Latest News
-
Russia claims that the Ukrainian attacks are driving up food prices globally, leading to grain shortages
Russian claimed on Wednesday that Ukrainian strikes against its grain and agricultural infrastructure were causing global food prices to rise - and exacerbating the grain shortages. This, it said, served some Western countries' interests. Maria Zakharova, a spokeswoman for the Russian Foreign Ministry, made her comments after a wave Ukrainian strikes on Russia’s Black Sea Port of Novorossiysk, which killed three people, including a young child, and caused major grain terminals in the city to cease working. Zakharova stated: "It's evident that the Kyiv regime is pursuing a cynical campaign of military aggression to create chaos on the global food markets... in order to serve the interests of certain Western countries." Zakharova stated that "all this increases the shortage of...grain and fertilisers and fuels the increase in global food prices." Zakharova added, "All of this exacerbates the...shortage of...grain and fertilizers, and increases burden on countries of the Global South and East who are held hostage because of irresponsible policy of the....players". Ukraine escalated this summer its attacks on Russian economic infrastructure, which it claims is the foundation of 'Moscows' military campaign against Ukraine. This included striking agricultural export infrastructure. Russia is?the largest wheat exporter in the world. The Russian attacks on Black Sea ships have also drastically reduced grain shipments out of Ukraine, which is a major grain supplier. Ukraine's Agriculture Ministry reported that shipments fell 76% during the first two weeks of August compared to a year ago. The price of grain futures spiked Wednesday after the Ukrainian strikes in Novorossiysk. Reporting by Felix Light, Editing by Andrew Osborn
-
Etna ash causes Catania airport to be closed for longer, disrupting travel during peak season
As ash from Mount Etna continues to erupt, Catania's airport has been forced to suspend flights again on Wednesday. This is a major disruption for travel during the peak summer holiday season. SAC, the airport operator, said that air traffic will be suspended until 1400 GMT Thursday after the aviation authorities extended the closure of affected airspace around east Sicily. Passengers should check with their airlines to confirm the status of their flight. SAC stated in a press release that further updates would be provided in the next few hours. Flight cancellations and delays were reported in Malta overnight as volcanic ash drifted down the Mediterranean. The situation appeared to have improved on Wednesday although the Malta International Airport warned passengers about possible disruptions. Mount Etna is Europe's highest and most active volcanic cone. It frequently disrupts Catania Airport, Sicily's primary gateway, and Italy's 5th busiest airport in terms of passenger traffic. Since last week, eastern Sicily has been experiencing travel disruptions due to the ash caused by renewed volcanic activity. During one of the busiest tourist seasons, the prolonged restrictions at Catania has placed an additional strain on the other airports in?Sicily. Roberto Lagalla, Palermo's mayor, said that the airport of his city had taken in 190 flights scheduled to depart or arrive from Catania?in recent days. After arriving in Palermo, some passengers complained that they were not provided with adequate assistance for their onward transportation. The demand for taxis and buses soared. Operators said that extra traffic also caused delays in the?Palermo Airport. Italian news agency ANSA reported that Comiso Airport, which is a smaller airport south of Catania, has resumed full operations following a suspension of flights due to Mount Etna ash on Tuesday night. Giancarlo Pollina and Elvira Navach reported; Giselda Vasgnoni, Elaine Hardcastle, and Crispian B. Balmer edited.
-
Saudi Red Sea oil exports are halted as Houthi attacks grow
Analysts say that all recent Yanbu loads have been done "darkly" to avoid being attacked by Yemen's Iran aligned Houthis. On July 20, the Houthis announced a maritime embargo on Saudi Arabia, opening a new front in the Iran War against the United States. Since then, they've claimed attacks against Saudi-linked oil tankers, Yanbu facilities, and most recently the Jazan refinery along the Red Sea Coast. This has led to more vessels operating without publically visible tracking data. Dark voyages, or the increasing use of them, obscure the visibility of Saudi oil exports and make it difficult to determine the extent to which Houthi threats could disrupt crude flow. The ship-tracking companies have?produced widely varying export estimates - a data that is used by the International Energy Agency (IEA), OPEC, and traders to assess and forecast global oil supply. Data analytics firm Vortexa reported that Yanbu loadings dropped to 2.38m barrels per day, from 2.71m the week before. Kpler predicted a more dramatic drop, to 1.78m bpd, from 4.04m, while AXSMarine estimated an increase to 850,000bpd, from 420,000bpd. Saudi Aramco has not responded to a comment request. CONDUCTED DARK The?those?trying to track shipments depend on a vessel appearing again on tracking systems after it has left the area of high risk, using satellite data for cross-checking movements and trying to fill in any gaps. Last week, all Yanbu liftings took place in the dark. "We're not currently seeing any loadings that have Automatic Identification System (AIS)," said Vortexa analyst George Morris. Kpler analyst Nhway Khin Soe stated that about 70% of Saudi west-coast loadings in the last few weeks were dark. He added that all Yanbu cargoes 'loaded since July 23, involved vessels without continuous AIS cover. Two years of Houthi attacks against commercial shipping in the Bab al-Mandeb strait, at the southernmost tip of the Red Sea, had already affected the flow of traffic. Kpler data shows that 32 vessels per day averaged transiting the waterway in the past week. This is down from 50 vessels a days before the Houthi group announced their latest blockade. Saudi Arabia is sending more oil through the Red Sea via the Suez Canal and Egypt's SUMED Pipeline, which connects Ain Sokhna, on the Red Sea coast, to Sidi Kerir, on the Mediterranean. Morris, Vortexa’s?spokesman, said that the average number of crude and condensate loadings at Sidi Kerir was 2.17 million bpd, which is around 50% more than the previous week. About 90% of total volumes were Saudi crude. War risk insurance costs have risen in recent days, and tanker companies also change their sailing strategies. Major oil tanker operator DHT had previously departed the Red Sea via Bab al-Mandeb to lift oil. Svein Moxnes Harfjeld, CEO of DHT, said in a recent earnings call that "that has become more challenging." It's fair that most VLCC (supertanker), not just ours have moved north and northwest.
-
YPF's oil exports via VMOS have reached 180,000 bpd since January
Chief Executive 'Horacio 'Marin announced on Wednesday that Argentine oil Company YPF will begin exporting?180,000 barrels a day via a port located in the Rio Negro Province?from january as part -of -the VMOS Project. Marin told the Vaca Muerta Investment Forum, in Buenos Aires, that "we will begin exporting in January. First, we will export 180,000 barrels a day. Then, 360,000 barrels a day by mid-year, and then 550,000 barrels a day in 2028." He added, "We're already looking at expanding our production to 700,000.?barrels a day." VMOS, a consortium, includes YPF and Vista Energy Argentina, as well as Pampa Energia, Pan American Sur and other companies. The group is building a pipeline of 437 km to?transport crude oil from the Vaca Muerta shale in Neuquen Province to a port in Argentina's Atlantic Coast in Rio Negro Province. Vaca Muerta has one of the largest shale-oil?reserves in the world. Argentina's government expects?Vaca Muerta to reduce energy imports, which are expensive, and boost economic growth. In 2025, the country had a surplus in energy trade of $7.8 Billion. Analysts estimate that the surplus could reach $11 billion by 2026, if oil prices continue to rise this year due to the Middle East conflict. Marin, speaking?about a liquefied gas (LNG export project), said YPF expected to finalize an agreement by the end of the year with Italy's Eni, and XRG, the international investment arm?of Abu Dhabi National Oil Company. The project will have an annual LNG production capacity of?12 million metric tonnes, with the possibility to increase to 18 million. Marin stated that tenders have already been launched to build a processing facility in Neuquen where oil and natural gas will be separated. He also said that a 48 inch-wide pipeline for natural gas would be built, which he called Argentina's largest. He added that tenders for the pipelines themselves should be launched in two months. The pipeline has a capacity of 100 million cubic meters per day. (Reporting and writing by Eliana Razewski, Isabel Teles, Kyry Madry; editing by Kyry Madry).
-
British grid operator cancels request for backup power during Solar Eclipse hours
The National Energy System Operator of Britain has cancelled a?earlier?electricity?margin?notice for Wednesday evening, which had asked participants in the market to make additional generation capacity during the solar eclipse. * NESO announced that it has canceled its notice 'for the period between 1700 GMT and?1900 GMT. It had originally expected a?system margin shortfall? of 1,200 megawatts compared to the?amount they would like to have available. According to a NESO spokesperson, the notice was issued to customers as a precautionary step due to the'solar eclipse'. There is no risk for the customer's electricity supply. Grid operators across Europe are preparing for a 'drop in solar energy generation during the eclipse.' This is expected to occur between 1715 GMT and 1930 GMT on Wednesday. (Reporting and editing by Nora Buli, Jan Harvey and Joe Bavier).
-
Saudi Arabia Bets on defensive allies to prevent war slide
Saudi Arabia, increasingly dragged into wars it did not initiate, is building defensive regional alliances to keep its enemies away and respond more "robustly" to attacks from Iran and its regional allies. Analysts and diplomats say that despite the earliest attempts to build a maritime alliance in the Red Sea and the decision to bring Turkey into a defence agreement with the Kingdom and Pakistan, they have not been able to prevent attacks. Saudi Arabia's military response to the attacks by Iran, Iraq, and Yemen's Houthis last month, which opened a southern front on the kingdom, as well as attacking Saudi shipping, has been very limited. Riyadh is faced with a dilemma. How to protect its ambitious economic plan and deter attacks without getting entangled in an escalating conflict in the Middle East sparked by war between the U.S. One Middle Eastern official said, "Saudi Arabia has a problem because its enemies know that it wants to avoid war." They are abusing it." The Saudi Government Media Office did not respond to an inquiry for comment on this story. Aziz al-Ghashian is a Saudi analyst, and a senior non-resident fellow of the Gulf International Forum. He said: "This is very worrying and exactly what Saudi Arabia was trying to avoid." "Iran, and its?affiliates believe Saudi will not respond. Restraint was interpreted by them as an acceptance that they would be targeted. This is why Saudi Arabia needed to find a deterrent. "The trick is to find a balance," he said. The Houthis attacked oil installations again in the Kingdom after the signing of the defence pact. GRADUAL ESCALATION Saudi Arabia, since the U.S. & Israel began the war against Iran on February 28th, has attempted to absorb the attacks. It chose to pursue a diplomatic approach first before launching limited military responses which were kept secret. Around the time of the U.S. ceasefire in April, there was a tentative calm between the two countries. The Gulf region became a safe haven. In the past few weeks, much of this has been jeopardized. Yemen and Iraq have launched damaging attacks against the kingdom's oil infrastructure, as well as its shipping through the Strait of Hormuz or the Red Sea. Saudi Arabia and the U.S. conducted joint airstrikes against Iraqi militias two weeks ago. They claimed that the Iraqi militias were responsible for the attacks against the kingdom. This was the first time the Saudis had announced a retaliation during the war. Riyadh then announced two days later its intention to lead an maritime defence coalition on the Red Sea. In Mecca, the agreement was announced last week. Yasmine Farouk is the project director of Crisis Group's Gulf and Arabian Peninsula region. She said that the coalitions are "trial balloons", and that a joint military action is unlikely at this time. MECCA DEFENCE AGREEMENT Announced at Islam's holiest site and after Friday prayers, the Saudi-Turkey-Pakistan defence agreement carries the ?symbolic weight of Muslim nations pledging to defend each other as if they were one "Ummah," or Muslim nation, according to Sultan Alamer, a non-resident scholar in the Carnegie Middle East Program. In practice, however, it is less clear. Hakan Fidan, the Turkish Foreign Minister, said on Saturday that the pact is technically the same NATO Article 5 and will require consultations among all parties in order to determine the type of support provided to any country attacked, should they request any. Islamabad, under the pre-existing Saudi Arabian defence pact, had tried to avoid engaging militarily with Iran and its allies. It was able to do this despite Saudi Arabia facing hundreds of drone and missile attacks. Iran said that the agreement was a move away from relying on external powers. This is an apparent reference to the United States. It also stated that it had no reason to worry, "so as long as the agreement correctly identifies and addresses the enemy." THE YEMEN HEADACHE Yemen's Houthis ended a four year truce on Saudi Arabia's southern border last month, announcing a naval blockade and shooting at its oil infrastructure. Reports say that the Houthi attacks showed the kingdom's vulnerability to asymmetric war and brought back memories of the 2019 Saudi oil crisis, when production was halved due to Houthi missile and drone attacks planned by Iran. Yemen is a particularly sore spot for Saudi Arabia, which led an intervention in 2015, after Iran-backed Houthis stormed Sanaa's capital, leading to a?international outcry about the high death toll due war and famine. Riyadh wants Yemeni leadership to take the lead in any offensive. It also said that a multinational maritime coalition is needed to protect Red Sea shipping. People who attended the meeting said that invitations were sent just a few weeks before the first session, demonstrating the urgency in which Saudi Arabia approached the mission. Up to now, 14 countries from the region have signed up, and more are expected. Western diplomats claim that European nations are still deciding whether or not to join the coalition, as they worry about their potential involvement in a Yemen war. Saudi Arabia is planning meetings in Jeddah this week to announce the official formation of its new government as soon as possible. (Reporting and editing by Keith Weir; Timour Azhari is the reporter)
-
Saudi Red Sea oil exports are halted as Houthi attacks grow
Analysts say that all recent Yanbu loads have been "dark". On July 20, the?Houthis announced a maritime boycott against Saudi Arabia, opening a new front in the Iran War against the United States. Since then, they've claimed attacks against Saudi-linked oil tankers, Yanbu facilities, and most recently the Jazan refinery along the Red Sea Coast. This has led to more vessels operating without publically visible tracking data. Dark voyages are becoming more common, and they obscure the visibility of Saudi oil exports. This makes it difficult to determine the extent to which Houthi threats could disrupt crude flow. The International Energy Agency (IEA), OPEC, and traders use data from ship-tracking firms to estimate global oil supply trends and forecast market trends. The week commencing August 3rd, data analytics firm Vortexa estimated that Yanbu loadings had fallen to 2,38 million barrels a day from 2,71 million in the previous week. Kpler estimated an even sharper fall to 1,78 million bpd, from 4,04?million. AXSMarine estimated a rise from 420,000 to 640,000 barrels a day. Saudi Aramco has not responded to a request from?comment. CONDUCTED DARK Satellite data is used to check movements and fill in any gaps. Last week, all Yanbu liftings took place in the dark. "We're not currently seeing any loadings that have Automatic Identification System (AIS)," said Vortexa analyst George Morris. Nhway Khin Soe, a Kpler analyst, said that 70% of the loadings on the west coast of Saudi Arabia in recent weeks have been dark. He added that all Yanbu cargoes since July?23 were loaded by vessels without continuous AIS coverage. Two years of Houthi attacks against commercial shipping in the Bab al-Mandeb Strait, at the southernmost tip of the Red Sea, had already affected the flow of traffic. Kpler data shows that an average of 32 vessels per day traversed the waterway in the last week. This is down from 50 vessels a single day prior to the Houthi group's latest blockade. Data from ship-tracking shows that Saudi Arabia is sending more oil through the Red Sea. This can be done via the Suez Canal, or Egypt's SUMED Pipeline, which connects?Ain Sokhna, on the Red Sea coast, to Sidi Kerir, on the Mediterranean Coast. Morris, Vortexa, said that the average crude and condensate load at 'Sidi Kerir was a record 2,17 million bpd, which is around 50% more than the previous weeks. About 90% of total volumes were Saudi crude. In recent days, the cost of war-risk insurance has increased and tanker companies have also changed their sailing strategies. Previously, the major tanker operator DHT exited via Bab al-Mandeb to lift oil from the Red Sea. Svein Moxnes Harfjeld, CEO of DHT, said in a recent earnings call that "that has become more challenging." It's fair that most VLCC (supertanker), not just ours have moved north and northwest.
-
EasyJet flight attendants will strike in France on August 15-16.
The SNPC and FO trade unions announced on Wednesday that EasyJet 'flight attendants in France' will go on strike August 15-16 to demand better conditions. The statement stated that talks between a group of unions and the company regarding working conditions failed to produce any results. EasyJet is solely responsible for any flight cancellations or disruptions that result from these days. The company has refused to respond seriously to repeated warnings by trade unions in the past few months. A request for comment from a spokesperson?for?easyJet was not immediately responded to. The London-listed carrier is being purchased by the investment fund Apollo. This deal values 'the airline at PS5,70 billion ($7.70billion).
Air Canada shares rise after a loyalty program deal, and the airline expects a strong fall season.
Air Canada announced on Wednesday that it expects 'one of its strongest fall seasons ever, thanks to corporate travel. Despite cost pressures, the airline set its latest core profit target for this year below analyst expectations.
Air Canada's shares rose 14% during morning trading following an agreement by funds to acquire a minority stake of its loyalty program Aeroplan. Canada's largest airline restored its annual core profits target on Tuesday. However, it was at a lower level compared to its previous suspended outlook due to the volatility of the U.S./Israeli war against Iran.
Mark Galardo, Air Canada's Chief Commercial Officer, told analysts that the company was looking at "a very positive setup for the Fall, one of the strongest (ones) we've seen in recent history."
As corporate travel increases in the fall, there is less seasonality for the carrier.
RISE IN LABOR AND FUELS?COSTS
U.S. travelers and Canadians continue to travel internationally and spend on premium airline offerings. This helps North American carriers, whose balance sheets are being squeezed by higher fuel and labor costs and the war in the Middle East.
John Di Bert, Chief Financial Officer of Air Canada, told analysts that he expected the airline's cost to increase more slowly in the second half of the year. Unit costs are set to rise between 4% and 5%. The adjusted cost per available mile increased by 6.55% in the first half of this year.
The company anticipates a core adjusted profit between C$2.9 billion and C$3.2 billion in 2026. It had previously projected C$3.35 to C$3.75 Billion.
According to LSEG data, analysts expected an average of C$3.23billion.
The cost of aircraft jet fuel accounts for roughly a quarter (or more) of the operating costs of airlines, which makes them susceptible to sudden increases or swings.
Air Canada anticipates that it will offset approximately 60% of the additional jet fuel costs incurred in the third quarter compared to its initial assumptions, before the Iran War began late February. Hedging gains are included. It is expected to offset all fuel cost increases for the fourth quarter.
Air Canada announced Tuesday that funds managed Blackstone and by three Canadian funds made a C$2.5billion minority equity investment into the loyalty program Aeroplan of the carrier. The proceeds would be used to help pay down debt.
Michael Rousseau, CEO of the company, told analysts that this transaction "simply strengthens our balance sheets and creates value for all stakeholders."
Fitch Ratings changed its outlook on Air Canada's rating to positive, from stable. The deal with Aeroplan was cited as the reason for the change. They also confirmed the issuer default rating of BB.
(source: Reuters)