Latest News
-
Russell: Trump's unintended consequences of Canada's crude oil transfer to China are a lesson for him.
If there's a law of unintended effects, a good example would be how the commodity markets have adjusted to the reality and perceived threat of the tariff war started by U.S. president Donald Trump. Trump's trade measures and tariffs have forced commodity producers, buyers, and traders to rethink long-established relations, adapt to new realities, and predict what could happen. It is clear that the commodity markets are adapting not only to the actual measures taken by the Trump Administration, but also the potential future actions. This has led to a desire to reduce exposure to the United States. One example is the seaborne crude oil exports from Canada that have shifted from the United States to China even though Trump has backed off his original plan to impose 10% tariffs on energy imports. The first time in history, Canada exported more crude oil by sea to China than to the United States. This shows how the market can change amid the uncertainty caused by Trump's tariff war. According to commodity analysts Kpler, Canada exported 299,000 barrels of crude oil per day to China in April. This is up from 277,000 barrels in March. The number of seaborne shipments into the United States in April was 286,000 bpd, which is roughly the same as March's 283,000 but lower than the record 431,000 bpd set in September last. The above figures only reflect the oil that is transported by vessel and do not include the much larger amounts of crude imported from Canada via pipelines and rail. Canada has been sending about 4 million barrels per day of crude oil to its southern neighbor via pipelines. While the volumes are steady, the prices have changed in Canada's favor, another unintended result of Trump's chaotic policies. Western Canadian Select crude's discount to U.S. West Texas Intermediate is now at its lowest level in nearly 4-1/2 years, just under $9 per barrel. It was closer to $30 a few months ago. The sanctions that Trump imposed on Venezuelan crude, which is also heavy like Canadian crude, have reduced the amount available to U.S. refining companies. The United States refiners have to pay more because Canadian crude oil is in greater demand. The increasing price of Canadian crude calls into question the notion that Canada is more dependent on the United States. The United States appears to be quite dependent on Canadian crude oil, particularly if Trump has restricted the alternatives by imposing sanctions. SEABORNE SHIFT Canada also appears to have an advantage when it comes seaborne exports. Since the Trans Mountain Pipeline expansion was completed in May of last year, Canada has increased its seaborne crude oil exports. Initially, it was expected that most of the oil would go to refiners in the U.S. West Coast. Canada's oil exports have changed since Trump returned to the White House late in January, and he increased his rhetoric as well as his actions against Canada's northern neighbour and former close ally. Although Trump has now backed off on any tariffs on Canadian energy imports, the damage is done. Canadian oil producers are eager to find alternative markets. Hence, China is the biggest oil consumer in the world. It has been eager to diversify its oil suppliers to reduce its dependence on the OPEC+ exporters. China has effectively stopped importing crude oil from the United States due to the increase in tariffs by Washington and Beijing following Trump's return. China has imposed a 10% tax on U.S. imports of oil, which is enough to make U.S. crude oil uncompetitive for Chinese consumers. Kpler reports that no U.S. crude oil is expected to arrive in China between May and June. China imported 417,000 barrels per day from the United States as recently as last June. The two grades of crude oil are not the same. China's oil trade is dynamic, and it is finding partners like Canada to help. These are the views of the columnist, an author for.
-
WGC-Despite challenges major LNG producers pushes new projects to feed the global demand for power
The producers are pushing forward with their liquefied gas projects. They are banking on the urbanisation of the world and its technology sector, which will drive global demand for power and overcome such challenges as oversupply and rising costs. The LNG fuel is seen by many as a transitional fuel to zero emissions. Energy security is also a priority for governments around the world after Russia's invasion in Ukraine caused gas prices to reach record highs. Tengku Taufik of Malaysian energy company Petronas said at the World Gas Conference that Asia-Pacific economies were "ravenously hungry" for LNG. The proliferation of data centers supporting artificial intelligence (AI), he said, was also driving the demand. The need for reliable baseload energy from conventional sources has also been highlighted by power grid outages. You think that customers will have to wait for a week before they can get electricity? "No way." "They want 24/7 electricity," said Patrick Pouyanne CEO of French giant TotalEnergies. "Even if we build beautiful renewables systems... we need gas-fired plants." Woodside predicts that the demand for LNG will increase by 50% by 2030. Shell anticipates an additional 60% to reach 630-718 millions metric tons per year by 2040. LNG Canada, Corpus Christi LNG Phase 3 and Plaquemines LNG will be the main suppliers of new LNG this year to meet this growing demand. LNG Canada is expected to ship its initial cargo in June. TotalEnergies is pursuing new LNG project in Australia, Woodside Energy of Mexico Pacific LNG, Commonwealth LNG, and Australia's Woodside Energy. TotalEnergies hopes to lift force majeure for its $20 billion Mozambique Gas project by mid-summer and resume construction, Pouyanne stated. The project was stopped in 2021 after an insurgency involving militants linked to the Islamic State swept through the region. RISE IN COSTS Concern over rising costs has dampened producers' optimism about the prospects of the market. TotalEnergies is, for instance, looking to reduce capital expenditure on its Papua New Guinea Project by 20 to 25 percent and expects to make a final investment decision in this year. Woodside Energy is also looking to sell another stake in its Louisiana LNG project. Industry executives warned that the wave projects could lead to an oversupply and lower prices. Ma Yongsheng of Sinopec Corp in China estimated that the new global liquefaction capability would be 420 million tonnes by 2030 – more than twice as much as expected growth in LNG imports worldwide. Andrew Walker, vice-president for LNG strategy at Cheniere Energy, also expects new supply to increase by a third by 2030 to 600 million tones. In order to ensure that LNG demand continues, it is important to have competitive LNG prices, particularly in markets with high price sensitivity, like South and Southeast Asia which are still heavily dependent on coal as a source of power. "We want to make the price affordable." We don't think southwest Asia should switch to coal because the asset will be there for at least 40-60 years. Jack Fusco, CEO of Cheniere, said that it was not good for both the company and for the rest of humanity. (Reporting and writing by Colleen howe and Sam Li, Editing and Tomaszjanowski by Florence Tan)
-
DOGE team to review National Transportation Safety Board Operations
A spokesperson for the NTSB confirmed that Elon Musk’s Department of Government Efficiency initiative recently assigned a review team to the National Transportation Safety Board. DOGE has assigned teams to several independent agencies, and sought to review recently agencies that are part the legislative branch. In early February, the White House dismissed three Democrats from the five-member Consumer Product Safety Commission. This was after a DOGE delegation visited the agency to ask to be detailed. The three commissioners filed a lawsuit on Wednesday to challenge the dismissals. Jennifer Homendy, chair of the NTSB, told reporters that in March it had not suffered any staff losses as a result government job cuts. It was also exempted from DOGE’s buyout offer. Homendy wrote in a letter to Congress dated April 14, "The Trump administration has acknowledged the critical role the NTSB, its staff and the NTSB plays." Homendy stated that the NTSB, which has 400 employees, had submitted a plan of reorganization that included the elimination of 14 positions by regular attrition. As part of the government's sweeping reform, DOGE teams are reviewing leases and staffing contracts as well as financial contracts. The Jan. 29th incident was part of a series of incidents involving aviation safety. Mid-air collision between The NTSB opened numerous safety investigations in recent months after an American Airlines regional plane and a Army chopper that killed 67 victims raised alarm. The NTSB also conducted investigations into high-profile incidents train derailments The collapse of the 2024 collapsed container ship is one of many maritime accidents. Key Bridge in Baltimore The board issued a u Safety recommendations for March The NTSB's workload is typically more than 2,000 investigations per year.
-
US redirects $365 Million Biden Set for Puerto Rico Solar Power
The Trump administration announced on Wednesday that it would redirect $365,000,000 in funding awarded to Puerto Rico during the previous administration for its power grid, towards rooftop solar and battery storage. Puerto Rico has suffered from widespread power outages for years due to its crumbling infrastructure and the bankruptcy of the Puerto Rico Electric Power Authority in 2017. It also had to deal with a series of devastating hurricanes. A month ago it experienced a blackout that affected the entire island, and then another outage that affected 134,000 customers. The Department of Energy stated that the funds will be redirected "to expand access to reliable electricity for millions of people instead of thousands, and generate a greater return on investment for tax payers while advancing grid resilience for Puerto Rico." The Department did not respond immediately to a question about the use of funding in lieu of solar. Last week, Energy Secretary Chris Wright gave an order to Puerto Rico's government-owned utility that it must use electricity generated by oil-burning plants in order to fill the chronic electricity shortages on the island. These power plants emit greenhouse gases and pollution. Solar power projects, which were scheduled to start construction in 2026, received funding in late 2024. The DOE stated that the redirected funds will support emergency and practical fixes, which offer a quicker, more effective way to solve the current crisis. This includes hospitals and community centres, both of which are critical facilities.
-
Reports say that the US has accepted a luxury jet from Qatar as a gift for Trump.
Media outlets in the United States reported that Qatar has given the United States a 747 jetliner and asked its Air Force to find a quick upgrade to use it as a replacement for Air Force One. The New York Times reported that Secretary of Defense Pete Hegseth had accepted the $400-million Boeing jet, and asked the U.S. Air Force how it could be upgraded quickly to serve as President Donald Trump's personal plane. Legal experts have questioned whether the scope of Gift laws From foreign governments that are aiming to stop corruption and improper influences. Democrats They have also tried to stop the transfer. Qatar is a country in the Middle East. Dismiss concerns About the aircraft deal. Trump also dismissed ethical concerns by saying that it would be "stupid", not to accept this jet. Bloomberg, CBS News and CNBC, among other media, reported the deal based on a Pentagon spokesperson. No one from the Department of Defense was available to comment immediately. Qatar's government could not also be reached. (Reporting and additional writing by Susan Heavey, editing by Doina Choiacu and Deepa Babyington; reporting by Katharine Jack)
-
Luxair challenges EU approval for Lufthansa/ITA merger
Luxair, the Luxembourg flag carrier, announced on Wednesday that it has filed a lawsuit before the General Court of the European Union to challenge the European Commission’s approval of the merger of Lufthansa with ITA. Luxair has said it does not object to the merger but that smaller carriers such as Luxair have been marginalized in the allocations of landing slots on the Milan Linate airport. In November, the European Commission approved a set of remedies proposed to the Commission by Lufthansa in order to acquire a minority stake of ITA Airways in Italy, which would allow EasyJet, IAG, and Air France-KLM more routes. After winning EU antitrust approval on July 20, 2024, Lufthansa offered to purchase 41% of ITA, the successor to the bankrupt Alitalia airline, for 325 millions euros ($343.6) in a deal intended to increase its presence in southern Europe. (Reporting and editing by Makini Brrice; GV De Clercq)
-
After a power outage, Spain and Portugal request that the EU push for power connections with France
A letter obtained by revealed that Spain and Portugal asked the European Union (EU) to intervene to encourage the construction of more interconnectors between France and Spain after a major power outage in the Iberian Peninsula occurred last month. Spain and Portugal are only connected to a limited number of power grids in Europe. They claim that France is blocking new interconnections that could prevent power disruptions such as the one that affected the Iberian Peninsula. The strengthening of an existing interconnector that connects France and Spain is expected to be finished this year. A new underwater powerline that spans the Bay of Biscay will be completed in 2028. Spain and Portugal urged Brussels in a letter sent to EU Energy Commissioner Dan Jorgensen on Wednesday, which was seen by, to take action to ensure that new interconnections projects are progressed. The letter signed by the Spanish Energy Minister Sara Aagesen, and the Portuguese Energy Minister Maria da Graca Carvalho, stated that "a firm commitment at all levels is required to ensure the rapid and effective integration into the EU's energy system of the Iberian Peninsula." The letter stated that "Spain, Portugal and France propose a meeting of ministers during this year, where we, along with France and the Commission can agree on a road map with specific milestones, and steps to take." Un spokesperson for the European Commission confirmed that it received the letter and had been in contact with the governments. A spokesperson for France’s energy minister didn’t immediately respond to an inquiry for comment about the letter. In its recent multi-year planning document, French grid operator RTE studied the feasibility of constructing two additional interconnections to Spain over the Pyrenees. RTE's report on planning said that it would expect EU financing for any such upgrades as the goal would increase interconnection to Spain "with the beneficiaries located outside France." France gets most of its electricity from nuclear power plants. Iberia, on the other hand, uses more renewable energy sources. Their fluctuating production increases the need for flexibility within the grid. Iberia is behind the EU target of connecting 15% of its electricity capacity with neighbouring countries by 2030. Iberia's share is only 3%. Spain and Portugal claim that this increases prices and hinders the ability of their grids to respond to interruptions. By allowing power to move between countries, interconnectors help stabilize energy grids. The letter stated that "accelerating completion of electrical interconnections with Iberian Peninsula should be among the highest priorities." In Europe, power outages as severe as those in Spain and Portugal in the last month are uncommon. The blackout was a major disruption, causing planes to be grounded and hospitals to stop their routine operations. The EU is investigating the cause. Both a spokesperson from the energy ministry of Portugal and Spain confirmed that their respective ministers had signed the letter.
-
Boeing accelerates 737 production as safety and quality culture improves
Doug Ackerman, Vice President of Quality for Commercial Airplanes at Boeing, told reporters Tuesday that the company expects to stabilize 737 MAX output at 38 aircraft per month in the coming months. After a mid air panel blowout on a brand new 737, the U.S. Federal Aviation Administration set a monthly production limit of 38 aircrafts. Boeing's best-selling plane had been fluctuating between the teens to the thirties in monthly production. But the company has struggled with a series crises and controversy that have weakened its finances, damaged employee morale, and undermined public trust. The U.S. aircraft manufacturer needs to increase production of the 737 to generate more cash after losing $12 billion in 2012. Two sources familiar with the situation said that the company was on track to manufacture about 38 single-aisle aircrafts in May. Boeing's spokesperson refused to comment on May's production rate. Boeing's chief executive Kelly Ortberg said previously that the company must prove that it can continue production at this level for several more months before asking the FAA to raise the cap. Ackerman stated that once production runs smoothly, Ackerman's company will also begin work to add a fourth line. Boeing has made steady progress in all six metrics for production quality and safety created by the company, as well as regulators. This is according to the annual Chief Aerospace Safety Officer Report released on Wednesday. The report states that the number of safety concerns reported by employees through the Speak Up system has increased by 220% between 2023 and 2024. Don Ruhmann, the Chief Aerospace Safety officer at the Tuesday media briefing, said that the program is becoming more effective as a result of the ongoing changes. Safety concerns, for example, are now assessed by managers in other sections, who are likely to be more impartial than those who supervise the work. Boeing uses machine learning as well to detect quality issues in its supply chain and fix them before they spread. Ackerman stated that while the company is still "fine-tuning" its approach, they are seeing statistical correlations in the data between supply chain issues and the data. Reporting by Dan Catchpole and Allison Lampert, both in Seattle; editing by Kirby Donovan.
Australian towns stricken by torrential rain, thousands prepare for isolation
The southeast of Australia was hit by torrential rain on Thursday. This caused flash flooding, and officials issued new evacuation orders. 50,000 residents have been warned to prepare for more downpours in the next 24 to 48 hours.
The Hunter and Mid North Coast regions in New South Wales (Australia's most populous State) have been hit by major flooding. Most of the Mid North Coast area is expected to experience heavy rain through Thursday.
The body of a man aged 63 was discovered in a home that had been flooded near Taree. This is more than 300 kilometers (186 miles), north of Sydney. The rural town was one of the hardest hit by the flooding, which has destroyed roads, bridges, and homes.
We're expecting more bad news over the next 24 hours. The natural disaster that has hit this community is terrible, said New South Wales Premier Chris Minns during a press briefing.
There are 140 flood warnings. 50,000 people live in an area where they may be asked to evacuate or isolated. And there are 9,500 properties within a few hundred meters. We're still not out of the woods.
Authorities have reported that two men and one women were reported missing in separate incidents.
On Thursday, more than 100 schools were shut down and thousands of homes remained without electricity.
HEAVY RAIN - MORE HEAVY RAINS
Over the past two weeks, a slow-moving coastal low has deposited about four months' worth of rain, cutting off entire communities and leaving residents stranded on rooftops or the second floors of their homes. Rescuers have struggled to reach the area via boat and air.
Minns apologized to those who waited for hours to be rescued, but assured them that 2,500 emergency personnel had been dispatched.
Images on television showed a woman being winched into a helicopter after her property was flooded, and several people were seen being saved by boat.
Jason Herbert, manager of a Port Macquarie campground and boatshed, said that the flooding was more severe than he had anticipated and it would take longer to assess the damages.
"We prepare for a moderate flooding, which we are able to do. Herbert, an ABC News reporter, said that they had lifted fridges over a metre high but all of them were gone the night before.
The Bureau of Meteorology in Australia forecasts that up to 200 millimeters (8 inches) of rainfall could fall on some areas through Friday. This would cause flash floods, which can be life-threatening.
(source: Reuters)