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Officials claim that the Russian attack on Kharkiv, Ukraine has cut power to 30,000 people.
Local officials reported that Russian forces had attacked Kharkiv on Monday with guided bombs, knocking out electricity to 30,000 people in three districts. In a Telegram message, Regional Governor Oleh Syniehubov wrote that Russian forces had used guided bombs against the Nemyshlianskyi, Slobidskyi, and Shevchenkivskyi districts to the south and north of the city. Interviewed on local TV, Mayor Ihorterekhov said that the three bombs had damaged a hospital as well as power transmission lines. Nearly 30,000 people were affected by power outages. Four people were injured by glass that was flying, he said. Some patients had to be transferred from one ward to another. "Unfortunately, there were many patients in the hospital. Terekhov reported that four people suffered injuries of varying degrees, and 200 windows had been smashed. "The attacks are usually on energy targets, such as generation transmission and the power network. The goal is to stop the power transmission system from working. As winter nears in the war that has lasted more than three-and-a-half years, Russian forces have focused their attacks on targets related to Ukraine's gas and electricity industry. Last week, a massive attack on Kyiv as well as other cities left over a million homes and businesses in the entire country without electricity. The water supply was also interrupted. The head of Kostiantynivka's military administration confirmed that a Russian drone killed two people on Monday in their car. Kostiantynivka is one of the main targets of Russia's slow march through the region. The Russian Defence Ministry announced on Monday that its forces had taken two new villages during their offensive through eastern Ukraine. One was in Donetsk and the second near Kupiansk, which has been under siege for months. The first corps of the Ukrainian National Guard has said that it has repelled another attempt by Russian forces near Dobropillia, in the Donetsk Region. The Ukrainian president Volodymyr Zelenskiy, along with other officials, have reported military successes around Dobropillia near Pokrovsk. (Reporting and editing by Mark Porter, David Gregorio and Oleksandr Kozoukhar)
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DHT claims its fleet is not linked to the US after China's new port fees move
DHT Holdings, the operator of oil tankers in China, said that their fleet is not subject to China's special port fees aimed at vessels with ties to the United States. China has begun charging fees to U.S. vessels that visit its port, starting October 14. This is a response to the U.S. fees charged by China-linked vessels. China has targeted U.S. flagged, built and operated ships as well as companies where 25% or more of the shares or board positions are held by U.S. investment funds. DHT stated that "each vessel is owned directly by a foreign entity, built in a country outside the United States, doesn't fly the U.S. Flag, and is managed from management companies located in Monaco, Norway Singapore and India." The company also stated that U.S. citizens only make up 20% of its board. DHT also stated that it is not aware of any U.S. shareholders, reporting groups or voting rights that exceed 25% of DHT's shares. The company warned that it could not accurately verify each shareholder's ownership. (Reporting and editing by Shash Kuber in Bengaluru, with Sumit Saha reporting from Bengaluru)
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Safran CEO: Company on "good path" to catch up with engine delays
Safran's chief executive said that the French engine manufacturer is "on the right track" to catch up with Airbus on the engine delivery delays by the end this month. Olivier Andries replied that Airbus had announced a good Q3 of deliveries and that we had a good performance with engine deliveries to Airbus during the quarter. Andries, in a telephone conversation about separate plans to build a new engine plant in Morocco noted that Airbus reported a decrease in the number planes waiting for their engines in September. This naturally strengthens our confidence. "I have always said we wanted to make up for the delays by October's end and I believe we are on the right track," Andries said. Airbus said Last week It had delivered 507 aircraft in the first nine-month period, and 313 more are needed in the fourth quarter in order to meet the full-year goal of 820. The European planemaker stated that the number of gliders or other fully assembled aircraft waiting to be powered up had dropped from the peak announced earlier this summer of 60. However, it did not provide a new estimate. (Reporting and editing by Richard Chang; Tim Hepher)
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Safran CEO: Company on "good path" to catch up with engine delays
Safran's chief executive said that the French engine manufacturer is "on the right track" to catch up with Airbus on the engine delay by the end this month. Olivier Andries, when asked after a Moroccan plant event whether CFM, owned jointly by Safran Aerospace and GE Aerospace would be able to deliver enough engines for Airbus to reach its 2025 targets, said: "Airbus announced that they had a good quarter in Q3, and we had a good performance in engine delivery to Airbus during the quarter." "Airbus has also stated that the number of aircraft without engines is down: this reinforces our confidence. "I have always said we wanted to make up for the delays before the end of October, and I believe we are on the right track," he said.
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Safran opens new Airbus engine assembly plant in Morocco
Officials from the French aerospace group Safran confirmed that they signed agreements with Morocco on January 29th to establish a new assembly line for Airbus Jets, and a maintenance and repair facility near Casablanca. Morocco has been encouraging investment from aerospace suppliers over the past few years in order to replicate its success in automobile manufacturing. This is done by creating hubs that will shorten supply chain and share expertise. Ross McInnes, chair of Safran, said that the company will invest 120 millions euros in the construction of an assembly line which will provide 25% or 350 LEAP-1A engine output annually. McInnes, after the signing ceremony presided by King Mohammed VI, said: "This will Safran's sole assembly line outside France. It will be finished in 2028." Safran and GE Aerospace jointly produce LEAP engines through CFM International. The LEAP-1A is a competitor with Pratt & Whitney for the Airbus A32neo while the LEAP-1B powers the Boeing 737 MAX. China's COMAC uses a third variant of the LEAP-1C for its C919. (Reporting and additional reporting by Tim Hepher, editing by Lisa Shumaker; Reporting by Ahmed El Jechtimi)
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Urals Diffs Stable Despite Low Activity
The differential between Brent and Urals crude oil dated on Monday remained unchanged due to low activity, as the majority of October cargoes were cleared. OPEC's monthly data revealed that Russian oil production increased in September by 148,000 barrels per day compared to August. This is due to the fact that world oil producers continue to increase production. PLATTS WINDOW There were no bids or offerings reported on Platts Monday for Urals, Azeri BTC Blend or CPC blend crude. * The Caspian Pipeline Consortium has increased its oil exports by 9% per day from August, to 6.6 millions metric tons or 1.75million barrels of oil per day. Data from industry sources showed that Russia's seaborne product exports dropped 17.1% from August to 7,58 million metric tonnes in September due to a decrease in fuel production, as several refineries were affected by drone attacks. (Reporting and Editing by Lisa Shumaker).
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UK stocks rise as Trump softens tone on China tariffs; gold miners shine
London's stocks ended higher on Monday led by the miners after U.S. president Donald Trump lowered his rhetoric about trade tensions with China. Worries over this had caused a sharp drop on Friday. After Trump threatened to impose 100% tariffs on Chinese goods, fears of a global trade war were reignited. Trump's tone was more conciliatory over the weekend. He posted that "it'll be fine", and that the U.S. did not intend to "hurt China". Gold broke through $4100 an ounce on Monday, and precious metal miners closed up almost 10%. Fresnillo, and Endeavour rose 9.1% and 11,3% respectively. The industrial metals miners grew by 3.1% in line with the increase in copper prices. Anglo American and Glencore, two mining giants, rose between 2% to 4.1%. This helped boost the blue-chip index. Investor sentiment improved further after Megan Greene of the Bank of England, who voted with the majority of members of the Monetary Policy Committee to keep the central rate at 4% in the last month, stated that interest rates will probably continue to fall. She warned that inflation in Britain could be slowing down. The latest round of mergers & acquisitions has lifted mid-cap shares, while the broader FTSE 250 Index is up 1.2%. Blackstone, a U.S.-based private equity firm, said that it is in the preliminary stages of considering an offer to purchase Big Yellow Group. This boosted the shares of the self storage company by 15.4%. Rival Safestore also rose 9.4% in response to the news. Tritax Big Box gained nearly 3.8% following Blackstone's agreement to purchase a 9% stake of the UK real estate trust. Tritax has agreed to purchase Blackstone's UK logistic assets for $1.39 billion. The overall real estate sector grew by 2.6%. Oxford Instruments, among other stocks, fell 7.6%. The company expects its first-half revenues to fall and said that it is unlikely the shortfall will be recovered. Reporting by Avinash and Sanchayaita in Bengaluru, Editing by Sahal Muhammad and Jan Harvey
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Airbus' supply is improving, and the Spirit deal will be closed in Q4
Airbus' suppliers have shown a marked improvement in their confidence and performance. They are all ready to help the company achieve its target to increase deliveries by 7%, to 820 jets, this year. Florent Massou Dit Labaquere is the executive vice president for operations at the European planemaker. He told reporters that they are also working towards a long-term goal to increase their production of narrow-body aircrafts from 75 per month today to 75 in 2027. Massou spoke as the largest planemaker in the world Prepare to inaugurate Mobile, Alabama will host a second assembly line in the U.S. for jets of the A320neo family later Monday. Airbus plans to expand in China as well in the coming weeks. He said that the 10 additional assembly lines will be enough to meet the production targets despite the shift in demand to the larger A321neo which takes more time to construct. Airbus announced plans in 2021 to double the production of narrow-body aircraft from 40 per month to 75 per month by 2025. The company has maintained the target, but has pushed back the date by two years because of industry-wide changes. Bottlenecks and delays Airbus, according to industry sources, struggled to convince some suppliers to increase investments in plans that might not come to fruition as targets were continually extended. Massou said that suppliers are more optimistic. He said, "I have seen a totally different picture. I've met a lot more suppliers who understand our situation and can attest to the stability in planning we experienced over the past few months." Massou stated that Airbus hopes to have the separation of Spirit AeroSystems from Boeing by the end the year. He told reporters that the deal was progressing and they expected to close it in Q4. (Reporting and editing by Tomasz Janovski and Louise Heavens.)
Low gas prices, LNG need in spotlight at Gastech conference
Top energy executives and ministers will meet in Houston this week for the yearly Gastech conference, with U.S. markets in focus as growing melted gas (LNG) exports help wean Europe off Russian gas and as Asia moves away from coal.
The U.S., when an importer of LNG, has actually gone beyond Qatar as the world's top exporter, with brand-new innovation allowing America's. shale manufacturers to tap huge reserves. Both countries have. significant LNG expansion jobs underway, playing higher. value in international markets from Europe to Asia.
The conference comes to the U.S. for the first time considering that. 2019 as the country has also become the world's greatest natural. gas producer. U.S. gas production grew 4% in 2015 to. 125 billion cubic feet per day (Bcf/d). Exports of the. super-cooled gas leapt 12% to 11.9 Bcf/d.
Gastech expects to host some 50,000 guests from 125. countries, with sessions on everything from gas markets and. decarbonization to Expert system (AI) and energy. security.
Surging supply has actually pressed U.S. gas prices to
multi-decade lows
this year, hampering producers but benefiting consumers and. LNG companies
using record quantities
of gas.
By 2026, U.S. LNG exports should be double their 2024. levels, with annual feed gas requirements averaging 19.7 Bcf/d. in 2 years' time, stated Matthew Palmer, executive director at. S&P Global Product Insights.
Gas prices will be significantly higher in. 2025 as new LNG export jobs boost demand, stated Jim Simpson,. CEO of energy research study company, East Daley Analytics.
In the U.S., brand-new export capability development will support. Europe's dedication to divest away from Russian gas following. its intrusion of Ukraine, while using Asian buyers a greener. option for power generation.
Venture Global, whose CEO, Mike Sabel will talk to. attendees about the function of LNG in Europe's energy supply mix,. is amongst those companies. The business's Plaquemines LNG export. center in Louisiana will have an export capability of as much as 20. million metric tonnes per year, and is expected to start. operations this year.
The U.S. exported some 7.48 million metric lots of
LNG in August
, approximately 43% of which went to Asia, according to LSEG data.
GAS MANUFACTURERS BID THEIR TIME
U.S. shale gas companies are banking on brand-new LNG terminals to. boost their market and rates. Poor returns have actually forced some to. cut production this year.
The next 9 months have more opportunity of being. over-supplied than under-supplied since the LNG projects do. not arrive in force up until late next year, stated the president of. Aegis Hedging, Matt Marshall.
U.S. producers typically need Henry Hub natural gas. prices above $3 per million British thermals units (mmBtu) to. produce cash flow for more drilling, stated S&P Global's Palmer. Gas rates are currently around $2.33 per mmBtu and have only. traded above $3 a few times this year.
Henry Center gas prices are expected to average $2.19 per. mmBtu this year, the U.S. Energy Info Administration. ( EIA) stated today in a regular monthly report, lowering its estimate. by 11 cents from the prior forecast.
The general story here is that a manufacturer of natural. gas needs to not expect this market to turn outrageously bullish. with the turn of the year. It is going to require time and this. market is susceptible to lower costs actually until next summer season,. stated Aegis' Marshall.
Significant U.S. manufacturers, consisting of Chesapeake and EQT. were preparing to reduce production and defer well. conclusions in the 2nd half of 2024 in August, after prices. sank nearly 40% over the two months prior.
As those brand-new LNG projects come online and take in more shale. gas, costs are anticipated to enhance. The U.S. EIA is. forecasting an average Henry Hub cost of $3.14 next year.
Our expectation is that as LNG exports increase, the. market will return to stability, moving Henry Hub into the. $ 3-4/ MMBtu variety that will support a boost in production,. said Marshall.
(source: Reuters)