Energy Blast – June 10, 2011

Russia’s Inter RAO has carried out its threat to cut electricity supplies to Belarus, because of the troubled country’s failure to make back payments of $54 million.  An IAEA vote has ruled against Syria for its failure to co-operate with an inquiry into a suspected nuclear project at Dair Alzour site; Russia and China voted against Syria’s referral, with the Kremlin calling the decision ‘untimely and not objective’.  Russia and China have however joined Western powers in criticizing Iran for its ‘consistent failure’ to conform to U.N. resolutions on its nuclear program.  In spite of OPEC’s failure to agree an output increase this week, Asian refineries are apparently confident that Saudi Arabia will maintain oil supplies sufficient to quench rising thirst for crude this year.  Gazprom Neft may acquire a minority stake in Schwedt refinery through an asset swap with Eni.  The head of the Russian operation, Alexander Dyukov, reportedly intends to double his stake in the company, on promises of lower taxes for the oil sector.