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Prices in Russian ports are above EU price cap, but the urals fluctuation remains unchanged
The data shows that the Russian Urals oil differentials were unchanged on Thursday compared to Brent, while the grade's price remained above the new EU price cap so far this month. LSEG data indicates that the Urals FOB prices at Primorsk Port have been higher than the new EU price cap since February 1. The cap allows European companies to provide shipping, insurance and?other?services in exchange for Russian cargoes as long as the oil is sold below the cap. Calculations showed that the Russian state's oil and gas revenues are expected to almost halve in February 2025 to 410 billion rubles ($5.35 billion), due to lower oil prices and a stronger currency. PLATTS WINDOW The traders reported that no bids or offers for Azeri BTC, CPC Blend and?Urals were made on the Thursday. The chief of staff for Prime Minister Viktor Orban said that Hungary may cut off gas and power exports to Ukraine until Kyiv resumes Russian oil shipments via the Druzhba Pipeline. Data from the Joint Organizations Data Initiative revealed that Crude Oil exports by the world's biggest oil exporter dropped to 6.988 million barrels a day, compared with 7.378 million bpd last November. This is the lowest level since September. Reporting by
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The danger of ships and nets during the whale migration season in Chile
The increased activity of the 'fin whale', the'second largest whale in existence' along Chile's north coast during feeding season is highlighting an 'growing threat' to collisions with vessels and entanglements in fishing nets. This warning was made by marine experts and conservationists this week. Between October and January, the nutrient-rich waters in Mejillones Bay and Antofagasta Bay are a popular feeding ground for fin whales. The region is also a hotspot for maritime accidents that involve whales. This has led to a call from advocates for better habitat protection. Christian Guerra, a marine ecologist, said that Chile appears to be the main?space? where collisions have been recorded. "We lead the world in collisions and strandings, but we are also the worst." The Antofagasta cetacean observation network, a group of volunteers, monitors the whales to reduce these risks. Alex Sanchez, who is a member in the network, said that, "aside from ship collisions and fishing nets left at large-scale operations, these mammals are often caught by the nets." Drone footage from Algarrobo, further south than Mejillones or Antofagasta bays, captured the sight of a whale carcass washing ashore in this month. Silvana Espinoza is an eco-expert with Greenpeace. She said that "whales are vital for climate regulation and nutrients distribution." Reporting by Rodrigo Gutierrez, Writing by Daina Bet Solomon, Editing by Tomaszjanowski
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Targa Resources beats quarterly core profit estimates on boost in gas volumes
Targa Resources, a pipeline operator, beat its fourth-quarter estimates for adjusted core profits on Thursday. This was due to higher demand and transport volumes of natural gas liquids as well as natural gas. U.S. Natural Gas Futures jumped more than 11% in a single quarter, ending a decline that began in the second quarter. Midstream companies benefit from the strong oil and natural gas production of the Permian Basin. They also see a rise in natgas exports, and an increase in power generation linked to AI and data centers. Targa has announced plans to construct a 275 million cubic foot per day natgas plant in Permian Delaware. The plant is expected to begin operations in the fourth quarter 2027. Executives said on a "conference call" that "larger downstream capital project, including Speedway NGL Pipeline, and LPG Export expansion, are expected to be completed in the second half 2027. They said that the company expects to reach a core profit run rate adjusted of more than $6 billion after the completion of Speedway. Analysts at RBC Capital Markets said that while they viewed the fourth quarter and guidance as positive, the share price could react mutedly due to the recent outperformance. They also noted the increasing expectations for the print. Targa shares dropped 1.3% during afternoon trading. The total quarterly 'natural gas' sales rose 6.2%, to 2,96 billion British thermal unit per day. Meanwhile, the volume of NGL transported via pipeline increased by 20.3%. Targa's 2026 core earnings forecast is between $5.4 and $5.6 billion. The midpoint of this range is in line with analysts' estimates of $5.5 billion according to data compiled by LSEG. Houston-based company, Texas, posted a core adjusted profit of 1,34 billion dollars for the quarter ending December 31 compared to the estimated $1.27 billion. (Reporting and editing by Krishna Chandra Eluri in Bengaluru. Pooja Menon is based in Bengaluru.
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Four people killed and 17 injured in a truck explosion in the capital of Chile
Authorities said that at least four people were killed in the explosion of a truck transporting liquid gas, which flipped over and exploded on Thursday. A police chief said at a news conference that 17 more people were injured. The driver of the truck lost control and crashed, he explained. The authorities said that the truck driver was one of the victims. The prosecutor’s office is investigating the circumstances of the accident. The truck belonged to a local gas company Gasco. Gasco didn't immediately respond to a request from for a?comment. Social media videos showed the flames descending at the explosion site. The accident occurred in the northern Santiago community of Renca. It was near a highway and industrial area. According to firefighters, the?explosion? was felt in a radius between 150 and 200 meters. It also damaged at least 50 vehicles. Gabriel Boric, the President of Croatia, said that some debris had landed in three businesses but there have been no further reports about widespread damage. Claudio Orrego is the Governor of the Metropolitan Region of Santiago. He reported that five people were in serious condition. Orrego stated that "one person has burns on their entire body and is at imminent risk of death."
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Some US investors are turning to infrastructure amid the AI sell-off
Wall Street's love for artificial intelligence giants is cooling, and some investors are shifting their focus to infrastructure companies, which they believe will benefit from AI spending. This shift has spawned a number of new products. Shares of AI tech giants like Alphabet and Amazon have seen sharp drops after huge gains over the past few years. Investors are worried that returns on their "massive investments" in developing smarter AI system won't justify these lofty valuations. Asset managers say that investors should focus on companies receiving the checks, such as chipmakers, data centers, and utility firms, which provide the nuts and bolts of the AI revolution. Asset managers say that many of these stocks have seen double-digit growth this year. These include Caterpillar and Lumentum, a provider of optical communications, and Western Digital, a data storage company. The S&P 500 returned 0.52%, and the Roundhill Magical 7 ETF has dropped 7.3%. NEW INFRASTRUCTURE AI PRODUCTS This performance has prompted exchange-traded funds providers like BlackRock, VistaShares, and Impax Asset Management, to revamp their offerings and launch brand new products. Some are betting on an increasingly diverse and niche list of AI infrastructure investments. "Our goal is to have our portfolio ring with cash every time Meta or Amazon invests into a datacenter," said Adam Patti. VistaShares launched its Artificial Intelligence Supercycle Fund in December 2024. It gained 58.4% by 2025, and 16.87% so far this year. The ETF does include the AI giant Nvidia. However, its weighting is only half of that of South Korea’s SK Hynix whose chips are used by data centers. Other top holdings of the ETF include Micron and Intel. Patti said, "When Meta says it will spend $100 billion on these companies, that money is going to them." BlackRock's iShares A.I. Innovation and Tech Active ETF has now invested 74% of its $8.8 Billion?in assets in AI infrastructure, from chipmakers who?train AI to power companies. This is up from 59% one year ago. This is "where the revenue is right now", said Jay Jacobs. BlackRock's U.S. director of equity ETFs. The fund has seen its returns increase to 3.2% in this year due to the positive returns on investments like Fabrinet, Monolithic Power Systems and others. VettaFi data shows that the BlackRock fund received $7.9 billion of new capital in the past 12 months. This month, two infrastructure ETFs were launched. Impax Asset Management transformed one of its mutual fund into the Impax Global Infrastructure ETF. Harrison Street Asset Management, a manager of alternatives, launched an AI related ETF focused on electrification. Robert Becker is the chief investment strategist of Harrison Street. He said that securing reliable power supplies was one of the major obstacles to moving forward in building all the AI data centers required. Ed Farrington said that infrastructure is a great way to diversify equity portfolios and what was for many years a highly concentrated business. "STEALTH AI PLAYS" The Magnificent Seven Hyperscalers may have delivered consistently high revenues, but investors claim that this is largely due to their core business, which funds AI capital expenditures. This year, the spending on AI will amount to around $630 billion. Some investors are searching for underpriced infrastructure companies that will benefit from the investment. Ari Sass is the president and portfolio manager at M.D. Sass Investor Services said that companies which he previously thought were "stealth AI plays" are now coming into the spotlight. Quanta Services (which provides construction and maintenance for?electric utilities) has seen a 24.17% increase in the first half of this year. Tortoise AI Infrastructure ETF, launched in October, invests in companies such as Wisconsin's Modine Manufacturing, which began manufacturing radiators for farm machinery and has since shifted to data center cooling systems. The company's shares have risen 19.25% this year. Some are warning investors to be cautious as they pile more money into the AI infrastructure business. They point out that fiber optic companies in the 1990s collapsed due to over-investment to support Internet firms. Michael Reynolds, Glenmede's vice president of investment strategies, said: "It appears that the companies spending the most on AI are the ones with the strongest financial standing, but valuations have gotten a little high for any product or service with AI exposure." Everyone needs to be cautious.
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United revamps its loyalty program to increase co-branded card adoption
United Airlines has redesigned its frequent-flyer loyalty program to reward those who carry a United-branded card and reduce the mileage earned by members who don't. The airline stated that the changes were designed to increase adoption and usage of their card products. Loyalty programs are now major profit generators for the airline industry. Carriers earn billions of dollars each year from selling frequent-flyer mile to banks tied to their credit card portfolios. United Airlines said that primary MileagePlus cardholders of the airline will be able to earn up to two times as many miles per dollar spent on United flights, compared with those who do not have a card. Tickets purchased after April 2 will be eligible for this benefit. Cardholders also get a minimum 10% discount on tickets booked using miles or points. Andrew Nocella is United's chief Commercial officer. He said: "MileagePlus rewards loyalty to United and our best customers deserve the best benefits in the industry." The new rules tighten the rules for those who do not have a card. United said that MileagePlus cardholders without the co-branded card would earn less miles on flights. General members will not be able to earn'miles' for basic economy tickets, unless they have a card.
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Data shows that Russia's Urals crude oil is just below the new EU price cap.
Since its introduction on February 1, the European Union has introduced a new floating price cap of $44.10 per barrel for Russia's Urals crude. The cap allows European firms to continue providing services such as shipping, insurance and other related services for Russian cargoes so long as the oil is sold below this price cap. LSEG data reveals that the Urals FOB prices at Primorsk Port have been?above $47.60 since February 1. Data shows that before the cap was changed this month, the price of Russian oil was below the previous limit of $47.50 since November. Winter weather and increased sanctions against Russian oil exporters have driven up the freight rate for oil deliveries. This could cause prices to fall below the new cap. The cost of transporting Urals to India via Aframax tankers increased to $9 million in February from $8 million last November and December. The latest data available showed that the Urals oil price for cargoes destined to Primorsk on Wednesday was $44.14 per barrel. This is only slightly higher than the new price cap.
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India's Maharashtra power farms are off the main grid in order to overcome transmission obstacles, an executive says
The chairman of India's largest power distributor said that Maharashtra is using local energy sources to power farms, despite the fact that transmission projects are delayed, and it is also racing to boost clean-energy production. As transmission lines are delayed, utilities are reluctant to sign long-term agreements. This is causing a huge backlog in the renewable energy sector of Asia. In order to avoid the bottleneck, Maharashtra State Electricity Distribution Co Ltd (which supplies electricity in one of India’s richest states) is moving?about 30 percent of farm consumption from 2 megawatts to 20 megawatts solar plants, located near rural power stations. This allows energy to be produced and consumed locally. Power distributors can also store?surplus power for evening use, further reducing the stress on the grid. Lokesh?Chandra, the Chairman and Managing Director of its?company, said in an interview with?a Wednesday? that these measures would "avoid pushing power through already congested lines and reduce variability throughout the grid". The transmission lines that evacuate electricity are experiencing delays and the connectivity is poor. Chandra says that agriculture accounts for 30% of Maharashtra's electricity demand, which is one of the largest daytime electricity demands in the state. Officials said that the grid must be 'upgraded with AI-based predictions and digital controls in order to manage intermittent supplies and integrate solar, amid increasing consumption from data centres and EVs as well as?green-hydrogen? facilities which have increased overall power demand. Maharashtra is planning to add 45 gigawatts of generation capacity to its mix by 2030. This includes 38 GW from renewable sources, bringing the share of green power to 52%, up from 15%. Chandra stated that "we have already entered into power purchase agreements...?more than 60 percent of our capacity (by 2030) will be from non-fossil sources." IPO AFOOT Chandra stated that the utility's plans for launching a?IPO by the end of this year are still on track. The state government will 'divest a portion of its stakes in the company at the IPO. Chandra refused to comment on either the estimated valuation or the size of the stake. Reporting by Yagnoseni das in Bengaluru, editing by Mrigank dhaniwala
Las Vegas sees sharp visitor drop as leisure spending wanes
Harry Reid International is still buzzing on Fridays. There are rolling suitcases, crowded rideshare lines, and the usual churn. On Monday, the airport had quieted down considerably.
James Chrisley is the director of Clark County Aviation Department. "Our peaks remain peaks and our valleys have softer edges," he said. Hotel prices, flight schedules, and paychecks are all showing signs of softening. This is in line with the findings from the Federal Reserve survey, as well as recent airline earnings calls: higher-income travelers continue to?book, while households that feel the pinch, pull back.
Economists warn that if the market-linked, affluent spending cools, recession risks could rise.
This divide is most evident in Las Vegas. A city fueled by leisure spending, Las Vegas just experienced its largest annual decline of visitors outside the pandemic.
Las Vegas attracted about 3.1 millions fewer visitors in 2020, a 7.5% decline. This is the sharpest drop since 1970 when records began. The Las Vegas Convention and Visitors Authority does not separate its figures for domestic versus foreign travelers.
In 2025, passenger traffic at Harry Reid will have fallen by about 6%. This includes carriers such as American Airlines, Southwest Airlines, and Allegiant. Traffic in December, which is usually boosted by holiday travels, dropped 10.3%.
The city's lifeblood, leisure, is weakening.
Andrew Woods of the Center for Business and Economic Research at University of Nevada said, "I believe this is a better microcosm of the American consumer than a way to tell us the direction of the American economy."
Woods noted that other popular vacation destinations, such as Honolulu and Orlando, Fla., and Disneyland, are not experiencing the same decline in visitors. He added that Las Vegas' high fees and prices have made the city vulnerable to budget-conscious tourists.
Officials and executives said Las Vegas had just come off of two consecutive record-breaking years, and that the market is now more balanced.
Midweek FADE
The most noticeable shift occurs in the middle of the week.
The weekdays are the days when hotels have a steady flow of rooms. This helps to cover payrolls, and keeps restaurants and casinos busy. Hotels can fill in the gaps when demand drops, but usually by lowering prices or adding perks.
The Las Vegas Strip is different from Monday to Thursday: self-parking garages are fewer at resorts which overflow on weekends while valet lanes continue to move. Placer.ai's location data suggests that the Strip is tilting towards weekends.
Analysts, officials, workers, and visitors all cited a combination of political unease, and more cautious travel planning. Fernanda Loiza is a Guatemalan tourist who believes that some travelers are staying away due to the Trump administration's immigration crackdown. This has resulted in tourists being caught up in high-profile cases. Loiza stated that some people are afraid to "come and enjoy Las Vegas openly and without inhibition."
The importance of international visitors is disproportionately high, as they tend to stay longer and spend more.
Michael Hillman, a tour guide in Las Vegas, said that travelers are irritated by the price of Las Vegas. He said, "Ten dollars for a water bottle." "People no longer see a bargain."
HOTELS DISCOUNTS, AIRLINES PULL BACKWARD
MGM Resorts said this month that revenue and earnings for its Las Vegas resorts dropped in the fourth and 2025 quarters. The company cited a large weakness in value-oriented properties like Luxor and Excalibur. However, executives claimed that trends would improve in 2026.
Caesars Entertainment announced on Tuesday that its Las Vegas segment saw a decline in revenue and profit in the December quarter and for all of 2025. The full-year profit fell by about 20% on a year-over-year basis, with revenue down roughly 5%.
Strip?hotels rely on seasonal offers, dining credits and other incentives to keep demand up. CoStar Group data indicates that midweek revenue per room declined by 11% between 2025 and 2030.
Michael Stathokostopoulos is a senior analyst at CoStar. He said that Las Vegas remains a leisure-driven market. He said that inflation and economic uncertainty are driving travelers to cancel trips, reduce their stay or downgrade.
As demand has weakened, airlines have reduced their?schedules. Cirium data indicates that U.S. airlines have about 7% less seats scheduled to Las Vegas in the first quarter 2026 compared to a year ago. The international traffic is also showing a similar pattern, particularly from Canada, an important overseas market. The major?Canadian carriers reduced capacity by around 30% for the third quarter. This pullback is due to Canadians' increased reluctance in traveling to the U.S., including because of tariffs and immigration policies.
WORKERS FEEL FIRST
Economists claim that years of added fees and increased prices have made travelers feel like they are paying more for less. This model is harder to maintain as inflation puts pressure on budgets.
Recent Federal data highlights the squeeze. Las Vegas wages are below the national average while local inflation, unemployment and wage growth is higher.
This is reflected in the hours and tips on?the Strip. Joe Spica, the Cosmopolitan of Las Vegas's bellman and shop steward for the Culinary Workers Union, says that visitor numbers may not be down, but spending is. He said that "they're not tipping nearly as much."
Spica is a father of 3. The impact on him was immediate. He said that tips had dropped 'ridiculously. "And when I go to grocery stores, everything I buy has gone up."
The number of extra shifts in hotels and restaurants has been decreasing. Ted Pappageorge is the secretary-treasurer for Local 226 of the Culinary Workers Union. He said that slowdowns begin not with large layoffs but rather with vanishing shifts which hit part-timers and on-call workers first.
The next test, according to economists, will come this spring when households begin planning their summer vacations. Drive-in traffic in Southern California will provide an early indicator.
Some job seekers are already feeling the effects of the slowdown. Shuang Woo said that she had a difficult time landing interviews and was receiving a series of automated rejections. She has recently started training to be a casino dealer.
She said, "It has been tough." The entire city is based on tourism. (Reporting and editing by Ethan Smith; Rajesh Kumar Singh).
(source: Reuters)