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At least 37 people have been killed by flash floods in Morocco's Safi Province
Authorities in Morocco said that at least 37 people were killed by flash floods caused by torrential rainfall in the province of Safi on Morocco's Atlantic coast. In a press release, the company said that 14 people are still receiving medical treatment, including two in intensive care. The heavy rains on Sunday caused a flood in the old city of Safi. They also washed away cars, and cut many roads around the city, which is located about 300 km (205miles) south of Rabat, the Moroccan capital. Residents assessed the damage to their homes and cleaned them as schools were suspended on Monday. Local media shared videos of flooded streets, cars and authorities using boats to rescue people in the old city. Safigoud.com, a local news website, posted a video showing a woman being rescued from floodwaters after she became trapped near an old gate in the 'Safi Old Town. Authorities reported that at least 70 homes and businesses were flooded. After seven years of drought, which emptied many of the country's main reservoirs, Morocco is now experiencing heavy rain and snowfall in its Atlas Mountains. (Reporting and editing by Timothy Heritage, Ahmed Eljechtim)
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Philippines protests China's actions in South China Sea that have injured Filipino fishermen
The Philippines announced on Monday that it would protest against the Chinese Coast Guard's "harassment" and "endangerment of Filipino fishermen last week in a South China Sea Shoal. Manila's Coast Guard said that two fishing boats were damaged and three Filipino fishermen injured when Chinese coast -guard -ships cut anchor lines and fired water cannons near Sabina Shoal, on Friday. The Philippines expressed alarm at the actions of China’s coast guard. It said that the use of dangerous manoeuvres, such as water cannons, which cause injuries and damage to property "cannot justify". The Philippines' maritime council issued a statement saying that "the?Philippines" would take the appropriate diplomatic action and express its strong opposition to these actions. It also demanded China stop such aggressive acts. According to information provided by the Foreign Minister, the Presidential Press Officer Claire?Castro informed reporters that the Philippines would be filing a demarche at the Chinese Embassy on Monday. China's Foreign Ministry nor its Embassy in Manila did not respond immediately to an inquiry for comment. China's coast guard announced on Friday that it had ejected multiple Philippine vessels from the area and taken "control" measures. The Philippines called the Chinese statement "deeply disturbing". The council stated that it was "calling on the CCG to act responsibly and adhere to international standards in order to place the preservation and safety of civilians above any actions which sow fear or endanger civilians." The United States, as a signatory to the Treaty of Washington, has condemned China's use water cannons on its ships and the cutting off of anchor lines for Filipino fishermen. In a press release, U.S. State Department deputy principal spokesperson Tommy Pigott stated that "we stand with our Philippine allies in their fight against China's increasingly dangerous and provocative tactics towards its neighbors which undermine the?regional stabilty". The Escoda Shoal is located in the exclusive economic zone of the Philippines, 150 km (95 mi) west from Palawan province. China claims nearly the entire South China Sea. This waterway supports a commerce of more than $3 trillion annually. Beijing's claims extend into Brunei and Indonesia's exclusive economic zones, as well as Malaysia, the Philippines, and Vietnam. China has rejected the 2016 ruling of an international arbitral court that Beijing's broad claims were not based on international law. (Reporting and editing by David Stanway; Mikhail Flores)
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Gulf stocks follow global losses as investors wait for key US data
Investors were waiting for a series of delayed U.S. data that will provide a much-anticipated reading on the?largest? economy in the world. Investors and the Federal Reserve are operating with limited visibility because a 43-day U.S. government shutdown has delayed economic data releases. The Fed cut rates last week by?25 basis point for the third consecutive meeting, but indicated that further reductions were?unlikely? in the near future as they awaited clearer data. U.S. monetary policies shifts?have an impact on Gulf markets where most currencies pegged to the US dollar. Dubai's benchmark stock index fell 0.8% due to losses in all sectors. ?Emaar Properties fell 1% while?Gulf Navigation Holding plummeted 9.7%. Saudi Arabia's benchmark index fell by 0.7%. All sectors were in the negative, but finance, utilities, and materials led the way. Saudi Arabian Mining Co, the largest lender in Saudi Arabia by assets, declined 1.2%, while Saudi National Bank lost 1.1%. Scientific and Medical Equipment House rose however 2.2% on Monday after it announced that it had signed a distribution agreement with China's Guangdong Biolight Meditech Co. The benchmark?Abu Dhabi index fell 0.1% due to a drop of 1.4% in Alpha 'Dhabi Holding, and a decline of 1.2% in Abu Dhabi Ports Co. AD Ports plans to launch a mandatory cash tender offer for the acquisition of a?additional stake in Alexandria Container and Cargo Handling, which would give them majority ownership in one?of Egypt?s largest container terminal operators. Qatar's benchmark index fell 0.6% with all of its constituents falling into the red. Qatar National Bank, which is the largest lender in the region, eased by 1% while Qatar Fuel Co fell 0.8%.
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Kazakhstan wants to accelerate the delivery of moorings to CPC Black Sea Oil Terminal
Yerlan Akenzhenov, Kazakhstan's Minister of Energy, announced on Monday that the?delivery of two new moorings points to Caspian Pipeline Consortium’s Black Sea Terminal has been pushed back to January. CPC exports were curtailed following a drone strike by Ukraine that?damaged a part of their loading infrastructure, one of three single-point-moorings on November 29. CPC had long planned to replace the equipment. The strike forced Kazakhstan to divert oil to other routes including China. CPC exports account for 1% of the global crude oil supply. The pipeline's shareholders are Russian, Kazakh, and U.S. entities. WIND COMPLICATES MAINTENANCE CPC's 1,500 km pipeline (930 miles), which carries crude oil from Kazakhstan to the Yuzhnaya Ozereevka Terminal at the Russian Port of Novorossiysk, accounts for 80% of Kazakh exports. SPM-2 was severely damaged, and only SPM-1 remained operational. SPM-3 is currently undergoing maintenance since the middle November, and Kazakhstan expects it to be operational by the middle?December. Unfavorable weather conditions hampered the work to return SMP-3 into operation, according to the minister. The equipment is about 5 km away from the shore. He told reporters that the "internal?currents" in the bay, and the "strong?wind", are what complicate the work. Last week, the minister said that Kazakhstan would?adjust down its 2026 oil production plan due to maintenance expected at major oilfields as well as major damage caused by a Ukrainian drone strike on a Black Sea terminal. (Reporting and writing by Tamara Vaal, Vladimir Soldatkin, Guy Faulconbridge, Bernadette Baum).
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Russia claims to have destroyed 130 Ukrainian drones over night, and some Moscow airports are disrupted
The Russian Defense?Ministry announced on Monday that its air defense?units had'shot down 130 Ukrainian drones over night, 15 of them headed to Moscow. Sergei Sobyanin is the Mayor of Moscow. He said that on Monday morning, four more Ukrainian drones that were en route to Moscow had been 'downed. Ukrainian forces regularly?send drones toward the Russian capital which often disrupts the work of the capital airports. Rosaviatsia is the Russian aviation watchdog. They said that the Domodedovo airport in Moscow and the Zhukovsky Airport, both located south of the country, were forced to suspend their operations. Yuri Slyusar said that a 'power line was damaged by a drone attack overnight. Andrew Osborn, reporting; Andrew Osborn, editing
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New York Times Business News - December 15,
These are the most popular stories from the business pages of the New York Times. These stories have not been verified and?doesn't vouch for accuracy. A JetBlue pilot reported that he narrowly missed colliding with an?U.S. A military aircraft was flying over the Caribbean after a?Air Force refueling plane passed in front of the commercial plane, without broadcasting its location. According to Syrian and American officials, the Syrian gunman who killed two U.S. Army soldiers and an American civilian interpreter belonged to Syria's security force and was scheduled for dismissal due his extremist views. California Governor Gavin Newsom is planning to announce Monday that California has hired two former leaders Susan Monarez, and Dr. Debra Houry will advise the state about public health issues. Authorities announced on Sunday that the man who was being held as a "person-of-interest" in connection with the Brown University shooting, which left two students dead. Nine others were injured. (Compiled Bengaluru Newsroom)
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ROI-US squeeze on Venezuela oil won't create global crunch: Bousso
Although the United States' tightening of its grip on Venezuelan oil exports may have a limited impact on global markets, it could reduce the country's crude production and President Nicolas Maduro’s main economic lifeline. Last week, the U.S. Coast Guard seized a supertanker in mid-ocean that was carrying Venezuelan crude oil to Cuba. This marked a new step in Washington's war against Caracas. The U.S. Military continues to increase its presence in the Caribbean to the highest level since the Cuban Missile Crisis. The U.S. has announced that it is planning to intercept additional ships carrying Venezuelan oil. Last Thursday, the Washington Post reported that Washington had imposed new sanctions against Maduro, his family, six crude oil tankers, and shipping companies associated with them. The military chokehold over Venezuela is designed to prevent the shipment of Venezuelan crude oil via an expanding "dark Fleet" - unregulated ships that are sanctioned, uninsured and not regulated. They are also heavily used by Russia and Iran. According to an analysis of LSEG's data, there are already at least a dozen crude oil tankers in Venezuela's exclusive maritime economic zone. Many of these are at risk of being seized. CRUDE REALITY Venezuela's oil sector is already feeling the pressure. In September, crude oil exports in the country reached over 1 million barrels a day. This was the highest since February 2019. The reason for this spike is that PDVSA (the state-run oil company) depleted its inventories to prepare for tighter restrictions. Kpler's data shows that Venezuelan crude oil exports will drop to 702,000 barrels per day in December, the lowest level since May. There are indications that Asian buyers will demand deeper discounts on Venezuelan crude in order to compensate for the increasing trading risk. According to the International Energy Agency, tightening of restrictions has also resulted in a decline in Venezuelan crude oil production. It fell by approximately 150,000 bpd from a previous month to 860,000 bpd. This follows several months where production was hovering around 1 million bpd. Exports have declined, so output could continue to decline if exports were restricted as Venezuela's stockpiles fill up. The production of Venezuelan oil could also be severely affected if U.S. import restrictions prevent the import of naphtha, diluents and other products that are essential for extraction and processing. More than two thirds of Venezuelan oil is of a tar-like?grade when it is extracted. The oil is reduced in viscosity by using naphtha. This allows it to be transported through pipelines to terminals and tanks. Venezuela's six refining facilities can produce naphtha, but they have been in disrepair for years. This has led to the upstream oil industry becoming heavily dependent on imports. Kpler reports that the Venezuelan imports for naphtha, chemicals, and other products will drop to 39,000 barrels per day in December. This compares to 54,000 barrels per day in November, and 89,000 in October. However, it is difficult to predict how production will be affected by the naphtha shortage, since Venezuela imported large quantities in recent years, which may have been partially stored. Venezuela's production is at risk if imports of naphtha drop. CARVE-OUT? CARVE-OUT The heavy crude production in Venezuela is not likely to completely stop, despite the increasing tensions. President Donald Trump has granted Chevron, the second largest U.S. producer of oil, a special license to continue operating their joint ventures within Venezuela's Orinoco Belt, which produces around 250,000 barrels per day. Chevron exports approximately 150,000 bpd (billion barrels per day) of Venezuelan crude oil to the U.S. Gulf Coast where refineries built decades ago were designed to process heavy grades imported from Mexico, Canada, and Venezuela. Estimates suggest that Venezuela's oil output could fall by between?300,000.00 and 500,000.00 bpd due to lower exports. The current global oil market is well supplied and faces a glut in the coming year. The production of heavy crude in Canada and the Gulf of Mexico would more than make up for any shortfalls. Installing a U.S. friendly government, which will remove sanctions against Caracas, could result in a rapid recovery of oil production. Venezuela has the largest oil reserves in the world, with a total of 303 billion barrels. The increasing tensions in Venezuela have already had a significant impact on its oil industry. However, these effects will not reverberate around the globe - unless the Maduro government falls, which would trigger a rush by western energy giants to return to the oil-rich country. Subscribe to my Power Up newsletter to receive my weekly column, plus additional energy insights and links trending stories in your mailbox every Monday and Thursday. Subscribe to my Power Up Newsletter here. You like this column? Open Interest (ROI) is your essential source for global commentary on financial markets. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
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Kazakhstan resumes transit through Uzbekistan and increases oil supply to Kyrgyzstan
Kaztransoil, a pipeline company, said that Kazakhstan increased oil deliveries to Kyrgyzstan in December and resumed oil transit through Uzbekistan. Kaztransoil will supply Kyrgyzstan with up to 30,000 tons of oil by the end of 2025. The company has announced that oil shipments to Uzbekistan will be made in December of this year, with a total volume up to 35,000 tons. Kaztransoil stated that all oil transportation routes are carried out via the trunk oil pipe system, to the 'Shagyr loading terminal where the oil is?loaded into railway tank cars. Kazakhstan is seeking 'alternative routes' for oil exports after a drone damaged one of its moorings at the 'Black sea terminal of Caspian Pipeline Consortium. (Reporting and editing by Guy Faulconbridge; Mariya Goreyeva)
The oil tanker rate will remain strong until 2026, as the sanctions that have been imposed on ships for hire are removed
Shipping sources claim that the cost of shipping oil will remain high during the first half 2026, as the global fleet is aging and an increasing number of vessels face Western sanctions. However, rates may be capped in the second half.
In recent weeks the cost of shipping crude oil for very large crude carrier (VLCC) vessels has risen by about $130,000 a daily due to OPEC's and its allies' high demand. Moreover, the number of ships available has decreased due to sanctions imposed on some vessels for transporting oil from Iran and Venezuela.
Jan Rindbo is the chief executive officer of the Danish shipping group Norden.
The international sanctions against Russia and the diverting of shipping from the Red Sea because of attacks by the Iran supported Houthi militia has?disrupted' shipping routes. This forces vessels to make longer journeys to transport crude oil to refineries.
According to Omar Nokta of Jefferies, a U.S. investment banking firm, Omar Nokta estimates that the VLCC fleet will be used 92% next year, which is the highest level since 2019. This compares to 89.5% last year. Fleet utilisation measures how much of a tanker fleet is being used versus sitting idle.
In recent years, major oil companies have been undergoing stringent testing to ensure that older tankers are not used as much after 15 years. This is because their efficiency has declined and they now face greater safety concerns.
Lars Barstad said that nearly 44% of global VLCC fleets are older than 15 and almost 18% of supertankers within this segment have been sanctioned.
Market assessments predict that deliveries of new tankers by shipping companies will increase in the second half of 2026. This should limit rates.
Richard Matthews, head of research at shipbroker Gibson, said: "Scheduled tanker deliveries will be at their peak since 2009.
He said that while the overall vessel supply would improve in 2011 as more ships are delivered by shipyards, it will be more geared towards product (refined) oil tankers.
SHADOW FLOAT DOMINATES
The "shadow fleet", which operates outside Western standards and scrutiny, is a major concern for shipping and oil companies. These vessels have all been sanctioned.
Shadow fleet vessels tend to be old, their ownership opaque and they do not have the top-tier coverage that major oil companies and ports require.
Jan Dieleman is the president of Cargill?Transportation. "I don’t believe anyone who imposed sanctions wanted this result."
According to Lloyd's List Intelligence, the total fleet of tankers that work with oil sanctioned from Russia, Iran, and Venezuela includes 1423 vessels, 921 of which are under U.S. or EU sanctions.
Lloyd's List Intelligence showed that 702 of the 1,423 vessels are crude oil tanks, and 148 of them are not sanctioned.
According to estimates on the market, there are around 9,000 crude and fuel tanks in the non-sanctioned fleet.
Cargill's Dieleman stated that the outlook for tanker prices could quickly change if more vessels, for instance, resumed their voyages through Red Sea. (Reporting and editing by Jonathan Saul, Jeslyn Lerh)
(source: Reuters)