Kaohoon Morning Brief – 1 June 2022

1) Russian to cut gas supply to Denmark’s Orsted and Shell Energy

Russian company Gazprom said on Tuesday that the company would cut off gas flows to Denmark’s Orsted, as well as to Shell Energy for its contract on gas supplies to Germany, after they failed to make payments in rubles.

The cuts will be effective from June 1, according to the Gazprom statement.

Russia has already cut off gas supplies to Poland, Bulgaria, Finland and the Netherlands.


2) U.S. consumer confidence drops to 3-month low

U.S. consumer confidence dropped in May to three-month low, underscoring the impact of decades-high inflation. Conference Board index fell slightly in May to 106.4 vs 103.6 expected.

The figures indicated a potential that persistently high inflation, especially in categories like food and energy, is weighing on household sentiment and straining budgets.


3) Oil prices drop on reports of exempting Russia from OPEC production

Oil prices closed lower on Tuesday after the report of OPEC members considering exempting Russia from the alliance’s oil-production deal and could pave the way for more oil production from Saudi Arabia and UAE.

The international benchmark Brent crude fell 1.70% to $115.60 per barrel. Meanwhile, the West Texas Intermediate dropped 0.40% to $114.67 per barrel.