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Sources say that Canada's South Bow has cut its crude trading team and is now focusing on the contracted pipeline volumes.
Three people said this week that Calgary-based South Bow, a pipeline company, has reduced the size of the crude trading team in order to increase the volume of oil sold under contract via its pipeline systems while reducing the amount of crude traded. South Bow was spun off from Canadian pipeline company TC Energy as part of a strategy to reduce TC's debt in October 2024. South Bow fired two traders on 4 April, the people reported. TC Energy had already laid off a member of its team in June 2012, before the spin-off. The crude trading team has been reduced to two people from five in the latest layoffs. South Bow's spokesperson declined to comment for this article on employee issues. Sources said that the company was looking for more stable revenue through the contracted volumes it ships through its pipeline system, as the Trans Mountain pipeline's start-up in Canada has left it with less trading opportunities. South Bow's fourth quarter earnings report stated that it expects EBITDA from its marketing unit (which includes its crude trading teams) to be negative in 2025. It will fall $30 million, from $12 million, in 2024. The company expects its normalized EBITDA total to be around $1.01 billion in 2024, as opposed to $1.09 billion today. This is partly due to the fact that Canada's much-anticipated Trans Mountain pipeline expansion began operations. Trans Mountain Pipeline transports crude oil from Alberta to the Pacific Coast of Canada for export. Bevin Wirzba, CEO of South Bow, explained in March that the pipeline would take arbitrage opportunities away from South Bow. The company's quarterly earnings report stated that the uncertainty of tariffs and increased pipeline capacity in Canada would also impact marketing earnings. South Bow expects to secure 90% of its EBITDA by 2025 through commitments. Wirzba stated in an investor call that "with a contracted strategy these dollars of EBITDA would be more valuable to shareholders due to their consistency." South Bow operates a 750,000 barrels per day Marketlink pipeline, which transports crude oil from Cushing, Oklahoma to the U.S. Gulf Coast through the Gulf Coast Extension of the Keystone Pipeline. Sources said that the company would reallocate spot capacity available on Marketlink, which it had previously used to increase contracted shipments for third-party clients. South Bow's stock last traded at about $32.30, according to LSEG. The stock had recovered some of its losses from Tuesday, when it fell to a low of $31.10, after South Bow closed the Keystone pipeline following an oil spill. (Reporting and editing by Liz Hampton, Himani Sarkar, and Georgina McCartney from Houston)
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Discounts on heavy crude oil from Western Canada are narrowed
Western Canada Select (WCS), a heavy crude from Canada, was trading at a discount to West Texas Intermediate (WTI), the benchmark North American futures contract. The discount narrowed Friday, despite the fact that the Keystone pipeline between Canada and the U.S.A. was still shut for the fourth day in a row. WCS for delivery in May at Hardisty, Alberta settled at $9.60 per barrel below WTI according to brokerage CalRock. It had settled at $9.85 below the U.S. benchmark Thursday. Keystone, the oil pipeline that connects Canada and the U.S., was closed on Tuesday following an oil spillage in North Dakota. South Bow, the owner and operator for the 4,327 km (2,689 miles) pipeline, said on Friday that they were still investigating the cause and did not have a timetable for restart. * Although the WCS discount increased in the immediate wake of the Keystone shut down, it remains historically low due to U.S. sanctioned countries producing heavy crude, such as Venezuela and lower heavy crude exports by Mexico. Canadian heavy crude differentials tend to shrink when oil prices in the world are low, partly because lower prices lead to less competition among Canadian producers for pipeline space. This week, global oil prices fluctuated dramatically as traders reassessed the geopolitical risk of the crude market due to President Donald Trump's new tax regime. (Reporting from Amanda Stephenson, Calgary; Editing and proofreading by Sandra Maler).
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China's Cosco considers legal action against Peru after it sets price controls on megaport
Cosco Shipping, a Chinese port operator, could launch legal proceedings in Peru if the local regulator determines that the prices at Cosco’s Chancay Megaport must be controlled. The firm stated this in a Friday statement. Cosco insisted that Chancay was a competitive market, despite INDECOPI's ruling to the contrary. Chancay has also stated that the Peruvian port authority previously acknowledged its competitiveness. The Peruvian transport agency announced on Thursday that it will regulate the rates at the port, after the market watchdog found the terminal to be operating without enough competition. Chancay, located north of Lima and offering non-stop trips to Asia and back, is now home to the largest ships on South America's Pacific Coast. During the Asia-Pacific Economic Cooperation summit (APEC), held in Lima, in November, Peruvian president Dina Boluarte, and Chinese president Xi Jinping inaugurated the port's initial phase. (Reporting and editing by Natalia Siniawski; Reporting by Marco Aquino)
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Prices of oil are set to fall for the second consecutive week due to US-China trade conflict
The oil prices fell for the second consecutive week on Friday, amid investor concerns about a recession caused by the growing trade war between China and the United States. Brent crude futures fell 25 cents or 0.39% on the day to $63.08 per barrel at 1312 GMT, while U.S. West Texas Intermediate Crude dropped 30 cents or 0.50% to $59.77. Brent and WTI will both decline by 3.8% and 3.5% respectively this week, after losing about 11% each last week. Brent fell below $60 per barrel this week, its lowest level since February 2021. Analyst Giovanni Staunovo of UBS said that "China's retaliation, coupled with increased U.S. Tariffs, has weighed on the market sentiment, and driven oil prices down." China announced Friday that, starting Saturday, it will increase its tariffs on U.S. products from 84% to 125%, an increase from the previous announcement of 84%. This follows a Thursday tariff hike by U.S. president Donald Trump, who raised them from 145% to 150%. Trump paused the heavy tariffs this week against dozens of trading partners. But a dispute between two of the largest economies in world is likely to disrupt trade routes and reduce global trade, which will impact global economic growth. Ole Hansen is the head of commodity strategy for Saxo Bank. He said that even though the tariffs on China were delayed by 90-days, the damage to the market had already been done. Prices are now struggling to recover stability. BMI analysts expect prices to remain under pressure, as investors evaluate ongoing trade negotiations, and the rising tensions between Washington, D.C., and Beijing. Energy Information Administration of the United States lowered their global economic growth predictions on Thursday and warned that tariffs may have a significant impact on oil prices. It lowered its U.S. oil demand and global oil consumption forecasts for both this year and next. A poll shows that China's economic growth in 2025 is likely to be lower than last year, due to the U.S.'s tariffs, which are increasing pressure on China, the world's largest oil importer. Director of the United Nations trade agency, said that the impact of tariffs on developing countries could be "catastrophic". ANZ Bank analysts predict oil consumption will fall by 1% if the global economy growth falls below 3%. Senior commodity strategist Daniel Hynes said. Varga, of PVM, said that oil prices fell on Thursday, as traders focused primarily on tariffs and largely avoided the new U.S. sanctions against Iran. On Thursday, the U.S. placed sanctions on a network of Iranian oil traders that included a crude oil storage facility in China. Iran's foreign ministry has said that the U.S.-Iran nuclear talks scheduled for Saturday in Oman will get "a real chance" from Iran. Reporting by Robert Harvey, Sudarshan Varadhan, Arunima Kumra, Kirby Donovan, David Goodman. Editing by David Goodman.
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The US Energy Secretary says that we can stop Iran from exporting oil
Chris Wright, the U.S. Energy secretary, said that President Donald Trump could increase pressure on Iran by stopping its oil exports. This would be part of his plan to put pressure on Tehran regarding its nuclear program. Trump's return to the White House in January, after his first term, when he rescinded the United States' 2015 power agreement with Tehran and imposed restrictions on its oil sales, has once again brought a more aggressive approach towards the Middle Eastern country over its nuclear activities. Wright said during a trip to Abu Dhabi that he believed Gulf allies were very concerned about an Iran with nuclear weapons and that they shared the U.S. conviction that such a result would be in no one's interest. According to data from the industry, Iranian oil exports have recovered under Joe Biden who was elected president after Trump's second term. They are still showing no signs of decline in 2025. China, which is opposed to unilateral sanctions, purchases the majority of Iran's oil shipments. "That is actually quite doable." Wright replied, "President Trump did it during his first term." Wright was asked about how the United States could enforce its maximum-pressure policy against Tehran. We can track the ships that leave Iran. We know their destination. We can stop Iran from exporting oil. I won't discuss the exact method of how this will happen. "But can we completely turn the screws against Iran," he replied when asked if they would stop Iranian ships on the sea. On Friday The United States gave "a real chance" to the high-level nuclear talks on Saturday with China after Trump Threatened bombing if discussions failed. Wright predicted that the markets' concerns about the economic growth would be proved wrong. Yousef SABA in Abu Dhabi, Alex Lawler writing in London and David Evans and Mark POrter editing.
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Treasury: Italy to sell assets worth 0.8% GDP by 2027
The Treasury's multi-year budget plan revealed that Italy will sell assets worth close to 1% or more of its gross domestic product by 2027 in order to stabilize its state finances. Giancarlo Giorgetti, Economy Minister of Italy, said that the government will continue to pursue a plan announced in January to sell assets valued at around 20 billion euros (about 23 billion dollars). However he noted that due to current market volatility caused by U.S. Tariff Policy it was necessary to proceed with caution. The Treasury's Document of Public Finance published late Thursday included new debt projections that factored in the sale of assets worth 0.1% of the GDP in this year, 0,2% in 2026, and 0.5% of 2027. According to the latest government projections, Italy's debt is expected to reach 136.6% this year, up from 135.3% by 2024. In 2026, the debt is projected to reach 137.6% before falling to 137.4% by 2027. Since her appointment in late 2022 as Prime Minister, Giorgia Melons has sold stakes in the bailed out bank Monte dei Paschi di Siena (MtP) and energy group Eni to raise more than 4 billion Euros for state coffers. Italy's long-promised plan to divest assets from the state includes selling up to 14% stake in financial conglomerate Poste Italiane. This transaction could be worth nearly 3 billion euro. In the document, it is also mentioned that property sales are expected to reach more than 800 millions euros per year between 2025-2027.
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Bangladesh will buy 50,000 T of rice at the March 27th tender, traders claim
According to traders, the state grain buyer of Bangladesh is believed to have purchased 50,000 metric tonnes of rice at an international tender that closed on March 27. The purchase price was $416.44 per metric ton CIF, according to traders. This was the lowest bid in the international tender. It was thought that the seller is trading house Agrocorp. Bangladesh has a tradition of taking a while to consider the price offered in rice and grain tenders. The contract called for the shipment of non-basmati rice parboiled from all over the world, 40 days after awarding. The reports reflect the assessments of traders, and further estimates on prices and volume are possible later. After a bad year of weather, Bangladesh continues to buy a lot of rice on international markets. Separately, a separate Bangladeshi tender for 50,000 tons rice was closed on Thursday. Michael Hogan reports.
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In March, South Korea purchased approximately 34,632 t of rice from the U.S.
Agro-Fisheries and Food Trade Corporation, a state-owned company in South Korea, purchased approximately 34 632 metric tons (mostly from the United States) of rice at an international auction that closed on March 11th. Traditionally, it takes a while for the corporation to confirm its purchases. The tender sought up to 79.976 tons of rice, but traders reported that only a small amount from Thailand and U.S. Rice was purchased. No consignments from China or Vietnam were bought. They said that the U.S. origin purchases comprised 22,222 tonnes bought at $836.24 per ton, including cost and freight for arrival on or around September 30. Another 5,555 tonnes bought at $796.48 per ton for arrivals between September 1 and Oct. 31. And 5,555 tons purchased at $785.82 per ton for arrivals between August 15 to October 15. The only rice purchased in the United States was medium grain non-glutinous brown rice. They said the rest of the purchase consisted of 1,300 tons non-glutinous long grain milled rice from Thailand, purchased at $579.91 per ton c&f and due for arrival between 1-30 June. This week, the corporation issued a new international tender to purchase approximately 80,000 tons rice that will close on April 15th. The reports reflect the assessments of traders, and it is still possible to estimate prices and volume later. (Reporting and editing by David Evans, Michael Hogan)
Philippines wealth fund purchases into China-backed national grid operator
The Philippines' sovereign wealth fund Maharlika Financial investment Corp is purchasing a 20% stake in the operator of the nation's power grid, the federal government said on Monday, a first significant financial investment that tightens its grip on crucial infrastructure. National Grid Corp of the Philippines holds a 25year concession to run the country's sole power transmission operator because winning the contract in 2007. Amid intensifying tensions between Manila and Beijing over conflicts in the South China Sea, NGCP is currently the subject of a congressional probe into its compliance with franchise obligations and its ownership, with China's State Grid Corp. holding a 40% stake.
The first financial investment represents a vital opportunity for. the government to regain higher impact over the country's. important power infrastructure to guarantee that every Filipino has. access to reputable and affordable power, Philippine President. Ferdinand Marcos Jr.'s office stated in a statement without giving. financial information.
The offer allows Maharlika to sign up for favored shares. used by Synergy Grid & & Development Philippines (SGP), which. would provide the wealth fund two seats each at NGCP and SGP.
SGP efficiently manages 60% of NGCP through a typical. corporate structure of the latter's two biggest Filipino. investors, magnates Henry Sy Jr. and Roberto Coyiuto Jr.
Federal government financial investment in transmission would make additional. capital offered for NGCP to deploy in the pursuit of. completing transmission tasks on time, the Department of. Energy (DOE) said in a separate declaration.
Maharlika can pave the way for better coordination between. the DOE and the NGCP to assist ... speed up the affiliation of. our power grid across the archipelago, the DOE included.
The DOE said 98% of NGCP tasks between 2016 and 2024 were. delayed, some by more than nine years.
(source: Reuters)