Latest News
-
Kenya fuel executives resign as state probes supply chain irregularities
The office of President William Ruto announced on Saturday that senior executives in Kenya's Energy Sector resigned after being accused of manipulating fuel stock data and procuring a 'emergency cargo' at inflated prices. Ruto accepted Mohamed Liban's resignation as principal secretary for Petroleum. The Kenya Pipeline Company also confirmed that Joe Sang had resigned from his position as managing director. According to the?statement, Daniel Kiptoo Bargoria has also resigned as director general of the Energy and Petroleum Regulatory Authority. It said that a formal investigation was launched into alleged irregularities within?Kenya’s petroleum supply chain. The government claimed that the manipulated data had been used to 'justify' the importation of fuel despite existing contracts with Saudi Aramco Trading Fujairah Ltd., Abu Dhabi’s ADNOC Global Trading Ltd. and Emirates National Oil Company Singapore Ltd. All of these companies are fulfilling their contractual obligations. The emergency shipment, it claimed, was overpriced and of poor quality. It also claimed that the rates were significantly higher than what had been agreed in existing agreements. The statement stated that "this appears to have been done in order to exploit rising global prices and public anxieties, thus creating a false impression of an impending shortage." Fuel?supply issues linked to the Iran conflict have affected the global energy market. The statement stated that administrative action was taken against other officials, and?arrests were made by investigative agencies'. The arrestees were not identified. No charges have been filed. Reporting by Humphrey Malolo; Writing by Isaac Anyaogu; Editing by Bate and Ali Williams.
-
Australians are advised to stick to Easter travel despite the fact that hundreds of petrol stations are dry
The fuel shortage in Australia was exacerbated by the Iran war, which left hundreds of petrol stations, mostly rural, without power on Saturday. Chris Bowen, Energy Minister, said on tv that Easter is a time of family and faith. "We encourage everyone to stick to their plans, visit your family and take a vacation, but don't buy more fuel than they need." Australia, which imports about 90% of its fuels, is experiencing localised shortages due to the Middle East conflict, which began its sixth week this Saturday. Some have cancelled their travel plans due to the escalating Middle East conflict. The long holiday weekend is one of Australia's most popular travel times. Bowen said that the nation is able to supply 39 days worth of petrol and 29 days worth of diesel, as well as 30 days worth of jet fuel. Bowen stated that the majority of affected stations were located in rural areas because it was more difficult to replenish the fuel stocks. In a rare speech to the nation this week, Prime Minister Anthony Albanese warned that the economic'shocks' of the Middle East war would last for many months. He also encouraged people to use public transportation. (Reporting from Sydney by Sam McKeith; Editing by William Mallard).
-
Official: Ukraine's attack on Zaporizhzhia cuts off power in parts of the region held by Russia
A Ukrainian military attack on Friday cut off power to Russian-held areas of the Zaporizhzhia region. Emergency crews are working to restore it. There are power outages at some locations in the southern part Zaporizhzhia Region. Yevgeny Belitsky, Russia's appointed governor of Russian controlled areas in?the region said on Telegram that repair work was underway to restore the power. The outages are due to an enemy attack on the energy infrastructure of the?region. Ukrainian media outlets posted video clips showing what they claimed was an attack on an underground substation in Melitopol. The footage showed a large fireball rising over an industrial area. Zaporizhzhia was one of the four Ukrainian'regions' that Moscow annexed by 2022. This happened seven months after its full-scale invasion against its smaller neighbor. Russian forces control just a little more than 70% of the two southern regions Zaporizhzhia, and Kherson. Ukrainian officials claim that Kyiv has retaken some of the regions in recent weeks. Reporting by Ron Popeski, Oleksandr Kozoukhar and Mark Porter
-
Sources: Russian oil terminals attacked by terrorists unable to receive shipments for a second week
According to industry sources, Russia's Baltic oil hubs in Ust-Luga, and Primorsk, are unable to process shipments after a series Ukrainian drone attacks. This has prompted the country's refineries?to 'find alternative routes' for 'export'. At least five attacks on Ust-Luga occurred in a span of 10 days, causing damage to the port infrastructure. Sources claim that the restrictions on exports, as well as disruptions in large refineries, could lead to a drop in oil production in Russia. Since March 22, traders said that refineries have been unable?to deliver diesel fuel for export to Primorsk,?leaving them without their most viable export route. One industry source said that diesel fuel hasn't been accepted at Primorsk since the 22nd of March. They have promised to resume receiving deliveries to the system. Refiners are forced to use more expensive rail routes to reach other export terminals, according traders. In the last week, refineries that normally deliver fuel oil to Ust-Luga considered shipping their shipments to 'Vysotsk' further north on the Gulf of Finland coast or to Taman along the Black Sea Coast. Vysotsk, say?traders, has a lower?handling capability and shipping to Taman requires a larger number of rail cars. This week, Finnish maritime officials said that the number of vessels shipping from?Primorsk or Ust-Luga was down sharply to just "individual ships" as opposed to a weekly average between 40 and 50. Mark Porter (Reporting)
-
Sweden releases oil tanker suspected to be source of oil spill
The Swedish Coast Guard announced on Friday that they had released an oil tanker, believed to be a part of the Russian shadow fleet. They suspect this is what caused a 12 km long oil spill near the island of Gotland. The tanker was believed to be a part of a fleet shadow tankers which Moscow used to fund their four-year conflict against Ukraine. Sweden and other European nations have intensified their efforts to disrupt this fleet. Russia has branded these actions as hostile. Swedish Coast Guard reported that the tanker Flora 1 was captured off Sweden's southern coast. The tanker had been seized by the Swedish Coast Guard off Sweden's?southern coast. MarineTraffic data shows that a ship departed from Primorsk, Russia with an unknown destination. The coast guard has said that the oil spill will not reach shore. The Swedish Prosecution Authority stated that it had interrogated two crew members and informed them of suspicions of environmental crimes. The individuals had not been arrested. The Prosecution Authority stated that "the spill occurred in Sweden's Economic Zone, meaning the investigative actions we can take are limited." We have done the necessary interviews and will not be taking any coercive action 'due to the suspected crime. The authority announced that it had begun?an investigation?into a possible environmental crime. The authority said that it believed the vessel was listed on the EU sanctions, and added?that the flag status of the vessel is unclear. The 'Russian shadow fleet', which consists of old, poorly-insured tankers that evade the sanctions, is a serious security and environmental concern, said Carl-Oskar Bohlin, Swedish Minister for Civil Defence, on X. He specifically mentioned the?Flora 1 as part of his remarks. The government takes the incident very seriously, even if it's not a major spill.
-
Ethiopia announces resolution of debt with China
Ethiopia's Finance Ministry announced on Friday that it had reached an agreement on debt treatment with China, reaffirming both nations' commitment to progress within the G20 Common Framework in order to formalise bilateral deals. Ethiopia is facing mounting legal challenges as bondholders plan to sue the Government following the resistance of bilateral creditors to a preliminary agreement to restructure Ethiopia's $1 billion Eurobond. Ethiopia could be unable to emerge from default on its external debt due to the dispute. In a Facebook post, the finance ministry stated that a resolution was reached at a meeting held in China between?Ethiopian finance ministers and Chinese finance minsters. The discussions included "debt restructure, implementation of existing projects, and financing opportunities" as well as plans to develop a new Bushoftu International Airport. The statement said that the two sides had reached an agreement on debt treatment, and had reaffirmed their commitment?to work constructively within the G20 Common Framework parameters towards signing the?bilateral deal. Ethiopia announced that in 2021 it would restructure its debts under the G20 initiative after its finances had been severely affected by COVID-19 pandemic. The East African nation defaulted in 2023 on its $1 billion Eurobond due to a missed coupon payment of $33 million. Reporting by Nairobi Newsroom; Writing by Elias Biryabarema, Editing by Bate Fels)
-
Trump wants to privatize US airport security operations
On 'Friday, President Donald Trump proposed that the Transportation Security Administration, the federal agency created in the wake of 'the September 11, 2001 attacks, begin the process of privatizing the airport security operations. The White House budget proposes to cut the TSA budget of $52 million. Small airports would be required to enroll in a TSA-funded program that pays for private screeners. TSA employs?about 50 000 federal employees to handle screening in nearly all U.S. Airports. Budget documents stated that airports using the program had shown savings when compared with?federal screen operations. Major U.S. Airports have been experiencing massive disruptions in recent weeks after Transportation Security Administration (TSA) security?officers were not paid since mid-February due to a budget dispute. Trump has not nominated anyone to replace David Pekoske as the Transportation Security Administration's head. He fired him on his first official day and never appointed a successor. The White House demanded funding cuts for the TSA of $247 million last year. They claimed that the TSA had consistently failed audits and implemented intrusive screening methods that violate Americans' dignity and privacy. This budget cut represents a 3-4% reduction in?TSA personnel levels, with the majority of the staff being located at the exit lanes. The remaining 2% is for transportation security officers who are spread out across 435 airports. As air travel has increased in recent years, the Biden administration has increased the size and staff of the TSA. It now has more than 60,000 employees. The TSA screened 904 millions passengers in 2024. This was a record and a 5% rise over 2023.
-
United Airlines introduces tiered fares for premium cabins
United Airlines announced on Friday its plans to "introduce" a new tier-based fare structure in premium cabins this year. United announced that it would offer base, standard, and flexible fare options in the premium cabins of its long-haul international flights, transcontinental U.S. flights, and selected Hawaii flights. These fares will join United's existing basic, flexible, and standard fares for economy cabins. According to the new tier fare structure, customers can choose from a range of benefits, including free seating and extra checked baggage, in the standard category. Tickets in the flexible category, however, are fully refundable, and include all the same benefits as standard tickets. United Airlines announced last month a "broad aircraft and interior overhaul" centered on premium seating. The airline is pushing forward with its long-term plan, despite warnings that oil prices could remain above $100 per barrel until 2027. It also revealed plans to reduce some flights. Since the COVID outbreak, big U.S. airlines have built their business around corporate accounts, loyalty-program participants, and premium travelers. They bet that these customers will be slower to pull back on fares when they rise. United Airlines said that it would launch the new categories this month in certain markets and expand them to include additional long-haul flights, transcontinental U.S. flights and longer Hawaii routes later this year. Andrew Nocella said that the new tiered options would give customers greater choice, and allow them to find a fare with the benefits they desire - whether it's great value, extra perks or maximum flexibility. (Reporting and editing by Alison Williams in Bengaluru, Sneha S. K. in Bengaluru)
The US Permian oil is becoming lighter and this could cause it to lose favor with refiners
The West Texas Midland crude, the oil that made the U.S. the world's largest producer of oil, is becoming lighter. This could make the crude less attractive to refiners.
The super-light crudes will have to be blended into heavier grades in order to produce gasoline, diesel fuel and jet fuel. Demand for WTI Midland could be reduced by a lack of heavy crude or high prices. The global Brent benchmark, of which WTI is now a part, could see its prices fall.
Its low sulfur content and similarity to other benchmark grades have made the U.S. flagship crude a favorite among refineries in Asia, Europe and beyond.
Brent is a grouping of North Sea grades that are used to price more than 75% of all crude oil in the world.
The Permian Basin in west Texas and New Mexico has been producing lighter crude. Sources who refused to identify themselves because the data was confidential said that recent testing showed the oil's density or gravity is between 41-44 degrees.
WTI Midland crude has historically had a gravity between 38 and 42 degrees. The higher the number the lighter the crude oil.
As they move from the first tier of production to second tier, shale producers pump lighter oil. These wells produce more natural gas and crude oil is moving into lighter territory.
In general, lighter crudes are more valuable than heavier ones, but refineries have been designed for certain densities and not usually super-light crude. Refiners are looking for crudes that will deliver the highest margins with their existing equipment. To run lighter crudes at a profit, units would need to invest in new equipment.
When refined, lighter crude produces more naphtha for petrochemical feedstocks and less diesel or jet fuel. Refining towers that are not designed to handle high volumes of naphtha may have to be modified to accommodate higher volumes. This may force refiners to reduce the amount of crude they use.
Viktor Katona, Kpler's lead crude analyst, said that if crude were lighter, hydrocrackers - units which break down heavy molecules using high heat and pressure - would not be used as much. Reformer units that turn naphtha to a component in finished gasoline would have to work harder.
Hydrocrackers, while more expensive to operate, produce diesel and jet fuel with higher margins that refiners want to sell.
Katona said that no one had the money to build the new refinery. "One would have to reconfigure it, build completely different unit, bigger units for lighter distillates like naphtha, smaller units for middle distilates like diesel, and no one has the funds for that."
As more people are working from home, the demand for gasoline is expected to increase.
Adopt electric vehicles
Sources and analysts have said that refiners do not want to invest large amounts of money in their plants.
Two to Tango
Rommel Oates is the founder of Refinery Calculator, a software company that specializes in refining. He said: "Refiners must blend it (lighter WTI Middle) to make it heavier and more aligned to processing units they have invested in."
Analysts said that pipeline companies who buy crude from shale producers may also blend it with other grades, such as West Texas Sour, to meet export specifications.
Katona stated that "WTI's (Midland's) need a partner, a heavy crude, to dance with. Otherwise, you wouldn't want it to be run. But we may reach a point where the heavies become too expensive to blend with WTI.
Cost of mixing crudes may cause a drop in demand for WTI Midland. This would, in turn depress the price for dated Brent unless Platts removed WTI Midland or limited acceptable gravity.
Robert Auers, RBN Energy analyst, said: "A lighter WTI Midland won't do anything but weaken the benchmark since WTI Midland is now slightly less valuable." Dated Brent prices may fall by up to 50 cents per barrel if WTI Midland becomes lighter, Robert Auers added.
Platts (part of S&P Global) currently assesses and publishes prices for WTI Midland, with an API gravity of 40-44 degrees. A spokesperson stated that they monitor the quality and could launch a standard consultation with industry if quality review was required.
Sources said that refiners, pipeline operators, and others are discussing the need for an oil benchmark with a lower gravity. This would allow buyers to distinguish WTI Midland from super light streams of crude. (Reporting from Arathy S. Somasekhar, Houston; additional reporting by Ahmad Ghaddar. Editing by David Gregorio.)
(source: Reuters)