Saudi crude oil terminals resume operations, EU faces energy crisis as US LNG imports plummet
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(1) Saudi Aramco's Ras Tanura crude oil terminal resumed loading operations on June 26. The port had been shut down since early March due to restricted passage through the Strait of Hormuz, and previously, crude oil exports had to be rerouted via Yanbu port on the Red Sea. (2) In June, the EU's imports of liquefied natural gas from the United States fell to the lowest level in two years, less than half of previous volumes. This was because a large amount of US LNG shifted to Asian and Egyptian markets—European TTF prices ($13.19 per MMBtu) were lower than Asia's ($17.33), and this price spread drove the change in trade flows, despite the EU's earlier commitment to purchase $750 billion in US energy products over three years. (3) EU natural gas inventories have dropped to the lowest winter level in 15 years. The tense situation in the Middle East and supply disruptions from Qatar are worsening the shortage. However, European buyers are avoiding long-term contracts due to concerns of overreliance on a single supplier. Think tanks predict the EU’s dependence on US LNG will rise to 80% in the future, compared with 58% last year.
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