Latest News
-
US FAA is not considering lifting the Boeing 737 MAX Production Cap
Acting Federal Aviation Administration head said he was not considering lifting a cap on Boeing 737 MAX production of 38 planes a month imposed in January 2024 after a mid-air accident involving a brand new Alaska Airlines Boeing aircraft missing four bolts. After a hearing in the U.S. House, Acting FAA Administrator Chris Rocheleau said to reporters: "Not right now." He said he wasn't discussing a change in the FAA's policy to inspect all Boeing 737 MAXs or 787 Dreamliners prior to issuing individual airworthiness certificates. Boeing has not yet commented. FAA extended for three years last week, in a first-reported decision by, a program allowing Boeing to carry out certain tasks on behalf of the agency like inspections. The FAA said that Boeing had improved. Boeing CEO Kelly Ortberg stated last week that the company is "pretty sure" it can increase its production of best-selling 737 MAX aircraft to 42 per month. He said that after the FAA has approved Boeing's increase in output to 42 aircraft per month, "we have subsequent rate increases" in our plan. These will be typically in increments five aircraft each month and spaced at least six-months apart. Boeing requested five years for the Organization Designation Authorization, but the agency decided to extend it to three instead of the five Boeing asked for in order to make sure the planemaker made "required improvement." Congress adopted sweeping reforms on December 2020 regarding how the FAA certifies aircraft after two deadly 737 MAX crashes that killed 346 and caused the plane to be grounded for 20 months. According to the Office of Inspector General, FAA officials sought in 2023 to allow Boeing’s ODA resume issuing final certificates of airworthiness for 737s and 787s. The Alaska mid-air crisis occurred before senior FAA officials could approve this request. (Reporting and editing by Franklin Paul, Marguerita Choy, and David Shepardson)
-
Cobalt Holdings cancels London IPO plans
Cobalt Holdings, a metals investor, announced on Wednesday it would not be proceeding with its planned IPO on the London Stock Exchange. This ended hopes of what could have been a major listing in the UK's capital since early-2024. The company refused to give any reasons as to why it had decided not list its shares, despite the fact that they were priced at $2.56 each. One person who was familiar with the process stated that it was stopped because there wasn't enough investor demand. The person spoke under condition of anonymity as they were not authorized by the government to speak publicly. London's biggest market debut since Air Astana was about $230 Million Listing In February 2024, London's struggle to attract new listings prompted reforms last summer to make it more competitive after Brexit with New York. In recent years, several London-listed companies have moved their primary listing from London to New York. They also chose Europe for IPOs where they think they can get better valuations. Unilever selected Amsterdam for the listing of its ice-cream business Ben & Jerry's, while fast fashion retailer Shein chose Hong Kong as its IPO. Glencore and Anchorage Structured Commodities Advisor affiliates had agreed to purchase about 20,5% of the shares offered by Cobalt in its IPO, when it was announced at first in May. Cobalt had planned to use the proceeds of its IPO to purchase 6,000 metric tonnes of cobalt metal for batteries, valued at around $200 million.
-
Enterprise Products reports that the US is set to refuse export of three ethane shipments to China
Enterprise Products Partners announced on Wednesday that it had received notification from the U.S. Commerce Department of its intention to reject their requests to export to China three cargoes totaling 2.2 million barrels. After Donald Trump, the U.S. president, imposed tariffs on China in early April, a trade war has been ongoing between the U.S. Enterprise, a pipeline and terminal operator, said last week its ethane-and-butane exports may be affected by the Department of Commerce's requirement that Enterprise apply for a licence to export to China. The company handles a lot of ethane, butane, and propane through its terminals. According to a filing by Enterprise, the Bureau of Industry and Security of the Department of Commerce informed Enterprise two weeks ago in a letter that exports of butane and ethane pose an unacceptable threat of being used for military purposes in China. Enterprise stated that it has up until 20 days to reply to the BIS notice regarding the denied export cargoes. This includes any comments or rebuttals. The BIS will not be able to change the decision unless the company receives a new notification by the BIS within 45 days of the initial notification. The BIS didn't immediately respond to an inquiry for comment. The U.S. ordered last week that a wide range of companies stop shipping goods to China, including butane and ethane, without a licence and revoked the licenses granted to certain suppliers. The liquids ethane and butane that are separated from natural gas can be used for making plastics, chemicals, and heating. The Chinese use ethane to feed their petrochemical plants because it's cheaper than naphtha. Meanwhile, U.S. producers of oil and gas need China to purchase their natural gas liquids since the domestic supply is greater than demand. (Reporting and editing by Nia William in Houston, Arathy McCartney and Georgina McCartney)
-
India instructs Turkish Airlines to comply after safety lapses
The Indian civil aviation ministry announced on Wednesday that it had ordered Turkish Airlines to comply with all aviation regulations after lapses were found in the carrier's passenger flights and cargo flights. From May 29 to June 2 the Directorate General of Civil Aviation inspected Turkish Airlines passenger and cargo flights in four Indian cities. The aviation ministry released a statement. DGCA approval is required for explosives to be transported across India. The ministry stated that the goods had not been declared. Turkish Airlines didn't immediately respond to an inquiry for comment. IndiGo, the Indian airline, announced last week that it would end its lease agreement with Turkish Airlines on August 31. After Turkey supported Pakistan in the recent conflict, the agreement was criticized in India. The aviation ministry stated that "further follow-up checks will be carried out as needed to ensure continuous safety supervision." The DGCA carried out inspections in Delhi, Hyderabad, Chennai and Bengaluru.
-
Ukraine releases new footage showing drone attack on Russian strategic Bombers
Ukraine released new video footage of its major strike on four Russian air bases on Wednesday. The footage shows attack drones destroying numerous Russian strategic bombers, and landing on 2 airborne early warning control planes. Ukrainian authorities claim that Sunday's attack using 117 drones on the airfields resulted in 41 military aircraft being damaged. This number has not been independently verified. Satellite images show that several bombers have been destroyed or badly damaged in one base. The Security Service of Ukraine released new drone footage showing drones landing on dome antennae of the two A-50 military spy aircraft, of which only a few are in the Russian fleet. The drones were not shown detonating in the video. The locations of the four air bases shown in the video, including Ivanovo Airbase where the A-50s are stationed, could be independently verified. Could not independently verify the date of filming. In a press release, the SBU stated that the aircraft hit included the A-50 strategic bomber as well as the Tu-95, Tu-22M3 supersonic bomber and Tu-160 strategic bombardier. Several of these military aircraft are part the Russian airborne nuclear deterrent. They can also be equipped with cruise missiles, which Russia has been using to bombard targets in Ukraine ever since it invaded on a full scale in February 2022. The SBU stated that "a significant part is irretrievably damaged, and it will take years to rebuild some damaged aircraft." According to the Russian Defence Ministry, Ukraine attacked airfields located in Murmansk and Irkutsk regions, Ivanovo and Ryazan, and Amur. The attacks were repulsed in these last three locations. It said that several aircraft caught fire in the Murmansk-Irkutsk region. On Wednesday, Russian officials claimed that the West was involved in the Ukrainian attacks inside Russia. They also said that the military options are "on the table". The attack has boosted Ukrainian morale following months of relentless Russian battlefield pressure, and numerous powerful drone and missile strikes by Moscow forces. In his remarks to senior Russian officials, Vladimir Putin did not mention the airbase attacks in his condemnation of other Ukrainian attacks against Russian targets at the weekend. Influential Russian military bloggers, however, have accused the Russian authorities, particularly the Aerospace Command, of complacency and negligence for allowing nuclear-capable aircraft to be targeted. Volodymyr Zelenskiy, the Ukrainian president, said that he had decorated several SBU officers in recognition of Sunday's operations. (Reporting and editing by Gareth Jones, Aleksandar Vaovic, Tom Balmforth and Anastasiia Menko)
-
US Army helicopters at Pentagon still suspended after close call
The Federal Aviation Administration's acting chief said that U.S. Army helicopter flight around the Pentagon remains suspended. Two passenger airline flights had to abort their landings at Reagan Washington National Airport on May 1, due to a Black Hawk helicopter nearby. The acting FAA administrator Chris Rocheleau said at a U.S. House of Representatives hearing that, as the agency revisits its letter of agreement with military, it has barred the Army's training flights or priority transport flights. Rocheleau stated that "they are not flying at this time." "We have shut them down until we are comfortable with what we call the new rules of road." Last month, the Army informed the Associated Press that the military air traffic controllers had lost contact with the helicopter as it approached the Pentagon during the flight on May 1, which disrupted two passenger planes. Due to a nearby Army helicopter, Delta Air Lines Flights 1671 and 5825 (an Embraer 170 which had departed Boston) were forced to do go-arounds at 2:30 p.m. Last month, the FAA announced that since March 2022, a hotline between the Pentagon and air traffic control at Reagan is inoperable. A Black Hawk helicopter and an American Airlines passenger plane collided on January 29 near Reagan, killing at least 67 people. After the accident, the U.S. Army announced on May 5, that helicopter flights near the Pentagon would be suspended. Ted Cruz, Texas's Senate Commerce Committee chair, said last month the FAA was preparing to suspend its letter of agreement with Army. This agreement allows the Army to fly without needing to request clearance each time. Bill Berkrot and David Shepardson edited the article.
-
Official: US FAA is not considering lifting the Boeing 737 MAX production limit at this time.
Acting Federal Aviation Administration head said he was not considering lifting a cap on Boeing's 737 MAX production of 38 planes per monthly imposed in January 2024 after a mid-air accident involving a brand new Alaska Airlines Boeing aircraft missing four bolts. After a hearing in the U.S. House, Acting FAA Administrator Chris Rocheleau said to reporters: "Not right now." He said he wasn't discussing a change in the FAA's policy to inspect all Boeing 737 MAXs or 787 Dreamliners prior to issuing individual airworthiness certificates. FAA extended for three years last week a program that lets Boeing perform certain tasks on behalf of the agency, such as inspections. The FAA said the planemaker made improvements. (Reporting and Editing by Franklin Paul, David Shepardson)
-
Source: Alternative Transbalkan Gas Route excludes Russian Supply to Ukraine
A Ukrainian industry source familiar about the issue said Wednesday that an alternative Transbalkan route to import gas for Ukraine was developed, which allows for cheaper imports of Russian-origin natural gas. Source: The route is operational as of June. It could allow Ukraine imports up to 1 billion cubic metres (bcm), including 100 million cubic metres (mcm), in the lucrative period from June to October. Ukraine imports its gas through Poland, Slovakia, and Hungary. Ukraine, once one of the biggest importers of Russian Gas, has stopped buying it since 2015. In January, Ukraine stopped transiting Russian gas to Europe through its territory. Ukrainian officials had previously stated that Kyiv wouldn't allow gas purchases from countries at war with Ukraine. Last month, Ukraine's energy regulator approved a mechanism for gas imports that will eliminate the high transit charges of gas transported through the Transbalkan Pipeline from Greece to Ukraine. The source stated that "the planning (of the gas shipping via Transbalkan Pipeline) took into consideration the condition that natural gases can be supplied to Greece's entry point from Greek LNG Terminals or through the TAP pipeline using Azerbaijani Gas or reverse flow from Italy." He added, "This minimizes the possibility of gas being transported from Russia." All parties involved in the project were on board with the decision (to exclude Russian gas). Gas imports are expected to reach 7 mcm per day. He added that "the cost of this route can be competitive with other routes for gas imports into Ukraine." Analysts and former officials estimate that the imports will be around 6.3 billion cubic meters. The Kyiv Government has stated that Ukraine must import at least four billion cubic metres of gas to meet the needs for the 2025/26 heating seasons. (Reporting and Editing by Bernadette B. Baum)
CANADA-CRUDE-Discount on Western Canada Select heavy crude widens; wildfires affect production
On Monday, the discount between West Texas Intermediate (WTI), North America's benchmark futures contract, and Western Canada Select (WCS), widened but remained within historically tight ranges as wildfires affected Canadian crude oil production.
WCS for Hardisty, Alberta delivery in July settled at $8.80 per barrel below the U.S. benchmark WTI according to brokerage CalRock. It had settled at $8.50 below the U.S. standard on Friday.
According to calculations, wildfires in Canada have disrupted the production of more than 344,000 oil sands barrels as of Monday. This is about 7% of Canada’s oil output.
Two trading sources reported that Cenovus Energy, a Canadian oil company CVE.TO, declared force majeure in its supply of Christina Lake dil-bit heavy oil due to wildfires burning in Alberta.
Rory Johnston is an energy analyst and the founder of Commodity Context, a newsletter that provides market information. He said Canadian heavy crude was trading at "crazy tight discounts" in recent months. The opening of the Trans Mountain Pipeline expansion one year earlier, which increased the country's capacity to export oil, is partly responsible for this.
* Oil prices rose nearly 3% globally on Monday, despite the fact that OPEC+ continued to increase production, despite President Donald Trump's latest tariff threats weighing on the U.S. Dollar.
The bulk of trading in the Canadian crude oil market takes place from the 1st of every month to the day before pipeline nominations due.
(source: Reuters)