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UAE smuggles oil tankers hidden through Strait of Hormuz in a bid to sell
According to shipping data and industry sources, the United Arab Emirates, along with buyers, have recently sailed several oil tankers through the Strait of Hormuz to transport the oil that has been bottled up by the Middle East conflict in the Gulf. These volumes are only a fraction of what the UAE used to export before the U.S./Israeli war against Iran, but they demonstrate the risk that the buyer and producer are willing to accept to increase oil sales. Saudi Arabia, Kuwait and Iraq have all stopped selling oil, or cut prices dramatically to attract buyers who are not interested. According to SynMax and Kpler, Abu Dhabi National Oil Co. managed to export 4 million barrels Upper Zakum Crude and 2 million barrels Das Crude on four tankers in April from terminals within the Gulf. According to three sources, including one who had direct knowledge and two others familiar with ADNOC operations and the SynMax and Kpler data, the shipments were either shipped directly to South Korean refineries or unloaded via ship-to-ship transfer. This is the first time that this system of exports has been reported. ADNOC refused to comment on the shipments. Tehran's response to the U.S. and Israeli attacks, which began on 28 February, was to effectively close the Strait of Hormuz for all exports except its own. This resulted in a fifth of the global oil supply being bottled up. In recent weeks, the U.S.-led blockade of Iranian exports has led to a global increase in oil prices above $100 per barrel. Kpler data shows that ADNOC had to reduce exports by over 1 million barrels a day since the beginning of the war from the 3.1 millions bpd they shipped last year. Kpler data shows that ADNOC exports mainly its Murban grade, which is transported by pipeline via onshore fields from Fujairah. RISKY - Sailing ADNOC's shipments risks attacks from Iran. The UAE claimed that Iran had used drones on Monday to attack a Barakah tanker carrying empty ADNOC fuel, which was passing through the Strait of Hormuz. Transponders of the automatic identification systems are turned off on the ships, reducing the chances that they will be detected by Iranian forces. Iran uses this tactic to avoid U.S. sanctions against its oil exports. The data on industry shipping makes it hard to determine the volume of ADNOC exports, so the amount it shipped in April from the Gulf could have been higher. Kpler data shows that the VLCC Hafeet departed the strait in April 15 after having loaded 2,000,000 barrels of Upper Zakum into the Gulf. Kpler data showed that the VLCC Hafeet loaded 2 million barrels of Upper Zakum inside the Gulf on April 7 and exited the strait on April 15. Hafeet's management is under the Logistics and Services division of ADNOC. ADNOC declined to comment. Olympic Shipping & Management in Greece, which manages Olympic Luck and Petronas, did not respond to requests for comment. The STS method allows ADNOC the opportunity to sell smaller quantities of oil and to free the VLCCs up to return quickly to the Gulf for reloading. Source with direct knowledge said that one of the "broken-up cargoes" of Upper Zakum was shipped to a refinery in Northeast Asia and sold for a record $20 per barrel more than ADNOC's price. Kpler data revealed that the VLCC Aliakmon I, which was loaded with Abu Dhabi's Das Crude on April 27, departed the strait in May 2 and discharged at Oman’s Ras Markaz Storage Terminal on May 3. Kpler data and SynMax found that two Suezmax tankers, the Zouzou N and the Odessa, were carrying Upper Zakum in each case 1 million barrels. They then headed for South Korea. Dynacom Tankers Management, based in Greece, manages all three tankers. The Dynacom tankers were not chartered and the company didn't respond to our?request for comments. ADNOC plans to continue selling oil from within the strait. It informed some customers late in April that they could load Das crude and Upper Zakum from?May through STS transfers to ports outside the Gulf, including Fujairah's Sohar and Oman’s Sohar. Sources with direct knowledge about ADNOC plans and an Indian refinery source who declined to identify themselves because they were not authorized to speak with the media said that the company was in talks with Asian refining companies to sell cargoes for May-loading Das or Upper Zakum.
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Cheniere Energy reports quarterly loss on LNG derivative contracts
Cheniere?Energy swung from a profit to a loss during the first quarter of this year, Thursday. This was due to?billions?of?dollars?in losses related to LNG-linked contracts. The company's results were hurt primarily by a $4.8 billion change in value of derivative agreements linked to long-term LNG contracts. The volatility in the global liquefied 'natural gas markets after the U.S./Israeli war against Iran affects?energy companies even though demand for U.S. 'LNG exports is still strong. According to the company, global gas price swings are a result of tight supply, shipping disruptions, and geopolitical tensions across the Middle East. These factors have widened the difference between U.S. gas prices and?global gasoline prices. Cheniere warned global LNG prices will remain volatile if?disruptions? continue. This could impact future?earnings? and cash flow? In the third quarter, the company generated $5.72 billion of LNG revenue, up from $5.31 billion one year ago. Regasification revenues were flat. The Houston-based company reported a $3.5 billion 'net loss' for the?quarter ended March 31 compared to a $353 million profit last year. (Reporting from Pooja Menon, Bengaluru. Editing by Leroy Leo.)
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Scoot, the budget airline of Singapore Airlines, has ordered 11 Airbus A320neo jets
Scoot is the low-cost division of Singapore Airlines. It has ordered five Airbus A320neo aircraft and exercised options on six more. The carrier wants to increase capacity and open new routes. Scoot announced that the new narrowbody aircraft will be powered by Pratt & Whitney geared 'engines. Scoot stated that the expansion will'support new services in a 5- to 6-hour flying radius. This will strengthen Singapore's air links with Southeast Asia and North Asia and other key??markets. It also improves connections to the SIA Group?s wider network. Scoot CEO Leslie Thng stated that they expect the travel demand to grow in the next few years, especially in the Asia-Pacific area. Since the 2022/23 fiscal year, the airline added 25 new destinations. These include non-metropolitan cities such as Chiang Rai, Thailand, and Phu Quoc, Vietnam, along with long-haul routes like Vienna. Scoot will now have a total of 20 A320neo aircraft in its order book. According to the airline, the aircraft will have a'single-class configuration,' with 186 seats on the A320neo model and 236 on the A321neo. (Reporting and editing by Mrigank dhaniwala, Vijay Kishore and Rajasik Mukherjee)
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EMP, a Polish company, teams up with Foxconn in order to create an EV manufacturing hub
ElectroMobility Poland, which is backed by the state, announced Thursday that it would partner with Taiwan's Foxconn in order to establish an electric vehicle research and production hub in southern Poland. This will help to advance plans to create a?EV champion domestically as Europe's demand?picks up. According to the industry association ACEA the sales of battery EVs in the European Union increased by about a quarter in the first three months, boosted in part by the higher fuel prices associated with the Iran War. EMP announced that it was negotiating with Foxconn about the scope of its cooperation, which could include a possible joint venture. It aimed to reach binding agreements by 'the second half 2026. The company said that the partners hope to finalise an agreement package in the second half of this year. This will move the project forward into the next phase. Cyprian Gronkiewicz, EMP's CEO, said: "We have designed this project from the start around the need to find a partner who combines industrial -scale with technological depth." The commitments made by the Taiwanese company to transfer technology, build in-house design capabilities for vehicles in Poland and use local suppliers were decisive in his choice. The joint venture plan would create a local brand, roll out three vehicles in Europe and build production and technology capacities in Poland. The plans include the construction of a factory with body shops and paint shops as well as assembling batteries and electric drives, and finally assembling vehicles in Jaworzno, a city located on the southern coast. The Jaworzno Hub is expected to also include a new Research and Development Centre focused on Software, Data Analytics and Digital Mobility Solutions. EMP stated that the project will be?complemented by investments designed to support the broader electric mobility ecosystem, including the batteries sector. The funding will come from both the National Recovery Plan (NRP) and the Reprivatisation Fund which recapitalised EMP in December 2025. EMP said that the partner would contribute both capital and technology. EMP, a joint venture between Poland's four utilities and the government to promote the nation's EV ambitions was established in 2016. However, the project has been plagued by delays and strategic reversals. Reporting by Barbara Erling Editing Bernadette Baum
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France prepares aid for airlines affected by the price increase of jet fuel
Transport Minister Philippe Tabarot announced late Wednesday that the French 'government' is prepared to offer a monetary aid for airlines affected by the?increase in jet fuel prices. Tabarot stated in a blog post on X that the government and airlines 'had made progress on a meeting held on Wednesday regarding aid, including deferrals on social?security contributions and extended deadlines for tax payments and flexibility with?fuel loadings. "Airlines are experiencing a major shock." He said that the government was fully committed to helping airlines get through these difficult times. European authorities are scrambling to find solutions in order to avoid widespread aviation disruptions during the summer after European airlines warned of a 'jet fuel shortage within weeks due to?the Iran war. The Middle East is the largest source of jet fuel in Europe, accounting for 75%. (Reporting and editing by Makini brice; Inti landauro)
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Bloomberg News reports that AirAsia founder Fernandes is planning to launch a new airline.
Bloomberg reported that Tony Fernandes, AirAsia's co-founder, is planning to launch a new airline based on the high volatility of oil prices. Reports indicate that the new airline could be announced in the next few months. The carrier group has also moved some planes to the venture. AirAsia?did not immediately respond to comments. Fernandes didn't respond to a LinkedIn message. AirAsia, the Malaysian budget carrier, is planning to sell up to $600 million of bonds and is in discussions with Malaysian banks for a refinancing loan that will lower interest rates. Fernandes said in a Bloomberg video interview late on Wednesday from Montreal. The Malaysian airline announced on Wednesday that it had placed a firm order for 150 Airbus A220 aircraft manufactured in Canada. There are also 150 options available to purchase a larger version if Airbus manufactures one. AirAsia has recently reduced the number of flights because the fuel prices have risen since the U.S. and Israel war on Iran disrupted the global oil market. Fernandes, however, said that demand for flights was 'high' last month and he is optimistic about the airline returning stronger once the crisis has ended.
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Emirates Airlines posts record net profits despite the war impact
Emirates Airlines posted a record-breaking 'full year net profit on Thursday despite the impact from the 'Iran war. The carrier cited strong travel demand for most of the time period. Emirates said that its profit, after taxes, rose from $5.2 billion to $5.4 billion over the past 12 months, a slight increase in passengers offset by a small decline in passengers. Airspace in the Middle East was temporarily closed and jet fuel prices rose, causing the biggest crisis for the airline industry since the COVID-19 epidemic. Major Gulf carriers, including 'Emirates, have gradually restored capacity but still operate below pre-war standards. Meanwhile, renewed attacks on the United Arab Emirates in this week cast uncertainty over a fragile ceasefire which entered into effect last months. Emirates Group, a Dubai-based airline, announced a record revenue of $41 Billion in the past year. This is a 3% increase from the previous year. The 'group will pay a total of $1 billion in dividends to its owner, the sovereign wealth fund ICD.
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Maersk's first-quarter profits beat forecasts and outlook remains unchanged
Maersk, the shipping company, posted slightly higher operating profits in its first quarter than analysts had predicted on Thursday. It also kept its earnings guidance for the full year unchanged. The company's poll of 10 analysts revealed that the median estimate for EBITDA (earnings before interest, tax, depreciation and amortization) was $1.66 billion. Maersk is often viewed as an indicator of global trade and still projects a global container volume increase between 2% to 4% in this year. In a press release, Chief Executive Vincent Clerc stated that "we've seen strong demand in most regions in this quarter. This has supported robust volume growth across our three business segments." The Middle East conflict's impact on global supply chain is not captured in the first quarter, as the conflict began on February 28, when Israel and the United States launched coordinated attacks on Iran. After Iran closed down the Strait of Hormuz for commercial traffic, the war has disrupted the shipping routes in the region and increased costs like fuel. The security situation remains fragile. On Wednesday, the French shipping group CMA CGM reported that one of their container ships was struck while transiting through the Strait of Hormuz. This caused injuries to crew members and damage to the vessel. The Middle -East security situation also impacts shipping in Red Sea. Maersk is forced to reroute ships around Africa and away from the Suez Canal, Bab el Mandeb Strait, etc. Maersk has abruptly halted its tentative attempts to return some services to the Suez Route, which was seen as a crucial step in resolving years of global trade disruptions caused by Yemeni Houthi rebel attacks on ships at the Red Sea. (Reporting and editing by Terje Solsvik, Stine Jacobsen & Jesus Calero)
What is at stake in the Trump-Xi Summit
Donald Trump, the U.S. president, will meet with Chinese President Xi Jinping next week during his trip to Beijing. Both countries are seeking to stabilize a strained relationship caused by tensions over Taiwan, trade and the Iran War. Analysts and company executives aren't expecting any major breakthroughs at the summit. However, there may be some minor ones such as an extension to a trade truce that was signed in October. Here are some of the major 'issues' that will be discussed during the visit by the U.S. leader on May 14 to 15:
BEANS, BEEF AND BOEING Trump is likely to be eager for trade concessions from Beijing in advance of the midterm elections scheduled for November. Both countries are working together on a Board of Trade to find products that can boost trade without jeopardizing each other's security or supply chains. These include Chinese potential purchases of U.S. beef, poultry and non-soybean crop and a promise to purchase 25 million metric tonnes of soybeans each year for the next three. The U.S. wants China to purchase Boeing aircraft, U.S. oil, coal and natural gas.
China and Boeing have been in long-term talks for a deal that could include 500 737 MAX planes plus dozens wide-body aircraft. Dennis Wilder said that the deal has been stalled indefinitely because Trump has threatened China with a ban on critical spare engine 'parts.
TECH VS. RARE EARTHS Beijing has expressed concern about a bill that would keep China from importing critical chip-making equipment. It wants the U.S. government to relax restrictions on exports of advanced semiconductors. Beijing, on the other hand, is requesting that U.S. firms be allowed to import rare earths and minerals. China's restrictions on rare earths imports have caused widespread disruptions in U.S. aerospace and automotive manufacturing. Both countries are preparing economic pressure tools to be used during talks. Washington began investigating alleged overcapacity in China's industrial sector and the use of forced labor in March. In April, U.S Treasury Department sanctioned a Chinese refinery for purchasing Iranian oil. They also threatened secondary sanctions against Chinese banks that facilitated such purchases. Beijing has responded with legal countermeasures. Premier Li Qiang issued two new regulations in April that give authorities broad powers to investigate foreign companies, governments, and individuals who seek to divert their supply chains from China. The new regulations can also be used as a retaliation against Western sanctions against Chinese businesses abroad.
IRAN WAR U.S. Treasury Sec. Scott Bessent said the two presidents would discuss the Iran War, and encouraged China to "join in this international operation" to open up the Strait of Hormuz for international shipping.
China's relationship with Gulf nations could be strained by the war that Beijing believes Washington is responsible for ending. It has also threatened China's supply of energy. Analysts said that Beijing did not want to appear to be doing Trump's bidding when it worked behind the scenes to convince Iran to have peace talks with U.S. officials in Pakistan last month. Abbas Araqchi, the Iranian Foreign Minister was in Beijing last week to brief his Chinese counterpart Wang Yi about?the U.S. talks.
TAIWAN
Wang, on the other hand, said that the Taiwan issue was of great importance to China in a phone call with U.S. secretary of state Marco Rubio. He described the democratically-governed island as the "biggest risk" for the relationship. Wang stated that the U.S. must "keep its promise?and make right choices to open new spaces for China-U.S. Cooperation."
China claims Taiwan is its territory and has never renounced using force to control the island. Taiwan rejects China's claim, saying only the people of Taiwan can decide on their future.
Beijing is privately urging the Trump administration to change its language regarding Taiwan's independence.
They refused to reveal details but said that it was similar to a request?Xi had made to former U.S. president Joe Biden during their 2024 Summit.
Xi then asked Biden to change the U.S. statement to "we oppose Taiwan Independence". U.S. policy currently states that the country "doesn't support" Taiwan independence.
Beijing could be influenced by any change in U.S. language, no matter how subtle. This would raise new questions about Washington's commitment to security in Asia. (Reporting and editing by Antony Slodkowski, Kate Mayberry, and Mei Mei Chu)
(source: Reuters)