Latest News
-
Urals are stable, but clarity is needed on the impact of new Western sanctions
The differential between dated Brent and Urals crude remained unchanged on Monday as buyers of both grades awaited clarity about the impact of new Western sanctions on Russian oil imports. Last week, the European Union (EU), Britain and the U.S. imposed sanctions on Russia, including those affecting its two largest oil producers, Lukoil, and Rosneft. The U.S. gave companies until November 21, 2011 to end their transactions with Russian oil producers. Four sources familiar with the discussions said that OPEC+ is likely to increase output modestly in December as it continues with its monthly increases aimed at regaining market share. PLATTS WINDOW There were no bids or offers reported for Urals, Azeri BTC Blend or CPC blend crude in the Platts window. Government data released on Monday showed that India's crude imports increased 1.7% from September to 19,93 million metric tonnes, the highest level since June. (Reporting from ;)
-
China's Foreign Minister speaks with Rubio before Trump-Xi Meeting
China hopes that the United States will meet them halfway in order to "prepare high-level interaction" between the countries. Foreign Minister Wang Yi said this during a telephone call with U.S. Sec. of State Marco Rubio on Monday. Wang stated that Xi Jinping, Chinese president, and Donald Trump, U.S. president have had "long-standing relations and exchanges", according to the Ministry. Wang called Xi's relationship with Trump "the most important strategic asset" in China-U.S. relationships. The call was made ahead of a meeting that is expected to take place between Xi Jinping and Donald Trump on Thursday in South Korea, on the sidelines the Asia-Pacific Economic Cooperation CEO Summit. The Chinese transcript of the call on Monday did not confirm that the two will meet. However, the White House had previously stated they would. In a brief statement, the U.S. State Department stated that Rubio spoke with Wang about the "importance" of the U.S. China relationship and their upcoming summit. However, the department did not provide any further details. The two countries' negotiators met in Malaysia over the weekend to work out a framework deal that the presidents can consider. This included issues such as soybeans and TikTok. In recent weeks, there has been an increase in trade friction between two of the largest economies of the world. Beijing expanded its control over rare earths and Washington imposed additional port fees for Chinese ships. This sparked a wave mutual countermeasures. According to a statement from the Chinese Ministry, Wang stated that "China-U.S. economic and trade relations have experienced some twists." He said that during the Kuala Lumpur trade talks, "the two sides clarified and improved their understanding". Wang said that bilateral relations can progress as long as the two sides "commit to resolving conflict through dialogue and give up the practice of applying pressure at will", he added. Trump said on his way to Japan Monday that the U.S.-China trade agreement would be "completed" by then. Chinese state media reported late on Sunday that Chinese H-6K Bombers flew close to Taiwan recently in order to conduct "confrontation exercises." Rubio stated on Sunday that Taiwan shouldn't be worried about the U.S. - China talks, despite experts expressing concern that Trump could offer concessions regarding the island. Beijing claims the island as its own, and under U.S. laws Washington is required by law to provide the island with the means of self defense. Craig Singleton is a China specialist at the Foundation for Defense of Democracies, a Washington-based think tank. He said that any U.S. deal with Beijing will likely only mean a temporary stabilization of relations between the two countries. Singleton stated that both sides were managing their volatility by adjusting just enough cooperation in order to avoid crisis, while the rivalry between them continues. (Reporting and editing by Xiuhao chen, Ryan Woo and Michael Martina; Toby Chopra and Hugh Lawson, Daniel Wallis and Toby Chopra)
-
As the government shutdown enters its 27th day, flight delays have risen to 1,660.
The air travel chaos has intensified with over 1,660 flights nationwide delayed on Monday, and more than 8,600 on Sunday. Air traffic controllers are absent in greater numbers amid the federal government shutdown which is now in its 27th week. The Federal Aviation Administration blamed staffing shortages for delays at Newark Airport, New Jersey and throughout the Southeast. At Los Angeles International Airport, the FAA implemented a ground delay that caused flights to be delayed by 25 minutes on average. FlightAware's flight tracking website reported that Southwest Airlines was responsible for 45% of their flights, or 2,00, on Sunday. American Airlines, however, had nearly 1,200 flights, or one-third, delayed. United Airlines' flights were delayed by 24% (739) and Delta Air Lines' flights by 17% (610). An official with the U.S. Department of Transportation said that 44% of Sunday’s delays were caused by controller absences, a sharp increase from the usual 5%. Around 13,000 air traffic control officers and 50,000 Transportation Security Administration (TSA) officers will work without pay on Tuesday and miss their first full payday. The public's frustration is increasing as a result of the delays and cancellations, and lawmakers are under pressure to solve the budget impasse. (Reporting and editing by Howard Goller; David Shepardson)
-
Trump dismisses a 2028 run for VP as 'too adorable,' leaving the door open to a third term discussion
U.S. president Donald Trump ruled out running as vice president for the 2028 elections but refused to say definitively that he would never seek a third-term, keeping speculation alive about his possible plans to extend his tenure in office. Trump has flirted repeatedly with the idea of serving more than the two-term limit set by the constitution. He jokes about it and teases supporters with "Trump-2028" hats. Some allies took those signals seriously and suggested that they were exploring legal or politically feasible ways to make it happen. Most constitutional scholars have dismissed this possibility. The 22nd Amendment to the U.S. Constitution prohibits anyone from being elected as president of the United States a third. Some supporters suggested that a way to circumvent the ban would be for Trump run as vice-president, while another candidate ran for president and resigned. This would allow Trump to assume the presidency again. Trump told reporters on Monday that he would be allowed to fly from Malaysia to Tokyo in Air Force One. He added, "I would never do that." It's just too cute. It's just too cute. I don't think people would like it. It's just too cute. It would be wrong." Scholars claim that Trump cannot run for vice president as he's not eligible to become president. According to the 12th Amendment of the U.S. Constitution, "No one constitutionally ineligible for the office of president shall be eligible to hold that of vice-president of the United States." I have my best numbers ever Trump stated that he would be happy to serve a third term. I've got my best numbers yet." A reporter asked him if he had ruled out a third term. He replied, "No, I haven't." You'll have tell me. When asked if he was willing to go to court over the legality a second presidential run, Trump replied, "I've never really thought about it." Trump said that Vice President JDVance and Secretary Marco Rubio are "great people" and could run for the presidency in 2028. He said, "I believe if they formed a band it would be unstoppable." "I believe it. "I really do." Rubio, who was standing behind Trump on the plane, laughed and bowed down his head in shame as Trump predicted that he would have a bright future. He also nodded when Trump mentioned Vance. Trump's comments about a possible third term have clouded the future of the Republican Party. Potential successors are already jockeying for position, even though some Trump supporters support the idea that he remain in office. Steve Bannon, a pro-Trump podcaster and former White House chief strategy in Trump's first term, revealed in an interview with The Economist last week that there was a plan in place to circumvent 22nd Amendment, and that he had been involved in its development. Bannon stated that "Trump will be president in the year '28 and people should just accept this," Bannon. We'll reveal the plan at the right time. "But there is a strategy." He said that Trump is an "instrument" of the divine will, echoing words Trump has used on occasion. Trevor Hunnicutt Reporting, Satoshi Sugiyama, Jarrett Renshaw Writing, William Maclean and Colleen Jenkins Editing, Peter Graff.
-
Delta Air Lines CEO: Government shutdown has a'small impact' on the airline.
Delta Air Lines' CEO stated on Monday that the U.S. Government shutdown has a "small impact" and costs it less than one million dollars a day. The shortage of airport security personnel is a greater concern. Delta CEO Ed Bastian said that the TSA (Transportation Security Administration), and the staffing of those checkpoints, is the greater concern. In the United States, there is also a shortage in air traffic controllers. The government shutdown will force 13,000 air traffic control officers and 50,000 Transportation Security Administration agents to work without pay. The first full pay for controllers is not due until Tuesday. Air traffic control in the U.S. is already understaffed. Bastian explained that it can be difficult to distinguish between the shutdown and understaffing. Delta and the U.S. Department of Transportation are locked in a battle over the nearly nine-year old joint venture between Aeromexico. The U.S. Department of Transportation ordered that the joint venture must be ended on January 1 as part of a series of actions targeting Mexican aviation. Bastian stated that "we believe that dissolving our joint venture is not the best strategy, especially because (Antitrust Immunity)." He added that there was no time frame for a solution to the issue. He said, "We have been talking (with the Administration) for quite some time." The joint venture allows both carriers to coordinate schedules, pricing and capacities for U.S. - Mexico flights.
-
Iraq talks OPEC quota with oil minister, exports are 3.6 mln bpd
Hayan Abdel Ghani, the Iraqi oil minister, said that Iraq was in negotiations with OPEC over its quota within the available capacity of 5.5 millions barrels per day. In April, the country, OPEC’s largest overproducer submitted plans to further reduce oil production to compensate for pumping beyond agreed quotas. Abdel-Ghani stated that Iraq was committed to its OPEC quota despite having a larger production capacity. Total oil exports are currently at 3.6 million bpd. Abdel-Ghani said that the fire which broke out in Zubair's southern oilfield on Sunday has not affected exports. Abdel-Ghani said that exports from Iraq's Kurdistan north region currently reach 195,000 barrels per day, sometimes even 200,000, he added. After a hiatus of two and a half years, the Kirkuk oil pipeline flow to Ceyhan resumed late September. The first exports were made in October.
-
Russia claims to have shot down 193 Ukrainian drones including 34 that were aimed at Moscow
Russian authorities announced on Monday that Russian air defence systems had destroyed 193 Ukrainian drones over night, including 34 that were aimed at Moscow and 47 in the Bryansk area, where one person died and five others injured. Alexander Bogomaz said that a Ukrainian drone struck a minibus in Bryansk in southwest Russia, which borders Ukraine. The drone killed the driver of the vehicle and injured five passengers. Sergei Sobyanin said that the drones were brought down in a six-hour period, beginning just before 10:00 pm on Sunday Moscow time (2000 GMT), according to a Telegram post by the Russian capital's mayor. No damage was reported in Moscow. However, Russia does not usually reveal the full extent of damage caused by Ukrainian strikes on its territory when civilians or civilian items are involved. Rosaviatsiya, the Russian aviation watchdog, said that two airports in Moscow, Domodedovo and Zhukovsky, would be closed for approximately 2.5 hours starting at 2240 GMT, to ensure safety. In its daily Telegram report, the Russian Defence Ministry said that, in addition to the drones downed over Moscow and Bryansk, Russian systems also destroyed drones in 11 other regions, primarily in the west and south of the country. Could not independently verify Russia’s reports about the attacks. Ukraine did not immediately comment. Kyiv had previously stated that its attacks were aimed at destroying key infrastructure for Russia's war against Ukraine. The vast majority of the deaths in the conflict have been Ukrainian civilians. Reporting by Lidia Kelley in Melbourne, editing by Nia William, Leslie Adler, and Himani Sarkar
-
US Transportation Secretary says that the shortage of air traffic controllers will continue.
Sean Duffy, the Transportation Secretary, said that U.S. Airports reported 22 incidents on Saturday of air traffic controller shortages. More shortages are expected in the coming days as the government shutdown continues. FlightAware's flight tracking site reported that there were over 5,900 U.S. flights delayed by 6 pm Eastern Time (2200 GMT), on Sunday, and more than 5300 delays on Saturday. Since the shutdown began, October 1, delays have been often above average. As observers search for signs that the shutdown is affecting Americans, they have closely monitored the state of air safety. This could lead to lawmakers being pressured to end the budget impasse that caused the shutdown. Duffy said that the Federal Aviation Administration had 22 "triggers", which indicated a shortage of air traffic control, on Saturday. Duffy called this figure "one the highest we've seen since October 1" Duffy stated that "that's a sign the controllers have worn thin." According to the FAA's website, ground delays were issued due to staff shortages at Chicago's O'Hare Airport on Sunday. The same was true for Washington's Reagan National Airport as well as Newark Liberty International Airport. A ground stop was also issued at Los Angeles International Airport due to a shortage of traffic controllers on Sunday around 11:30 am (1530 GMT). The ground stop was lifted a short time later, but delays continued. Trump Administration has warned that flight delays will increase as controllers do not receive their first full pay on Tuesday. Two weeks ago, air traffic controllers were paid at 90% of the regular rate. The pay they received on Tuesday was for the first time that they were paid solely for October's work. Duffy explained that controllers who are facing the possibility of not receiving a federal pay check will look for alternative sources of income. He said, "They are taking second jobs and they are out looking." Even if they don't get paid, 13,000 air traffic control officers and about 50,000 Transportation Security Administration agents must still work during the shutdown. Even before the shutdown, many air traffic controllers were working six-day weekends and mandatory overtime to meet their staffing targets. During a 35-day government shutdown in 2019, the number of controllers and TSA agents absent increased as they missed their paychecks. This led to longer wait times at airport checkpoints. New York and Washington authorities were forced to slow down air traffic. Duffy and Republicans have criticised Democrats for their opposition to a "clean", short-term funding measure without any strings attached. Democrats have criticized President Donald Trump for refusing negotiations over the health care subsidies which expire at year's end. Idrees Al and David Shepardson, with editing by Nia Williams, Edmund Klamann and Sergio Non.
Shipping companies pull out of Hong Kong to avoid US-China risks
Some shipping companies move their operations discreetly out of Hong Kong, and remove vessels from its registry. Some shipping companies are making contingency planning to do this.
Six shipping executives have said that these low-profile actions are motivated by a fear that their vessels could be seized by Chinese authorities, or face U.S. sanction in the event of a clash between Beijing and Washington. The people said that the growing U.S. scrutiny over the importance of China’s commercial fleet to a potential military conflict, such as one over Taiwan, and Beijing's emphasis of Hong Kong's role in serving Chinese interests is causing concern in the shipping industry. Last month, the U.S. Trade Representative proposed imposing steep U.S. fees on Chinese shipping firms and other companies that operate Chinese-built ships to counter China's "targeted dominant" in shipbuilding and maritime logistic. Washington warned American companies in September about the growing risks associated with operating in Hong Kong. The U.S. has already imposed sanctions on officials who are involved in a crackdown.
Hong Kong has been the hub of shipowners for over a century, as well as brokers, financiers underwriters, and lawyers who support them. Official data shows that its maritime and port industries accounted for 4,2% of the GDP in 2022.
VesselsValue - a subsidiary company of Veson Nautical, a maritime data group - reports that the city's flag was flown on eight out of ten ships in the world.
Interviews with two dozen people familiar with Hong Kong including shipping executives and lawyers revealed a growing concern about the possibility that commercial maritime operations in Hong Kong could be caught up by forces outside their control if a U.S. - China military conflict occurs.
Many pointed out China's increased focus on national security goals, trade frictions, and Hong Kong's leader's broad powers to take control of shipping if necessary, as he is accountable to Beijing.
One executive who, like many others, was allowed to remain anonymous to discuss this sensitive subject said: "We do not want to be in the position where China is knocking on our door, requesting our ships, while the U.S. targets us from the other side."
Previously, the concerns of shipowners as well as their efforts to limit exposure to Hong Kong were not reported. In recent years the perception of risk has increased, in line with the tightening security environment in the Chinese-ruled area and the tensions between two of the largest economies in the world.
Turning Tide
To comply with safety and environment rules, commercial ships must be registered or flagged with a specific country or jurisdiction.
VesselsValue, an independent research firm, found that despite the influx of Chinese ships on Hong Kong's register, the number oceangoing vessels registered in the city dropped by more than 8% in January, from 2,580 in January 2004. Government data show a similar drop.
In 2023 and 2024 74 ships, mostly dry-bulk carriers, were re-flagged for Singapore and Marshall Islands. These vessels transport commodities like coal, iron ore, and grain. VesselsValue reports that 15 tankers and 7 container ships left Hong Kong's registry to fly these flags.
Hong Kong's ship registry has seen a dramatic decline in the last two years. Official data shows that it grew by 400% over the past 20 years.
Hong Kong's Government responded to questions by saying that it is normal for shipping companies, given the changing geopolitical, trade and economic circumstances, to review their operations. It is also normal for the numbers of ships registered to fluctuate over the short-term.
A spokesperson stated that Hong Kong will "continue to excel" as an international shipping center, highlighting a variety of incentives, such as profits tax breaks and environmental subsidies, for shipowners.
The spokesperson stated that neither the laws governing registry nor the emergency provisions empower Hong Kong's leader in commandeering ships to serve as part of a Chinese merchant navy.
When asked to comment on the concerns of industry players about how emergency powers from colonial times might be used during a conflict between the U.S. and China, the spokesperson declined. The provisions give the leader of the city "any regulation whatsoever", which includes taking control over vessels and property.
China's commerce and defence ministries did not respond to questions regarding the role of the merchant fleet in Beijing’s warfighting plan, the possible involvement of Hong Kong flagged vessels, or the concerns of commercial shipowners.
The U.S. Treasury declined to comment on potential sanctions, concerns of shipping executives, or the role played by Hong Kong-registered ships in a Chinese commercial fleet.
Lawyers and executives agree that ships can be reflagged in a variety of ways, including through the sale, chartering or redeployment on different routes.
Basil Karatzas of Karatzas Marine Advisors & Co in the U.S. said that Singapore was becoming the preferred domicile for businesses with less exposure to Chinese shipping or cargo trade. It offered many efficiencies including its legal system but also a lower risk than Hong Kong.
Singapore's Maritime and Port Authority stated that decisions regarding domiciles and flags were based on business considerations. The Maritime and Port Authority of Singapore said it had not noticed any "significant changes" in the number Hong Kong shipping companies moving operations or reflagging vessels to Singapore.
MERCHANT FLEEET
Executives and lawyers agree that Hong Kong's registry for shipping is highly regarded by the industry because of its high safety and regulatory standards. This allows its ships to easily pass through foreign ports. Many of China's international state-owned vessels now fly Hong Kong's banner.
According to PLA military studies and four security analysts, in a conflict these tankers and bulk carriers would be the backbone of the merchant fleet that supplies China's oil and food needs.
The U.S., on the other hand, has a very small shipbuilding industry. It also has far fewer vessels under its flag. Three analysts say that while China's growing state-owned fleet would be a target of the U.S. during a military conflict, Beijing would need other vessels in order to supply its needs, given its reliance on international shipping lanes and vast needs.
Donald Trump has been keeping a close eye on strategic maritime operations. Trump said in his January inauguration address that he would "take back" control of the Panama Canal from China. Trump did not provide specifics but his remarks focused on two Panama port operated by a Hong Kong conglomerate CK Hutchison Holdings subsidiary. The group did not respond to any questions regarding Trump's remarks, but agreed to sell the majority of the subsidiary's shares to a consortium led by BlackRock this week, giving U.S. interest control over the port. Trump said to Congress that his administration would create a shipbuilding office in the White House, and provide new tax incentives.
In a study conducted by the U.S. Congress in November 2023, it was stated that "cargo vessels typically transport 90% of military equipment required in overseas conflicts". The report noted that Chinese shipyards ordered 1,794 ocean-going large ships in 2022 compared to five in the U.S.
Merchant vessels played a crucial role in Britain's 1982 long-range operation to retake Argentina's Falkland Islands. Declassified CIA files show that UK-flagged ships operated out of Hong Kong, many of which were owned or controlled by Chinese firms, supplied communist Hanoi in the Vietnam War.
In 2013, President Xi Jinping outlined the need for a Chinese merchant fleet that would help to build China's maritime strength in a Politburo session.
In the past decade, Chinese military and government documents and studies have emphasized the dual-use value of China’s merchant ships.
According to state media, regulations enacted in 2014 required Chinese builders to build five types of commercial ships, including tankers and container ships, to be able to serve military requirements.
Since then, COSCO has seen a significant increase in its line.
Documents from COSCO show that China places political commissars, officers who make sure Communist Party goals are served, on nominally civil ships.
The U.S. banned COSCO subsidiaries in January for what they said were links with the Chinese military.
COSCO has not responded to any questions regarding its deployment of commissars, U.S. restrictions, or what role COSCO's ships -- including those with Hong Kong flags -- might play in wartime.
'REALLY DE-RISKED'
Hong Kong is still an important shipowners' base, despite geopolitical issues. Some shipowners are quietly hedging.
Taylor Maritime (London-listed) a company that was founded in Hong Kong, in 2014, has a much smaller presence in Hong Kong now after several strategic moves in the last few years.
It has been flagging its ships in Singapore and the Marshall Islands since 2021. The company has offices in London, Guernsey and Singapore.
A person with knowledge of the matter said that the firm "really reduced the risk of Hong Kong". This was due to investors' fears of a Chinese invasion in Taiwan and the Communist Party taking control of Hong Kong.
Taylor Maritime's spokesperson stated that the company initially moved its Asia-based teams from Hong Kong to Singapore to be closer to their clients.
Taylor Maritime, after acquiring Grindrod, a shipping company with an Asia office in Singapore and expanding its operations there, relocated certain functions from Hong Kong to Singapore, where it became the primary Asia hub.
Two people with knowledge of the situation said that Pacific Basin Shipping, a Hong Kong listed company, has always flagged its 110 bulk carrier fleet in Hong Kong. However, it is now preparing contingency plans for them to be registered elsewhere while it assesses possible risks.
Pacific Basin's spokesperson stated that the company constantly evaluated geopolitical risk but its fleet still flew the Hong Kong flag "which, at least for the moment, outweighs the challenges".
The spokesperson stated that "Being located in Hong Kong places us near China's 40% share of the global dry bulk export/import activity as well as close to Asia's strong industrial and economic growth regions."
Angad Banga said that shipping firms adjust contingency plans based upon risk assessments, but he has not heard of concerns regarding the commandeering vessels.
Banga said that although some organizations may be re-evaluating their operational strategies, they do not see a widespread exodus from Hong Kong or a loss of confidence. The city, he added, remained attractive to maritime commerce.
Some industry figures have described a general unease in Hong Kong, which has affected their planning.
Three lawyers have said that, until recently, contracts for the increasing number of ships constructed in China that are financed by Chinese banks stipulated that the ship must fly the Hong Kong Flag.
Lawyers said that in the past two years some companies have added a disclaimer to their contracts, stating that they are willing to consider other flags as an alternative. Could not independently verify these changes. Beijing officials have stressed that Hong Kong is important in achieving national security goals. They also referred to China's modernisation of its military and refusal to abandon the use of force against Taiwan.
Three executives and lawyers said that the sweeping security laws, which were first implemented in Hong Kong in July 2021 and then strengthened in March 2020, have increased dangers.
Lawyers said that any attempt by Hong Kong’s leader to commandeer ships in an emergency could prove difficult, since locally registered vessels often travel routes far away from Hong Kong. They said that such powers, which have been in place for a long time, now needed to be seen through the lens of national security.
One lawyer stated that some shipowners would not object to a request from the government to hand over their vessels. This could be due to patriotism, or because they might profit by a crisis.
Another veteran lawyer said that it is "better to avoid being in a situation where you could be asked".
It was not an issue a few short years ago. The national security map has been redrawn. (Reporting and editing by David Crawshaw; Additional reporting by Andrea Shalal, Idrees, and Idrees in Washington and Beijing, Shanghai, and Hong Kong;
(source: Reuters)