Latest News
-
Venezuela revokes flight rights for six airlines amid escalating US tensions
Six major international airlines have lost their operating rights in Venezuela after suspending flights to the nation following an advisory from the U.S. Federal Aviation Administration. Venezuela's civil Aviation Authority revoked the permits of Iberia and other airlines, including TAP, Avianca Latam Colombia Turkish Airlines, Gol. Caracas said in a press release that the carriers "joined state terrorism, promoted by the United States", by "unilaterally halting" commercial flights. The U.S. FAA warned major airlines last week of a "potentially dangerous situation" if they flew over Venezuela because "the security situation is worsening and there are increased military activities in or around the country." Caracas has said that the U.S. Safety Alert says it does not have authority over its airspace. Since months, the U.S. has deployed forces in the Caribbean to combat what they have portrayed as President Nicolas Maduro’s role in supplying drugs illegally that killed Americans. Maduro denies the allegations, and claims that U.S. president Donald Trump wants to remove him. In recent days, several international airlines have cancelled flights to Venezuela, ignoring Caracas’s 48-hour deadline for resuming services. Iberia has stated that it will resume flights to Venezuela once all safety conditions have been met. Air Europa and Plus Ultra suspended their flights, but they did not lose their permits. (Reporting and editing by Kevin Buckland; Additional reporting by Corina Poons)
-
Romania signss deal to purchase French Mistral air defense systems
The Romanian defence ministry announced that it would purchase French Mistral air defense systems in the amount of more than 626 millions euros ($726million), as part of a joint acquisition deal with other European Union countries. The Ministry of Defence said that it had signed a contract with the French Defense Ministry on Tuesday for the purchase 231 man-portable Air-Defense Systems (MANPADS), built by the missile manufacturer MBDA, and 934 missiles along with training, simulators and logistics. The statement did specify the date of delivery. The first time the Romanian legislators approved the acquisition plan was in 2022. Romania, an EU and NATO member, shares a land border of 650 km (400 miles) with Ukraine. Since Russia began to attack Kyiv’s ports on the other side of the Danube, drones have repeatedly breached its airspace, and fragments have fallen onto its territory. Romanian air defences include F-16 fighters, Patriot systems and Lockheed Martin HIMARS launchers. Short-range South Korean surface to air Chiron missiles as well as German anti-aircraft Gepard cannons. A new European Union funding mechanism for defence will also allow the country to work with Ukraine on drones. Officials from the US and Romanian defence have confirmed that Romania is in the final stages to deploy the new Merops system against drones, which was supplied by the United States. Reporting by Luiza Ili; Editing Alexandra Hudson
-
JPMorgan will build a huge new UK headquarters in London's Canary Wharf
JPMorgan said on Thursday it would build a 3-million-square-foot (280,000-square-metre) tower in the Canary Wharf financial district in East London, committing a big investment to Britain on the heels of a closely watched UK budget that has sought to reassure investors of the nation's finances. JPMorgan stated that the project will contribute 9,9 billion pounds ($13,1 billion) to the local economy over the next six years - including construction costs - and create 7,800 new jobs. JPMorgan said that the new building would house 12,000 employees and be the largest office of the bank in Europe, Middle East, and Africa. This is a great move for Canary Wharf, the financial district that struggled to keep big tenants after COVID-19 but has seen a recent surge in leasing due to companies demanding more employees return to work. Jamie Dimon, JPMorgan's Chairman and CEO, said that the UK government's focus on economic growth was a key factor in his decision. This came a day after he had backed UK Finance Minister Rachel Reeves budget in a rare show of support. Public remarks on a budget day. First, reported Last year, JPMorgan began evaluating options for its UK HQ in London. The Wall Street bank had outgrown its tower in Canary Wharf. The company also considered upgrading its current building at Bank Street, Canary Wharf, and moving to a more central location in the City of London.
-
In China's worst rail crash in over a ten-year period, a train runs down and kills 11.
Officials in Kunming, a city in southwest China, said that a train hit a group railway workers, killing eleven and injuring another two. This is the deadliest rail crash in over a decade. Officials said that the train was testing equipment for earthquake detection when it hit workers at the Luoyang Town Railway Station. In a press release, the station in Yunnan Province has resumed its normal operations. The cause of the accident will be investigated. China has the largest rail network in the world, covering more than 100,000 km and making billions of trips every year. Although praised for efficiency, the system has been scrutinized after several high profile incidents. One such incident was a 2011 crash that left 40 dead and 200 injured in Zhejiang, a province located in eastern China. In 2021, nine people were killed when a train from the northwest province of Gansu hit workers working on a section the Lanzhou-Xinjiang rail line. (Reporting and editing by Christian Schmollinger, Clarence Fernandez and Shi Bu)
-
IDB approves loan of $300 million to strengthen Ecuador's electricity grid
The Inter-American Development Bank approved a loan of $300 million to assist Ecuador in strengthening its electrical system. This was announced by the Andean country's Finance Ministry on Wednesday. The IDB Group has launched the Amazonia Siempre Initiative, which focuses on sustainable development, conservation of forests and improvement of quality of life. The funding includes $270m in IDB Ordinary Capital, with a term of 22.5 years and an 8-year grace period. * The Clean Technology Fund will provide an additional $30 million at concessional rates with a 1.19% rate of interest over 20 years. * Over 700 km of transmission line will be upgraded to advanced conductors in order to increase system capability and facilitate the integration of renewable generation. Project priorities include expanding access to electricity in the Amazon. By 2031, an estimated 5,600 rural households and urban marginal households are expected to be connected to the national grid. * The funds will be used to increase renewable energy production and improve transmission infrastructure.
-
Source: MD-11 grounding following UPS crash likely to end by 2026.
David Shepardson and Allison Lampert Source: The grounding of MD-11 aircraft after the fiery crash of one plane this month is not likely to end until 2026. This will drive industry demand for alternative solutions as peak delivery season begins this week. Boeing and the Federal Aviation Administration must complete testing following the November 4, 2014 crash of an UPS MD-11 jet in Louisville, Kentucky that resulted in the deaths of 14 people before they can agree on the inspection criteria for ungrounding the planes. The source, who spoke on condition of anonymity, stated that the FAA had grounded the jets just days after they crashed. Inspection guidelines would allow them to fly again next year. The latest sign that the air cargo workhorses of the industry will remain grounded for longer than expected is the source who spoke about the private matter under condition of anonymity. UPS (UPS.N), the U.S. parcel giant, said that it was leasing more planes than usual. FedEx, its rival, said it was using spare aircraft to "leverage" opportunities for chartering planes. UPS and FedEx have a combined fleet of over 100 planes, including 50 MD-11 jets. While air cargo demand will only increase slightly over the next year, delivery companies can expect to see their average daily package volume more than double during the holidays. In general, inspections of planes are expected to be completed earlier. FedEx CFO John Dietrich said at a conference on November 11, that the inspections of their operating fleet of MD-11 aircraft would begin in the next few days. In a letter, an executive of U.S. cargo airline Western Global Airlines stated that it would be forced to lay off pilots as it anticipated the groundeding of the model, which makes up the majority of its fleet, to only last a short time. Nik Fialka, a pilot and podcaster, shared the letter on social media Monday. The letter stated that Boeing had advised "more and highly intrusive inspections as well as repairs, and part replacements will be required." Western Global did not respond to a comment request. Its website lists FedEx, UPS, and other clients. Boeing's spokesperson confirmed that its team provides technical and instructional support to operators. The U.S. aircraft manufacturer acquired the MD-11 programme through its 1997 merger McDonnell Douglas. The chair of the National Transportation Safety Board (NTSB), which is leading an investigation into the UPS accident, said last week that there is still a lot to be done. Jennifer Homendy, Chair of NTSB, said that the NTSB has a number of pieces in its lab and is continuing to work on them.
-
Urals differentials unchanged during quiet trade
The Russian Urals crude differentials compared to Brent dated were unchanged on December trading volumes as Western sanctions pressure and price discussions between sellers and purchasers slowed the trading, traders reported. Traders said that market participants were adapting to the new reality of the market after the latest U.S. sanctions and EU sanctions against Russian oil. Three industry sources who have direct knowledge of this matter say that a Western-sanctioned ship with Russian oil bound for Indian Oil Corp had its cargo discharge delayed in a port in east India because of a delay in the online verification of insurance coverage provided by a Russian company. Three industry sources with direct knowledge of the matter said that a vessel sanctioned by Western countries and carrying Russian oil bound for Indian Oil Corp had its discharge delayed at a port in eastern India due to a delay in online verification of insurance cover provided by a Russian insurer. PLATTS WINDOW Traders reported that no bids or offers for Urals, Azeri BTC, and CPC Blend were made on February 2. Peter Szijjarto, Hungary's foreign minister, said that the MOL oil and gas company will increase its crude oil and fuel supplies to Serbia following the U.S. sanctioned cutoff of supplies to NIS (Russian-owned refinery) due to U.S. restrictions. Richard Chang (Reporting and Editing)
-
Brazil's Finance Minister does not expect the government to challenge the bill on special pension
Fernando Haddad, Brazilian Finance Minister, said that he did not think the government would challenge in court the Senate-approved legislation to set up special retirement rules for health agents working within the community. He also argued that the measure was not a source of mandatory revenue. Haddad, in an interview with GloboNews said that it was possible to create fiscal room for measures proposed by Congress. However, he cautioned that they must be discussed before. * "Congress is free to make any claim it wants, but must indicate where the funding comes from," he said. "You must create fiscal room." The Brazilian Senate has approved a bill establishing special retirement conditions for community healthcare agents. This legislation has raised concerns about its fiscal impact. * The Lower House of Brazil still has to approve the bill. Rogerio Ceon, the Brazilian Treasury Chief, later said that the government has not yet received an official estimate of the bill's budget impact. Potential Rescue Plan for CORREIOS Haddad stated that the government has not discussed a possible privatization of Brazil’s state-run Correios postal service. He said that a rescue plan, sponsored by Treasury, would only be implemented after the creation of an "consistent and comprehensive" restructuring plan for Correios. * The Minister said that he only received a clear picture of Correios’s worsening financial problems "very recently". Dario Durigan, the Deputy Minister of Finance, was in attendance on Monday. You can also recognize this by The government's budget for this year has been affected by the "poor" performance of the postal service.
US LNG producers sign near-record contract volumes, despite fees climbing
The U.S. industry is on track to sign the second highest number of contracts this year, despite concerns over rising costs and increased capacity. U.S. LNG companies signed sales and buy agreements (SPAs), totaling 29.5 million metric tons of LNG annually, in the first ten months of 2025. This is more than four-times the 7 mtpa of LNG signed by the entire year 2024.
The SPAs can be used by project developers as a tool to raise funding by demonstrating the ability of planned projects to generate a positive cash flow, with customers being locked into long-term contracts lasting up 20 years. According to Rapidan Energy, the only time that more binding agreements have been signed by U.S. companies was in 2022 when Russia invaded Ukraine.
Many buyers who are looking to diversify their energy sources away from Russian gas are willing to pay the higher liquefaction charges that American LNG developers charge in order to convert natural gases into liquids that can be transported easily around the globe on specialized ships.
The companies with LNG trading portfolios also buy volumes from American producers.
Fears of GLUT are growing as US LNG output continues to grow. President Donald Trump returned in January, with an agenda that was pro-oil. In trade negotiations with Europe, he has pushed LNG deals. The European Union agreed to purchase $750 billion of energy from the U.S. and his administration lifted former president Joe Biden's ban on new project approvals. The final investment decisions that followed will add 61.5 mtpa to the existing 120 mtpa LNG export base. Cheniere Energy Venture Global Sempra Next Decade Woodside Energy and Venture Global have all approved new facilities in this year. According to the U.S. Energy Information Administration, the country's total LNG capacity is expected to double by 2029. According to the International Energy Agency, America could export a third of global LNG in 2030.
The IEA predicts that a rapid expansion of U.S. Liquefied Natural Gas (LNG) could lead to a global glut and lower prices.
Keisuke Sadamori, Director of Energy Markets and Security at the IEA, said that new supplies, notably those from the United States and Qatar should bring down prices, a welcome relief to gas importers around world. Shell and Total have also forecast lower LNG prices, but some investors say that predictions are too optimistic.
Woodside CEO Meg O'Neill stated at a September event that "we're very bullish about LNG demand on the long-term." Venture Global CEO Mike Sabel forecasts a growth in demand as more data centers and Asian countries switch to LNG for electricity production. Sabel said, "I believe data centers will be a major source of incremental demand. But you are currently short on gas production capability."
Construction Costs are Rising
Jason Feer, Poten and Partners' business intelligence director, says that labor inflation due to shortages of qualified workers and the rising cost of equipment because of tariffs is increasing construction costs. TotalEnergies CEO Patrick Pouyanne stated on a recent earnings call that costs have risen up to 20 percent in some cases, making some projects uncompetitive. Venture Global reported cost overruns for its 27.2 mtpa Plaquemines facility. Golden Pass, an Exxon Mobil-QatarEnergy joint venture, is also over budget and late. Feer stated that developers are seeking liquefaction charges, which have risen by an average of 15% in the last two years, to keep their projects viable.
Venture Global, a supplier that is considered low-cost, charges $2.30 for every million British thermal units (mmBtu). This fee applies to new contracts. Two people familiar with its pricing said that the fee was higher than $1.75 per million British thermal unit (mmBtu) it charged when Calcasieu Pass first contracted sales. Cheniere Energy, which is the largest U.S. producer of LNG, charges a premium over $2.75 for each mmBtu. Woodside offers 10-year contracts at $2.90/mmBtu. Feer added that the fees on the market in general had averaged around $2/mmBtu by 2023.
Higher prices are not stopping buyers. According to Rapidan Energy's director of global gas Alex Munton, the window for developing more LNG projects in the U.S. may be closing due to rising costs and the prospect that global prices will drop.
Munton said, "This bull-run must end. It cannot last forever."
Even with higher liquefaction costs and lower spot prices, some buyers like ENI and Petronas continue to sign new long-term contracts. JERA, Japan's biggest power generator, wants U.S. Gas to diversify, avoid over-dependence upon Australia, and meet the demand growth spurred on by data centers and AI.
Pouyanne, from TotalEnergies, said that many large players focus on the big picture and lock in new volumes of trade even though fees are increasing. Trading and arbitrage opportunities increase as the market grows.
The IEA stated that even a slight easing in the market would allow countries with higher prices to switch from coal, and increase global LNG demand. Curtis Williams, Houston (Reporting; Nathan Crooks, David Gregorio and David Gregorio).
(source: Reuters)