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Maguire: Booming US energy exports are under scrutiny as domestic fuel costs bite.
U.S. energy exporters helped to plug global shortages of key products due to the Iran War. Sharply increasing domestic fuel prices raise questions about whether it is worth sending as much fuel overseas when pump prices are rising at home. U.S. oil firms have taken advantage of the disruptions in Middle East shipments to meet urgent demands from customers all over the world. Data from commodities intelligence firm Kpler show that from January to April, the combined U.S. shipment of these six key energy products increased by?20% compared to?the same period in 2025, reaching over 153 millions metric tons. The increase of roughly 25 million tons in U.S. fuels, oils and LNG exports from a year ago has helped to counter the drop of roughly 82 millions of tons in Middle East exports since the conflict began on February 28. These exports also caused a shortage of fuel at home. This was especially true in the transportation fuel market, where gasoline and diesel prices had risen to record highs. U.S. legislators have taken steps to protect consumers from future fuel and energy price increases. They've implemented waivers for fuel blending, and proposed a suspension of federal gasoline taxes. The U.S. political landscape is likely to be influenced by the upcoming midterm elections in 2026. This will lead to further discussion on how to reduce energy and fuel costs. SWING SUPPLIER The U.S. has a number of refineries that are geared towards exports along the Gulf Coast. These are ideally positioned to take advantage of the surge in global fuel demand since Iran shut down the Strait of Hormuz for tanker traffic about two months ago. Energy flows from U.S. port have been steadily increasing, and exports of key energy products reached all-time records within the last month. From January to April 2025, U.S. gasoline exports have increased by 27%, diesel exports 23%, LNG 26%, and ethane (30%). U.S. jet-fuel exports have also risen, registering an 82% rise from the previous year as refiners met panicky international buyer orders. PRICE RESPONSES The record U.S. energy products deliveries likely helped to limit the price hikes of fuels across the globe, even though they remain higher in Asia because the region is heavily dependent on Middle East oil supplies. The U.S. has also seen a rise in fuel prices, due to the international crude oil price rally, which grew from about $70 per barrel at the end of February to $115 this past week, according to Brent futures. Fuel prices have risen sharply due to the roughly 64% increase of crude oil costs since the beginning of the Iran conflict. The average U.S. gas price has risen from $2.91 per gallon to $4.10 in April. This trend continues as the nation enters the summer driving season, which is usually the most expensive. The U.S. Energy Information Administration reports that diesel prices have risen even more dramatically, going from $3.72 a gallon in early February to $5.50 a galon last month. The steep price hikes mean that U.S. gas costs are around 30% higher and diesel is around 54% higher than they were a year earlier, despite President Trump's promises to reduce energy costs when he returned to office. EIA data show that U.S. natural gas prices have risen by 14% for residential consumers in the past year and are at their highest levels since 2026. The sharp rise in electricity consumption for data centers, AI, and power plants has led to higher?natural gas prices this year. The record high LNG exports has also helped to keep gas prices low for many consumers, particularly in areas where gas is supplied by both exporters and other users. As we approach the peak period for household electricity and transport fuels, tensions between domestic consumers and companies that export energy products will only increase. Consumers who push back hard enough may see moves to restrict energy as a way to reduce consumer prices. This may be a major concern for officials when the November midterm elections roll around. These are the opinions of the columnist, an author for. You like this column? Open Interest (ROI) is your new essential source of 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.
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Sources say that Canada-US pipeline is close to meeting commitment requirements
Four sources with knowledge of the situation said that a proposed 'pipeline' for transporting Canadian crude oil into the United States was close to getting the minimum commitments required from oil companies to move forward. If approved, the 'Alberta to Wyoming pipeline' proposed by Canadian company South Bow Corp, and its U.S. partner?Bridger Pipeline could increase Canada’s crude oil exports to U.S. more than 12%, providing much needed pipeline takeaway capacity for Canada. Donald Trump signed an order last Thursday granting the project a cross border permit. Joe Biden, president of the United States, will formally revoke the permit required to build the Keystone XL pipeline in 2021. This is the last major oil pipeline between Canada and the United States. The new proposal follows a different route in the U.S. compared to the canceled Keystone XL. However, South Bow would restore about 150 km (93 mi) of the Canadian portion that is already built but sitting idle. This pipe would then connect to Bridger’s proposed pipeline in Montana, and extend approximately 645 miles up to Guernsey Wyoming. The four sources reported that oil companies had committed to moving at least 400,000 barrels a day (bpd), which is 72% of the initial capacity of the pipeline of 550,000 bpd. According to a regulatory submission by Bridger, the project could eventually move up to 1,13 million barrels per day. According to Canada's energy regulator, oil production was 5.5 million barrels per day at the end of January. This could rise to 6.1 million bpd in 2030. Two sources stated that South Bow and Bridger were aiming to secure contracts with long-term durations for 450,000 bpd. This would allow them to surpass the 80% threshold required by pipeline operators before they can proceed with construction. Cenovus Energy, Canadian Natural Resources Ltd. (CNRL) and other top shippers have already committed to moving oil through the pipeline. Other shippers include Tamarack Valley and Whitecap Resources. Strathcona Resources is also included, according to the source. Sources spoke under anonymity because shipper commitments remain confidential. South Bow has not commented on the committed capacity of the project, stating that it is still in its early stages, subject to ongoing discussions with stakeholders, rights-holders, and commercial parties, as well as regulatory processes and evaluation. Bridger declined comment. In a filing with the regulatory authorities in March, Bridger said that the project was developed as a response to market interest. Commercial discussions were also ongoing. Cenovus CNRL Tamarack Strathcona and CNRL declined to comment about commitments. Whitecap CEO Grant Fagerheim stated that the oil industry has engaged in the pipeline project constructively and that there appears to be enough momentum to reach the minimum thresholds for the project. He added that the support from the U.S. government was very helpful. The company declined to comment on further commitments. CANADA'S OIL COMPANY ARE INTERESTED IN THE U.S. PIPELINE These commitments show the eagerness of Canadian oil companies to increase their takeaway capacity. The country's oil production has been stifled for years by a lack pipelines. Existing pipelines are being expanded by rival pipeline operators. Enbridge approved the expansion of its Mainline and Flanagan south pipelines last fall. This will allow 150,000 additional barrels per day (bpd) of Canadian heavy crude oil to be transported to the U.S. Midwest. The company will bring this additional capacity online in 2027. It is also looking for commercial interest to a second stage of its Mainline expansion. This phase, it said, could be operational in 2028, adding another 250,000 bpd in capacity. The Trans-Mountain Pipeline, which runs from Alberta up to Canada's West Coast for export into the U.S. West Coast, and Asia, also plans a series enhancements that will?increase capacity by 360,000 BPD. Bridger's proposal currently is to build a pipe from Montana to Guernsey in Wyoming. This would be built at locations along existing pipeline infrastructure. Analysts say that Guernsey, while a refinery hub, is not a final market for crude oil. Therefore, additional links to other refining centers, such as Cushing, Oklahoma and Patoka in Illinois, or the U.S. Gulf Coast, would be needed. AJ O'Donnell is an analyst with Tudor Pickering Holt & Co. and said that the project would be one of 'the most economical options' for shippers looking to increase oil supply out of Western Canada before the end of this decade. While uncertainty still remains about the final economics of this project, O'Donnell wrote that it was the most logical way to add incremental oil egress capability through the end decade. "Our view, is that more egress will be needed, regardless of geopolitical background." (Reporting from Arathy S. Somasekhar, in Houston; Amanda Stephenson, in Calgary; editing by Edmund Klamann.)
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The Swiss inflation rate doubles to 12% in April, as petrol prices soar
Government data released on Tuesday showed that the Swiss inflation rate had doubled in April. It was at its highest level for nearly 18 months as the Middle East conflict drove 'petrol prices' sharply up. According to the Federal Statistical Office, consumer prices increased 0.6% compared to a year ago, accelerating a 0.3% increase in March. This figure was higher than expected in an analyst poll. This increase is largely due to a 17% increase in petroleum prices. The price of petrol, diesel, and heating oil increased by 0.3% month-on-month. The FSO reported that "prices for air travel?also increased, as well as those for?international?package holidays." Hotel and supplementary accommodations prices decreased as well as those for car rentals and car sharing. The Swiss National Bank declined to comment about the figures. It targets an inflation rate between 0%-2%. Even though the SNB's interest rate is currently 0%, the economists do not expect it to increase at the next SNB meeting in June. Thomas Gitzel is the chief economist of VP Bank. He said that there is no immediate need to act as the inflation 'rate is still'relatively?low. However, he did add that the SNB may increase rates in the?second half of the year. Alessandro Bee is an economist with UBS and he expects that the SNB will hold rates at zero percent for the next year. He said: "Economic growth is below average, and inflation is at a low level despite higher oil prices."
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Gulf shares fall after new attacks rattle truce
Stock markets in 'the Gulf' fell on Tuesday morning, after fresh attacks from Iran and the United States deepened the battle for the Strait of Hormuz. This was a key global energy chokepoint. Washington wants to reopen Strait of Hormuz in order to relieve the strain on the global energy supply after Iran closed the passage after the U.S.-Israel war began on February 28, 2008. The UAE has confirmed that there have been Iranian missile and drone attacks in the UAE. One of these strikes allegedly caused a fire to break out at the main oil port, Fujairah. Fujairah was critical to UAE oil exports in the Iran War as it is located at the end of a pipeline that carries crude oil from inland fields into the Gulf of Oman without going through the Strait of Hormuz. Dubai's main stock index fell 1.5% due to a 2.2% decline in the Salik Company, and a 1.8% drop in blue-chip developer Emaar Properties. Air Arabia, a budget airline, lost 2.8%. Aldar Properties fell 2% in Abu Dhabi. The benchmark index dropped 0.7%. The UAE authorities issued mobile phone alerts on Monday in Dubai and Abu Dhabi, warning of the possible occurrence of missile attacks. A survey revealed that the Iran 'war' has affected shipping, tourism and sales, as well as exports. Saudi Arabia's benchmark Index fell 0.4%. Al Rajhi Bank dropped 0.5%, and Saudi Arabian Mining Company declined 1.1%. Brent?oil for July futures fell?51cents, or 0.5% to $113.93 a barrel at 0622 GMT, after closing up 5.8% Monday. The Qatari Index fell by 0.4%.
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Kazakh airline Air Astana's loss triples as costs rise
Air Astana announced a?first-quarter 'loss? on Tuesday that widened by nearly threefold. Costs increased after the Kazakhstani carrier moved capacity away from Gulf routes due to the Iran War. The carrier reduced Middle East capacity by 51% compared to the planned levels for the quarter. Flights were stopped from Dubai, Doha and Madinah. The reallocation of capacity was also done to Southeast Asian leisure routes as well as East-West transit connections. Air Astana reported a loss after taxes of $21.1 million for the three-month period ending March 31. This is a significant increase from the $7.3 million loss the year before, due to a 19.8% rise in 'unit costs' as the company maintained a cost base to support a higher planned capacity. (Reporting by Raechel Thankam Job, Bengaluru. Editing by Subhranshu sahu and Janane Venkatraman.)
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The Swiss inflation rate doubles to 12% in April, as petrol prices soar
Government data released on Tuesday showed that the Swiss inflation rate doubled in April. It reached its highest level in nearly a year and a half due to the dramatic increase in petrol prices caused by the Middle East conflict. According to the Federal Statistical Office, consumer prices increased by 0.6% in April 2025 compared to 0.3% in March. The figure, which was in accordance with a survey of analysts, was the highest since December 2024. Fuel costs soared by 17%, which was a major factor in the increase. The price of petrol, diesel, and heating oil increased by?0.3% month on month. The FSO reported that "prices for air travel and international package holidays also increased." Prices for hotels, supplementary accommodation, car rentals and car sharing have all decreased. The Swiss National Bank, which targets an inflation rate between 0% and 2 %, refused to comment on these figures. (Reporting and editing by John Revill)
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India's Reliance gives documents to bribery investigation, and executive is released on bail
According to a court ruling, India's largest listed company, "Reliance" Industries, handed over the documents requested by federal police in an investigation into a drone import corruption case involving a senior vice president. The Central Bureau of Investigation's (CBI) request for documents was not specified in the order issued by a New Delhi Court on Monday evening. The CBI arrested a Reliance senior Vice President,?Bharat Mathur, and an official of the country's Aviation regulator last month. They were accused of?agreeing a $16,000 payment to clear drone import requests by Asteria, a Reliance subsidiary. The court also granted Mathur bail, a 64-year-old man, with a personal bond in the amount of 100,000 rupees (1,050 dollars). Both he and the official who is still in jail have denied these allegations. Reliance and Asteria, both led by Mukesh Ambani the billionaire, did not reply to questions. The CBI didn't immediately respond to an inquiry for comment. The arrest and investigation of the senior Reliance executive comes as Ambani's Jio Platforms (which owns Asteria) is preparing to file documents seeking regulatory approvals for Mumbai listing in what will likely be India's largest-ever stock offer. Reliance said previously that Mathur had been?engaged? as a consultant, and the company did not know of or approve "any such unauthorised transactions." Asteria Aerospace describes themselves as a drone technology company that offers "actionable intelligence derived from aerial data". The company provides a range of?services in the agriculture, construction and telecom sectors, as well as oil and gas, through its more than 400 drones. According to the order, CBI investigators also interviewed the co-founders at Asteria Aerospace in the course of their investigation. Reliance purchased the company in 2019 for $2.45million. The company was founded in 2011. (Reporting and editing by Aditya K. Kalra, Raju Gopalakrishnan and Abhijith G. Ganapavaram)
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UAE shares slip after fresh Gulf attacks rattle truce
UAE stocks fell early on Tuesday?trading after new attacks by Iran?and?the United States in?the Gulf deepened?the?fight for?the Strait?of Hormuz?a critical global energy chokepoint and shook an already fragile ceasefire. Washington wants to reopen Strait of Hormuz in order to relieve severe strains on the global energy supply after Iran largely closed the passage following the start of a 'war' with the U.S. The UAE has responded to reports of 'Iranian missile and drone attacks in the UAE including one which sparked fire at the main oil port in Fujairah. It said that the strikes were a serious escalation, and it reserves the right respond. Fujairah is located beyond the Strait of Hormuz and is one of only a few Middle East oil export routes that avoid the waterway. Dubai's main stock index fell 1.8%. This was due to a 2.7% slide in the Salik Company, which operates toll roads. And a 1.8% retreat in Emaar Properties, a blue-chip developer. Air Arabia, a budget airline, lost 2.6%. Aldar Properties fell 1.9% in Abu Dhabi. The index dropped 1.1%. In April, the UAE's private non-oil sector expanded at its lowest rate since February 2021, as the Iran War hammered shipping and tourism and hit sales and exports, according to a Tuesday survey.
Reports from FT claim that Iran used a Chinese spy satellite to target US military bases.
The Financial Times reported on Wednesday that Iran had secretly purchased a Chinese spy satellite. This gave the Islamic Republic the ability to target U.S. bases in the Middle East during the recent war.
According to the report, which cited leaked Iranian documents, the Islamic Revolutionary Guard Corps Aerospace Force acquired the TEE-01B satellite in 2024, after it had been launched from China.
The newspaper reported that Iranian military commanders had directed the satellite to monitor major U.S. Military sites. It cited time-stamped coordinates lists, satellite imagery and orbital analyses. The images were captured in March, before and after missile and drone strikes?on these locations.
Could not verify the report.
Earth Eye Co, the CIA, the Pentagon, China's Ministry of Foreign Affairs and Defence, and The White House did not respond immediately to our requests for comment.
According to the report, as part of the agreement, the IRGC gained access to commercial ground station operated by Emposat. Emposat is a Beijing-based 'provider of satellite data and control services with a nationwide network that extends across Asia, Latin America, and other regions.
FT reported that satellite images captured on March 13-14 and 15 showed the Prince Sultan 'Air Base 'in Saudi Arabia.
The U.S. president Donald Trump confirmed on March 14 that US planes had been?hit? at the base.
The report states that the satellite monitored Muwaffaq Salti Air Base, in Jordan, as well as locations near the Fifth Fleet Naval Base in?Manama in Bahrain and Erbil Airport in Iraq around the time IRGC claimed attacks on facilities there. Reporting by Shivani Tana in Bengaluru, Editing by Sonali and Neil Fullick
(source: Reuters)