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Ship owner: Jet fuel cargo on Stena Immaculate mostly intact after collision with UK ship
The majority of jet fuel onboard Stena Immaculate's cargo, which is US-flagged, was intact and did not leak, Stena Bulk, the vessel owner, said on Wednesday. On Monday, the Portuguese flagged Solong container vessel crashed into a tanker transporting jet fuel to the U.S. Military. The British police arrested Solong’s captain a day later on suspicion of gross negligent manslaughter. Stena Bulk Chief Executive Erik Hanell said, "There is no fire on the Stena Immaculate any more." In the next 24 to 48 hours, we will have a clearer picture of the entire salvage operation. Hannell stated that two of the vessel’s 18 fuel tanks leaked. This represents an estimated 10% volume. He said: "I guess the total amount of jet fuel onboard is about 50,000 cubic metres, so that's probably about the maximum... hopefully less." Hannell, a London-based mariner who had met the 23 American crewmembers of the vessel in the UK earlier, reported that the mariners are in good health. He said, "They were shaken up, of course." (Reporting and editing by Gareth Jones, Bernadettebaum, and Jonathan Saul)
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Experts say that Trump's tariffs against steel and aluminum will increase costs for US energy companies
The U.S. tariffs imposed on imports of steel and aluminum are likely to increase costs for oilfield services companies that support North America's massive energy industry. These metals are essential to their operations. Steel is used in everything from drilling rigs, pipelines and refineries to storage tanks and equipment provided by companies like ChampionX and Patterson UTI that provide the necessary services and equipment for oil and gas producers. Half a dozen experts in the industry said that any tariff increase could have a negative impact on their production and operational costs. The increased tariffs by U.S. president Donald Trump on all imports of steel and aluminum took effect on Wednesday, "without exceptions or exclusions", intensifying the global trade conflict. Andy Hendricks, CEO of Patterson-UTI, said that 14% (or about $14 million) of the products we purchase are from countries impacted by tariffs. "If you add tariffs to our products, we could see a cost increase of low single digits." Peer ChampionX also warns that equipment costs will increase due to tariffs. Oil Country Tubular Goods (OCTG) are made from a special type of steel called hot-rolled coil (HRC). These tubes and pipes can withstand high temperatures, pressures and corrosion. According to Wood Mackenzie's Nathan Nemeth, in 2024 the U.S. will import nearly 40% of all its OCTG. In January 2025 Canada and Mexico accounted 16% of OCTG exports, indicating that buyers were stockpiling in anticipation of possible tariffs. Census Bureau data show that U.S. steel imports from Canada and Mexico rose by more than 32 percent in January compared to the previous month, reaching 1,017.644 metric tonnes. Rystad Energy anticipates that tariffs will increase OCTG costs 15% per year. According to Ali Oktay, an analyst at S&P Global Commodity Insights, the U.S. price of HRC is expected to rise to $890 per ton by 2025. This represents a 15% hike from last year's average. Mark Chapman is the principal analyst at Enverus for OFS Intelligence. Since Trump announced his plans to increase duties on metal and steel imports on February 11, the shares of Patterson-UTI have fallen by about 16%, and ChampionX has dropped by 3.3%. Chapman predicts that costs will rise for Halliburton, as well as companies like NOV and Tenaris who are key suppliers of steel pipes in the petroleum industry. Tenaris, which has been monitoring the impact of tariffs on potential customers while Halliburton did not reply to requests for comments. The price increase will be passed along to the customers in the exploration and production sector, especially to smaller producers that are more vulnerable to spot market prices. "OCTGs account for about 8.5% drilling and completion costs of onshore wells within the Lower 48 States." Wood Mackenzie’s Nemeth explained that if oil prices increased by 25%, the cost of a well would increase by 2.1%. The average cost of a well in the United States is typically between $8 and $9 million. Chapman stated that "They (small-cap companies) are at the mercy" of service providers. With their strong balance sheets and diverse supply chains, large-scale producers like Exxon Mobil and ConocoPhillips are better able to absorb these costs. Oil prices have plummeted to their lowest levels since the Russian invasion of Ukraine disrupted supplies chains. Trump's desire to lower oil prices and increase production may not be in line with the profitability for producers. In regulatory filings, Venture Global and Energy Transfer, as well as Williams Companies, warned that tariffs would increase project costs. This is especially true for materials imported from abroad, such a steel and aluminum. (Reporting and writing by Mrinalika Ro, with editing by Stephanie Kelly, Matthew Lewis, and Devika Syamnath.)
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Can Trump "take back" the Panama Canal
Donald Trump has repeatedly said that he wants "to take back" the Panama Canal, but hasn't given specifics on how he will do it. This article explains the history of the canal and the laws that govern it. Why is the Panama Canal important? The Panama Canal is located in the narrowest part between North and South America. It is one of most important waterways around the globe. The canal recorded 11,240 crossings in 2014, totaling over 235.5 million tonnes of cargo. More than two thirds of the cargo that passes through the canal comes from the U.S. or is headed there. Ships would have to travel around the southern tip South America in order to reach the Pacific Ocean if the Panama Canal was blocked. In response to pressure from Panama and the unrest there over U.S. ownership, the U.S. signed treaties in 1977 to hand the canal over to Panama. WHAT HAS TRUMP COMMENTED ON THE CANAL? Trump says Panama charges excessive tolls to U.S. vessels to pass through the Canal, calling them "ridiculous", and "very unfair". Fees are based on the type and size of vessels, plus an auction for vessels arriving without reservations. There is also a variable surcharge and water surcharge. The U.S. military ships are given priority for passage but commercial vessels do not get lower rates. Trump also said that the U.S. must retake the canal from China, who controls it and may use the waterway for American interests. This claim is not supported by any evidence, despite the fact that Chinese companies have invested significant amounts of money in Panama. Some U.S. legislators and maritime experts believe this could give Beijing influence over the operation of the canal. A group supported by U.S. Investment Company BlackRock agreed to purchase a controlling interest in ports on both sides of the canal, from a Hong Kong based conglomerate. Trump hails this deal as a first step towards reclaiming canal. Trump said to the U.S. Congress in March that "my administration will reclaim the Panama Canal and we've started doing it." In a post on social media, Panamanian President Jose Raul Mulino stated that "the Panama Canal was not being reclaimed." What are the laws that govern the canal? Panama Canal Authority is an autonomous agency under the supervision of the Panamanian Government that owns and operates the Panama Canal. Panama has pledged that it will charge all nations "just, reasonable, and equitable" transit charges under the Treaty Concerning the Neutrality of the Panama Canal. The three-page treaty does not provide any further explanation of these terms or a mechanism for enforcement. Although the U.S. judiciary has a ambiguous authority to interpret treaties, it is not standardized. Both nations could take their disputes to the United Nations International Court of Justice. However, that court does not have any way of enforcing it's decisions. Trump is unlikely to ask for UN assistance, after repeatedly criticizing it as ineffective, weak and unfair to the U.S. What if a country tries to take the canal by force? A foreign power that attempted to forcefully take over the canal would be in violation of international law. Both the U.S.A. and Panama have signed treaties requiring them to defend their canals against any threats to neutrality. They are allowed to act unilaterally to achieve this. A treaty amendment clarifies the U.S.'s inability to interfere with Panama's internal affairs, or to undermine its territorial integrity or political independence. To prepare for possible attacks against the canal, the U.S. Southern Command conducts regular military exercises in conjunction with Panama and other regional countries. The exercises don't include scenarios in which the U.S. invades Panama. (Reporting from Jack Queen in New York; additional reporting by Sarah Morland, Marianna Pararaga and Nick Zieminski. Editing by Noelee Walder and Nick Zieminski.
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Russian Urals oil price falls to $6/barrel under the price cap. This is a 14-month-low
Calculations showed that the Russian Urals crude price in Baltic ports dropped to $6 per barrel under the Western price cap, which is $60 per barrel. This was the lowest level since January 2024, as Brent prices continued to be weak and freight rates high. According to the cap, which was imposed by the Group of Seven and Australia in 2022 to reduce Russia's oil export revenue, buyers are only allowed access to Western services, such as insurance and shipping, when the price of Russian crude falls below $60 per barrel. LSEG data show that the price of uranus in Russian ports has remained above $60 for most of 2023. After dipping below the cap at Primorsk, Ust-Luga and Ust-Luga in February last year, they have remained there ever since. Calculations show that the recent drop in Brent oil, the global benchmark price, and an increase in freight costs have led to estimates for Urals oil to be loaded from Baltic ports on Tuesday at $53.95 a barrel. Estimates for Urals Crude from the Black Sea Port of Novorossiisk on Tuesday were $55.94 per barrel FBO. Trading and shipping sources, as well as calculations, showed that freight rates for shipments from Russian Urals oil to India via the Baltic and Black Sea ports rose to their highest level in a full year after U.S. sanctioned tankers involved with Moscow's energy imports. The calculations of the Urals Oil price are based upon the grade's current market price in Indian ports, delivered ex-ship, the transport costs, and the Brent benchmark for the previous day. Traders said that lowering the urals price cap could attract more Western shipping companies and insurance companies into the market. This may offset the high freight rates. Reporting by Kirsten Doovan; Editing by Kirsten donovan
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Sources say that Russian oil supplies to India recovered in March
India's Russian crude oil imports rebounded in March after a three-month decline. Non-sanctioned ships were delivering the cargoes and some supplies were diverted to Turkey, according five trade sources. The return of Russian oil to the third largest oil importer/consumer in the world is helping to ease a supply shortage and cool prices for Middle East rival grades. The Russian oil supply to India and China dropped sharply in the first half of this year after U.S. sanctioned on January 10, which targeted producers, insurance companies, ships, and middlemen. Data from analytics firm Kpler shows that India's imports, mostly of Urals crude oil, have returned to 1.54 million barrels a day in March after dropping to between 1.1 and 1.2 million bpd over the past three months because of concerns about sanctions. Sources said that the freight rates for tankers travelling from western Russian ports to India reached a record high of $8,000,000 in the past 12 months, which attracted more ships to offer service, while also cutting into Russian oil sellers' profits. They added that the decision of Turkey's largest refiner Tupras, to stop Russian oil imports, also liberated more supplies for Asian market. Kpler data shows that the Turkish imports of Russian oil have fallen to 127,000 barrels per day (bpd) so far in march from around 300,000 before January's sanctions. Sources said that the discount for Russian oil has narrowed from $2.50 to $3 per barrel for cargoes loading March for delivery in April to Indian ports to $2.60 to 2.80 per barrel for dated Brent. Sources said that some traders told Indian refiners that they would use western vessels to deliver their cargoes in order to avoid sanctions. A second source stated that the price of Urals Oil has dropped below the $60 per barrel price cap established by the Group of Seven countries, allowing for access to shipping services in the west. India, the second largest importer of crude oil from Russia, has said it will only buy Russian oil if it is supplied by companies and ships that have not been sanctioned by the United States. India, the No.2 importer of Russian crude oil, said that it would only buy Russian oil if it was supplied by companies or ships not sanctioned by America. India has become the largest buyer of Russian oil shipped by sea at a discounted price after Western nations imposed sanction on Moscow in response to its invasion of Ukraine 2022. India does not follow individual country sanctions but rather follows the United Nations. However, the fear of secondary sanctions from the United States is a problem because Indian banks and companies are heavily exposed to the U.S. Financial System.
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Ukraine reports four deaths in Russian attack on grain ship in Odesa port
The Ukrainian authorities reported that a Russian missile strike on Tuesday destroyed a grain ship in the Black Sea Port of Odesa and killed four people. Oleksiy Kuleba, Ukraine's Deputy Premier, said that a ballistic missile hit the MJ Pinar Bulk Carrier, which was loading wheat to Algeria. The attack killed four Syrians, injured another Syrian, and also injured a Ukrainian. Kuleba stated that "Russia is attacking Ukraine’s infrastructure, including its ports, which play a role in ensuring food security around the world." The global grain merchant Louis Dreyfus Company stated in an email that the vessel was loading at Brooklyn-Kiev Terminal at Odesa Port, and terminal infrastructure had also been damaged. LDC reported that its terminal employees are safe. The dead were among the crew members of the chartered ship. Kuleba stated that another vessel had also been damaged without providing further details. Ukraine is also a major grain producer, just like Russia. It managed to restore large-scale shipping exports during wartime, despite Russian attacks on ports. Chicago wheat futures - a benchmark for global prices - were little changed Wednesday. Ukraine reported additional Russian strikes over night as the war continues to rage in parallel with U.S. efforts at negotiating a ceasefire. (Reporting and editing by Hugh Lawson, Yuliia Dysa, Pavel Polityuk, and Gus Trompiz)
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Owner says that the Russian captain arrested in UK ship accident is the one who was at fault.
The German company that owns the ship said Wednesday that the Russian national who was arrested in connection with the crash of a U.S.-flagged tanker near the coasts of England, is the captain. On Monday, the Solong collided with the Stena Immaculate tanker, which was carrying jet fuel to the U.S. Military. The captain of the Solong was arrested by British police on suspicions of gross negligence and manslaughter a day later. The 59-year-old man is still in police custody, according to the police. Owner Ernst Russ, based in Hamburg, said that the Russian captain of the Portuguese flagged Solong is also the crew mix. Stena Immaculate, which was at anchor, was hit by the smaller Solong, causing massive fires and explosions. One crew member was presumed to be dead and one was missing. Fuel was released into the ocean, causing concerns about its impact on the environment. The Telegraph reported, as speculation about the collision's cause grows, that the Solong failed a steering-related safety test last year. This was based on a routine safety inspection carried out in Dublin by Irish officials in July.
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Vietnam and Singapore agree to strengthen ties, cooperate on subsea cable
Singapore and Vietnam agreed on Wednesday to intensify their cooperation in the areas of subsea cable, finance and energy. This marked an upgrade to Vietnam's top level in their relationship, during a trip by To Lam, the Communist Party chief in Vietnam, to Singapore. Singapore is the third Southeast Asian country, after Malaysia, and Indonesia, that Vietnam has "established a comprehensive strategic relationship" with. In a statement issued following the upgrade, Lam, Singapore's Premier Lawrence Wong, witnessed the exchange six agreements, and discussed cooperation on undersea cables development, digital connectivity and cross-border information flows. Southeast Asian countries are a major junction of cables connecting Asia and Europe. They aim to expand their network to meet the increasing demand for AI services, data centres, etc. Vietnam alone is planning to launch ten new submarine cables before 2030. In December, reported Sources familiar with the situation claim that Singaporean asset manager Keppel, and Vietnamese conglomerate Sovico Group discussed plans to build new undersea fibre-optic cables in order to boost the data centre industry of the region. Viettel, the state-owned Vietnamese telecom company, and Singtel, Singapore's Singtel, announced in April of last year a preliminary deal to build an undersea fiber optic cable that would connect Vietnam to Singapore. However, no contract for construction has yet been announced. Both leaders discussed peace, stability and industrial park expansion. In a joint statement, Singapore committed to supporting Vietnam in the development of international financial centers. Singapore is the top foreign investor in Vietnam, with $10.21 billion invested last year. This accounted for 27 percent of Vietnam's foreign investment. (Reporting and editing by Himani Sarkar, Christian Schmollinger and Phuong Vu)
Amazon and Google pledge support for tripling nuclear energy capacity by 2020
Amazon and Google, among others, signed an agreement on Wednesday to support the goal of tripling nuclear energy production in the world by 2050. The pledge was made on the sidelines CERAWeek's conference in Houston.
The pledge was also signed by the Japanese heavy equipment maker IHI Corp and the Shale company Occidental.
In a press statement, the World Nuclear Association, the nuclear industry group which facilitated the pledge said that the pledge would gain support from other industries, including aviation, maritime and oil and natural gas.
This pledge is in addition to over 30 other countries' vows to triple their capacity by 2050, also by 2023.
According to WNA, nuclear energy is a clean source of power that generates 9% the world's electric power from 439 power plants.
By early 2025, there will only be 411 nuclear reactors in operation, with a combined power of 371 gigawatts. (Reporting from Seher Dareen, Bengaluru. Editing by Shreya Biwas)
(source: Reuters)