Latest News
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Sources: Russian steel magnate sold shipping firm in Sea of Azov
Four industry sources confirmed that Russian steel billionaire Vladimir Lisin sold a shipping company?operating?in the Sea of Azov, to agricultural logistics group Demetra. They added that the deal had been negotiated before Ukrainian drone strikes on commercial vessels caused shipping restrictions in the region. Volga Shipping transports grain, metals and coal along the Volga, Don and Black Sea rivers. Its cargo volume is more than 15 million metric tonnes per year. On Monday, neither Demetra nor Volga Shipping, nor Lisin's steel company NLMK responded to any requests for comments. Four sources confirmed that Demetra and Lisin-affiliated companies were involved in Volga Shipping. Could not determine the value of?the transaction. The attacks on ships, which threatens to disrupt the exports, have forced Russia, the world's largest wheat exporter, to restrict commercial shipping along the main trade route. Lisin, who controls NLMK - one of Russia's biggest steelmakers - has fallen to sixth position among Russia's wealthiest individuals, down from third place he held in 2024. This is due to the decline of Russia's steel industry. Demetra has emerged as a major player in its agricultural logistics sector. It serves lucrative grain trades with Russia's customers in the Middle East, Africa, and Asia. According to the most recent Russian corporate records, as of the 2nd quarter of 2024 91% of Volga Shipping is owned by Rumelko. This firm is controlled by Lisin. Details of Demetra’s ownership structure are not public. After consolidating its agricultural assets over a five-year period, the state lender VTB sold 45% of its stake in Demetra by 2023. Demetra said in 2023, that a company?whose beneficiary is a state-owned Oman investment fund would become a shareholder. Reporting by Gleb Stlyarov and Olga Popova, Writing by Gleb Brnski, Editing by Mark Trevelyan and Andrew Osborn.
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Yemen's Houthis have said they will impose a naval blockade on Saudi Arabia
In a televised address, the?Houthis of Yemen, who are aligned with Iran's regime in Yemen, declared an immediate naval blockade on Saudi Arabia. The militant group declared "a maritime ban against the criminal Saudi enemy based on 'an eye-for-an-eye' equation, effective immediately after the issuance of the statement." The Houthis claimed that the blockade was a response to Saudi Arabia’s "continued unjust and oppressive siege" on their people for nearly 12 years, which has led them to plunder our resources and impose a comprehensive air, land and sea blockade. Last week, the group launched missiles against 'Saudi Arabia after accusing it of bombing a?airport that was under its control. This broke a four-year truce in the conflict between Saudi Arabia and the Iran-aligned organization. The Houthis have not claimed any strikes against Saudi Arabia after an informal truce was signed in March 2022 following Houthi attacks on Saudi infrastructure. Reporting by Nayera Awadalla; Editing by Nadine AWADALLA, Aidan Lewis
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India has no plans to increase the ethanol content in gasoline above 20%
Suresh Gopi, the junior oil minister, said that India does not plan to increase the ethanol in gasoline above the current 20%. This is despite fears about further increases and criticisms that the blend reduces vehicle efficiency. E20, the 20% ethanol-blended fuel, was the only fuel available at India's 90000 petrol stations at the end last year. This caused a stir among the motorists of the third largest car market in the world. Gopi stated in written answers to Parliament that any decision to increase the ethanol content in gasoline would only be made after "detailed technical and scientific studies" as well as consultations with all stakeholders, including fuel retailers, automakers, and feedstock providers. No Rollback of E20 Gopi stated that there is no plan to return to E10 or pure gasoline and the government wants to move ahead?with "a superior fuel". He said that the government has not received any complaints about a decline in vehicle performance, engine failures, corrosion and fuel pump problems linked to E20. Vehicles designed for E10 only experience a marginal drop of 3% to 5 % in fuel efficiency when they use E20. If ethanol blends had caused systemic damage to fuel systems or engines, there would have been a large number of warranty claims and service campaigns. Consumer complaints are also likely to have been widespread. DIFFERENTIATION OF ETHANOL IN FEEDSTOCKS India produces ethanol using a variety of feedstocks including maize, damaged foodgrains and broken rice. Diversification also involves shifting the production to less water-intensive plants such as?maize. Its share in India's Ethanol?programme rose from?zero in just five years, to 37% by 2025/26. Gopi stated that India's ethanol blend programmes will ensure water sustainability, food safety, and farmers' interest remain "primordial".
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Airlines warn manufacturers not to release the next generation aircraft too quickly
Airline executives warned Boeing and Airbus on Monday not to rush into a 'new genration of commercial jets' without making sure their technology was mature enough. Paul Kent, Chief Commercial Officer at BOC Aviation told the Airline Leaders Summit at the Farnborough Airshow that he was not interested in seeing a new narrowbody by 2030. Kent said: "When you launch an aircraft, but they aren't mature when you start, and then you develop that maturity by introducing the program, you will need to continue to run it for many years to make it economically viable." Michael O'Leary warned Ryanair's CEO Michael O'Leary against "overfocusing on new technologies" during the airline's earnings call for its first quarter. "Until someone gets Star 'Trek travel and you start beaming them around the world...instead of flying." O'Leary stated that he believes we'll be dealing with 737 Maxes or Airbus Neos for 10 to 15 years. British Airways' Chief Executive Sean Doyle stated that they would be interested in?seeing what Airbus develops. Doyle stated, "We would be interested in what they are working on." (Reporting and editing by Kirsty Donovan, Sharon Singleton, and Joanna Plucinska)
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Archer, Anduril unveil autonomous aircraft platform for defense, commercial markets
Archer Aviation, a defense technology company and Anduril unveiled on Monday a codeveloped autonomous aircraft platform. Aerospace startups are increasingly relying on partnerships to lower costs and accelerate commercialisation. The platform, which was developed under the?agreement of 2024, is intended for both 'commercial?and'military applications. Anduril unveiled the defense variant called Thunder on Monday at Farnborough Airshow. This is a Group 5 autonomous assault rotorcraft designed to fly with current and next generation crewed attack aircraft. Adam Goldman, CEO of Archer, said that the company chose to build a specific aircraft instead of retrofitting an existing aircraft. "Andruil did a great job identifying needs, and then building ahead to meet those 'needs' before any programs were announced... Goldman stated that they identified a specific need and built an aircraft to meet it. "When you are looking at a large-scale product for the defense sector, it is important that they be designed and built to cater to that specific customer. Archer, known for its electric air taxis and commercial platform, will unveil their commercial variants this week. Electric vertical takeoff-and-landing aircraft developers are looking to expand their services beyond the urban air taxi market. This sector was once hailed as a trillion dollar industry, but certification delays, infrastructure obstacles, and high capital requirements have weighed on it. Shane Arnott is Anduril Industries senior vice president for programs and engineering. Hybrid-electric propulsion is also being used by more air taxi companies to improve their?mission flexibility and extend the range beyond the short?urban hops. They are hoping to reach a wider market and reduce losses. The Archer-Anduril Platform uses a hybrid-electric powertrain with tilt rotors that can 'variate rotor speeds depending on flight conditions. It is capable of supporting missions such as?military strike, cargo movement, distant logistics, and other operations in austere areas, according to the companies. The partnership is a way for Archer to enter the defense and heavy-duty commercial market, while the future of the air-taxi industry looks cloudy. Multiple test flights have been completed using surrogate full-scale aircraft as a way to validate key systems. Thunder's initial flight is scheduled for 2027. Reporting by Shivansh Tiwary in Farnborough and Cassell Bryn-Low, England. Editing by Sharon Singleton.
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Ryanair CEO: Initial investigation suggests foreign object damages in the smashed window accident
Ryanair CEO Michael O'Leary stated on Monday that an initial investigation into the incident where a passenger was partially sucked out of a broken window in a 'Boeing' 737 suggested "foreign objects damage", and not an issue with age or maintenance conditions. According to video footage and the Federal Aviation Administration, the U.S. National Transportation Safety Board has begun an investigation into the incident that occurred on July 10, when a piece of engine broke away from the aircraft, shattered the window, and happened shortly after takeoff. The plane was headed for Germany when it lost pressure. It made an emergency landing. O'Leary said that the initial indications would suggest that a foreign object caused damage to the engine during takeoff from Thessaloniki. However, he could not confirm this. O'Leary stated that the aircraft is 18 years old, and the engine has been overhauled and fully serviced in the last two year. He said that the draft report would be released in 28 days and then a more detailed report. FAA Administrator Bryan Bedford said last week that the incident, which was similar to two Southwest Airlines Boeing 737 NG flight incidents in 2016 and 2018 prompted a reevaluation of?the response?to those incidents. If Boeing and Ryanair can confirm that the damage was caused by an external object, this could reduce their responsibility for the incident. Conor Humphries, Dublin; Alessandro Parodi, Gdansk, and Matt Scuffham edited the article.
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FAA expects certification of Boeing 737 MAX 7, 10, and 15 soon
Federal Aviation Administration officials said Monday that they expect to certify the Boeing 737 MAX 7 or larger 10 in the near future, following an extensive review of variants of this best-selling aircraft. In an interview conducted on the sidelines at the Farnborough Air Show, Deputy FAA Administrator Chris Rocheleau said that the agency is "closer than ever." "I believe the -7 is literally around the corner and the -10 is right behind it," said Chris Rocheleau, Deputy FAA Administrator at the Farnborough Air Show. He said he also expects that the Boeing 777X will be certified after?the MAX planes. "Whether this year or early next year, we let Boeing do the driving when they bring us the correct information and work it out together." Boeing announced last week that it was in the final stages of obtaining regulatory approval for a fix to its 737 MAX engine anti-ice systems. Cirium, an aviation analytics company, reports that Boeing has built 30 MAX 7s already and nine MAX 10s are waiting for delivery. At least 28% (or more) of the outstanding MAX orders are MAX 10. The certification of the MAX 7 and 10, which are years behind schedule, is still a long way off. Boeing faced a stricter certification process after two fatal MAX 8 crash in 2018 and 2019. The company was also scrutinized for its production and quality system following a mid-air panel blowout of a MAX 9 cabin on an Alaska Airlines MAX 9 that occurred in January 2024. FAA Administrator Bryan Bedford said last week that the FAA and Boeing had improved their work in certifying new aircraft. "A lot of our problems in responding quickly to Boeing weren't due to a lack of resources at the FAA. He said that Boeing's constant shifting of priorities was to blame. Bedford stated that the FAA workflows on Boeing certification has increased from 35% to 40%. Bedford stated that "Boeing is much more aware of how we can meet their certification requirements."
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Data shows that RPT-Gulf crude oil exports increased in July, but shipments slowed down due to renewed hostilities.
Shipping data shows that Gulf countries have boosted crude oil and condensate exports to their highest level since the Iran War began late in February. Although the flow through the Strait of Hormuz is now slowing, as fighting escalates. Kpler data showed that crude and condensate imports from Saudi Arabia and the United Arab Emirates increased by about 16 percent from the average daily exports of June to 12 million barrels of oil per day in the first half July. Vortexa estimated that exports for the period were even higher at 13.06 million bpd. Kpler reported that Saudi Arabia, Iran, and Iraq led the increase in the first six months of July. Vortexa estimated Iraq had the largest increase month-on-month, while?UAE exported declined from record levels in June. Oil prices fell as a result of the increase in Gulf exports. This was after U.S.-Iran reached a mid-June interim agreement to reopen Strait of Hormuz, the most important shipping route in the world for oil and natural gas. Early July, disagreements over the administration of the waterway led to the collapse of an interim agreement. Shipping data shows that the number of daily transits through the strait has dropped to three commodity tankers, the lowest since May. Johannes Rauball, Kpler analyst, said: "We are seeing a slowdown in activity. This means that countries have to reduce their output. This will decrease the amount of crude that is shipped. Even after a rebound in exports, they remained 32% below the pre-war high of?17.6m bpd reached in February. Sources told?on?Thursday that Iran has warned Yemen's Houthis they should be ready to disrupt the traffic through the Red Sea in the event the United States attacks Iranian energy infrastructure. This could pose a significant risk to the global oil supply. Saudi Arabia diverted the majority of its energy exports via Yanbu, its Red Sea port. Kpler data shows that 75% of Saudi Arabia's 5.29 million barrels per day (bpd) crude and condensate have been exported through Yanbu so far in July.
Venezuela prepares larger oil cargoes to export and targets India
Four sources and shipping data indicate that buyers and trading houses of Venezuelan oil chartered the very large crude carriers to export the South American nation?since the Caracas-Washington deal was signed. This move will boost deliveries to India.
The use of larger vessels that can hold up to 2,000,000 barrels each is expected to reduce transportation costs for buyers and traders, relieve a shortage in smaller tankers, and speed up deliveries beginning next month. This could help to drain the millions barrels stored at Venezuela faster.
The Nissos Kea and Nissos Kythnos, as well as the Arzanah, are at least three VLCCs that Vitol and Trafigura have chartered. They will be loading in March at Venezuela's largest oil terminal, Jose. This terminal is operated by PDVSA, a state-owned energy company, and it handles 70% of all crude exports. Sources said the tankers were bound for India.
According to LSEG Ship Tracking, another supertanker Olympic Lion was signaling Venezuela this week as its destination, with an expected arrival date of late March. The charterer wasn't immediately known.
Since January, most of Venezuela's crude oil exports have been transported to U.S. refining facilities in medium-sized tanks, such as Aframaxes and Panamaxes. These tankers can transport between 450,000 and 700,00 barrels of heavy oils each. According to vessel movement data, the oil was also transported on Suezmax vessels that?can transport up to one million barrels.
BIGGER CARGOES - LOWER COSTS
Larger cargoes may reduce the costs of trading houses, who have complained about prices that are around $15 below Brent for Venezuelan Merey heavy oil, agreed on last month, for initial purchases.
According to shipping data, two sources and the U.S. oil giant Chevron, Reliance Industries in India has purchased its first cargo of Venezuelan heavy crude since December 2023. This is the first time that heavy oil has been sold in six years. The Boscan crude shipment will be transported on the Ottoman Sincerity. Reliance has also purchased a 2-million barrel cargo from Vitol, for loading in March, and is looking to purchase directly from PDVSA.
Reliance didn't respond to questions outside of office hours. Vitol 'and Trafigura are trading houses that have been exporting Venezuelan Crude this year, as part of a deal worth $2 billion between the U.S.A. and Venezuela. They have also recently sold Venezuelan Heavy Crude cargoes to Indian Refiners including Indian Oil Corp, Bharat Petrol Corp, and HPCL Mittal Energy.
India was the third largest buyer of Venezuelan oil before Washington imposed sanctions on 2019. As a result of the lifting of a U.S. oil blockade, Venezuela's oil exports increased to 800,000 barrels a day in January. However, this rapid increase, from 500,000 barrels a day in December, has left millions in storage that were originally meant for U.S. or European buyers.
PDVSA and Vitol have not responded to our requests for comment. Trafigura refused to comment.
More Cargo to the U.S. Chevron, Phillips 66, Citgo Petroleum, and other U.S. refiners are preparing to increase Venezuelan oil processing in their?refineries. This is expected to also boost exports.
Two sources confirmed that Chevron, along with some U.S. refining companies, have hired dozens Aframaxes or Panamaxes. These vessels are mostly on time-charter agreements for Venezuela. This means they will only transport Venezuelan oil during the contract period.
Valero Phillips 66, and Citgo have not responded to requests for comment.
Two sources say that the move by trading houses to larger tankers will ease the search for medium-sized vessels departing from the Caribbean. Many companies have been struggling to find them.
Trafigura Vitol, and Chevron had been exporting oil from the OPEC nation under individual U.S. licences. But in late January the U.S. Treasury Department released a general license that allows oil exports.
It is anticipated that the new authorization will gradually expand the number of cargo destinations and buyers. Reporting by Marianna Pararaga, Shariq KHan, Arathy SOMASEKHAR, Georgina McARTNEY and Nicole Jao. Rod Nickel, Julia Symmes Cobb and Julia Symmes Cobb edited the story.
(source: Reuters)