The shale gas revolution in the U.S. has further upset European energy companies’ competitiveness and their profits, however. While energy prices have fallen in the U.S. due to the abundance of the cheap natural gas, in Europe, energy especially natural gas prices from Russia — have risen. Europe has subsequently turned to importing cheaper U.S. coal in a bid to offset higher energy prices that have caused controversy among consumers. Gerard Mestrallet, the chairman and chief executive officer of French utility GDF Suez, said the EU was now in a “paradoxical situation” as it turned to coal against a backdrop of greenhouse gas emissions targets. “The cheap gas in the U.S. is used to produce electricity and U.S. gas is eliminating coal. So the cheap coal from the U.S.
Diesel Flow to Europe to Cap Winter Price Surge
debt loses some appeal in Hong Kong In June, China struck a similar agreement with the Bank of England worth up to 200 billion yuan. The deal with the ECB comes as political gridlock in the U.S. weakens the U.S. dollar against many other global currencies. A spokesperson for the ECB said the deal had been in the works for the last few months. China’s wine obsession spurs Bordeaux sales The yuan, also called the renminbi, currently trades directly with the U.S. dollar, the Australian dollar and the Japanese yen . In September, the Bank for International Settlements announced the Chinese yuan was the ninth most traded currency in the world. The yuan was involved in 2.2% of foreign exchange trading worldwide in April, the period examined by the report, more than double its share in April 2010. The dollar was involved in 87% of all trades, the euro was part of 33% of trades, and the Japanese yen was involved in 23%.
Europe, China agree currency deal
for a fuel that powers 55 percent of the regions vehicles. Curbed prices also stand to hurt profit at refiners from Saras SpA (SRS) of Italy to Spains Repsol SA (REP) , while helping consumers. Europe will be able to draw quite heavily on higher volumes of diesel from the Asia-Pacific in the coming months, Sabine Schels, a commodity strategist at Bank of America Corp. in London, said by phone Oct. 4. With fewer diesel barrels demanded at home, a lot of these Asian countries, including India, have already boosted exports. Winter Peaks The premium paid for diesel barges over the ICE Futures Europe gasoil contract soared during the past two winter seasons, climbing as high as $64 a metric ton more than the benchmark in October 2011 and November last year, according to data compiled by Bloomberg. It was about $26 on Oct. 7, equating to an outright price of $951.75 a ton, the data show. Profits from converting crude into diesel, as approximated by the crack spread between gasoil and Brent crude futures, will stay near current levels this winter, or about 30 percent below the previous seasons peak, five of the refining executives in the Bloomberg survey said. The Sept. 19 poll included plant managers and vice presidents of companies from Italy to Poland . The crack spread averaged $15 a barrel during the past month, compared with $20 one year ago. With Europe now exiting its recession, theres hope for the regions refiners that fuel use will pick up, said Seth Kleinman, head of energy strategy at Citigroup Inc. in New York. The European economy appears to be going through a recovery, which should result in some stronger consumption demand, he said Sept.