Latest News
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Spain bans Israel bound weapons ships and aircraft over Gaza
Spain banned Monday ships and aircraft that carry weapons to Israel to enter its ports or airspace in response to Israel's offensive against Gaza. The Israeli Foreign Minister called the measures antisemitic. Spain, which recognized a Palestinian State in May 2024, and has been vocal in its criticism of Israel's action in the Gaza Strip responded to Gideon Saar’s comments by calling back its ambassador in Tel Aviv for consultations. The government of Prime Minister Pedro Sanchez has announced that it will not allow anyone to enter Spain who is directly involved in the "genocide", in Gaza. Israel denies that its actions in Gaza constitute genocide. It is currently fighting a case before the International Court of Justice at The Hague in which it has been accused of genocide. Israel began its attack on the Gaza Strip after Hamas militants, who controlled the territory, had attacked Israeli communities and killed 1,200 people, while capturing over 250 hostages. Saar claimed that Sanchez was using these measures to distract attention from corruption scandals at home. He also announced an entry ban for Sanchez's deputy Yolanda Diz and Youth Minister Sira Regio. Both are members of the hard-left Sumar party, which is the junior partner to Sanchez's coalition. The Spanish Foreign Ministry has said that the entry ban imposed by Israel is unacceptable. It also stated that Sanchez's actions were in line and reflect Madrid's support of peace, human right and international law. Spain is committed to combating antisemitism. It cited the fact that 72,000 Sephardic Jews, descendants of those who were expelled from Iberian Peninsula during the 15th century, have been granted Spanish citizenship. The ministry issued a statement in which it condemned the "terrorist attack in East Jerusalem" that took place on Monday, in which Palestinian gunmen opened up at a bus station, killing six people including a Spaniard living in Israel. (Reporting and editing by Inti Latona and David Latona, Andrei Khalip, Helen Popper and Charlie Devereux)
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China's demand for Russian ESPO crude oil keeps it firm despite increasing western sanctions pressure
The price of Russian ESPO blend crude oil for October loading cargoes remained stable as traders reported on Monday that the strong demand from China and abundant supply offset the growing pressure from Western sanctions. They said that cargoes loaded from the Far Eastern Port of Kozmino were sold for a premium of about $2 per barrel over ICE Brent, on a delivery-basis to Chinese ports. This was a little different from September's levels. Intense Ukrainian drone attacks have struck several major Russian oil refining facilities in the last few weeks. This has led to a decrease in feedstock processing and an increase in crude exports. The price stability is despite the new wave of Western sanctions targeting Russian oil exports. Last week, Britain, the European Union and other countries lowered the price of Russian crude oil from $60 per barrel to $47.60. Buyers were required to submit certifications within 30 days after loading in order to continue to have access to Western shipping and insurance services. The EU has announced its 18th package of sanctions, which includes a blacklist of dozens of entities. These include Indian refiner Nayara Energy as well as several Chinese companies accused of helping Russia to bypass restrictions. The measures tighten control on energy and technology exports, and ban fuels derived from Russian crude beginning in January 2026. Donald Trump, the U.S. president, announced on Sunday that he is ready to implement a second round of restrictions. The EU Council's Antonio Costa also said that new sanctions are being closely coordinated with United States. Traders have noted that Chinese oil demand remains strong, despite the threat of Western sanctions. Chinese buyers will also receive Urals and Arctic crudes via the Northern Sea Route in addition to ESPO. The latest step in the strengthening of financial ties between Beijing, Russia and the United States was taken on Friday when the Chinese rating agency CSCI Pengyuan gave its highest AAA-rating to the Russian oil and natural gas giant Gazprom, which is blacklisted by the U.S. A trader stated that ESPO premiums may soften if U.S. Tariffs drive Indian purchases lower and more oil flows into China. A trader said that because Urals and ESPO are different in quality, increased Urals flow may not have an impact on ESPO prices. Urals is a sour oil, while ESPO can be described as a light and low-sulphur type of oil. (Reporting and Editing by Joe Bavier).
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Rosatom and Gazprom investigate sales of Chinese "panda" bonds
Sources from top Russian companies, including the vast Russian nuclear corporation Rosatom, and giant gas concern Gazprom, are looking at selling "panda bonds" denominated in yuan, according to company sources on Monday. Western capital markets, however, remain closed to Russia. Since Moscow's invasion of Ukraine in 2022, Russian companies are no longer able to access the capital markets of the West. The Financial Times reported Monday that China is preparing to reopen the domestic bond market for major Russian energy companies, as Xi Jinping & Vladimir Putin continue to deepen their partnership "without limits". Putin, who visited China this week, called for a joint financial infrastructure between countries in the 'Global South.' He also suggested that the members of the Shanghai Cooperation Organisation should sell their shares. Joint bonds The Chinese rating agency CSCI Pengyuan has assigned the highest AAA rating to Gazprom. This company holds the largest reserves of natural gases in the world. This opens the door for possible debt issuance on China's bond market. Rosatom, the largest nuclear company in the world, is preparing to also issue bonds denominated in yuan, according to a spokesperson. Ilya Rebrov, the Chief Financial Officer of Rosatom, told a publication in August that in order to raise funds from abroad, the Supervisory Board had approved plans. He also said that preparations were underway for Atomenergoprom's generation unit to issue bonds in Yuan. Atomenergoprom announced in April that it received a "AAA" credit rating from China's Dagong Global Credit Rating Agency with a stable outlook. The Chinese government will need to approve any Russian bonds, and the buyers of Russian corporate Yuan bonds must weigh the risks of secondary sanctions from the U.S. CHINESE BANK BONDS FOR RUSSIAN COMPANIES? According to Deutsche Bank, the market for Panda Bonds, a Chinese Yuan-denominated bonds from a non Chinese issuer, has seen record growth in both 2023 and 2024. This was driven by geopolitical conflicts. Even though the conflict in Ukraine began, only one Russian company - aluminium producer Rusal - sold panda bond. Companies have issued yuan bonds on the Russian market, which is a small and shallow one. The yuan currency has also become the most popular foreign currency in Russia. China's bond market offers a much larger reservoir of capital. Famil Sadygov, Gazprom's deputy CEO, said that the company was "strongly creditworthy" and the rating confirms the financial stability of the company. One source with direct knowledge about the situation said that a long-term issuer ratings on Gazprom would not necessarily result in an issuance of bonds denominated in yuan. "There's no certainty about the bond issue yet. A rating allows you to enter the market if necessary. "This is work for future," said the source. According to Kirill Lysenko, an analyst at Expert RA - Russia's oldest rating agency - the approval process will still take place, but it could take many years. Lysenko stated that "Chinese financial institutions and regulators can be under increased pressure at any time in the form secondary sanctions by major Western economies." Gazprom was given an "AAA" credit rating with stable outlook just after Russia, China and other countries gave their approval to Power of Siberia 2 - a huge gas pipeline linking both countries in a bid to reduce economic dependence on the West. Gazprom is unable to raise finance in the United States and Europe, but it has not been subjected to U.S. blockade sanctions. Rosatom's top management has been sanctioned by the U.S., but Rosatom itself is not subject to sanctions. CSCI Pengyuan cited high geopolitical risk in its analysis of Gazprom’s outlook and rating decision. (Writing and Addirional Reporting by Shanghai Newsroom, Editing by Kevin Liffey; Written by Gleb Bryasnki & Guy Faulconbridge)
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Haaland is cleared by Norway after a freak bus accident that leaves him with a cut lip
Stale Solbakken, the coach of Norway's national team, said that Erling Haaland would be fit to play against Moldova on Tuesday even though he suffered a cut lip after the luggage door of the bus struck him. On Sunday, the Manchester City player was exiting the back of the bus, outside the hotel where the team stayed, when the luggage door opened, striking him in the nose. Haaland revealed his injury on social networks, stating that he needed three stitches. Solbakken, a Norwegian broadcaster, told NRK: "We should have been glad that it went well because this could have actually gone badly." He added, "I think he went to the dental office, had some stitches and stopped the bleeding, but he's fine for the match." Norway is chasing its first World Cup in over 25 years. They have won four of their four qualifying matches, while Moldova are bottom in Group I, with zero points. (Reporting and editing by Christian Radnedge in Gdansk)
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London's Tube system shuts down as workers start a week-long strike
London's Underground rail network halted on Monday, as workers began a strike over pay and conditions of employment. This caused travel disruptions for both commuters and tourists. The underground rail network is expected to be shut down until Thursday. This means that the 3.7 million people who use it daily will have to work from home or find other ways to travel. Forest, which operates 15 000 e-bikes throughout London, reported that it was experiencing four times the demand for its ebikes at 9 am. Some commuters opted for buses or the few remaining train lines, but most reported longer journeys. Laura Sutton, 46 years old, a legal adviser, was standing near London Bridge Station. Transport for London (which operates London's public transport system) said that it offered staff a pay increase of 3.4%, but the union only accepted a deal if the result was a shorter working week. The RMT union stated that the dispute was centered on pay, fatigue management and shift patterns, as well as a reduction of hours. The spokesperson for Prime Minister Keir starmer told reporters that the PM wanted a solution. They said that "Londoners trying to get to their jobs, dropping off their children at school, and businesses who depend on the Tube to bring in work and footfall, will be tired of these strikes." Outside the Tower of London Peter Rolf (58), a German citizen, told his family that they had decided to reduce their two-day London trip to just one day, and spend more time in England. Patricia Ware (75), who visited from near Chicago, U.S.A., said that it took much longer to get to the historic castle. She said, "We found it difficult to get a taxi here." She was still having a great time in London. "Travelling is at best a hassle. So we just go along with it." Reporting by Will Russell. Marissa Davison. Sam Tabahriti. Sarah Young. Andrew MacAskill. Sachin Ravikumar. William James edited the story.
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Freeport LNG Export Plant in Texas to receive more natgas after Monday's outage
According to a filing made by the company with the state's environmental regulators and data from LSEG, a financial firm, Freeport LNG is on track to receive more natural gas at its Texas export plant on Monday. This indicates that a liquefaction station that was shut down on Saturday will likely be back in operation. Freeport LNG is closely watched by the global market because its start-ups and stop-offs often cause price fluctuations. Gas prices in the United States typically fall when flows to Freeport decrease due to a lower demand for fuels from the export facility. Prices in Europe usually rise due to the drop in LNG supply available on global markets. The U.S. futures market was on course to reach a six-week peak on Monday, due to many factors including the anticipated increase in gas flow to Freeport. Prices in Europe, however, rose by about 3%, for reasons that were not necessarily connected to the plant. Freeport informed Texas environmental regulators that Train 1 of the three liquefaction train at its plant shut down on Saturday because there was a problem with its compressor system. Freeport officials had no comment about the latest outage. Freeport has experienced numerous compressor system problems at its plant in the last month. According to the company's filings to regulators, liquefaction train shut down five times due to these issues. LSEG reported that the amount of natural gas flowing into Freeport is on track to hit 1.9 billion cubic foot per day (bcfd), up from 1.8 bcfd Sunday, and a low of 1.4 bcfd Saturday. This compares to an average of 1.8 billion cubic feet per day over the previous seven days. Three liquefaction plants at Freeport can convert about 2.1 billion cubic feet per day of gas to LNG. A billion cubic feet of natural gas can supply five million U.S. households for one day. (Reporting and editing by Scott DiSavino)
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Israeli military claims it intercepted drones launched from Yemen
Israel's military announced on Monday that it intercepted a Yemeni drone after sirens were heard near Eilat. A day earlier, Yemen's Houthis had launched a drone at an airport in the vicinity of southern Israeli city. The military announced that sirens sounded later on Monday in the Negev region after another drone had been detected. The military did not reveal what happened to the drone. Israel's Ramon Airport, near Eilat, has resumed its operations after a drone fired from Yemen hit the arrivals area on Sunday. Since the beginning of the Gaza war, the Houthis, backed by Iran have launched missiles and drones towards Israel thousands of kilometers north. The militant group claims that this is an act in solidarity with Palestinians. Israel responded by bombing Houthi controlled areas in Yemen, including Hodeidah's vital port. (Reporting and editing by Gareth Jones, Helen Popper, and Ahmed Elimam)
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Milei's heavy defeat in Buenos Aires sets the stage for Argentina's market to sell off
The Argentinian markets are on the verge of a further selloff after a heavy defeat in Buenos Aires for President Javier Milei’s ruling party. This is raising concerns ahead of a crucial October election. According to the official results, the Peronist opposition party won the Sunday legislative elections in the province's key region, while the radical reformist Milei party came in second. The scale of Milei's defeat was far beyond expectations, said JPMorgan analyst Diego Pereira. He added that the resounding win for the opposition during the regional contest meant Milei had a much steeper climb ahead as he tries to deliver a successful outcome at the national midterm election on October 26. The administration could recalibrate its political strategy in order to correct missteps made over the past few months. According to the official count, the Peronists have won 46.8% in the province. The candidate from Milei's Party has taken 33.8%. Argentina, one of the biggest reform stories in emerging markets since Milei was elected president in December 20,23, has seen its market come under pressure over recent weeks. Markets were impacted by political woes and economic pressures. The latter included allegations of corruption involving Milei’s sister Karina Milei and a sharp drop in government and consumer confidence. MARKET SELLOFF Since the scandal broke out, Argentina's main stock index has fallen by around 20%. Its international government bonds are also down and the pressure on the newly unpegged peso has forced the authorities to intervene in the foreign exchange market. Investors said that early market indicators priced a 5 to 6-point drop in the international bonds of the country. Viktor Szabo is the portfolio manager of Aberdeen Investments. Morgan Stanley warned that international bonds would fall by up to 10 percentage points if Milei's radical reform agenda was thwarted. JPMorgan stated that the currency was also vulnerable to further weakening, which could force central banks to reduce their FX spot reserve to absorb excess pesos. Wall Street banks, however, said that the election dynamics in the rest of the nation would be different from Buenos Aires – a Peronist hotspot. The Milei government was also expected to adhere to its fiscal discipline programme despite economic difficulties. The PBA election was held amid tightening domestic financial conditions. This included a depreciation in the peso and expectations for a slight increase in inflation in August. It also coincided with a slowdown in economic growth, according to Goldman Sachs' analyst Sergio Armella. The provincial election will have very little impact on the policy mix adopted by the Milei government, but it is a setback in terms of politics for the government.
Maguire: High fossil fuel consumption highlights US power transformation challenge
The United States continues to rely on fossil fuels for its power generation, despite the rapid expansion of clean energy.
According to Ember, U.S. generators have been prioritizing clean energy sources over fossil fuels for the past decade. Since 2014, they have increased clean electricity production capacity by more than 70%, while reducing fossil-fired generation by 5%.
LSEG reports that fossil fuels still dominate the nation's power generation, with just over 58% of the total generated in the first eight month of 2024.
This is a decrease from 60.4% in the same month of 2021. It reflects efforts to increase generation using clean energy, as part net zero emission targets.
In absolute terms, fossil fuels have reached new heights in this year's output, as a result of the steadily increasing total energy demand, which is putting strain on all power systems in the country.
In order to keep up with the rapid growth in demand, which is fueled by data centers and artificial-intelligence applications, power companies have had to increase their production from fossil fuels along with clean energy sources. This was despite long-term pledges to reduce reliance on fossil-fuels.
The fossil fuel generation of power generators will be reduced to a significant extent only when clean generation capacity surpasses fossil generation capacity and is complemented with a much larger battery storage system than the one currently in place.
Staying Power
According to LSEG, the total U.S. electricity generation from fossil fuels in the first eight month of 2024 reached 68.6 megawatt hours (MWh), up 2.8% compared to a year earlier and the highest level since at least the 2021.
The majority of the energy was generated by natural gas-fired power plants, which produced 49.3 millions MWh. This was a 5% increase from January to August 2023 and the highest total ever.
The coal-fired production was down by 2.3% compared to the previous year at 19,1 million MWh. This is the third consecutive decline in coal consumption during the window from January to August.
The oil-fired output was 179.368 MWh. This is a record low.
The industry's efforts to reduce the use of highly polluting fuels are reflected in the steady reduction in coal and oil fired generation.
Ember data shows that the emissions per unit of electricity produced by gas-fired power plants are among the lowest fossil fuels and 77% less than coal-fired generation.
Around 537,000 metric tonnes of carbon dioxide (CO2) were emitted in 2024 for each terawatt-hour (TWh), of electricity generated by gas-fired power plants.
This compares with around 950,000 tonnes of CO2 from coal-fired power plants and 700,000 from oil-fired power plants.
CLEAN LIMITATIONS
The emissions from clean energy per TWh electricity are around 21,500 tonnes CO2, which is 25 times lower than the emissions from gas-fired plants.
This sharply reduced emissions profile is one of the main reasons why U.S. government and power companies support clean energy adoption within U.S. electricity generation.
In the first eight-month period of 2024, nuclear reactors will account for approximately 18.6% of the total U.S. generation.
Other major sources of clean energy include hydro dams (6.4%), wind farms (10.7%) and solar farms (5%)
Clean power sources are limited in their current capacities.
Nuclear power plants are the most reliable source of clean energy available, but they have fallen out-of-favor due to their high costs, long development times, and strict regulations regarding waste management.
Hydro dams are also subject to a long construction phase. They can only be used in certain areas and they face fierce environmental opposition.
Solar and wind farms are cheaper and quicker to build, but they have some drawbacks.
Construction costs for onshore wind farms have increased since 2020, mainly due to inflation in labor and parts. They also need to overcome local objections to get the green light. Offshore projects face similar obstacles, but at a higher cost.
Solar parks can be the fastest and cheapest way to generate power, but they only work during daylight hours. They require backup supplies when solar output drops.
The U.S. utilities responsible for ensuring that power is available at all times, regardless of time, rely on fossil fuels in order to meet most of their demand and fill any gaps in supply during periods of windlessness and sunless weather.
Many utilities are building battery networks to store excess clean energy for later use. This will help reduce fossil fuel dependence in the future.
According to the energy data platform Cleanview, current battery capacity installed is just around 21,000 Megawatts. This is less than 2% total installed generation capacity.
Batteries can only meet a small fraction of the country's power requirements.
Power firms may be forced to continue using fossil fuels as a major source of electricity until batteries are able to reliably deploy more of their generation capacity.
(source: Reuters)