Latest News
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Trading sources report that despite the attack on a pipeline, crude loadings have continued at Saudi Arabia's Yanbu Port.
Sources from two buyers at the port, and a third source in the trading world told us on Thursday that crude loadings have continued at the Red Sea port at Yanbu despite the?attack by Iran?on Wednesday?on the East-West Pipeline of the country. Saudi state oil company Aramco declined to comment. Iran attacked the 7-million-barrel-per-day pipeline hours after ?a ceasefire was agreed to pause the Iran war, ?an industry source told on Wednesday, targeting its only oil export route ?since hostilities began. Sources added that the damage assessment was underway and that it is expected that?flows? through?the?pipeline will be affected. Saudi Arabia is unable to export crude oil due to the de facto closing of the Strait of Hormuz. According to Kpler, the average?Yanbu crude oil loadings in March were 3.3 million barrels per day, up from just over 800,000 barrels per day in February. It can export up to?5million bpd. Aramco said it directed roughly 2 million barrels per day (bpd) of the pipeline flows towards its refineries in 'the west last month. (Reporting and editing by Siyi Liu; Ahmad Ghaddar, Arathy Sommesekhar, Elaine Hardcastle, Barbara Lewis)
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After a report about a warship being escorted near the UK, Kremlin said that Russia had a right to defend themselves from 'piracy.'
The Kremlin announced on Thursday that Russia has the right to defend itself against what it calls piracy, after a British paper reported?that an oil tanker sanctioned by Britain was escorted through the English Channel by a Russian Navy frigate. The ship tracking data analysed showed that the two vessels sanctioned in the Daily Telegraph article - the Russian-flagged Universal, and the Cameroon flagged Enigma – crossed UK waters between Thursday and Wednesday. Last month, British Prime Minister Keir starmer announced that he had authorized the military to board Russian ships in British waters and detain them to disrupt a system of vessels which his government claims allows Moscow to export oil regardless of Western sanctions over Ukraine. So far, no such action has taken place. Dmitry Peskov said, when asked about the report in the media, that Moscow had repeatedly seen what he called piracy on international waters, and that Russia will act to ensure?the safety of its own shipping. "We have seen repeated incidents of piratery?in international water over the last few months." Peskov said that these incidents of piracy, among other things have harmed Russian Federation's economic interests. The Russian Federation will take all necessary measures to protect their interests. According to LSEG, the two tankers were used for diesel deliveries. They each carried 40,000 tons of the fuel from the Baltic Port of Primorsk, in the Leningrad Region, at the end of march. Enigma will be heading to Mersin, Turkey. Universal's destination is unknown. Britain claimed to have used a tanker, a helicopter, and a patrol boat?to monitor the movements of the Russian landing ship, the Admiral Grigorovich. Britain stated that 'Belgian aircraft and Dutch ships were also involved with the monitoring operation. When asked about the passage at a press event to announce "a separate British operation to track Russian submarines in High North", British Defence Minister John Healey replied that work done by Britain and Western Allies had already made working for Putin's shadow fleet of oil tankers more difficult. He said that the government is ready to go further. We are ready to act. He said that he would not only support, but also take action in conjunction with allies to intercept shadow fleet vessels.
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The US Postal Service, which is in a financial crunch, has suspended contributions to its pension plan
The U.S.?Postal Service announced Thursday that it would temporarily?suspend payments from employers for a federal retirement program in order to conserve?cash during a severe financial?crisis. USPS informed the White House Office of Personnel Management on Friday that it would no longer be paying $200 million every two weeks for its employer contributions to the defined benefit component of the Federal Employees Retirement System. USPS warned on Thursday that it may run out of money as early as February if reforms are not implemented. USPS estimates it will save $2.5B with the?action through September 30, and says there won't be any immediate negative impact on current or future retirees. Since 2007, the service has suffered net losses of $118 billion as its most profitable product - first class mail - has fallen to its lowest volume since the late 1960s. USPS reported a loss of $1.25bn in the quarter ending February. USPS stated that the risk to USPS and the American public of not paying the current pension payments outweighs the longer-term risks to the pension funds. USPS received approval earlier this week from the Postal Regulatory Commission to implement a temporary 8% increase in price?for package and priority mail deliveries, starting April 26. This is to 'deal with increasing transportation?and fuel prices. USPS expects the surcharge will be in place until January 17, 2019. U.S. Postmaster General David Steiner said to Congress last month that increasing the price of 'first-class stamps' from 78 cents up to $1 or 95 cents would help it increase revenue and reduce losses. Steiner says that although stamp prices have increased by 46% from early 2019, when they cost 50 cents each, they are still lower than other countries.
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Iran warns of a near-standstill in Hormuz as ships are warned to stay within its waters
The Islamic Revolutionary Guard Corps of Iran (IRGC) has warned ships not to cross the Strait of Hormuz through Iranian territorial waters, as Thursday's traffic was well below normal levels. Mitsui O.S.K. Lines, one if Japan's three largest shipping companies, is caught up in the confusion, as firms try and work out the impact of a two-week ceasefire between Iran and the U.S. In an interview with Jotaro Tamura on Thursday, the President and CEO said that it was necessary to confirm whether or not safety risks were low enough. Three tankers were recently rescued from the Strait of Gibraltar - two with cooking gas, liquefied petroleum gases (LPG), and one with liquefied gas natural. Tamura stated that the company is awaiting instructions from the Japanese government as to how it should proceed in the context of the two-week truce. LARAK ROUTE According to Iran's semi-official Tasnim News Agency, the IRGC would like vessels to navigate through Iranian waters in the area around Larak Island to avoid the danger of naval mines along the normal lanes in the strait. Tasnim reported that the IRGC navy instructed vessels to enter the strait just north of Larak Island, and exit it just south of the island until further notice. Ambrey, a British maritime security firm, said in an advisory that there was a real possibility of a continued risk for unauthorised Strait of Hormuz Transits and to Israel- or US-affiliated shipping trying to transit. It said that "even shipping with apparent approval was turned back mid-transit in recent weeks." LITTLE TRAFFIC Ship-tracking data on Thursday showed that only six ships passed through the Strait in the last 24 hours, as opposed to the normal 140. Data from Kpler Intelligence, Lloyd's List Intelligence, and Signal Ocean revealed that they included one oil products tanker, and five dry bulk carrier. Ship-tracking data on the MarineTraffic platform and Pole Star Global showed that a chemical tanker is set to cross, bound for India. Torbjorn Sltvedt, a risk intelligence analyst at Verisk Maplecroft, said that most shipping lines will remain cautious and two weeks won't be enough to clear up the backlog if traffic increases significantly. According to Kpler, more than 180 tankers containing approximately 172,000,000 barrels of crude and refined oil remain stranded. Toll System? Some media reports suggested that Iran could charge a toll to ships passing through. The figure was estimated at $2 million. Ship-tracking data showed some vessels, such as the Indian flagged Pine Gas LPG Tanker, were already taking an unusual route around Larak Island. Sohan Lal said that the Pine Gas' chief officer did not pay Iran for transit, and the vessel was not seized by the Islamic Revolutionary Guard Corps of Iran when it exited through this route. Western leaders have rejected any fees imposed by Iran for ships that pass through the Strait of Hormuz. On Thursday, ADNOC CEO and UAE state oil company CEO said that the Strait of Hormuz was closed. Iran must immediately open it. INDIA EASES RULES India granted waivers for two Iranian cargoes on an older tanker, and one under international sanctions, to enter its port in order to speed up the?delivery of oil from the Gulf. Two officials familiar with this matter told reporters that India has recently given waivers to allow the entry of two Iranian cargoes. India, the world's second largest importer of LPG for cooking, is experiencing its worst gas shortage in decades. The government has introduced rationing measures to ensure that households have enough LPG. IRAN'S OWN SHIPS Last month, the United States announced a temporary waiver of Iranian oil exports that will end on April 19. The move was made to ease fuel prices and support global supply. Since the Iran War began on February 28, oil prices have increased by about 50%. The U.S. average retail gasoline price has recently topped $4 per gallon for the first time in over three years. According to Charlie Brown, senior advisor at UANI, which monitors Iran related tanker traffic, one Iranian-flagged tanker carrying oil and another bunkering tanker passed through the strait during the last 24 hours. Brown stated that since Feb 28, at least 24 Iranian-flagged tanks have arrived in Asia. This pace is comparable to the pre-war level, he said. Reporting by Jonathan Saul and Ahmad Ghaddar; editing by Alex Richardson, Jason Neely and Jason Neely
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Italy pledges emergency funding to reopen rail and motorway after landslide along key Adriatic Corridor
The Italian government declared a state of emergency on Thursday and pledged millions to restore transport links after a landslide cut rail and motorway links along an important north-south corridor. Matteo Salvini, Minister of Infrastructure, visited the area and said that an initial 10 millions euros ($11.68) would be allocated for repairs. The emergency declaration will be made later on Thursday, along with funding. He said that the partial reopening of the motorway and the anticipated resumption on Friday of rail service were signs of progress. "Nobody thought the roads would open?so fast, what we have done is miracle." The landslide that occurred in Petacciato on Tuesday, a small town located in the southeast?region of Molise forced the closure of both the A14 motorway and the rail line connecting Bologna to the south Adriatic coast. The landslide was triggered by heavy rains, in a region with a long history of hydrogeological instabilities. It stretches two kilometres out to sea and has forced the evacuation?of about 50 people. The disruption forced many motorists to take long country roads detours that added several hours to their journeys. Coastal rail services were also suspended and partly rerouted through Rome. Fabio Ciciliano, the chief of Civil Protection agency, said in an interview with 'daily Corriere della Sera that it appeared as if the landslide had'stabilised' and ruled out worst-case scenarios where closures would last for weeks or even months. He added that a main road would remain closed because of a collapsed bridge, and its reconstruction was estimated to take?six to seven months?. This could affect the tourist season along the coast.
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American Airlines increases checked bag fees and trims economy benefits amid rising fuel prices
American Airlines has increased the cost of checked luggage for domestic and short-haul destinations, and reduced some perks for economy passengers. This is due to soaring jet fuel costs that are affecting the global aviation sector. It is one of the few major U.S. carriers that has taken steps to protect margins, as operating costs are rising due to increased jet fuel prices. This was a result of tensions in Middle East, which disrupted shipping along the Strait of Hormuz. The Strait of Hormuz carries about a fifth of all global oil flows. According to the International?Air Transport Association, jet fuel has risen to $209 per barrel globally from an average of $85 to $90 per barrel in February, before the Iran War began. American Airlines announced that it would increase the fees for first and second checked bags by $10 for domestic and short-haul flights. The price of a third bag has been increased from $50 to $200 for travellers. This pricing structure already existed in some places, like Canada. American Airlines also announced an additional $5 "surcharge" on checked bags for customers with basic economy tickets. This will be effective May 18. Basic economy passengers will also have to pay a fee in order to select a seat. They won't be eligible for free system-wide upgrades after May 18. American Airlines has also announced that travelers who purchase tickets in premium cabins on domestic flights will receive free luggage. (Reporting by Aishwarya Jain in Bengaluru; Editing by Shinjini Ganguli)
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British Airways reduces Middle East flights and shifts capacity from Asia to Africa
British Airways announced on Thursday that it will reduce flights to the Middle East once services resume. It will also permanently drop 'Jeddah' as a destination. The airline is adding capacity for India and Africa as regional tensions have disrupted schedules and weighed on demand. Changes are being made following a period of disruption caused by the U.S./Israeli war on Iran, which resulted in the cancellation of 21,000 flights. This also narrowed the flight corridor between Europe and Asia. IAG's airline, which had suspended a few flights after the conflict began in late February, now plans to reduce its services to Dubai, Doha, and Tel Aviv from July to just one flight per day. The IAG-owned airline, which suspended?some flights when?the conflict erupted in late February, plans to reduce services to Dubai and Doha to just one daily flight from July 1st. British Airways will also use the aircraft it has freed up to increase capacity on its Delhi and Hyderabad routes and to add daily flights to Bengaluru, Nairobi and other destinations. The airline stated that it was "keeping the situation under constant scrutiny" and is in direct contact with the affected customers to provide them with options. The schedule changes will be in effect?throughout the summer season ending on October 24. One Dubai service will restart on October 16. Raechel Thankam Job, Bengaluru (Reporting) and Nivedita Battacharjee (Editing)
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Industry sources claim that Kazakhstan will increase oil flow via BTC pipeline to 16% in April.
Two industry sources have told?two industry sources? that Kazakhstan will increase oil exports via the Baku-Tbilisi -Ceyhan pipe by 16% in April from March. Two industry sources told?that Kazakhstan plans to increase oil exports via?the Baku-Tbilisi-Ceyhan pipeline by 16%?in April from March. The pipeline, which can move more than a million barrels a day, will deliver oil from the Caspian Sea, a landlocked region, to the Mediterranean Sea, avoiding politically unstable areas such as Iran and Russia's Caucasus. The BTC, which runs 1,768 km (1.100 miles), is vital?for the delivery of Azeri oil and Kazakh crude to global markets through Turkey. The sources, who weren't authorised to talk to the media did not explain why the?supply via the BTC pipeline had been increased. Sources said that Kazakhstan plans to send between 140,000 metric tonnes and 150,000 metric tons of oil via the BTC for further deliveries this month. This is up from 124.500 tons in March. Tengizchevroil, a venture of Chevron, said that "approximately 120,000 tonnes" will be delivered by Kazakhstan's largest oilfield Tengiz. The rest of the oil will come from Kashagan. Tengizchevroil?and?Kashagan?s operator NCOC didn't immediately respond to a comment request. Tengiz has returned to full production following power supply disruptions earlier in the year. Kazakhstan exports?around 80 percent of its oil via a pipeline owned by the Caspian Pipeline Consortium, and its terminal located on the Russian shores of the Black Sea. (Reporting and Editing by Janane Vekatraman).
Airline cancels flights due to Middle East conflict
The global air travel industry is still severely affected by the Iran War. Many people are unable to reach their destinations as planned after major Middle Eastern hubs such as?Dubai Doha and Abu Dhabi were closed.
The latest flight information is listed below alphabetically:
AEGEAN AIRLINES
The largest airline in Greece has cancelled flights from Tel Aviv to Beirut and Tel Aviv to Amman. It cancelled flights from Erbil to Baghdad and?Dubai to June 29.
AIRBALTIC
AirBaltic, a Latvian airline, says that flights to Tel Aviv have been cancelled up until May 31. Dubai flights are cancelled through October 24.
AIR CANADA
The Canadian carrier has cancelled flights until September 7 to Tel Aviv, Dubai and Abu Dhabi.
AIR EUROPA
Spanish Airlines has canceled flights to Tel Aviv from May 3 until now.
AIR FRANCE-KLM
Air France has suspended Tel Aviv flights to Beirut, Dubai, and Riyadh until May 3.
KLM has suspended its flights to Tel Aviv and Riyadh until May 17.
CATHAY PACIFIC
Hong Kong Airlines has cancelled all flights to Dubai and Riyadh up until May 31. In April, the airline will increase passenger flights from London, Paris, and Zurich to Europe to meet a surge of demand.
The U.S. carrier cancelled flights between New York and Tel Aviv, and has delayed the start of its Atlanta to Tel Aviv route till September 5. The launch of its Boston-Tel Aviv flight, scheduled for late October, was delayed.
EL AL ISRAEL AIRLINES
Customers who had planned to leave Israel by April 18th have been informed that their flights, including return flights, have been cancelled.
From April 13, the number of destinations will be increased to 30 and then gradually increase throughout the month.
EMIRATES
After a partial opening of the regional airspace, Emirates Airlines has announced a reduced schedule.
ETIHAD? AIRWAYS
The UAE carrier said that it operates a commercial flight schedule from Abu Dhabi to around 80 destinations.
FINNAIR
The airline continues to avoid airspace in Iraq, Iran Syria and Israel, while cancelling its Doha flights. The airline will only resume its Dubai flights in October.
FLYNAS
Saudi Budget Airlines has suspended flights until April 15 to Dubai, Abu Dhabi Sharjah Doha, Bahrain Kuwait Iraq and Syria.
IAG IAG's British Airways will reduce flights to the Middle East once services resume. They will?permanently drop Jeddah from their list of destinations, while increasing capacity in India and Africa.
Plans to reduce service to Dubai, Doha, and Tel Aviv from two daily flights to one daily flight by July? Riyadh service will be reduced from two to one daily flight from mid-May. The changes will apply until the end of the summer season on October 24. One Dubai service will restart on October 16.
Iberia Express, the Spanish low-cost carrier of IAG, has canceled flights to Tel Aviv until May 31.
JAPAN AIRLINES
Japan Airlines suspends scheduled Doha-Tokyo and Tokyo-Doha flight schedules until May 10. Japan Airlines has also announced additional flights between Tokyo, London and Doha on April 25.
The Polish airline has suspended flights to Tel Aviv till May 31. The airline also cancelled flights from March 31 until May 30 to Beirut and Riyadh. The airline will?operate their winter route to Dubai from October.
LUFTHANSA GROUP
Lufthansa and Swiss Airlines suspended flights from Dubai and Tel Aviv to Abu Dhabi until May 31. ITA Airways, Brussels Airlines and Edelweiss suspended flights from Amman, Beirut and Dammam to Riyadh until October 24, and to Erbil, Muscat, and Tehran to Abu Dhabi. Lufthansa Cargo will continue to operate as usual, with the exception of the Tel Aviv flight suspension which will run until April 30.
Eurowings, a low-cost airline, plans to suspend its flights to Tel Aviv and Beirut through April 30, and to Dubai, Abu Dhabi, and Amman until October 24.
MALAYSIA AIRLINES
Malaysian Airlines has suspended flights to Doha up until June 14.
NORWEGIAN AIR
The low-cost airline has delayed the launch of its Tel Aviv, Beirut and Beirut services until June 15.
PEGASUS
Pegasus Airlines, Turkey's national airline, has cancelled all flights to Iran, Iraq, Amman Beirut, Kuwait Bahrain Doha Dammam Riyadh Dubai Abu Dhabi Sharjah and Abu Dhabi until May 1.
ROYAL MAROC
Moroccan airline cancels flights to Doha until June 30, and to Dubai until May 31,
QANTAS
Australia's flag-carrier is adding flights to Rome, Paris and other European destinations to meet the demand. The number of flights to Paris will rise from three to five weekly return flights, and the Perth to Singapore service will go from daily to ten flights a week. A new schedule will be implemented gradually for flights starting in mid-April, and running until late July.
QATAR AIRWAYS
The airline said that it will gradually increase flights from Doha, Qatar to more than 120 destinations by the middle of May.
SINGAPORE Airlines
In response to increased demand, the carrier has extended the suspension of Singapore-Dubai flights until May 31.
TURKISH AIRLINES SunExpress - Turkish Airlines' joint venture Lufthansa has cancelled flights from Dubai to April 30.
WIZZ AIR
Low-cost airlines have suspended flights from Europe to Israel, Dubai, Abu Dhabi, and Amman until the middle of September. All flights to Medina are suspended permanently. (Compiled by Josephine Mason and Jamie Freed. Elviira Loma, Tiago Branao, Agnieszka Olenka, Bernadette HOG, Boleslaw LaSocki, Romolo TOSIANI. Editing by Sumana Nady, Joe Bavier Mark Potter and Milla Nussi-Prussak
(source: Reuters)