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Israel reprimands Spain for blowing up an effigy of Netanyahu
Israel announced on Saturday that it had reprimanded Spain’s most senior diplomat in Tel Aviv for the explosion of a giant effigy?of Prime Minister Benjamin Netanyahu this week in a Spanish town. Maria Dolores Narvaez, the mayor of El Burgo in southern Spain, told local TV that the seven-metre-high (23-foot-high)?figure had been packed with?14 kg (31 lb) gunpowder during a ceremony held for decades on April 5. Israel's Foreign Ministry stated in a press release on X that highlighted a video, "The appalling hatred of Jews on display is the direct result from Spanish Prime Minister Pedro Sanchez's Government's systematic incitement." I was not able to confirm the video immediately. "The Spanish government is committed to combating antisemitism, hate and discrimination in any form. We reject any 'insidious allegations' that suggest the opposite, a Spanish Foreign Ministry?source said. El Burgo Mayor Narvaez stated that the town had previously used effigies for U.S. president Donald Trump and Russian president Vladimir Putin at the annual event. Spain has always been a vocal critic of U.S. military operations in Iran and Lebanon. This is despite U.S. warnings to punish non-cooperative NATO members. Spain and Israel have been involved in a long-running dispute that began with the Gaza War. Gideon Sa'ar, Israeli Foreign Minister said that a Spanish ban on aircraft or ships transporting weapons to Israel through its?ports and?airspace was antisemitic. Spanish Foreign Minister Jose Manuel Albares has accused Israel of breaking international law and the two-week truce after a wave of airstrikes across Lebanon this week. Netanyahu claimed on Wednesday that Lebanon is not a part of the ceasefire, and Israel's military continues to attack Hezbollah with force. Sanchez, who is a prominent opponent of the Iran War, has shut down Spanish airspace for any aircraft that may be involved in an encounter he describes as reckless and illegal. (Reporting and editing by Alexander Smith; Reporting by Graham Keeley)
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The pilots' union has called for strikes on April 13 and 14.
?Union VC called on 'pilots 'at Lufthansa on a saturday to strike for two days starting on Monday over a pension dispute, saying the company has failed to make an acceptable offer. The union has asked pilots at Lufthansa CityLine, Lufthansa CityCargo, and Lufthansa Cargo to strike between April 13, 0001 CET (2221 GMT) and April 14, 2359 GMT (2159 GMT), the union stated. The ban excludes flights to the following Middle East countries: Azerbaijan (Azerbaijan), Egypt (Bahrain), Iraq, Israel (Israel), Jordan (Jordan), Kuwait, Lebanon, Oman and Saudi Arabia. The union has also asked pilots at Lufthansa's subsidiary Eurowings to go on strike from 0001 to 2359 CET on the 13th of April. The Cockpit 'union felt compelled to make this move after the employers showed no real willingness -to reach a resolution in several collective bargaining Disputes, said VC President Andreas Pinheiro. "Despite our deliberate choice not to strike over Easter holidays, no serious offer has been made." Lufthansa stated in a press release that VC's announcement was a "completely a new escalation" and questioned the union's demands to "double a company pension plan which is already excellent and above average". Reporting by Christoph Steitz, Ilona Knowebach. Jane Merriman edited the article.
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India increases export duties on aviation turbine fuel, diesel
India has raised its windfall 'tax' on the export of diesel and aviation turbine fuel, which it had imposed last week to ensure an adequate supply at home. India's Finance Ministry increased taxes on diesel exports to 55.5 rupees/litre from just 21.5 rupees/litre. The tax on aviation turbine fuel exports was also raised from 29.5 rupees/litre to 42 rupees/litre. India cut the excise tax on petrol and diesel last month by 10 rupees ($0.11). To control the rise in airfares it also set a limit of 25% on domestic airline fuel prices. Jet fuel can account for up to 40% of airline expenses. The global oil price has risen to $100 per barrel as the U.S. - Iran war continues to restrict the flow of crude oil through the Strait of Hormuz. This is the conduit that carries 40% of India's crude?oil?imports. India is the third largest oil consumer and importer in the world, and it relies heavily upon foreign supplies. (Reporting and writing by Nikunj Ahri; editing by Jan Harvey).
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Irish police break up blockade by protesters at high fuel prices
Irish police cleared protesters who had blocked the only oil refinery in Ireland on Saturday, after a senior government minister said that protests over surging fuel prices created a "very danger economic moment" for Ireland. Protesters angry by a rise of more than 20% in diesel prices following the U.S./Israeli war on Iran have used tractors and trucks to block a Whitegate refinery and a fuel terminal, as well as a few roads in Dublin's capital. The government said that hundreds of petrol stations were left 'without fuel,' putting emergency services at risk. State broadcaster RTE reported that police detained one protester and pushed others back at the Whitegate refinery on Saturday. The police released a video on social media that showed a number?of oil trucks?entering the refinery. After Finance Minister Simon Harris stated that the protests caused an "extremely hazardous moment" for the economy, this action was taken. Micheal Martin, the Prime Minister, said on Friday that the country was in danger of being forced to stop oil deliveries. Conor Humphries is the author. (Editing by Jane Merriman.
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Cathay Pacific will cut flights between mid-May and end-June due to rising jet fuel prices
Cathay Pacific Airlines announced on Saturday that it would cut some flights from mid-May until the end of June, citing the rising costs of jet fuel caused by the Middle East conflict. It was reported that the airline would cancel about 2% scheduled passenger flights between May '16 and June 30, 2026. Meanwhile, its budget arm HK Express would cut around 6% starting May 11. The airline said that the suspension of passenger services between Dubai and Riyadh will remain in effect until June 30. Cathay's CEO Ronald Lam announced last month that the Hong Kong-based carrier would expand its passenger capacity this year by 10%, citing a strong demand for flights to North America and Europe, as well as Australia, after the Iran War cut off traffic in the Middle East. Cathay?Pacific said that it plans to continue operating all scheduled passenger flights beyond June. Executives said that the two-week?ceasefire? between President Donald Trump and Iran will not bring immediate relief to the aviation industry. Officials in the industry have warned that jet fuel supplies will be tight and expensive for several months even if Iran were to reopen the Strait of Hormuz. (Reporting and editing by Anusha in Bengaluru)
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German Finance Minister: Market intervention is needed to combat energy crisis.
The German Vice-Chancellor and Finance Minister Lars 'Klingbeil said on Saturday that government action was the best way to reduce soaring fuel and diesel prices. This exacerbated a rift within the coalition about how to tackle the current energy crises. The Iran War has disrupted the global energy supply, causing Europe's biggest economy to face higher gas and oil prices at a time of tepid economic growth. "Intervening on the market is the most effective approach." In other European countries, we see this," Klingbeil said to Sueddeutsche Zeitung during an interview. This put him at odds with Economy Minister Katherina Reiche. "And I think we should also have this courage." Klingbeil reiterated his plans to impose a windfall on the profits of energy companies, given the high petrol prices. He added that this would enable Germany to "skim crisis profits and?use them for real relief for its citizens". It should be accompanied by a reduction of?energy tax as well as price cap for petrol and diesel similar to that in other European countries. "I cannot explain to anyone how in countries like?Belgium or Luxembourg, neither of which are communist, the government caps prices while here, they skyrocket," said?Klingbeil. Reiche of the Christian Democrats branded Klingbeil’s proposals as "expensive" and "ineffective". He added that coalition leaders will continue to discuss possible solutions this weekend. (Reporting and editing by Chizu Nomiyama)
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FAA and Pentagon sign agreement to deploy anti-drone Laser System near Mexico
The Federal Aviation Administration and Pentagon announced on Friday that they had signed an agreement to allow the government to use a high-energy laser counter-drone along the southern border of the United States with Mexico. After the FAA tested the laser system in New Mexico used by the Pentagon, Homeland Security Department, and verified that the proper safety controls were in place and did not pose any undue risk to passenger aircraft. Two previous incidents raised serious concerns. The U.S. Military accidentally shot down a drone using the laser-based systems on?February 25. This led the FAA (Federal Aviation Administration) to extend the area where flights around Fort Hancock, Texas are prohibited. This incident occurred after the FAA halted all flights at the El Paso Airport for 10 days on February 18, due to the use of a 'Pentagon Laser System' by Homeland Security without completing a safety review by the FAA. After the White House intervened, the FAA lifted the shutdown order for El Paso after eight hours. After a thorough and data-driven Safety Risk Assessment we concluded that these systems did not pose an increased risk for the flying public," FAA Administrator Bryan Bedford stated on Friday. Pentagon officials have confirmed that more than 1,000 drones are used along the U.S. - Mexico border each month. U.S. officials are increasingly concerned about Mexican cartels using drones to deliver drugs or monitor trafficking routes. Media outlets reported that drones were spotted last month over Fort McNair, Washington, where Secretary of State Marco Rubio and Defense Secretary Pete Hegseth reside. The Pentagon has not announced any plans to deploy the Laser at the base which is located near the Reagan Washington National Airport. Last month, Democratic Senator Tammy Duckworth called for federal watchdogs review the decision making process that led to the use and decision by the FAA to close airspace. (Reporting and Editing by Franklin Paul & Rod Nickel, Rod Nickel, David Shepardson)
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A crash involving a bus full of British tourists in La Gomera, Spain has left one dead and 27 injured
Emergency services reported that at least one person died and 27 others were injured after a bus carrying British tourists crashed into a ravine in La Gomera. Local emergency services posted on social media that the injured, among them three people in a serious condition, were airlifted from the Nuestra Senora de Guadalupe Hospital. The local emergency services said that 27 British citizens and the driver were among the injured. The accident happened when the vehicle came 'off the GM-2 highway?in La Gomera. This island is popular with northern European visitors. The British Foreign Ministry said that they were in contact with the local authorities, and would be happy to assist British nationals. The bus was operated locally by Gomera?Tours. A spokesman for the company said that it would not comment when contacted. The Spanish police have launched an investigation, but the cause of this crash has yet to be determined. In a traffic crash on the same road last year, 10 people were injured and?one woman was killed?
What can oil prices tell you about the market? Not a lot: Bousso
The global oil market is experiencing a series of price spikes due to geopolitical tensions and the opaque stockpiling. Western sanctions and tightening Western sanction are also causing traders to be in the dark.
There are questions about the accuracy of prices reflecting physical fundamentals due to the growing influence of unpredictable external forces on one of world's most liquid and largest commodity markets.
In fact, it appears that the global oil market is struggling to find a balance between supply and demand. The International Energy Agency predicts that oil production will exceed demand this year by 3.7 million barrels per day, which is more than 3%.
Prices tell a very different story. Brent crude oil prices, which are the benchmark for all other crude oils, have fluctuated in recent weeks. However they remain stable at over $65 per barrel.
The forward curve also shows a steep backwardation. This is a characteristic structure that's usually associated with a tight supply.
What is the explanation? The uncertainty surrounding events in the Middle East played a part over the last few weeks. Oil prices have risen to $70 per barrel due to the risk of U.S. strikes against Iran and the potential for the conflict to spread across the entire region.
The CBOE crude volatility index is at its highest level since last June's 12-day Israel-Iran conflict.
U.S. and Iranian tensions will only be a short-term issue, unless they spiral out of control. However, other long-term trends could obscure the picture of supply and demand for many months.
STOCKS ARE BUILDING
Stocks are increasing globally, which is a sign that the market is oversupplied. Geopolitical fragmentation creates regional divergences which complicates this simple equation.
Morgan Stanley predicts that global crude stocks will rise by 730 million barrels in this year, or 520 million barrels. According to ROI estimates, the bulk of the stockpile was in China. The country has placed around 800,000 barrels per day into storage during the last year. This figure indicates an increase of over 300 million barrels by 2025.
China's exact crude reserves and storage capacity are still unclear. The strategic reserves of China are largely hidden underground, beyond the reach of satellites. This makes it difficult to know how much is actually in storage and how much can be added.
China's buying strategy is also uncertain. Beijing has a tendency to reduce its purchases when prices increase, so the stockpiling may have been slowed after recent price increases near $70 per barrel. The market doesn't know.
This opacity is a major blind spot for the oil markets and has changed the way that rising storage levels are interpreted.
In the past, oil prices were closely tied to changes in inventories of countries that are members of the Organisation for Economic Co-operation and Development, notably those from America and Europe which have long been dominant forces on global demand. A rise in stockpiles was generally considered negative.
Martijn Rats is an analyst with Morgan Stanley. He says that the buildup of visible OECD inventory signals a negative price signal, but the Chinese stockbuildups are perceived as a bullish sign, indicating heightened demand, which offsets this.
This could explain why the crude oil prices haven't dropped despite an increase in global inventories.
CONFUSION GEOPOLITIQUE
Western sanctions against several oil-producing countries are complicating the picture.
Kpler reports that China, India, and Turkey are importing 3.5 million barrels per day (bpd) of Venezuelan, Iranian, and Russian crude. This is expected to increase to 4.5 million by 2025. This picture is changing following the ban imposed by the European Union, which took effect on 21 January, on imports from?fuels refined using Russian crude and President Donald Trump increasing pressure on India to reduce Russian oil purchases.
India has cut its Russian crude imports by about 1 million barrels per day this year. This is down from 1.6 millions bpd a decade ago. According to Trump, India also promised to reduce further purchases.
These changes are forcing market adjustments. Western restrictions have boosted the demand for barrels that are not sanctioned and for tankers that comply with regulations. This has increased costs for refiners in Asia because of limited production.
Since early January, Asian refinery margins are smaller than those of Europe. The former averages around $6 per barrel this year while the latter is $9. The main reason for this difference is logistics costs.
Keshav Lhiya is the CEO of HiLo Analytics. He said that freight was a significant regional differentiator in 2018.
According to LSEG, freight rates for a VLCC sailing from the 'Middle East' or?West Africa to Asia has risen by nearly 150% in the past year.
Shipping costs for Asian refiners can exceed $3 per barrel, while they are closer to $2 in Europe.
The restrictions have also led to an increase in the amount of crude oil that is being sold at sea, as the sellers are struggling to find buyers.
Russia, Iran and Venezuela are responsible for 30% of the crude oil in transit. This is a far greater share than they have exported. It also indicates a slower rate of discharge as traders struggle to position the barrels.
This leads to a market which appears both oversupplied and unusually tight.
This tension is a reflection of a market that is increasingly driven by geopolitics, and by the behavior of opaque stockpilers.
Oil prices will likely remain out of sync until transparency is improved or political risks are reduced.
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(source: Reuters)