Latest News
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Ashfall from Japan's Sakurajima volcanic eruption cancels flights
On Sunday, a volcano on Japan's western island of Kyushu erupted several times. A plume of smoke ad ash reached as high as 2.73 miles (4.4 km) in the air. This caused dozens of flights to be cancelled. Japanese Meteorological Agency said that the volcano, called Sakurajima, located near Kagoshima on the southern tip Kyushu, erupted around 1 a.m. (1600 GMT Saturday), according to the agency. Two more eruptions occurred at around 2:30 and 8:50 in the morning. Kyodo News Agency reported that this is the first time in nearly 13 months that an eruption has reached a height of 4 km or more. The local media reported that 30 flights into and out of Kagoshima Airport have been cancelled due to ashfall or other reasons. The JMA reported that volcanic ash had drifted to the northeast after the latest eruption. It said it expects ash to fall on Kagoshima and nearby Miyazaki Prefecture Sunday. Sakurajima, one of Japan's active volcanoes, is prone to eruptions. In 2019, it released ash up to a height of 5.5 km (3.44 miles). (Reporting and editing by Kate Mayberry; Satoshi Sugyama)
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Petroperu, the Peruvian oil company, changes its board and appoints a new chairman
Petroperu, the state-owned oil company in Peru, announced on Saturday that it had appointed four new members to its board, including a chairman, following the resignation of four previous members. Key Context Four members of the board resigned immediately on November 15: Fidel Augusto Moreno Rodriguez as Chairman, David Quispe Figueroa as Vice-Chairman, Jose Luis Carlos Balta Chirinos, and Cesar Rod Villanueva. Luis Alberto Canales Galvez was named as the new chairman of the company. * Three additional directors have been appointed: Elba Rojas Alvarez De Mares, Jesus Valentin Ramirez Gutierrez, and Oscar Gerio Zapata Alcazar. * The changes have been made in accordance with Law 32103, and Emergency Decree No. 004-2024 which allow the immediate recomposition of Petroperu's board and waive the standard selection procedure. * At a future shareholder meeting, shareholders will decide if new board members are "independent directors." (Reporting and writing by Marco Aquino, Editing by Christian Schmollinger; Daina Beth Sooland; Daina Beth Solomon)
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Iran confirms the seizure of a tanker carrying petrochemical cargo on the Gulf
Iran's state media confirmed that the Revolutionary Guards seized on Saturday a tanker in Gulf water carrying a cargo petrochemicals bound to Singapore due to alleged violations. An official from the United States and sources in maritime security said that Iranian forces had intercepted and diverted the oil tanker into Iranian territorial water on Friday. This was the first time that a tanker had been seized by Tehran since Israeli-U.S. airstrikes on Iran in June. The Iranian state television broadcast a statement by the Islamic Revolutionary Guard Corps, stating that 'the tanker violated for carrying unauthorized goods. The statement did not give any further details about the alleged violations. According to maritime sources, the Talara tanker was sailing near the coast of the United Arab Emirates and carrying a cargo containing high-sulfur gasoil from Sharjah, in the UAE, through the Indian Ocean on its way to Singapore. Columbia Shipmanagement, the vessel's manager, said that it lost contact with Talara on Friday morning at around 20 nautical mile off the coast Khor Fakkan in the UAE. The company said it was working with all relevant parties to restore contact, including maritime agencies and the vessel owner. The ship's owner is Cyprus-based Pasha Finance. The U.S. Military said in a statement that it was aware of this incident and actively monitoring the situation. In recent years, the IRGC of Iran has repeatedly seized commercial ships in Gulf waters, citing maritime infractions such as alleged smuggling or technical infractions, or legal disputes. The U.S. official who spoke on condition of anonymity said that the incident was surprising, since Iran hadn't carried out such operations in the recent months.
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Italy's Snam cancels German gas contract amid Berlin's concerns about China
Snam, the Italian gas grid operator, announced on Friday that it had scrapped its plans to buy a minority stake of Germany's biggest independent gas transmission company. The German Economy Ministry has resisted. Berlin's concern over the 920 million-euro ($1.1billion) transaction is due to the fact that China's State Grid is an indirect shareholder in Snam. This was reported earlier today, citing sources who are familiar with the issue. The Italian group has signed an agreement in April to purchase a 24.99% share in Open Grid Europe Infinity Investments in Abu Dhabi has acquired the owner of's (OGE), Vier Gas Holding, with the aim to enter Germany's gas market, which is the largest in Europe. Snam, in a press release, said that the German authorities had terminated the agreement after an extensive review of foreign direct investments. They also stated that Snam's proposed solutions to obtain regulatory clearance were deemed inadequate. The company said that this development would not affect its financial forecast for 2025. Since the agreement, Germany's Economy Ministry has been reviewing the contract. The German government's resistance is a reflection of the European governments' tougher stance on Chinese investment in Europe because of security concerns. Agostino Scrnajenchi, CEO of Snam, had previously indicated that the company would not pursue an acquisition "come Hell or High Water" during the lengthy approval process. Germany has blocked China's State Grid from buying a stake in 50Hertz, a power grid operator in 2018.
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CANADA-CRUDE-Discount on Western Canada Select narrows slightly
On Thursday, the discount between West Texas Intermediate and Western Canada Select futures (the North American benchmark) decreased slightly. WCS for Hardisty, Alberta delivery in December settled at $11.65 per barrel, which is $1.65 below the U.S. benchmark WTI. This was down from $11.70 a barrel on Thursday. Michael Berger, Enverus analyst, stated that Canadian crude storage levels are below the average for the past five years. Trans Mountain, the pipeline that exports Canadian crude via the Pacific Coast to U.S. markets and Asian ones, has not been apportioned in November. This is another factor contributing to the narrow differential. The industry uses the term apportionment to describe when demand for space on pipelines exceeds its capacity. Berger says it is more difficult to predict the WCS discount over the long-term because of the possibility that policy and regulatory changes could occur in Canada, which would encourage oil producers to increase their production. * Oil prices in the global market rose by more than 2% on Friday, as Russia's Novorossiisk port halted exports of oil following an attack by a Ukrainian drone that targeted a depot at Russia's energy hub. This sparked supply concerns. (Reporting from Amanda Stephenson, Calgary; Editing and proofreading by Tasim Zaid)
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Cheniere expects US LNG plants to use 40 bcf per day of natural gas in the coming years
Anatol Feyegin, Chief Commercial Officer at Cheniere Energy, said that U.S. LNG plants may be able to take up as much as 40 billion cubic feet of natural gases per day over the next few years. According to LSEG data, U.S. LNG plants are using a record amount of natural gas (18 bcfd) to produce LNG. Feygin, speaking at a Federal Reserve Bank of Kansas City seminar, said that the increased demand for gas liquefaction may lead to higher natural gas prices. Prices have risen by 62% in the last year and could become even more costly towards the end of this decade. "You saw it in 22/23 when COVID came out. LNG returned to full utilization, and then increased. Nymex saw an increase in the single digits. Feygin stated that the supply would respond very quickly, indicating that drillers could increase production to meet increased demand. The executive stated that there is concern about a glut of LNG as more capacity is added. However, he said that Asian countries like Bangladesh and Pakistan may be drawn in by the lower prices to increase demand. Feygin stated that the world will need 30 million metric tonnes of LNG each year to meet the global demand growth. The majority of this new capacity will come from the U.S. He said that rising construction costs were behind some of the final investment decisions made in U.S. LNG. Feygin explained that "more than two-thirds" of the FID in this year were completed because fixed-priced EPC contract expires soon and the rush was on to keep the cost of construction of the LNG plant low. Feygin stated that the U.S. gas sector could produce up to 300 mtpa. However, he acknowledged that this rapid growth could be a challenge for some producers who are not prepared to deal with periods of low prices. He warned that only 17% of new capacity from plants which reached FID in this year had been sold on long-term contracts. Many portfolio players were unprepared. Curtis Williams, Houston (Reporting) and Leslie Adler Nathan Crooks Edmund Klmaann edited the article.
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Republican state AGs express concerns over Union Pacific's deal with Norfolk Southern
Nine Republican attorneys general raised concerns on Friday about Union Pacific's plans to purchase smaller rival Norfolk Southern for $85 billion, creating the first U.S. Coast-to-Coast freight rail operator. In a letter sent to the Surface Transportation Board by Tennessee Attorney-General Jonathan Skrmetti, and Kansas Attorney-General Kris Kobach that was seen by, the officials expressed concern about the deal, which they said would result in "undue market consolidation" and "stifle competition, resulting in higher prices, less reliability and less innovation, at the expense America's producers and consumers." If approved, the tie-up could help reshape U.S. freight railroad industry, streamline operations, and eliminate interchange delays at key hubs such as Chicago. Attorneys general from Ohio, Florida and other states, including North Dakota, South Dakota Mississippi, Montana, and Iowa, said that the merger could lead to high shipping costs, which could "kneecap American manufacturers' ability compete with foreign companies." The group also stated that "the downstream impact of the merger poses a significant risk, not only for our industrial base, but also for our agricultural producers." This merger, in the end, could compromise our national safety. Union Pacific responded on Friday by saying that it is looking forward to submitting their application to the STB to "detail how this combination will be good for America, meet the threshold to advance public interest and increase competition." The railroad said it has won the support of key unions as well as others in order to "ensure that rail is not forgotten." Norfolk Southern has not yet commented. The railroads announced earlier on Friday that over 99% of both companies' shareholders voted for the merger. The STB could take between 12 and 18 months to review the deal. Railroads have been struggling with the volatile nature of freight volumes, increasing labor and fuel prices, and increased pressure from shippers regarding service reliability. After meeting with Union Pacific CEO Jim Vena in September to discuss the largest U.S. railroad merger for decades, Donald Trump stated that the merger "sounds great to me". Union Pacific is the dominant freight rail carrier in Western United States. Norfolk Southern, on the other hand, is the leading carrier in Eastern United States. Together, the two railroads form one of four major U.S. class I railroads along with BNSF Railway, CSX Corp and BNSF Railway.
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White House claims that Alibaba is assisting Chinese military to target US, reports FT
Financial Times reported on Friday that Washington accused the online marketplace Alibaba of providing technology support to Chinese military operations targeting targets in the United States. The memo was cited by the White House. The FT reported that the national security memo contains declassified top-secret intelligence about how the Chinese group provides the People's Liberation Army (PLA) with capabilities the White House believes could threaten U.S. Security. The report didn't specify what capabilities or operations are involved or if the U.S. is trying to respond. Alibaba shares in the U.S. fell 4.2% following the news. Alibaba issued a statement saying that "the assertions and innuendos contained in the article were completely false." "We doubt the motivation behind this anonymous leak which The FT admits they can't verify. This malicious PR campaign clearly came from an rogue voice that was looking to undermine President Trump’s recent trade agreement with China. The Chinese Embassy in Washington has not responded to an immediate request for comment. (Reporting and editing by Susan Heavey, Matthew Lewis, and Jasper Ward from Washington)
Citgo auction pits Icahn-backed oil refiner, financial institution group
An oil refiner backed by activist investor Carl Icahn and a group of creditors holding claims against Venezuela are completing in the last mile of a. U.S. court auction for Citgo Petroleum, according to 3. individuals knowledgeable about the matter.
A total of 18 lenders holding judgments for financial obligation defaults. and expropriations in Venezuela totaling $21.3 billion are. pursuing earnings from the auction of shares in Citgo's parent,. organized by a federal court in Delaware. But offers are not. expected to cover that quantity entirely.
A financial investment group that consists of miner Gold Reserve. and a system of corporation Koch Industries have actually used about $9. billion in combined money and claims versus Venezuela, two of. the people, who were not licensed to speak openly about the. matter, said.
Icahn-controlled CVR Energy independently sent an. all-cash quote of about $8 billion, individuals with understanding of. the auction stated.
Both current offers are above the greatest $7.3 billion bid. submitted in a first round previously this year, however far away from. Citgo's market evaluation of in between $11 billion and $13 billion.
The court officer supervising the auction, Robert Pincus,. last week asked for extra time to examine the complex provides. and reach an arrangement on terms. Creditors can use claims. against Venezuela in lieu of money in some cases.
The procedure has actually permitted business including Gold Reserve,. which has a more than $1 billion claim, and Koch Industries,. with a $457 million claim, to sign up with forces with investors recommended. by investment bank Centerview Partners, who have actually contributed. money to the quote, the 2 sources added. Lenders can use. claims as comparable to money.
Gold Reserve and court officer Robert Pincus declined to. remark. Centerview did not have an immediate remark. Koch did. not respond to ask for remark. CVR decreased to comment, however. the company's president in late July told financiers it was. exploring tactical deals in refining.
Gold Reserve in June said it had gotten $36 million. through a private positioning of shares and lined up a partner, FJ. Management, to support its bid.
At least 5 groups of investors sent binding bids in. the 2nd round, and 3 protected financing dedications from. banks and advisors consisting of JPMorgan, Morgan Stanley. and Rothschild & & Co, people close to the. matter informed Reuters in July.
SOME WILL END UP EMPTY-HANDED
According to the court's terms, bidders have an. opportunity to add further celebrations to their deals to improve. their value and can likewise complete their bids after sent,. making the process dynamic.
However due to the fact that of the mounting claims, some financial institutions will end. up empty-handed no matter which of the offers the court. accepts. Shareholders with protected claims against Venezuela likewise. have actually opposed they were largely locked out of the auction.
Venezuela, which is the middle of a severe political crisis. following a disputed presidential election, has called the. auction a theft of its treasured foreign property. Citgo and its. supervisory boards likewise have battled to postpone the auction and win. U.S. assistance for keeping Venezuelan ownership.
The seventh-largest U.S. refiner by volume has been. controlled by supervisory boards appointed by Venezuela's. opposition because 2019, when the United States severed its ties. with Venezuela's state oil company, PDVSA.
The Houston-based business has been extremely successful. Its. first quarter earnings was $410 million, and it earned $2.04. billion for all of 2023.
The U.S. judge managing the case, Leonard Stark, has. opposed any substantial delay to completing the case, initially. presented by miner Crystallex in 2017. Stark found Citgo's. parent, PDV Holding, accountable for Venezuela's debts and bought. its shares took.
In early July, Pincus said the bidding round had been. effective, with a number of competitive bids received, a change. from a first bidding round in January thought about disappointing. by Citgo's lawyers.
In a filing looking for more time to work out and examine the. bids, Pincus did not reveal the identities of any bidders. Citgo. said in court in July it had actually not been briefed about the bids.
When a finalist is identified, the court will schedule a. 21-day duration for participants to challenge the recommendation. By Aug. 22, a winner must be selected, and the court has set. Oct. 15 to authorize a winner subject to approval by the U.S. Treasury Department.
Citgo, the crown gem of Venezuela's foreign assets, has. storage terminals, pipelines and 3 oil refineries that can. process as much as 807,000 barrels each day of crude oil into fuels.
(source: Reuters)