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Russian fuel crisis leads to long queues, headaches and frustration for motorists
The long line of cars outside Sevastopol's petrol station, a port in the Russian-controlled Crimea region, revealed to drivers in Russia how difficult it is in this time of rising gasoline prices. In recent weeks, Ukraine increased drone attacks against Russian refineries and terminals for export. Motorists have felt the impact. Alexander Semin said that he waited 40 minutes in Sevastopol to fill up his tank the day before, but he claimed he wasn't "panicked." The Izvestia, citing the fuel producers' union, reported that shortages of fuel and disruptions in gasoline supply have been reported across Russia for over a month. Sergei Aksyonov acknowledged the issue in a video on Thursday, but assured motorists the gasoline stations will be fully stocked with all types within two weeks. Locals in Nizhny Novgorod, a historic city along the Volga River, thousands of kilometers north of Crimea were also experiencing the same problems. A taxi driver, who identified himself only as Alexei, said that there was no 95 or 92 petrol at either gas station. Later it appeared, and then again disappeared." The local governor of the region east from Moscow stated this week that the disruptions are due to problems in the supply chain. He reassured residents that the issues will be resolved soon. Alexei Zlobin, a Crimean driver, said that the shortages in Crimea required some creativity. He suggested that if you are having problems with petrol, take a cart. (Reporting from Sevastopol, Nizhny Novgorod. Writing by Lucy Papachristou. Editing by Hugh Lawson.
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Drone anxiety in Denmark is highlighted by the 'Shining Star in the Sky'
Billund Airport, Denmark's second largest airport, was briefly closed early Friday morning following a report about illegal drone activity. Police later identified the drone as "a star in the skies," amid increased concern over drone sightings across Denmark. In the past 24 hours, there have been more than 500 reported drone sightings in Denmark. These incidents come after the closure of Copenhagen Airport on Monday night, Scandinavia's biggest airport, because drones were involved in what Danish Prime Minister Mette Fredericksen described as "the most severe attack against Danish critical infrastructure up to now." The drones were then spotted at Aalborg and Esbjerg airports, as well as at Sonderborg and Skrydstrup, forcing authorities to scramble for a solution. Defense Minister Troels Poulsen stated that Denmark lacks the tools necessary to combat such incursions. He noted that Denmark does not possess a ground-based system of air defence and suggested even advanced measures may struggle to deal with the type drones observed. Flemming Sndorff, 60, a consultant in the field of work environment, expressed his concern over the preparedness of the country. "I am worried because we don't have any defence. We don't have anything. We have nothing. "We can't just start shooting drones down with shotguns", he said. The government's response has been criticized, especially since Denmark has pledged to increase military spending in this year. This includes plans to acquire long range weapons capable of hitting targets deep within Russia. Why should we buy these new weapons systems if we can't even defend Danish airspace?" Noa Redington, a political analyst, said that there is a growing gap between what the government says and what actually happens. According to a poll conducted by Danish TV2 this week, half of Danes have become more concerned with the security of the country following the drone sightings. Authorities have asked the public to help law enforcement by documenting any suspected drone activity. They advise them to take photos and videos of incidents without zooming to preserve context. Next week, Denmark, the current EU Presidency, will host European Leaders in Copenhagen. Ulf Kristersson, the Swedish Prime Minister, offered to send anti-drone gear to Denmark in advance of the meeting. Frederiksen was also criticized for her absence from the meeting this week, as she traveled to Greenland. Redington stated that the woman had not been clear in her communication. The government faces a major risk if the consensus on defence policy is challenged. (Reporting by Soren Sirich Jeppesen, Stine Jacobsen, Louise Rasmussen, and Tom Little. Jacob GronholtPedersen (Writing; Hugh Lawson, Editing)
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Southwest Airlines pays $18.5 Million for employees' Military Leave
Southwest Airlines has agreed to pay $18.5m to settle a class-action lawsuit accusing it of not providing paid leave for employees who take short-term military leaves. On Thursday night, a preliminary settlement was filed in the federal court of San Francisco. The judge must approve it. Southwest denied employees pay for military leave of 14 days or less, even though they were paid for other absences, such as sick leave, jury duty, and bereavement leaves. Southwest violated federal law that protects military personnel from discrimination in civilian jobs. Court documents show that approximately 2,791 eligible Southwest workers would receive an average of $4,421, once legal fees up to a third of the settlement fund have been deducted. Southwest will also pay up to 10 paid days of short-term military leaves per calendar year between 2026 and 2030. Court documents show that the Dallas-based carrier, which denied wrongdoing, believes that military leave isn't comparable to other forms or leave, but settled in order to avoid the cost and risk of litigation. Southwest has not yet responded to a request for comment. In 2019, a San Francisco judge approved an agreement worth up to 18,8 million dollars for almost 2,000 Southwest Pilots who were also denied paid leave due to short-term military duty. Huntsman v Southwest Airlines Co., U.S. District Court for the Northern District of California No. 19-00083. Reporting by Jonathan Stempel, New York; Editing by Franklin Paul
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Russia to ban partial diesel exports until the end of the year, but traders claim that there will be little impact.
The Russian government is planning to implement a partial export ban of diesel until the end the year in order to combat shortages after a series of drone attacks by the Ukrainians on Russian refineries. However, traders expect the measure to not have a significant impact on fuel flow. The Russian restrictions will only apply to exporters that do not produce fuel or whose export share is low. Around three quarters of diesel exported by producers are sent via North and South Pipelines, which respectively lead to Baltic and Black Sea Ports. These volumes are not limited. The new restrictions do not apply to the exports of non-producing diesel by Central Asian countries that have also signed intergovernmental agreements on fuel shipment with Russia. Russia plans to restrict the export of oil and petroleum products to reduce fuel shortages across the country. Industry sources claim that Russia will produce almost 86 millions metric tons (about 31 million tons) of diesel by 2024. The Russian government has already introduced an export tariff of 50,000 rubles ($598) for non-producers, which has led to a decline in fuel supplies and a worsening of margins for traders. On the St Petersburg Exchange, diesel wholesale prices are around 70,000 roubles a ton. According to analysts' estimations, the decline in Russia’s diesel exports could reach 0-2% and will be closer towards zero, said a trader, who declined to name himself due to the sensitive nature of the issue. Another trading source stated that "the ban will not lead to any influx of Diesel Fuel into the domestic market."
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Lufthansa will cut thousands of jobs to improve efficiency
Two sources familiar with the matter say that Lufthansa will announce several thousand layoffs on Monday, at its first capital markets day for the entire company in six years. The airline is looking to reassure investors about its commitment to efficiency. After the announcement of planned cuts, shares in Lufthansa rose by 3.4%, reaching their highest level in over three weeks. Analysts and investors criticised Lufthansa's inability to reduce costs and grow the core business for two years after it delayed its target of an 8% operating margin by 2025. The group issued two profit warnings for 2024, and assured investors that it would implement a turnaround program. The exact number of redundancies is not known Two sources have confirmed that the airline group plans to cut its administrative staff by 20 percent in the next few years. However, the exact number is still being determined. Sources spoke under condition of anonymity due to the sensitive nature of the subject. The company said that its turnaround was progressing. The company is still facing labour issues, and a dispute over pensions will likely overshadow Capital Markets Day on Monday in Munich. A pilot strike is still possible. Lufthansa has declined to comment. A third source familiar with the discussions said that any redundancies would impact the entire group and not just the core carrier. Analysts predicted that the market will continue to pressure Lufthansa, to demonstrate its ability to build a more effective group. Bernstein stated in a note focusing on the airline's Capital Markets Day that despite having fewer aircraft and even less flying, the airline business employed 7% more employees than in 2019. CAN IT LEVERAGE NEW GERMAN OPERATIONS? The airline's ability to leverage Discover and City Airlines, its two new German operations, is key to the remaining hopes of a turnaround. Analysts say that the labour agreements of Lufthansa Classic are outdated, inflexible and expensive. However, the contracts for the employees of the newer subsidiaries can be more easily negotiated, according to an insider. Executives told reporters that increased flexibility would allow the group's resources to be moved from less-profitable subsidiaries to lower-cost options. Analysts said that convincing shareholders and analysts about progress will likely remain a challenge. Ruairi Cullinane is an analyst at RBC. She believes that Lufthansa needs to focus on the immediate and not mid-term goals. He said that analysts may want to know if Lufthansa will be able to meet its 2025 target of a significant rise in adjusted EBIT. (Written by Joanna Plucinska, edited by Barbara Lewis).
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MOL Hungary will resume crude oil exports to Iraqi Kurdistan
The Hungarian refiner MOL group has signed agreements for the resumption of international crude oil exports out of Iraq's Kurdistan Region, it announced on Friday. This is a major step towards restoring operations that have been halted since Spring 2023. These agreements include international exploration and production firms, the Kurdistan Regional Government and the Federal Government of Iraq. MOL anticipates that the crude oil pipeline linking the region with the Turkish port of Ceyhan will reopen within the next few days. MOL's statement said: "We are confident about the reopening and the positive impact that it will have on our operations." The closure of the pipeline earlier this year has disrupted crude oil exports from Kurdistan, affecting revenues for oil companies operating in Kurdistan. MOL owns a 20% stake of the Shaikan Oil Field in Iraqi Kurdistan. Reporting by Anna Wlodarczak Semczuk, Alan Charlish. Mark Potter edited the story.
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Foreign Minister says that Denmark does not intend to invoke NATO Article 4
Denmark does not plan to invoke NATO Article 4 following drone incursions near military and civilian sites which shut down air traffic earlier this week in the Nordic nation, Denmark's Foreign Minister said on Friday. According to Article 4 of NATO's treaty, members will consult each other whenever they believe that the territorial integrity, political independence, or security of one of their members is at risk. Reporters were told that Article 4 had been used nine times during the history of NATO, including twice in recent years in relation to Poland, and Estonia. Therefore, there is no reason for us to use it, said Foreign Minister Lars Lokke Rasmussen. Mette Frederiksen, the Danish Prime Minister, has linked the drone accident that closed Copenhagen Airport late Monday night to suspected Russian drone activity across Europe. However, she did not provide any evidence for this claim, which was strongly denied by Moscow. The Danish foreign minister announced Thursday that Denmark will also donate 2.7 billion Danish crowns (US$422.43million) to Ukraine. A large portion of the donation would go into Ukraine's defense industry. $1 = 6.3916 Danish crowns (Reporting and editing by Terje Solsvik, Louise Breusch Rasmussen)
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Source: FAA will return some 737 MAX and 787 ticketing authorities to Boeing
Sources say that the Federal Aviation Administration is allowing Boeing to issue airworthiness certifications for certain 737 MAX aircraft and 787 planes as of next week, after holding this authority for years. Since years, the FAA continues to inspect every 737 MAX or 787 aircraft prior to issuing an airworthiness certification and clearing for delivery. The FAA typically delegated the authority for issuing airline tickets to the manufacturer. Source: Under the new program, which will be announced on Friday, Boeing, FAA and other agencies will issue airworthiness certifications alternately every week. Boeing and the FAA did not immediately respond to our request for comment. After a mid-air blowout incident in which a new Alaska Airlines MAX aircraft was missing four bolts, the FAA did not lift its production cap for 38 737 MAXs per month. Reporting by Shivansh Tiwary, Bengaluru. Editing by Anil d'Silva and Tasim Zahid.
Asian spot LNG prices decline on tepid demand, ample inventories
The price of Asian spot liquefied gas fell this week due to a lacklustre market. Prices are expected remain low as Chinese gas production and ample stocks limit the interest in spot purchases.
Average LNG price for delivery to North-east Asia in November
Go Katayama is an LNG and gas analyst with data analytics firm Kpler. He said that Asian LNG prices will remain somewhat bearish through next week due to increased domestic gas production, higher underground storage withdrawals in China, and abundant regional LNG inventories.
Katayama said that the upward revisions of China's domestic gas production estimates for September to December 2025 combined with the higher forecasted underground storage withdrawals from November are likely to replace additional spot LNG demand, and put downward pressure on Asian prices.
EUROPEAN Prices Keep to Tight Range
Prices in Europe were slightly higher on Friday morning, but still within the recent tight range. The gradual end of maintenance season in Norway has increased supply, while strikes in France have reduced LNG deliveries.
The disruption caused by the strikes at French LNG Terminals will likely last until the end of September. The strike has led to a rise in the price of gas in France, and sellers have been forced to move cargoes to LNG terminals around northwest Europe.
Katayama stated that Kpler has a stable outlook on the TTF front month contract for the coming week. This is because ample LNG and pipeline supply will help balance the gradual decline in renewable generation, and the lower Algerian piped flow to the EU.
Lack of competition in Asia has reduced the urgency for European market players to purchase winter goods.
Orbify, a data intelligence company, reports that 32 vessels will be heading to Europe in the next 14-days with 1,30 million cubic meters LNG.
S&P Global Commodity Insights estimated its daily North West Europe LNG Marker price benchmark (NWM) for cargoes to be delivered in November ex-ship on September 25 at $10.954/mmBtu, a $0.65/mmBtu reduction from the November futures prices at the TTF Hub.
Spark Commodities rated the October price as $10.517/mmBtu. Argus rated the price at $10.681/mmBtu.
Xiaoyi Deng of Argus reported that in Egypt, LNG-laden vessels formed queues this week outside floating storage units due to scheduling problems at the terminals.
Spark Commodities analyst Edward Armitage said that the U.S. front month arbitrage to North-East Asia via Cape of Good Hope still encourages U.S. cargoes for delivery to Europe.
The global LNG freight rate for the Atlantic fell to its lowest level in five months, $21,500/day. Pacific rates have also weakened for the fifth consecutive week to $25,250/day. Marwa Rashad reported. Mark Potter (Editing)
(source: Reuters)