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Oil falls as US crude inventories rise despite Saudi supply concerns
Investors assessed the?risks of supply after Saudi Arabia suspended oil loadings in its Yanbu port after a?attack against its East-West pipeline to the Red Sea. Brent crude 'futures' fell 93 cents or 0.86% to $107.82 a bar at 0028 GMT. U.S. West Texas intermediate futures were also down 97 cents or 0.92% at $104.86 a bar. The Yanbu loading suspension has sparked supply concerns, and Saudi Arabia has cut oil shipments into Europe. Market sources reported on Tuesday that the American Petroleum Institute's data showed that U.S. crude, gasoline, and distillate inventories rose all over last week. API data cited by sources showed that crude inventories increased by 7.1m barrels in the week ending September 11. This was compared to analysts' expectations of a draw down of about 1.6 million barrels according to a survey. API data revealed unexpected increases in gasoline and diesel inventories, which have affected prices. However, Haitong Futures stated in a report that regional stock builds do not alter the tightness of the global crude oil market. On Tuesday, sources said that oil loadings had been suspended at the Yanbu port in Saudi Arabia after the world's largest crude exporter closed its East-West pipe following an attack on Yemen's Iran aligned Houthis last Friday. Saudi Arabia has used the pipeline for rerouting around 4 million barrels a day or about 4% global supply to the Red Sea Port. According to the U.S. energy secretary, crude oil should be flowing again through Saudi Arabia's East-West pipeline within days. Sources?who were consulted gave differing estimates as to how long the pipeline might be offline. One source said that repairs could take up to six weeks. Another said that the pipeline could be partially pumped sooner as repairs continue. The National Oil Corporation in Libya said that operations at three oilfields were suspended, but not because of the conflict with Iran. Instead, protesting members from the Petroleum Facilities Guard closed a valve to the Hamada Zawiya crude pipeline. Massoud Suleman, Chairman of the NOC, said that Libya's oil output has not been affected significantly by the shutdowns. It is still at 1.4 million barrels a day.
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Heathrow expansion is not compatible with UK climate targets unless airlines do something more, say advisers
The UK cannot meet its climate goals and expand Heathrow Airport in London unless the airlines take full responsibility for all their emissions, said Wednesday's climate advisors. Last year, the British Labour government backed the construction of a third runway in?Heathrow Airport, one the busiest airports in the world, claiming that the project would boost economic growth. The Climate Change Committee (CCC) published an advisory on Wednesday at the request of the government, concluding that there is no plausible path under current policies to allow Heathrow expansion while Britain meets its goal of "achieving net zero emissions by 2020". Nigel Topping, CCC chair, said that the government could not expand Heathrow Airport without requiring that the aviation industry clean up their emissions. The committee recommended that the government introduce legislation to require the industry to reduce all its emissions by the year 2050. This could be done by increasing the use sustainable aviation fuel or by introducing "engineered carbon-removal credit". In 2021, airlines agreed to target zero emissions by 2050. They will rely primarily on a gradual switch to SAF. SAF is used for less than 1 percent of the world's aviation fuel and costs more than conventional jet-fuel. Some airlines have invested in carbon removals, such as direct air capture, which removes CO2 from the atmosphere. However, less than 2 million tons have been removed globally to date. The committee called on the government to "produce a 25 year strategy for net zero?aviation", phase in all costs of decarbonisation to airlines, and prepare contingency planning in case key technologies do not scale up as expected.
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Fuel prices are a concern for Norfolk Southern in the third quarter, despite gains in freight share.
Norfolk Southern executives told investors on Tuesday at the Morgan Stanley conference that higher fuel prices will 'create a significant headwind for the third quarter. CFO Jason Zampi stated that fuel prices were expected to peak in May. However, continued increases now represent a roughly 250-basis point headwind for Norfolk Southern's Operating?ratio when compared to expectations two months earlier. He said that the third-quarter performance is expected to be slightly lower than normal seasonal trends. Executives see continued incremental gains in freight market share, even with the current fuel pressure. Norfolk Southern's next big opportunity to move freight from highways onto rail is during the next year's bidding season for intermodal contracts. Zampi stated that customers have "mostly passed" tariff uncertainty. He described?tariffs?as a one-time event which no longer appears to be having a significant influence on markets like automotive. He said the Middle East conflict remains a greater concern due to its 'impact on fuel costs and global shipping routes. The executives stated that, in regards to the proposed merger between Union Pacific and BNSF Railways, the regulatory review was "moving in line" with expectations. They also noted that the current timeline provides greater transparency into the process.
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Canada's airports are expected to attract a large amount of investment from pension funds at home.
The Canadian Transport Minister said that he expected a'strong interest' from Canadian pension funds and possibly Australians as well, when the country opened its four biggest airports for private investment. In an interview, Transport Minister Steven MacKinnon said: "We expect a very strong Canadian participation in these concession agreements." The Canadian investors have proven over time that they are very adept at investing in other jurisdictions. Mark Carney, the Canadian Prime Minister, said earlier that his government is seeking private investment via long-term concessions for airports to be operated in Toronto, Montreal?Vancouver?and Calgary as part a campaign to stimulate the economy. The move will not allow for a sale or a change in the public ownership. Carney stated that investors did not need to be "strictly Canadian" and there would be competition. MacKinnon said that foreign investment approvals, and national security testing would be included in any deal. Infrastructure companies are investing billions in airport terminals, as they see a strong demand for air travel in the future. This includes countries such as Australia and the United States. Macquarie Asset Management of Australia, which invested in a new terminal airport south of Montreal, believes that Canada's infrastructure for transportation has "significant potential" to attract further investment, according to Karl Kuchel. He is the head of Infrastructure in the Americas at the company. The opportunities in the transport sector "have been limited in recent times compared to other infrastructure sectors," Kuchel said. Both La Caisse, a Canadian pension fund, and IFM Investors in Australia have said that they see opportunities from this announcement. MacKinnon stated that it is 'fair to say' that Australian investors who are willing to welcome Canadian investments in their country, in infrastructure and other areas would be eligible investors. Carney's proposal has been criticized by labour groups, who claim that private investment has led to increased costs for passengers. Lily Chang is the secretary-treasurer for the Canadian Labour Congress. She said that private investors do not invest billions in airports unless there's a chance they can make back billions. MacKinnon stated that Canada will learn from other countries' experiences. He said, "We're not the first to do this." We'll follow the best practices we've seen in a fair, open process that will certainly allow Canadian investment to be made in these facilities.
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US agency asks Tesla to provide answers on Cybercab certification
The?U.S. The?U.S. NHTSA stated that Tesla was required to answer questions such as whether Tesla used temporary human driver controls, or any other equipment in its certification of compliance. The auto safety regulator announced this month that it would be examining the data and process the EV maker used to demonstrate compliance with federal motor vehicles safety standards prior to deploying the robotaxi. Tesla and other robotaxi firms, including Google's Waymo, have supported plans by the Trump administration to change regulation so that these vehicles don't need to have steering wheels, break pedals, back-view mirrors, or other equipment needed by human drivers. Robotaxi critics are against the change, stating that the rules shouldn't be waived until companies can prove autonomous vehicles to be safe. NHTSA asked Tesla if the "Cybercab" robotaxis could be "driven by a person". Also, if the touchscreen of the vehicle had any controls that would allow occupants to move the vehicle. Tesla is also asked to provide answers on questions such as the maximum speed of the robotaxis, its geographical limitations or restrictions based on time and day. Tesla launched its two-seater Cybercabs commercially in Austin, Texas on September 3. The company said that it would gradually expand this service to other vehicles and locations. NHTSA stated that the Cybercab does not have conventional manual controls such as a steering column, brake pedals, accelerator pedals, or mirrors. In June, the agency suggested that it would end a government requirement for self-driving cars to have manual brake pedals. This move would make it easier for?such vehicles to be deployed on U.S. highways without human controls. NHTSA has also proposed changes to the federal safety standards that would allow autonomous vehicles to be driven without additional driver equipment. Existing standards will remain in place until these are finalized. Tesla didn't immediately respond to a comment request. According to the existing law, self-driving cars do not require NHTSA approval as long as they include steering wheels, pedals for braking, mirrors and other features that are common in human-controlled vehicles. NHTSA has the authority to approve petitions that would allow up to 2,500 vehicles to be operated on U.S. roadways without human controls. NHTSA granted Amazon's Zoox unit a petition in July for the limited commercial deployment its novel steering wheel-free robotaxis. This was a first for autonomous ride industry.
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Ecopetrol accepts board revamp backed by government
The newly-installed government of President Abelardo de La Espriella approved on Tuesday a major reorganization of the board at Colombia's state controlled oil company,?Ecopetrol. This comes as the company is reeling from corruption allegations and yet another senior management shake-up. The current chairman Luis Felipe Henao, Cesar Loza and Ricardo Rodriguez Yee were reappointed as members of the nine-member Board. The new board will decide whether Henao continues as chairman at a future meeting. The new management comes just a day after Ecopetrol announced the departure of?acting CEO Juan Carlos Hurtado by mutual consent, with effect from Tuesday. This announcement extended a period of turmoil for Colombia's largest company. Ecopetrol announced late Monday that Camilo Barco would be taking over as interim CEO. Local media attributed Hurtado’s departure to alleged irregularities with contracting and appointment. Ecopetrol didn't immediately respond to an inquiry for comment about the move. Hurtado was previously the head of hydrocarbons and had been leading the company as an interim leader since April when Ricardo Roa left over allegations of influence peddling, campaign finance violations, and former President Gustavo Petro’s 2022 election campaign. The markets are now waiting for the government to choose a new CEO. Ecopetrol is the largest oil producer in Colombia. The Colombian Government owns 88.49% of it. Ecopetrol also operates Colombia's main refineries, and the majority of its oil and fuel pipe network. Since De La Espriella's appointment in early August, dozens of?Ecopetrol employees have quit or been fired. Ecopetrol is?hit by a series of scandals?involving allegations of corruption and influence-peddling by officials appointed under Petro's government. The people under investigation haven't been convicted.
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Boeing to salvage Turkish Airlines delayed order, sources claim
Four people with knowledge of the matter claim that Boeing is nearing the completion of a delayed order to purchase 150 737 MAX aircraft after Turkish Airlines threatened to walk away from a high-profile contract over a dispute with engine manufacturer CFM. Three people have confirmed that the deal is now on track and could be signed as soon as next week. The agreement, which was part of a package containing 225 jets, had been delayed by a disagreement regarding the airline's demand for a industrial deal on maintenance of engine. Boeing and GE Aerospace's and France Safran's joint-ownership of CFM engine maker CFM declined to comment. Turkish Airlines has not responded to a comment request. Airlines are increasingly forced to negotiate long-term deals for engines at the same time they order new jets due to a recent shortage of supply chains and increasing spares prices. This adds complexity?to high-profile aircraft deals. If the order was confirmed publicly, it would prevent a potentially embarrassing reversal last year of the White House announcement. This is one of several Boeing deals that are associated with?U.S. Two sources, who asked not to be identified, said that the president was involved. Turkish media reported that Trump and Erdogan will'meet again next week to coincide with the United Nations General Assembly meetings in New York. The White House did not immediately comment on whether or not the two leaders will meet. Industry sources claim that the core of the dispute revolves around who should be liable for the costs of long-term repair. Maintenance Plant 'PREMIER Turkish Airlines has a fleet of over 400 Boeing and Airbus aircraft, making it one of the largest airlines in the world. It was only a few weeks after the announcement of the larger Boeing deal that it suddenly?threatened' to switch from the 150 MAX planes in the order to Airbus citing a price dispute with CFM. Sources in the industry later revealed that the airline wanted to establish its own maintenance facility?for the engines that power the 737 MAX, by joining directly the top tier CFM partners. This would give accelerated access to the latest repair technologies. The two sides did not appear to have reached an agreement about the "Premier Maintenance Plant" immediately. Larry Culp, GE Aerospace's CEO, commented on the unusual spat that occurred last October. He compared the airline's threat of cancelling the deal with negotiating "new contracts in public" and said GE's price strategy reflected value to the customer. A senior Turkish Airlines executive said at an industry conference on Monday that the airline continues to consider more aircraft orders to support the rapid expansion?of its Istanbul hub. Okan Bas, Senior Vice-President Finance of the airline, told the International Society of Transport Aircraft Trading meeting that the airline was studying regional jets - such as the Embraer E2 and Airbus A220 - while comparing them to the larger Boeing 777X or Airbus A350-1000. He refused to comment on the Boeing MAX order.
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Enbridge opens the season for a proposed Texas natgas pipeline
Enbridge, a Canadian energy company, announced?that on Tuesday it began a non-binding public season for its proposed West Texas Express gas pipeline. The pipeline would transport gas from the Waha region of the Permian Shale in the west to markets around El Paso. The Permian, located in West Texas and eastern New Mexico, is the largest oil-producing shale region in the United States. The Permian basin, located in West Texas, eastern New Mexico and Pennsylvania, is the second largest gas-producing shale region in the United States. The U.S. Energy Information Administration says that as oil and gas are produced more, pressure within the reservoir decreases. Gas is easier to produce under lower pressures. This increases the ratio of gas to oil. According to EIA, the gas-to-oil (cf/b) ratio has increased steadily over the last five years. It now averages nearly 4,200 cubic foot of gas for every barrel of oil. This is a 16 percent increase from 3,600 cf/b around 2021. To process and transport more gas, pipelines and?energy infrastructure will be needed. Enbridge, who transports 20% of gas in the U.S. said that its proposed West Texas Express project is in response to the growing demand for reliable supplies by proposed 'power generation, utilities and generators, and industrial customers like data centers in West Texas, and markets in Mexico New Mexico and Arizona. West Texas Express will include 150 miles of pipeline with a capacity to transport up to 2 billion cubic feet per day. One billion cubic feet can supply gas to five million U.S. homes for one day. Enbridge stated that it is "targeting" a date of in-service in the fourth quarter 2029, subject to securing enough commercial support and obtaining necessary approvals. The open season, which is not binding, began on September 10 and ends on September 25.
What is known about the German drone attack and the airport that it targeted?
German authorities opened a counterterrorism probe after a drone containing explosives, which was found at the Leipzig/Halle Airport cargo and military logistic hub in what interior minister called a "hybrid attack", was discovered.
The drone was discovered by airport workers in a restricted zone late Tuesday night, causing flight cancellations and the closure of certain parts of the airport.
On Wednesday, German Interior Minister Alexander "Dobrindt" said that the incident had opened up a whole new level of risk.
Here are some details on the drone incident that occurred at Leipzig/Halle Airport this week.
From a World War Two Destrotion Centre to a Logistics Center
The airport was opened in 1927 in Schkeuditz between Leipzig and Halle. The airport was largely destroyed during World War Two by Allied bombing and rebuilt under the Eastern Bloc German Democratic Republic.
After the German reunification of 1990, it became a cargo hub and logistical center, including for NATO.
It is classified as critical infrastructure by the government, which means it requires increased government protection and attention.
A HUB for DHL, LUFTHANSA and AMAZON
With an annual freight volume of around 1.4 millions metric tons, the airport is Germany's second largest cargo hub after Frankfurt.
DHL, the German logistics company, relocated its hub to Leipzig/Halle, Germany in 2008. Today, DHL employs?7,000 people who move 2,500 tons per day of freight and 23,600 flights each year.
The airport's facilities, which include two runways of 3,600 meters (11,811 feet) and large warehouses, attracted major logistics and transport companies, such as Lufthansa and Amazon.
MILITARY ROLE: SUPPORTING NATO'S EASTERN FLANK
Leipzig/Halle, in addition to its commercial activities, is a key logistics hub for both the German military and its NATO partners.
The main base of the Strategic Airlift International Solution (SALIS), which helps deliver equipment to reinforce the eastern flank of the defence pact, is located here.
SALIS has established a company named Antonov Logistics SALIS that flies non-military and military goods for NATO and European Union nations in crisis situations. Antonov Logistics SALIS, based in Leipzig/Halle, is the only organisation that maintains the Antonov An-124-100 - one of the largest cargo aircraft in the world - since Russia's invasion.
WHO IS RESPONSIBLE FOR THE DRONE ACCIDENT? Media reports indicate that this week's drone incident was a close call with a group Ukrainian An-124s.
German media reported that on Thursday, one of these planes carried a payload containing ammunition. However, a senior member of the interior committee of the parliament later confirmed that none of the planes contained weapons or ammunition.
The investigation has been taken over by anti-extremism prosecutors and counterterrorism officers, but the government has not revealed who may have been responsible for the Leipzig/Halle incident.
German officials have in the past blamed Russia for hybrid attacks, which they call incidents of aggression that do not amount to war.
A German newspaper quoted?Roderich Kiesewetter as saying: "I assume that this was a hybrid attack, an attempt at terror, orchestrated by Russia."
The Russian embassy in Berlin has not responded to a request for a comment regarding the drone incident.
What is at stake? Germany and Russia are increasingly at odds over the conflict in Ukraine and accusations of Moscow's interference in other parts of Europe.
European security agencies are investigating a number of incendiary devices that were found in parcels in 2024. This has raised concerns over sabotage against air cargo operators.
Some of the devices have been found in a DHL facility in Leipzig.
German airports are also on high alert following a series unauthorised drone flights at military installations, energy terminals as well as seaports, logistics companies and other sites. Police have suggested that the flights could have been organized by Russian agents.
Russia has denied involvement in 2024 incidents or overflights. (Written by Joe Bavier, edited by Ludwig Burger, Barbara Lewis and Barbara Lewis).
(source: Reuters)