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Sources say that a dry bulk ship was struck near the Strait of Hormuz and its crew abandoned ship.
The Liberia flagged dry bulk ship Minoan Pioneer was struck by an unknown projectile Tuesday while sailing through the Strait of Hormuz. The crew abandoned the vessel, and one seafarer went missing. The projectile is said to have struck the engine room while a fire broke out in the accommodation area. The crew is fighting the fire and needs assistance. Meanwhile, the third engineer has been reported as'missing' by British maritime risk management company Vanguard. The vessel's Greece based operator, Modion Maritime Management, did not respond immediately to a request for comment. One of the maritime safety sources confirmed that a'salvage operation' had been launched and that a tugboat equipped with firefighting gear was on the way. The majority of the crew of the ship were safely in the?lifeboat. According to the UN's shipping agency, the last ship damaged in this area was a liquefied gas tanker that was hit off the coast of Oman on 31 July. Iran has stopped most of the?traffic via Hormuz, while Washington continues to blockade Iranian shipping and ports. This disrupts a corridor which?normally transports about a fifth of global oil and LNG shipments. (Reporting and editing by Sharon Singleton, Ros Russell and Renee Maltezou)
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Singapore's marine fuel prices are higher than other regional countries due to a tighter supply
Trade sources and analysts said that the supply of low-sulphur fuel oil in Singapore has been tightened due to reduced production from refineries, and falling sweet crude imports. This is driving up refuelling prices for'shippers' at the world’s largest bunkering facility. Data showed that spot premiums for fuel oil with a maximum 0.5% sulfur content (VLSFO) or fuel oil without sulphur, topped $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 above $100 per tonne this week due to the need for timely delivery. The U.S. - Iran war has led to a rise in marine fuel prices worldwide. Emril Jamil is a senior researcher at 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 imported 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 tons, 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. Sparta Commodities' senior oil market analyst, June Goh 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, Singapore's marine fuel prices have risen more than other Asian ports due to the tighter supply of VLSFO. Trade sources claim that for prompt dates, ships refueling with VLSFO at Singapore ports cost more than China ports such as Zhoushan? and Shanghai. Sources added that VLSFO sold at other regional ports, such as Hong Kong, South Korea, and Tokyo, was also cheaper than Singapore in recent times. The bunker buyer from a shipping firm said that while ships are unlikely to divert to China to take bunkers at a lower price, they will attempt to "take more volume" in Zhoushan when already in the region. 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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China sets mandatory safety standards for autonomous vehicles
The 'China Industry Ministry' announced on Tuesday that the country has issued mandatory safety standards for vehicles equipped with highly automated or conditional driving systems. According to the new rules that will take effect July 1, 2027 an automated 'driving system' must reach a level of safety that is at least equal to a human driver who is qualified and attentive to the driving task. According to a statement from the ministry, the system must not pose unreasonable risks to road users or vehicle occupants. The standard does not apply to automated parking systems and only applies to vehicles with Level 3 or Level 4 automated driving system. Level '3 systems require that a driver be available to take over when requested. While Level '4 systems can do all driving tasks without human intervention within specified operating conditions.
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Maguire: The EV export boom in China is beginning to affect the gasoline market.
Years ago, predictions of the energy shift followed a familiar plot: Electric vehicles would gradually reduce gasoline demand in Europe before spreading elsewhere. Recent trade data suggests that the process is already accelerating in a much wider swath across the global economy. Comparing the year-to date gasoline imports with Chinese EV exports shows a striking overlap across several major economies. Australia, Brazil and South Korea have all increased their imports of Chinese EVs in the past year, while the United Arab Emirates (UAE), Canada, United States, Nigeria, and Japan reduced their gasoline imports. No single ?dataset proves causation. Imports of gasoline are affected by refinery operations and inventories as well as economic growth, government policy, and government policies. When a'same' pattern appears in multiple regions, and at different income levels, this is less a coincidence and more an early sign of structural change. WHAT ARE THE FIRST SIGNS OF DISplacement? It is possible that the global trade in gasoline is starting to reflect China's surge in EV exports. Years ago, EV adoption was treated as a separate story. They seem to be more and more connected. In 2026, the countries listed here collectively reduced gasoline imports by about a third compared to last year's same-month figures. They also increased imports of Chinese electric vehicles to record levels. Fuel traders will need to watch Chinese vehicle exports just as closely as refinery failures if this relationship continues. AUSTRALIA LEADS IN THE WAY Australia is perhaps the most obvious example. Imports of Chinese EVs grew by 200%, or $2.5 billion. Chinese brands have gained rapid market share because they offer vehicles at prices that Western competitors cannot match. The economics of electrification is increasingly favorable for consumers who face high living costs and unpredictable fuel prices. ASIA PRESSURE BUILDINGS South Korea and Japan are both automotive powerhouses. South Korea reduced its gasoline imports to around 0.4 million tonnes or 44%, while increasing Chinese EV imports to more than $1 billion. Japan has cut its gasoline imports to 0.3 million metric tons or 11% while registering a 90% increase in the purchase of Chinese electric vehicles. Chinese automakers may have a stronger global competitive position than they realize if they can establish themselves in two of the most advanced automotive markets. EVEN OIL PRODUCERS ARE JOINING THE PARTICIPATION The United Arab Emirates is perhaps the most important case symbolically. China's electric vehicle imports reached new heights, with a total of $1.4 billion, as it posted multi-year lows in gasoline imports. The conflict in the Middle East has hampered oil and product flow around the region this year, including to the UAE. The steep rise in EV sales is still important because traditionally, oil-producing countries have been viewed by many as laggards when it comes to vehicle electrification. EVs are becoming more popular due to falling prices and improved technology. If EVs are able to gain ground in an economic system based on hydrocarbons, then they can do so almost anywhere. NORTH AMERICA'S QUIET SHIFT Canada and the United States are also part of the same pattern. Canada has increased its purchases of electric vehicles from China while reducing gasoline imports. The United States cut its gasoline imports in half compared to 2025's first half and imported more than $1 billion worth of electric vehicles from China despite trade barriers. In both markets, refining dynamics play a significant role. Every electric vehicle sold replaces an upcoming gasoline vehicle, reducing fuel consumption growth that refiners used to take for granted. THE EMERGING MARKET TEST Pakistan is the largest market in the world. The conventional wisdom held that electric vehicle adoption would be concentrated in wealthy countries because they were too expensive for developing economies. Chinese manufacturers challenge this assumption. Pakistan has decreased total gasoline imports this year, while Chinese EV imports have increased by an astounding 549% on a scale of nearly $500 million. Nigeria followed a similar trend, as the Dangote refinery's increased gasoline production helped to reduce gasoline imports more than half compared to a year earlier, while EV imports more than doubled, reaching close to $72million. Nigeria has also partnered with South Korea’s development arm in order to build a EV manufacturing facility that will manufacture both cars and charging equipment?in Nigeria. If low-cost EVs gain traction in emerging markets that are fuel-sensitive, future expectations of gasoline demand growth could need to be revised. Why this Matters These countries are not only important because of their numbers, but also for their diversity. Together, they cover North America, East Asia and South Asia. They also include the Middle East, Africa, Oceania, Africa, and Oceania. They include oil exporters, oil importers, wealthy economies, middle-income countries and emerging markets. Histoically, EV adoption was dismissed as a largely European phenomena supported by subsidies and regulations. This argument is getting harder to "sustain". Consumers seem to be responding more to a simple economic calculus: gasoline is still expensive and volatile while Chinese EVs become cheaper and more readily available. The Takeaway The demand for gasoline is not going to fall. Internal combustion engines will continue to dominate the global road for many years. Major shifts are rarely the result of dramatic headlines. They begin with subtle shifts in behavior, which are first evident in trade data and market flows. One of the early signs may be the overlap between declining gasoline imports and increasing Chinese EV sales across many different economies. Fuel efficiency and slower economic growth may not be the greatest threat to long-term gasoline demand. There may be an increasing number of Chinese electric vehicles that are affordable. These are the opinions of the columnist, who is also an author. This column is great! 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 seven days a week. (Reporting and editing by Jamie Freed; reporting by Gavin Maguire)
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New York Times Business News - August 4, 2018
These are the most popular?stories from the New York Times business pages. These stories have not been?verified?and we cannot vouch for the accuracy of these stories. Boeing has been cleared by US regulators to begin delivering its Boeing 737 Max 7 jet, the smallest version in the best-selling 737 'Max family, after it made changes to the flight-control software, the pilot alert system and an engine system which prevents ice from accumulating. After being confirmed by Senate last week, Jay Clayton was sworn-in as U.S. Director of National Intelligence. Kay Granger died at her Fort Worth home due to Alzheimer's. She was a Republican from Texas and a member of the House of Representatives. She went on to become chair of?the powerful House Appropriations Committee. (Compiled by Bengaluru newsroom) (Compiled Bengaluru Newsroom)
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Lufthansa announces 2026 profit forecast following Q2 fuel cost impact on EBIT
German airline 'Lufthansa' on Tuesday announced a range of 'its adjusted operating profit (EBIT) for 2026, after the figure was more than halved due to increased fuel costs in the second quarter. The company now expects an EBIT adjusted of EUR1.7 to EUR2.2 billion (1.96-$2.53 Billion) due to a 'heightened level of uncertainty caused by high volatility in kerosene prices. Carsten Spohr, Chief Executive Officer of the company, said in a statement: "We reflect today on a challenging second quarter which was marked once again by multiple geopolitical crisis and uncertainty." "Despite the significant increase in fuel prices, we could not offset it fully despite our improvement in load factor and yield." Lufthansa predicted that the amount would be significantly higher than the previous year's level of EUR 1,96 billion. The adjusted EBIT dropped to EUR383 millions in the second quarter from EUR870millions a year ago. This was "slightly lower" than the EUR401 million analysts had projected in a company-compiled survey. Fuel costs are now expected to be EUR8.66 Billion. The company reported that capacity planning for the year remained unchanged.
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BHP faces a weekend strike as wage negotiations drag on.
A union spokesperson revealed on Tuesday that the BHP 'Port Hedland' operations in Western Australia had 'not reached a wage agreement' with BHP. This set the stage for the two-day strike to be held at the world's largest iron ore export hub this weekend. In a'statement, a spokesperson from Combined Ports Unions stated that the'meeting was productive and, while substantive issues remain to be resolved, all parties have agreed on a 'path forward, which we will follow in the coming weeks. The union has confirmed that industrial action will continue on August 8 and 9 as indicated previously. BHP operations are not expected to be affected by the action. BHP announced in a statement that it will update its proposal at the next meeting, which is scheduled for August 18. The statement said: "With another scheduled meeting and a new proposal coming, we've?made significant advances with the?Commission's help and there's no need for unions to continue their planned industrial action. Reporting by Sneha Mukherjee and Rajasik Mukherjee from Bengaluru and Melanie Burton from Melbourne. Editing by Tom Hogue.
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Qantas, Australia's airline, will buy back shares worth $52 million from Jetstar Japan.
Qantas Airways announced on Tuesday that Jetstar Japan would purchase its 33.32% share in the budget airline?in a deal worth 8.2 'billion yen (US $52.11 million). This will allow it to become a Japanese company and be rebranded under a different name. In the agreement signed by Qantas and Japan Airlines, Jetstar Japan will purchase the minority share of Qantas while the Development Bank of Japan becomes a new shareholder. Japan Airlines and Tokyo Century will keep their respective stakes. Jetstar Japan, after Qantas divestment from the airline market in Japan, will rebrand and?drop its "Jetstar' brand to strengthen their?position. Qantas says the move will allow it to redirect its capital towards Qantas' and Jetstar’s operations in Australia as well as across its international network. Qantas expects to gain an estimated A$115.49million (80.49million) in items other than underlying earnings from the share buyback, primarily in 2027. Qantas has said that it will 'continue to recognize its share of Jetstar Japan’s profits or losses' until the transaction is complete, which should be by June 2027. Jetstar Japan is a joint venture between Qantas Airlines, Japan Airlines and Mitsubishi Corp. The airline began to operate as a low cost carrier at the end of 2012?from Narita Airport, near Tokyo. The?announcement on Tuesday follows a non binding?memorandum between the parties that was revealed in February 2026.
Source: Iran wants to control the inbound and outbound traffic of Hormuz.
A senior Iranian source said that Iran wants to control inbound shipping and have visibility of outbound traffic, as well as the ability to intervene, if needed, under a new plan being discussed by Oman for reopening the strategic waterway.
Sources involved in the 'talks' said that this was "the general idea being discussed", and specified that an outbound lane will follow a route between Iran and Oman. Exit clearance would be granted by Oman only after notifying Iran.
Source: "Tehran will not change its position," source adds.
Kazem Gharibabadi, the Iranian Deputy Minister of Foreign Affairs, said that Tehran rejected an Omani proposal to divide transit routes equally between both countries. He added that such a plan would not address Tehran's concerns about security until regional stability was achieved.
The U.S. and Israeli 'war against Iran' has been stalled by the inability to control the narrow waterway that connects the Gulf of Mexico and the Indian Ocean. This is the primary route for a fifth or more of the world's oil supplies and other essential goods.
Since the end of February, the?war? has been largely blocked. (Reporting and writing by Parisa hafezi; Editing by Louise Heavens, Sharon Singleton, and Dubai newsroom)
(source: Reuters)