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Sources: Cargo ship is attacked in the Red Sea
Two?Yemeni?coastguard sources and two government military officials confirmed that a?small cargo vessel was attacked by Houthis, who are allied with Iran, in the Bab El-Mandeb Strait on Tuesday, killing three crew members. Sources in maritime security said that a small cargo vessel was believed to be a target of the Red Sea. However, the fate of the crew is still unknown. If confirmed, if the?Tihamah flying the flag of Tanzania is hit by a Houthi attack on a ship it would be the first death in a Houthi attack on a'ship since the Middle East conflict began with U.S. and Israeli attacks on Iran towards the end of February. In response to what the Houthis described as a Saudi-led siege, they declared a blockade of?Saudi Arabia's naval forces in the Red Sea last month. Riyadh has denied that it has besieged Yemen. Yemeni sources say that the Houthis has not claimed responsibility for the attack which killed two Pakistanis and one Indonesian on the boat leaving Salalah, Oman via Djibouti. The closure of the Strait of Hormuz has already caused a lot of uncertainty to?shipping firms? Kpler data revealed that an average of 32 ships a day traversed the Bab el-Mandeb strait in the last week. Before the blockade, an average of 50 ships per day traversed the strait.
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Venture Global increases its core profit forecast to 2026 for the second consecutive quarter
Venture Global raised its core profit forecast for the full year adjusted by a quarter for the second consecutive quarter as the 'U.S. The LNG company is expecting higher liquefaction charges for its unsold cargoes, and increased sales volumes. The Middle East conflict, which has caused supply disruptions in the US and a growing European market have boosted demand for U.S. Liquefied Natural Gas. This has prompted buyers to look into long-term contracts. Export projects also increase supply on the global market. The company will now pay a fixed fee of between $12.50 and $13.50 for each million British thermal units in 2026. This is a significant increase from the $9.50-$10.50 previously charged. Long-term contracts are the main way that U.S. LNG producers secure liquefaction fees. Operators can change some pricing elements in response to market conditions. Venture Global anticipates exporting 'between 149-154' cargoes from its Calcasieu location this year, a higher number than the previous range of 147-154 cargoes. It has also reduced its Plaquemines cargo forecast to 351-364 from 349-369. In the second quarter of this year, the company sold 466.4 trillion British Thermal Units (TBtu). This compares to 89 cargoes in the first quarter and 329.2 TBtu a few years ago. During the third quarter, Venture Global expanded its supply?agreements, particularly with Greece's Atlanti-SEE and Germany's EnBW. This strengthened Venture Global's position in Europe, a 'key market' for U.S. exports of LNG. Arlington, Virginia based company expects core earnings adjusted between $8.7 billion to $9.1 billion in 2026, compared to its previous range of $8.2 - $8.5 billion. According to LSEG, the company reported a quarterly adjusted core income of $2.49 Billion, compared to analysts' estimates of $2.50 Billion. The company's net profit for the quarter more than tripled to $1.35 Billion from $368 MILLION a year ago, thanks in part to higher LNG sales from its Plaquemines facility in Louisiana. (Reporting from Bengaluru by Sumit S. Saha; Editing by Leroy Leo).
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Fuel sales from the US to Cuban businesses bring a taste of capitalism to Havana
Gasoline for $38 per gallon is sold in cramped apartment. Diesel is being sold on Instagram to reggaeton music by a celebrity. Cuba's communist sector of energy is experiencing capitalist cracks six decades after Fidel's revolution. The exception that permits U.S. companies to export fuel directly to Cuban private businesses, under Washington's crippling?oil embargo against Cuba has triggered a chaotic black-market and opened up a tightly controlled energy sector by the government since Dwight Eisenhower occupied the White House. After the U.S. ousted Venezuelan President Nicolas Maduro from office in January, oil shipments to Cuba's traditional supplier Venezuela and Mexico abruptly ceased. U.S. Coast Guard cutters are patrolling the waters near Cuba while sanctions and threats have discouraged tankers from setting sail. The embargo is affecting essential services run by the state, such as healthcare, public transportation and schools. Under the Commerce Department's exception, however, only a small amount of fuel is now reaching restaurants, retailers, and taxis. This is the first time that U.S. fuel has been landed on the Caribbean Island since Castro nationalized the refineries following the 1959 Revolution. It is not possible to determine which U.S. oil companies are supplying fuel to Cuba. However, there are no signs that major oil traders have been involved. Some of the fuel is sold on the black-market, allowing those with the means to maintain their gas tanks and home generators. This helps the public transport system, rolling blackouts and the faltering water supply in the country. The new system, while providing some relief to the poor, is increasing wealth disparities. Amarilis Sánchez, 53, spent hours waiting at a Havana bus stop on a recent afternoon in July. She had come to Havana to celebrate the birthday of her daughter, but was now losing hope that the bus, which costs 2 pesos to take home, would arrive. A few taxi drivers were leaning against antique cars across the street. Ismael, one of the taxi drivers, offered to take Sanchez but said the trip would be 1,000 pesos. This is 500 times more than the bus because of the black-market price of diesel and gasoline, the fuel that many Cuban cars run on. Sanchez, who is unemployed, could not afford to do this. She said that her plan was for her to wait until the sun went down and if it didn't arrive, she would sleep at the house of her daughter and then return the next morning. Backroom Deals and Social Media Ads While the 900k barrels of U.S. Fuel imported between February and May were only enough to meet the country's needs for energy for nine days, they have led to "big" changes. Reporters found this out during their visits to legal wholesalers and black market distributors as well as in discussions with business owners and economists. Havana fell into darkness when the national grid failed just before 11 pm on a Sunday night this month. However, generators powered by imported fuel kept a few shops and restaurants lit. In plain view, a thriving resale marketplace has sprung up. In a central Havana convenience store, stocked with sodas, beer, and crackers, on another day customers played pool at the entrance. The shopkeeper keeps gasoline in a large room at the back of the store. She sells it for $5 per liter, or $19 per gallon. In a nearby tenement, a man advertises gasoline online and hoards the fuel?in his tiny apartment, despite the dangers of fire, explosions, and toxic fumes. WhatsApp groups devoted to?illegal fuel sales are on the rise. The black-market price peaked this spring at an eye-watering $10.00 per liter ($38.00 per gallon), before falling as imports increased. In February, in an effort to avoid the paralysis caused by the oil blockade the government allowed private companies to import fuel to use themselves. Cuban legislators approved in June a comprehensive package of economic reforms to open the energy sector up to foreign and private investors. Although this package is not yet fully implemented, it was approved by Cuban lawmakers in June. The reforms would open up the energy sector to private and foreign investors. In a social media viral advertisement for such a company, a model who is the ex-girlfriend a Cuban reggaeton singer struts around a warehouse full of industrial bulk containers filled with diesel while Daddy Yankee's "Gasolina", a hit song by Daddy Yankee, plays in the background. A spokesperson from the company that created the advertisement, A Granel said they only sell to registered private businesses. The company charges $2.50 per liter for a 940-liter tank. CUBA GAS STATIONS UP TO GRABS? Manuel Marrero Cruz, Cuba's Prime Minister, said late in July that Cuba had approved the first foreign venture to import and sell fuel on the Island. He didn't identify the company. Cuban law prohibits companies from reselling fuel imported without express authorization. Cuba has not yet approved retail sales despite the reforms that indicate private companies may be able soon to operate some of the distinctive Cupet red and green gas stations. Oniel Diz, the founder of Havana's consulting firm Auge, stated that some state-run gas stations store U.S. gasoline, which they can only disburse to vehicles registered with specific private companies. Cuban authorities have not responded to requests for comments. On July 29, President Miguel Diaz Canel denounced Washington's "genocidal" siege of the island. He said that the United States was not behind economic reforms and promised no "massive" privatization of assets. In response, State Department spokesperson Tommy Pigott stated that Washington acknowledged "the significant humanitarian need" of Cubans while accusing Cuban officials of incompetence, diverting resources without evidence. He stated that private businesses, non-governmental organizations, and diplomatic missions import fuel, mainly from the United States. However, he did not respond to questions regarding the impact of U.S. policies on Cuba's high prices and black market. The average monthly government salary is only $10 (roughly 6,700 pesos), so imported fuels are out of reach for most of the island's nine million residents. Fuel sold on the blackmarket is illegal in Cuba and violates U.S. export regulations, which state that fuel can only be used by the private sector and not the Cuban government. Jorge Pinon, an energy expert and former oil executive from Cuba who works at University of Texas at Austin, stated that "it looks good on paper but there is no monitoring of the people's compliance" with the restrictions. The news agency was not able to determine the amount of U.S. gasoline that reaches the black markets, nor could it find any evidence that the fuel ended up in Cuban officials' hands or government entities sanctioned by the U.S. Diaz stated that other countries such as Mexico and Panama have also exported small amounts to Cuba's Private Sector in recent months. STATE CONTROLS?PORTS and GAS STATIONS Fuel destined for U.S. private buyers is currently required to pass through state-owned ports and storage tanks controlled by entities sanctioned by the U.S. Diaz says that private Cuban companies enter into service agreements for the use state infrastructure with these entities, paying?11 cents per liter. No evidence was found that fuel is being diverted in this process. Jeremy Paner is a former U.S. Treasury Department Investigator who advises businesses. Cuba has said it will continue to relax restrictions and encourage private investment but it is unclear how far these reforms will extend. Mayra Espina is a Cuban sociologist who specializes on poverty. She says that the few supplies of expensive U.S. gasoline don't even begin to compensate for the volume of fuel Trump's embargo has kept out. She said, "At least it has prevented the country from being paralyzed." For the vast majority who depend on public services, "it increases and entrenches inequalities." Reporting by Laura Gottesdiener in Havana and Ayose Naranjo in Mexico City. Claudia Parsons edited the piece.
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Latvia vows to fight people smugglers after finding a tunnel under the Belarus border
On Tuesday, Latvia announced that a tunnel was discovered 'under the border of Belarus. It also announced plans to combat the networks which it claims are helping an increasing number of migrants cross the border 'illegally. Last month, Latvian soldiers fired a warning shot and used teargas to deter migrants from entering the country through Belarus. Belarus shares a 173 km (107 mile) border with Latvia. Interior Minister Janis Dombrava said at a press conference held jointly with Prime Minister Andris Kubergs that "the protection of Latvia's east border will be enhanced, through closer cooperation between Border Guard, State Police and National Armed Forces, as well as more intensive use by drones to detect and detain illegal migrants early." In recent weeks, European nations expressed concern about unregulated migration following the inflow of tens and thousands of Moroccans to the Spanish exclave Ceuta. However, most of these migrants have now migrated elsewhere. Kulbergs stated that criminal networks were facilitating migration from Belarus to Latvia and bringing them into Europe's borderless Schengen zone, but the migrants' final destination was elsewhere on the continent. "They migrate where it is easier (to enter EU). "We mustn't be the easiest place," Kulbergs said at the press conference. As part of "Operation Werewolf", he promised to target the?networks that transport migrants from the border and to their destination, as well any points of support for migrants in Latvia. Kulbergs stated that if everything went according to plan we were 'confident' we would?already?deal a serious enough?blow to the system. "I want the organizers to know that everything will come to an end." Kulbergs said last month that the situation with migrants was a hybrid threat, which had led Latvia to double its number of border guards. The government of Latvia said that it would 'cooperate' with its neighbours Estonia and Lithuania to stop the influx of migrants. In July, Lithuania reported that it had found a tunnel migrants used to enter Belarus. (Reporting and editing by Terje Solsvik, Timothy Heritage)
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Gulf Stocks Fall on Fading Prospects of US-Iran Deal
Gulf stock markets closed lower on Tuesday, as?hopes dwindled that a U.S. and Iran agreement would be reached to end the conflict and allow shipping through?the Strait of?Hormuz. Tensions escalated following a?U.S. President Donald Trump responded to Iran's peace proposal by demanding compensation for American loss resulting from previous wars, attacks and demonstrations. This stance is likely to complicate diplomatic efforts. Trump said that the United States had cleared the Strait of Hormuz of Iranian mines, and thus secured the Strait. Saudi Arabia's benchmark stock index fell 0.1%. The country's largest lender, Saudi National Bank, lost 0.8%. Adding to regional concerns, ?oil major Saudi Aramco postponed the restart of ?its 400,000-barrel-per-day Jazan refinery to ?August 30, following the Houthis' claim of carrying out two attacks on the facility on Sunday. Aramco's shares rose 0.5%. Brent crude futures were up $1.4, or 1.6% to $89.12 per barrel at 0701 GMT. Dubai's main share index fell 0.5% due to a 2.5% drop in the top lender Emirates NBD. In Abu Dhabi, the index fell 0.3% due to a 0.8% drop in 'ADNOC Gas. ADNOC Logistics & Services, on the other hand gained 2% following a 300% increase in the second-quarter profits. The strong performance was attributed to higher?charter rates for shipping and record-breaking?operational activities. Qatar National Bank, the largest lender in the Gulf, fell 1.2%.
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Drone attack in Voronezh, Russia kills a man and sets warehouses on fire
Alexander Gusev said that a drone attack killed a person and injured two others overnight in the Voronezh region of 'Russia. Gusev, a Telegram user, said that Russia's air defense units destroyed 15 drones in the area of Voronezh. "A drone crashed caused fires in two warehouses of a large company. The fire at one warehouse has been contained within an area of 16 square meters. At the other, a fire covering 20,000 square metres is currently being put out. "Emergency Services are on the scene," said?the governor. He didn't identify the company that was affected. On?Tuesday?, Russian online retailer Wildberries announced that its logistic?facilities? in the Voronezh?region? had been?evacuated in accordance with safety? requirements.
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The Washington Post reported that Trump secretly flew from Turkey to Iran due to the threat.
The Washington Post reported that U.S. president Donald Trump took a secret military flight out of Turkey last month, when the White House announced he would be flying on Air Force One. This was an extraordinary move, prompted by an Iranian threat to assassinate him. Trump used the older Air Force One to leave the country after he had flown the newly renovated Qatari-donated jet. This raised questions about its security. It was the first time the plane had flown internationally. The rapid upgrades raised questions about its security and cost, as well as the escalating hostilities with Iran. Trump announced on Truth Social, that he was using an older baby-blue Air Force One to RAF Mildenhall (Britain) "for old times sake", while the new aircraft stayed at the same base for U.S. military personnel stationed there to tour the aircraft. The Post cited a U.S. Official familiar with the operation as well as corroborating materials it reviewed. The Post reported that the deception operation had been triggered by an actual credible threat against Trump. In 2000, President Bill Clinton had used an unmarked executive plane to fly into Pakistan and sent a dummy Air Force One. In?this instance, journalists who believed they were traveling on Air Force One with Trump, an older model that was used to fool them, reported being told to keep the window shades closed in the press cabin. The Post reported that in addition to reporters, White House staff believed the president was aboard. Later, when reporters asked why they kept their shades closed during the flight Trump replied that they were "probably" on a dangerous plane. He continued: "But if you go, I'll go." Right?" The Post reported that the C-32A with Trump on board flew to Britain and arrived at 10:20 pm. Air Force One, along with media, arrived minutes later. The paper reported that it was not clear how Trump had been moved from the C-32A to the older Air Force?One. The traveling press pool of Trump?reported that he descended the steps of the older Air Force One around 10:56 pm local time. He did not approach the press to speak with them, but he gave a peace signal. Then he spent time with servicemen before stepping onto the plane donated by Qatar. The White House responded to a question about a secret flight in a third aircraft with a statement by Communications Director Steve Cheung. He said the Qatari jet had been "fitted with high level security protocols" that ensured the "safety of President Obama and his staff." Cheung stated, "As President Obama has recently said, there are many enemies who are looking to him and we use all the tools at our disposal in order to counter these threats." The same statement was given to the Post. The Pentagon did no respond immediately to a comment request. (Reporting and editing by Caitlin Weber; Humeyra Pauk, Christian Martinez)
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The Washington Post reported that Trump secretly flew from Turkey to Iran due to the threat.
The Washington Post reported that Donald Trump, prompted by a threat from Iran, took a secret military flight out of Turkey last month, when the White House claimed he was on Air Force One. Trump had taken the newly renovated?Qatari-donated jet for the NATO summit in Ankara, but when he left the country he used an older Air Force One. This move raised questions about the security of the newer aircraft. The first international trip for the new aircraft was to NATO, and it took place at a time when hostilities with Iran, which borders Turkey, were intensifying. The Post cited a U.S. official familiar with the operation and another person familiar with the?president's travel. Officials familiar with the operation, as well as another person who is familiar with?presidential travel, were consulted. The Post reported that the C-32A arrived in Britain at 10:20 pm, with Air Force One arriving a few minutes later. Trump stated on Truth Social that the older blue Air Force One would be used "for old times sake" for the flight from Ankara, Turkey to RAF Mildenhall in Britain. The new aircraft would stop at the same base to allow U.S. military personnel stationed there to tour the aircraft. The White House responded to a question about a secret flight in a third plane with a statement by Communications Director Steve Cheung. He said the jet, which was donated by Qatar, had been equipped with high-level security protocols that ensured the safety of President Obama and his staff. Cheung stated, "As President Obama has recently said, there are many Americans who have their eyes on him. We use every tool available to us to address these threats." The same statement was given to the Post. The Pentagon did no respond immediately to a comment request. (Reporting and editing by Caitlin Weber; Humeyra Pauk, Christian Martinez)
Bousso: The electrification of Europe's ROI will be a decade-long struggle.
Europe is facing a "death Valley" of high energy prices over the next decade, which threatens to erode their industrial base even if they achieve their ambitious plan?to increase electricity consumption by 2040.
The European Commission announced on Friday an Electrification Action Plan aiming to increase electricity's share in final energy consumption from 23% today to 48 % by 2040. An interim reference goal of 32 % by 2030 was set as an initial target.
The strategy aims to accelerate electrification in transport, buildings, and industry. It also tackles one of Europe's largest energy paradoxes - electricity is often more expensive than fossil fuels that policymakers would like consumers and businesses abandon.
The Commission claims that turning Europe into the first "electrocontinent" of the world would drastically reduce fossil fuel consumption, and the EU's energy import bills could be reduced by up to EUR260 billion ($297billion) per year by 2040.
The appeal is clear at a time when the security of energy has become a priority in geopolitics. The challenge is also clear.
Europe is still largely fueled by fossil fuels. Oil, coal and gas account for over 60% of EU's total energy mix. Renewables only make up about one fifth.
Despite the rapid expansion of renewable energy generation on the continent at a cost that is enormous, the continent has made much less progress in electrifying sectors such as transport, industry, and heating.
Even though Europe has been steadily decarbonising its electricity production, electricity still only represents a small percentage of the total energy consumption. The share of electricity consumption in total energy has been around 23% since over a decade.
The disconnect underscores the magnitude of the task that lies ahead. It could very well determine whether the European industry is viable in the coming decade.
MASSIVE VULNERABILITY
The energy crisis that followed Russia’s invasion of Ukraine on a large scale in February 2022 underscored the urgency to accelerate this shift.
Losing abundant Russian pipeline natural gas forced Europe to undergo a costly and painful energy realignment. It had to replace cheaper imports from the east with more expensive liquefied gas imported from global markets.
The effects on industry were profound. The rise in energy prices led to a contraction of industrial activity, as companies from metals to glass to chemicals to fertilisers struggled to compete against rivals from regions that benefitted from cheaper energy.
Europe is still acutely vulnerable to fluctuations in the fossil fuel markets. According to the European Commission's estimates, since the beginning of the Iran War in late February, oil and gas imports have increased by EUR50 billion. This has added fresh pressure on inflation.
The Commission has proposed an extensive package of measures to reduce energy costs. These are aimed at reducing the gap in price between electricity and natural gas.
These include reducing the network charges, introducing smart meters, increasing the affordability of electric vehicles, expanding the charging infrastructure and replacing gas boilers with heat pump systems.
The EU's Emissions Trading System is the flagship policy of the EU on climate change. The reforms proposed would give industries more flexibility to reduce emissions, while also providing financial support for investments in clean technologies and domestic production.
HUGE PRICE TAG
The scale of the investment required is staggering. According to a recent estimate by the Commission, upgrading and expanding Europe’s ageing transmission networks and distribution systems will require approximately EUR1.2 trillion in investment between 2040 and 2040.
Tens of millions more will be needed to fund programmes designed to promote electrification within the transport sector, in industry and in buildings.
There are reasons to be optimistic, though.
According to the International Energy Agency?, Europe spends about EUR60-EUR70 billion on electricity grids every year. This means that reaching the Commission's target for investment would not require an overhaul of current investment trends.
The proposed relaxation of ETS requirements could also unlock additional funding, allowing companies to redirect their capital towards modernising production and infrastructure.
The Commission wants the member states to also dedicate half of ETS revenue to decarbonising their domestic industry. Since 2013, carbon?market revenues have been around EUR260 billion.
Even after all of this, however, the increase in investment still remains daunting.
This is especially true when you consider that European governments are under pressure from both Washington and Russia to increase their defence spending.
Existential Risk
Timing is the biggest issue.
The benefits of the plan will only be realized gradually, even if it survives the forthcoming political battles. This is unlikely given the divergent interests among the 27 members states. It takes years to build grids, charging systems, heat pumps and industrial infrastructure.
The challenge to Europe's competitiveness in the industrial sector, on the other hand, is urgent.
European electricity prices are still more than double those in the U.S., and about 50% higher than China. This leaves energy-intensive industries at a structural disadvantage, even after the decline from the extremes of the energy crisis in 2022.
Europe's energy-intensive industries will need to be competitive with their rivals from Asia and North America for most of the decade. They must also expand electricity-hungry areas such as artificial intelligence and data centres.
This is the unsettling reality that lies at the core of Europe's electrification policy.
Electrifying Africa is not just a climate goal. It has become a necessity for a region that is limited in fossil fuel resources, exposed to geopolitical shocks and faces increasing costs of imported fuel.
It is a question of whether Europe's industry can survive for long enough to reap its benefits.
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(source: Reuters)