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Urals oil price rises in Russian ports due to strong demand and lower freight
According to calculations, the discount for Russian Urals Oil on a FOB Basis for cargoes that?load from the Baltic Port of Primorsk in the month of April?was reduced to $15-$17 a barrel against dated Brent, from $24-$27 a barrel?in the second?half?of March. This was due to falling freight rates which reduced the?costs to Russian sellers. LSEG data show that the urals price in Russian ports has remained at a 12-year high of $100 per barrel. This is due to strong Brent prices and a combination of softer freight rates, firmer premiums, and strong premiums, which are boosting Russian producers' revenues. On Monday, the price of 'physical crude oil cargoes' for immediate delivery to Europe reached a new record near $150 a barrel as global demand remained strong despite disruptions in supplies caused by the U.S./Israeli war against Iran. Three sources confirmed that the premiums for Russian Urals oil in India remained unchanged despite the expiration of U.S. waivers. They added that lower freight rates helped sellers increase their profits. The sources stated that premiums for Urals oil delivered into Indian ports are $7-$9 above Brent on a DAP basis (delivered to port), in line with the estimates of April-loading cargoes, which were sold after the recent rise in price. Prices vary depending on the deal terms and seller. Last week, freight rates dropped to $18-19 million for a Suezmax journey from Russian Baltic ports into India. The cost of shipping Aframax from Primorsk, Russia to India fell to around $16 million, down from $20 million last month. The International Energy Agency reported that Russia's crude oil and refined product revenues rose in March. They had fallen to their lowest level since the beginning of the Ukraine Conflict in?2022. This was due to the price spikes caused by the Iran War. The firmer Urals prices in Russian ports will continue to support?Moscow revenues for April. Indian refiners continue to?buy Russian oil for delivery in May, despite the expiration of the U.S. sanction waiver that allowed the purchase of Russian oil already at sea, traders reported.
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Jordan, UAE sign $2.3 billion Aqaba rail project deal
State news agencies from both Jordan and the United Arab Emirates reported that they signed an agreement on Wednesday to start a $2.3 billion rail line to 'Aqaba Port' and to form a joint venture to build and run it. The agreement relates to?the construction of a 360-kilometre rail?linking mining areas in Jordan, Al-Shidiya & Ghor Al-Safi with its port of Aqaba. The project will?transport 16 metric tons of phosphate and potassium?annually with an investment totaling $2.3 billion. The UAE's official news agency said that the UAE-Jordan Railway Company is a joint venture of?several Jordanian stakeholder and L'IMAD Holding Company, Abu Dhabi's new sovereign wealth fund. According to the Jordanian State News Agency, the project is the first step to building the Jordanian National Railway?Network Project to connect 'Aqaba to neighboring Arab countries and to link it with ports in Syria and the Mediterranean.
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Austria anticipates a shortfall in European fuel supplies from May
Austrian 'Economy Minister Wolfgang Hattmannsdorfer said during an official trip to India on Wednesday that the 'war in the Middle East - a reduction in fuel supplies - will be felt throughout Europe by next month. Oil prices have soared as a result of the Israeli and U.S. strikes against Iran and the response of Tehran, which has largely closed down shipping in the Strait of Hormuz. Western governments are now looking for ways to cushion this blow to consumers. Hattmannsdorfer told?reporters from New Delhi that "the upheavals in recent weeks will arrive Europe with a 'time lag. His office was not available to comment. Hattmannsdorfer said that in May, diesel deliveries will fall by 5% while jet fuel will drop by 15%. This would "have an effect on the price", according to APA. Vienna International Airport is well-supplied with jet fuel, as 90% of its needs come from OMV's Schwechat refinery. However, the effects would be felt elsewhere. Hattmannsdorfer stated that "we are prepared for an emergency" and that Austria had not yet released oil from its strategic reserves, which it 'agreed' to tap in a coordinated move among member states of the International Energy Agency last month. Reporting by Francois Murph and Alexandra Schwarz Goerlich Editing Peter Graff
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Financial ministers warn about the long-term impact of Middle East conflict on markets
Finance ministers from over 10 countries said that even after the Middle East conflict is resolved, it will continue to weigh on global growth and inflation. The British government issued a statement during the IMF and World Bank Spring Meetings in Washington that said: "Renewed hostilities, an expansion of the conflict, or continued disruption of the 'Strait of Hormuz' would pose serious risks to global energy security, supply chain, economic and financial stability." "Even with a durable solution to the conflict,?impacts on markets, growth and inflation will continue." The statement was signed off by the finance ministers of Britain, Australia and Japan, as well as Sweden, the Netherlands?Finland, Spain, Norway Ireland, Poland, New Zealand, and Spain. The statement said: "With government budgets being constrained, we are committed to ensuring any domestic responses must be fiscally responsible and targeted towards those most in need of support." "We are committed to avoiding protectionist measures, and we call on all countries not to take them, such as unjustified 'export controls,' stockpiling, and other trade barriers, in the?hydrocarbon supply chain and other supply chains that have been affected by this crisis.
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Spain and Portugal hotel and flight bookings are up as tourists choose to avoid the Middle East
Industry data shows that Spain and Portugal have seen a rise in late-spring and summer hotel and flight bookings, as millions of travellers flee war-affected hubs and destinations in the Middle East. According to the digital travel platform Sojern, summer flight bookings, including transit flights, to Spain soared by 32% on an annual basis as of April 2. Hotel searches also rose by 28%. Portugal saw a 21% increase in flight bookings and a 16% rise in hotel searches. Travel data firm Mabrian reported a decline in Middle Eastern destinations and an increase for the southern Mediterranean last month. Spain, which rivals France to be the most visited country in the world, was the biggest beneficiary of this shift. The eastern Mediterranean has seen a surge of cancellations. This includes European Union member Cyprus, where a British air base was hit by a drone on March 2. It highlights the wider fallout of the Iran war. Spain's Exceltur industry group has revised its projections upwards since the conflict began on February 28. This is a modest improvement, but still significant at a moment when inflation and geopolitical concerns are affecting consumer spending. Summer holidays are booked months in advance. "Summer holidays are planned months in advance. Sylvia Weiler is Sojern's global destination manager. She added, "Travellers are adapting, rather than retreating." Up to 181 millions tourists visit the Middle East & eastern Mediterranean every year. Spain received a record number of tourists last year. Exceltur forecast last week that Spain's tourism industry would grow in real terms by 2.5% this year, to 227 billion euro ($267 billion). This is up from the previous projection of 2.4% and the 2.1% growth last year. The industry estimates that diverted tourists could add an extra 4.2 billion Euros to the total for this year. This sector is expected to grow faster than the overall economic growth of 2.3%, according to the forecast. Cehat, the main Spanish hotel association, expects summer room occupancy rates to rise up to 3%. A CAUTIOUS VIEW IS NEEDED IN LIGHT OF THE RISKS "Tourism is choosing to travel further away from conflict zones in the Mediterranean, like the Canary Islands for summer family holidays," said Cehat president Jorge Marichal. He warned that this could lead to a decrease in overall travel. According to Turespana (the official tourism agency), airlines are increasing capacity. In April, there were nearly?6% fewer seats than one year earlier. The biggest increases occurred on flights coming from the United States, followed by those flying out of Britain. Exceltur warned that higher jet fuel prices and more disruptions to long-haul travelers at Middle Eastern transit hubs may limit the gains. Cehat's Marichal said it more bluntly: "It all depends on what happens at the Strait of Hormuz because all of these forecasts may be thrown out the window." The Iran war has all but closed the strait through which one-fifth or more of the world's oil and gas is transported.
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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, and also to Erbil, Baghdad and Baghdad. AIRBALTIC AirBaltic, a Latvian airline, says that flights to Tel Aviv are canceled until May 31. Dubai flights are cancelled up until October 24. AIR CANADA Canadian?carrier cancels flights to Tel Aviv, Dubai and other destinations until September 7. AIR EUROPA Spanish Airlines has cancelled all flights to Tel Aviv till May 31. AIR FRANCE-KLM Air France has suspended Tel Aviv flights to Beirut, Dubai, and Riyadh until May 3. KLM suspends flights to Riyadh, Dammam and Dubai until May 17, and until June 14. CATHAY PACIFIC Hong Kong Airlines has canceled flights to Dubai and Riyadh up until 30 June. In April, the airline will increase its passenger flights from London, Paris, and Zurich to Europe to meet the increased 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 rest of 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 Finnish airline has cancelled all Doha flights up to July 2 and continues to avoid the airspaces of Iraq, Iran Syria, and Israel. 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. British Airways, owned by IAG, will reduce flights to the Middle East once services resume. They will permanently drop Jeddah from their list of destinations, but add 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 cancelled all 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 through May 30 to Beirut and Riyadh. The airline will operate its winter route to Dubai in October. LUFTHANSA GROUP Lufthansa and Swiss Airlines suspended flights from Dubai and Tel Aviv to Abu Dhabi until May 31. They also suspended flights from Amman, Beirut and Dammam to Riyadh. Erbil, Muscat, and Tehran to October 24. Lufthansa Cargo will remain the same except for Tel Aviv, which is suspended until April 30. Eurowings, a low-cost carrier, plans to suspend flights from Tel Aviv to Beirut, Erbil and Erbil until April 30, and from Dubai to Abu Dhabi, Amman and Dubai through October 24. MALAYSIA AIRLINES Malaysian Airlines has suspended all flights to Doha until June 14 NORWEGIAN AIR The low-cost carrier has delayed the launch of its Tel Aviv & 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 national carrier has added flights to Rome and Paris in response to a surge in demand for European destinations. The number of flights to Paris will be increased from three to five weekly return flights, and the Perth to Singapore service will go from daily to ten flights per week. A new schedule will be implemented gradually for flights starting in mid-April. It will run through late July. QATAR AIRWAYS The airline said that it will gradually increase flights from Doha, to more than 120 destination by mid-May. SINGAPORE Airlines In response to increased demand, the?carrier has extended its Singapore-Dubai flight suspension until May 31 while adding services for Singapore-London Gatwick?and Singapore -Melbourne routes between late March and October 24. TURKISH AIRLINES SunExpress, Turkish Airlines joint venture with Lufthansa has cancelled flights from Dubai to April 30. WIZZ AIR Low-cost carrier suspends flights from Europe to Amman, Dubai and Abu Dhabi until mid-September. All flights to Medina are suspended indefinitely. (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
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Dubai's iconic Burj Al Arab Hotel will close for 18 months to undergo a refurb amid a tourism decline
A staff member confirmed that the luxury hotel Burj al Arab in Dubai would be closing for a major 18-month renovation. This is the first time it has closed since opening 'in 1999. It also comes at a period when the tourism industry in the region was slowing down due to the U.S./Israeli war against Iran. In a Tuesday statement, the hotel owner Jumeirah stated that work would be done in 18-month phases under the supervision of interior architect Tristan Auer. The statement did not mention that the hotel would be closed for the renovation. The hotel employee said that guests who booked during the closure will be offered a 'alternative stay in nearby hotels'. The person stated that the period of closure could change. The person said that the period of closure is subject to change. Employee said that the "long-awaited work" is not linked to?the March incident. In a statement, Jumeirah in the United Arab Emirates did not link the project with the war. It is noteworthy that the conflict has affected travel to Dubai. Flight disruptions have been reported in the UAE, and luxury groups are warning about pressure on profits due to a weakening visitor demand. (Reporting and editing by Milla Nissi Prussak, Keith Weir and Mireia merino)
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Bosnia chooses US investor to build gas link with Croatia in order to reduce reliance on Russia
?U.S. AAFS Infrastructure and Energy LLC is the lead investor and project leader for a long-delayed natural gas pipeline to Croatia, which has been seen as an alternative gas to Russian. The two houses of the Bosniak-Croat Federation parliament have agreed to amend the law that regulates the Southern Interconnection gas pipeline, which will deliver U.S. Natural Gas to Bosnia via a terminal for liquefied?gas on the Croatian Island of Krk. Bosnia-Herzegovina is made up of two autonomous regions. The other region is the Serb Republic. The Sarajevo state company BH Gas that had been previously appointed to lead the 'project' was removed from the law which Croatian parliamentarians in the upper house of the parliament blocked?for many years. They insisted on?the creation of a new system operator for the transmission of the pipeline through the Croat-dominated area of western and south Bosnia. The Federation government had previously stated that it was necessary for the law to be amended in order to avoid an energy crisis if the European Union stopped Russian gas deliveries?from 2028. Amir Bekan is the director of AAFS in Sarajevo. He said that the total investment by the company in Bosnia was around $1.5 billion. The majority of this amount came from the pipeline. However, around $300 million went to'modernising' the airports at Sarajevo & Mostar. The TurkStream pipeline is the only way that Russia can supply Bosnia with natural gas. Now, the government will sign a direct contract with AAFS. The government is also expected to sign a?agreement with Croatia on the pipeline at the end of April. Observers warn that Bosnia's fragmented and complex legal system could slow down the process, particularly in relation to expropriation proceedings of land owned by the state along the pipeline route.
Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The U.S. and Israeli war against Iran, which has pushed up jet fuel prices, has shook the aviation industry around the world. Airlines have been forced to increase fares and re-evaluate their financial forecasts.
In recent weeks, jet fuel prices have increased from $85-$90 per barrel up to $150-$200 per barrel. This is a major financial blow to an industry that relies on fuel for a quarter of its operating costs.
Here is an alphabetical list of the ways airlines are responding to this issue:
AEGEAN AIRLINES
The Greek airline anticipates that the suspension of Middle East flights, as well as a spike in fuel costs, will have "a significant impact" on their first-quarter earnings.
AIRASIA X
The executives of the?Malaysian airlines said that the company has cut 10% of its flights in the group. Fuel prices have also been increased by about 20%.
AIR FRANCE-KLM
The airline group announced that it would increase the price of long-haul tickets to offset rising fuel costs. Cabin fares will rise by 50 euros ($58).
AIR INDIA
The Indian flag carrier announced it would change its fuel surcharge system from a flat-rate domestic surcharge grid to one based on distance. The airline said that surcharges for international routes do not compensate the astronomical rise in jet fuel prices.
AIR NEW ZEALAND
On April 7, the airline announced that it would cut flights in May and June, and raise fares. It was one of the first airlines to announce a large increase in ticket prices after the conflict began. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets.
AKASA AIR
Akasa Airlines, based in India, announced that it would be introducing fuel surcharges ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights.
ALASKA AIR
The U.S. carrier said that it would raise fees by $5 for the first bag and $10 for the second for flights in North America, including Hawaiian Airlines. The third checked bag was raised from $50 to 200 dollars.
AMERICAN AIRLINES
The U.S. carrier announced that it would increase the fees for checked baggage by $10 for each of the first two bags, and $150 for the third bag, on both domestic and short-haul flights. The airline has also reduced certain benefits for economy travelers.
The fuel price increase was expected to cause a $400-million increase in the first quarter expenses.
CATHAY PACIFIC
Hong Kong Airlines said that it will cancel about 2% of its scheduled passenger flight between mid-May and the end of June. Meanwhile, HK Express, its budget airline, is cutting around 6%. The carrier had previously announced that it would increase its fuel surcharge across all routes by 34% from April 1, and to review the charges every two weeks.
CEBU AIR
The Philippines-based carrier said that the sharp increase in fuel prices is a major concern. It will continue to review pricing and network strategies for a reduction of?the impact.
CHINA EASTERN EXPRESS AIRLINES
Air China said that it would increase fuel surcharges on domestic flights starting April 5. Flights of less than 800km will be charged a surcharge of 60 yuan, and flights above 800km will be charged a surcharge 120 yuan.
DELTA AIR LINES
Delta announced that it would reduce capacity by 3.5 percentage points compared to its original plan, and increase fees for checked baggage in order to offset the rising costs of jet fuel. The price increase will be $10 on first and second bags and $50 on third bags.
The U.S. carrier pulled all planned growth in capacity for the current quarter, and forecast profits below Wall Street expectations. Delta CEO said that it would not update its full-year forecast due to uncertainty about how long fuel prices would rise.
EASYJET
EasyJet CEO Kentonjarvis warned that European consumers can expect to pay higher prices for tickets towards the end summer when fuel hedges expire.
FRONTIER AÉRIENS
Fuel prices have increased dramatically since the airline's forecast.
GREATER BAY Airlines
The Hong Kong-based firm said that it will increase fuel surcharges for most routes starting April 1, but keep them the same on routes to mainland China and Japan.
The carrier has announced that its surcharge on flights between Hong Kong and the Philippines will double.
HONG KONG Airlines
The airline announced that it would 'raise fuel surcharges up to 35% starting March 12th, with the biggest increase occurring on flights between Hong Kong, Bangladesh, and Nepal where the charges will rise from HK$284 to HK$384 (US$49).
British Airways' owner IAG stated on March 10, that it does not intend to increase ticket price immediately as it has hedged a large amount of fuel in the short to medium term.
INDIGO
India's largest airline announced that it will begin charging fuel fees on both domestic and international flights as of March 14. The charges include 900 rupees per flight to the Middle East, and 2,300 rupees per flight to Europe. Sources say that the company is lobbying for the Indian government's reduction of fuel taxes.
JETBLUE AERWAYS
Low-cost airline based in the United States has announced that it will increase fees for optional services, such as checked luggage, due to "increasing operating costs". The airline said that baggage prices would rise either by $4 or $9.
Sources with knowledge on the subject have confirmed that KOREAN will be in emergency mode as of April due to rising oil costs. The airline will implement phased responses based on the oil price levels and increase company-wide efficiency to offset rising fuel costs.
PAKISTAN INTERNATIONAL FLIGHTS
Fuel surcharges are cited as the reason for raising domestic flight prices by $20, and international flights by up to $100.
QANTAS AIRWAYS
Qantas, Australia's largest airline, said it had delayed its planned A$150-million ($106-million) buyback. It also increased the estimated fuel bill in 2026 for the second half to A$3.1-A$3.3 billion from an earlier A$2.5 billion estimate.
Scandinavian Airlines announced that it would cancel 1,00 flights in April due to high jet fuel and oil prices. In March, the airline had cancelled "couple hundred" of flights.
SAS, which has already raised flight prices, stated that the surge in fuel costs would be a major blow to the aviation sector, even if they tried to absorb them.
SPRING AIRLINES
Budget Chinese airline announced that it will increase fuel surcharges for domestic flights starting April 5. Details to be revealed later.
SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES
The American carrier announced that it would increase the fees for checked bags by $10 each for the first two bags. This will bring the cost to $45 and $55 respectively for the first bag.
The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues.
THAI AIRWAYS
The Thailand-based airline?said that it would increase fares between 10% and 15% in order to combat rising fuel costs.
TURKISH AIRLINES LUFTHANSA
SunExpress is a joint venture of Turkish Airlines and Lufthansa. It announced that it would be imposing a temporary fuel charge of 10 euros per person on routes between Turkey, Europe and the Middle East, starting May 1. The fuel surcharge will be applied to all bookings made after April 1, for departures after May 1.
Turkish Airlines announced on April 10, that it would not be distributing any dividends from its 2025 net profits, instead opting to keep earnings in order to conserve cash.
T'WAY AIR
As part of its efforts to combat the effects of the Middle East war, the South Korean low cost carrier announced on April 13 that it will furlough cabin crew in May and/or June without pay.
UNITED AIRLINES
Scott Kirby, CEO of the U.S. carrier, said that the airline will cut unprofitable flights in the next two quarters to prepare for the oil price remaining above $100 by the end 2027.
Andrew Nocella, United's Chief Commercial Officer, said that the company was able to increase fares in response to a rapid rise in jet fuel and oil prices.
In an email, the carrier said that it would also be increasing the first and second checked bags fees by $10 to customers traveling in Latin America, Mexico, Canada, and the United States.
VIETJET
Vietnamese budget airline?said that it had reduced flight frequencies on certain routes due to possible fuel shortages.
VIETNAM Airlines
Vietnam's aviation authority announced that the carrier will cancel 23 flights per day on domestic routes from April after it requested assistance from the government to remove an environment tax on jet fuel.
VIRGIN ATLANTIC
Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will struggle to achieve profitability.
VIRGIN AUSTRALIA
Virgin Australia has said that it anticipates an increase of jet fuel costs of between A$30 and A$40million for the second half this fiscal year. It also expects a 1% decrease in capacity during the fourth quarter. The airline had previously announced that it would adjust fares in order to reflect the rising costs.
WESTJET
Canadian Press reported that the airline would add a fuel surcharge of C$60 ($43), and will combine some flights to reduce costs.
(source: Reuters)