Latest News
-
Owner says that the Russian captain arrested in UK ship accident is the one who was at fault.
The German company that owns the ship said Wednesday that the Russian national who was arrested in connection with the crash of a U.S.-flagged tanker near the coasts of England, is the captain. On Monday, the Solong collided with the Stena Immaculate tanker, which was carrying jet fuel to the U.S. Military. The captain of the Solong was arrested by British police on suspicions of gross negligence and manslaughter a day later. The 59-year-old man is still in police custody, according to the police. Owner Ernst Russ, based in Hamburg, said that the Russian captain of the Portuguese flagged Solong is also the crew mix. Stena Immaculate, which was at anchor, was hit by the smaller Solong, causing massive fires and explosions. One crew member was presumed to be dead and one was missing. Fuel was released into the ocean, causing concerns about its impact on the environment. The Telegraph reported, as speculation about the collision's cause grows, that the Solong failed a steering-related safety test last year. This was based on a routine safety inspection carried out in Dublin by Irish officials in July.
-
Vietnam and Singapore agree to strengthen ties, cooperate on subsea cable
Singapore and Vietnam agreed on Wednesday to intensify their cooperation in the areas of subsea cable, finance and energy. This marked an upgrade to Vietnam's top level in their relationship, during a trip by To Lam, the Communist Party chief in Vietnam, to Singapore. Singapore is the third Southeast Asian country, after Malaysia, and Indonesia, that Vietnam has "established a comprehensive strategic relationship" with. In a statement issued following the upgrade, Lam, Singapore's Premier Lawrence Wong, witnessed the exchange six agreements, and discussed cooperation on undersea cables development, digital connectivity and cross-border information flows. Southeast Asian countries are a major junction of cables connecting Asia and Europe. They aim to expand their network to meet the increasing demand for AI services, data centres, etc. Vietnam alone is planning to launch ten new submarine cables before 2030. In December, reported Sources familiar with the situation claim that Singaporean asset manager Keppel, and Vietnamese conglomerate Sovico Group discussed plans to build new undersea fibre-optic cables in order to boost the data centre industry of the region. Viettel, the state-owned Vietnamese telecom company, and Singtel, Singapore's Singtel, announced in April of last year a preliminary deal to build an undersea fiber optic cable that would connect Vietnam to Singapore. However, no contract for construction has yet been announced. Both leaders discussed peace, stability and industrial park expansion. In a joint statement, Singapore committed to supporting Vietnam in the development of international financial centers. Singapore is the top foreign investor in Vietnam, with $10.21 billion invested last year. This accounted for 27 percent of Vietnam's foreign investment. (Reporting and editing by Himani Sarkar, Christian Schmollinger and Phuong Vu)
-
Japan's major firms have agreed to large wage increases for the third consecutive year
Many of Japan’s largest companies, from Toyota to the tech conglomerates, have responded to union demands for wage increases for a third year in a row. They are trying to help employees cope with inflation while retaining staff due to labour shortages. On Wednesday, as annual "shunto", or "spring labor offensive" negotiations concluded at top firms, Hitachi Electronics said that it had agreed to an unprecedented 6.2% increase in wages per month in accordance with union demands. Toyota, Japan's largest carmaker, and the leading manufacturer in the country, has agreed to raises up to 24,450 Japanese yen ($165), as well as bonuses equivalent to 7,6 months of salary. The company did not reveal a percentage for the increase, but stated that the total pay increase for all employees will be the same as last year's which was the highest since 1999. A weaker yen and record corporate profits also helped to support the decision to raise pay this year. Economists predict that the average pay increase will be similar to the 5.1% increase last year, which was the largest increase in 33-years and allowed the central bank's super-loose policy to end. Mitsubishi Heavy Industries, NEC and other electronics companies also fully responded to the union's demands. Prior to 2023, the annual wage increases in Japan were only 1-2%. As a result, Japan is still well below the average of the OECD rich country group. Rengo, Japan’s largest umbrella group of labour unions with 7 million members said last week that its unions wanted an average increase of 6.09%. This was up from 5.85% the previous year, and marked the first time in more than 32 years when a higher rate had been requested. The "shunto", or "pay-increase" talks, this year are largely focused on whether small and medium sized companies which employ 70% of Japan's workers will also see strong increases in pay. Toyota plans to increase its payments for domestic components in order to fund the pay increases of suppliers. The Bank of Japan is expected to raise its policy rate to 0.5% from the current very low level. The government of Prime Minister Shigeru Shiba also wants to increase wages to stimulate consumer spending, as rising food prices and other essentials have kept inflation-adjusted wage growth at around zero. In January, the consumer inflation rate, which is used to calculate real salaries, including fresh food but excluding rent costs, increased to 4.7% on an annual basis. This was the highest reading for two years. Kazutaka M. Maeda is an economist with the Meiji Yasuda Research Institute. He said that a 5-5.5% pay increase this year "would just offset inflation, and not drive consumers spending." ($1 = 147.8900 yen) (Reporting by Makiko Yamazaki; Additional reporting by Ritsuko Shimizu, Tetsushi Kajimoto, Kentaro Okasaka and Kathleen Benoza; Editing by Edwina Gibbs) The annual salary talks are a defining feature of Japanese business. Relations between management and labour tend to be closer than in other countries. ($1 = 147.8900yen) (Reporting and editing by Edwina G. Gibbs; Additional reporting from Makiko Yamazaki, Ritsuko Shiraki Tetsushi Kajmoto Kentaro Okasaka Kathleen Benoza)
-
Yemen's Houthis will resume attacking Israeli ships after Gaza Aid deadline has ended
Yemen's Houthis announced on Tuesday that they will resume attacks against Israeli ships traveling through the Red, Arabian and Gulf of Aden seas as well as the Bab al-Mandab strait. This marks the end of a relative calm which began in January, when the Gaza ceasefire was signed. From November 2023 onwards, the Houthis launched over 100 attacks against shipping. They claimed to be in solidarity with Palestinians due to Israel's conflict with Hamas. The group, which was responsible for the disruption of global shipping by forcing companies to take longer and more costly journeys through southern Africa, also sank and seized two ships during that time. The leader of Yemen’s Houthis warned Friday that the group will resume its naval attacks against Israel if Israel does not lift its blockade of Gaza aid within four days. Israel stopped aid trucks from entering Gaza on March 2 as the standoff over the ceasefire escalated. Hamas called for Egyptian and Qatari mediation to intervene. The group stated in a statement sent via email on Wednesday that "this ban will remain in place until the crossings into the Gaza Strip are opened and humanitarian aid including food and medical supply is allowed to be entered." They added that the ban was effective immediately. After President Donald Trump called for it, the U.S. State Department announced earlier this month that they were implementing the designation as a "foreign terror organization". Trump's January 2019 Agenda re-designated The Houthi movement is being designated as a terrorist organization by the United States, in order to punish it for its attacks against commercial shipping in Red Sea and U.S. warships that defend the vital maritime area. (Reporting from Jaidaa T. Taha in Cairo, Menna A. Alaa Eldin in Dubai, and Stephen Coates and Leslie Adler in New York)
-
If Trump's trade war escalates, Canada may restrict its oil exports.
Jonathan Wilkinson, Canada's Energy Minister, said that if the trade dispute escalates with the U.S. further, Canada may take non-tariff steps such as limiting its oil exports or levying duties on exports. "When we talk about non-tariff reprisal, it can be about limiting supply or putting our export duties on certain products. Wilkinson told a reporter that it could go beyond energy and minerals. He also suggested that non-tariff measures could be used on minerals of critical importance, forcing the U.S. even more to depend on China. He said, "Everything's on the table." Canada is the largest supplier of oil imported to the United States. It provides around 4 million barrels a day, mainly to Midwest refineries that are designed to run the Canadian grades. Donald Trump, the U.S. president, escalated Tuesday's trade war against Canada. He promised to double tariffs that would take effect in just hours on all steel and aluminum imports from America's neighbor. However, he said later that he was likely to lower them if Canadian officials agreed to talk. Trump's latest salvo follows Ontario Premier Doug Ford's statement that he will impose a 25% surcharge to the electricity Canada's largest province supplies to over one million U.S. households unless Trump drops his tariff threats against Canada exports. Ford agreed to drop the surcharge after meeting with U.S. Secretary of Commerce Howard Lutnick, urging for cooler heads. Brian Jean, Alberta's Energy Minister, who is responsible for the majority of Canada's Oil Industry, stated earlier Tuesday that he wanted to de-escalate this dispute and provided Washington with several options. Canada has limited options for sending oil to other markets, so any restrictions on Canada's oil imports from the United States will hurt Canadian producers. Wilkinson stated that the Trans Mountain pipeline, as well as rail, could be used to transport some Canadian oil. He added, "I don't believe the threat is as great as it might be in other sectors for Canada's oil producers." Wilkinson said Canada may impose tariffs on U.S. Ethanol as part of the second tranche of trade sanctions if Trump escalates the trade war. Wilkinson stated that U.S. Ethanol, an important trade product for U.S. Farmers, would be "absolutely" included in the list if Trump were to move forward with his plans to impose tariffs of 25% on Canadian goods by April. Canada has threatened to impose retaliatory duties on US imports worth $155 billion. The first tranche of goods to be affected by tariffs is $30 billion, but the rest of the list will also be considered. Exports of U.S.-made ethanol to Canada have reached record levels in recent months, helping Canada to meet its clean fuel program. Wilkinson stated that it is cheaper than Canadian ethanol due to the subsidies provided by the U.S. Renewable Fuel Standard. According to the U.S. Energy Information Administration, U.S. Farmers sent a record 1,54 million gallons ethanol to Canada last September, which is roughly twice the amount three years earlier. "We began the day at one point. "Things went in many directions and we ended back where we were yesterday," Wilkinson said about the rapid-fire movements that scrambled the financial markets. "It's crucial that we reach a conclusion that includes the removal of tariffs as soon as possible." Reporting by Jarrett Renshaw in Houston and Arathy Sommesekhar; Editing and proofreading by Nia and Lincoln Feast.
-
If Trump's trade war escalates, Canada may restrict its oil exports.
Jonathan Wilkinson, Canada's Energy Minister, said that if the trade dispute between the United States worsens the country could take non-tariff steps such as limiting its oil exports or levying duties on exports. "When we talk about non-tariff reprisal, it may be about restricting the supply or imposing our own export duties on certain products. Wilkinson told a reporter that it could go beyond energy and minerals. "Everything's on the table." Canada is the largest supplier of oil imported to the United States. It provides around 4 million barrels a day, mainly to Midwest refineries that are designed to run the Canadian grades. Donald Trump, the U.S. president, escalated Tuesday's trade war against Canada. He promised to double tariffs that would take effect in just hours on all steel and aluminum imports from America's neighbor. However he said later he was likely to lower them if Canadian officials agreed to talk. Trump's latest salvo follows Ontario Premier Doug Ford's statement that he will impose a 25% surcharge to the electricity Canada's largest province supplies to over one million U.S. households unless Trump drops his tariff threats against Canada exports. Ford agreed to drop the surcharge after meeting with U.S. Secretary of Commerce Howard Lutnick, urging for cooler heads. Brian Jean, Alberta's Energy Minister, who is responsible for the majority of Canada's Oil Industry, stated earlier Tuesday that he wanted to de-escalate this dispute and provided Washington with several options. Wilkinson said that Canada may impose tariffs on U.S. Ethanol as part of the second tranche of trade sanctions if Trump escalates the trade war. Wilkinson stated that U.S. Ethanol, an important trade product for U.S. Farmers, would be "absolutely" included in the list if Trump were to move forward with his plans to impose tariffs of 25% on Canadian goods by April. Canada has threatened to impose retaliatory duties on US imports worth $155 billion. The first tranche of $30 billion worth of goods to be subjected to tariffs was identified by officials, but the rest of the list will also be considered. Exports of U.S.-made ethanol to Canada have reached record levels in recent months, helping Canada to meet its clean fuel program. Wilkinson stated that it is cheaper than Canadian ethanol due to the subsidies provided by the U.S. Renewable Fuel Standard. According to the U.S. Energy Information Administration, U.S. Farmers sent a record 1,54 million gallons (roughly double) of ethanol to Canada last September. Reporting by Jarrett Renshaw in Houston and Arathy Sommesekhar; editing by Nia William
-
Argentine workers at Vicentin expand their strike over wages
A union leader announced on Tuesday that the Argentine oilseeds workers union SOEA would launch a nationwide strike on Wednesday in response to a wage dispute at soybean processing facilities owned by exports conglomerate Vicentin. Martin Morales, SOEA secretary, said that the strike would be carried out in conjunction with the Federacion Aceitera organisation. He added that Vicentin had only paid 30% to the workers' wages last month. He said that the strike would be expanded to all Vicentin factories in San Lorenzo, Ricardone and Rosario (in the port area). A union source said that the measure would be indefinite. Vicentin, once the largest processor of soybeans in Argentina, and for many years its most valuable export, has been facing bankruptcy proceedings since 2020. The company didn't immediately respond to our request for comment. Maximilian Heath, Brendan O'Boyle and Brendan O'Boyle contributed to the reporting.
-
Regulator approves Cheniere Texas LNG plant expansion, says executive
A Cheniere Energy executive announced on Tuesday that U.S. regulators had approved the expansion of Cheniere Energy Corpus Christi's liquefied gas plant. Anatol Fygin, Chief Commercial Officer of the company, said that the Federal Energy Regulatory Commission had approved the construction of Midscale trains 8 & 9 for the company. Cheniere, the U.S.'s largest LNG producer, played a major role in helping the U.S. become the world’s leading exporter of supercooled gas. Cheniere expects to increase its production of LNG at its Corpus Christi plant in Texas by 3 million metric tons per year with the addition of two new production trains. The plant has a current capacity of 15 million metric tons per year. Cheniere is building Stage 3 at its Corpus Christi facility. Stage 3 will increase production by 10 million metric tons per year. Cheniere requested approval from FERC to build the Midscale expansion in March 2023. The approval was given on Monday by Feygin. The U.S. needs FERC approval to build LNG plants. (Reporting and editing by Simon Webb, Nia Williams, and Curtis Williams)
US Gulf crude prices spike after Trump ends Chevron's Venezuela license
On Wednesday, spot prices for a medium crude oil grade that is used by refiners in the U.S. Gulf Coast soared as they sought alternatives after President Donald Trump terminated a license that allowed U.S. giant Chevron export Venezuelan petroleum.
Trump announced that he would reverse an authorization given by the administration of former President Joe Biden in November 2022 without mentioning any company names. Venezuelan Vice President Delcy Rodriguez claimed that the U.S. made a "damaging, inexplicable" decision by going against Chevron.
According to LSEG vessel tracking and reports by the state company PDVSA, Chevron exported an average of almost 300,000 bpd (billion barrels per day) of Venezuelan crude oil to the United States in January.
According to the U.S. Energy Information Administration, while Venezuelan crude accounted only for 3.5% of all U.S. crude oil imports in November of last year, it accounted for 13% of the crude oil imported by U.S. Gulf Coast Refineries.
In the first eleven months of 2024, Venezuela was the fourth-largest crude oil supplier to the U.S.
Mars crude, a medium-sour crude preferred by U.S. refiners, rose 70 cents to $1.70 over U.S. West Texas Intermediate Crude on Wednesday. This was the largest increase in price for this grade since about a week.
The United States may be able to find alternative supplies but the cost and price of these barrels will put pressure on the margins of U.S. refining plants, especially in light of U.S. sanctions against Russian oil which have already reduced heavy crude supply.
Trump's decision to stop buying Venezuelan oil comes just days before the end of his one-month-long suspension on Canadian and Mexican oil duties. Tariffs on these products would result in a significant reduction of heavy crude oil supplies along the U.S. Gulf Coast.
Rohit Rathod is a senior analyst for Vortexa and a senior oil industry analyst. He said that Gulf Coast refiners would look at alternative heavy crude oils such as Colombian. He added that refiners could also consider the Middle East as a source of heavy crude oil.
A trading source stated that higher volumes of Guyanese crude oil could make their way to the United States. Another source indicated that U.S. refiners will likely be looking for heavy fuel oil coming from Brazil.
A trader stated that "the news could definitely support other grades, including Colombian temporarily even though some refiners are actively substituting crude oil with fuel oil or taking lighter domestic crudes as feedstocks."
In January, Daniel Noboa, President of Ecuador said that his country would be able to increase its exports up to 250,000 barrels per day to countries who currently buy Venezuelan oil in order to cover any shortfall due to license terminations in Venezuela.
Valero Energy Corporation was the leading Venezuelan crude oil processor in 2024. Chevron, PBF Energy and PBF Energy were next.
Trump stated that the termination of licenses would be effective on March 1, 2019. The fate of Venezuelan crude oil cargoes currently sailing to U.S. port or about to leave Venezuela until the end of this month was unclear.
Rathod stated that Washington may allow Chevron the same option as before and discharge the cargoes sent before the deadline. In the worst case scenario, the cargoes will be resold, most likely in Europe or India.
Chevron ships between five and six cargoes per week of Venezuelan crude oil to its U.S. refineries, as well as to other countries. This contributes significantly to the shipping activity in Venezuelan ports and those nearby such Aruba.
Chevron announced that it was evaluating the impact of the Trump administration's announcement to terminate its deal with Venezuela.
(source: Reuters)