to Italy flows through Ukraine via the Trans Austria Gas Pipeline to Tarvisio in northern Italy on the border with Austria. Before Russia invaded Ukraine, Italy imported 95% of its NatGas, of which 45% came from Russia.

Those figures are drastically different today as Italy rejiggers its energy supply chain away from Russia and finds alternative supplies of NatGas from North Africa. Before this weekend, Russian NatGas accounted for only 10% of Italy’s imports. The new suppliers will help Italy boost storage levels ahead of winter.

“Outgoing Prime Minister Mario Draghi has been scouring the globe to secure gas supplies to protect Italy from potential supply interruptions from Russia, which has been putting pressure on the European Union over several rounds of sanctions in response to the invasion. Italy has been one of the most successful countries to source alternative supplies,” Bloomberg noted.

…click on the above link to read the rest of the article…

Faced With ‘Acts Of Sabotage’, EU Countries Rush To Secure Energy Assets

Faced With ‘Acts Of Sabotage’, EU Countries Rush To Secure Energy Assets

Multiple explosions under the Baltic Sea and the rupture of the Nord Stream pipeline system from Russia to Germany appear to be “sabotage,” NATO and EU officials said this week. A fourth leak was confirmed Thursday on the pipelines as EU countries are in overdrive to secure energy infrastructure that could be future targets.

“The main message sent by this act, described as ‘sabotage,’ is the vulnerability of all this equipment,” Phuc-Vinh Nguyen, an energy researcher at the Institut Jacques-Delors Paris think tank, told the French newspaper Le Monde.

Nguyen warned, “if such ‘accidents’ happened on a natural gas pipeline between Norway and Europe or Algeria and Europe, for example, it would be really problematic.”

Across the EU, warning after NS1 and NS2 were taken out by “highly effective explosive devices” has forced several countries to beef up the security of critical energy infrastructure this week.

We first reported Norway, now Europe’s top NatGas supplier (displacing Russia), increased security at infrastructure sites, land terminals, and platforms on the Norwegian continental shelf. The country’s Petroleum Safety Authority warned that there had been reports of mysterious drones buzzing offshore platforms.

Drones have also been spotted at France’s TotalEnergies offshore rigs in the Danish North Sea, igniting concerns that someone or even possibly a nation-state is trying to spark havoc for the European energy industry, according to Bloomberg.

The mysterious drone was spotted Wednesday near its Halfdan B oil and gas field, TotalEnergies said, adding it has increased “vigilance around security for all of our offshore assets and onshore locations.”

“I just hope that there is no idea behind it to extend the war beyond the border of Ukraine to the North Sea,” Total CEO Patrick Pouyanne told Bloomberg in an interview.

…click on the above link to read the rest of the article…

Watch Live: Putin Declares Annexation Of Eastern Ukraine

Watch Live: Putin Declares Annexation Of Eastern Ukraine

Just ahead of a Friday ceremony declaring the official annexations of the four occupied Ukrainian regions which held controversial referendums, Russian President Vladimir Putin on Thursday signed two decrees which recognized the “independence” of Kherson and Zaporozhye regions.

“Recognize the state sovereignty and independence” of the Kherson and Zaporozhye regions “effective from the day of signing,” the two decrees stated. This paved the way for Friday’s ceremony where he’s expected to give a major speech which will incorporate those two territories plus Donetsk and Luhansk. WATCH Putin’s speech declaring annexation live:

According to Russian state media, “In the documents, Putin refers to the universally recognized principles and norms of international law, and the principle of equal rights and self-determination of peoples, enshrined in the UN Charter.”

In contrast to this Kremlin perspective, Western officials and media sources are slamming the big ‘land grab’ – which comes at a moment the entirety of these territories are not yet under Russian military control. A White House statement said in response to the “sham” referendums, “The United States will never recognize Ukrainian territory as anything other than part of Ukraine. Russia’s referenda are a sham – a false pretext to try to annex parts of Ukraine by force in flagrant violation of international law, including the United Nations Charter.”

Putin said in a televised meeting with officials on Tuesday as voting closed in the four regions: “Saving people in the territories where this referendum is taking place… is the focus of the attention of our entire society and of the entire country.”

…click on the above link to read the rest of the article…

 

Hurricane Ian Strengthens To Powerful Category 4 As Florida Landfall Imminent

Hurricane Ian Strengthens To Powerful Category 4 As Florida Landfall Imminent

Hurricane Ian strengthened into a powerful Category 4 storm expected to make landfall on Florida’s southwest coast today and then traverse central Florida and emerge in the Atlantic by Thursday.

At 0500 ET, the National Hurricane Center said Ian sustained maximum winds of 140 mph and gusts up to 165 mph. The storm’s center was about 75 miles west-southwest of Naples and 105 miles south-southwest of Punta Gorda, moving north-northeast at 10 mph.

“Ian is forecast to approach the west coast of Florida as an extremely dangerous major hurricane, weakening is expected after landfall.

“On the forecast track, the center of Ian is expected to approach the west coast of Florida within the hurricane warning area this morning, and move onshore later today. The center of Ian is forecast to move over central Florida tonight and Thursday morning and emerge over the western Atlantic by late Thursday,” NHC senior hurricane specialist Daniel Brown told Orlando Sentinel

Ian’s path has shifted south of Tampa Bay, and landfall is now expected between Fort Myers and Sarasota on Wednesday morning or early afternoon before moving across the central part of the state.

NHC warned a “life-threatening storm surge is expected along the Florida west coast and the Lower Florida Keys,” with “devastating wind damage” expected near Ian’s center.

“Catastrophic flooding is expected across portions of central Florida with considerable flooding in southern Florida, northern Florida, southeastern Georgia and coastal South Carolina,” the weather agency continued.

“It’s going to be historic,” National Weather Service Melbourne meteorologist Kole Fehling in Melbourne, referring to the storm’s landfall impacts.

Fehling said Central Florida could be swamped with 15 to 20 inches of rainfall, with some areas receiving upwards of 24 inches.

…click on the above link to read the rest of the article…

In Dramatic Escalation, European Nat Gas Prices Soar After Gazprom Warns Ukraine Flows At Risk

In Dramatic Escalation, European Nat Gas Prices Soar After Gazprom Warns Ukraine Flows At Risk

In a day of constant news surrounding European gas flows, including the potential sabotage of the Nord Stream pipeline, moments ago, Russia state-owned gas giant Gazprom PJSC warned that another major source of gas flows to Europe was at risk, just hours after three massive gas pipelines were hit by suspected sabotage.

As Bloomberg reports, in a dramatic escalation of the energy standoff between Russia and Europe in little over 24 hours, the Nord Stream pipeline was knocked out by what German officials said looked like sabotage. Gazprom then said that one of two remaining routes bringing gas to Europe – via Ukraine – was at risk because of a legal spat.

Specifically, as Reuters notes, Gazprom rejected all claims from Ukraine’s energy firm Naftogaz in arbitration proceedings over Russian gas transit, and had notified the arbitration court. It also said that Russia may introduce sanctions against Naftogaz in case it further pursues the arbitration case, meaning Gazprom would be prohibited by the sanctions from paying Ukraine the transit fees.

Naftogaz had initiated a new arbitration proceeding against Gazprom earlier this month, saying the Russian company did not pay for the rendered service of gas transportation through Ukraine. The company had said “funds were not paid by Gazprom, neither on time nor in full” for the gas transit.

Gazprom said on Tuesday that Naftogaz had no “appropriate reasons” to reject its obligations on transit via the Sokhranovka point, a key route for Russian gas exports to Europe.

In May, Ukraine suspended the flow of gas through Sokhranovka, which it said delivers almost a third of the fuel piped from Russia to Europe through Ukraine, blaming Moscow for the move and saying it would move the flows elsewhere.

…click on the above link to read the rest of the article…

Blasts Detected Near Nord Stream As Images Reveal “Huge Leak”

Blasts Detected Near Nord Stream As Images Reveal “Huge Leak”

Update (1025ET):

AFP News reported the US is ‘ready to provide support’ to Europe after the Nord Stream pipeline system leaks.

There was no further information on what type of support, but one can only imagine it would involve increased LNG cargo shipments to the EU.

There’s only one issue…

* * *

Update (0932ET): 

Swedish broadcaster SVT reported that the Swedish National Seismic Network detected two underwater explosions near the Nord Stream pipeline system on Monday.

“One of the explosions had a magnitude of 2.3, and was registered at as many as 30 measuring stations in southern Sweden,” SVT said. 

Bjorn Lund, a professor in seismology and director of the Swedish National Seismic Network, said these two seismic events were explosions.

Here’s a map of the three leaks on the Nord Stream pipeline system.

Bloomberg’s Javier Blas said the size of the “gas leak is huge.”

So the question remains what (or who) caused the blasts?

Remember what President Biden said weeks before Russia invaded Ukraine:

 “If Russia invades…then there will be no longer a Nord Stream 2. We will bring an end to it.”

…click on the above link to read the rest of the article…

Damage To Nord Stream Pipelines “Unprecedented;” May Have Been ‘Sabotaged’

Damage To Nord Stream Pipelines “Unprecedented;” May Have Been ‘Sabotaged’

Update (0842ET):

Sweden’s government held a crisis management meeting with other public authorities over the damage to the Nord Stream pipeline system, Swedish daily newspaper Aftonbaldet said, citing comments from Foreign Minister Ann Linde.

Linde said Sweden may discuss the pipeline damage with Denmark later today.

Denmark is tightening security around all energy assets as some European officials speculate the NS pipeline system was sabotaged.

* * *

The plot thickens about what caused damage to three lines of the Nord Stream gas-pipeline system under the Baltic Sea to Europe as some European officials now suspect sabotage.

Nord Stream AG, the operator of the NS pipeline system, published a statement Tuesday that read, “the destruction that happened within one day at three lines of the Nord Stream pipeline system is unprecedented … and impossible now to estimate the timeframe for restoring operations of the gas shipment infrastructure.”

On Monday, NS2 gas pipeline and two NS1 lines reported rapid pressure drops, with gas leaks reported by Swedish and Danish authorities in the Baltic Sea near the exclusive economic zone southeast of Bornholm island.

A more in-depth view of the incident area.

Pressure drops in the NS gas-pipeline system could be the biggest signal that flows via NS1 might not resume this winter. Germany and surrounding countries are investigating the incident. NS2 cannot impact flows to the EU because the controversial idled conduit was never operational after German Chancellor Olaf Scholz canceled it after Russia invaded Ukraine earlier this year.

Klaus Mueller, the president of the German energy network regulator, tweeted that the market situation remains “tense,” but Germany and the EU are no longer dependent on NS supplies.

Nord Stream AG issued an outage message that is active until Oct. 26, while the German economy ministry said it’s investigating the incident.

…click on the above link to read the rest of the article…

IEA Head Warns “Wild West” Energy Scenario Could Unravel Europe

IEA Head Warns “Wild West” Energy Scenario Could Unravel Europe

The unity of EU member states could be in jeopardy as a dark winter fast approaches set to trigger a ‘continental scramble’ for energy resources. European countries would be in a “wild west scenario” in their attempt to pursue energy security which would result in souring relations with neighbors and cause worsening fuel and power shortages with risks of social unrest, warned Fatih Birol, the head of the International Energy Agency, who was quoted by the Financial Times.

Birol spoke Thursday in an interview at the inaugural Global Clean Energy Action Forum in Pittsburgh, Pennsylvania, when he explained the energy crisis threatens to shatter EU unity as countries could restrict or stop trading energy resources with neighbors to ensure their own energy security.

“The implications will be very bad for energy, very bad for the economy, but extremely bad politically … if Europe fails this test in energy, it can go beyond energy implications,” Birol said

The head of the Paris-based watchdog energy group was very straightforward about the two possible scenarios:

“EU and members will work in solidarity, supporting each other . . . or there is another scenario, if everybody is for himself.”

Meanwhile, earlier this month, the president of the European Commission, Ursula von der Leyen, was firm in her state of the union address that the unity of EU member states will prevail through this energy crisis.

But there has already been a breakdown in unity among some member states, as FT explains:

Norway’s Nordic neighbours last month blasted Oslo for “selfish” behaviour as it considered pausing electricity exports while it refilled its hydroelectric reservoirs. 

…click on the above link to read the rest of the article…

“Ferocious Fiona” Makes Landfall In Canada, Leaving Hundreds Of Thousands Without Power

“Ferocious Fiona” Makes Landfall In Canada, Leaving Hundreds Of Thousands Without Power

Powerful storm Fiona battered eastern Canada on Saturday with hurricane-force winds and torrential rains, leaving hundreds of thousands of people without power.

The National Hurricane Center said Post-Tropical Cyclone Fiona made landfall early Saturday morning on the northeast corner of mainland Nova Scotia. It added Fiona had maximum sustained winds of 81 mph, peaking at times of over 100 mph.

Canadian Hurricane Center said Fiona was one of the lowest pressured land falling storms ever to hit Canada. For some context, lower the pressure means stronger the storm.

As of 0800 ET, the storm was 160 miles northeast of Halifax, packing winds of 85 mph and barreling north at around 23 mph.

According to Nova Scotia Power, over 400,000 people across the province of about one million were without power as of 0800 ET.

… and there goes the internet.

Social media users tweeted footage of the damage left behind by Fiona.

…click on the above link to read the rest of the article…

Futures Crash, Stocks At 2022 Lows; Yields, Dollar Explode As UK Stimulus Plan Sparks Global Market Panic

Futures Crash, Stocks At 2022 Lows; Yields, Dollar Explode As UK Stimulus Plan Sparks Global Market Panic

One week after stocks suffered their biggest drop since June, futures are in freefall on Friday with the dollar soaring to the now default daily record high…

… 10Y yields exploding higher, surging more than 10bps so far today…

… in what appears to be the latest bond market flash smash which has pushed 10Y yields to the highest level since 2010…

… and S&P futures plunging over 1.4%, and the S&P set to open at a fresh 2022 low…

… with futures set to drop nearly 5% (or more) for a 2nd consecutive week, and down 5 of the past 6 weeks!

Besides the soaring dollar, two other drivers contributed to today’s widespread market panic:

  • first, the shocking UK mini budget saw the country’s new administration slash tax rates by the most since 1970s at a time when the country is about to enter recession and is battling with runaway inflation which crashed UK bonds and sent the pound tumbling to a 37 year low as markets priced in a more aggressive pace of tightening to offset the government’s growth plan,
  • second, traders also freaked out over a Goldman research report which slashed the bank’s S&P price-target to just 3,600 from 4,300, making the bank one of the biggest bears on Wall Street.

In premarket trading, Costco shares declined 3.3% as analysts flagged that volatility may remain high for the company’s shares. Analysts mostly welcomed its report of modest improvements in inflation and supply chains. here are the other notable premarket movers:

  • AMD shares dropped 1.5% in premarket trading as Morgan Stanley trimmed price target to $95 from $102, citing a worsening PC end market and headwinds on the client business, including a collapse in gaming GPUs.

…click on the above link to read the rest of the article…

Germany To Nationalize Struggling Uniper In Deepening Energy Crisis

Germany To Nationalize Struggling Uniper In Deepening Energy Crisis

Germany on Wednesday announced a move to nationalize struggling natural gas supplier Uniper SE as it strives to keep the industry functioning in the wake of a global energy crisis, according to Reuters.

Uniper is Germany’s largest importer of Russian NatGas and has suffered tremendous losses after Russian energy giant Gazprom slashed Nord Stream 1’s pipeline capacity to zero, forcing the utility to purchase natgas outside contracts on the open market at record high prices.

Berlin agreed to purchase the remaining stake owned by Uniper’s parent company, Finnish utility Fortum Oyj for  $1.69 (1.70 euro) per share. Buying Fortum’s stake means Germany will own 99% of Uniper. The cost of nationalization comes as Berlin is set to inject 8 billion euros, equivalent to around $8 billion, into the utility.

The move is to keep the lights on across German homes and businesses as the risk of power rationings increases.

“This step has become necessary because the situation has worsened significantly.

 “The state will do everything necessary to keep systemically important companies in Germany stable at all times,” Robert Habeck, Germany’s economy minister, said Wednesday.

Uniper shares crashed by as much as 39% to 2.55 euros. Shares are down 93% on the year…

In July, Berlin injected a whooping 15 billion euros ($14.95 billion) to save the utility though the move to nationalize ahead of winter shows further deterioration in energy security for Europe’s largest economy.

Here’s what Markus Rauramo, CEO and President of Fortum, said about the deal:

“Under the current circumstances in the European energy markets and recognising the severity of Uniper’s situation, the divestment of Uniper is the right step to take, not only for Uniper but also for Fortum.

…click on the above link to read the rest of the article…

Putin Announces Partial Mobilization In Ukraine War Escalation, Says West Wants To “Destroy Russia”

Putin Announces Partial Mobilization In Ukraine War Escalation, Says West Wants To “Destroy Russia”

In a nationwide address that was delayed from its prime-time Tuesday delivery and ahead of votes in four Ukraine regions to join Russia, on Wednesday morning Russian President Vladimir Putin announced a partial military mobilization, while vowing to use all means necessary to defend Russia and pledged to annex the territories already occupied by Russia, raising the stakes in the seven-month-old conflict.

Calling the moves “urgent, necessary steps to defend the sovereignty, security and territorial integrity of Russia,” Putin said that Russia is fighting the full might of NATO. The US and its allies, he said, are seeking to “destroy” Russia.

The partial mobilization means that reservists will be drafted into military service, Putin said, starting immediately. The Armed Forces will draw on military reservists only, and those who have completed national service, the president said promising that they will be provided with additional training along with all the benefits due to people involved in active duty.

The measure is “sensible and necessary” under the circumstances, Putin stated, adding that he has already signed an order for the call-up to start immediately.

In his speech, Putin accused Kiev of backing away from peace talks, acting on direct orders from its Western allies. Instead of negotiating, the Ukrainian government has beefed up its military with NATO-trained troops, many of whom are neo-Nazi extremists, he said.

Putin also accused the west of using “nuclear blackmail” against Russia noting that “if its territorial integrity is threatened Russia will definitely use all the means at its disposal.” to defend Russian territory. “This is not a bluff.”

…click on the above link to read the rest of the article…

Olduvai IV: Courage
In progress...

Olduvai II: Exodus
Click on image to purchase

Click on image to purchase @ FriesenPress