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Sources say that the premiums for Russian ESPO blends are now near parity with ICE Brent in China due to weak demand.
Three?trading'sources' said that the Russian Far East ESPO blend crude differentials to be delivered to?China between July and August have fallen to parity with ICE Brent. This is due to weak Chinese demand, as well as expectations of a higher global supply after a??U.S.Iran peace agreement. India, the second largest buyer of Russian crude, is also seeing a softer price trend. This further reduces Moscow's revenue, which was already being squeezed by lower oil prices. The U.S. waiver of Iranian oil could push ESPO blend differentials to a discount compared to the ICE benchmark in China. According to one source, Russian oil suppliers stopped offering on Tuesday after the announcement. Sources said that cargoes for delivery in July-August are trading at parity with?ICE Brent or at a slight premium of less than $1 a barrel delivered into Chinese 'ports. Some June-July cargoes sold at discounts to benchmark Brent. However, traders said that this was a small percentage of all transactions. After refining losses caused by high oil prices and low demand, several teapots located in China's main oil-refining hub of Shandong Province, scheduled maintenance for June or July. Shandong Yulong Petrochemical - a major Russian oil purchaser - shut down one of its crude?units for maintenance about two weeks back. The shutdown of the 200,000-barrels-per-day crude unit is expected to last around ?a month. Two traders said that the average operation rate for Shandong teapots has dropped below 50% in recent weeks, to its lowest level this year. Teapots' profit margins have also increased, largely due to the sharp fall in Brent prices. Local consultancy Oilchem estimated Shandong independent refining companies' average profits at 126 Yuan ($18.58). The company had been losing money for the last two months. Despite lower prices, ESPO blend?export volume remains robust. It has been above 1 million bpd most of this year according to traders and shipping data.
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India's Akasa Airlines targets a 30% capacity increase this fiscal year
The airline announced on Tuesday that it plans to increase passenger capacity by 30 percent in the current fiscal year, following a revenue rise of 37% and a smaller loss. The unlisted airline didn't disclose revenue or income figures but added that they were considering?using the Indian government’s loan guarantee and pricing stabilisation schemes? for the industry. This month, the government approved a $1billion fuel stabilisation fund to keep the price of jet?fuel in check after it soared following the Iran War. Jet fuel is the most expensive expense for airlines. Akasa reported that it had reduced its cost per available seat kilometer by 4% over the past year, and that margins were up?by 60 percent as a result of restructuring. It added ten Boeing 737 MAX aircraft in the year ending March. Akasa Air has a 5.4% market share in India's domestic aviation industry, which is dominated primarily by Air India and?IndiGo, owned by the Tata Group. (Reporting and writing by Abhijith?Ganaparavam, Kashish Tandon, Editing by Christian Schmollinger & Edwina Gibbs).
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NatPower and Tesla agree to first phase of $5 Billion battery storage plan
The independent energy company NatPower and Tesla announced on Tuesday that they had signed a deal for the construction of 25?gigawatt-hours of battery storage capacity in Italy and Britain. This is just the first phase of a $5 billion project. Battery storage is being implemented in a number of countries across Europe to balance the deployment of intermittent renewable energy capacity. The agreement will last for a period of five years and will see?NatPower using Tesla's Megapack batteries. NatPower will use Tesla's technology for trading, which controls when to purchase and sell electricity. The companies announced that five initial projects would be built as the first phase of the programme, which aims to?exceed 100 GWh in storage capacity at a cost of construction of $4 billion or $5?billion. The companies added that revenues could 'potentially surpass $15 billion over the next 20 years. The sector has the technology and capital, but it struggles to deliver infrastructure in a timely manner. Fabrizio Zaga, CEO of NatPower, said that what we built with Tesla was a?ecosystem which enables alignment between capital and execution and can be replicated in multiple markets.
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The morning bid for EUROPE-Yen is in trouble
Gregor Stuart Hunter gives us a look ahead at what the markets will be like in Europe and around the world. The yen is once again near its lowest levels?in the last 40 years, and the possibility of a joint intervention is looming after the?U.S. and Japan's finance minister met online. Treasury Secretary held an online "meeting" to discuss global financial markets. In the morning Asian trading on Tuesday, the yen traded at 161.60 to a dollar, its lowest level in two-years. It had moved within a few pip of levels that were not seen in decades during U.S. market hours. The Bank of Japan has increased interest rates and intervened in the market since April, but it was not enough to stop the decline of the yen. Koo Yun Cheol, the South Korean finance minister, told a Tuesday cabinet meeting that the current level of foreign exchange at mid-1,500 won to the U.S. Dollar was "excessive." The KOSPI index's losses, after it closed at a new record high on monday, caused a brief trading halt. This dragged MSCI’s broadest Asia-Pacific share index outside Japan by 1.5%. Japan's Nikkei index retreated by 1.2% after an eight day winning streak. Data on Tuesday revealed that the manufacturing sector in Japan had experienced robust growth during June. A gauge of new order surged to its fastest rate in over four years. Brent crude fell 0.4% to $77.56 per barrel on Monday, after the United States lifted sanctions against Iran for 60-days starting from Monday following the first talks in a new 'peace agreement. S&P 500 futures are down 0.5% after tech giants weighed heavily on Wall Street stocks on Monday. Early European trades saw pan-regional futures?down by 0.6%. German DAX Futures were down 0.7% and FTSE Futures were down 0.8%. The following are key developments that may influence the markets on Tuesday. Earnings of the company FedEx, Cerebras Systems, Carnival Corp Economic Events France: S&P Manufacturing Flash PMIs for the month of June S&P flash PMIs in June for the Euro zone. UK: CBI Trends and Flash PMIs. Debt auctions: Germany: 2-year Government Debt (Reporting and Editing by Jamie Freed; Gregor Stuart Hunter)
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US launches investigation into fatal Tesla crash in Texas home
The U.S. government said Monday that it is investigating the crash of a Tesla Model 3 on June 19, which was using a driver assistance system at the time. It struck a house in Katy, Texas and killed a woman aged 76. Since 2016, the National Highway Traffic Safety Administration (NHTSA) has opened more than 50 "special crash investigations" into Tesla incidents in which advanced driver assist systems like Autopilot are suspected of being used. About two dozen fatalities have been reported. Separately in March, NHTSA escalated its investigation into 3.2 Million Tesla vehicles equipped with "Full Self Driving" due to concerns that the system could fail to warn or detect drivers in low visibility. Conflicting Accounts Emerge Ashok Elluswamy who is Tesla's head of self-driving 'efforts', told X on Monday that the driver had overridden the automated system in the vehicle before the fatal accident 'in Texas. In this case, a driver manually overrode the self-driving system by pressing the pedal all the way up to 100% in a residential area. "They reached a speed 73 mph in the crash and continued to press the accelerator even after the accident," Elluswamy stated. In a press release, the Harris County Sheriff's Office stated that the driver had reported he had the automated driving assist system "enabled" at the time of crash. The statement also said that the Tesla "entered the brick residence at a very high speed and struck M. Avila, who was in the residence." Elon Musk, Tesla's Chief Executive Officer, questioned the media coverage. He said on X that a Business?Insider article about the investigation was "incomprehensible." Elon Musk said that Tesla's Full Self-Driving System "drives slowly along neighborhood streets." NHTSA opens approximately 100 special crash investigations per year, focusing on emerging technologies and potential issues in auto safety. These investigations have in the past?helped to develop safety standards on airbags. NHTSA began an investigation in October into 2,88 million Teslas equipped with FSD after receiving more than 50 reports of safety violations and a series crashes. Tesla 2023: Recall 2 million vehicles, nearly all its electric cars on U.S. highways to ensure that drivers are paying attention when using Autopilot.
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Grid operator: Britain will have enough power this winter
The National 'Energy - System Operator (NESO), in a report on Tuesday, said that Britain would have 'enough electricity this winter despite disruptions caused by the Iran _war to energy flows. The United States and Iran are currently in peace talks to resolve a conflict which has caused energy shipments via the Strait of Hormuz to be disrupted. This area accounts for approximately a fifth if the global liquefied gas supply. "While we continue to monitor the global energy'markets, businesses and households can rest assured that electricity supply remains secure," said Deborah Petterson, NESO director of whole system resilience. Qatar is the only gas supplier to Britain, and it ships its gas across the Strait. Britain will likely be a net electricity importer over the winter, and domestic electricity prices are expected to remain higher than in Europe. NESO anticipates a margin of de-rated capacity,?which is a measurement of the excess capacity expected over?peak demand. This will be 5.5 Gigawatts, in line with recent winters, and equal to 8.8% forecast peak demand for an average cold snap. (Reporting and editing by David Goodman.)
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Qatar sovereign wealth Fund invests $75 million in Doncasters before NYSE debut
Qatar's sovereign fund will bet $75 million on aerospace precision parts maker Doncasters Group before its U.S. listing. According to a SEC filing made on Monday, the Qatar Investement Authority (QIA), has agreed to purchase the shares at IPO prices. The filing stated that QIA would receive 2.5 million ordinary shares if the IPO price range was at the middle of it. The Derby-based United Kingdom company wants to raise up to $746.9 million through its IPO. It will offer 23.3 million shares at prices between $28 and $32 each. The aerospace parts manufacturer would have a $4.51 billion market value if the IPO price was at the highest end of the range. This is based on its outstanding shares as listed in the?filing. Doncasters competes with Howmet, Precision Castparts and makes a variety of complex parts, including blades and vane, for aerospace engines and industrial gas generators. The QIA placement is in addition to the?private placement in which certain existing shareholders, directors included, agreed to purchase $66 million in?Doncasters stock. Jefferies and Morgan Stanley are joint bookrunners. Doncasters is set to list on the NYSE with the symbol "DPC". (Reporting by Pragyan Kalita in Bengaluru; Editing by Vijay Kishore)
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US agencies investigate near-miss between American and Delta jets at Boston Airport
The National Transportation Safety Board announced?on Monday that it will be opening an investigation in a near miss?incident which occurred on Saturday between two passenger planes?at the Boston Logan airport. Federal Aviation Administration is investigating the incident. The crew of a Delta Air Lines Airbus A319 performed a go around on Saturday as an American Airlines Boeing 737 was leaving from an intersecting airport. Flightradar24, an online flight tracking service, said the planes were 325-350 feet apart, based off barometric pressure measurements. The actual distance between aircraft's closest parts was probably a little smaller. Delta stated that the crew of the Dallas-bound flight followed established procedures in coordination with the air traffic controller and did a go around on the approach. They landed safely. American declined to comment immediately. Senator Jerry Moran (a Republican who chairs a aviation subcommittee) was due to hold an hearing on Tuesday on close calls in the aviation industry. He cited this incident. Moran stated that it is vital that we tackle the challenges that face our aviation system, and improve the procedures and technology that keeps the flying public safe. Airlines for America CEO Chris Sununu is scheduled to testify at the Senate Commerce Aviation Subcommittee Hearing on Tuesday. He will say that the system is "safe" but must be improved. Sununu wrote in his written testimony that "when any layer shows signs of stress, localized or systemic it requires a deliberate and appropriate response." "We must strengthen the system, using every possible insight to prevent incidents rather than just reacting to them." Congress is examining competing aviation safety reform measures following a collision between an American Airlines regional plane and a U.S. Army Black Hawk helo in January 2025 that killed 67 near Reagan Washington National Airport. (Reporting and editing by Nia William and David Gregorio; reporting by David Shepardson)
More vessels transit Hormuz, Qatar-linked LNG tankers return, data show
Ship-tracking data shows that two stranded supertankers crossed the Strait of Hormuz Tuesday. Seven empty Qatari-linked liquefied gas tankers entered the Strait in recent weeks, a sign that Gulf gas shipping may be returning.
Data showed that Iranian-linked tanks continued to pass through 'the 'vital waterway. Traffic increased on Monday, as U.S.Iran talks advanced. The flow of traffic had decreased ahead of the U.S.-Iran talks, amid Trump's threats to restart the conflict and Tehran's announcement that it had once again closed the Strait.
A day after the first round of negotiations, which started on Sunday, both parties agreed on a roadmap to a permanent agreement within 60 days. The U.S. announced that sanctions would be waived until August 21, easing fears about global oil and gas supplies, and pushing prices down.
Analysts say that more crude oil cargoes, which have been stranded since the beginning of the Gulf War, are expected to be exported now. A growing number of tankers sanctioned by the U.S., has also begun to ply the Strait in order to export Iranian oil.
The Very Large Crude Carrier Dubai Energy chartered by Taiwanese State Energy Firm?CPC, and carrying 2,000,000 barrels of Abu Dhabi crude and Saudi crude has left the strait over night and is sailing to Kaohsiung in Taiwan, LSEG data and Kpler showed. CPC declined to comment on a request for comment.
Data showed that another VLCC, Universal Glory chartered by South Korean refiner GS Caltex and carrying 2 million barrels Saudi crude, left the strait Tuesday.
GS Caltex has declined to comment.
The data revealed that two?Suezmax approved tankers -- Sobar & Sarak -- were heading to the Strait of Gibraltar on Tuesday. They can each carry one million barrels.
QATAR-LINKED LNG TANKERS
Seven ballast QatarEnergy-controlled tankers moved west into the Gulf to reload between June 11 and June 22, ship-tracking data from Vortexa and Kpler show, the first such voyages since the U.S. and Israel launched airstrikes on Iran on February 28.
Vortexa's report shows that the automatic tracking systems of the first three tankers making inbound transits - Al Hamla Al Areesh Al Khuwair - were turned off.
According to Kpler, the three tankers last appeared outside the Strait of Gibraltar in mid-June. They reappeared between June 19 and 23 on ship-tracking information.
The four others -- Wadi Al Sail (Mekaines), Al Sadd (Al Sadd) and Mesaimeer (Mekaines) -- entered the Strait of Hormuz on Monday by the Iranian route.
QatarEnergy didn't?respond immediately to a comment request outside of their normal business hours.
Vivek Dhar, an analyst at Commonwealth Bank of Australia, said that this is also the biggest number of LNG ships to transit the strait since World War II began.
Other empty LNG tankers will also be heading to Qatar. "The ship-tracking data confirms that QatarEnergy is on track to meet its LNG ramp-up deadline," he said.
The explosion occurred at a gas-processing facility in the Ras Laffan Industrial Complex on Monday. However, the Energy Minister said that Qatar's LNG plants?were unaffected.
In terms of QatarEnergy-controlled tankers exiting the strait, Al Ghashamiya was last seen inside on June 9, carrying a cargo from Ras Laffan which was loaded on March 1, Kpler data showed. It then reappeared on the other side of the strait, on June 22, carrying a cargo from Ras Laffan that was loaded in March 1.
Ayush Agarwal, S&P Global Energy analyst, said that it is still too early to see if there will be a widespread movement of ballast Qatari or ADNOC vessels towards the Gulf, reflecting a cautious, phased restart.
S&P Global Energy stated that the key risk is whether a sustained increase in Gulf LNG exports can be supported by a safe passage, insurer confidence and implementation of an agreement signed between Iran and the U.S. (Reporting from Emily Chow and Florence Tan, in Singapore; Additional reporting by Heejin KIM in Seoul; Editing done by Himani Sarkkar)
(source: Reuters)