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Singapore's marine fuel prices are higher than other regional countries due to a tighter supply
Trade sources and analysts claim that the supply of low-sulphur fuel in Singapore has been tightened due to reduced refinery output and a decline in sweet crude imports. This has led to higher refuelling prices for shippers. Data showed that spot premiums for fuel oil with a maximum 0.5% sulfur content (VLSFO), also known as fuel oil without sulphur, surpassed $58 per ton in Singapore on Tuesday. This was a record high of over four months. Trade sources reported that bunker fuel premiums in Singapore were well over $100 per ton for a prompt delivery. The U.S. - Iran war has led to a global increase in marine fuel prices. Emril Jamil is a senior research manager with Kpler. He said that the current price strength will likely continue into September, as low-sulphur blend components and heavy sweet crude arrivals are limited. Marine fuels can be blended to meet specific specifications. Some heavy-sweet crudes are used from countries such as Sudan, Brazil and Australia. Kpler data shows that the total amount of heavy low-sulphur oil arriving in Singapore and Malaysia in July was 475,000 tonnes, down from 663,00 tons in June. Arrivals in August are estimated to be 428,000 tons. Jamil said that, "given the current anxiety about crude oil supply, more barrels will be absorbed by the refinery instead of being blended with low-sulphur fuel." Trade sources and analysts reported that refineries prioritized the production of other transportation fuels which have higher margins. June Goh is a senior oil market analyst at Sparta Commodities. She said that refineries would have more difficulty producing VLSFO. The crude shortage is real, as we move into September processing. Medium crude resupply options in Asia are becoming limited. SINGAPORE PRICES ABOVE OTHER PORTS IN ASIAN In recent weeks, the?tighter VLSFO expectations has led to a rise in marine fuel prices in Singapore. They are now higher than other Asian ports. Trade sources claim that for prompt dates, the cost of refueling ships with VLSFO at Singapore is $50 higher per metric ton than China ports such as?Zhoushan or Shanghai. Sources confirmed that VLSFO sold at other ports in the region, such as Hong Kong, South Korea, and Tokyo, was also cheaper than Singapore. An official from a shipping firm said that while ships are unlikely to divert to China to buy bunkers at lower prices, they will attempt to take in more bunkers at Zhoushan when already there. Fuel trading manager predicts that the overall demand for marine fuel will soften, as shipowners become more cautious in their purchases due to high premiums throughout Asia ports.
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Jetstar Australia will charge for bags that are carried in overhead bins
Jetstar, Australia's budget airline, is re-evaluating its cabin baggage policy and will charge passengers extra if they want to store their carry-on luggage in overhead compartments. This change will take place from February. According to airline examples, the 'carrier' will allow a bag that fits under the seat, like a laptop bag, a handbag or a backpack. A larger bag, however, could cost up to A$52 per flight, depending on the route. Jetstar now has a carry-on bag policy that is more in line with other low-cost carriers around the world. These airlines charge for overhead storage space, but include a small under-seat luggage as part of their base fares. Pre-purchased "Priority carry-on" will allow passengers to purchase additional carry-on luggage. This includes a larger overhead locker bag, early boarding and the removal of the 7-kg (15 pound) weight restriction. Low-cost airlines are increasingly reliant on fees for excess baggage, priority boarding, and seat selection. Some consumer groups have criticized the charges, arguing that base fares advertised do not always reflect all costs. The airline stated that the changes were made after extensive research by both customers and crew, which found that bag weigh-ins and the competition for space in overhead lockers are among the most stressful aspects of airport experiences. Jetstar CEO Stephanie Tully stated that the new model will 'improve on-time departure performances by streamlining the board process and making better use over-head locker space. She added that the changes are consistent with the airline's low-fares policy. She said that you only pay for what you use. Traveling with less means you'll be paying less and you can add more later if necessary. (1 Australian dollar = 1.4182 dollars) (Reporting and editing by Jamie Freed in Sydney)
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Report finds that Southern California Edison tower caused the devastating Eaton fire in LA County.
Fire investigators found that electrical sparks from a Southern California Edison transmission tower out of service caused the 2025 wildfire, which killed 19 people and destroyed thousands homes near Los Angeles. The findings, published in a 55 page report by the Los Angeles County Fire Department, could have major legal implications for the utility company, owned and operated by Edison International. It faces potential liability claims of billions of dollar arising from the fire, also known as the Eaton Fire. The report notes that other factors, such as fierce winds at the time of the fire, contributed to the conflagration on January 7, 2025. However, it points out the electrical arcing captured by video footage from an Edison transmission mast, which was the only cause and origin for the fire. The report stated that two "electrical events" occurred quickly, causing "unknown material" to fall from the tower, igniting in 12 seconds. Edison has not yet disputed or accepted the findings of this report. A spokesperson for SoCal Edison said: "We've seen the report and are reviewing it." She added, "At SoCal Edison we have taken the potential role we may have played in this fire very seriously since the beginning." In October 2025 the company created a special fund for compensation to "accelerate payments" in the event of death claims, damage to property and smoke damages resulting from the Eaton Fire, which devastated the suburbs of LA, Altadena, and destroyed more than 9,400 homes. The fire burned more than 14,000 acres. Edison's voluntary funds has paid out more than 2,400 claims to date. In response to lawsuits filed by?property owner and the U.S. Government over the Eaton?fire, the utility publicly acknowledged that it's equipment was likely associated with the ignition of the fire. DOUBLE FIRE CALAMITY Edison has also sued LA County, Southern California Gas, and other agencies, alleging that they are all responsible for the magnitude and severity of this disaster. Twelve people were killed in the Eaton fire, which occurred at the same time as another wind-driven catastrophe that erupted about 30 miles west on 7 January. Investigators have determined that the Palisades Fire was caused by a smaller fire which was intentionally started six days earlier. The Palisades Fire was suppressed quickly but remained smoldering for almost a week in dense brush before re-igniting with heavy winds. Jonathan Rinderknecht, 30, was charged with three federal arson offenses in June. However, the judge declared that a mistrial had occurred after the jury failed to reach an unanimous verdict and deadlocked at 10-2. The prosecution said that they would request a new trial in the case. The Eaton and Palisades fires, taken together, are the deadliest wildfire disaster in Los Angeles County's history. They surpass the Griffith Park Fire of 1933, which claimed 29 lives. The Journal of the American Medical Association published a study last year that estimated 440 "excess" deaths were caused by the two fires. The study used statistical models to include factors such as the increased exposure of heart and lung disease patients to smoke and toxic substances released by fires as well as the healthcare delays and disruptions caused. The twin fires are considered one of the costliest natural disasters to have ever struck the United States. Southern California Edison offered $1 billion in self-insurance to its customers for Eaton claims a year earlier. Losses above that amount can be reimbursed by California's Wildfire Insurance Fund. It has an estimated $22 Billion. Steve Gorman, Los Angeles (Writing and reporting; Anjana Anil in Bengaluru and Katha Kaalia in Bengaluru providing additional reporting; editing by Nick Zieminski, Sam Holmes).
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LATAM Airlines raises its earnings forecast for 2026 as fuel prices ease
LATAM Airlines increased its full-year 'core earnings' forecast on Tuesday, after improving fuel prices expectations. The 'carrier' said that it expects adjusted earnings before interest taxes, depreciation, and amortization (EBITDA), in?2026, to be between $4.1 billion and $4.4 billion. This is up from $3.8 billion to $4 billion it predicted in May. Latin America's biggest airline estimated a capacity increase of between 9% and 10% for this year. Chief Financial Officer Ricardo Bottas stated that LATAM is benefiting from an improved fuel price outlook compared to the one assumed three month ago after conflict in Middle East disrupted crude oil flows, causing jet fuel prices to soar. Bottas stated that "we are updating our (price scenario) to around $150 per barrel for the third quarter, instead of $170 and $130 for fourth quarter instead $150." He said that although fuel prices are still well above the pre-conflict assumption of $90 per barrel, the improvements in the outlook justified an upgrade. Bottas stated that the second half of the year would be a challenge due to the uncertainty around the geopolitical environment. However, he added that LATAM is increasingly confident about a gradual improvement in the operating environment as well as its business model. He said, "There was a testing and we passed it." LATAM forecasted an adjusted EBITDA range of $4.2 to $4.6 billion in December before the conflict. Q2 RESULTS LATAM announced a second-quarter net loss of $125.2 million. This is down from the $241.6 million reported a year ago. Revenue increased by 27%, to $4.12 billion. Passenger traffic was the primary driver of growth but cargo also contributed to the increase. Fuel costs almost doubled compared to a year ago, with the airline facing what Bottas described as more than $800 million additional fuel expenses within a single quarter. He said, "That's the magnitude of challenge we faced in this period." EMBRAER - E2 EXPANSION IN BRAZIL LATAM also announced that it will begin operating Embraer E195-E2 aircraft in Brazil between 2026 and 2027, on 42 routes. LATAM Brazil's Jerome Cadier said the aircraft will support expansion into markets with strong corporate demand. This includes agribusiness, oil-producing areas, and strengthening connectivity via the carrier hubs. Cadier stated that the company had already evaluated 18 possible destinations for future expansion by April 2027. (Reporting and editing by Gabriel Araujo, Kylie Madry)
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Families of victims of massive Lebanon port explosion still waiting for justice six years after the blast
Lebanon marked Tuesday the sixth anniversary of a deadly explosion at Beirut's?port. Both victims and Lebanese authorities expressed a cautious but renewed hope that justice would be served for one of the largest non-nuclear blasts in history. It was believed that hundreds of tons ammonium-nitrate, stored at the port, were responsible for the explosion on?August?4, 2020. This explosion killed over 200 people and ravaged large areas of the capital. Years of political interference stymied an investigation into which officials might be considered negligent and the chemical substances involved. Former ministers and judicial officials would raise legal challenges against the judges who were investigating the case, effectively paralysing the investigation. In a normal country, we would be finished by now, and in a new phase of our life. We'd also have the right to mourn," said Paul Naggear whose daughter Alexandra, nicknamed Lexou, was killed in this blast. Lexou's death has no worth when there is no justice. A PROBE could lead to the arrest of 70 people for a blasphemy In early 2025 President Joseph Aoun, and Prime Minister Nawaf Salam?took over and promised to hold the perpetrators accountable for the explosion. Tarek Bitar resumed his investigation and presented an investigative report to the public prosecution's office in late March 2026. According to a senior official of the Lebanese judiciary who was briefed about the investigation, Bitar's report includes accusations against 70 people for different offenses related to the explosion. To protect the judicial system, this official was not able to provide any further information. The official stated that Bitar would prepare a public accusation after receiving a response by the public prosecutor. This will include names of the accused and initiate the trial process. Hundreds gathered on Tuesday evening at a memorial near the port. Organizers read the names of the victims and survivors shared their stories. Many of the attendees said that they hoped the perpetrators would have been sentenced to prison by the 7th anniversary?of the explosion. Some remained sceptical that the state would deliver justice. Reine Abbas said she has always participated in the annual memorial marches, but that numbers have been declining year after year. "The number of families of victims is decreasing and that's proof there's no trust." Abbas stated that he would not trust a situation where he didn't see even?one person behind bars. On Tuesday morning, Justice Minister Adel Nassar of Lebanon laid a wreath on a memorial in the port. The state and judiciary let this case go all the way to the end. "This is a must for those who are affected, the families of the victims and the Lebanese," Nassar said. "We can't say that there is a judicial system (in Lebanon) when we remain silent on a tragedy as large as the Beirut Port blast."
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Indian Minister: Projectile sinks Indian vessel near Yemeni waters, but all seafarers are safe
In a Tuesday post on X, India's Shipping Minister Sarbananda said that a projectile hit a vessel flying the Indian flag near Yemen, causing a capsize. All 14 seafarers were rescued. Sonowal stated that the crew, which included 13 Indians, were rescued by Yemeni Coast Guards and brought to the Port of Mokha after the MSV Faize Noore Oliya sank into the Red Sea. Yemen's Transportation?Ministry, a part of the Saudi-backed and internationally recognised 'government', has accused Yemen's Iran aligned 'Houthis' of carrying out an attack using a boat laden with explosives. The group did not comment. The Houthis have disrupted Red Sea traffic off the coasts of?Yemen, as they want to blockade Saudi oil exports and expand the U.S.Iran conflict that has already choked the oil supply?throughout the Strait?of Hormuz. The Indian Foreign Ministry confirmed that it was coordinating with Yemeni officials. Since the Houthi attack on several Saudi tankers, Indian?refiners are now importing cargoes from the Middle East.
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A plane tyre bursts at Cape Town Airport, disrupting flights
A tyre on an 'airplane burst during landing at the 'Cape Town International Airport? on Tuesday afternoon. This caused flight disruptions, as the main runway had to be closed. All passengers were able to disembark the plane without incident. South 'Africa's Airports Management Company said that the 'Kenya Airways aircraft was disabled on the main runway for several hours, before the runway reopened and flights resumed. Prior to this, flights into Cape Town were diverted to another airport and international departures had been put on hold. Airports Company South Africa stated in a statement that some flights could still be delayed until operations return to normal. Kenya Airways posted on X in a 'post' that their engineers and technical staff were working to fix the plane. Cape Town is one of the most popular tourist cities in South Africa, and its international airport is the second busiest.
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Petrobras suspends study for $1 billion gas pipe in Brazil amid regulatory uncertainty
Sources have told us that Brazil's Petrobras has reassessed a major investment in natural gas infrastructure in Brazil due to a lack of clarity over a government proposal which could impact Equinor's project. Three sources said that Petrobras was prompted by the proposal to halt studies on a proposed $1 billion gas pipeline in Sergipe, a state located in northeastern Brazil. A source in the industry said that the Raia project of Equinor in the Campos Basin could be affected if the program were to become law. The project is expected to begin operating in 2028. In order to boost competition and lower prices, the Brazilian energy regulator ANP will be discussing the?government proposal on Friday. It would require large producers to auction off a portion of their gas to third parties. ANP will reveal the details of its draft regulation on Friday. The regulatory body will then 'open a consultation period with stakeholders', and vote afterward. After a final version has been reached, implementation could begin as early as next year. Who would approve a pipeline investment of $1 billion without the assurance that their rights will be protected? A source who asked to remain anonymous because the discussion is sensitive said. Petrobras has not responded to a comment request. Equinor stated that regulatory predictability and stability are essential to?investments which require billions of dollars, and development timelines over a decade. Petrobras' pipeline will transport gas from the two floating production units planned in Sergipe, to the shore. Petrobras estimates that the units will process?22 millions cubic?meters per day of gas, and 240,000 barrels oil each day. First oil is expected to be produced in 2030. Equinor’s Raia project includes a pipeline from Macae, Rio de Janeiro, to produce 16 million cubic metres of gas each day. This will meet approximately 15% of Brazilian demand. The Luiz Inacio Lula da Silva administration has made it a priority to keep gas prices as low as possible for consumers and industries. Sources said that the proposal wouldn't increase gas supply overall, but rather would redistribute volume among market participants and create uncertainty about project returns. Reporting by Rodrigo Viga Gaier, Marta Nogueira and Fabio Teixeira.
Maguire: The hydro-boom in Turkey helps to extend Europe's gas shortage.
Turkey's energy producers have gained an unexpected advantage: water.
Hydroelectric production has soared, allowing utilities to reduce natural gas consumption by over 75% from January to May. This has led to significant reductions in power sector emissions and reduced the reliance on imported fuel.
The shift has been dramatic. According to Ember's data, between January and May, the hydro output increased by nearly 60% compared to a year ago, while gas-fired production dropped more than 40%.
The surge in hydro power generation, along with a record solar and wind output enabled 'clean energy sources' to account for over 60% of Turkey’s electricity mix, for the first time. This marks a significant energy transition milestone for t he fast-growing Turkish economy.
The consequences of the coup extend beyond Turkey's borders.
According to the Energy Institute's report, Turkey is Europe's fourth largest gas consumer. This pullback in demand reinforces a regional trend that sees a decline in gas consumption and reliance on renewable energy.
Turkey's lower use of gas has allowed it to inject more into storage facilities rather than burning it in power stations, helping to limit Europe’s overall gas inventory drawdown in 2026.
HYDRO TAKING CENTER STAGE
This year, the Turkish power system has been dominated by a resurgence in hydropower.
The hydro generation during January-May totaled 46.33 Terawatt Hours (TWh), the highest ever recorded for this period. This is up from 29.03TWh in the same period of 2025. That's a gain?of almost 60% or 17.3TWh.
This increase was almost as much as Turkey's total electricity generated by gas from January to May (17.48TWh). It shows the impact of the surge in hydroelectricity on the Turkish power system.
In the first five months of this year, hydro output was higher than that of coal and natural gas. This makes water the largest power source in Turkey.
Hydro's share in total electricity supplied by utilities grew to 33.2%, up from 20.8% one year ago. This is the highest level since January-May 2020.
The dam operators were able to maximize production despite the increasing demand for electricity, thanks to the favorable weather conditions and high reservoir levels.
The total electricity generated in Turkey from January to May was a record-breaking 142.44 TWh, up from 140.88TWh one year ago. This means that Turkey produced more power while simultaneously reducing fossil fuel use.
GAS SETBACK
Natural gas has been the principal victim of?the hydroboom.
The gas-fired generation dropped to 17.48 TWh from 29.42 a year ago, a 40.6% decline. Gas's share in total generation fell from 20,7% to 11,9%, a record low.
According to Ember data, in absolute terms, the gas generation has fallen by 12?TWh compared to the previous year. This is the biggest year-to date decline for at least seven consecutive years.
The fall was most pronounced in the spring when hydro production soared.
The average gas-fired generation was about 2 TWh per month between March and May, compared to more than 4TWh for several months during the same period in last year.
The coal generators are also being squeezed.
The coal-fired production fell 16.1% on an annual basis to 38.14 TWh. This is the lowest output in over a decade.
CLEAN POWER MILESTONE
Hydro is not acting alone.
Turkey's wind power generation increased from 14.95 to 17.97 TWh between January and May, whereas solar energy production increased from 13.31 to 13.98.
Hydro, wind, and solar combined to produce 86.25 GWh of clean electricity, compared with 65.52 GWh one year ago. Clean sources provided 61.2% all electricity compared to 46.8% in the same period of 2025.
The fossil-fuel production fell more than 25% to 56.19TWh, down from 75.36TWh.
The impact on the environment of the drastic cuts in fossil fuel generation is substantial. The power sector's emissions from fossil fuels have fallen by more than 21% to 47.91 metric tons CO2 equivalent, down from 61.01 metric tons the year before.
Storage BOost
The lower gas consumption has also created another benefit: more fuel for storage.
Turkey is able to store additional gas underground instead of using large amounts of imported gas for power plants.
According to LSEG, the year-to-date injections of storage have reportedly been 18% higher than last year's levels. This is a significant development, especially at a moment when Europe is working hard to replenish its inventories following a strong withdrawal season.
By storing gas in Turkey, Turkey reduced the pressure on the European gas system as a whole and helped to limit the inventory drawsdowns throughout the region.
This could be as significant as the decline of power-sector gas use.
Turkey is a transit and consumption market, so any changes in the gas balance will have a greater impact on regional supply dynamics.
BROADER TREND
The experience of the Turkish people is also part of a larger story that's unfolding in Europe.
Renewables continue to reduce the role of gas in electricity generation across the region whenever weather conditions are favorable.
European policymakers spent years trying reduce exposure to volatile imported gases through increased renewable deployment, efficiency improvements and electrification.
The gas consumption in Europe is still well below the pre-crisis level despite periodic increases tied to weather conditions and electricity demand.
The transformation of Turkey's power sector to hydro-led is one of the most obvious examples of this trend by 2026.
Turkey's gas demand has decreased, but total electricity production?has increased.
This suggests switching fuels rather than demanding destruction.
This is perhaps the most encouraging sign for a continent that still tries to reduce its dependence on imported gas.
These are the opinions of the columnist, who is also an author. This column is great! Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
(source: Reuters)