Latest News
-
Ukraine restores power to southeast following Russian strikes
On 'Thursday, Ukrainian officials raced to restore power after Russian strikes plunged the two regions in the south-east into a?near total blackout overnight. Critical infrastructure was forced to rely on reserves. Moscow has intensified attacks on Ukraine's power system, as Ukrainian forces fight off Russian advances in the battlefield and Kyiv is under U.S. pressure for a peace agreement. The Deputy Premier of Ukraine,?Oleksiy?Kuleba, said that repairs are still being carried out to restore heat and water supply to over 1 million customers in the industrialised area of Dnipropetrovsk. Energy ministry reported that nearly 800,000 customers in the affected region were still without power early Thursday morning. However, the other region, Zaporizhzhia, had been restored. Zaporizhzhia Governor Ivan?Fedorov stated that it was the first total blackout in his region "in recent years", but that officials were quick to react. "A difficult evening for the region." "But 'light" always wins," wrote he on Telegram?on Thursday. Ukraine's Energy Ministry said that eight mines in the Dnipropetrovsk area had experienced blackouts but that workers?had been evacuated. Mykola Lukashuk is the head of the Dnipropetrovsk Regional Council. He said that it could take a full day to restore water supplies in the city of Pavlohrad. The Prime Minister Yulia svyrydenko warned late on Tuesday of an impending "cold snap" in Ukraine. On Wednesday, the energy ministry said that weather conditions have already caused power outages in some settlements across at least four different regions. (Reporting and editing by Philippa Feletcher; Dan Peleschuk)
-
French aerospace companies worry about 'weaponisation of global supply chains'
France's aerospace sector expressed concerns on Thursday about the "weaponisation of global supply chains" as major powers pursue their geopolitical goals. It also warned that rare earths remain a possible pressure point, despite an?U.S. - China trade truce. Olivier Andries is the president of France's GIFAS aeronautical association and CEO of Safran. He said that 90% of the industry’s needs for rare elements are supplied by China. "There's a trend to weaponise the supply chain and use the dependence on critical supplies as a means of creating a geopolitical edge. This is especially true for 'rare earths, which is a sensitive subject," he said. Many modern products such as jet engines contain small but significant amounts of rare earths, or the magnets that they are made into. Andries said that he was concerned about the lack of an internal budget for 2026. He added that parliamentarians have "lost direction". Sebastien lecornu, the French prime minister, is trying again to pass a budget after the lawmakers passed an emergency law. Andries stated that France's plans for defence are progressing well, despite the increased spending in Europe due to the political pressure from the U.S. and the conflict in Ukraine. Asked about the future ?of a Franco-German-Spanish fighter project, which is engulfed ?in disputes between Airbus and Dassault Aviation, Andries said: "There is a very strong political will at ?the highest level in France and Germany to go ahead. For things to progress, there must be agreements and manufacturers who are willing to work together. (Reporting and editing by Louise Heavens, Jane Merriman, Florence Loeve)
-
Sweden wins winter power reserves from two producers through a repeat tender
The Swedish 'electricity grid operator' said Thursday that it had allocated 350 megawatts under a new tender for a?power?reserve?for this winter, after the previous attempt failed. Grid operator Svenska kraftnat decided to try a second time under a different framework after the failure to secure reserve power earlier this year increased the risk for power shortages in the winter months. The volume of the second tender is lower than what was sought. In a press release, Svenska kraftnat announced that it had acquired 330 MW of power from Uniper subsidiary Sydkraft’s?Karlshamnsverket, located in Karlshamn, south-west Sweden. It also said that Malarenergi’s Aros G4 was located in Vasteras west of Stockholm. It did not mention the average price per megawatt. The initial process was a failure because the bids exceeded a cap of 120,000 crowns for each MW. A framework amendment allowed prices above the cap to be accepted, even though the budget overall did not change. In the initial bid, the grid operator sought to reserve up?800MW of backup electricity generation capacity during the period. The total cost and maximum size of the strategic reserves for this period is the same as the previous procurement. 96 million crowns ($10.4 millions) and 800MW are the figures that were announced on Thursday. The agreement covers the period from January 15 to March 15. Thomas Palsson, Director General of the Swedish Defence Forces said: "I am delighted that we have achieved our goal to create a strategic reserve." Karlshamnsverket uses oil. Aros G4 combines heat and power from biomass.
-
Shell warns about chemical loss if it sticks to LNG production outlook
Shell said it had lowered its projected range for fourth-quarter production of liquefied gas but remained within the previous guidance. It did this in a trading report on Thursday as it warned about a loss?in its chemical business. It said that its chemicals and products segment's earnings would be below breakeven in the fourth quarter. This will be dragged down by chemicals margins, which are expected to fall to $140 per metric ton, from $160 a ton in the third quarter. Also, there was a tax adjustment, as well as significantly lower trading results. Shell expects to liquefy 7.5 to 7.9 million tons of LNG. This is within the previously predicted range of 7.4 to 8 million tonnes. It forecast its indicative'refining profit margin to increase to $14 per barrel in the fourth quarter, up from $12 the previous quarter.
-
Bousso: Trump's "Donroe doctrine" could cost US oil companies their jobs if it targets China.
Donald Trump has announced his intention to import Venezuelan oil that was previously sanctioned into the U.S. This will disrupt the global energy game plan and highlight the seriousness of Trump's administration's ambitions to dominate the Western Hemisphere. This "Donroe doctrine" - Trump's rebranding a 19th century doctrine that asserted Washington’s zone of influence throughout the Americas - may ultimately target China. But?U.S. Oil companies may suffer unintended consequences. Trump said on Tuesday that Caracas had agreed to export $2 billion of Venezuelan crude oil to the U.S. It was only days after the U.S. ousted Venezuelan president Nicolas Maduro, and demanded that the Latin American nation open its energy sector to American oil firms - or face further military intervention. Trump announced in a post on social media that Venezuela would "turn over" 30 to 50 million barrels sanctioned oil. Although the timeframe of the deal has not been revealed, it is likely that shipments will begin soon. Chris Wright, the Energy Secretary of the United States, said that U.S. Needs to Control Venezuelan oil revenues and sales will be used to fuel the desired changes in Venezuela. Trump's plan is primarily aimed at China, who accounted for around 400,000 barrels of oil per day in Venezuela's exports last. According to Kpler, this is more than 50% of Venezuela's total oil exports and two-thirds according to ROI calculations. The U.S. could seize the equivalent of four months' worth of Chinese oil supplies, and about 55 days of Venezuelan production, which is currently around 900,000 barrels per day. The Trump administration also reportedly instructed Venezuela's interim President Delcy Rod to cut economic ties with China. PetroSinovensa is the largest Chinese oil asset in Venezuela. It's a joint venture between Venezuelan state-owned PDVSA, and China National Petroleum Corp. The JV is located in the Orinoco Belt, and produces around 65,000 barrels per day. The Trump administration's actions against Venezuela are part of a broader geopolitical plan. This is more than just rerouting barrels that were originally destined for China's refiners. Bob McNally is a former White House official and president of Rapidan Energy Group, a consultancy. He says that it'signals President Trump’s intention to push China and Russia out of their strongholds in Venezuela. "DONROE DOCUMENT" IN ACTION The White House released its National Security Strategy late last year. The document called for a cementing of U.S. power in the Western Hemisphere, by pushing out rivals and restoring American control on energy and supply chains. The "Donroe Doctrine", as it is known, is a reference to the former U.S. president James Monroe's 1823 declaration that the Americas would no longer be open for future colonisation by European countries. Trump's threats to seize Greenland this week, an Arctic island that is a part of Denmark and has its own self-governing government, also align with these ambitions. Investors may want to take the White House national security strategy, and its words, more seriously. He told reporters that the "dominance of America in the Western Hemisphere" would never be questioned again. BLOWBACK FROM BEIJING U.S. oil companies are in a tough position because of the American actions in Venezuela. Exxon Mobil and Chevron, for example, could be facing legal issues if they enter into an agreement with Venezuela's government to invest in assets that were previously owned by Chinese or Russian firms. Trump's unilateral action could also lead to China's retaliation, which would put the assets of U.S. firms abroad at risk. U.S. major oil companies have a number of joint ventures with Chinese firms. Exxon, for example, wholly owns and runs a massive petrochemical facility in southern China that began operations last year after a $10 billion investment. Chevron also owns stakes?in joint ventures upstream in China, as well as in downstream operations for fuels and oils. Both companies have also signed large contracts for the supply of liquefied gas to Chinese customers. Of course, the risk extends beyond China. If American companies are increasingly seen as state-owned, host governments may be more reluctant to work with them. Although the U.S. President may not see any downside to ignoring international conventions and rules, American companies might. Subscribe to my Power Up newsletter to receive my weekly column, plus additional energy insights, and links to trending articles every Monday and Thursday. Subscribe to my Power Up Newsletter here. You like this column? Open Interest (ROI) is your essential source for global commentary on financial markets. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
-
New York Times Business News - January 8, 2019
These are the most popular stories from the business pages of the New York Times. ? These stories have not been?verified? and we cannot vouch for the accuracy of these reports. Google and chatbot maker Character.AI have agreed to settle the lawsuit that accused them of providing 'harmful chatbots' which allegedly contributed 'to the suicide of 14-year old Florida boy. Warner Bros Discovery on Wednesday urged its shareholders to reject the latest bid from Paramount Skydance, saying that the rival offer was more risky than the blockbuster Netflix deal struck last month. Alaska Airlines announced that it will buy '110 Boeing jets, its largest ever order. This is to boost growth plans after acquiring Hawaiian Airlines. The U.S. administration of President Donald Trump outlined a plan to?control Venezuela's oil sale, claiming it had'reached an accord with Venezuela's Government, even though the state oil company PDVSA said that negotiations were still ongoing.
-
Protesting French farmers brought tractors to Paris center
On Thursday, French 'farmers' blocked sites in Paris in protest of a sweeping trade agreement the European Union was about to sign with South American nations as well as other local grievances. Farmers of the Coordination Rurale Union called for protests to be held in Paris over their anger at a free-trade agreement between the European Union (EU) and South American bloc Mercosur. They are concerned that the agreement could flood the country with cheap imports and they also objected to the government's handling of a cattle disease. "We are caught between resentment, and despair. "We feel abandoned, just like Mercosur." "We've been abandoned for a spaceship, an Airbus or a vehicle," Stephane Pelletier said, the deputy president of the union of Vienne in central France. The protest comes just days after the European Commission announced that it would make 45 billion euros in EU funding earlier available to farmers, and cut import duties for some fertilizers to try to win over countries who were hesitant to support Mercosur. Germany, Spain and Italy are all in favor of the deal. The Commission appears to have secured the necessary votes to pass the agreement with or without French backing. The deal will be voted on on Friday. Farmers are also calling for an end to the culling of cows, prompted by a number of Highly contagious lumpy Skin Disease They consider this to be excessive and recommend vaccination. Several tractors have been parked along the Seine river bank, below the Eiffel tower. They are blocking some of the city's access points from the Peripherique. This includes the Porte d'Auteuil. The French police imposed an absolute ban, but they still managed to reach the centre of the city. (Reporting and editing by Lincoln Feast, Richard Lough and Richard Lough; Inti Landauro, Sybille de la Hamaide and Camille Raynaud)
-
Bousso: Trump's "Donroe doctrine" could cost US oil companies their jobs if it targets China.
Donald Trump has announced his intention to import Venezuelan oil that was previously sanctioned into the U.S. This will disrupt the global energy game plan and highlight the seriousness of Trump's administration's ambition to control the Western Hemisphere. China could be the ultimate?target of this "Donroe doctrine" - Trump's rebranding a 19th century doctrine that asserted Washington’s zone of control in the Americas. U.S. Oil Companies could be the unintended "victims". Trump announced on Tuesday that Caracas had agreed to export Venezuelan crude worth up to $2 billion to the U.S. It was only a few days after the U.S. ousted Venezuelan president Nicolas Maduro, and demanded that the Latin American nation open its energy sector to American oil firms - or face further military intervention. Trump announced in a post on social media that Venezuela would "turn over" 30 to 50 million barrels sanctioned oil. Although the timeframe of the deal has not been revealed, it is likely that shipments will begin soon. Chris Wright, the Energy Secretary of the United States, said that U.S. Needs to Control Venezuelan oil revenues and sales will be used to fuel the desired changes in Venezuela. Trump's plan is primarily aimed at China, who accounted for about 400,000 barrels of oil per day in Venezuela's exports last. According to Kpler, this is more than 50% of Venezuela's total oil exports. ROI calculated that around two thirds of Venezuelan sanctioned exports were in this category. The U.S. could seize the equivalent of four months' worth of Chinese oil supplies, and about 55 days' worth of Venezuelan production, which is currently around 900,000. The Trump administration has also reportedly instructed Venezuela's interim President Delcy Rod to cut economic ties with China. PetroSinovensa is the largest Chinese oil asset in Venezuela. It's a joint venture between Venezuelan state-owned PDVSA, and China National Petroleum Corp. The JV is located in the Orinoco Belt, and produces around 65,000 barrels per day. The Trump administration's actions against Venezuela are part of a broader geopolitical plan. This is more than just redirecting barrels originally headed for China's refiners. Bob McNally is a former White House official and president of Rapidan Energy Group. He says that it signals President Trump's intention to?push China, Russia and Iran out from their deep footholds within Venezuela. "DONROE DOCUMENT" IN ACTION The White House released its National Security Strategy late last year. The document called for a cementing of U.S. power in the Western Hemisphere, by removing competitors and restoring American control on energy and supply chains. The "Donroe Doctrine", as it is known, harks back to former U.S. president James Monroe's foreign policy in 1823 when he declared that the Americas would no longer be open for future colonisation by European power. Trump's threats to seize Greenland this week, an Arctic self-governing island that is part of Denmark, also align with these ambitions. Investors may want to take the White House national security strategy, and its words, more seriously. He told reporters that the "dominance of America in the Western Hemisphere" would never be questioned. BEIJING BLOWBACK The actions of the 'Americans in Venezuela' have put U.S. firms, especially oil companies, in a difficult position. Exxon Mobil and Chevron, for example, could be facing legal issues if they enter into an agreement with Venezuela's government to invest in assets that were previously owned by Chinese or Russian firms. Trump's unilateral action could also lead to China's retaliation, which would put the assets of U.S. firms abroad at risk. U.S. major oil companies have a number of operations that are jointly owned by Chinese firms. Exxon, for example, wholly owns a petrochemical complex in southern China that began operations last year after a $10 billion investment. Chevron also owns stakes both in upstream joint ventures, as well as in downstream operations for fuels and lubricants. Both companies have also signed large contracts for the supply of liquefied gas to Chinese customers. Of course, the risk extends beyond China. If American companies are increasingly seen as state-owned, host governments may be more reluctant to work with them. Although the U.S. President may not see any downside to ignoring international conventions and rules, American companies might. Subscribe to my Power Up newsletter to receive my weekly column, plus additional energy insights, and links to trending articles every Monday and Thursday. Subscribe to my Power Up Newsletter here. You like this column? Open Interest (ROI) is your essential source for global commentary on financial markets. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
IndiGo's antitrust investigation includes India's request for fare data from airlines
A document shows that the Indian government asked IndiGo and Air India to provide data on average fares, while antitrust authorities investigated unprecedented travel disruptions last December.
IndiGo, India's largest airline with a market share of 65%, was forced to cancel 4,500 flights in the last month due to a shortage of pilots. This left thousands stranded and caused disruptions across India.
The government imposed temporary ceilings on certain airline fares after they surged during the crises.
In December, India's competition regulator CCI announced that it would be pursuing a case against IndiGo in order to "assess" whether the airline had abused its position on the market. IndiGo hasn't commented on the matter.
REQUEST IS for AVERAGE?FARES DECEMBER 1- 15
According to an email sent by the Indian government on January 1, to IndiGo Air India Express SpiceJet Akasa, they asked for average fares per route, in economy and premium economy, during December 1-15.
The CCI, and the Civil Aviation Authority did not respond to the questions sent via private email. Akasa refused to comment while other airlines didn't respond.
One government source who asked to remain anonymous because they weren't authorised to speak in public, stated that the CCI had requested the details as it could be used to help assess the airfare patterns across airlines during disruptions.
In the email, the government also asked airlines to provide "fare information on affected routes" when there were disruptions.
No indication has been made that the case is being expanded to include other airlines.
The CCI is currently reviewing a complaint that IndiGo has cancelled flights, then offered seats at higher prices. This amounts to an abuse of IndiGo's dominant position in the market, as previously reported. Aditya K. Kalra, Barbara Lewis and Aditya K. Kalra contributed to this report.
(source: Reuters)