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Fire breaks out in Russia's Ust-Luga Port after drones from Ukraine cause damage
Russian officials reported that the Ust-Luga port, which is one of Russia's largest petroleum export outlets, was damaged by a Ukrainian drone attack on Sunday, which ignited a fire. Ukraine intensified drone strikes on Russia's oil export infrastructure in the last month. These attacks included Novorossiysk, on the Black Sea, and?Primorsk, and Ust-Luga, on the Baltic Sea. These attacks caused severe oil supply disruptions for Russia, which is the second largest oil exporter in the world. They also hit Moscow at a time when oil prices were above $100 per barrel because of?the Iran War. The Governor of Russia's Leningrad Region in the north said that there were waves of Ukrainian drone strikes on the area, and a fire broke out at the port?Ust-Luga which was also attacked by drones Wednesday. According to sources, the port operated by Russian oil monopoly Transneft handled around 700,000 barrels of oil per day. In 2025, it is expected that 32.9 million tons of oil-based products will be shipped. Ukraine's SBU agency for security said that?long-ranged drones hit an oil terminal in Ust-Luga. In a statement, it said that the strike had caused "serious damage" to the port and set off a fire. I was not able to verify the extent of the damages immediately. Reporting by. (Editing by Guy Faulconbridge, Mark Potter and Mark Faulconbridge)
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Oman claims that no one has claimed responsibility for the attacks on its territory
Oman's Foreign Ministry?said Sunday that it?"condemns" attacks on its land, adn that no one has claimed responsibility. Authorities are investigating "sources and motivations" of the attacks, without giving any further details or naming a specific attack. Oman reported on Saturday that a worker had been injured in a drone attack at the Salalah port of the Gulf nation. Danish container shipping company Maersk later announced it temporarily halted operations?at the Salalah port?after the attack. Iranian media reported that Iran's Revolutionary Guards claimed on Saturday they had targeted a U.S. Support vessel "considerably" away from Salalah Port. The statement continued, "As we have stated previously, the Islamic Republic of Iran respects Oman's national sovereignty." On March 11, drones ?struck oil storage facilities ?at Salalah port. Masoud Pezeshkian, the Iranian president, told Oman's Sultan in a telephone call that an investigation would be conducted into this incident. (Reporting and editing by David Goodman, Menna Alaa el-Din, Jaidaa taha)
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After being located by the Mexican Navy, two humanitarian aid vessels safely reach Havana
The Mexican Navy reported that two sailboats carrying humanitarian aid from Mexico reached Havana safely on Saturday. They had been delayed by bad weather, and were briefly reported as missing. After authorities watched their final approach, the navy confirmed that the sailboats had docked in Cuba's capital. The Mexican Navy reported earlier that a maritime surveillance plane spotted the sailboats after they were reported missing on Thursday. They were located on 'Friday, about 80 nautical miles (148km) northwest of Cuba. The crews said they were in good shape but that the 'unfavorable' weather conditions, especially winds, had slowed them down. The two boats were part of a convoy that was delivering food, medicine and baby formula to the Caribbean’s largest island. This is despite a U.S. blockade of oil shipments, which has caused power outages to worsen. A spokesperson for Nuestra América Convoy stated that the vessels were continuing their journey towards Havana. The convoy is on track to fulfill its mission - delivering desperately needed humanitarian aid for the Cuban people. The sailboats that were supposed to arrive between March 24 and 25 in Havana, Cuba, have not arrived since they left Isla Mujeres on Saturday. U.S. Coast Guard told French Press Agency AFP that the boats were found on 'Friday but later retracted its statement saying a search is still 'under way. This caused confusion. Nuestra America, or "Our America", is a coalition of nearly 300 organizations, including non-governmental groups and political parties, from over 30 countries. The group has sent approximately 20 tons of aid to Cuba by air and sea, including bicycles, solar panels, food, medicine, and solar panels. (Reporting and editing by Joe Bavier; Alistair Bell; Rod Nickel, Natalia Siniawski. Additional reporting by Dave Sherwood in Mexico City.
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Vice President Vance is the winner of CPAC's straw-poll for 2028 Presidential election.
The 'Conservative Political Action Conference is the top pick?this year? for?the next?U.S. A straw poll conducted on Saturday revealed that the next president of the United States will be Vice President?JD Vance. Vance was chosen by 53% of the attendees at this year's CPAC Convention. Secretary of State Marco Rubio was ranked'second' with 35%, at CPAC. This is a major gathering for Republican lawmakers, activists, and presidential hopefuls. CPAC, who is holding the event this year in Grapevine Texas, attracts a large number of conservative Republicans. The straw poll it conducts each year is not necessarily a reliable indicator of who will be the nominee. The poll is a snapshot into where the 'energy' currently lies in core supporters of Donald Trump's Make America Great Again movement. Trump is not eligible to run again in 2028, as he is currently serving his second term. (Reporting and editing by Sergio Non, David Gregorio, and Nathan Layne from Grapevine Texas)
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Kuwait airport damaged by drones. Radar system damaged. No casualties reported
Kuwait 'International Airport 'was targeted by multiple drone attacks Saturday, causing significant damage to the radar system, but resulting in no injuries, according to state news agency KUNA, citing Kuwait Civil Aviation Authority. Later, the spokesperson for the authority said that the attacks were perpetrated by Iran and its proxies as well as the armed groups it supports. Kuwait's fire department, meanwhile said a??fire? that broke out??? in fuel tanks at an airport on Wednesday after a previous drone assault had been extinguished AFTER 58 CONSECUTIVE HOURS, KUNA reported??on Saturday?. Tehran launched strikes on Israel, as well as on Gulf Arab states that host U.S. military bases. Israel has launched attacks on Hezbollah fighters who are aligned with Iran in Lebanon. The Houthis of?Yemen have started launching missiles against Israel to?support Iran.
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Sources say that Italy's Poste wants to meet with Telecom Italia over the takeover bid
Two sources familiar with the matter confirmed on Saturday that Poste Italiane?has requested a meeting at which the chief executive of the postal services group, Matteo Del Fante, could present its 10.8 billion euro ($12 million) cash and share bid for the former telephone monopoly. Poste, a state-backed conglomerate, announced last Sunday a plan to privatize TIM and create a digital champion in the country. This would strengthen the control of critical data for households and corporations by the government. The offer was not previously agreed upon with TIM. Sources said Del Fante had sent a request to TIM directors asking for an opportunity to present the offer. Poste, which offers services in logistics, payments, broadband, insurance, and financials, forecasts 700 million euro of annual benefits from the merger. Poste would gain control over TIM's network of data centres and its cybersecurity division Telsy. This deal would expand Poste's digital services for consumers, large businesses, and governments. Sources said that TIM's 'directors' will discuss Del Fante’s request during a meeting scheduled for Sunday. They added that the presentation of the bid 'was expected to happen in the next few weeks'. Poste and TIM declined to comment. On Sunday, TIM directors will also be expected to select advisers who will help them assess?Poste bid. Sources said that the TIM board will also decide on a?premature termination of a contract with Inwit for a long term, similar to a move made by Swisscom?s?Fastweb?. Poste is TIM’s?leading shareholder with 27%?of its ordinary share capital. This stake will drop to close to 20% when TIM converts special shares that it has outstanding in ordinary stock.
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The thieves steal 12 tons KitKat bars from Europe
Nestle, a Swiss food giant, said that thieves stole the truck carrying 12 tons of KitKat bars in Europe. Nestle's KitKat said that the truck carrying 413 793 bars of their new chocolate range set out from central Italy to distribute the chocolate across Europe but never arrived at its final destination, Poland. The vehicle as well as the merchandise are still missing. Nestle has not revealed where the truck went missing. In a separate announcement, KitKat said that the bars missing can be traced via a unique batch code. Anyone who scans the batch numbers of?the stolen bars will receive instructions on how?to contact KitKat. KitKat stated that "cargo theft is an escalating issue for businesses of every size." (Writing and editing by Dave Graham)
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Bloomberg News reports that Saudi pipeline bypasses Hormuz and pumps 7 million barrels per day of oil.
Bloomberg News reported that Saudi Arabia's East-West Pipeline, which circumvents the Strait of Hormuz and pumps?oil to its full capacity of 7 million barrels per day, according to a source familiar with the issue. Bloomberg reported that Saudi Arabia exports 5 million barrels of crude oil a day from its Yanbu port, located on the?Red Sea. The country also exports 700,000 to 900,000 barrels per day in oil products. Could not verify the report immediately. Aramco, the Saudi Arabian oil company, did not immediately respond to an inquiry for comment. Aramco CEO Amin Nasser had earlier told reporters on a March earnings call that it was expected the East-West pipe to reach its full capacity 7 million bpd within the next few days as customers reroute. Conflict in the Gulf Region, triggered by U.S. The conflict in the Gulf region,?triggered by?U.S. Iran has effectively closed the Strait of Hormuz. This has trapped a fifth of the world's oil supplies and liquefied gas, sending crude oil prices soaring above $100 per barrel. (Reporting and editing by Jan Harvey in Bengaluru, and Joe Bavier.)
Chevron is confident about its energy future and oversupply: Bousso
One would not expect a CEO of a large oil company to brag that he is more confident than ever when warnings are rife about the imminent collapse of oil prices. Mike Wirth, CEO of Chevron, announced the updated strategy on Wednesday. He dismissed concerns about an oversupply of oil in the short term, and expressed confidence in the long-term prospects for the sector. This was a far cry from the doubts that surrounded the industry a few decades ago when the momentum began to build towards the shift away from fossil fuels to low-carbon energy. The strong support for fossil fuels by Donald Trump and his "energy-dominance" agenda has provided Chevron, like its Big Oil counterparts, with a significant tailwind.
Wirth said to investors, "Never before in my career have i seen a more confident outlook." "The best of the future is yet to arrive."
The U.S. Energy Information Administration predicts that oil prices will average $55 per barrel in 2019, down from $69 last year.
NEAR-TERM RETRENCEMENT
But what a company claims is only one part of the story. What the company does is more important.
The spending plans of oil and gas companies are a good indicator of their risk appetite, both near and long term. Many energy projects like offshore oilfields and liquefied gas (LNG), for example, require billions in funding and years to build.
Chevron has therefore reduced its capital spending by $1 billion compared to previous guidance, resulting in a range between $18 billion and $21 billion annually until 2030.
U.S. oil's second largest company is also retrenching, albeit modestly, in response to the uncertainty surrounding the balance between supply and demand on the global market. International Energy Agency currently predicts a massive oversupply of 4 million barrels a day next year, approximately 4% of the global supply. If accurate, this could cause oil prices crater.
Chevron’s slight retreat suggests that its thinking is more in line with OPEC analysts who are expecting supply to roughly equal demand next year or other who believe there will be a modest oversupply.
BOOM LONG-TERM
Chevron’s actions appear to be more in line with its messaging. The company is clearly betting that oil demand will continue to grow and it's a race against time to compensate for dwindling supplies.
Chevron has plans to increase oil and gas production between 2% and 3% annually until 2030. Currently, it produces approximately 4 million barrels equivalent to oil per day.
Wirth stated that the amount of investment needed to close the oil gap is equivalent to five Saudi Arabias over the next ten years.
Chevron has stated that it will keep the production of the Permian shale in America at 1 million bpd until 2040, while reducing its investment from $4.5 billion per annum to $5 billion.
Chevron claims that it can maintain production with improved drilling methods, without drilling new wells as fast as they are currently doing. This is a bold prediction given the standard practices of shale drilling or fracking. Chevron's not the only major shale oil producer that has said it can sustain and grow shale oil production profitably for many years. ExxonMobil, ConocoPhillips and others have also indicated that they are confident of doing the same.
EXPLORATION BET
Chevron’s increasing investment in oil and natural gas exploration is perhaps the best way to demonstrate its long-term optimism. The high-risk and high-reward nature of this business demands heavy investment. It can take a decade or longer to go from the first drilling to production. Chevron has expanded its exploration activities in recent months to include Namibia, Egypt, and South America. In the coming years, Chevron plans to double its annual budget for exploration. Kevin McLachlan was hired by the company in October as its new exploration chief.
Do we have to expect a similar situation as at the beginning of this century when massive, unrestrained investments in new gas and oil resources led us to overspend and get poor returns? Most likely not. Big Oil companies have a laser-like focus on profitability. They've instituted cost-saving measures that will allow them to make money even if the oil price drops below $50. Chevron wants to reduce its structural costs between $3 and $4 billion dollars by 2026. This includes laying off 15% of the global workforce.
Chevron, and its peers, should be able to invest with more confidence in the future despite the peaks and valleys of the market. This, in turn indicates that the market will likely remain well-supplied for the foreseeable. All of this does not take into account the energy transition. The timing of Chevron’s strategy update coincides with the IEA’s new long-term outlook, which suggests that oil demand could continue to rise into 2050. Previously, it was thought that the demand would plateau by 2030.
It may sound good to Big Oil, but the reality could be harsh for Chevron and other companies in the oil industry if energy transition gains momentum again as many predict.
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(source: Reuters)