Latest News
-
Transportation strike in Tunisia increases pressure on President
Transport services were halted in Tunisia Wednesday as workers demanded better working conditions, higher wages and urgent reforms. This added pressure to President Kais Said to address the deepening crisis. Tunisians have suffered from poor public services for many years, particularly in the sectors of health, education, transportation and investment due to a lack of funding and public investments, as well as frequent interruptions in water and electricity supply. Saied, a man who has been in power since 2021 and tightened it, accuses those he believes are conspirators, seeking to undermine the government and exacerbate social tensions. The three-day strike by the UGTT union disrupted everyday life in major cities as well as rural areas. The metro stations and buses in Tunis were deserted, forcing commuters into private cars, unlicensed motorcycle cabs, and taxis. "We suffer." "There is no transport, we have no jobs, and things are getting worse and more expensive," said Ayman Amiri in the capital as he stood at a bus stand. Transport unions, who claimed that the first day of the strike had been a 100% success, have said that the sector is collapsing. The Ministry of Transport stated that the union's demands for financial compensation were unjust and would not be met until revenues of the public transport companies increased. The ministry also stated that the recent purchase of hundreds buses from China, Europe and other countries would improve service. (Reporting and editing by Barbara Lewis; Tarek Amara)
-
EU wheat prices rise, supported by high Russian rates
The price of European wheat rose on Wednesday, after the session had seen a sharp fall. This was due to strong Russian prices as well as concerns over Germany's crop. At 1335 GMT, the benchmark September milling wheat price on Paris' Euronext rose 0.4% to 197.50 euro per metric tonne. A trader stated that "Euronext's not increasing because funds are selling", citing high Russian prices. Russian farmers have started to sell their new crop more after a slow start. However, they are still demanding high price as many ships are waiting in export ports to load supplies. In the next few days, a cargo of 63,000 tons wheat bound for Egypt is expected to arrive in French ports Rouen and La Pallice. Egypt's State Grain Buyer said in late June that it expects wheat shipments to come from France and other European nations as it continues its efforts to diversify the supply sources and bolster Egypt's strategic reserves. The traders were skeptical that large volumes of exports delayed had been shipped to other countries to supply. Traders said that the repeated rains in Germany and Poland during this week have caused quality damage at the last minute to some wheat ready for cutting and disrupted harvesting. One German trader stated that the quality of German wheat has suffered some damage. Rain almost every day is the worst thing you can imagine. There is still the chance of a good crop, if weather conditions change. After all, most German wheat is harvested in August. In Germany, rain will continue to fall into the first week of next year. Rain has also disrupted the harvest in Poland. One Polish trader stated that "heavy rains in Poland and only a few sunny days have caused harvesting to be disrupted, and there is much uncertainty about the quality of wheat among farmers." "I estimate that only 20% of Poland’s wheat has been harvested. The results vary greatly from region to region." Farmers talk about low quality criteria (low falling numbers) in wheat. This may mean that more than expected of Poland's wheat crop will only meet animal feed standards. Mark Potter edited the article.
-
BP continues to assess the quality of BTC oil as loading continues
BP, operator of the Baku, Tbilisi, Ceyhan (BTC), oil pipeline, announced on Wednesday that it would continue its extensive quality evaluation of Azeri BTC by taking samples at each loading terminal. Last week, organic chloride contamination was found in Azeri BTC cargoes. This caused a drop in price differentials of four years and caused several days delay in loadings at Turkey's BTC Ceyhan Terminal. Sources say that the extra testing has caused delays in part. A port agent said that after enough oil is poured into the BTC Ceyhan terminal to form a cargo, the test results are presented to charterers waiting to load in the port. Unknown is the total number of Azeri crude oil cargoes that have been contaminated by organic chloride. Austria's OMV, and Italy's Eni confirmed that the cargoes purchased by both companies were contaminated. BP said it worked closely with Azerbaijani Socar to manage off-spec crude stored at the terminal while export operations continue. Kpler, a firm that provides analytics services, reports that six Azeri crude cargoes have been loaded since the first report of organic chloride contamination on July 22. Reporting by Robert Harvey in London, Shadia Nasralla and Nailia bagirova from Baku. Lousie Heavens, Mark Potter and Lousie Heavens edited the report.
-
Snam confirms its 2025 guidance and reports a 5.3% increase in core profit for H1.
Snam, the Italian gas grid group, said that its core earnings adjusted for inflation rose by 5.3% during the first half of this year. This was due to growth in its business in gas infrastructure. The company also confirmed its full-year guidance. The adjusted earnings before interest taxes, depreciation, and amortization (EBITDA), came to 1,49 million euro ($1.71 billion) during the period. Adjusted net profit increased by 8.5% on an annual basis, reaching 750 million euro. Snam published its industrial plan 2025-2029 for 2025 in January. It targets 2025 adjusted EBITDA at 2.85 billion euro and adjusted net profit of 1.35 billion euro. In a press release, CEO Agostino Scornajenchi stated that "Gas continues to demonstrate its strategic role as an energy vector for sustainable integration of energy".
-
Old Dominion misses its second-quarter estimate amid freight recession
Old Dominion Freight Line, which operates in a long-term freight downturn, reported its second-quarter profit and revenue below Wall Street expectations on July 30. The U.S. trucking sector is struggling with low volumes, persistent overcapacity and low rates, as a result of the recessionary phase that began after the post-pandemic boom in 2022. Experts predict that the freight recession will continue through the second half. As the industry struggles to cope with the changing global macroeconomic climate, extra capacity is slowly leaving the market. Old Dominion says that the slow growth of domestic industrial production also has a negative impact on carrier results. Before the bell, shares of Thomasville's less-than truckload carrier (LTL), which serves companies in the manufacturing, retail, automotive, and healthcare sectors, fell 4.4%. LTL companies operate by transporting multiple shipments for different customers in a single truck. These shipments are then routed via a network service centers where they are transferred onto other trucks that have similar destinations. Operating expenses as a percent of revenue have increased to 74.6%, up from 71.9% one year ago. An increase in the operating ratio indicates an increase in cost, and therefore lower profitability. Total revenue for the company fell by 6.1%, to $1.41 Billion in the third quarter. Profit per share fell by 14%, to $1.27. According to data compiled and analyzed by LSEG, analysts on average expected revenue of 1,42 billion dollars and profit per share of $1.29. (Reporting and editing by Pooja Deai in Bengaluru, Abhinav Paramar from Bengaluru)
-
IndiGo's first-quarter earnings are lower due to currency losses
Interglobe Aviation (the operator of IndiGo) reported a decline in its first-quarter profits on Wednesday. The company was hit by escalating forex losses as well as softer growth due to border tensions between India & Pakistan. India's largest carrier by market share posted a profit for the quarter ending April-June of 21.61 billion rupies ($247.2m), down from 27.27 bn rupies a year ago. The total expenditure rose by 10% and foreign exchange losses increased by more than double. Analysts say the carrier's success has been attributed to a combination of factors, including increased incomes, sustained travel demand post-pandemic, and continued network and fleet expansion. Booking cancellations in April and may following the border conflict between India, Pakistan and Afghanistan impacted the quarterly revenue growth. In June, following the political unrest in India, a rival airline Air India's plane crashed in Ahmedabad, killing 260 people. This caused flying anxiety in many Indians. Pieter Elbers, Chief Executive of Pieter Elbers Aviation said that the June quarter was marked by external challenges which created headwinds in the aviation sector. In terms of available seat kilometers, the company's capacity for the first quarter grew by 16.4% compared to last year. In May, the firm projected a growth of "mid teens percentage range". IndiGo was able to cushion a 5% decline in yields. Yields are the average amount of money earned per passenger, per kilometre. IndiGo shares closed down 0.3% ahead of the results.
-
India Aviation Watchdog Finds 263 Faults in Indian Airlines' Annual Audit
India's aviation regulator announced on Wednesday that it found 263 safety-related mistakes at the country's airline companies, including 23 at IndiGo, the largest carrier, and 51 at Air India, the second largest. This was part of the regular audit conducted by the agency every year. The Directorate General of Civil Aviation said that the audits were conducted in accordance with International Civil Aviation Organization requirements as well as global best practices. The DGCA found 51 safety lapses in Air India's July audit. These included lack of training for some pilots as well as the use of simulators that were not approved. The audit had nothing to do with the Boeing 787 crash that claimed 260 lives in Ahmedabad last month. Air India's budget carrier, Air India Express, was also cited by the DGCA as having 17 deficiencies. The regulator discovered 25 mistakes at Air India Express. Air India Express is the budget airline. Akasa Air has not yet been audited. The regulator did no specify what type of violations were found, but divided the list into "Level II", or other non-compliances. The DGCA reported that 19 "Level 1" breaches had been found by Indian airlines. Reporting by Abhijith Ganahapavaram, Editing by Kim Coghill
-
Ukraine's farming unions raise barley exports from China
The UAC, a farming union, said that Ukraine exported 140,000 metric tonnes of barley in July so far and will likely ship between 350,000 and 400,000 tons in the month of August. "China has contracted 500,000-555,000 tons of barley (for July-August). UAC's weekly report stated that another 350,000 to 400 tons of barley still needs to be shipped by August. The total volume of barley exported for the months of July and August was 770,000 tonnes. Barva Invest, a Ukrainian analyst, said that Chinese companies had contracted to purchase up to 700 000 tons of barley from Ukraine in 2025. Ukraine is one of the largest barley producers and exporters in the world. Beijing has certified it to supply barley for Chinese markets. According to the Ukrainian grain traders' union UGA, China will be the largest importer of Ukrainian barley for the 2023/24 crop season. The volume of imports is 702,000 tons. (Reporting and editing by David Goodman.)
Asian spot prices drop on weak demand, rising supply
The price of Asian spot LNG (liquefied natural gases) fell this week due to a combination of factors: a weak demand, a rising supply, and an abundance in inventories. Meanwhile, the risk premiums were reduced by reducing the ceasefire between Israel & Iran.
Average LNG price for August deliveries into North-east Asia
The market was under pressure from a combination of factors, including the rising Pacific supply, the high LNG stocks in China and South Korea and the weak industrial demand throughout China and India. "The Iran-Israel ceasefire has further lowered geopolitical risks premiums", said Kpler analyst Go Katayama. He added that production from Australia, Malaysia, and Nigeria have increased.
The bearish outlook continues, as initial LNG Canada exports add to the supply length. Further price drops could encourage restocking in Japan, especially if soft fundamentals continue.
The data from the Industry Ministry showed that LNG stocks held by major Japanese utilities had fallen to 2,15 million tons on June 29 due to hotter weather driving cooling demand. The previous week, the stockpiles were 2.27 million tonnes. However, the current level is slightly higher than the average five-year volume of 2.1 millions tons.
Katayama added that despite the steady nuclear output of Japan, the rising temperatures outpace non-gas production capacity. This could lead to increased spot purchases if this heatwave continues.
S&P Global Commodity Insights, a commodity research firm in Europe, assessed the daily North West Europe (NWM) LNG Marker price benchmark on a basis of ex-ship (DES), for August cargoes at $11.142/mmBtu. This represents a $0.435/mmBtu reduction from the gas price at TTF's hub.
Spark Commodities set the price at $11.175/mmBtu for August, while Argus estimated it at $11.119/mmBtu.
The lack of a strong demand catalyst on the global LNG market did not result in strong price movements this week. However, the supply picture balanced out due to increased liquefaction by the U.S.A. and Qatar which helped improve supply fundamentals," stated Aly Blakeway.
As a result of a closed arbitrage with Asia, and the heatwaves in Europe that drew in LNG waterborne cargos, Europe continues to receive the bulk of LNG cargoes.
Xiaoyi Deng is deputy head of LNG prices at Argus. She said that European prices are limited because demand has been weak in other regions, and the European Union storage targets, which have become less strict, have shifted risks from summer to winter.
Deng said that the recent increase in winter premiums for prompt deliveries reflects this.
According to Spark Commodities analyst Qasim Afghan, the U.S. Arbitrage to Northeast Asia via Cape of Good Hope has been pointing towards Europe for the past five weeks, while the arbitrage through Panama continues to point to Asia.
He said that the Atlantic LNG rates have fallen to $42,000/day while Pacific LNG rates are down to $40,000.
(source: Reuters)