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UK police given more time to question ship crash captain
British police confirmed on Friday that they had been granted additional time to interview the Russian captain, 59 years old, of a container vessel that collided with a U.S. oil tanker this week. After his arrest for gross negligence manslaughter following the collision of his ship with the Stena Immaculate, which was carrying U.S. Military jet fuel, the captain of the Portuguese flagged Solong is being held in police custody. The incident is believed to be the cause of death for one crew member, while 36 crew members were rescued and brought ashore. Police said that a court granted an additional 24 hours of custody to the man, in addition to the 36-hour extension previously granted. The coastguard reported that salvage companies had boarded both vessels on Thursday to assess the initial damage. It said in a Friday update that there were only periodic small pockets of fire which did not cause "undue concerns". The police said that extensive lines of investigation were being pursued, but it would take time because the vessels are still at sea. There were also a lot of witnesses. The police stated that "additional time was needed for the investigation because of the complexity of the incident." In a Telegram message, the Russian embassy in London shared that they had "a detailed telephone conversation" on Thursday with the captain and that he is feeling well. The embassy stated in its statement on Friday that it is in constant contact with British authorities and the police station, where the captain was being held. (Reporting and editing by Catarina demony; Sarah Young, Sam Tabahriti)
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Kazakhstan increases oil exports through Baku-Tbilisi - Ceyhan pipeline by February
According to data provided by pipeline company KazTransOil, the number of metric tons exported in February, up from January, was 97,300 (roughly 28,000 barrels a day). Kazakhstan relies heavily on Caspian Pipeline Consortium, one of the largest pipelines in the world that crosses Russia and reaches the Black Sea port Novorossiisk. The BTC pipeline is the main alternative route for the CPC. It originates from Azerbaijan, on the other side of the Caspian Sea to Kazakhstan. To get Kazakh oil into Baku, either tanker shipments must be made across the Caspian Sea or a transcaspian pipeline needs to be built. The fleet is small, and talks about a pipeline between the states that border the Caspian Sea have been stalled by territorial disputes for decades. KazTransOil said that the oil exports to China via the Atasu - Alashankou pipeline fell by 9% in the same month compared to the previous one to 73 685 tons. David Evans (reporting)
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South Korea's MFG purchases about 137,000 t corn, traders claim
Major Feedmill Group, a South Korean company, purchased approximately 137,000 metric tonnes of animal feed corn at an international auction on Friday. A 69,000-ton consignment that was to come from South America or South Africa alone, plus a $1.50 surcharge per ton for port unloading costs, were purchased at an estimated cost and freight of $260.25. Cargill, a trading company, is believed to have sold the corn from South America/South Africa. It should arrive in South Korea by July 10. A second consignment, 68,000 tons of optional origins, was purchased at a cost of $253.49 per ton plus $1.50 for port unloading. The optional origin corn is expected to arrive in South Korea on or around June 25, and its seller is believed to be the trading house Olam. The MFG was looking for up to 140,000 tonnes of corn with separate offers from South America/South Africa origin or optional origin from the United States. The reports reflect the assessments of traders. Further estimates on prices and volume are possible in the future. South Korean importers have been buying heavily in the past days, after U.S. Corn futures dropped about 2% last week. (Reporting and editing by Michael Hogan)
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UK police given more time to question ship crash captain
British police confirmed on Friday that they had been granted additional time to interview the Russian 59-year-old captain of a container vessel which crashed into an American tanker earlier in the week. After his arrest for gross negligence manslaughter following the collision of his ship with the Stena Immaculate, a tanker carrying U.S. Military jet fuel, the captain of the Portuguese flagged Solong is being held in police custody. The incident is believed to be the cause of death for one crew member, while 36 crew members were rescued and brought to shore. Police said that a court granted an additional 24 hours of custody to the man, in addition to the 36-hour extension previously granted. The coastguard reported that salvage companies had boarded both vessels on Thursday to assess the initial damage. Small fires could still be seen on the Solong’s top deck. The police said that extensive lines of investigation were being pursued, but it would take time because the vessels are still at sea. There were also a lot of witnesses. The police stated that "additional time was necessary for the investigation because of the complexity of the incident." (Reporting and editing by Catarina demony; Sarah Young, reporter)
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Asian spot LNG prices dip amid tepid demand
The Asian spot price of liquefied gas (LNG), which is a product of the Atlantic basin, fell this week to its lowest level in three months as tepid regional demand persists. Average LNG price for delivery in April to northeast Asia Industry sources estimate that the price per million British Thermal Units (mmBtu) is $13,40. Estimated average prices for May deliveries were $13.20/mmBtu. Martin Senior, Argus' head of LNG pricing said that the Japanese demand was muted. Some Japanese utilities sold cargoes instead of buying, he added. Martin Senior also noted that utilities had healthy stocks despite recent cold weather, as their inventories were already high heading into winter. The data from the Industry Ministry showed that LNG inventories held in Japan by major electric utilities reached 1.79 million tons on March 9 compared to 1.48 million tonnes at end-March of last year. Senior said that South Korean buyers have been buying cargoes in the last week to replenish their stocks following a cold spell at the end of winter. Siamak Adibi, FGE analyst, stated that while Asian LNG demand is weak and March imports are expected to end similar to those of February, Europe has continued to import high volumes of LNG. Total imports will likely be slightly less than 12 million tonnes by the end March. He said that the pipeline supply in Norway is almost full, and gas withdrawals have been high because of increased consumption, especially by residential, commercial and power sectors. This was mainly due to weather conditions. The main concern on the market is Europe's low underground inventories. In order to maintain the balance of the market, LNG imports will continue to be high. Market attention is also on the comments of Russian President Vladimir Putin who, amid talks of a possible cessation in the conflict in Ukraine mentioned a possible energy collaboration between the U.S.A. and Russia and a pipeline for Europe. S&P Global Commodity Insights estimated its daily North West Europe (NWM) LNG Marker price benchmark on March 13 at $12.411/mmBtu, a $0.55/mmBtu reduction from the April gas prices at the Dutch TTF Hub. Spark Commodities set the price at $12.82/mmBtu for delivery in March, while Argus put it at $12.51/mmBtu. Qasim Afghan, an analyst at Spark Commodities, stated that the U.S. arbitrage for northeast Asia via Cape of Good Hope has widened, and this is the first time it has been widening in nearly two months. This encourages U.S. cargoes being delivered to Europe. He added that the LNG market saw a rise in rates this week, with the Atlantic region seeing the highest rates for four months at $25,750/day. Meanwhile, Pacific rates increased to $19750/day.
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South Korea's KFA purchased up to 70,000 T of corn in a private deal, traders claim
According to European traders, the Korea Feed Association in South Korea purchased between 65,000 and 70,000 metric tonnes of animal feed corn on Thursday in a private transaction without issuing a tender to international buyers. The KFA Incheon section was reported to have purchased the corn from CHS at an estimated cost and freight included price of $251.50 per ton and some at 175 U.S. Cents a bushel over the Chicago may corn contract. Incheon's KFA section is also known as the Feed Buyers' Group. Arrival of corn is expected around June 20. The shipment of corn from the Pacific Northwest Coast is between May 5 to June 5. Decide on the volume of goods to be delivered by April 15. The reports reflect the assessments of traders, and it is still possible to estimate prices and volume later. Michael Hogan is reporting.
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Sources say that China's state-owned firms have reduced their Russian oil imports due to sanctions.
Multiple trade sources reported that Chinese state oil companies have shied away from Russian crude oil in the past month. Two importers stopped purchases, while two others reduced volumes to assess compliance after recent U.S. Sanctions on Moscow. The former Biden administration's January 10 sanctions against Russian oil producers Gazprom and Surgutneft, as well as insurance companies and over 100 vessels in an effort to reduce Moscow's oil revenues led to a sharp drop in Russian oil sales to India and China. Sources with knowledge of the situation said that while Russian shipments have recovered after more non-sanctioned tanks joined the trade with China, Sinopec, the state-run oil company in China, and Zhenhua Oil, the Zhenhua Oil subsidiary, halted their purchases of Russian oil loaded on March due to concerns about dealing with sanctioned firms. The reduced purchases by Chinese state-owned companies have weighed down on Russian oil, reducing Moscow's revenues and adding additional pressure to Russia in advance of any possible ceasefire agreement with Ukraine. Beijing-based source of state oil said that his company has ceased Russian oil sales as it conducts compliance checks and awaits a "clearer picture" regarding a possible Russia-U.S. agreement to end the Ukraine War. The person declined to name their company or identify themselves as they were not authorized to speak to media. Surgutneftegaz, and Gazprom neft are responsible for about a quarter of the seaborne shipments in Russia's flagship blend ESPO. Both companies export 1.2 million tons of crude oil to China each month, which is roughly 300,000. An executive in the trading department of a Russian supplier who regularly deals with Chinese state buyers stated that the companies are shunning oil from the newly sanctioned firms. The executive said, "They're taking a rest for the moment while they consider if there is a way to work around." China has stated that it is opposed to unilateral sanctions. Sinopec and Zhenhua Oil have not responded to our requests for comments. Gazprom Neft et Surgutneftegaz have not responded to our requests for comments. Independent refiners are stepping in to support prices, averaging a premium of $2.50 to $3 per barrel over ICE Brent for cargoes loading March, according to the executive and other traders. Recent transactions for April-loadings likely occurred at a premium of $2 or less per barrel. They added that prices differed for different oil companies and vessels. Chinese state-owned firms are the biggest buyers of Russian oil in China. They buy roughly half, or 1.3 million barrels per day, of Russia's exports to China. Independent refiners take the rest. China is the largest crude oil importer in the world, and 20% of its crude oil imports come from Russia. LOWER VOLUMES PetroChina, a major ESPO purchaser from Rosneft - the top Russian producer - continued to make seaborne purchases, but in lower quantities, according to two sources. CNOOC has reduced its March loading volumes as well, according to traders. CNOOC is a regular buyer and seller of Russian oil. PetroChina and CNOOC have not responded to our requests for comments. PetroChina, in addition to the seaborne imports of Russian oil (mostly ESPO grade), continued lifting 800,000.-900,000. bpd via pipelines. This was done under a long term agreement. Traders said Sinopec has filled the gap in Russian imports by importing cargoes from West Africa and the Middle East, as well as Brazil. Reporting by Chen Aizhu, Florence Tan and reporters in Moscow. Editing by Tony Munroe, Muralikumar Aantharaman.
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CK Hutchison shares fall after China issues critical comments on the port sale to U.S. interest
The shares of Hong Kong conglomerate CK Hutchison fell more than 6% after China's Hong Kong Macau Affairs Office published a commentary on state media that criticized the company's sale of a port as a betrayal to China. The Hong Kong-based group said last week it agreed to sell most of its global $22.8 billion ports business, including assets it holds along the strategically-important Panama Canal, to a group led by U.S. investment firm BlackRock. The deal has been hailed by U.S. president Donald Trump who had called for the removal of the waterway from what he said was Chinese ownership. The state-owned Ta Kung Pao, based in Hong Kong, published a comment on Thursday saying that the deal "betrays the Chinese people and sells them out", neglects national interest and shows CK Hutchison's "backbone" as well as his profit-seeking. The column was also posted on the website of the State Council, China's highest-level authority overseeing Hong Kong affairs. CK Hutchison is a Hong Kong-based and listed company owned by billionaire Li Kashing. The firm has insisted that its business operations remain independent of China. The comment and the fall in CK Hutchison’s share price is an indication of the complicated geopolitical situation the company faces, amid Trump's pressure on China and investor fears that the deal may not have been backed by Beijing. CK Hutchison and Hong Kong and Macau Affairs Office didn't immediately respond to a request for comment. After a drop of up to 6.7% during the early trading, its shares fell 4.6% by noon. The main Heng Sang Index rose 2.5%. Reporting by Clare Jim, James Pomfret and Editing by
Novak, Russia: Demand for oil will increase during the driving season
The summer driving season will increase global oil demand in the coming months, said Russia's top official for oil. He added that the OPEC+ producer's group decided to release more crude oil on the market because of this.
Russia has reduced its oil output in the OPEC+ Group, which decided to increase its production from April this year, the first time since 2022.
Alexander Novak, Deputy Prime Minister of Russia, said OPEC+ – which includes OPEC and its allies like Russia – was ready to take action if sluggish consumer demand and a surge in supply from producers like the United States resulted in an oversupply. He added that fears about the demand may have been exaggerated.
He said on Thursday night that "oil demand will increase during the driving seasons".
The International Energy Agency warned Thursday that the global oil supply may exceed demand this year by 600,000 barrels a day due to growth in the United States, and a weaker global demand than expected.
Novak said he didn't expect a fast solution for the resumption in Russian gas exports into Europe via the Nord Stream pipelines damaged under the Baltic Sea.
He said, "It is off the agenda at this time."
Novak said that there are no discussions at this time about the return of Russian oil to Germany via the Druzhba Pipeline. In 2023, Germany and Poland stopped buying oil from Moscow due to the conflict in Ukraine. Hungary and Slovakia continue to buy oil. (Reporting and editing by Vladimir Soldatkin. Mark Potter edited the article.
(source: Reuters)