NEWS AROUND THE WORLD TODAY - January 20, 2022 FOR YOUR DELIGHT.

EDITORS' PICK - Source: Reuters

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Today's biggest stories

 

 

Crude's upward march continues, with supply concerns still dominant

• Summary

• Benchmarks scaled seven-year highs on Wednesday

• Demand recovery supports prices

• OPEC+ well short of targeted increases - IEA

• U.S. crude oil and gasoline stocks rose last week - EIA

- Oil rose modestly on Thursday, as bulls remain in charge, with benchmark Brent nearing $90 a barrel, bolstered by strong demand and concerns about short-term supply disruptions.

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How much does Germany need Russian gas?

Germany’s gas supply has come into focus as high European prices, sparked by global tightness, were exacerbated by concerns the new Nord Stream 2 pipeline that is technically ready but needs regulatory approval may be delayed or scrapped.

The German government has indicated it would consider sanctions over the pipeline - which is intended to carry gas from Russia to Germany - if Russia invades Ukraine.

A suspension of the project would mean a chunk of Germany’s expected future gas imports would not arrive, unless Russia instead stepped up its exports via a pipeline running from Yamal in Russia to Poland, or Ukraine, which may be unlikely in the event of a military conflict.

WHAT OTHER COMMODITY TIES DOES GERMANY HAVE WITH RUSSIA?

Germany and Russia have had a strong energy supply partnership for decades. The partnership was struck during the Cold War and remained strong despite ups and downs in bilateral relations.

Germany does not need only gas from Russia. BAFA showed that 34% of Germany’s crude oil came from Russia in Jan-Oct. 2021 and coal group VDKi said 53% of hard coal received by German power generators and steelmakers came from Russia last year.

The European Union threatened "massive" economic sanctions if Moscow attacks Ukraine, and U.S. Secretary of State Antony Blinken rallied allies ahead of last-ditch crisis talks with Russia aimed at preventing war. We explain how Western sanctions might target Russia, and look at how a Russian troop buildup has sparked an unintended NATO renewal.

A senior Conservative lawmaker accused the British government of intimidating and attempting to "blackmail" those lawmakers they suspect of wanting to force Prime Minister Boris Johnson out of power.


North Korea will bolster its defences against the United States and consider resuming "all temporally-suspended activities", state news agency KCNA said, an apparent reference to a self-imposed moratorium on tests of nuclear weapons and long-range missiles.

Chinese forces followed and warned away a U.S. warship which entered waters near the Paracel Islands in the South China Sea, the country's military said, but the U.S. Navy denied the ship had been warned off.