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India increases its purchases of ESPO oil from Russia in April, as Chinese demand declines
According to LSEG data and traders, India's purchases of ESPO blend oil from Russia increased in April to their highest level since August 20,24 due to a decline in demand from Chinese companies. ESPO Blend, the flagship grade of light crude oil that Russia exports from Kozmino to Asian markets is most popular with Chinese refiners. Chinese state refiners reduced their purchases of ESPO blend oil in March and April due to sanctions against Russian companies, seasonal maintenance and other factors. This left more barrels for India, the second largest buyer of Russian oil. According to LSEG data and traders, the Russian ESPO blend oil supplied to Indian ports has risen from just one cargo of 100,000 tonnes in March to 400,000 metric ton (or approximately 100,000 barrels per week) this month. Data shows that India has purchased the most ESPO Blend oil since August of last year. Recently traders started showing us ESPO volume as well. One source in India's oil sector said that there was a low demand for ESPO in China. India, which is the biggest buyer of Russian oil via sea, buys small quantities of ESPO blend because the logistics are complicated and the price is higher than Urals oil from Russia. According to LSEG, India will receive another 200,000 metric tonnes of ESPO blend in May. Traders believe that India could import more ESPO Blend next month due to the availability of this grade and the ongoing low demand for crude oil in China. The weakening of international benchmarks has also pushed the price of Russian oil, including ESPO blend, below the Western price limit of $60 per barrel. This may make it easier to buy the grade. Sinopec, a Chinese oil company, has resumed purchasing ESPO Blend in May. This may have an impact on India's purchase prospects. Reporting by Nidhi in New Delhi and in Moscow. Mark Potter is the editor.
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A large part of Spain and Portugal is affected by a power outage
A widespread power outage in Spain and Portugal on Monday paralysed the public transport system, caused traffic jams and caused flights to be delayed. Red Electrica, the Spanish electricity transmission company, said that the outage could last between six and ten hours. The cause was not known at the time. Officials have not ruled out the possibility of a cyber-attack. Traffic lights failed to work, creating gridlock in Portugal and Spain. The outage affected the transport networks, hospitals and elevators. In Madrid, there were hundreds of people standing in the street outside important office buildings. There was also a strong police presence, and officers were directing traffic, as well as driving through central atriums lit with lights. Sources familiar with the situation say that the Spanish and Portuguese governments met in order to discuss the outage which briefly affected France. In addition, a crisis committee has been set up in Spain. The Spanish Prime Minister Pedro Sanchez has visited the control centre of Red Electrica, a company that provides electricity transmission. The Spanish government stated that it was working to identify the cause and impact of the incident, and that all resources were being used to solve the problem as quickly as possible. Red Electrica stated that it is working with regional energy providers to restore power. Portuguese utility REN has activated plans to restore electricity in phases. The Madrid Open Tennis Tournament was suspended after the scoreboards and overhead cameras went dark. This forced 15th seed Grigor Dimitrov and his British opponent Jacob Fearnley to leave the court. The European Commission stated that it had been in touch with the authorities of Spain and Portugal, as well as the European Network of Transmission System Operators ENTSO-E in order to determine the cause of this outage. GRIDLOCK In Europe, power outages of this magnitude are rare. A problem with the hydroelectric power lines between Italy and Switzerland in 2003 caused an outage that lasted for 12 hours across the entire Italian peninsula. The air in Madrid was filled with police sirens, and helicopters hovered overhead. The Torre Emperador, a towering skyscraper located in Madrid's capital, was evacuated by stairway. As the signal on their cell phones fluctuated, worried parents tried to reach their child's school. In a video that was posted on X by the Madrid Mayor Jose Luis Martinez Almeida, he urged residents of the capital to minimize all travel and remain in their current location if at all possible. Airports reported delays. AENA, the company that manages 46 airports throughout Spain, has reported delays at all of its airports. Portugal's airport operator ANA has said that emergency generators have been activated at Porto and Faro Airports. This allows for the time being essential airport operations to continue. In Lisbon, the operation is ongoing with some limitations. It said that there has been no impact on Madeira or Azores airports. Reporting by Emma Pinedo; writing by Nina Chestney, editing by Andrei Khalip; Mark Heinrich, Bernadettebaum, Timothy Heritage and Timothy Heritage;
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Sources say that Greek shippers are returning to the Russian oil market because prices have fallen below G7 caps.
Three trading sources reported that Greek shipowners have returned to the Russian Urals oil market, as the price has fallen below the Western price ceiling of $60 per barrel. This allows them to offer transport and insurance while still complying with the sanctions. The Group of Seven countries has introduced a price cap that prohibits Western companies from providing insurance or transport services to Russian oil above $60 per barrel sold at the port of loading. Since December 2022, most Western shipowners have avoided working with Russian oil because of relatively high oil prices that kept Urals near or above the price cap. Since then, the main Russian oil shippers are tankers operated by companies in countries that did not join the price cap policy. According to three sources from the shipping and trading industry, in April a number Greek shipowners, including Minerva Marine and Dynacom, provided vessels for Russian oil shipment. The sources stated that these companies weren't present on the Russian oil markets last year. Three shippers did not respond to requests for comments. Due to the global trade tensions, oil prices have fallen this spring. Urals is now available at prices below $60 per barrel in Russian ports. This allows Western shipowners a return to using Russian crude. Calculations show that the value of Urals shipments FOB from Baltic ports and Novorossiisk was slightly over $50 per barrel on April 24. According to LSEG and shipping and trading sources, 15 of the 25 tankers that loaded Urals oil in April from the ports in Primorsk and Ust-Luga, and Novorossiisk, were managed by Greek shippers. Reporting by in Moscow. Renee Maltezou also contributed to the story in Athens. Mark Potter (Editing)
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Massive power outages in Spain and Portugal affect large areas
A widespread blackout in Spain and Portugal on Monday paralysed the public transport system, caused traffic jams, and delayed flights. Utility operators scrambled to restore power. Officials said that authorities were still unable to explain why the outage occurred an hour later, despite the fact that a cyber attack was not ruled out. Investigations were also ongoing. According to sources familiar with the situation, a crisis committee in Spain was formed to handle the situation. After the power outage that briefly affected northeastern Spain and a portion of France, both governments called emergency cabinet meetings. Portugal's utility REN confirmed a power cut across the Iberian Peninsula, which also affected a part of France. Meanwhile, Spanish grid operator Red Electrica stated that it was working with local energy companies to restore electricity. A REN spokesperson stated that "all plans for the gradual restoration of energy are in place, and they're being implemented in coordination with European energy operators and producers." "REN is always in contact with the National Civil Protection Authority, which is an official entity. The possible causes of the incident are also being evaluated. The Madrid Open Tennis Tournament was suspended after the scoreboards and overhead cameras went dark. This forced 15th seed Grigor Dimitrov and his British opponent Jacob Fearnley to leave the court. Spanish radio stations reported that part of Madrid's underground is being evacuated. Cader Ser Radio reported that traffic lights in Madrid's city centre had stopped working. This caused traffic jams. According to a witness, hundreds of people were standing outside offices on the streets of Madrid. There was also a strong police presence in key areas, who directed traffic and drove along atriums lit with lights. The witness said that one of the four tower buildings housing the British Embassy in Madrid had been evacuated. Radio stations in the area reported that people were trapped in metro cars and elevators. The Portuguese police reported that traffic lights in Portugal were out of order, the metro system was shut down in Lisbon and Porto and the trains weren't running. According to the Publico newspaper, the operator of the Lisbon subway system Metropolitano de Lisboa reported that the trains were at a standstill and people were still in the cars. Sources at TAP Air in Portugal said that the airport of Lisbon was using backup generators. AENA, who manage 46 airports throughout Spain, reported delays across the country. Grid operator RTE in France said that there had been a brief power outage, but the power was restored. It was looking into the cause.
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Maguire: The clever US state that thrives under Trump
Louisiana has been overshadowed for years by its showier neighbour Texas. Texas boasts a bigger economy and a greater population, and has dominated Washington DC policy makers and the international stage. The Bayou State, however, is undergoing a revival which could lead to it becoming the most dynamic and influential Gulf Coast hub in the coming decades. This could be attributed to its development blueprint. Louisiana, as the primary exit point for U.S. gas exports, is a major cheerleader of President Donald Trump's "drill, baby, drill" mantra. It is also the home of some of the most important natural-gas basins in the United States. A new steel plant worth billions of dollars is being planned by the state. This was announced at a White House event earlier this year, which marked a return to traditional manufacturing in the United States. Louisiana's smokestack industry, which includes century-old refineries and chemicals sectors, is also at the forefront of a ongoing carbon capture campaign that has made it a major player on the clean energy front. Louisiana has a growing battery sector, a hydrogen-producing industry and an emerging data center. It can offer industries that are fit for America in the 21st century, regardless of which party is in Washington. DEFT MESSAGING AND A CAPTIVE Audience Louisiana's progress has been driven by its willingness to reuse the old and add the new. This philosophy is not limited to brick and mortar industries, but also includes marketing pitches and mission statements. Projects that were marketed under the Biden Administration as driving the energy transition are now marketed to boost energy security and create jobs, which is more appealing to the Trump Administration. Businesses that reduce emissions from chemical plants and those that are positioned to be leaders in the carbon capture and storage (CCUS) sector, which is expected to grow rapidly over the next few decades, are among these businesses. Louisiana is a leader in CCUS, but it's not just on paper. The state has more than 60 carbon-capture projects. These include 13 CO2 pipelines as well as several ammonia plants and hydrogen plants which intend to use CO2 for a feedstock. Air Products, a producer of industrial gas, is building a complex dedicated to expanding hydrogen applications in the state. This could include the fertilizer and the steel producers who are heavy users of natural gas. AMERICAN MADE According to Kpler, trade intelligence firm, the liquefied gas industry has already established Louisiana, as its primary hub. Approximately two-thirds (or $30 billion) of U.S. exports of LNG will depart via state terminals. Louisiana's share in LNG trade is expected to increase further when the Plaquemines LNG Export Facility reaches full capacity at the end of the year. Gas developers also boost extraction from Louisiana fields. This is especially true of the Haynesville Basin, which has less impurities in its gas than other large deposits. It's therefore ideal for converting it to LNG and exporting it. The flurry in extraction activity has also sparked growth in ancillary service sectors in the state. This includes the production and maintenance of pipeline equipment. Louisiana is also home to other businesses and industries. In the last year, manufacturers such as Hyundai Steel, Ice Industries (a manufacturer of steel rails for solar panels) and PSS (an industrial equipment maker) have announced plans to open new plants in the State. Social media giant Meta will spend $10 billion on a data center of 4 million square feet in the state. Meanwhile, Procter and Gamble announced recent expansions to its Rapides Parish production facility. Chemical and plastic manufacturers are expanding in the state in hopes that the current push for factory production to be reshored to the U.S. will spark a higher demand for industrial components. COST PRESSURE The state's growing natural gas supply - which will be delivered via a new pipeline from the Permian basin to Louisiana's industrial hub in 2026 – is also attracting industries that need abundant power sources. Louisiana is currently enjoying a competitive advantage due to its lower than average electricity prices for industries. According to the data portal Electricchoice.com, Louisiana's cost of commercial electricity is 16% lower than the national average at 10.7 cents per Kilowatt Hour. This rate is lower than that of Florida, Georgia and Mississippi, as well as Michigan and Pennsylvania, states which also compete with Louisiana for the business of manufacturing and technology companies. Any significant increase in industrial gas usage - whether for LNG exports, or local businesses that use gas to power or process - will likely put upward pressure on energy prices going forward. Meta's massive data center, as well as the other businesses moving or expanding to the state will likely increase the overall energy demand. Local power providers are better equipped to meet demand for energy than others, thanks to the growing supply of natural gas in the state and plans to expand nuclear generation. This could help Louisiana to emerge from Texas' shadow - where stretched grids and volatile prices are commonplace - and become a critical hub for America’s future industrial and energy needs. These are the opinions of a market analyst at.
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The operator of Germany's Wilhelmshaven Gas Terminal 1 says that it will reopen soon.
According to a notice on DET's site, the terminal's superstructure at the transhipment facility's jetty will reopen soon after scheduled repairs were completed last week. The regasification vessel Hoegh Esperanza had returned to its docking on the 26th of April at noon. The note from Deutsche Energy Terminal GmbH stated that "the Esperanza is now connected to the superstructure, and will be soon able to accept the next LNG delivery, regasify and feed it to the German gas grid." Lower Saxony's state port operator dug at the site in order to maintain the necessary water depth. DET announced Friday that another regasification vessel, named Excelsior was scheduled to arrive in Wilhelmshaven, giving the site a second option for LNG import. DET charters vessels at the LNG Terminals of Wilhelmshaven Brunsbuettel Stade that the Berlin government ordered during the peak of Europe's Energy Crisis in 2022. Vera Eckert reported the story. Mark Potter edited the article.
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Xinhua: China urges 'prudence" in CK Hutchison ports deal
China's Foreign Ministry has asked that all parties involved in the planned sale by CK Hutchison of its majority of ports to a BlackRock led consortium "act with caution", state news agency Xinhua said on Monday. As trade tensions between the United States and China intensify, the sale of the Hong Kong conglomerate's two ports, located adjacent to the strategically significant Panama Canal, is becoming highly politicised. The Wall Street Journal reported, on April 16, citing sources familiar with the situation, that MSC, which is a member of the BlackRock Consortium, had held discussions about moving forward with the bulk deal until the dispute over the two Panama port ports was resolved. According to Xinhua, Guo Jiakun, spokesperson for the foreign ministry's press office, said: "We have noted relevant reports." Reports added that the spokesperson urged all parties to keep in constant communication with the Chinese departments concerned. China's top regulator of the market also responded to Sunday's Wall Street Journal article, saying that it was closely monitoring the deal and that parties should not avoid an antitrust investigation. CK Hutchison, owned by Li Ka-shing, announced last month that it would be selling its 80% stake in the port business. This includes 43 ports across 23 countries. The enterprise value, including debt, is $22.8 billion. CK Hutchison didn't immediately respond to a comment request. Aaditya Govind Rao, Bengaluru Reporter; Maju Samuel, Editor
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EU network operators suggest Germany split its power market.
In a report released on Monday, the European association of power grid operators said that Germany should split its electricity market up to five different price zones in order to reflect the different prices across the country. Why it's important Germany has a large, unified power market with a unified price. Luxembourg is a part of the German electricity bidding zone. The congestion on Germany's grid has led to calls for at least two zones to be created to prevent high prices in one area from affecting the whole country. By the Numbers ENTSO-E's analysis of the various options to split Germany's market showed that all of them would result in economic benefits. However, a division into five bid zones would produce the greatest benefits of 339 millions euros ($385million) by 2025. ENTSO-E stated that while the split market could result in lower prices in the north, which is rich in renewables, prices could rise in the south, where heavy industry dominates the German economy. What's Next? The new German coalition government opposes the splitting of the power market. It fears that it could increase prices and affect industrial activity in the south. The issue has already caused problems for power infrastructure projects. Countries like Sweden are lobbying Berlin about the matter. CONTEXT Sweden says it won't approve a new cable connecting the south of its country with Germany until Berlin reorganises German market. Sweden and Germany have already been connected by a single power cable. The Swedish government claims that this is driving up the price of power in Sweden's southern region - even though it is connected to northern Germany, where renewable energy is cheap. Sweden's electricity is divided into four zones.
City of London sees a 50% increase in cycling in just two years
The number of cyclists in London's City has increased by over 50% in just two years. New cycle paths, dockless bikes and improved air quality have all contributed to this increase.
Official data shows that in October 2024 there will be 139,000 cyclists per day in the Square Mile. This is London's historic financial district. In 2022, this number was 89,000.
The City of London Corporation released a press release stating that there were nearly twice as many bicycles as cars on London's streets at any given time.
The increase in cycling coincides with a reduction of motor vehicle traffic (down 5% since 2022) and an improvement in air quality in the region. In 2024, the number locations that exceeded nitrogen dioxide targets fell to two from 15.
Since 2003, London has a congestion fee that aims to reduce vehicle traffic. In recent years, the air quality in London has improved thanks to an Ultra Low-Emission Zone that imposes a tax on vehicles with high emissions.
New paths and routes have encouraged cyclists, as has the rapid growth of dockless cycle hire schemes, whose use in the city has quadrupled from 2022. One in six bikes are now "Lime" or "Forest" bicycles.
The City of London has seen a greater increase in cycling than the central London region, which has increased by 12% in that time. (Reporting and editing by William James, Sarah Young)
(source: Reuters)