Latest News
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Iran confirms the seizure of a tanker carrying petrochemical cargo on the Gulf
Iran's state media confirmed that the Revolutionary Guards seized on Saturday a tanker in Gulf water carrying a cargo petrochemicals bound to Singapore due to alleged violations. An official from the United States and sources in maritime security said that Iranian forces had intercepted and diverted the oil tanker into Iranian territorial water on Friday. This was the first time that a tanker had been seized by Tehran since Israeli-U.S. airstrikes on Iran in June. The Iranian state television broadcast a statement by the Islamic Revolutionary Guard Corps, stating that 'the tanker violated for carrying unauthorized goods. The statement did not give any further details about the alleged violations. According to maritime sources, the Talara tanker was sailing near the coast of the United Arab Emirates and carrying a cargo containing high-sulfur gasoil from Sharjah, in the UAE, through the Indian Ocean on its way to Singapore. Columbia Shipmanagement, the vessel's manager, said that it lost contact with Talara on Friday morning at around 20 nautical mile off the coast Khor Fakkan in the UAE. The company said it was working with all relevant parties to restore contact, including maritime agencies and the vessel owner. The ship's owner is Cyprus-based Pasha Finance. The U.S. Military said in a statement that it was aware of this incident and actively monitoring the situation. In recent years, the IRGC of Iran has repeatedly seized commercial ships in Gulf waters, citing maritime infractions such as alleged smuggling or technical infractions, or legal disputes. The U.S. official who spoke on condition of anonymity said that the incident was surprising, since Iran hadn't carried out such operations in the recent months.
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Italy's Snam cancels German gas contract amid Berlin's concerns about China
Snam, the Italian gas grid operator, announced on Friday that it had scrapped its plans to buy a minority stake of Germany's biggest independent gas transmission company. The German Economy Ministry has resisted. Berlin's concern over the 920 million-euro ($1.1billion) transaction is due to the fact that China's State Grid is an indirect shareholder in Snam. This was reported earlier today, citing sources who are familiar with the issue. The Italian group has signed an agreement in April to purchase a 24.99% share in Open Grid Europe Infinity Investments in Abu Dhabi has acquired the owner of's (OGE), Vier Gas Holding, with the aim to enter Germany's gas market, which is the largest in Europe. Snam, in a press release, said that the German authorities had terminated the agreement after an extensive review of foreign direct investments. They also stated that Snam's proposed solutions to obtain regulatory clearance were deemed inadequate. The company said that this development would not affect its financial forecast for 2025. Since the agreement, Germany's Economy Ministry has been reviewing the contract. The German government's resistance is a reflection of the European governments' tougher stance on Chinese investment in Europe because of security concerns. Agostino Scrnajenchi, CEO of Snam, had previously indicated that the company would not pursue an acquisition "come Hell or High Water" during the lengthy approval process. Germany has blocked China's State Grid from buying a stake in 50Hertz, a power grid operator in 2018.
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CANADA-CRUDE-Discount on Western Canada Select narrows slightly
On Thursday, the discount between West Texas Intermediate and Western Canada Select futures (the North American benchmark) decreased slightly. WCS for Hardisty, Alberta delivery in December settled at $11.65 per barrel, which is $1.65 below the U.S. benchmark WTI. This was down from $11.70 a barrel on Thursday. Michael Berger, Enverus analyst, stated that Canadian crude storage levels are below the average for the past five years. Trans Mountain, the pipeline that exports Canadian crude via the Pacific Coast to U.S. markets and Asian ones, has not been apportioned in November. This is another factor contributing to the narrow differential. The industry uses the term apportionment to describe when demand for space on pipelines exceeds its capacity. Berger says it is more difficult to predict the WCS discount over the long-term because of the possibility that policy and regulatory changes could occur in Canada, which would encourage oil producers to increase their production. * Oil prices in the global market rose by more than 2% on Friday, as Russia's Novorossiisk port halted exports of oil following an attack by a Ukrainian drone that targeted a depot at Russia's energy hub. This sparked supply concerns. (Reporting from Amanda Stephenson, Calgary; Editing and proofreading by Tasim Zaid)
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Cheniere expects US LNG plants to use 40 bcf per day of natural gas in the coming years
Anatol Feyegin, Chief Commercial Officer at Cheniere Energy, said that U.S. LNG plants may be able to take up as much as 40 billion cubic feet of natural gases per day over the next few years. According to LSEG data, U.S. LNG plants are using a record amount of natural gas (18 bcfd) to produce LNG. Feygin, speaking at a Federal Reserve Bank of Kansas City seminar, said that the increased demand for gas liquefaction may lead to higher natural gas prices. Prices have risen by 62% in the last year and could become even more costly towards the end of this decade. "You saw it in 22/23 when COVID came out. LNG returned to full utilization, and then increased. Nymex saw an increase in the single digits. Feygin stated that the supply would respond very quickly, indicating that drillers could increase production to meet increased demand. The executive stated that there is concern about a glut of LNG as more capacity is added. However, he said that Asian countries like Bangladesh and Pakistan may be drawn in by the lower prices to increase demand. Feygin stated that the world will need 30 million metric tonnes of LNG each year to meet the global demand growth. The majority of this new capacity will come from the U.S. He said that rising construction costs were behind some of the final investment decisions made in U.S. LNG. Feygin explained that "more than two-thirds" of the FID in this year were completed because fixed-priced EPC contract expires soon and the rush was on to keep the cost of construction of the LNG plant low. Feygin stated that the U.S. gas sector could produce up to 300 mtpa. However, he acknowledged that this rapid growth could be a challenge for some producers who are not prepared to deal with periods of low prices. He warned that only 17% of new capacity from plants which reached FID in this year had been sold on long-term contracts. Many portfolio players were unprepared. Curtis Williams, Houston (Reporting) and Leslie Adler Nathan Crooks Edmund Klmaann edited the article.
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Republican state AGs express concerns over Union Pacific's deal with Norfolk Southern
Nine Republican attorneys general raised concerns on Friday about Union Pacific's plans to purchase smaller rival Norfolk Southern for $85 billion, creating the first U.S. Coast-to-Coast freight rail operator. In a letter sent to the Surface Transportation Board by Tennessee Attorney-General Jonathan Skrmetti, and Kansas Attorney-General Kris Kobach that was seen by, the officials expressed concern about the deal, which they said would result in "undue market consolidation" and "stifle competition, resulting in higher prices, less reliability and less innovation, at the expense America's producers and consumers." If approved, the tie-up could help reshape U.S. freight railroad industry, streamline operations, and eliminate interchange delays at key hubs such as Chicago. Attorneys general from Ohio, Florida and other states, including North Dakota, South Dakota Mississippi, Montana, and Iowa, said that the merger could lead to high shipping costs, which could "kneecap American manufacturers' ability compete with foreign companies." The group also stated that "the downstream impact of the merger poses a significant risk, not only for our industrial base, but also for our agricultural producers." This merger, in the end, could compromise our national safety. Union Pacific responded on Friday by saying that it is looking forward to submitting their application to the STB to "detail how this combination will be good for America, meet the threshold to advance public interest and increase competition." The railroad said it has won the support of key unions as well as others in order to "ensure that rail is not forgotten." Norfolk Southern has not yet commented. The railroads announced earlier on Friday that over 99% of both companies' shareholders voted for the merger. The STB could take between 12 and 18 months to review the deal. Railroads have been struggling with the volatile nature of freight volumes, increasing labor and fuel prices, and increased pressure from shippers regarding service reliability. After meeting with Union Pacific CEO Jim Vena in September to discuss the largest U.S. railroad merger for decades, Donald Trump stated that the merger "sounds great to me". Union Pacific is the dominant freight rail carrier in Western United States. Norfolk Southern, on the other hand, is the leading carrier in Eastern United States. Together, the two railroads form one of four major U.S. class I railroads along with BNSF Railway, CSX Corp and BNSF Railway.
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White House claims that Alibaba is assisting Chinese military to target US, reports FT
Financial Times reported on Friday that Washington accused the online marketplace Alibaba of providing technology support to Chinese military operations targeting targets in the United States. The memo was cited by the White House. The FT reported that the national security memo contains declassified top-secret intelligence about how the Chinese group provides the People's Liberation Army (PLA) with capabilities the White House believes could threaten U.S. Security. The report didn't specify what capabilities or operations are involved or if the U.S. is trying to respond. Alibaba shares in the U.S. fell 4.2% following the news. Alibaba issued a statement saying that "the assertions and innuendos contained in the article were completely false." "We doubt the motivation behind this anonymous leak which The FT admits they can't verify. This malicious PR campaign clearly came from an rogue voice that was looking to undermine President Trump’s recent trade agreement with China. The Chinese Embassy in Washington has not responded to an immediate request for comment. (Reporting and editing by Susan Heavey, Matthew Lewis, and Jasper Ward from Washington)
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Airlines urge FAA to stop flight cuts because controllers are paid
After the government shutdown ended, major U.S. Airlines are asking the Federal Aviation Administration (FAA) to remove the mandatory 6% domestic flight reductions at 40 major airports. The cuts were imposed in order to address safety concerns regarding air traffic. The FAA's order, which requires far more drastic cuts, is not being followed by most airlines. Cirium, a firm that provides aviation analytics, reported airlines cancelled just 2% of flights on Friday, down from 3.5% Wednesday and Thursday. The FAA and union officials announced that air traffic controllers, and other FAA staff, began receiving their back pay on Friday. This is equal to approximately 70% of the amount they owe, excluding overtime. Officials told that airlines have privately argued to the FAA to stop the cuts, and some plan to cancel few or no flights this Saturday. After Congress voted for reopening the government following a 43-day shut down, FAA decided to reduce those cancellations on Wednesday. The FAA did not increase the cuts to 8% or 10% as announced previously. Instead, they remained at 6%. Transportation Secretary Sean Duffy stated Friday that only a handful of controllers had been absent on Thursday, as operations have improved dramatically. Duffy stated, "We are reviewing the data and working hard to restore the airspace to normal." Separately, on Friday, a group led by Rick Larsen (the ranking member of Transportation and Infrastructure Committee) asked the administration to provide specific safety data and compare it to the previous six months. The Democrats said that it appeared the administration took this decision without consulting key aviation stakeholders. United Airlines announced that it had cancelled 134 flights for the Friday after canceling 222 flights Thursday. There are about 3,500 fewer air traffic controllers than the FAA needs to meet its target staffing levels. Before the shutdown, many had already been working six-day weekends and mandatory overtime. Since October 1, when the 43 day shutdown began, there have been tens or thousands of cancellations and delays in air traffic. (Reporting and editing by David Shepardson, William Maclean.)
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Lukoil Moldova grants free fuel use to the government in spite of US sanctions
The Moldovan energy minister announced on Friday that Lukoil Moldova has agreed to give the government of Moldova free access to its fuel terminal located at the airport in Chisinau. Energy Minister Dorin Junietu stated in a press release that the move was made to ensure stable airport operations when U.S. Sanctions against the Russian owned company come into effect later this month. The U.S. sanctions against Lukoil and Rosneft were linked to the Russian war in Ukraine. The company is the only supplier of fuel to Eugen Doga Airport, Moldova's sole airport. Moldova's pro European authorities announced this week that they have proposed to buy the airport infrastructure of the firm, including storage facilities, in order to guarantee aviation fuel supplies in the country located between Ukraine and Romania. Junghietu said on Friday that the government had reached an agreement to supply fuel at the airport with a Romanian firm in the near future.
Ivory Coast President Ouattara hopes to ride the economic boom into a fourth term
Alassane Ouattara had a long road to become president of the Ivory Coast. It included two elections where he was disqualified and a brutal civil war in 2010-11, sparked by his predecessor refusing to leave office.
Since he assumed the top position in 2011, he has won landslide elections in 2015 and 2020.
The 83-year old former international banker hopes that he can repeat the feat for the third time and possibly the final one when West Africa's largest cocoa producer votes on October 25, 2010.
Ouattara’s supporters claim that his victory at the polls reflects the satisfaction of voters with the strong economic growth since taking office, and the flurry infrastructure projects he has undertaken. These include new roads and interchanges as well as a 300-metre tower which dwarfs the rest of the skyline in the city center.
His critics claim that it is also about restrictions on democratic activities. Amnesty International, for example, criticised the "disproportionate" ban of election-related demonstrations on Thursday.
Tidjane Thiam - the man analysts said would be Ouattara’s biggest rival - was excluded from running after a court ruled that he held French citizenship when he registered. This is against Ivorian law.
Laurent Gbagbo, Ouattara’s predecessor, is not eligible to run because of his prior conviction.
Analysts said that those who were allowed to run for office did not have the support of the major political parties in the country, which hindered their ability to mobilize large numbers.
Cesar Flan-Moquet, Director of the Centre of Political Research of Abidjan (a think tank), said that instead of forming "makeshift alliances", the four candidates of the opposition are divided between themselves.
He said: "All of this means that the candidates don't really have a shot."
The turbulent rise to the top
Born on 1 January 1942 in Dimbokro, central Ivory Coast, Ouattara earned a PhD in economics at the University of Pennsylvania and rose to become deputy director of the International Monetary Fund.
Later, he became Prime Minister under the founding president Felix Houphouet Boigny. His death in 1993 brought about a more toxic period of Ivorian Politics.
In 1995, new electoral rules were introduced, which included a requirement that candidates must have lived in Ivory Coast during the five previous years. This prevented Ouattara running for office.
In 2020, he was again excluded because one of his parents is from Burkina Faso. Gbagbo called Ouattara, the winner of that election, "a foreigner candidate".
The 2002 revolt against Gbagbo divided the country, leaving the northern half of the country under the control of rebels. Many of these were from the ethnic group of Ouattara, the Dioula.
The war was mostly the result of xenophobic policy by successive Ivorian government against migrant farmer from Burkina Faso, Mali and northern Ivorians who had cultural ties with them.
In 2010, Ouattara and former President Henri Konan Bedie formed a pact that helped him win the runoff election against Gbagbo.
Around 3,000 people were killed in the fighting that broke out after Gbagbo refused to accept his defeat before Ouattara took office in April 2011.
Ouattara was re-elected in 2015 and 2020 with little difficulty, although the last vote was marred violent clashes between rival supporters which killed 85 people.
Uncertainty about who will be the next?
The tensions are not as high as they were in 2020 when the critics were more upset over Ouattara’s claim that a 2016 constitution had reset his limit of two terms.
Jessica Moody, a West Africa political consultant and expert on risk management, says that the protest ban as well as the deployment of 44 000 security forces will prevent large-scale unrest.
Ouattara will likely spend his fourth term focusing on economic goals, such as making Ivory Coast into a middle-income nation by 2030, opening a new metro in Abidjan, and improving access to electricity and roads.
He also tried to answer the question about his successor before the 2020 elections by naming Amadou Coulibaly, the then Prime Minister.
Coulibaly passed away a few months later and Ouattara reneged on his promise of handing power to a younger generation.
Moody stated that choosing a successor would be a difficult process due to the divisions in the ruling party. However, it was not impossible.
She said, "I don’t believe he lacks motivation to step down." He will be 88 years old by the time of the next election. (Reporting and editing by Ed Osmond, Loucoumane coulibaly and Robbie Corey Boulet)
(source: Reuters)