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Russian Urals prices surpass western price cap on Brent for the first since April
Calculations based on data from traders showed that the price of Russia's Urals crude rose above the $60 limit set by Western nations, as the Brent price surged last week due to rising tensions in Middle East. The oil prices rose on Friday, and ended 7% higher after Israel and Iran exchanged air strikes. This fueled investor concerns that the conflict could disrupt Middle East oil exports. As part of a wide range of sanctions, the U.S. and other Group of Seven nations, including Australia, imposed a price cap on Russian oil exports by sea in late 2022. According to the cap's terms, Russian oil suppliers are only allowed to use Western services like shipping and insurance if the price of Russian crude falls below $60 per barrel. The European Union's latest initiative is to lower price caps for Russian oil to $45 a barrel. This will complicate oil trade in Moscow. Calculations show that the price of Urals oil loadings at Russia's Baltic Sea and Black Sea ports was $62-63 per barrel on a "free-on-board" basis last Friday, excluding charter costs and insurance. Calculates Urals oil prices using the data from the previous business day. Calculations showed that this is the first time since April 2 that the price of Russian Urals oil was above $60 per barrel. The Urals price is tied to Brent, meaning it changes with the value of the benchmark.
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Interparking acquires Spanish parking operator Saba with EU approval
In a Monday statement, the European Commission announced that it had approved Interparking of Belgium's acquisition of Spanish parking operator Saba Infrastructuras. The Commission stated that this transaction will not cause any competition concerns as it has a limited impact on the market where these companies operate. The companies, which have been in discussions to combine their businesses to become a major European actor since November 2022, announced plans to merge last October without disclosing the value of the transaction. The statement said that the Belgian insurer AG property subsidiary would remain as the majority and controlling shareholder of the new group, along with Dutch pension fund APG (and Spanish holding company Criteria). Criteria is the investment arm of La Caixa Foundation and the largest shareholder in Caixabank. Interparking Group's headquarters will remain in Brussels. Interparking announced on its website that the combined entity would operate more than 2,000 parking lots in 600 cities and 16 countries. (Reporting and editing by Benoit van Overstraeten; GV de Clercq)
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After Israel's attack on Iran, airlines suspend flights
International airlines have stopped flights to certain Middle East destinations following Israel's attacks against Iran. Here are some airlines that have canceled flights from and to the region. AEGEAN AIRLINES Aegean Airlines, a Greek airline, announced that all flights from and to Tel Aviv, including the early morning flight of July 12, had been cancelled. AIRBALTIC AirBaltic, a Latvian airline, has announced that it will cancel all flights from and to Tel Aviv up until the 23rd of June. AEROFLOT After Israel's attack on Iran, Aeroflot announced that it has cancelled flights between Moscow-Tehran and changed other routes in Middle East. AIR EUROPA Spanish airline cancels flights from and to Tel Aviv through July 31. AIR FRANCE-KLM Air France has suspended flights to and out of Tel Aviv, until further notice. KLM announced that all flights from and to Tel Aviv have been cancelled until July 1. Some flights from, to or via Beirut could also be affected. Transavia has announced that it will not be operating flights between Tel Aviv and Amman, or Beirut and Beirut. AIR INDIA Air India announced that several flights are either being diverted to another destination or returning back to their original origin. Israeli Airlines announced that all flights will be cancelled until June 21, 2018. BLUEBIRD AERWAYS The Greek airline announced that all flights between June 13 and 21 (inclusively) had been cancelled and new bookings are not allowed for those flights between June 22 to June 30 until security is clarified. DELTA AIR LINES Travel to, from or through Tel Aviv could be affected between June 12 and July 31. EL AL ISRAEL AIRLINES El Al Israel Airlines announced that it has cancelled all of its flights for EL AL, Sundor and EL AL through Thursday, June 19, ETIHAD AERWAYS Etihad Airways has announced that it will cancel flights between Abu Dhabi, Tel Aviv and Tel Aviv from June 22 to August 22. EMIRATES Emirates has temporarily suspended flights to Jordan (Amman), Lebanon (Beirut), Iran (Teheran), and Iraq (Baghdad, Basra) until June 30, and said it will suspend all flights until June 22. FLYDUBAI Flydubai has suspended its flights to Jordan, Lebanon, Minsk, St. Peterburg, and Iran until 20 June. ISRAIR Israeli Airlines has announced that all flights to and from Israel have been cancelled until June 30, 2018. ITA AIRWAYS Italian Airlines announced that it will extend the suspension of Tel Aviv flight until July 31. This includes two flights scheduled for August 1. LUFTHANSA GROUP Lufthansa announced that it has suspended all flights from and to Tel Aviv, Tehran and Amman until July 31, and to and and from Beirut, Erbil and Amman until June 20, and said that they have suspended all flights from and to Tel Aviv until July 31. Lufthansa added that they would avoid Iranian, Iraqi and Israeli skies for the time being. PEGASUS Turkish Airlines announced that they had canceled flights to Iran and Jordan up until June 16, and flights to Iraq until June 19. The airline said that it will only operate flights into Lebanon during daylight hours. QATAR AIRWAYS Qatar Airways has temporarily suspended flights to and from Iraq Iran and Syria. RYANAIR Ryanair has announced that it will cancel flights from and to Tel Aviv up until September 30. Romania's flag airline said it has suspended all commercial flights from and to Tel Aviv, as well as to Beirut and Amman, until June 20, and until June 23, respectively. TURKISH AIRLINES Turkish Airlines, along with other Turkish operators, have cancelled flights until June 16 to Iran, Iraq and Syria, according to the Turkish transport minister. UNITED AIRLINES According to the U.S. airline, travel from and to Tel Aviv could be affected between June 13, and August 1. WIZZ AIR Wizz Air has suspended all flights to and from Tel Aviv, Amman and Jordan until 20 June. (Reporting and compilation by Bureaus, Elviira Louma, Tiago Brancao and Matt Scuffham, Editing and Alison Williams).
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After Israel's attack on Iran, airlines suspend flights
International airlines have stopped flights to certain Middle East destinations following Israel's attacks against Iran. Here are some airlines that have cancelled flights from and to the region. AEGEAN AIRLINES Aegean Airlines, a Greek airline, has cancelled all flights from and to Tel Aviv, including the early morning flight of July 12. It also cancelled all flights from and to Beirut, Amman and Erbil, up until the morning arrivals on June 28. AIRBALTIC AirBaltic, a Latvian airline, said that all flights from and to Tel Aviv were cancelled until June 23. AEROFLOT After Israel's attack on Iran, Aeroflot announced that it has cancelled flights between Moscow & Tehran and changed other routes throughout the Middle East. AIR FRANCE-KLM Air France has suspended flights to and out of Tel Aviv, until further notice. AIR INDIA Air India reported that multiple flights are either being diverted to another destination or returning back to their original origin. Due to the closure of Israeli Airspace, Israeli Airlines has cancelled all flights until June 14, DELTA AIR LINES The U.S. airline warned that travel to, from or through Tel Aviv could be affected between June 12 and June 30. EL AL ISRAEL AIRLINES El Al Israel Airlines announced that it has cancelled all flights for EL AL Sundor until Thursday, June 19, 2019. ETIHAD AERWAYS Etihad Airways has announced that it will not be operating flights between Abu Dhabi, Tel Aviv and Tel Aviv after June 22. EMIRATES Emirates has temporarily suspended flights to Jordan (Amman), Lebanon (Beirut), Iran (Teheran), and Iraq (Baghdad, Basra) up until Sunday, June 22. FLYDUBAI Flydubai has suspended flights from: Jordan, Lebanon, Minsk, and St. Peterburg, until June 16, and Iran, Iraq and Israel, until June 20, and Syria, Iran, Iraq and Israel. ISRAIR Israeli Airlines announced that they would cancel all flights to and from Israel up until June 30, 2009. ITA AIRWAYS Italian Airlines has announced that it will extend the suspension of Tel Aviv flight until July 31, 2019. LUFTHANSA GROUP Lufthansa announced that it has suspended all flights from and to Tel Aviv, Tehran and Amman until July 31, and between Erbil, Beirut and Amman until June 20. Lufthansa said it will also avoid Iranian and Israeli airspace until further notice. PEGASUS Turkish Airlines announced that it has cancelled all flights to Iran and Iraq until June 19, and flights to Jordan and Jordan until the 16th of June. The airline said that it will only operate flights into Lebanon during daylight hours. QATAR AIRWAYS Qatar Airways has temporarily canceled flights to and from Iraq, Iran and other countries. The flights to Damascus Airport in Syria will be cancelled up until June 14. RYANAIR Ryanair has announced that it will cancel flights from and to Tel Aviv up until August 31. Romania's flag airline said that it has suspended all commercial flights from and to Tel Aviv, Beirut, and Amman, until Monday, 16 June. TURKISH AIRLINES Turkish Airlines, along with other Turkish operators, have cancelled flights until June 16 to Iran, Iraq Syria and Jordan, according to the Turkish transport minister. WIZZ AIR Wizz Air has suspended all flights to and from Tel Aviv, Amman and Jordan until the 20th of June. (Reporting and compilation by Bureaus, Elviira Louma, Tiago Brancao and Matt Scuffham, Editing and Alison Williams).
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The proposed EU curbs could reverse the trend.
The availability of tankers in late May and early June allowed for a further reduction in freight rates from Russian oil to India. However, this trend could reverse itself if the proposed price cap by Europe is implemented. The European Union proposed a new sanctions package against Russia for its actions in Ukraine, and suggested that the price cap of Russian crude oil be lowered from $60 per barrel to $45 per barrel by the Group of Seven. The G7 and EU imposed a $60 cap on Russian crude oil by the end of 2022. This would restrict access to Western shipping services and insurance for purchases above the limit in an effort to reduce Moscow's revenue. As the price of Russia’s flagship Urals oil has dropped below the cap, Western owners have been able return to the Russian oil market. Since early April, the price of Urals crude oil in Russian ports has stabilized below $60 per barrel. This allows more Western shipping companies to resume services, especially Greek shipping companies. It also increases tanker availability, which puts pressure on freight rates. On Wednesday, the price of Urals oil shipped from the Baltic Sea Port of Primorsk stood at $54.72 per barrel. Costs of shipping Urals oil to India from Baltic ports including Ust-Luga have fallen to $5.5-$5.7 million, down from an average $6-million-per-one-way shipment in April-May and $8-million in early March. After the new round of U.S. energy sanctions announced in January, Russian crude shipping prices rose dramatically. Russian oil sellers had to find new tankers to replace the ones that were hit by sanctions. The freight rates are still higher than in January when shipping Russian crude oil from the Baltic ports into India cost between $4.7 and $4.9 per shipment. Reporting by
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Air India Dreamliner returns back to Hong Kong following technical issue mid-air. Source says
A source with first-hand knowledge of the situation said that an Air India Boeing 787 Dreamliner bound for New Delhi was returned to Hong Kong on Monday as a precautionary move after the pilot suspected there was a technical problem mid-air. This incident occurred just days after an Air India flight from Ahmedabad to London, which used the same type Boeing aircraft, crashed moments after takeoff in the western Indian town of Ahmedabad, killing 241 out of 242 passengers on board. Sources with knowledge on the matter confirm that the Dreamliner aircraft, which flew Air India flight AI315 from Hong Kong to Singapore on Monday, is currently undergoing inspections. Flightradar24 shows that Flight AI315 departed Hong Kong at 12 p.m., and landed a little over an hour after. Boeing and Air India have not responded to requests for comments on the Hong Kong-New Delhi flights. (Reporting and editing by Abhijith Gaapavaram, Tanvi Mehta and YP Rajesh; Tom Hogue and YPrajesh)
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Thai Airways exits debt restructuring program
Thai Airways International, the flag carrier of Thailand, announced on Monday that it would be ending its debt restructuring program and that it expects to resume trading on its stock exchange by early August. In 2020, Thailand's national carrier went through a restructuring protected by bankruptcy. It reduced its staff by half and trimmed its fleet. The airline said that since 2023 it has been making a profit continuously every quarter. This is a dramatic turnaround for a carrier which had suffered losses almost every year since 2012. Thai Airways stated that the airline owes creditors 190 billion Baht (5.86 billion dollars) according to court orders. Of this amount, 94 billion Baht has been paid and the rest will be paid in the coming decade. The statement stated that "the company intends to increase its international aviation capacity and push Thailand towards becoming a regional air transportation hub."
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US aircraft carrier heading west from S.China Sea amid Middle East Tensions
The USS Nimitz aircraft carrier left the South China Sea heading west on Monday morning, according to ship tracking website Marine Traffic. This was after a reception planned for its port call in central Vietnam had been cancelled. Two sources, one of whom is a diplomat, have confirmed that the official reception scheduled for June 20 has been cancelled. According to one source, the U.S. Embassy had informed him of the cancellation due to an "emergent operational requirement". The embassy did not immediately respond to an inquiry for a comment. According to the website for the Commander of U.S. Pacific Fleet, the Nimitz Carrier Strike Group carried out maritime security operations last week in the South China Sea as "parts of the U.S. Navy’s routine presence in Indo-Pacific." Marine Traffic data showed that the carrier was heading west on Monday morning in the direction to the Middle East where Israel and Iran are escalating their battle.
Travel disruptions around the world are increasing demand for premium insurance
As flight delays, cancellations and other disruptions are on the increase, businesses and leisure travellers are becoming more discerning about the type and level of insurance that they purchase.
Travel disruptions have increased around the globe since 2019. This is due to COVID-19, extreme temperatures, volcanic eruptions or military conflicts, as well as computer problems, fires, and jet safety issues.
Air traffic controller shortages in the U.S. and outdated technology have led to significant disruption. In May, equipment failures, runway construction, and staffing shortages led to flight cancellations, delays, and diversions at Newark Liberty Airport, one of New York City's main airports.
Israel launched an attack on Iran last Friday, forcing airlines to cancel or divert tens of thousands flights in order to avoid a conflict.
Many insurance policies have a variety of exclusions.
According to nine interviews conducted with travel executives, insurers and analysts, travellers are increasingly opting for higher-end policies that come at higher prices to protect themselves.
Duncan Greenfield Turk, CEO Global Travel Moments in London, said: "We are in a time that is quite unstable, so people cancel more often than before."
According to Allianz Partners, German insurers, European tourists increased their travel insurance purchases for this summer by 3 percent compared to last year.
Squaremouth, which is the largest travel insurer in the U.S.A., saw a global increase of 34% in "Cancel for Any Reason" coverage.
Travel for Allianz Partners CEO Anna Kofoed said that British and U.S. tourists are willing to pay more to protect their vacation.
According to InsureMyTrip, data shows that from January to April 2024, 32% more travelers worldwide requested a quote for travel insurance.
Businesses seek travel advice
As a result of President Donald Trump's announcements on immigration restrictions, including stricter visa vetting and travel bans, there has been an increase in demand for tailored travel advice.
World Travel Protection, a global company that advises on travel risks and provides advice to businesses, has reported an increase in U.S. citizens being detained by U.S. border officials who inform them their documents are no longer valid due to changes in visa rules.
Frank Harrison, WTP's regional director of security for the Americas, said that WTP worked with U.S. Government representatives to assist these individuals in returning home.
Harrison stated that "we're seeing an increase in the number of organizations who come to us to ask how to navigate within the U.S. business landscape."
According to Steven Diehl, CEO of CIBT which offers non-legal immigration and visa guidance, the number of inquiries from companies looking to better prepare employees for travel in the U.S. has increased by 50% since November.
HIGH-END PRODUCTS OF INSURANCE EMERGE
Parametric insurance is one of the newer areas of business. It pays out compensation after an "trigger event" such as a delay in a flight without the need for a claim.
In some countries, parametric insurance has been a big hit during the COVID-19 epidemic. More insurers have started to offer this product in the last few months.
Mawdy, the Irish unit of Spanish insurer Mapfre, found that when instant compensation is included in travel insurance packages, about 11% more customers choose higher-tier policies.
This burgeoning industry has also attracted the attention of travel destinations.
Marriott Bonvoy offers weather insurance for villa rentals and waterparks at the time of booking. This automatically pays out in case it rains.
Sensible Weather is one such provider. It reported that its weather guarantee was added to 30% theme park bookings, and 10% of bookings for higher-valued accommodation, when it offered them in 2024.
Squaremouth launched in March a new cruise insurance product that includes benefits like coverage for missing a port of call or being confined to a cruise ship.
"Everyone wants to make it clear that every trip (...) will have different concerns, whether it is hurricanes, blizzards, or what is happening with air traffic control," said Suzanne Morrow CEO of online insurance broker InsureMyTrip. (Joanna Pluncinska in London and Henry Gale, Doyinsola in New York. Editing by Josephine Mason & Elaine Hardcastle).
(source: Reuters)