Latest News
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Oil prices drop after a two-week peak on Russia and Ukraine supply concerns
The oil prices fell on Tuesday, after spiking nearly 2% the day before. Traders were closely monitoring the developments in the Russia/Ukraine conflict to see if they could have an impact on fuel supply from that region. Brent crude futures dropped 16 cents or 0.23% to $68.64 a barrel at 0005 GMT. West Texas Intermediate crude futures (WTI) also fell 16 cents or 0.25% to $64.64. WTI Futures rose above the 100-day moving Average on Monday. Both contracts reached their highest levels in more than two weeks. In a recent note, IG analysts stated that the risks of crude oil prices rising further are skewed towards higher gains. This is especially true if the price continues to move above the resistance level between $64 and $65. The rally in oil on Monday was driven primarily by fears of disruptions to supply as Ukraine attacked Russian energy infrastructure and traders expected more U.S. sanction on Russian oil. The attacks caused gasoline shortages and disruptions to oil exports and processing in Moscow. They were a response to Moscow’s offensive on the frontlines and its bombardment of Ukraine’s gas and electricity facilities. Barclays said in a Monday note to its clients that oil prices are still in a narrow range due to geopolitical instability and fundamentals that remain relatively stable. Donald Trump, the U.S. president, has reiterated his threat to impose economic sanctions against Russia if a deal on peace is not reached in the next two week. The American Petroleum Institute will release its latest U.S. inventories data later today. Traders expect a decline in crude oil and gasoline stock but an increase in distillate stocks. (Reporting by Anjana Anil in Bengaluru Editing by Shri Navaratnam)
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AirTrunk, a data centre operator, secures refinancing of $10.4 billion for APAC expansion
Australian data centre operator AirTrunk on Tuesday said it secured an A$16 billion ($10.40 billion) sustainability-linked refinancing for its Asia-Pacific operations. AirTrunk, in a website statement, said that this refinancing includes a S$2,25 billion green loan to build a data center in Singapore. This makes AirTrunk APAC's largest sustainable financier. AirTrunk, a hyperscale data center firm, announced that it had secured the support of 60 banks and financial institutions. This brings its total financing including operations in Japan to more than A$18 billion. The company, which was acquired by a Blackstone-led group for A$24 billion late last year, introduced a sustainability-linked loan (SLL) in 2021 that ties a company's financing to its sustainability goals. AirTrunk CEO Robin Khuda said, "After Blackstone and CPPIB acquired AirTrunk for A$24+ billion in 2024, our debt financing platform has been expanded to allow our rapid growth throughout the region."
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Trump tells South Korea that he wants to meet Kim in North Korea this year.
Donald Trump, the U.S. president, said on Monday that he would like to meet North Korean leader Kim Jong Un in this year. He also stated that he is open to more trade discussions with South Korea despite his new criticisms of their visiting Asian ally. Trump told reporters that he would like to meet Kim Jong Un this year in the Oval Office, as he welcomed South Korea’s new President, Lee Jae Myung to the White House. "I am looking forward to meeting Kim Jong Un at the appropriate time." Trump and Lee met for the first time in tense conditions. Trump complained vaguely about a "Purge" or "Revolution" in South Korea via social media, before later retraction as a possible "misunderstanding" among the allies. The two sides are still arguing over the details of the trade agreement they signed in July, which spared South Korean exports from harsher U.S. duties. They also continue to argue about nuclear energy and military spending. Lee, after meeting Trump, attended a business conference with CEOs from South Korean firms and over 20 U.S. companies, including Carlyle Group Nvidia Boeing GE Aerospace Honeywell General Motors. Korean Air, South Korea's flag-carrier, is expected to place an order for 100 Boeing aircraft, according to sources. KIM IGNORES TRUMP'S CALLS North Korea didn't immediately respond to an inquiry for a comment on Trump’s remarks. Kim has refused to respond to Trump's repeated requests to resume the direct diplomacy that he conducted during his term of office from 2017-2021, which failed to produce a deal to stop North Korea's nuke program. North Korea's rhetoric is escalating, with Kim promising to accelerate his nuclear program while condemning U.S. and South Korea military exercises. Kim oversaw the testing of new air defenses systems at the weekend. Lee, in the Oval Office of the White House, avoided the dramatic confrontations that marked the February visit by Ukrainian president Volodymyr Zelenskiy and the May visit by South African President Cyril Ramaphosa. Lee used a strategy that has been well-worn by Trump's visitors from abroad. He talked golf, and praised the interior design and peacemaking of the Republican President. He had told reporters that he read the 1987 presidential memoir "Trump: the Art of the Deal" to prepare. The liberal South Korean encouraged Trump's engagement with North Korea. Lee, in Korean, said: "I hope that you will bring peace to the Korean Peninsula. It is the only nation divided in the world. I want you to meet Kim Jong Un and build a Trump World in North Korea, so that I can go golfing there. You can be a true world-historic peacemaker." South Korea's economy is heavily dependent on the U.S. Washington provides its security through troops and nuclear deterrence. Trump called Seoul a money machine that benefits from American military protection. DIFFICULT ISSUES Trump has been pressuring Seoul to reach a trade agreement and discuss issues related the bilateral military alliance. Trump said to reporters that after meeting Lee: "I believe we have a trade deal done." "They had some issues with it, and we stuck to our guns." They're going to do the deal they agreed on." He didn't elaborate and the White House didn't immediately respond to an inquiry for comment. Trump told Lee that he would share "intelligence" he received regarding South Korean investigations, which he claimed targeted churches and military bases. The White House didn't respond to an inquiry for further information. The police in Seoul raided Sarang Jeil Church this month. It was led by Jun Kwang-hoon who had been leading protests to support Yoon Suk Yol, Lee's former predecessor. In July, prosecutors who were investigating Yoon's attempted declaration of martial law executed a search warrant at the Korean portion of a joint military base operated by the United States. South Korean officials said that U.S. soldiers and equipment were not searched. The far-right in South Korea, particularly evangelical Christians and Yoon's supporters, view him as a victim to communist persecution. Trump is expected to press Lee to increase defense spending and to maintain the 28,500 U.S. soldiers in South Korea. When asked if he'd reduce these numbers to give the U.S. greater regional flexibility, Trump replied: "I don’t want to say it now," but suggested that Seoul could give the U.S. ownership over the "land we have the fort on," an apparent reference Camp Humphreys - a U.S. Army Garrison in South Korea. Lee said to reporters that it would be hard for Seoul to accept U.S. requests to adopt "flexibility", a reference to the use of U.S. troops for a broader range of operations including China-related threat. Lee is trying to find a balance between cooperating with the U.S. and not antagonizing China - Seoul's main trade partner. As he was on his way to Washington, Lee sent a delegation to Beijing to call for normalized relations. Lee will highlight South Korea's anticipated U.S. investment when he visits the Hanwha Group's shipyard in Philadelphia on Tuesday. Trump will attend the Asia-Pacific Economic Cooperation Summit in South Korea from October 30-November 1. Reporting by David Brunnstrom in Washington, Idrees Al, Steve Holland, Trevor Hunnicutt, and David Shepardson, and Josh Smith in Seoul, Hyun-Joo Jin, Jumin Park, and Jack Kim; Writing by Josh Smith; Editing and editing by Lincoln Feast; Ed Davies, Michael Perry and Rod Nickel
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Sources say that Korean Air is expected to order 100 Boeing aircraft.
Sources say that Korean Air will announce a new order for 100 Boeing aircraft on Monday, coinciding with President Lee Jae Myung's visit to Washington. Sources said that the order will include a mixture of Boeing 787s and 777s. Cho Won Tae, CEO of Korean Air and Stephanie Pope, CEO of Boeing Commercial Airplanes attended an event in Washington with South Korean President Lee Myung-bak. Boeing has declined to comment. South Korea's Industry Ministry said in March that Korean Air would finalize a deal worth $32.7 billion for new Boeing and GE Aerospace engine. Last year, Korean Air announced that it would purchase 20 Boeing 777-9 planes and 20 Boeing 787-10 aircraft. It also said there were options to buy an additional 10 planes. The deal was signed in 2024. Boeing plane orders are expected to be announced by many countries that are negotiating with the Trump Administration. (Reporting and editing by Leslie Adler; David Shepardson)
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Sources say that Canada's Alberta is looking to invest in Japan's refinery to boost oil exports.
Two sources familiar with this matter have confirmed that Alberta, Canada's largest oil producing province, is looking at investing in the refining industry of Japan. This would be an effort to reduce the heavy dependence of the oil exports on the United States, its top trading partner. The sources claim that Alberta's government has begun early talks with several Japanese refiners about a possible joint venture where it would fund the construction of an oil coker unit to allow one or more Japanese firms to process the heavy crude produced by Alberta's oil-sands. The deal would be a first for Alberta. It has never invested in energy infrastructure abroad, but it is eager to increase oil exports after the Trans Mountain pipeline expansion last year, which allowed Canada to ship more oil via the Pacific Coast. A deal with Japan could help boost oil flow on Trans Mountain, Canada's one and only east-west pipeline. It would also make the case for the new export pipeline the Alberta government is pushing for. Sources say that Canada and Japan are still in the very early stages of discussing an investment. Nothing has been finalized. A coker could increase the amount of Canadian heavy crude oil that Japan can process. The heavy, high-sulfur Canadian oil is not compatible with the majority of Japan's current refining plants. As a result, the country imports most of its oil. Increased purchases of Canadian crude oil that can be transported directly across the Pacific Ocean will also reduce Japan's dependency on shipments via the South China Sea. This is a major maritime chokepoint if tensions in the region arise. Canada's main oil-producing region, Alberta, is landlocked and has limited access to ports on the tidewater. The majority of Canadian oil exports, about 4 million barrels a day or 90 percent of total exports, are sent to the U.S. through pipelines running north-south. Alberta government officials have visited Asia on several occasions, notably Japan and South Korea. The goal was to drum up interest in Canadian crude oil. In an email, Brian Jean, Alberta's Energy Minister said that Alberta is looking into opportunities to sell its light and heavy crude oil in Japan. He refused to comment on whether Alberta was in discussions to invest in Japan’s refining industry. A spokesperson for Minister of Natural Resources Tim Hodgson confirmed that the Canadian federal government was aware of Japan's current opportunity to buy additional volumes of Canadian crude oil. The spokesperson stated in an email that "Natural Resources Canada is closely monitoring the developments and is open to partnering up with provinces and industries to support strategic energy project which advance Canada's interests." NEW OPPORTUNITIES The Trans Mountain pipeline was expanded last year, doubling its capacity from 890,000.0 barrels per day to 8.900.000 barrels. This opened up new markets for Canadian oil on the U.S. West Coast as well as in Asia. China is the largest buyer of Canadian crude oil shipped through the Trans Mountain pipeline. The U.S. West Coast follows closely behind. South Korea, which has been increasing its purchases recently, is now in third place, with Japan, India and Singapore also buying cargoes occasionally. According to Kpler's ship tracking data, Japan's Eneos Holdings has purchased a 250,000 barrel cargo in the past year, and a 550,000 barrel cargo so far this season. Trans Mountain's operator is also looking at a number of projects that will increase the system's capability by 200,000-300,000 barrels per day. Alberta's government wants to boost oil production in the province and is lobbying pipeline companies to entice a private company to build a crude oil export conduit along Canada's Northwest coast. Canada will export an average of 4.2 millions bpd in 2024. This is about 80% its total production. (Reporting from Amanda Stephenson and Arathy Sommesekhar, in Calgary; Additional reporting from Jekaterina Globkova in Tokyo. Editing by Matthew Lewis.)
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Buffett dismisses talk of Berkshire Railroad merger and CSX shares fall
Warren Buffett, the billionaire investor, shut down speculation on Monday that his company Berkshire Hathaway was looking to acquire another train company. After Buffett said to CNBC that he wasn't interested in a merger - and shattered investor hopes that Berkshire Rail unit BNSF might acquire CSX - shares of CSX dropped about 5%. Later, a representative from Berkshire confirmed Buffett’s remarks. Investors have been speculating for weeks that CSX Corp. and BNSF may merge. Last month, Union Pacific and Norfolk Southern announced a $85 billion surprise merger proposal. The goal was to create the U.S.'s first coast-tocoast freight rail operator. Becky Quick of CNBC reported that Buffett met with the CEO CSX to discuss greater cooperation. Berkshire reports that Buffett and Greg Abel had a meeting with CSX CEO Josephhinrichs on August 3 in Buffett’s Omaha office, without advisors. The two men told Hinrichs they wouldn't bid on CSX but that they believed they could work together more to gain the same benefits. Last week, CSX announced new coast to coast services. This strengthened their freight connectivity, but also dampened market expectations about a merger. BNSF and CSX didn't immediately respond to comments. Investors are unhappy with CSX's performance, and the news puts pressure on CEO Joe Hinrichs. Ancora Holdings has urged the board, after increasing its stake, to look at merger options with BNSF and Canadian Pacific Kansas City. They also warned that CSX is falling behind by waiting on Berkshire's first move. (Reporting from Sabrina Valle, in New York; Nathan Gomes, in Bengaluru, and editing by Shreya biswas, Alan Barona, and David Gregorio.)
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Helicopter crashes in UK Isle of Wight during a flying lesson, leaving one injured
Police said that a helicopter carrying four people crashed into a field on the Isle of Wight, near a seaside town, during a flying class on Monday. One person was airlifted by helicopter to a major trauma center. British media reported Northumbria Helicopter as the operator. They said that one of their aircraft - a GOCLV model – was involved in the accident during a lesson. Hampshire and Isle of Wight Constabulary had earlier reported that the helicopter came down in a nearby field. Hampshire and Isle of Wight Air Ambulance dispatched a critical care team that included a doctor, specialized paramedic and a nurse. The air ambulance service confirmed that it airlifted a single person to the hospital. (Reporting and editing by Alison Williams, Hugh Lawson, and Sam Tabahriti)
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Nigeria's NNPC claims pipeline theft is almost eliminated
Nigeria's state-owned oil company NNPC Limited announced on Monday that nearly all pipeline theft had been eliminated following coordinated efforts of the country's defense and intelligence agencies. In the past three years, only 30% of the oil that was sent through certain pipelines reached Nigeria's terminals for export. This cost the government billions and led to investment being deferred. Bayo Ojulari, Chief Executive Officer of the NNPC Group in Abuja, said: "Today I am proud to report that our terminal and pipeline receipts have reached close to 100 percent." He claimed that security was improved, especially in the Niger Delta where the majority of the oil infrastructure is situated. Ojulari, the country's intelligence and defence agencies, said that illicit trade was not just a local issue but also involved "sophisticated" international syndicates exploiting weak points in national and regional security structures. The national oil regulator, at a conference on oil last week, predicted that Nigeria could exceed 2.5 million barrels of oil per day in 2019. This is because the improved security will boost Nigeria's oil production and the country wants to speed up approvals for new projects. Nigerian oil production last reached 2.5 million barrels a day in 2005, but militancy within the Niger Delta lowered output to just 1 million bpd in 2016. Nigeria will begin hiring private security companies in 2021 to supplement the national security organizations for managing pipeline security. Reporting by Isaac Anyaogu
A consortium led by Public Storage abandons its $1.4 billion pursuit of Abacus Storage in Australia
Abacus Storage, based in Australia, announced on Tuesday that the consortium led by Nathan Kirsh (a South African billionaire) and Public Storage of the United States had withdrawn their A$2,17 billion ($1.41billion) bid for its firm.
Abacus' independent board committee received notification overnight that the consortium withdrawn its offer. The firm didn't give any explanation for the consortium's decision to withdraw.
The consortium offered Abacus shareholders A$1.47 for each stapled security, and all shares that were not held by Ki Corp or its subsidiaries.
Abacus rejected the offer in May citing concerns about timing, valuation and deal completion. The consortium increased their offer to A$1.65 a share in July for the Australian self storage firm.
Furniture manufacturer Ki Corp controls directly and indirectly 59.39% Abacus storage.
The consortium decided to leave after Abacus allowed them to do due diligence on its finances and internal documents.
This is not the first time PSA, a storage facility operator, has backed out of a billion dollar deal to purchase a self-storage company. PSA backed out of an $11 billion purchase deal in 2023 after failing to win over its shareholders.
Abacus Group shares, which manage Abacus Storage King, fell 7.3% to A$1.2 on their worst day since January 13
(source: Reuters)