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TPG invests $100 million in Student Mobility Company Zum
Zum reported on Thursday that a private equity firm, TPG, had invested $100 million in 'Zum. Zum reported that the valuation is higher than Zum's previous 2024 Series E round of funding, where it was valued at $1,3 billion. This is because the company has reached breakeven adjusted earnings prior to interest, taxes depreciation and amortization (EBITDA). TPG's Rise Fund is making the?investment, which targets both financial returns and measurable outcomes in social and environmental areas. Zum's capital has now reached $430 million. In 2016, Ritu Narayan founded Zum, a company that provides software and services to modernize the fragmented U.S. student transportation system. Zum offers electric buses, route optimization, and tracking tools. The company said that it served?more then 4,500 schools in 17 states. Narayan told. She said, "School districts are seeing reduced absences and better learning outcomes...We would consider that student transportation is about more than just transportation. It's about accessing education." She said that TPG's investment would help the company to expand into additional states and develop its technology platform. It may also pursue acquisitions and consider an IPO in the future. But organic growth is their top priority. Steve Ellis, managing partner at TPG's Rise Funds, said: "This business... operates in a large, highly fragmented, $50 billion market." "None [of the] existing legacy operators has built a fully integrated, modern technology stack...It gives us a real right of victory." The company announced that Ellis would join the board of directors as part the investment. Abigail Summerville reported from New York and edited by Echo Wang, Lincoln Feast.
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Insurers claiming to be avoiding payment claim that Nord Stream explosions are due to war
Insurers told a London 'court' on Thursday that the Nord Stream pipelines in Ukraine were targeted by Russia as a 'direct result' of its invasion. They are trying to avoid paying nearly 580 millions euros ($684million) for blasts which hit the pipelines. Nord Stream has filed a lawsuit against Lloyd's and Arch Insurance for explosions that occurred in September 2022, which ruptured the pipelines transporting Russian gas from under the Baltic Sea into Germany. The explosions, for which no one has claimed responsibility, have largely cut off Russian gas supplies in Europe. This marks a significant escalation of the conflict. On the request of German prosecutors, two Ukrainians were arrested in Italy and Poland on the basis of traces of explosives found on a boat connected to the explosions. Russia accuses Ukraine of being the perpetrator, but Kyiv has repeatedly denied any involvement. The Swiss-based Nord Stream is suing over damage to its Nord Stream '1 pipelines, claiming it has a right to compensation of 580 million Euros. INSURERS FIGHT A LAWSUIT REGARDING EXPLOSIONS IN 2022 Lloyd's Arch and their lawyers claim that Nord Stream's policy does not cover damage caused by war, or on the orders of any government. Simon Salzedo the lawyer for the insurers, stated in court documents that experts said the explosions could have only been carried out by state actors from Ukraine or Russia, or sub-state actors with help from the state. Insurers will try to prove that the explosions of 2022 were caused by the Ukraine War or ordered by a state at the London High Court. Years have passed as investigators in Germany, Sweden and other countries try to determine responsibility. Italy extradited an Ukrainian national to Germany in the past year. However, a Polish court refused extradition of a second suspect. Salzedo stated that the insurers did not have to prove the identity of the attacker or the reason for the attack, only that the explosions were more likely than not influenced by the Ukraine war. Nord Stream lawyers stated that no expert was able to identify which government or governments were responsible. They also said that the "only established fact" is that Ukraine has denied involvement repeatedly.
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Andy Home: The crisis of aluminum in the ROI: War, tariffs, and a market that is running out of products.
The Iran War is triggering a global crisis on the?aluminium markets, with potentially devastating effects in sectors such as construction, packaging and transport. Even if war ended tomorrow, it would take Emirates Global Aluminium up to one year to recover from damage caused by a missile attack?on the Al Taweelah Smelter last month. Aluminium Bahrain, which is the largest single-site production facility outside of China, was also hit. However, the extent of the damage is not known at this time. Alba and Qatar Aluminium had both reduced production prior to the attack due to power shortages. The Strait of Hormuz is severely restricted, and the production loss could increase as smelters exhaust their raw material stocks. According to Wood Mackenzie, the global market could face a deficit of up 4 million metric tonnes this year. Western buyers will be the ones to bear the brunt of this massive supply cut and policymakers may have to make some tough choices in the coming weeks if they wish cushion the impact. THINK INVENTORY COVER In the past, markets could have turned to "the London Metal Exchange" (LME) if they needed extra metal. In the early part of last decade, the registered inventory was over 5 million tons. LME stock has since decreased to less than 400,000 tons, with another 100,000 tonnes sitting in the "off-warrant" category. CME warehouses were also raided. The total deliverable stock has fallen by 70% since January and now only amounts to 1,864 tonnes. These figures are misleading. Russian metal, that many Western users cannot use because of sanctions imposed following the invasion of Ukraine is accounted for by 270,000 tons in the LME's registered inventory at the end March. The non-Russian component has been the subject of a dispute between traders. In the first week in March, someone cancelled 98,000 tonnes of Indian aluminium registered on the LME. However, last week time spreads were so high that they had to re-warrant a large portion of it. The benchmark spread between three-month cash and the benchmark cash The market tightened to $95.50 per tonne, the highest since 2007. Power Constraints The idle smelter capacities, especially in the U.S., and Europe, could theoretically be reactivated to help relieve the pressure on metal supplies. During previous energy crises, however, the majority of this capacity has been taken offline. Electrolysis is used to produce metal in smelters. A typical smelter can consume as much energy as a city of the size Boston. It seems unlikely that much of the capacity mothballed will be restored, given the impact the Iran War has had on energy prices. Even before hostilities began in the Gulf, a global shortage of affordable energy was forcing many more closures. In March, the Mozal Aluminium Smelter, which is owned and operated in majority by South32 Australia, was put on care and Maintenance after it failed to secure a commercially viable power supply contract. Wood Mackenzie says that even if you allow for increased recycled production, and the softer demand caused by the energy impact on manufacturing activities, there is still a significant deficit in the global aluminum market over the next year. UNPALATABLE CHOICES The West will be most affected by this deficit, forcing governments to make unpalatable decisions. Two countries can help reduce the shortfall. China is the largest producer of aluminium in the world. China is a major producer of semi-manufactured metals such as wire, rod and?plate. The rest of world has spent the past decade building trade barriers to stop the Chinese exports, accusing Beijing that it is undermining its competitors. Western aluminum users do not need more Chinese products at low prices. They require primary metals and alloys. The only remaining country is Russia, which is the producer of both primary metals and the variety of alloys with added value produced in the Gulf. After the 2022 invasion, Japanese manufacturers have already started to show signs of returning to Russian supplies. U.S. buyers and European buyers will need to follow suit. President Donald Trump has increased import tariffs on aluminium to 50%, which is a further aggravating factor in the United States. The cost of imported ingot has risen to more than $2,500 per tonne above the LME price. This is a four-year high of $3,580 a tonne. This is a cost-price equation for the time being. The longer the Gulf disruption continues, the quicker stocks will deplete. It may eventually stop being a matter of price and become more of a concern of having enough metal for manufacturing orders. Andy Home is a columnist at. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
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Lufthansa reduces capacity due to fuel price increases and labour disputes
Lufthansa, a German airline, announced on Thursday that 27 aircraft from its subsidiary CityLine would be permanently withdrawn from service in the coming week due to rising jet fuel costs and industrial action-related costs. In a statement, the company explained that this move was part of a larger?package? of measures to deal with 'rising costs. Four 'older Airbus A340 600 long-haul aircraft are to be withdrawn at the end of summer from the core brand fleet. According to the group, the short- and medium-haul fleets will be reduced by 5 aircraft during the winter schedule of 2026/2027. Discover, its'more cost-efficient subsidiary', will expand faster with new 'Airbus A350 jets. Lufthansa and the pilots' union Vereinigung Cockpit are currently engaged in a bitter dispute over the company?pension plan. On?Thursday, pilots began their fourth round of strikes. A two-day strike will continue until?Friday. (Reporting from Ilona?Wissenbach, Frankfurt; Friederike Heine, Berlin; editing by Miranda Murray and Thomas Seythal.)
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Maguire: ROI-Pain in the pump will give US EV Sales a new boost this summer
Despite President Donald Trump's decision to scrap federal subsidies for clean cars, the highest average gasoline prices?since 2022 are likely to reignite the demand for electric cars in the U.S. According to LSEG data, U.S. gas prices will average $2.96 per gallon between May and 'August of this year. This is due to the onset of the U.S.-Israeli war against Iran which has'slashed a?oil shipments out of the Middle East. This price is nearly 40% higher than the same months last year. The average American driver will pay more than 80 cents (21 cents) per gallon during peak driving season in the U.S. Fuel costs are a daily reminder for many Americans. Used EV sales have seen a strong increase in 2026, and new EVs sales reached multi-month records in March. The continued sticker shock at the gas pumps in the summer, when Americans are on vacation and driving long distances for fun, will likely increase the appeal of electric vehicles (EVs), which can be recharged at home or at the increasingly dense network of charging stations. FULLY EXPOSED Fuel prices in the United States have risen this year, despite the fact that the country is the world's biggest crude oil producer. This has added to the frustration of?U.S. consumers. The Energy Institute reports that U.S. crude and condensate oil production has increased by 140% in the last five years, thanks to advances made in oil production using shale deposits. Over the last decade, the revolutionary changes in oil extraction techniques have helped the United States go from being a "net importer" to an "exporter" of oil. This has sparked a boom among U.S. energy companies. The U.S. Energy Information Administration shows that the average retail gasoline price is currently about 50% higher than it was in 2010. ANECDOTAL APPEAL U.S. drivers are increasingly turning to electric vehicles to reduce fuel costs. The desire to reduce pollution has also sparked demand for EVs. Sales of EVs have increased by roughly 13 times over the last decade, and they will account for 10% of all new car sales between 2024 and 2025. Since late 2025, the U.S. EV market has been slowing down. New EV sales have dropped sharply in the first quarter of 2026 compared to the previous year. The recent surge in gas prices since the bombings of Iran led to a drop in fuel and oil shipments out of the Middle East, has reignited interest in EVs. The number of searches on the internet for EVs or hybrid cars, and their sales, is a crude way to measure this interest. Google, the most popular search engine for the U.S., reports that the search trends for "EV Sales", "EV Deals", "Hybrid Sales" and "Hybrid Deals" all reached record highs during the past few weeks as the Iran conflict drove gasoline prices up. Search results do not always reflect actual sales, and it is only a matter of time before we know how many searches lead to actual purchases. Combined with increased dealer incentives, and more aggressive'marketing of EVs from manufacturers' it is clear that the consumer awareness about EVs in 2026 has recovered strongly. Fuel costs are also steadily rising. The allure of EVs and Hybrids that are cheap to operate could rise even higher in the months ahead. Forward markets suggest that fuel costs will remain high during what is usually the busiest driving season in the U.S. These are the opinions of the columnist, an author for. You like this column? Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
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Nigeria flags flood risks in 33 States and warns of widespread flooding in 2026
The hydrological agency warned on Thursday that Nigeria faces a "high risk" of widespread flooding in 2026. More than 14,000 communities are at risk across 33 of the 36 states of the country, as well as Abuja's Federal Capital Territory. The Nigeria Hydrological Services Agency, in its annual flood outlook released on Monday, said that the worst flooding would occur between July and September, at the height of the rainy season. This will threaten cities, farms and critical infrastructure. NiHSA reported that 14,118 communities are?classified high risk', while another 15,597 are?at moderate risk. The figures are in line with recent years. The major cities of Abuja, Lagos, Port Harcourt and Delta could be affected by severe urban flooding. Coastal states like Bayelsa and Delta are also vulnerable to river floods and tidal flooding. Nigeria is prone to flooding, especially during the rainy seasons that begin in April and end in October. In 2022, the worst floods in more than a decade killed over 600 people and displaced 1.4 millions. Farmland was destroyed on 440,000 hectares (1.09 million acres). Last year, over 200 people were killed in a single flooding incident. (Reporting and writing by Camillus Eboh, Elisha Gbogbo editing by Gareth Jones).
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Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The U.S. and Israeli war against Iran, which has pushed up jet fuel prices, has shook the aviation industry around the world. Airlines have been forced to increase fares and re-evaluate their financial forecasts. In recent weeks, jet fuel prices have increased from $85-$90 per barrel up to $150-$200 per barrel. This is a major financial blow to an industry that relies on fuel for as much as a quarter of its operating costs. Here is an alphabetical list of the ways airlines are responding to this issue: AEGEAN AIRLINES The Greek airline anticipates that the suspension of Middle East flights, as well as a spike in fuel costs, will have "notable impacts" on its results for the first quarter. AIRASIA Malaysian Airlines executives announced that the company has cut 10% of its flights in the group and imposed a fuel surcharge of around 20%. AIR FRANCE-KLM Cabin fares will increase by 58 euros (50 euros) for round-trip flights. AIR INDIA The Indian carrier announced that it will change its fuel surcharges from a flat rate domestic to a grid based on distance. The carrier said that surcharges for international routes do not compensate the steep rise in fuel costs. AIR?NEW ZEALAND On April 7, the airline announced that it would cut flights in May and June, and raise fares. It was one of the first airlines to announce a large increase in ticket prices after the conflict began. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets. AKASA AIR Akasa Airlines, based in India, announced that it would be introducing fuel surcharges ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights. ALASKA AIR The U.S. carrier said that it would raise fees by $5 for the first bag and $10 for the second for flights in North America, including Hawaiian Airlines. The third checked bag was raised from $50 to 200 dollars. AMERICAN AIRLINES The U.S. carrier announced that it would increase the fees for checked bags on domestic flights and short-haul flights by $50 for the third bag and $10 for each of the first two. The airline also reduced certain benefits for passengers in economy class. The company had previously said that it anticipated a $400-million increase in expenses for the first quarter due to rising fuel prices. CATHAY PACIFIC Hong Kong Airlines announced that it would cancel about 2% scheduled passenger flights from mid-May to the end of June. Meanwhile, HK Express, its budget airline, was cutting around 6% of flights. The carrier had previously stated that it would increase its fuel surcharge across all routes by 34% from April 1, and will review the charges every two weeks. CEBU AIR The Philippines-based carrier said that the sharp increase in fuel prices is a major concern. It will continue to review pricing and network strategies and try to minimize the impact. CHINA EASTERN EXPRESS AIRLINES Air China said that it would increase fuel surcharges on domestic flights starting April?5. Flights of less than 800km will be charged a surcharge of 60 yuan, and flights above 800km will be charged a surcharge 120 yuan. DELTA AIR LINES Delta announced that it would reduce capacity by about 3.5 percentage points compared to its original plan, and increase fees for checked baggage in order to offset the rising costs of jet fuel. The increase will be $10 on the first and second bags and $50 on third bags. The U.S. carrier pulled all planned capacity increases for the current quarter, and forecast profits below Wall Street expectations. Delta CEO stated that it would not update the full-year forecast due to uncertainty about how long fuel prices would rise. EASYJET EasyJet has warned that it will suffer a larger half-year loss before tax of between 540 and 560 millions pounds ($731 and $758) in March, including an extra 25 million pounds of fuel costs. Kenton Jarvis, CEO of British Airways, said that European consumers can expect to pay higher prices for tickets towards the end summer when fuel hedges end. FRONTIER AÉRIENS Fuel prices have risen significantly since the airline's forecast, and it is now reviewing its full-year outlook. GREATER BAY Airlines The Hong Kong-based firm said that it will increase fuel surcharges for most routes starting April 1, but keep them the same on routes to mainland China and Japan. The carrier has announced that the surcharge on flights between Hong Kong,?the Philippines and other destinations will double. HONG KONG Airlines The airline announced that it would increase fuel?surcharges up to 35% starting March 12. The biggest increases would be on flights between Hong Kong, Bangladesh, and Nepal where the charges would go from HK$284 to HK$384 (US$49). British Airways' owner IAG stated in March that it does not intend to increase ticket price immediately as it has hedged a large amount of fuel for the short to medium term. INDIGO India's largest airline announced that it will begin charging fuel fees on both domestic and international flights as of March 14. The charges include 900 rupees per flight to the Middle East, and 2,300 rupees per flight to Europe. Sources say that the company is lobbying for the Indian government's reduction of fuel taxes. JETBLUE AERWAYS Low-cost airline based in the United States has announced that it will increase fees for optional services, such as checked luggage, due to "increasing operating costs". The airline said that baggage prices would rise either by $4 or $9. Sources with knowledge on the subject have confirmed that KOREAN will be in emergency mode as of April due to rising oil costs. The airline will implement phased responses based on the oil price levels and increase company-wide efficiency to offset rising fuel costs. AIRLINE OPERATORS IN NIGERIA A letter from the Nigerian industry group, which accuses the country's fuel association of artificially increasing prices, warns that Nigerian airlines will suspend flight operations on April 20 if fuel prices do not drop. PAKISTAN INTERNATIONAL FLIGHTS Fuel surcharges are cited as the reason for raising domestic flight prices by $20, and international flights by up to $100. QANTAS AIRWAYS Qantas, an Australian airline, said that it has delayed a planned A$150-million ($106-million) buyback. It also increased its fuel estimate for the second half 2026 from A$2.5-billion to A$3.1-3.33 billion. Scandinavian Airlines announced that it would cancel 1,00 flights in April due to high jet fuel and oil prices. In March, the airline had cancelled "couples of hundred" flights. SAS, which has already raised flight prices, stated that the surge in fuel costs would be a major blow to the aviation sector, even if they tried to absorb it. SPRING AIRLINES Budget Chinese airline announced that it will increase fuel surcharges for domestic flights starting April 5. Details to be announced in due course. SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES The American carrier announced that it would increase the checked baggage fee by $10 per bag for the first and second bags. This will bring the cost to $45 for first bag, and $55 for a second. The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues. THAI AIRWAYS The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices. TURKISH AIRLINES LUFTHANSA SunExpress, the joint venture between Turkish Airlines, Lufthansa and Lufthansa announced that it would be imposing a temporary fuel charge of 10 euros per person on routes between Turkey, Europe and North America from May 1. The fuel surcharge will be applied to all bookings made after April 1, for departures on or after May 1, Turkish Airlines announced on April 10, that it would not be distributing any dividends from its net profit for 2025, instead choosing to keep the earnings and preserve cash. T'WAY AIR As part of the measures taken to combat the effects of war, the South Korean low cost carrier announced that it would furlough cabin crew in May and June without pay. UNITED AIRLINES Scott Kirby, CEO of the U.S. carrier, said that the airline will cut unprofitable flights in the next two quarters to prepare for the oil price remaining above $100 by the end 2027. Andrew Nocella, United's Chief Commercial Officer, said that the company was able to increase fares in response to a rapid rise in jet fuel and oil prices. In an emailed statement, the airline said that it would also be increasing the first and second checked bag fees by $10 to customers traveling in North America, Mexico, Canada, and Latin America. VIETJET A potential fuel shortage has led to the Vietnamese budget airline reducing flight frequencies on certain routes. VIETNAM Airlines Vietnam's Aviation Authority said that the carrier intends to cancel 23 flights per day on domestic routes starting in April after it requested assistance from the government for the removal of an environmental tax. VIRGIN ATLANTIC Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will struggle to achieve profitability. VIRGIN AUSTRALIA Virgin Australia has said that it expects an increase of jet fuel costs of between A$30 and A$40 million in the second half of the fiscal year. It also anticipates a 1% decrease in capacity for the fourth quarter. The airline had previously stated that it would adjust fares in order to reflect the rising costs. WESTJET Canadian Press reported that the airline would add a fuel surcharge of C$60 ($43), and will combine some flights to reduce costs.
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Boeing hires more than 100 workers per week in its factories to replace retirees and increase production
A union leader revealed that Boeing was hiring between 100 and 140 factory workers per week, which is the fastest pace since 2024. This is to replace retirees, and to increase staffing in order to support?higher production levels and new models. Jon Holden, a Vice President specializing on training and apprenticeships for the International Association of Machinists and Aerospace Workers' (IAM), said in his first interview that Boeing's Pacific Northwest unionized factory workers now number over 34,000 and "are heading higher". Boeing's spokesperson stated in an email that they are seeing a lot of interest in hiring in Puget Sound as well as across the company to support their production rate increases. In 2024, the IAM represented 33,000 Boeing employees in the area when Holden led that local union in a seven week strike over a contract. Boeing must staff a fourth production line in the Seattle area, called the North Line. This is for the planemaker's 737 MAX narrowbody aircraft, which has been a big seller. The company also needs to replace retiring employees and support the production of the 777X, which is still waiting for certification. Holden, the union's new vice president for training and apprenticeships, said: "So it isn't just those working on the North Line." It will be those who have to provide parts, logistics, and storage. It will be transportation, tooling and logistics. According to Washington State's Employment Security Department, aerospace manufacturing jobs in the state dropped to 79,000 in August last year, but steadily increased to 81.800 by February. Aerospace firms are expanding to meet the demand for fuel-efficient aircraft, the space boom, and the rising defense budgets due to the geopolitical tensions and wars in the Middle East and Ukraine. Karen Arlak is the chief human resources officer of Honeywell Aerospace. She said that the U.S. provider expects to hire more than 1,200 people this year, in areas like engineering and manufacturing, due to the growth in the commercial aftermarket and defense sectors. Since the COVID-19 pandemic was over, and operations accelerated again, the aerospace industry has struggled to find skilled workers. Aviation Technician Education Council Executive Director Crystal Maguire said only about 75% of Federal Aviation Administration-licensed mechanics come out of specialized schools, driving demand for apprenticeship ?programs and workers shifting from other sectors. Holden stated that a Boeing apprenticeship program, which trains for specialized skills such as composite?repairs, is expanding beyond the 125 apprentices who were agreed upon in the 2024 contract with the company. Boeing's current need for factory workers is still behind the aggressive?hiring that took place in 2023-2024 when the company?needed to hire workers after the pandemic, and the 737 MAX was grounded following two fatal crashes. Holden stated, "This is a more sustained ramp, which I am happy about as long the economy continues to grow, and as long airlines continue to place their orders." (Reporting from Allison Lampert and Dan Catchpole, both in Montreal; editing by Jamie Freed).
Russian Urals oil prices top Brent for the first time on Indian market, traders claim
The price of Russian Urals oil in Indian ports is higher than the Brent benchmark for the first ever time, fueled by the increased demand due to the Iran War, traders reported on Friday.
The U.S. and Israeli war against Iran?which started a week back has?choked Strait of Hormuz - the'main route for oil in the world.
Since the beginning of the conflict in Ukraine, in 2022, Russian oil has traded in Indian ports at a discount by several U.S. Dollars per barrel compared to Brent. This is because Russia diverted its oil sales to Asia following the EU's embargo against Russian sales. In recent years, Indian refiners used Russian oil to make their feedstock.
The Kremlin announced on Friday that the war in Iran had fueled a significant increase in demand for Russian gas and oil.
Reports on Thursday said that traders are selling Russian Urals at a premium to Brent of $4 to $5 per barrel upon delivery at Indian ports between March and April. This is after the United States granted Indian refiners waivers to resume buying Russian oil.
Calculations showed that the grade's discount on Brent at the Russian Baltic Sea Port of Primorsk has narrowed by?about $5 per barrel, to?around $ 20 per barrel on a FOB basis (free on board), on Friday.
The price of Russian Urals oil has risen by 50% in the last week, from $45.7 to $68.6 per barrel FOB Primorsk.
According to LSEG, Urals oil has now surpassed the G7 price limit of $60 per barrel in the port of loading. It is also above the new EU price cap at $44.10 per barrel. The G7 and EU price cap were both imposed after Russia's invasion in Ukraine. This means that sellers of Russian oil who are above these caps cannot use Western shipping services and insurance.
INCREASING COSTS CAN IMPACT PROFIT
Two traders say that the rising costs of freight will reduce profits for Russian oil sellers. It costs $15 million to charter an Aframax vessel with a deadweight around 100,000 metric tonnage to transport oil from Russian Baltic ports to India.
This is an increase of around $10-$12 millions in February.
The cost of cargoes loaded from the Russian Black Sea port Novorossiysk - which resumed loadings on Friday following recent drone damage - is lower than at Baltic ports, at $13million, traders reported.
Calculations show that the discount for Russian Urals loaded from Novorossiysk FOB for India has risen to $14 per barrel against dated Brent. This is up $10 per barrel from previous estimates. Reporting by Elaine Hardcastle; Editing by Susan Fenton and Elaine Hardcastle
(source: Reuters)