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Sources say that the Urals freight rate to India increased in October due to high exports and tighter sanctions.
Industry sources say that the rate of shipping Urals crude oil from Russia's western port to India has risen sharply since October due to increased exports and sanctions. The U.S. president Donald Trump imposed additional sanctions on Russia's largest oil producers Lukoil, and Rosneft on Wednesday. The European Union also approved its 19th set of sanctions against Moscow on the same day. The EU added 117 vessels, mostly tankers, to its shadow fleet of ships that are linked to Russia. This brings the total up to 558. The crude oil loadings in Russia's western port of Primorsk remained high in October, at around 2.3 millions barrels per day. This is slightly lower than the record of 2.5 million barrels a day fetched in Septembre, due to volumes released by unplanned refinery repairs. The cost of transporting Urals to India from the Baltic port of Primorsk or Ust-Luga for loading in November has risen from $7 million for one-way trips at the beginning of the month. One trader stated that the offer prices for individual vessels had approached $10 million. However, no fixtures at these levels have been confirmed. Sources said that Urals shipments out of Russian ports are now handled largely by tankers in the shadow fleet while Greek shipowners reduce their presence on the market. One source stated that "the number of Greek shipowners actively involved in the market is at a minimum." The United States has launched a new round of sanctions against Russia's oil industry, among the most severe yet. These sanctions have hit major exporters, insurance companies, traders, and shipping firms and caused a dramatic rise in freight costs. (Reporting and Editing by Louise Heavens).
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Asian spot prices barely changed due to high inventories and softer demand
The Asian spot prices for liquefied gas were largely unchanged this week, as low inventories and weaker demand countered regional cold snaps. Further sanctions against Russian LNG are also a possibility. Average LNG price for delivery to North-east Asia in December Industry sources estimate that the price per million British Thermal Units (mmBtu) was $11.20, up from $11.10/mmBtu in the previous week. Go Katayama, Kpler analyst, said: "An early chill in North China boosted demand and supported regional prices." He added that "next week, the price downside due to higher domestic gas production, high inventories in China and softer demand in Thailand, as well as softer demand is offset by upside from additional heating demand due to cold spells in Korea, northern China and Russian LNG sanctions risk." The European Union adopted this week a 19th set of sanctions against Russia, including a prohibition on Russian LNG imports. Meanwhile, the United States imposed sanctions against Russia's major oil companies. Martin Senior, head LNG pricing at Argus, says that in Japan, a stronger heating demand will be expected this month, as temperatures are forecasted to fall below the seasonal averages. However, this has yet to translate into an additional spot demand. The European Picture Gas prices in Europe fell on Friday, despite concerns about the impact of Russian sanctions on energy supplies. TTF trading was relatively quiet in the week ended October 17. Seb Kennedy, an independent gas analyst, noted that the net long positions held by hedge funds and commercial participants were mostly unchanged. This reflects confidence in Europe's short-term gas supply outlook. Kennedy said that the number of funds with positions has increased to 438. This is a record-high, and Kennedy believes it could lead to big moves. Katayama, from Kpler, said that prices are expected to stay stable next week. This is due to the fact that there will be ample LNG and pipeline supplies, and strong wind power generation, which puts downward pressure on gas for electricity demand. These factors will be offset by temperatures lower than average and renewed geopolitical tensions. Aly Blakeway is the manager of Atlantic LNG for S&P Global Commodity Insights. She said that Europe, with less storage than in the past two years, may experience a strong demand this winter from Central and Eastern Europe to replace lost Russian volumes during the heating season. S&P Global Commodity Insights estimated its daily North West Europe LNG Marker price benchmark (NWM) for cargoes to be delivered in December ex-ship on October 23 at $10,534. This is a $0.55/mmBtu reduction from the December futures prices at the TTF Hub. Spark Commodities estimated the October price to be $10.421/mmBtu. ATLANTIC FREIGHT RATES AND PACIFIC RATES RISE Qasim Afghanistan, Spark Commodities analyst, says that the U.S. arbitrage for front-month cargoes going to Asia via Cape of Good Hope has caused U.S. cargoes being delivered to Asia. The global LNG freight rate in the Atlantic has risen for the second consecutive week, and is now $34,500/day. Pacific rates have risen for the first nine weeks, to $28,250/day. Marwa Rashad reported. Mark Potter (Editing)
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US companies grapple with the economic divide as lower-income struggles mount
As tariffs increase uncertainty, U.S. businesses across all industries feel the pinch from the growing divide between low-income consumers and wealthy consumers. As the latest quarter results continue to roll in, bellwethers like Coca-Cola and other companies such as hoteliers, toymakers, and financial-services providers have revealed their impact. Mark Zandi is chief economist at Moody's Analytics. He said that businesses are feeling the impact of the growing gap between those who have and those who don't. It is a difficult business environment for companies who don't cater the wealthy. Affluent customers continue to support overall spending, despite rising prices. Lower-income households are pulling back on purchases or delaying them. Target, which reported weak sales for several quarters due to missteps in merchandise, retail crime and inventory management said on Thursday that it would be cutting about 1,800 positions as part of the turnaround under the incoming CEO Michael Fiddelke. The retailer is set to announce its quarterly results in the next month. It stocks a lot of non-essential items that consumers on lower incomes have avoided buying over the past year. In a National Retail Federation poll, nearly two-thirds (up from 59% last season) of respondents plan to do most of their shopping for the holidays during Thanksgiving weekend to get discounts. The deferred expenditure is evident in other areas as well. Replacement auto parts retailer O'Reilly Automotive raised its annual revenue target after stronger-than-expected sales, but CEO Brad Beckham said some customers were delaying major repairs, a trend not seen earlier this year. He told analysts that he was seeing some customers who were putting things off. American Airlines raised its profit forecast for 2025 on Thursday, citing a robust demand for premium high-margin services. CREDIT MARKET JITTERS The U.S. Credit Market has been shaken by several high profile bankruptcy filings of lenders who serve primarily lower-income groups. PROG Holdings cut its revenue forecast on Wednesday and announced that it would tighten lease approvals because of economic headwinds. Steve Michaels, CEO of the company, said that while the unemployment rate was still low overall, "the increased financial stress and greater caution by lower-income consumers in our leasable category is a headwind for gross merchandise volume". Consumer sentiment surveys indicate that consumers are pessimistic about inflation and future conditions, despite some estimates showing steady headline spending. PrimaLend Capital Partners filed for bankruptcy on Wednesday. The company finances cars for people with bad or limited credit by using the "buy here-pay here" market. Tricolor filed for bankruptcy in September. The company sold cars and provided auto loans to Hispanic low-income communities in the Southwest of the United States. Some wins, some losses This split is also visible within the individual companies. Hasbro, the parent company of GI Joe and Barbie maker Mattel, reported a sharp drop in toy sales during the third quarter as retailers delayed their orders because customers were more cautious. Hasbro's gaming division, which targets wealthier consumers and caters to them, has helped it achieve its annual target on Thursday. Hilton Hotels and Wyndham Hotels, among others, have also announced a softening in their budget brands, and offered discounts to attract price-conscious travelers. Geoffrey Ballotti, CEO of Wyndham Hotels, said that franchisees on lower scales were beginning to offer discounts to try and capture the demand at this time. We help franchisees in any way we can, and encourage them to keep rates at a level that makes sense. Bet on smaller packs Coca-Cola gains from its sparkling water and premium protein milk brands Topo Chico. It also sells its flagship drinks in smaller packs, targeted at consumers with lower incomes. "Our system is adapting in the U.S. to both the upper and lower end. Both offer opportunities and challenges." John Murphy, Coca-Cola CFO, said that affordability and value were important at the lower end. Dana Telsey, analyst at Telsey Advisory Group, says that the new 25% tariffs imposed by Donald Trump on medium- and heavy duty truck imports starting November 1 will add another challenge. She said that for companies in high-competitive sectors, where price elasticities are high, they may have limited room to increase prices. This could force some firms to absorb a portion of the cost increases. (Reporting and editing by Sriraj K. Kalluvila in Bengaluru, Juveria T. Tabassum, Niket Nishant)
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Japan scrambles jets when nuclear-capable Russian Bombers fly near
Japan scrambled jets to monitor Russian warplanes that flew along the Japanese coast, including strategic bombers with nuclear weapons. In a press release reported by the state-owned RIA, Russia's Defence Ministry confirmed that jets from a different country escorted its Tu-95 Bombers during a routine patrol over neutral waters. The incident occurred just hours before Japan’s new Prime Minister, Sanae Taichi, promised in her first address to the parliament after taking office that she would accelerate a defense buildup. Takaichi stated that Russia's military actions, as well as those of China and North Korea were "a serious concern". The Japanese Ministry of Defence has released a map that shows the flight path of Russian planes over the Sea of Japan, off the west coast of Japan. The two Tu-95 Bombers, accompanied by the two Su-35 Fighters, flew towards Japan's Sado Island and then turned north. Shinjiro Koizumi, Defence Minister Shinjiro Koizumi, wrote in a post on X that "Russia conducts military operations daily around our country while invading Ukraine. This is the reality." Takaichi praised Ukraine’s President Volodymyr Zelenskiy, and the people of Ukraine for their courage in "standing up against the aggressiveness day by day". In recent weeks, European countries have accused Russia of repeated incursions by drones and jets. The most recent was Thursday when NATO member Lithuania claimed that Russian fighters briefly entered its airspace. Moscow denied its planes were involved in nearby exercises had entered Lithuanian airspace. (Reporting and editing by Peter Graff in Tokyo)
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Maguire: Malaysia's coal blitz shows how other nations are able to capitalize on the LNG boom.
Not only the U.S.A., Qatar and Australia are fighting for a piece of the lucrative market for LNG exports. Malaysia also wants to get a piece of the lucrative LNG export market and is upgrading its own power-generation system. Data from Kpler & Ember show that Malaysia has increased its thermal coal imports to record levels and coal-fired power generation to new highs. Malaysia, the 11th largest producer of natural gas in the world, can now export gas in the form liquefied gas and earn valuable trade revenue. The coal-for gas adjustment is not without cost. Since the country must import most of its coal, it has led to a spike in emissions in the power sector, which are now the highest ever recorded this year. The coal boom can be justified by the fact the country earns roughly twice as much from LNG exports than it does on coal imports. Malaysia's LNG-export drive is likely to continue on economic grounds, even if the extra LNG volumes it wants to sell could add to the already oversupplied markets of the world in the future. Import BOOM Malaysia imports between 30 and 35 million tons of thermal coal each year according to Kpler's data. The U.S. Energy Information Administration estimates that Malaysia produces 3 to 4 million metric tonnes per year. According to data from customs, coal imports, mainly from Indonesian neighbours cost between $5 and $6 billion per year. According to Ember, the burning of this coal, which produces roughly half of Malaysian electricity, emits about 72 million tonnes of CO2 each year. Malaysia was able to reduce the share of natural gas in its electricity production by systematically increasing the coal share from less than 10% at this century's start. Ember data show that natural gas accounted for around 80% in early 2000s of Malaysia's electrical supply, but this has dropped to around 30% in 2025. GAS FREEDOM (TO SELL) Malaysia has been able to increase its gas exports due to a reduction in the use of gas at home. The country realized this was a lucrative revenue source decades ago. Malaysia has been consistently among the top five LNG suppliers since the early 2000s. Malaysian energy companies relied on gas as the main source of electricity in the country and also one of its most profitable exports until about a decade back. Since then, the authorities have been working to slow down the growth in domestic gas usage for power generation, so that more could be diverted into LNG export hubs, and then onto highly-paying markets like Japan and South Korea. Malaysia's decision on gas conservation was largely driven by the fact that Malaysia's domestic gas reserves are at their peak and will soon be in terminal decline. According to Energy Institute data, Malaysia's proven natural gas reserves were around 1.15 trillion cubic metres around 20 years ago. However, they were last estimated around 910 billion cubic metres. Money Matters According to company filings, Malaysian national oil and natural gas company Petronas is committed to increasing LNG export volumes and has plans to build a third floating LNG facility by 2027. Although the exact terms of the LNG export deal are not disclosed, estimates from the industry place the country's annual LNG export earnings at approximately $12 billion. The economic case for continuing to export LNG in the long-term seems strong. These export revenues are about twice as much as it costs to import coal. Malaysia imports LNG when prices are right and power requirements dictate. Malaysia has agreed to purchase U.S. LNG in trade talks that aim to avoid U.S. tariffs for Malaysian exports. Malaysia is expected to continue being a net LNG exporter for the foreseeable. Due to its proximity to Asian buyers, compared to Australia and the U.S., the planned growth of LNG exports may cause rivals to rethink their plans to increase sales profitably in the future. These are the opinions of a columnist who writes for. You like this article? Check it out Open Interest The new global financial commentary source (ROI) is your go-to for all the latest news and information. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on You can find us on LinkedIn.
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Memo says that staff shortages are causing two Canadian airport towers to be closed periodically due to lack of staff.
According to an Air Canada memo sent to pilots, a shortage of air traffic control officers in Canada can sometimes force airport towers to close at Kelowna airport and Winnipeg airport when the controller on duty is on a break. The memo dated October 14 stated that Air Canada had advised its pilots not to fly to the two airports located in British Columbia and Manitoba if staffing shortages were severe enough to force the closure of their air traffic towers. The number of times the airports were closed was not clear and their representatives didn't immediately respond to comments. NAV CANADA (which manages Canada's civil aviation system) has informed airlines that there will be air traffic control shortages at Winnipeg and Kelowna "but it could spread to other airports." NAV CANADA announced in a Thursday statement that the closures of Winnipeg and Kelowna were planned during "low traffic periods" to minimize impacts. The closures are also being implemented to ensure employee safety and to maintain safe operations. The statement did not give details on the normal staffing at these towers. Closures in North America are the latest example of a shortage of air traffic control staff, which could lead to flight delays or increased costs for carriers. The memo stated that affected flights in Canada would require additional fuel as they may need to remain in a holding pattern, or divert, due to a shortage of controllers. The United States is experiencing a shutdown of the government, which has caused a shortage in air traffic control staff. According to the Federal Aviation Administration this week, the issue has resulted in delays at many airports. Nick von Schoenberg is the president of CATCA which represents Canadian controllers. He said that the Canadian airport closings went beyond Winnipeg and Kelowna, and were meant to give controllers a break due to fatigue. He said that the closures "indicate a system with a lack resilience due to staffing issues." Tim Perry, President of the Air Line Pilots Association in Canada (which represents Air Canada Pilots), said that the lack of stability caused by shortages needs to be addressed. He said that "Air traffic control shortages continue to cause delays at airports throughout Canada." (Reporting by Allison Lampert, Montreal; Editing Jamie Freed).
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MSC drops Moby after Italian antitrust probe
The Italian antitrust regulator announced on Friday that Shipping Agencies Services, a unit within maritime group MSC would abandon its purchase of a 49 percent stake in ferry operator Moby. This was after the watchdog launched an investigation into alleged restrictions of competition. Moby is majority owned by Onorato Armatori, which operates ferries that connect the Italian mainland with tourist islands like Sardinia or Corsica. The Italian authority that opened an investigation last year into the acquisition said the deal may have affected competition on routes operated by Moby and Grandi Navi Veloci, a ferry company controlled by SAS. According to the agreements made by SAS and Moby the watchdog stated that SAS would transfer its 49% stake without consideration in Moby to Onorato Armatori. Moby will mandate a third-party independent to open a "competitive, transparent" procedure to sell a package assets. The proceeds will be used to pay back a loan given to Moby in 2023 by SAS. SAS and Moby are also compensating customers who purchased tickets before July 16th. (Reporting and editing by Gail Jones, Gianluca Smeraro).
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Bankers report that two Indian infrastructure investment trusts are planning to launch their first bond sales in the coming weeks.
According to banking sources two Indian infrastructure investment trusts plan to raise over 26 billion rupees (297 million dollars) in their debut bond issue between October and Novembre. They join a growing number of vehicles that are using the debt market to raise funds. The three bankers announced on Friday that Oriental Infratrust plans to raise 8.3bn rupees by issuing a mix of notes with a maturity between three and 14 years, and IRB InvIT Fund aims at raising 18bn rupees via bonds with ten-year maturities and five-year maturities. Rating agencies such as Crisil India Ratings, and Care Ratings have assigned the planned issuances an 'AAA rating'. The InvITs have not responded to emails seeking comments, while the bankers asked for anonymity because they are not authorized to speak with the media. InvITs, which are similar to mutual funds and allow both individuals and institutions direct investment in infrastructure projects, are investment schemes that work like mutual funds. InvITs are an alternative investment because they allow investors to share in the dividends generated and the capital gains made from the appreciation of their units. Since the launch of this structure a decade back, ten InvITs raised funds via corporate bonds. Sustainable Energy Infra Trust (SEIT) and Capital Infra Trust made their debut issues this year. The regulator of the Indian markets, Securities Exchange Board of India is registered with 27 firms. According to Bharat INvITs Association, they managed assets of more than 7 trillion rupees at the end of March, with a capitalisation market of 2,40 trillion rupees. Prime Database reports that these vehicles are owed 530 billion rupees. Over 65% of this debt was issued during the financial years of 2025 and 2026. $1 = 87.7250 Indian Rupees
Brazil's Lula is open to discuss tariffs with Trump about Venezuela
Luiz inacio Lula da silva, the Brazilian president said on Friday that he would be willing to talk about a variety of topics with Donald Trump, if they were to meet. These include tariffs on Brazilian imports and tensions between Brazil and Venezuela. Lula, who spoke in Jakarta just before he left for the ASEAN summit in Malaysia, said that the meeting was highly anticipated, but it has not yet been confirmed.
Brazil's President plans to argue the tariffs of 50% imposed by Washington against Brazilian goods was a "mistake". Citing a $410 Billion U.S. Trade Surplus with Brazil over a 15-year period.
Lula told journalists that there are no forbidden subjects. "We can discuss Gaza, Ukraine Russia Venezuela, critical materials rare earths, anything."
Trump raised tariffs on U.S. goods imported from Brazil to 50%, up from 10% early in August. He attributed the increase to what he described as a witch hunt against Bolsonaro. Lula also criticised U.S. sanctions against Brazilian officials including Supreme Court Justice Alexandre de Moraes who presided over the trial which led to Bolsonaro being convicted of attempting a coup.
Lula expressed his desire to have a conversation with Trump on Venezuela. He urged respect for international law, and sovereignty, amid reports about U.S. military operations in the area.
The White House did not confirm the meeting and Lula was not mentioned during Trump's Asia briefing.
(source: Reuters)