Latest News
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Crimean families line up for hot food as Ukraine cuts power supply
A chef prepared to serve dozens if people who were waiting for a hot meal after Ukrainian attacks had cut off power in their kitchens. Fuel supplies in cities and towns throughout Crimea, the area that Russia annexed as part of Ukraine in 2014, were limited for most of the summer due to Ukrainian attacks on power plants and other infrastructure. Ukraine says that it is "bringing the war home to Russia" through intensified strikes on the territory and deep within the country controlled by its neighbor. Oksana Mdyud, the head of Massandra's town administration, said that her workers serve 200 people a day. She said, "We are preparing hot meals because not everyone can cook food hot on an electric stove." Marina, a local woman, complained that her leg pain made it difficult to descend from her 10th floor?apartment, but her lack of electricity sent her on a 'hunt' for a gas cooker and cylinders. She said that her apartment was empty. "We have an electric cooker, that's all." Alexandra, a resident of a nearby older age, also said that she was lured by the aroma of the food after being without electricity for 10 days. She added that "they turned it back on today at 4 o'clock", but was not sure if the lights would be still on when she got home. Reporting by Lucy Papachristou, Writing by Andrew Heavens
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Iraq is expecting to extend pipeline agreement with Turkey, INA reports
Iraq is planning to sign a?agreement for a year to continue Iraqi crude?flows?through?the Turkish?port of Ceyhan. This was announced by the oil ministry, according to Iraqi News Agency. The agreement would renew a 'decades long bilateral arrangement which expired on Monday, which allowed the operation of Baghdad’s 'only working export pipeline, the Iraq Turkey Pipeline (ITP). Salim al Rikabi, INA's spokesman, said that Iraq's Oil Minister is visiting Turkey on Saturday to sign an agreement providing for a daily capacity of 750,000 barallons. The extension will give time to negotiate a comprehensive agreement. The Turkish government wants the pipeline with its?capacity to transport 1.5 million barrels of oil per day to be fully utilised, and possibly extended to southern Iraqi fields. According to Turkish data, the pipeline currently carries?170,000 barrels per day.
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UKMTO reports two incidents of tanker accidents off Oman
The 'United Kingdom Maritime Trade Operations' (UKMTO), a division of the United Kingdom Government, said : "On Saturday we received reports...of two maritime incidents...off Oman. One incident involved a tanker that was hit by an unknown projectile." UKMTO reported that in the first incident a tanker struck by a projectile unknown about 11 nautical miles northeast of Oman’s Lima. The damage to the engine room left the vessel without command. The UKMTO said that there were no reports of casualties or environmental impacts. Later, the UKMTO reported that it received a second report of an incident?21 nautical mile northeast of Oman’s Khasab. The tanker's master reported a large explosion and splash in close proximity to his vessel. However, no damage was reported. Lima and Khasab lie on Oman's Musandam Peninsula, at the entrance to the Strait of Hormuz. This is a strategic shipping chokepoint through which a fifth of the world's oil consumption passes. In recent weeks, shipping through the Strait of Hormuz was a risky endeavor. Ships reported security incidents and shipowners took 'additional measures' as hostilities between Iran and the United States escalated. Reporting by Hatem Mahar and Enas Alashray; Editing By William Mallard & Kirsten Donovan
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India's record renewable power generation in July reduces coal's share to a 1-year low
In July, the share of coal in India's power generation mix fell to its lowest level?in an entire year as renewable energy production surged?to a new record high. The data revealed that renewable power has risen to 20% of India's total mix. The data showed that the number of kilowatt hours (kWh) consumed in July was 36.25, a 30% increase from last year. Grid-India, the state-run regulator, calculated that coal-power generation dropped to 65.7% from 69% in July. India's clean energy generation has risen as solar and wind output have exceeded 100 gigawatts. This is the first time that this figure was higher than 42.8%. Manoj Kumar, analyst at the Centre for Research on Energy and Clean Air said that the majority of peak power demand occurs during the daytime, when solar contributes more. He cited a rising renewable share in the nation's electricity generation. The data revealed that coal-fired electricity generation increased by 12.8% on an annual basis to 119.40 Gigawatt Hours in July. Analysts attribute the rise in coal-power production to a decline in hydropower and due to an El Nino pattern where "searing heat" is driving the demand for cooling at night. El Nino has caused a significant shift in rainfall patterns and elevated temperatures. This is why hydropower generation fell for the second consecutive month. CREA stated that the lower hydro generation due to El Nino combined with increased power demand could result in a gap in power generation of nearly 18 billion kWh. This will lead to an increase in coal-fired energy in India. Data showed that India's electricity production in July increased 10.4% compared to a year ago, reaching 181.79 billion kWh. Sethuraman N.R.; William Mallard, Editor
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In the shadow of the Berlin attacks, thousands are expected to gather in Amsterdam for a boisterous WorldPride.
The WorldPride flagship event will take place on Saturday in Amsterdam, with hundreds of thousands of revellers expected to line the canals. Organisers promise a 'boisterous' LGBT celebration. This is especially urgent following last week's deadly attack at Berlin's Pride. Scores of boats and balloons festooned in 'rainbow' flags will cruise through the city as huge crowds dressed in colorful outfits cheer on the banks. Amsterdam Pride's annual canal parade is a highlight. This year, Pride organizers around the world chose Amsterdam to host WorldPride. The theme of the two-week festival in the Netherlands will be "Unity". Security measures that are visible and covert Femke Halsema, the mayor of Amsterdam, said that Amsterdam would take additional measures without specifying them in response to an attack in Berlin where a van had been driven into a crowd and a suspect was later killed by German police. Dutch police have said that both covert and visible security measures will be deployed. Amsterdam Pride spokesperson said that the preparations were on track and the extra security wouldn't change the focus of the event, which is still inclusiveness. Martijn Albers, spokesperson for the Dutch government, said: "The goal of terrorism is spreading fear. We must not succumb to this." BERLIN ATTACK SHOWS IMPORTANCE PRIDE Julianne van der Hide, 25, who will be on a boat this Saturday, says the Berlin attacks only prove "how necessary and important Pride is still to today". On Tuesday, thousands attended a ceremony to honor the victims of the Berlin attack. They laid?flowers on the "Homomonument" in Amsterdam, a memorial of pink granite triangles that commemorates victims of anti gay oppression. Caspar Pisters, of the Dutch HIV Association said that everyone would be thinking about the Berlin attack. But he added, "As long there are people there will always be LGBTQ+ people. And no amount of violence, not even a thousand bombs, can change that." Mick Groeneveld, from Queer Museum, a group that is working to create a permanent LGBT museum for the Netherlands, stated the attack showed the vulnerability of the LGBT community. "At the Same Time, Making Ourselves Invisible is Not the Answer." (Reporting and editing by Peter Graff. Charlotte Van Campenhout)
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Yemen's Houthis have denied plans to charge ships navigating through the Red Sea fees
Yemen's Houthi-run maritime coordination group denied on Saturday that it intended to impose fees on commercial ships that?transit the strait of Bab?el?Mandeb. It said that no such decision had yet been made and that passage along the strategic waterway was free. The statement comes after a report Wednesday, citing regional sources that Iran-aligned Houthis considered imposing "fees" on ships traveling through the southern Red Sea, just a week following their declaration of a maritime blockade against Saudi Arabia. Sources?in the article had stated that?the proposal regarding fees?was discussed by Iranian officials with Houthi officials during their visit to Tehran in July. However, no timeframe had been set for its implementation. The Houthi Humanitarian Operation Coordination?Center's (HOCC) "safe transit" service is a free and voluntary service. The HOCC issued a statement that categorically affirmed that anyone or any entity requesting money to transit the Bab el-Mandeb strait in exchange for the Republic of Yemen -or HOCC- in any capacity, does not'represent the Republic of Yemen -or HOCC. The HOCC urged shipping companies to "not make 'any payments' or give any information to unauthorized persons or entities." (Reporting and editing by Tom Hogue; Mohammed Ghobari)
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Official from the White House confirms that no drones with weapons were seized at the FIFA World Cup
A White House official stated on Friday that among the '700 drones found at U.S. FIFA World Cup venues and fan zones, none were weaponized. Sebastian Gorka, White House Senior Director for Counterterrorism and Deputy Assistant to President Sebastian Gorka, told reporters during a drone conference in Washington, D.C. that "no weaponized drones have been seized." He claimed that the incidents were caused by hobbyists or others who did not know about flight restrictions set forth by the Federal Aviation Administration. Gorka stated, "They are just doing dumb things but we need to mitigate them." Gorka stated that the Trump administration recently held a meeting of senior officials to discuss the seriousness of drone threats. Gorka added that software solutions were key in keeping drones from violating airspace. All aircraft operations including drones were banned on match days of the World Cup within a three nautical mile radius? and up to 3,000 feet (914 m) above ground? around the?soccer?stadiums. This was only allowed if specifically authorized by air traffic control. The FAA has imposed temporary flight restrictions to ban drones near World Cup sites. Drones were banned from fan gatherings within a radius of one nautical mile and up to 1,000 feet above the ground. Gorka stated that the Homeland Security Department will release a report about counter-drones efforts during the World Cup. Reporting by David Shepardson, Editing by Chizu?Nomiyama and Rod Nickel
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WestJet begins parking Boeing 737 aircraft ahead of a looming strike
WestJet Canada announced 'on Friday that it has begun to park Boeing 737 planes as negotiations with flight attendants have failed to result in an agreement. This could lead a labor disruption. Cabin crew could go on strike as early as 12:01 am August 2 for the Calgary-based Onex Corp. The Canadian Union of Public Employees, who represents WestJet flight attendants, said that if negotiations fail to result in a'resolution' over the dispute regarding unpaid work, they will strike at 6:01 AM Mountain Time (6:01 GMT) on August 2. The union wants cabin crew paid from when they check-in to when they clock out. This is not currently the case. WestJet stated in a statement on Friday that it would "remain active" at the bargaining tables to reach a deal as soon as possible. Parking the aircraft also allows WestJet to maintain operational control. WestJet Encore flights ?operated? Codeshare flights and Bombardier Q400 flights operated by partners are not affected, it said. The Canadian Union of Public Employees did not immediately respond to an inquiry for comment. Reporting by Juby?Babu in Mexico City, Editing by Shilpi?Majumdar
Fuel relief from the Iran deal may keep airline ticket prices high.
Oil prices are expected to fall after the interim U.S. Iran peace agreement, but it is unlikely that passengers will see any immediate relief. Carriers may be able to maintain fares above those of pre-war.
The U.S. market is the most obvious example. Fuel costs have risen this year, but fare increases are still behind. Domestic seat growth is also limited. This gives airlines the opportunity to use lower fuel costs to rebuild margins, rather than reverse recent price hikes.
U.S. Jet Fuel Spot Prices were $2.85 per gallon on 17th June, down from a high of $4.88 in early April. According to calculations based on fuel consumption, a decline that large would reduce the U.S. airlines' annual fuel bill by over $40 billion.
FARES STILL LAG FUEL As jet-fuel prices rose, U.S. Airlines raised ticket prices, bag fees, schedules and reduced them, but these steps only offset part of the increase in fuel costs.
Jet fuel prices increased three times faster than airfares between January and May, according to industry data. Deutsche Bank estimates that U.S. carriers will only recover 60 cents for every dollar more spent on fuel - $14.4 billion of higher revenues against $24.1 billion of higher fuel costs. Alaska Air reported that it would recover about one-third of the fuel cost increase. Delta Air Lines and United Airlines, as well as American Airlines, estimated second-quarter recapture to be between 40% and 50%. JetBlue Airways, Frontier Group and other airlines expect to recover less that half.
United CEO Scott Kirby said that his airline is getting closer to recouping fuel costs through price: "We're going to recover 100% by the end the year."
Raymond James data shows that domestic average fares were up by 34.1% compared to a year ago as of June 8th.
Fuel prices are falling, so the question that needs to be answered is whether or not airlines can maintain their recent increases in fares. Conor Cunningham, Melius Research analyst, said that the ability to maintain prices is crucial. Lower gasoline prices may ease consumer pressure on high fares.
Uneven Pass-Through
Fare relief outside the U.S. is likely to be uneven. Jet fuel prices will not fall immediately because crude oil prices are still low. Until jet fuel prices drop to levels seen at the beginning of the year, airlines may keep their fares steady or even increase them if demand permits, according to Dudley Shanley.
Europe could see a split. Ruairi Cullinane, RBC analyst, said that long-haul fares will be more lenient because airlines are more successful in passing on fuel costs on these routes. Short-haul prices may be firmer, if bookings and demand are supported by the peace agreement. Analysts at HSBC said that China's three largest airlines are facing weak pricing power, and falling aircraft utilization. Hong Kong's Cathay Pacific, however, is in a better position, as higher fares and cargo revenues, along with premium demand, could offset fuel costs. Middle East traffic was disrupted by the war, which is why it's the only exception. Aviation analyst John Strickland said that some airlines could use promotions to gain back traffic. However, fuel is still too expensive to offer widespread discounts. He added that United Arab Emirates airlines could be more aggressive, and get stronger government support.
Earnings Before Discounts
The length of time that prices remain low will determine how much benefit airlines receive. Fuel bills are based on purchases made over time and not spot prices. Even after the most recent declines, jet fuel costs 54% more than it did a year earlier, according to the International Air Transport Association.
Southwest Airlines Chief Operating Office Andrew Watterson summarized the pressure. Watterson replied, "When is fuel going to drop?" when asked by a reporter about Southwest's return to its pre-pandemic profit margins.
As airlines attempt to rebuild their earnings, there is little incentive to reduce fares.
Jefferies estimates that each?5% decrease in its $3 per gallon fuel cost forecast for 2027 would increase projected earnings by 10 to 15% for Delta and Southwest, and as much as 50% for American Airlines.
No Broad Fare War
In previous U.S. fuel cycle, falling oil prices would often trigger a race to increase capacity that drove fares down. These conditions do not exist in most cases. The 'risk' of a wide-scale domestic fare war is being limited by aircraft delivery delays, tight capacity at airports and weaker low cost carriers. Industry data shows that U.S. domestic airlines seats are expected to increase by just 0.4% in the third quarter compared to 4.6% before the latest Middle East tensions.
J.P. Morgan analysts say that limited aircraft deliveries, and the pullback of budget carriers in the United States reduces the risk of "meaningful" capacity creep. This gives airlines an easier time than usual to maintain current pricing.
Fuel prices may not be as important to passengers than the demand for fuel. Shanley stated that the power of the consumer is a major factor. Reporting by Rajesh Singh in Chicago, Alessandro Parodi and Joanna Plucinska from London; Additional reporting in Hong Kong by Julie Zhu; Editing by Jamie Freed).
(source: Reuters)