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Italy is expected to complete the Sicily Bridge project by next week
Sources said that the Italian government will likely give its approval for the construction of a multi-billion euro bridge connecting Sicily to the mainland in the next week. This will allow the project to begin, which has been long delayed. Source who requested anonymity said that the CIPESS Economic Planning Committee meeting to approve the bridge was yet to be scheduled, but it is expected to happen by August 7. Since Roman times there has been talk of a stable connection across Strait of Messina. But the project seemed to be dead for good when, in 2013, the company set up to supervise its construction was shut down as part of a government-led austerity campaign. The project was revived by Prime Minister Giorgia Mello, who allocated 13.5 billion euro ($15.7 billion), to build a suspension span 3.6 kilometers (2.2 miles) between Messina in Sicily and the Calabria Region. The Messina Strait Company, which supervises the project says that approval from CIPESS would pave the path for preliminary work such as land expropriation, archaeological and geological studies, and other preparatory works. The construction of the bridge, due to be completed in 2032, is being carried out by a consortium led Italy's Webuild, 60 years after the country held an international competition for proposals. WeBuild CEO Pietro Salini stated last week that the Messina Bridge is receiving a lot attention from around the globe. People are asking about the bridge and the financial results of the group for the first six months of the year. Reporting by Angelo Amante; editing by Alvise Armellini and Giles Elgood
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Russian Urals prices hold firm in Indian ports against Brent benchmark
Three sources reported that the prices for Russia's flagship Urals oil, which is scheduled to be delivered to Indian ports by the end of August/early Septembre, have firmed up further. The discount to Brent has been the narrowest it has been since 2022, due to the strong demand for the grade in India and Turkey, and the low supply, according to the sources. The traders reported that spot discounts for Urals crude have narrowed from $1.70 to $2 per barrel on a dated Brent basis to an average of $1.50 to $1.60 on a delivery-ex-ship basis for cargoes arriving into India in late August/early September. This is down from $1.70 to $2 per barrel on a Brent basis a few months ago. This is the smallest discount on Urals oil cargoes compared to Brent dated in Indian ports, since the Ukraine War broke out in the year 2022. The daily Russian oil exports to the ports of Primorsk (Ust-Luga), Novorossiisk and Ust-Luga are expected to drop to 1.77 million barrels a day in August. This is down from the 1.93 million barrels a day in July's plans. Traders said that the Indian refineries may be forced to seek alternative oil supplies due to declining discounts, a lower supply of Russian spot barrels, and new Western sanctions. On July 18, the EU approved their 18th package against Russia. This includes sanctions against Moscow's energy industry and against Russia-backed Indian refiner Nayara Energy. Few days later, Britain imposed sanctions on Russia's "shadow fleet" that included 135 oil tanks and two Russian companies: shipping company Intershipping Services LLC as well as oil trader Litasco Middle East DMCC. India is the biggest buyer of Russian crude oil after Moscow diverted energy away from the European Union which imposed an import ban in late 2022. According to traders, large volumes of Russian Urals crude oil were shipped from Russia to India as part of a deal signed between India's biggest private refinery, Reliance Industries and Russian oil giant Rosneft, last year. This agreement limited the amount offered on the spot market. (Reporting from Nidhi in New Delhi, and reporters in Moscow. Editing by Sharon Singleton.)
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US LNG producers soar after EU agrees $750 billion energy purchase
Energy companies in the United States saw gains in premarket trading after European Union committed $750 billion in strategic purchases in a trade agreement. The framework deal that ended months of uncertainty on both sides of Atlantic calls for strategic oil, gas and nuclear fuel purchases during the term of U.S. president Donald Trump. NextDecade Venture Global and Cheniere Energy all saw their shares rise between 5%-7%. The deal is expected to boost the prospects of American LNG exporters, as they expand in order to meet the growing demand for cleaner burning fuels. Energy Fuels, a miner of uranium, rose 4% to $10.42. As global prices rose, the demand for LNG exports increased, partly due to disruptions in supply and sanctions related to Russia's invasion of Ukraine in 2022. The price of oil also increased by over 1.5%. The agreement imposes an import tariff of 15% on most EU products, which is a smaller blow than the markets expected. Ashley Kelty is an analyst with Panmure Liberum. She said, "Terms of EU-U.S. Trade Deal were in the forefront. The 15% tariff level was better than expected (30% had been mooted earlier)." This should reduce the drag on industrial activity in both countries. Kelty did note that the deal may have an impact on gas prices. Kelty, a Kelty Energy analyst, said that the EU's desire to purchase more U.S. gas will lead to more U.S. imports of LNG in the future. This could signal a glut. Before the bell, shares of U.S. producers of natural gas Expand Energy and EQT Corp rose by 1.6% and 2% respectively.
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The US will resume its grants to Nepal to fund two major infrastructure projects
Authorities announced on Monday that the United States has resumed funding two major infrastructure projects previously suspended after President Donald Trump suspended foreign development assistance. The U.S. Government Aid Agency, the Millennium Challenge Corporation, agreed to provide $500,000,000 in 2017 for a project to improve roads and build a transmission line in the Himalayan country. This is one of the poorest countries in the world. The projects were put on hold when Trump, on his return to the White House in January, ordered a 90 day pause in the foreign development assistance. This was pending an evaluation of the efficiency and consistency of the U.S. Foreign Policy. The U.S. Government has completed its review of assistance provided under the MCC Nepal Compact, according to a statement released by Nepal's Finance Ministry. The statement did not provide any details. "Information received has recommended the implementation of MCC Nepal Compact," it said. The transmission line was intended to promote the power trade between Nepalese and India's neighbour. The U.S. Embassy in Nepal confirmed this development in a tweet on its official X account, adding that "the project supports prosperity and regional security of energy by building transmission infrastructure for electricity and improving the road networks". Nepali authorities have announced that the projects will resume. The Finance Ministry did not mention seven other projects that were funded by USAID and stalled last February in the fields of education, health and agriculture. The Trump administration's funding cuts have led to the shutdown of USAID and the termination of thousands of its staff. Nepal's opposition parties said that the MCC grant would undermine sovereignty in 2022 as Kathmandu wouldn't have enough control over projects. The projects were approved by the Parliament in the same year, with a majority vote. (Reporting and editing by Jan Harvey; Gopal Sharma, reporting)
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Austrian OMV detects chloride contamination in Azeri oil
OMVs detect contamination before refinery arrival Eni, a company in Italy, also discovered contamination in its oil system Last week, news of contamination led to a four-year low in price differentials. By Robert Harvey LONDON, 28 July - Austrian oil group OMV found organic chloride in Azeri crudes that were scheduled to be delivered to its refineries. It said it prevented any disruption. Last week, organic chloride contamination was found in Azeri BTC cargoes. This caused price differentials to reach a 4-year low. It also delayed loadings at Turkey's BTC Ceyhan Terminal for several days. OMV stated in a statement released on Friday that the crude contaminated was discovered by its quality control procedures. The company said that the contaminated crude had not yet reached its refineries and that there had been no interruption in its refining or fuel supply to the market. OMV stated that it was working to secure other crudes from alternative sources in order to "ensure continuity of fuel supply" but did not specify what it intended to do with Azeri crude. The industry uses organic chlorides to increase oil extraction by cleaning oilwells and accelerating the flow of crude oil. However, the compounds need to be removed before the oil can enter pipelines. OMV stated that in large concentrations they can be hazardous to refinery equipment. Eni, the Italian oil company, said last week it detected organic chloride in oil in its system. (Reporting and editing by Robert Harvey, London)
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Budapest mayfly swarms are a result of the low Danube water levels
Due to a hot and unusually dry summer and low water levels, mayflies are more numerous and swarming along the Danube river banks in Budapest this year. They are attracted to the city lights and fill the air. Mayflies can be in the hundreds of thousands or even millions and they rush to reproduce as quickly as possible before they die. Mayflies only live for a few hours after hatching, and the abundance of these insects is directly related to the health the Danube. The swarming of Danube Mayflies is usually a phenomenon that occurs in August. This year, however, it started in mid-July and will last for several weeks. Their early appearance as huge swarms may be related to higher temperatures, say researchers. Gyorgy Kriska is an associate professor at Eotvos Lorand University, Budapest. "We've observed that mayfly swarms are more common in years with low water levels," he said. In early February, unusually low levels of water on the Danube, Europe’s second longest river, disrupted shipping. Kriska explained that low water levels encourage the growth of algae, which provides food for mayfly larvae. The river was so polluted that the mayflies didn't swarm in about 40 years. He said that they returned to the Danube in 2012, when it became cleaner thanks to wastewater treatment plants. Mayflies are a protected species. A single specimen is worth 10,000 forints (30 dollars). When mayflies are swarming upriver, they can get confused by the city lights and shadows from bridges. This causes them to lay their eggs on the riverbank rather than in the water. Hungarian researchers installed blue lights to help the pedestrians as much as they could. Kriska stated that "our lights keep them here... they continue flying in front of lamp... and crash to the water." This way, we will ensure that the next generation is not drowned and can survive. (Reporting and editing by Giles Elgood, Anita Komuves, Krisztina Feenyo)
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US LNG producers soar after EU agrees to annual purchases of $250 billion
The shares of U.S. developers of liquefied gas surged on Monday in premarket trading after the European Union committed to buy $750 billion of the super-cooled fuel within the next three year as part of an sweeping trade agreement. NextDecade Venture Global and Cheniere Energy all jumped between 7.8% and 8.8%. The deal is a boon for American LNG exporters who are expanding to meet the growing demand for cleaner burning fuels. As part of the framework agreement announced on Sunday, the EU committed to purchasing $250 billion in U.S. Liquefied Natural Gas annually as it seeks to reduce its dependency on Russian gas. As global prices rose, the demand for LNG exports increased, partly due to disruptions in supply and sanctions related to Russia's invasion of Ukraine in 2022. The agreement imposes an import tariff of 15% on most EU products, which is a smaller blow than the markets expected. Ashley Kelty is an analyst with Panmure Liberum. She said, "Terms of EU-U.S. Trade Deal were in the forefront. The 15% tariff level was better than expected (30% had been mooted earlier)." This should reduce the drag on industrial activity in both countries. Kelty did note that the deal may have an impact on gas prices. Kelty, a Kelty Energy analyst, said that the EU's desire to purchase more U.S. oil will lead to more U.S. imports of LNG in the future. This could signal a glut. Before the bell, shares of U.S. gas producers Expand Energy & EQT Corp rose 1.6% & 3% respectively. (Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)
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Singapore Airlines' first quarter profit drops as Air India losses weigh
Singapore Airlines reported a 58.8% drop in its first-quarter net profits on Monday. Losses in associated companies including Air India and lower cash reserves were the main reasons. Air India was the main reason for losses, as the city-state flag carrier posted a loss of S$122m from its associated companies. Air India began accounting for equity in December of last year, after Vistara was fully integrated into Air India. Air India's performance was not included in the comparison of prior years. Singapore Airlines reported a net profit of S$186 (144.89) million for the three months ended June 30. This compares to S$452 millions a year ago and Visible Alpha's consensus estimate of S$463.2million. The revenue for the third quarter increased 1.5%, to S$4.79billion. (1 Singapore dollar = 1.2837 Singapore Dollars) (Reporting and editing by Sherry Phillips and Shilpa Majumdar in Bengaluru)
Handelsblatt reports that DB Cargo may have to reduce its staff by half as part of a reduction in operations.
Handelsblatt, citing sources from the company and supervisory boards, reported that DB Cargo, a freight subsidiary of Deutsche Bahn, could reduce its workforce by 50% as part of a possible cost-saving measure.
The German Business Newspaper reported that consultants have suggested scenarios which would shrink the losses-making segment of Germany’s national railway company by 60% to 80%.
According to calculations made by consultants commissioned for Deutsche Bahn, a partial withdrawal from the freight division could lead to the loss of 4,000 jobs.
The report quoted sources who said that a decision will be taken by the end July.
DB Cargo didn't immediately respond to a comment request.
The company provides a service where it collects freight wagons from its customers directly and then assembles the trains to transport them. (Written by FriederikeHeine; edited by Joe Bavier.)
(source: Reuters)