The Day at a Glance | Jul 26 2022

The Top

·     Agreement to decrease gas consumption reached in Europe.

·     Crude oil production in Mexico increased to 1.624 million daily barrels during June; it´s still decreasing at an annual rate (-3.4%).

·     Economic indicators: House prices and consumer confidence figures in the US will be made known today.

Economic environment

Agreement in the EU regarding gas consumption. European Union Energy Ministers approved an agreement to voluntarily cut natural gas consumption in 15% from August to March 2023. The agreement was reached after concessions in some of the block´s countries opposed the measure, who could cut consumption in smaller proportions or would be exempt. The cuts could be mandatory in case there is a supply-side emergency, although some key industries (such as steel) have been protected. The measure is Europe´s response to the risk that Russia´s supply of the energy resource could be cut. Europe seeks to decrease consumption to guarantee enough gas inventory build-up for the winter in case Russia decides to cut its supply to the block. On Wednesday, Gazprom, a Russian supplier, announced it will reduce its supply of gas to Germany through the Nord Stream 1 pipeline to one-fifth.