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Azeri BTC's daily oil exports for November are expected to increase by 3% m/m.
The differential between Brent and Urals crudes dated on Wednesday remained unchanged, but the Azeri BTC plan for exports from Turkey's Ceyhan Port in November was set at 15,3 million barrels compared to the 15.4 million barrels exported in October. Calculations showed that Azeri BTC crude exports would increase by approximately 3% per day in November compared to October. Alexander Novak, Deputy Premier of Russia, said that the country has gradually increased its oil production. It was very close to achieving the output quota set by OPEC+ last month. PLATTS WINDOW There were no bids or offerings reported on the Platts Window for Urals, Azeri BTC Blend or CPC blend crudes on Wednesday. According to sources, the U.S. delayed sanctions against Serbia's Russian owned NIS oil company that runs Serbia's sole oil refinery for a week, until October 15. The Nova Ekonomija portal in Belgrade reported this on Wednesday. (Reporting and editing by Kirsten Doovan)
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Brazil will not be introducing free public transportation soon, the chief of staff to the president says
Rui Costa said that the Brazilian president's chief of staff has no plans for the government to eliminate the public transport fares in Brazil this year or the next. This comes a day after Brazil's finance minister confirmed the results of studies assessing ways to fund the sector. Costa told a local radio station that there was no plan for this or next year. "I would like to be clear that the president has only asked for studies." A government source said that there were doubts about the logistical and the political feasibility of this proposal. Source: President Luiz inacio Lula da So has asked his economic team for an evaluation of the possible implementation of the measure. However, he is not in a hurry and doesn't intend to make it a part campaign promise. Costa said that the studies would be presented to President Obama so he could assess if the project was feasible and from where the money would come. If it is viable, the announcement will come at the right time. In an interview this week with Record TV, Finance Minister Fernando Haddad stated that the proposal will be included in Lula’s policy platform in Brazil next year when it holds its general elections. Haddad stated that "(Lula), knows this issue is very important for workers, environmental protection, and urban mobility." Investors' fears that the initiative might have negative fiscal consequences have caused the finance minister's comments to influence Brazilian markets. Reporting by Lisandra Parguassu, Writing by Fernando Cardoso, Editing by Rod Nickel
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ADNOC to pay out $43 billion as dividends to its subsidiaries by 2030
Abu Dhabi National Oil Company announced on Wednesday that six of its publicly listed subsidiaries would distribute 158 billion Dirhams ($43.02billion) in dividends between 2030 and 2035. ADNOC stated that the target amount is almost double the 86 billion dollars in dividends that the six subsidiaries collectively paid since ADNOC Distribution was listed in 2017 via an initial public offer. ADNOC has raised billions by selling stakes to its subsidiaries. It aims to be the top three petrochemical company in the world and top five gas company. Last year, it established the international investment arm XRG to help achieve these goals. ADNOC Gas and ADNOC Logistics & Services will also join ADNOC Drilling to pay quarterly dividends, providing more frequent returns for investors. ADNOC announced the news at an investor presentation of its listed subsidiaries. This was the first event that the group held. ADNOC Gas also announced that it had signed a 20 year gas supply contract with Ruwais LNG, valued at 147 billion Dirhams ($40 billion), to provide feedstock to the new LNG plant. The plant is expected to start production in 2028. It will more than double ADNOC’s LNG capacity. ADNOC said the merger between ADNOC and OMV, petrochemical companies Borouge and Borealis to create Borouge Group International is expected to be completed in the first quarter 2026. ADNOC and OMV have secured financing from global banks to finance the deal worth 56.6 billion Dirhams. This includes the acquisition of Nova Chemicals. ADNOC reported that BGI's deal with the companies will generate annual benefits worth 1.8 billion dirhams. The new entity will be the fourth largest polyolefins company in the world.
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Airbus delivered 507 jets during the first nine months
Airbus announced on Wednesday that it has delivered 507 aircraft in the first nine-month period. The fourth quarter will see 313 additional planes being delivered to meet the full-year goal of 820. In a sign that engine supply has improved, the world's biggest planemaker confirmed that it delivered 73 jets to customers in September. This was a record number for this month. Airbus' spokesperson confirmed that the number of gliders - or fully assembled aircraft waiting to be powered - had decreased from the peak of 60 reported earlier this year. However, the spokesperson did not provide a new estimate. The drop in gliders and the jump in September deliveries, from 50 last year to just 25 this month, suggest that the arrival of engines has accelerated in recent weeks after being affected by the recent strike at CFM supplier as well as the competing demand for spare engine from airlines. (Reporting and editing by Kirsten Doovan; Tim Hepher)
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Ryanair, a major Boeing customer, will see 737 production reach 48 units per month in April.
Ryanair, a major Boeing customer, said that it is confident that the U.S. aircraft manufacturer will be granted permission to increase the monthly production rate for its flagship 737 to 42 by October and to 48 by March orApril next year. Boeing, Boeing's biggest European customer, has repeatedly had to cut its growth forecasts because of delays. Boeing is currently working to stabilize production following a mid-air blowout panel on a new 737 MAX that occurred in January 2024. This exposed widespread quality and safety issues. Michael O'Leary is the Chief Executive Officer of Ryanair Group. His team regularly meets with Boeing management. He said he felt "fairly confident," that the U.S. Federal Aviation Administration will approve an increase in production monthly from 38 to 42 aircraft in October. RYANAIR - 'Pretty Confident' about progress at Boeing Will the FAA allow them to move to rating 48 next March or April? That would be a big jump. He said in an interview that he was "pretty confident" this would happen. After the panel explosion, the FAA capped 737 MAX output at 38 per months in early 2024. On September 26, it said that Boeing has not requested a rate hike, but if they did, FAA safety inspectors on site would do extensive reviews. Boeing stated earlier in the month that there were no supply chain issues that would prevent it from increasing monthly 737MAX production to 42 by the end of the year. Boeing's other major concern is when the MAX 7 and MAX 10 will be approved by regulators. Ryanair has placed 150 MAX 10 firm orders. Will they be able to get the MAX 7 or MAX 10 certified by 2026? Boeing tells us that they are now confident in the certification process. O'Leary, while praising recent achievements at Boeing and expressing his gratitude for them, said that there are no guarantees. He said, "We're confident but there is still a chance that it will be disrupted." Corina Pons is the reporter. Conor Humphries wrote the article. David Latona, Mark Potter and Mark Potter (Editing)
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As the shutdown continues, airlines prepare for a third day of flight delays
The major U.S. carriers are bracing themselves for a third consecutive day of delays as the U.S. Federal Aviation Administration continues to face staffing problems for air traffic control as the stalemate regarding funding for the government continues. Nearly 10,000 flights were delayed on Monday and Tuesday. Many of these delays were caused by the FAA slowing down flights due to air traffic controllers absences in facilities all over the country, as the shutdown entered its eighth day. The air traffic control shortages during the shutdown are more severe than during the last major government funding halt in 2019, which occurred during U.S. President Donald Trump's second term. Maryland Governor Wes Moore, along with congressional Democrats, called on Wednesday for an end to the airport shutdown at Baltimore-Washington International Airport. They noted that air traffic control officers and Transportation Security Administration agents are working without being paid. Moore, a Democrat from Maryland, stated that President Trump was unable to "close a deal" in order to keep the federal government open. Kwiesi mfume (Democrat) called for supplemental laws that would pay air traffic control during a shut down. He said that people are starting to be concerned about flying, and as a country we shouldn't get to this point. During a 35-day government shutdown in 2019, the number of controllers and TSA agents absent increased as they missed paychecks. This led to longer waits at checkpoints. The authorities were forced to reduce air traffic in New York. This put pressure on legislators to end the standoff quickly. They are not paid. During the shutdown of the federal government, 13,000 air traffic control officers and 50,000 Transportation Security Administration (TSA) officers still have to report for work. The controllers will receive a partial pay on October 14, for work done before the shutdown. Moore stated, "Our BWI employees are still here." Moore said, "They do it because they are patriots." They do it because they understand the importance of their work. Sean Duffy, Transportation Secretary, said that since the FAA shutdown began last week there has been a slight rise in sick leave. Staffing in certain areas of air traffic has also decreased by half. Air traffic control shortages have been a problem in the U.S. for over ten years. Many controllers were working six-day work weeks and mandatory overtime even before this shutdown. About 3,500 air traffic control positions are not enough to meet the FAA's target staffing levels.
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Container traffic at Rotterdam's port is disrupted by a strike by lashers for higher wages
On Wednesday afternoon, the largest seaport in Europe, Rotterdam, went on strike for 48 hours to demand higher salaries. Meanwhile in the neighbouring Belgian port's main port Flemish harbourpilots were protesting pension reforms. The FNV union said that all workers of International Lashing Services (ILS) and Matrans Marine Services (Matrans Marine Services), the two lashing firms active in the Dutch ports, stopped working at 3:15 pm (1310 GMT), and will continue their strike to the same time Friday. The FNV stated that during the two-day strike, no container ships can be unloaded or loaded at the port while lashers are securing the ship's cargo. Niek Stam, FNV's spokesman, said: "Without lashers, the entire port grinds to an halt." The Rotterdam Port Authority said that the strike would certainly affect traffic but it is too early to estimate its impact. International Lashing Services and Matrans Marine Service were not available for immediate comment. Port authorities in Belgium have reported that the maritime traffic at Antwerp-Bruges was severely disrupted for four days by Flemish harbourpilots who were protesting federal pension reforms. The port of Antwerp, which normally processes 60-80 ships per day, only processed 31 vessels on February 2, with some delayed or stranded, and others headed to other destinations.
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Ryanair CEO: airline is on track to recover from last year's 7 percent fare decrease
Michael O'Leary, the Chief Executive of Irish budget airline Ryanair, told reporters in Madrid that it believes it will recover its 7% decline in fares from 2024 during this financial year. "The traffic has exceeded the target...Fares are expected to rise by 7% over the course of the year," O'Leary stated, adding that this summer's prices were "pretty close" to those of the summer of 2023. The CEO stated that the full-year results will depend on the pricing of the company's third-quarter, which includes Christmas, and the fourth-quarter, for which the company currently has "very little visibility". He said that the economic weakness in Britain, France and Germany was causing price sensitivities. This led consumers to switch to Ryanair over flag carriers such as British Airways or Air France. O'Leary stated that "there is less demand to travel across the Atlantic to America at the moment - (U.S. president Donald) Trump alienated people. More people are choosing to holiday in the Mediterranean or Europe and this has been good for Ryanair's businesses." (Reporting and writing by Corina Poons; editing by Kirsten Doovan)
Leasing design behind Europe's EV drive at danger of breakdown
Low resale values for electrical vehicles have pushed the leasing firms that drive Europe's. automobile market to double rates over the last 3 years and some. are threatening to quit business altogether if regulators. force them to go electric too fast, industry executives say.
The dive in rates for electrical vehicle rents comes as cuts in. aids for brand-new EVs in key markets such as Germany are hitting. sales and risks stalling Europe's electrical shift, just when. Brussels wants to step on the accelerator, the executives say.
If we were pressed really, really hard, that everything has to. be electrical too soon ... my shareholders will state 'we do not want. to take the risk' and we 'd run out the market, stated Tim. Albertsen, CEO of Ayvens, one of Europe's largest vehicle. leasing firms. Let's be honest, without us, who will take the. risk?
Ayvens, which is bulk owned by French bank Societe. Generale, has a fleet of 3.4 million vehicles, of which. about 10% are EVs.
Leasing business play a critical function in Europe as 60% of. new cars and trucks of all fuel types are rented, according to computations. by environmental group Transport & & Environment based on information. from market research firm Dataforce.
When it comes to EVs, the percentage is estimated to be as. high as 80%.
According to data provided to Reuters by Dataforce, in the. 16 European markets where it can identify fleet registrations -. consisting of Germany, Britain, France and Spain - 60% of new EVs go. to corporate fleets and industrial purchasers. Professionals state those. buyers almost exclusively utilize leases and about half of the. remaining sales to private purchasers are likewise leases.
In markets with no EV subsidies for private purchasers, the. dominance of corporates is even more pronounced. In Britain and. Belgium, for instance, individuals represented just 23% and 8%. of brand-new EV purchases respectively in 2023, Dataforce stated.
The price of a lease is created to represent the. depreciation of a lorry over the normal three-year lease. duration, based on approximated resale prices, or residual worths.
But if pre-owned costs end up being lower than. expected when the lease ends, renting firms take a monetary. hit when they get the lorry back.
For numerous factors - from Tesla's price cuts to. concerns about charging facilities and battery life to the. increase of more budget-friendly Chinese EVs - pre-owned electrical cars and truck. rates have actually been sliding in Europe because striking a peak in. October 2022.
According to figures offered to Reuters by information company. Autovista, resale worths for EVs in Germany in early July were. 24% below pre-pandemic levels and 30% lower in Britain.
That's in stark contrast to pre-owned gas designs, which. remained about 15% more costly in both markets.
People have become more accepting of utilized EVs, however they've. got to be cheap, stated Gary Cambridge, a partner at secondhand vehicle. dealership Cambridge Motors in London. If they're costly, people. do not want them.
RATES MORE THAN DOUBLE
Leasing business approached decreased to provide. specific details about any losses on EV agreements from the depression. in recurring values. Indications of the electric pain have actually appeared in. disclosures by some rental business.
Hertz has actually reported writedowns of about $150 million. for the approximately 20,000 EVs it has been selling at greatly. decreased rates while Sixt stated lower recurring worths. for EVs cut its 2023 revenues by 40 million euros ($ 44 million).
Bart Beckers, deputy CEO at Arval, the leasing business owned. by French bank BNP Paribas, said losses from low EV. resale values were currently restricted in number, given EVs are. just a small portion of their overall portfolio.
However the amounts are not irrelevant, he told Reuters. Like other leaders in the market ... (Arval) has been required. already to increase rates due to the fact that of lower residual worths.
Like Ayvens, EVs just make up about 10% of Arval's fleet of. 1.7 million lorries.
Some car manufacturers have actually supplied money payment to leasing. business for dropping EV worths, market executives say. Reuters reported in May that Tesla has actually used discount rates and. other ways to alleviate losses to renting companies, including. Ayvens, though CEO Albertsen declined to state what they were.
However the executives say leasing business still bear the danger. for EV resale worths, which is why costs have actually climbed.
Leasing companies approached declined to give. specifics about price increases for EVs as the subject is delicate.
In Germany, Europe's biggest car market, information supplied to. Reuters by German think-tank CAR Center Automotive Research study program. that EV leases have jumped in the last 3 years.
In August 2021, a lease for a 45,000 euro EV expense 284 euros. per month, well listed below the 473 euros for a comparable. fossil-fuel model. Now, the cost for the EV has more than. doubled to 621 euros while the fossil-fuel automobile has fallen to 468. euros.
German EV sales fell 16.4% in the very first half of 2024 after. the government quickly axed subsidies for customers in December. and that decrease has struck the total EU trend.
Sales of fully electrical cars in the EU rose to 14.6% of. new car sales in 2023 from 6.1% in 2020 but that slipped to. 14.4% in the very first half as EV sales increased a warm 1.3%.
COMPULSORY SALES TARGETS?
Albertsen at Ayvens stated the business was now renting EVs for. longer than combustion-engine automobiles to decrease resale dangers.
It has also started to lease EVs out once or twice more at. a more affordable rate and keep them in its portfolio longer,. perhaps as much as 8 years, he said.
Such is the issue about possible losses, RVI Group, a. company based in Stamford, Connecticut that provides insurance coverage. guaranteeing a specific residual value for an asset, opened an. workplace in Europe last year to field protection inquiries.
Wei Fan, RVI's executive vice president for guest. vehicles, said he 'd seen more requests from Europe in the past. 3 years - all from leasing business and banks - than in the. previous 14 years worldwide.
He stated he expected EV rate volatility to continue for the. next five to ten years as the electrification procedure plays out.
Leasing firms state they are worried, however, that an. European Commission assessment on how to speed up EV adoption. by business fleets could lead to mandatory EV sales targets,. as this would increase the resale risks they currently deal with.
The bigger the share of EVs in their portfolios ends up being,. the larger this problem is going to be, said Richard Knubben,. director general of Leaseurope, an umbrella body in Brussels. that lobbies on behalf of cars and truck leasing and rental groups.
The European Commission's Greening corporate fleets open. public consultation, which included looking at possible measures. to accelerate EV adoption, ended on July 8.
Brussels-based Transportation & & Environment( T&E) desires the. Commission to mandate that Europe's big corporate fleets and. renting business go 100% electric by 2030.
Stef Cornelis, T&E's electrical fleets programme director,. said forcing fleets to amaze would result in more secondhand cars. for consumers and accelerate the EV shift.
A Commission spokesperson stated the assessment was implied to. identify substantive market imperfections that call for action however. was not geared at evaluating support for any type of initiative.
The bad performance of Green and centrist parties in. European elections in June has actually raised concerns about the fate. of the EU's 2035 restriction on fossil-fuel vehicles, so it is uncertain. whether the Commission would promote a 100% required.
However renting companies are taking the danger seriously.
Leaseurope said an EV required would considerably harm. renting companies and Arval's Beckers states that, at a minimum,. it would need to raise future lease rates even more.
Put simply, costs would go up, he said. That would. dissuade business fleets from continuing to lease.. ($ 1 = 0.9154 euros)
(source: Reuters)