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Spain's Zapatero claims jewels seized worth $1.5m were a "courtesy gift"
Former Spanish Prime Minister Jose Luis Rodriguez Zapatero stated on 'Thursday' that the EUR1.3 million ($1.5million) worth of jewellery seized by police in an investigation were a personal gift he had received years ago, and never intended to be used for financial gain. Zapatero is being investigated for alleged influence peddling. He denies the accusations. This case is part of a string of alleged corruption scandals that have affected the Socialist Party and put political pressure on Prime Minster Pedro Sanchez's Government. Zapatero said in his first interview with Spanish public broadcaster TVE, that the jewels discovered during a search at his office had been "a personal gift" and that they had been kept for many years along with other family treasures. He said the jewels were unrelated to any of his political activities. Their origin and handling will be explained in full before a court. He denied that they were an attempt to enrich himself. Investigators claim that Investigating Judge Jose Luis Calama launched a separate investigation into the jewellery. Its origin is still unknown. Zapatero disagrees with the estimate of EUR1.3 million ($1.5million) by an 'auction house. Zapatero admitted that he would have 'not accepted the gift had he known what he knew now. He said, "Looking back I probably would have taken another decision." The?jewellery? is part of a larger investigation, which also alleges that Zapatero benefited from his influence in securing the state-backed bailout of?airline Plus Ultra. He denies these allegations. Zapatero's remarks on Thursday were dismissed by the opposition People's Party. PP spokesperson 'Ester Munoz' said Zapatero has "every?right? to lie but he?hasn?t answered any questions or doubts that Spaniards may have had? about the case.
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Sources say that drones attacked two oil tanks near the Black Sea CPC terminal in Russia.
Three industry sources reported on Thursday that drones had attacked two more oil tankers as they approached the terminal of 'the Caspian Pipeline Consortium,' on 'Russia's shores' of 'the Black Sea. This has further harmed prospects for exports to Kazakhstan, who uses this outlet. Authorities alleged that the closure of the terminal earlier this week, which accounts for more than 80 percent of Kazakhstan's oil exports, was due to safety concerns. This forced Kazakhstan to reduce its oil production. Sources said that the CPC should have provided oil to the HERA and ALATAU tanks. HERA, however, was set ablaze and damaged in the drone attack. ALATAU changed its course despite being?unharmed. CPC declined to comment. In the past few days, five tankers were attacked near the terminal. Satellite images show that there were no tankers at the CPC terminal in Novorossiysk, Russia on Thursday morning. Reporting by Kirsten Doovan; Editing by Kirsten D.
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Union Pacific reports higher quarterly profit due to strong freight demand
Union Pacific announced a 'rise' in its second-quarter profits on Thursday as a result of?strong freight demand? and pricing gains? that overshadowed an increase in operating expenses? U.S. Railroads have benefited from their pricing power and operational discipline. They have also improved network reliability and performance on time to support freight volumes and attract more business. West Coast Railway's net income for the second quarter was up 6.6% to $2 billion or $3.36 a share from $1.9billion or $3.15 a share compared to a year ago. The company's revenue increased 12% from the previous year to $6.86 billion. The freight revenue of the company also increased 12%, to $6.52 billion. Fuel costs are still a major challenge for transportation firms after the U.S. and Israeli strikes on Iran. These strikes have sent energy 'prices soaring, which has squeezed margins in all sectors, from trucking to logistics, and even airlines, causing one of the largest disruptions since the COVID-19 pandemic. The average U.S. gasoline price rose to $4 per gallon for the first time in?more than three years in March, marking the largest monthly increase since decades. Fuel-intensive industries are under pressure as prices remain at $4 per gallon. The shares of the company rose marginally during premarket trading.
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EU urges Houthis not to attack in Red Sea
Kaja Kallas, EU's foreign policy chief, said that Iran's Houthi ally in Yemen must stop all actions?that endanger?international?shipping?and the lives of?seafarers?. Kallas stated that recent threats by Yemeni Houthis of imposing a maritime blocade against Saudi Arabia "poses a direct threat to the regional stability and constitutes a dangerous escalated situation". The Houthis said on Thursday that they had struck two "Saudi oil tanks" as part of a blockade against Saudi Arabia. This could create a second chokepoint for global oil supply alongside the Strait of Hormuz. Kallas called such attacks "unacceptable", and said they inflamed an already fragile situation. The EU's top diplomat said that navigation must be unimpeded in the Strait?of?Hormuz as well as the Red Sea. She added that the EU's ASPIDES naval operations remained committed in protecting freedom of navigation in the Red Sea and surrounding international waters.
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American Airlines lowers its full-year profit goal due to higher fuel prices
American Airlines lowered its full-year forecast profit on Thursday, as renewed U.S.-Iran conflict pushed up oil prices anew. This increased the fuel bill. The carrier expects a loss adjusted of 65c per share and a profit adjusted of 65c per share. This is compared to its previous forecast of?an adjusted loss?of 40c to a profit?of $1.10/share. In premarket trading, shares of the airline dropped by about 4%. This move shows how unstable fuel markets have affected airline earnings forecasts, due to renewed U.S. - Iran fighting and reduced 'traffic' through the Strait of Hormuz. Before the war, about a fifth global oil and gas was shipped through the strait. After a truce was reached between Washington and Tehran, jet fuel prices dropped sharply after the spring. Oil prices have increased again since the fragile agreement collapsed in early July. This has renewed upward pressure on airline fuel. American spent an average of?$4.05 per gallon in the second quarter compared to the?$4 per gallon that was assumed by its April guidance. According to the forward fuel curve of July 21, it expects a?third-quarter average price of $3.75 per gallons. (Reporting and editing by Joyjeet Das in Bengaluru. Nandan Mandayam is based in Bengaluru.
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Maguire: Wildfires are a threat to the US power sector in multiple ways.
Wildfire season in the American West was seen as a major threat for years. It was mostly viewed as a danger to homes, trees and utility infrastructure. As smoke from fires blankets vast swathes of the nation, it's becoming a challenge for the power sector. The U.S. grid has changed. The U.S. grid is changing. Smoke from wildfires interferes with all of these. Smoke is unlikely to derail America’s renewable-energy growth, but it is a source of operational insecurity that can reduce solar production, 'complicate grid management', and add stress to transmission system at a time when electricity demand is on the rise. Here are five reasons why wildfires continue to affect the U.S. electricity system. 1. SMOKE BLOCK Sunlight is the fuel for a solar-powered power system. Smoke from wildfires reduces solar radiation that reaches photovoltaic cells by scattering it and absorbing it before the sunlight reaches the earth. The Colorado State University researchers found that the daily average solar resources around major fires in California during 2020's intense wildfire season fell from 11% to 17% for global horizontal irradiance, which conventional solar panels depend on, and direct normal irradiance dropped by 32% to 40%. Close to active fires, the impacts can be greater. In heavily affected areas, monthly average reductions for DNI and GHI reached up to 61%. According to the National Interagency Fire Center, utility-scale solar power is now a major source of electricity in states like California, Texas and Arizona, where there are several wildfires currently burning. Smoke is a weather variable that can reduce power production in entire regions as the grid depends more on solar output. 2. BAD TIMING Solar losses arrive when grids are least able to afford them. Large fires are more likely to occur in periods of extreme heat and drought, as well as when electricity demand is high. These same conditions lead to increased air conditioning use, which drives power consumption towards seasonal peaks. Smoke can also suppress solar production, just as heatwaves are increasing demand. This can create a double-hit for grid operators, as there is less renewable energy available at times when electricity demand is highest. In the past, planners of power plants were concerned about clouds that reduced solar output. They must increasingly take into account dense smoke plumes which can persist over large geographical areas for several days, if not weeks. 3. FLYING BLINDS Grid operators need more than just power. They need reliable power. Wildfire smoke is capable of rapidly changing solar output across hundreds of miles. This makes solar forecasting difficult, and forces system operators to purchase?additional reserve to maintain reliability. Smoke-related losses have been found to influence reserve requirements, electricity market outcomes and reserve requirements in a study by the National Laboratory of the Rockies. As renewable penetration increases, the problem becomes more acute. The weather is not a factor when it comes to fossil fuel generators. The output of solar panels is affected by environmental factors. Smoke adds an additional layer of uncertainty to forecasts, which previously relied on cloud cover and temperature. Wildfire season is becoming more of a grid management challenge than a simple environmental one. 4. TRANSMISSION OVERLOAD Impacts are not restricted to the power generation industry. According to research, wildfire smoke and heat can cause airborne combustion particles that reduce the air insulation properties around high-voltage transmission cables. These conditions can lead to more flashovers, faults, and automatic line trips. Intense heat can cause conductor sag, which can reduce operational margins. The U.S. Energy Transition relies heavily on the expansion of transmission systems in order to move renewable energy from remote production areas to urban demand centres. Smoky air can affect electricity production as well as the infrastructure required to deliver it. 5. Not just the Wild West The most significant shift in the economy is likely to be geographical. Wildfire smoke is now a continent-wide phenomenon. Canadian fires have spread smoke over the Midwest, Northeast, and Mid-Atlantic. Western U.S. Fires also affect areas hundreds, if not thousands, of miles away from the flames. The good news, however, is that the long-range smoke appears to have only a modest impact on average annual solar resources. Researchers found that outside areas near active fires, average reductions in photovoltaic-relevant GHI generally remain below 5%, even during major smoke years. The findings do contain an important caveat. Smoke doesn't need to be a major problem to cause operational issues. The design of electricity systems is based on managing peak periods and extreme events. It is more important to have a few days with a significantly reduced solar output in a heat wave than it is to make a small difference in the annual generation figures. Wildfire smoke is not likely to stop America's long term solar buildout, which is good news for those who support renewable energy. Researchers have found that photovoltaics resources are relatively stable in most parts of the country, even during extreme fire seasons. Smoke is another climate-driven problem for grid operators who are already struggling with rising demand, frequent heatwaves and a generation fleet that is increasingly dependent on weather. As?electricity markets have learned to manage risks from clouds, wind speeds and temperatures, they will soon be forced to include smoke in their summer power planning. Wildfire season, in a grid powered increasingly by sunlight, is both an environmental and an energy story. 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 7 days a weeks.
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QatarEnergy extends LNG Force Majeure and charters tankers until October, sources claim
QatarEnergy extended force majeure for?liquefied gas (LNG), and continued to?lease out some of their LNG tankers until mid-October. Trade sources indicated that they expected a?continuation of export disruptions? as the Strait of Hormuz remained closed. QatarEnergy has been forced to close liquefaction train, declare force majeure for deliveries, and suspend exports due to the 'Iran - war. The renewed Iranian attacks on tankers that transit the Strait this month have lowered expectations for a return of pre-war LNG flows. Qatar is responsible for about one fifth of the global LNG trade. A prolonged outage could?shorten supplies and increase prices The key Asian buyers as we head into the winter in the Northern Hemisphere. QatarEnergy, according to four sources including an official from Petrobangla, has extended the force majeure notices on LNG deliveries to buyers in South Korea and India. One source said that notices which were due to expire between August and September have now been extended to mid-September. Abdul Mannan, Petrobangla acting chairman, said that "the uncertainty about Qatari supplies?remains an issue for us". "We have had to ?turn to the costlier spot market ?and are exploring other options, including government-to-government arrangements with alternative suppliers. The disruption will add to the burden of energy subsidies for the government if it persists. QatarEnergy is expected to extend its force majeure until at least October, according to two other sources. They declined to name the sources because they weren't authorised to talk to media. QatarEnergy didn't immediately respond to an? QatarEnergy did not immediately respond to a request for comment. TANKERS AVAILABLE FOR RENT THROUGH MID OCTOBER Two shipbrokers have confirmed that QatarEnergy's QatarEnergy LNG Marketing and QatarEnergy Trading continue to lease some of their LNG tanks through October. QatarEnergy may have chartered only a few vessels out of its fleet?of almost 70?LNG carriers. However, sources in the trade said that the move could be interpreted as a sign that a prolonged disruption is expected because the vessels were leased under spot deals lasting 30?to 90?days. According to recent fixture reports at least nine QELM/QET controlled LNG carriers have been sub-chartered by third parties, including Chevron (twice), BP, EnBW Cheniere, Kansai SOCAR LMCS Trafigura, Kansai SOCAR and Kansai. She said that the?vessels were leased despite falling freight rates on a LNG?market which is rapidly deteriorating. She added that Qatar's willingness to fix ships as rates dropped suggests the country is prioritising fleet usage over waiting for market recovery. Reporting by Marwa Rashed in London, Emily Chow and Ruma Paul from Dhaka. Editing by Susan Fenton & David Goodman.
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India's IndiGo posts quarterly loss on soaring fuel costs
IndiGo, India's stop?airline, reported a?loss in the first quarter on Thursday due to?high fuel prices?caused by?the Iran war. Budget carrier reported a loss for the quarter ending June 30 of 3.82 billion rupees (about $39.6 million), compared to a profit of 21.61 billion rupees one year ago. IndiGo and other airlines that do not hedge their fuel have been battling with rising jet fuel prices. The Iran war has pushed crude oil to above $100 per barrel during the quarter, reducing margins. Revenues grew by 20% in the quarter to 245.84 billion Rupees. However, expenses increased at a faster rate of 35.1%. The largest increase was in the?aircraft-fuel expenses, which grew by nearly 86% to 108.3 Billion Rupees. IndiGo has incurred higher costs as more than 60% of its expenses are dollar-denominated. Last quarter, the airline announced that it would "explore fuel hedges". Fuel costs are hedged by airlines through financial contracts which 'lock in' prices. This helps 'cushion sudden spikes?in fuel cost and improve cost prediction.
Aramco offers additional crude oil cargoes to the Mediterranean amid Red Sea threat, sources claim
Five trading sources have confirmed that Saudi Aramco is offering additional 'crude' cargoes to be loaded from Egypt's Mediterranean port Sidi Kerir. This comes as a result of?Houthi threats against?Saudi shipping, which raises risks for Red Sea exports southbound through the Bab el-Mandeb strait.
Two sources confirmed that the cargoes are being sold on a spot-basis, and will be supplementing Aramco's long-term buyers.
Aramco supplies a few customers in Europe and North America from Sidi Kerir. The additional volumes indicate that the company wants to be more flexible in its approach after the Houthis in Yemen vowed an attack on Saudi crude exports traveling through the Bab el-Mandeb strait, at the southern 'end' of the Red Sea.
Aramco has declined to comment.
Saudi state media reported later that the vessel caught fire after the attack.
Since the Iran 'war caused disruptions to Gulf exports through the Strait of Hormuz, Saudi Arabia has increased its crude exports from its Red Sea Port of 'Yanbu.
(source: Reuters)