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Officials say that Ukrainian strikes have cut off power in areas occupied by Russia
Officials from Russia in Ukraine said that drone and shelling attacks by the Ukrainians caused power outages in large areas of Russian-controlled territory, including in Zaporizhzhia region and Kherson region in south Ukraine. Officials have said that the Zaporizhzhia Nuclear Power Station - Europe's biggest nuclear facility - has not been affected by the Russian invasion in February 2022. The Russian officials who run the plant have said that radiation levels are normal in the facility. It is currently shut down and does not produce any power. The governors of the two regions, who are Russian-installed, said that the Ukrainian attacks had prompted the authorities to take emergency measures and to switch power sites in order to maintain power reserves. Yevgeny Beletsky, the newly-installed Russian Governor of Zaporizhzhia, wrote on Telegram that all areas under Russian control were now without power. Belitsky wrote that high-voltage electrical equipment in the Zaporizhzhia Region's northwestern region was damaged as a result the shelling of the Ukrainian Armed Forces. "There is no power in the entire region." Energy Ministry of Zaporizhzhia Region has been ordered to develop reserves of power. "Health care sites were transferred to the reserve power sources." Vladimir Saldo, the Governor of Kherson, a region in Russia's westward extension, said that debris from drones falling had damaged two substations. This knocked out electricity for more than 100,000 people living in 150 towns and villages. He said emergency crews were working to restore power as quickly as possible. In the long winter months, Ukrainian villages and towns suffered repeated power cuts due to Russian strikes on generating capacities. Both sides have repeatedly accused each other of attacking the Zaporizhzhia Nuclear Plant and putting the plant at risk of a catastrophic nuclear accident. In response to a Ukrainian complaint, the U.N. nuclear watchdog International Atomic Energy Agency said that they saw no signs that Russia was planning to restart the Zaporizhzhia station and connect it to Russian grid. The IAEA monitors are permanently stationed at Zaporizhzhia, as well as other Ukrainian nuclear power plants. (Reporting and editing by Franklin Paul, Ron Popeski, Stephen Coates and Lidia Kelly from Melbourne)
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CANADA-CRUDE-Discount on Western Canada Select heavy crude widens; wildfires affect production
On Monday, the discount between West Texas Intermediate (WTI), North America's benchmark futures contract, and Western Canada Select (WCS), widened but remained within historically tight ranges as wildfires affected Canadian crude oil production. WCS for Hardisty, Alberta delivery in July settled at $8.80 per barrel below the U.S. benchmark WTI according to brokerage CalRock. It had settled at $8.50 below the U.S. standard on Friday. According to calculations, wildfires in Canada have disrupted the production of more than 344,000 oil sands barrels as of Monday. This is about 7% of Canada’s oil output. Two trading sources reported that Cenovus Energy, a Canadian oil company CVE.TO, declared force majeure in its supply of Christina Lake dil-bit heavy oil due to wildfires burning in Alberta. Rory Johnston is an energy analyst and the founder of Commodity Context, a newsletter that provides market information. He said Canadian heavy crude was trading at "crazy tight discounts" in recent months. The opening of the Trans Mountain Pipeline expansion one year earlier, which increased the country's capacity to export oil, is partly responsible for this. * Oil prices rose nearly 3% globally on Monday, despite the fact that OPEC+ continued to increase production, despite President Donald Trump's latest tariff threats weighing on the U.S. Dollar. The bulk of trading in the Canadian crude oil market takes place from the 1st of every month to the day before pipeline nominations due.
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US LNG exports fall in May compared to April's record
The preliminary LSEG ship tracking data shows that U.S. liquefied gas exports dropped in May as a result of plant outages and repairs at the largest export facility. U.S. LNG production is a major factor in global LNG price. According to LSEG, the U.S. exports 8.9 million metric tonnes of LNG in May, down from a new record of 9.3 MT set in April. The LSEG data revealed that all U.S. plants had short periods in May when compared with April. Cheniere Energy confirmed its Sabine Pass facility, which is the largest in the country, at 30 MTPA. Since May 31, gas flows into Sabine are at a low of 3.1 bcfd, a record low for 23 months. This compares to an average of 4.3 Bcfd for the previous seven days. Freeport LNG reported several other outages. Europe was the preferred market for U.S. exports of LNG as traders sought to profit from higher prices for superchilled gases in Europe when compared with Asia. The European benchmark Title Transfer Facility in the Netherlands increased its gas prices to $11.68 per mmBtu in May from $11.48 a month earlier and $10.12 on average in 2024. LSEG data revealed that of the 8.9 MT LNG exported by the U.S. in April, 6.05 MT, or 68%, went to Europe. This is the same percentage as it was in April. LSEG data show that exports to Asia remained low at 1.88 MT, or 21%, compared with 2.05 MT, or 22%, of total exports. China's demand has been muted by a combination of pipeline imports, renewable energy and a weak industrial sector. China, which is the largest LNG consumer in the world, continues to buy U.S. gas to avoid tariffs. Prices for the Asian benchmark Japan Korea Marker, or JKM, fell to $11.83 per million Btu (mmBtu) in May. This is down from $12.23 per mmBtu last month but higher than an average of $10.10 in May 2024. Exports to Latin America fell as well, with.66MT sold in May against.68MT in April. Egypt purchased 3 cargoes totaling.22MT while Bahrain purchased one cargo at.07MT. LSEG data shows that one cargo left Cheniere's Sabine Pass facility on May 23 but was still in the Caribbean Sea as of Monday with no destination. As Golden Pass LNG LLC produces its first LNG and Venture Global Plaquemines completes its construction, the United States will increase its LNG production in 2019. (Reporting and editing by Nick Zieminski, Stephen Coates, and Curtis Williams from Houston)
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Panama removes more than 650 vessels from its registry amid sanctions and stricter rules
Panama's Maritime Authority said that it has removed more than 650 ships from its registry since 2019, as part of a campaign to comply with U.S. sanction and enforce stricter regulations for the vessels it flags. The authority said that since last year, 214 ships have been removed from Panama's register, which is among the largest in the world with over 8,500 vessels. Once removed from the registry, ships cannot sail under Panamanian flag. Panama has responded to criticism from non-governmental group United Against Nuclear Iran. UANI, which said last week that Panama had taken insufficient action against sanction violations and asked for it to "immediately stop facilitating Iran's illegal oil trade" as well as withdraw its flag on all tankers transporting Iranian oil. UANI reports that nearly one fifth of the vessels suspected to be transporting Iranian oil are flying under Panamanian flag. "This is more than a registry failure in Panama. "It's a direct danger to global sanctions compliance, regional security and U.S. safety," the report said. Panama signed in 2019 an agreement with Liberia, Marshall Islands and other flag countries to exchange information on vessels whose registrations have been canceled or rejected because of potential sanctions violations. The Panamanian government has also begun to take action against ships who deliberately disable their transponders in order to avoid being tracked. The authority announced in May that it would strengthen controls on ship-to-ship activities by Panamanian flagged vessels. This was due to an increase of the use "dark fleet" tankers as a way to avoid sanctions or environmental requirements. The U.S. increased pressure on countries that have large vessel registrations to help enforce sanctions. U.S. president Donald Trump has criticised the expansion of dark fleets of oil tankers that are moving sanctioned crude and threatened to takeover the Panama Canal. In a press release, the Central American country said it was working with the United States to improve its registry. (Reporting and writing by Elida Moreno; editing by Leslie Adler, Rod Nickel and Marianna Pararaga)
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US Judge blocks Trump from banning union bargaining for TSA Officers
A federal judge said on Monday that the administration of Donald Trump probably broke the law when it stripped 50,000 Transportation Security Officers of their ability to unionize or bargain over their working condition. U.S. District Court Judge Marsha Pechman, in Seattle, Washington, has blocked the U.S. Department of Homeland Security (DHS) from canceling the union contract for TSA officers, pending the result of a lawsuit filed by four unions opposing the move. The lawsuit alleges that the Trump administration terminated collective bargaining with TSA officers who work at checkpoints in U.S. airports as retaliation for the unions suing the administration over policies. Trump, the Republican president, has taken steps to limit union bargaining in large parts of the federal workforce. In May, a U.S. appellate court allowed these efforts to continue. It halted a lower court decision that had prevented seven agencies from canceling their union contracts as it considered an appeal. TSA officers, because of the nature of their work, are not subject to the civil service system. They also do not enjoy the same rights as other federal employees in terms of collective bargaining and unionization. TSA officers were given the option to negotiate on certain topics during the administration of former president Barack Obama. In 2021, the administration of former President Joe Biden expanded the scope for bargaining. Last year, the agency reached a labor agreement with the American Federation of Government Employees (AFGE), the largest union of federal workers. As part of the agreement, workers received improved shift-trade options, an increased allowance for uniforms, and additional paid time off. Homeland Security Secretary Kristi Nuem, on February 27, revoked the directives which had allowed TSA agents to unionize. She also directed that the agency cancel the bargaining contract within 90 days. Noem stated that the union contract provides benefits, such as paid leaves, which are abused only by a few officers. It also shields the poor performers from termination and burdens the entire agency. Noem said that she also asked DHS lawyers to adopt policies prohibiting any future administrations from granting TSA employees the right to negotiate without Congress' action. The AFGE, along with the other unions who sued Noem, said that her memo failed to give a rationale for her decision and that TSA lacked the authority to overturn the bargaining contract. Other plaintiffs include a Washington AFGE affiliate, which represents TSA officers, and unions representing flight attendants and workers at airports. These unions claim that their members depend on TSA officers for keeping them safe at work. Pechman was appointed by Democratic President Bill Clinton. Reporting by Daniel Wiessner, Albany, New York. Editing by Alexia Garamfalvi, Rod Nickel
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FAA: Newark Airport flights will likely be increased next week.
Federal Aviation Administration plans to increase the number of flights next week at Newark Liberty International Airport after a new runway was opened on Monday, nearly two weeks before schedule. At a press event at the airport, Acting FAA Administrator Chris Rocheleau stated that the runway was already in use for departing flight but that it would take until the 9th of June to certify the runway for arrivals. This will allow the rate to be increased from 28 arriving flights per hour to 34. Sean Duffy, Transportation Secretary, said that the airport would be able to handle 34 arrivals per hour by June 10. The FAA reduced the number of flights last month to 28 arrivals per hour and 28 departures an hour, until runway construction is complete. The maximum rate of arrivals and departures will then increase to 34 per minute until October 25, after which it will be increased again. Newark in New Jersey is the hub of United Airlines, which has cut back on flights. United Airlines operates 70% of all flights at Newark Airport. At a joint press conference with the FAA, the U.S. Department of Transportation and United CEO Scott Kirby, he said: "If you're buying a ticket now you can be confident." He said that Newark bookings were down, meaning that ticket prices and availability are better now than in the past despite flight reductions. Newark Liberty is one of the major airports that serve New York City. It's located about 14.5 miles (9 km) away from Manhattan. Newark's operations have significantly improved since the federal government implemented flight cuts after a series major disruptions. Normal circumstances would allow Newark to handle 77 flights an hour. Last year, the FAA relocated control over Newark's skies to Philadelphia in order to deal with staffing issues and congestion in New York City. The facility that oversees Newark's airspace in Philadelphia has had to deal with numerous technological issues. In recent weeks, Newark has experienced delays of up to five hours. There are also dozens of flights that have been canceled or delayed every day. The FAA has a staffing target of 3,500 air traffic controllers, but the actual number of controllers nationwide is less than that. Duffy stated that the area in charge of Newark had a target staffing level for certified controllers of 38, but only 22 are currently on duty, and six of them are on medical or stress leave. He added that the FAA is currently training 22 more controllers for Newark's air traffic.
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Oil ministry: Fire contained at Iraqi gas pipeline
Iraq's oil minister said that the fire at a pipeline transporting gas from northern Kirkuk oilfields in Iraq to power stations has been contained. The ministry reported that no casualties had been recorded. It cited the North Oil Co., an entity run by the government, which manages northern oil and natural gas fields. Two sources in the energy sector said that an explosion and fire had earlier damaged the pipeline. A North Gas Co official said that an initial investigation showed that corrosion-induced cracks in the section of pipeline that caused the explosion, around 55 km west of Kirkuk, were the cause of the blast. The official stated that "Gas leakage caused a blast and fire which stopped gas flow through an internal pipeline transporting the gas to Baiji's power stations." North Gas officials said that teams of technicians rushed to the affected area to repair the damaged section and gas flow was stopped to facilitate repairs. He said that repairing the damaged part might take two days. Reporting by Ahmed Rasheed Editing and Lisa Shumaker by Tomaszjanowski
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US LNG production drops in May from April record
The preliminary LSEG ship tracking data shows that the U.S. liquefied gas output dropped in May as a result of plant outages and repairs at the largest export facility. U.S. LNG production is a major factor in global LNG price. According to LSEG, the U.S. exports 8.9 million metric tonnes of LNG in May, down from a new record of 9.3 MT set in April. The LSEG data revealed that all U.S. plants had short periods in May when compared with April. Cheniere Energy confirmed its Sabine Pass facility, which is the largest in the country, at 30 MTPA. Since May 31, gas flows into Sabine are at a low of 3.1 bcfd, a record low for 23 months. This compares to an average of 4.3 Bcfd for the previous seven days. Freeport LNG reported several other outages. Europe was the preferred market for U.S. exports of LNG as traders sought to profit from higher prices for superchilled gases in Europe when compared with Asia. The European benchmark Title Transfer Facility in the Netherlands increased its gas prices to $11.68 per million British Thermal Units (mmBtu), up from $11.48 per mmBtu in April, and to an average of $10.12 by May 2024. LSEG data revealed that of the 8.9 MT LNG exported by the U.S. in April, 6.05 MT, or 68%, went to Europe. This is the same percentage as it was in April. LSEG data show that exports to Asia remained low at 1.88 MT, or 21%, compared with 2.05 MT, or 22%, of total exports. China's demand has been muted by a combination of pipeline imports, renewable energy and a weak industrial sector. China, which is the largest LNG consumer in the world, continues to buy U.S. gas to avoid paying tariffs. Prices for the Asian benchmark Japan Korea Marker, or JKM, fell to $11.83 per million Btu (mmBtu) in May. This is down from $12.23 per mmBtu last month but higher than an average of $10.10 in May 2024. Exports to Latin America fell as well, with.66MT sold in May as compared to.68MT in April. Egypt purchased 3 cargoes totaling.22MT while Bahrain purchased one cargo at.07MT. One cargo left Cheniere's Sabine Pass facility on May 23 but was still in the Caribbean Sea as of Monday, according to LSEG ship tracker data. By 2030, the United States will be the largest LNG exporter in the world. Six projects are expected to receive financial approval by 2025. This will add 90 million metric tonnes per annum of LNG to its output. Curtis Williams, Houston Reporting Nick Zieminski
Shipping firm executive says port strike on US East Coast will cause supply chain problems from the start.
The French container carrier CMA CGM's North America CEO warned on Wednesday that a strike by dockworkers on Oct. 1, at ports along the U.S. East Coast, Gulf of Mexico and the Caribbean Sea would disrupt the flow of cargo into the country. The International Longshoremen's Association represents 45,000 dockworkers at 36 ports, including New York/New Jersey and Savannah, Georgia. The union has promised to stop working if a new contract is not in place by the expiration of its current six-year labor agreement on September 30th at midnight.
George Goldman said, "The moment you shut the door, everything starts to back up," on a webcast by the Port of Los Angeles.
He said that "one day is not enough" to close a port.
CMA CGM belongs to the United States Maritime Alliance, an employer group that negotiates with the ILA. Ports that could be affected are responsible for about half of U.S. imported goods. Retailers, manufacturers, and other ocean carriers are worried about cargo being stuck in idled facilities. They have moved some cargo to West Coast ports to avoid this. Sea-Intelligence analysts, a Copenhagen-based firm that provides shipping advice, estimate that it will take between four and six days to clear a strike-related backlog.
Sea-Intelligence stated that a two-week strike may mean ports will not be able to return to normal operation until 2025.
Experts in transportation said that goods from Europe, India, and other countries that depend on direct routes over the Atlantic Ocean will be affected most.
Imports into the busiest U.S. West Coast port are also surging. This is because CMA CGM and Maersk, as well as other large container carriers have also been stocking up on Halloween costumes and holiday apparel in anticipation of any possible labor action. Manufacturers have also been stocking up on solar panel and other goods that could be subject to tariff increases.
In August, the Port of Long Beach recorded its busiest month for 113 years, with a volume jump of nearly 34% compared to the previous year, and boosted by a 40% increase in imports.
Los Angeles, the neighboring port, reported a volume increase of 16% in August. This was largely due to an 18% rise in imports.
Gene Seroka is the executive director of the Port of Los Angeles. He said that it was difficult to quantify the increase in cargo from other ports. Los Angeles, however, can still handle around 1.2 million 20 foot equivalent units per monthly, as opposed to the 960 597 TEUs processed in August.
Seroka replied, "We can handle the cargo."
(source: Reuters)