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Gulf oil markets reduce prices
The major Gulf stock markets fell on Thursday morning, mainly due to persistently low oil prices and a series of disappointing corporate earnings reports. Oil prices, which are a major catalyst for Gulf financial markets, fell on Thursday. This was a continuation of the losses that were made in the previous session. A report showing increased crude inventories at the U.S. confirmed concerns that global supplies would be more than enough to meet the current fuel demand. OPEC's report on Wednesday showed that the world oil market would see a small excess in 2026, after OPEC+ production increased and other producers supplied more fuel. This is a change from their earlier projections, which predicted a deficit. Saudi Arabia's benchmark oil index fell 0.9%, mainly due to a drop of 0.9% in the Saudi Aramco. Salik Company's 1.8% decline weighed on Dubai's main stock index, which fell 0.5%. The toll operator posted a higher third-quarter profit year-over-year, but a decline sequentially from the previous quarter. Presight AI Holding, which reported a quarterly profit increase, plunged 9.8% despite the index falling 0.4% in Abu Dhabi. The Qatari Index fell 0.4% and the Qatar Islamic Bank lost 1.3%. (Reporting and editing by Topra Chopra in Bengaluru, Ateeq Sharif in Bengaluru)
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Brazil's ag exchange has completed the country's 1st physical grains derivative settlement for 15 years
The Brazilian Agricultural Exchange (BAB), announced on Thursday, had recorded the first physical settlement in Brazil of a grain derivative in over 15 years. Corn was delivered to a railroad terminal in Rondonopolis in Mato Grosso. Eric Cardoni, chief executive of BAB, a platform for agricultural trading that started operations in September, said that the volume of trading at BAB increased dramatically last month. Cardoni stated that the first delivery of corn was 1,800 metric tonnes, which is equivalent to three contracts. Cardoni also said that another 9,000 metric tons (15 contracts) will be delivered later this month. The market appreciated the physical delivery. "There's a lot of interest in using the settlement method for these first contracts," said Cardoni. He is a former grain, oilseed and trading director with Louis Dreyfus Company. BAB was created to connect the derivatives markets directly with the physical grain markets in the region. Its main investor is logistics firm Rumo. Cardoni stated that BAB is interested in physical deliveries, which are no longer available in grain derivatives traded at the B3 exchange. This is because participants can manage both risk and sales using the same instrument. He added that the other derivative contracts available for grains in Brazil were settled by financial settlement. Cardoni explained that BAB's platform allows for bilateral negotiations between buyers, sellers and removes the so-called basis risks -- the price difference between the Brazilian market versus Chicago Board of Trade Futures. BAB stressed the importance of local hedging tools in light of global volatility, such as Chinese tariffs on U.S. soya beans that impact Brazilian premiums. To simplify the hedging process in Brazil, the platform offers standard contracts that are traded in Reais. Cardoni added that other contracts are available for December delivery. After initial trades in Septembre, Cardoni noted, volume increased 14-fold by October. (Reporting and writing by Roberto Samora, Sao Paulo. Editing by Brad Haynes & Matthew Lewis.
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Sources say that the Orsk refinery in Russia was closed by a technical problem before the drone attack on Ukraine.
Three industry sources told Reuters that the Russian Orsknefteorgsintez refinery, which is a mid-sized refinery, was shut down due to an fire on November 10, a day before Ukrainian drones targeted it. According to one source, equipment caught on fire during Monday's upgrade work. Sources said that drones had attacked the plant on Tuesday, which is located 1,900 km (1,180 mi) east of Ukraine's border. The Ukrainian military has also confirmed that it hit the Russian oil refinery in Orsk, located in Orenburg Region, on Tuesday. Industry sources claim that the drone caused damage to some utility systems at the plant. Forteinvest, the company that owns this refinery, has not responded to a comment request. This year, Ukraine launched a wave of drone strikes deep into Russia, aiming to knock out refineries and depots as well as pipelines. The attacks targeted Moscow's main source of funding the Ukraine conflict. The nameplate capacity of Orsk refinery is 5.76 million metric tonnes per year or approximately 115,200 barges per day. According to industry sources, it processed 4.2 millions tons of crude oil last year, producing 1.8million tons of diesel and 600,000 tons gasoline. It also produced 500,000 tons bitumen, and 200,000 tonnes of fuel oil. Conor Humphries, Conor Humphries (Reporting)
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Source: India opens new military airbase near the border with China
A defence official confirmed that India's chief of air force made the first landing of a transport aircraft capable of fighting jet operations at a new base near the disputed Himalayan boundary with China. The move coincides with a warming of relations between the nuclear-armed neighbors, following an historic pact in October last year to ease tensions along their de facto borders and a trip to China this year by Prime Minister Narendra modi. The official who requested anonymity because the issue is sensitive added that Air Chief Marshall A. P. Singh landed his C-130J aircraft at Mudh-Nyoma, a station of the Ladakh air force perched at a distance of approximately 13,000 feet (4000 m). The Indian Air Force (IAF) and the Ministry of Defence did not respond immediately to a comment request. The new airbase is the third key station in the region, and it's only 30 km from the Line of Actual Control with China. "This new airfield, which is capable of fighter operations will present a new challenge to both our adversaries," wrote retired Air Marshal Sanjeev Kapoor on X. He was referring to China and Pakistan, two neighbouring countries. He added that China also has an airfield of similar height. Indian analysts and officials claim that despite the thaw in relations, there is still mistrust between China and India. The Indian Army chief pointed out this year the continued increase of both sides' troop presences and infrastructure along the border. India and China have a border of 3,800 km (2400 miles), which is poorly delineated. It has been disputed ever since the 1950s. In 1962, they fought a short but brutal war. After a border clash that resulted in death, the two countries' ties soured. Their 2024 agreement brought about a thaw, and some restrictions were eased, allowing direct flights and bi-directional visits to resume. (Reporting and editing by Clarence Fernandez in New Delhi)
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Poste Italiane exceeds profit forecast and increases interim dividend
Poste Italiane, the state-backed financial conglomerate, announced on Thursday that its operating profit for the third quarter rose by 8.5%, exceeding analyst expectations, thanks to a strong performance from its financial services division. Poste has a number of divisions, including insurance, financial, and digital payments, in addition to its traditional mail-and-parcels business. Its adjusted earnings before tax and interest (EBIT), which is the profit earned before taxes and interest, rose from 856 million euro ($998 millions) during the period July through September. This was well above the 827 million euro analyst consensus that was compiled by a company. Poste has increased its interim dividend from 40 cents to 31% since it was listed on the bourse in 2015. Payment is due on November 26. The total revenues for the third quarter increased 3.9%, to 3.2 billion Euros. This is in line with analyst consensus. Poste Italiane has become the biggest single investor in Telecom Italia, the phone group. The two companies have partnered in a retail offer of energy and a cloud services partnership. Matteo Del Fante, CEO of Poste Italian, said that any future partnerships with TIM will be announced once they are finalised. Poste has tripled its market value in the last decade. Its shares are trading at record levels and have risen 58% this year. Italy owns still 65% of Poste. The government of Prime Minister Giorgia Melons considered, and then abandoned plans to sell an additional stake in the company. $1 = 0.8575 Euros (Reporting and Editing by Elvira pollina)
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SBM Offshore raises its profit forecast for 2025 for the second time
SBM Offshore, a Dutch oil and gas service company, increased its earnings forecast for the second time in a row on Thursday as its operating performance improved. The Amsterdam-listed firm reported a 26% rise in its directional revenues to $3.6 billion during the third quarter. This was aided by a 90% increase in turnkey business, which builds and sells vessels for oil and gas companies. It said that its core earnings (EBITDA), which are based on a directional basis, would be around $1.65bn this year. The company had raised It was over $1.6 billion in August. The company has not changed its revenue forecast for 2025, which is expected to exceed $5.0 billion. SBM reported that its fleet uptime had improved to 99.4%, and three new floating storage, production and offloading (FPSO) vessels were brought on stream, including Tamandare which broke the Brazil oil output record. This helped support the improvement in outlook. SBM Offshore uses directional reporting to record revenue before the leases start. (Reporting and editing by Anna Pruchnicka, Hugo Lhomedet)
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Hapag-Lloyd's half-year profit falls by 50% due to the continued volatility in the shipping market
Hapag-Lloyd, the German container shipping company, reported a 50% decline in its nine-month net profits to 846 millions euros ($986.61million) on Thursday. It also lowered its top-end earnings forecast for the full-year due to market volatility and increasing costs. The company has lowered its forecast for full-year profit before interest and tax (EBIT) to between 0.5 and 1.0 billion euro, down from the previous range of 0.2 to 1.1 billion euro announced in August's earnings. In a press release, Rolf Habben Jansen, Chief Executive Officer of the company said that "(We will) respond quickly to changes in global commerce and maintain strict discipline on costs." He added that despite previous investments, the company is seeing first cost savings from the new Gemini collaboration with rival Maersk. The Red Sea security concerns and the frequent changes in U.S. Trade Policy have led to an unstable demand, fluctuating freight rates and a lowering of profitability in the shipping industry, which is a key indicator for global economic activity. Hapag-Lloyd's EBIT for the nine months of 2009 fell 55% on an annual basis to 809 millions euros. This was due to rising costs that were not offset by a 10% increase in transport volume to 10,2 million twenty-foot-equivalent units (TEU). The average freight rate has dropped by 4.8% to $1,397 per container. Maersk reported on November 6, a better-than expected third-quarter. Results But warned of falling freight prices in the fourth quarter. Reporting by Vera Eckert and editing by FriederikeHeine and Louis Heavens.
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Can Peru restart its Amazon oil industry? Pollution and local opposition are a concern
Wilmer Macusi, a Peruvian living in northern Amazon, sat atop an old rusty pipe that cut through the jungle and tossed a branch into the stagnant pool of water around it. Macusi, an Indigenous Urarina leader of 25 years, pointed to the place where an oil spill took place in early 2023. "But even if you change the water, the oil will still come out." As plastic barriers intended to contain the spill dropped into the water, black droplets bubbled up to the surface. The pipeline connects a nearby oilfield (Block 8) to the North Peruvian Pipeline, which is owned by the government. Santa Rosa, Macusi's locality, is just a few minutes away. According to data from the government, Peru's northern Amazon contains hundreds of millions barrels of crude oil. However, indigenous groups claim that oil extraction in the last half century has brought pollution and not progress. They are against a new wave of development. In the 1980s, this region produced more than half of Peru’s oil. However, environmental liabilities and local opposition lowered production to 40,000 barrels per day. In 2020, key blocks became dormant. Petroperu, the state-owned oil company, is once again focusing on the modest reserves of this region. The company spent $6.5 billion to upgrade its Talara refinery, which now produces 95,000 bpd of high-grade fuels. Petroperu, heavily indebted and with a CCC+ junk rating from the ratings agency Fitch wants to revive Amazon oil production to supply Talara. Petroperu, the state-owned firm, estimated that last month proven and probable reserves were valued at $20.9 billion. This could generate $3.1 billion of tax revenue for local governments. The amount of oil involved is small but the plans have caused tensions due to past spills. This has fueled Indigenous opposition as Brazil, Ecuador, and Guyana try to expand their Amazon oil frontiers. The frustration about forest protection and climate action boiled over during the Climate summit COP30 This week, dozens of Indigenous demonstrators forced their way in and clashed violently with security guards. Petroperu also plans to import oil into the refinery through a 1,100 km ONP link to Ecuador. Ecuador is aiming to increase production in the Amazon region of its country as part a $47 Billion oil expansion plan. The ONP was hailed as a marvel of engineering when it opened in the 1970s. However, since then, it has become a lightning-rod for leaks, protests, and sabotage. Both indigenous groups are fighting the pipeline connection. The government is considering options to best run the pipeline. These include a joint venture and outsourcing its management. OBSTACLES TO REVIVAL Petroperu has failed to find an international partner for its largest oilfield Block 192. This field produced over 100,000 bpd during its peak, but was recently the subject of Indigenous protests calling for remediation due to damage caused to the soil, forest and waterways. Petroperu’s former chairman Alejandro Narvaez was dismissed last month. He estimated Block 192 production at least 20,000 bpd and that Amazon's overall production could reach 100,000 bpd. Upland Oil & Gas, a domestic company, was selected by the state oil firm to operate the block. However, Peru's state regulator of oil disqualified Upland in the last month because it had not demonstrated financial capability. Upland has requested a review of the decision. Petroperu partnered up with Upland in order to restart production at Block 8, a smaller block that produced 5,000 barrels per day last month. Upland CEO Jorge Rivera is the son of Peru's first oil prospector. He said that Upland had offered Indigenous communities funding, training and jobs. He said, "We have dedicated ourselves to understand the complexities of operating these fields." Rivera made a visit to Santa Rosa, California in March. He gave a Starlink terminal as a gift and requested a report about the needs of the community. Although the community was primarily concerned with the cleanup of a nearby spill, questions still remain about who is responsible. Although Upland is responsible for the 108 km of pipeline that connects Block 8 to the ONP and runs through it, its contract exempts them from liability for pollution in the past. Pluspetrol Norte was the previous operator. It is an Argentinean subsidiary that was fined a number of times before filing for liquidation in late 2020 and leaving the area. Eight Indigenous federations, as well as non-governmental organisations, filed a complaint with the Dutch National Contact Point of the OECD, a mechanism for implementing OECD guidelines to businesses. The Dutch National Contact Point concluded in September, that Pluspetrol violated Indigenous community rights in Peru's Amazon, and urged Pluspetrol to remedy the damage to the environment. Pluspetrol responded by saying that it had already complied with the environmental and human right regulations. It also said the NCP statement lacked merit because it did not reflect the "breadth, complexity and extent of evidence presented and actions taken by the Company." Onp Spills Scientists have been studying the effects of oil fields on wildlife and Indigenous populations for decades. They've found that there are high levels of mercury, lead, and arsenic. Block 192 cleanup costs are estimated at $1.5 billion. OEFA recorded over 560 environmental violations including oil spills or other incidents from the ONP and other oil infrastructure blocks in Blocks 192 & 8 between 2011 and September 2025. Petroperu said that any damage was "temporary" and "reversible". It blamed the local communities for "economic, rural and domestic activities" which were not specified. The Peruvian prosecutor's office announced in late 2023 that they had dismantled a network consisting of local Indigenous leaders, businessmen and an employee from Petroperu who, according to the prosecutor, were orchestrating oil spills for lucrative cleanup contracts. Narvaez stated in an interview before his dismissal that Petroperu prioritized the cleanup of spills under regulator supervision. Fidel Moreno, Petroperu Board Vice President, was appointed to replace Narvaez by the government of Peru's interim president Jose Jeri who assumed power last month. The government also announced that it would soon replace Petroperu’s entire board. Moreno declined to respond to an interview request. Macusi stated that communities have not yet received the fund Upland promised to provide 2.5% from oil sales. Meetings with Perupetro to discuss funding community projects were delayed. In 2022, after an oil spillage from the Block 8 Connector pipeline, Urarina Communities held a strike. They took over oil fields, oil facilities and blocked a river in order to demand better state response. Macusi says that communities are prepared to act again after Macusi hauled buckets of oil spilled as a teenager. He said that if the benefits promised did not arrive soon, he would take action.
Wizz Air predicts a fall in revenue despite a H1 operating profit beating
Wizz Air forecasted a single-digit drop in revenue for the full year and stated that winter capacity is a "short term challenge" even though its operating profit for the first half of 2018 jumped by almost 26%, to 439.2 millions euros ($512.20).
The operating profit was substantially higher than analysts expected. Analysts surveyed by LSEG had predicted an operating profit 367 million Euros.
In a recent statement, Chief Executive Jozsef Varradi stated that they are looking to manage their capacity for the winter season due to the anticipated drop in unit revenue.
Wizz Air announced last week it would delay the delivery of 88 Airbus aircraft from 2030 to 2033 in order to reduce costs and improve profits.
Varadi stated in a press release that "we will see the biggest changes in our delivery profile within 12 months".
In recent years, the airline has struggled to recover its profits after a series of disappointing quarters. The airline has blamed external factors for its problems, such as an issue with Pratt and Whitney engine, a long repair schedule and geopolitical issues in the Middle East and Eastern Europe.
(source: Reuters)