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Shipping company MSC suspends Mali service over fuel and security concerns
MSC, a Swiss transport company, has announced that it will no longer accept bookings for Mali because of security concerns and a fuel shortage caused by a blockade imposed on the country by militants linked to al Qaeda. The Jama'at Nusrat al-Islam wal-Muslimin's (JNIM's) two-month-old blockade of fuel on the landlocked West African nation has almost paralysed Bamako's capital. The group attacked fuel tankers trying to reach Bamako. This was a blow to the military-led regime and raised fears that the jihadists could try to establish their rule. MSC posted a statement on its website Thursday stating that road transport for cargo bound for Mali was temporarily suspended due to safety concerns and fuel shortage. The French shipping company CMA CGM announced on Thursday that its overland transportation had been "heavily affected in terms of transit times and costs", due to Mali's fuel shortage and security problems. After meeting officials from the Mali transport ministry, it reversed its decision to suspend cargo shipment. France became the latest Western nation to urge its citizens to leave Mali on Friday. Similar notices have been issued by the U.S.A., Britain, and Italy. Reporting by Mali Newsroom Written by Robbie Corey Boulet Edited by Ros Russell
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Brazil investigates threats to the power grid of COP30's host city after deadly Rio raid
A document obtained by revealed that the Brazilian authorities were investigating a threat made against a substation of a city hosting the United Nations Climate Summit. The report may have links to a gang which was the target of a deadly raid by police last week. Brazil hosts world leaders for a summit in Belem ahead of the COP30 Climate talks. This comes a week after Rio Police targeted the Comando Vermelho gang, resulting in 121 deaths, causing concern among U.N. experts. Verene Energia - the company that manages the Belem - Marituba substation notified Brazil's Mines and Energy Ministry on October 30, two day after the raid – of a threat by someone identifying himself as a Comando Vermelho member. Documents showed that the individual requested the immediate suspension and daily interruption of operations at the Marituba Substation starting at 3 pm local time. Verene Energia informed the Mines and Energy Ministry that "this incident demonstrates a imminent and active threat not only to personnel and property but also to continuity of essentail public services, which is further aggravated due to the proximity of COP30". The company didn't immediately respond to our request for comment. Comando Vermelho was founded in Rio five decades ago, but has expanded into other Brazilian states, including the Amazon region, in search of new routes for drug and weapons trafficking. The police said that gang leaders from different states were involved in last week's deadly raid on Rio. The Brazilian Justice Ministry announced that it "immediately" initiated an investigation and had referred the matter, upon hearing of the threat against the substation, to the relevant authorities. In a press release, the federal police of the country said that they had launched an investigation to determine whether this was an isolated incident or linked to a criminal group. They also added that security measures were still in place.
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Brazil investigates threats to the power grid of the COP30 host after deadly Rio raid
A document obtained by revealed that the Brazilian authorities were investigating a threat made against a substation of a city hosting the United Nations Climate Summit. The report may have links to a gang which was the target of a deadly raid by police last week. Brazil hosts world leaders for a summit in Belem ahead of COP30 climate talks. This comes a week after Rio Police targeted the Comando Vermelho gang, resulting in the deaths of 121 people. The U.N. experts are concerned. Verene Energia - the company that manages the Belem - Marituba substation notified Brazil's Mines and Energy Ministry on October 30, two day after the raid – of a threat by a person who identified himself as a Comando Vermelho member. A letter was sent to the Justice Ministry. Documents showed that the individual requested the immediate suspension and daily interruption of operations at the Marituba Substation starting at 3 pm local time. Verene Energia informed the Mines and Energy Ministry that "this incident demonstrates a imminent and active threat not only to personnel and property but also to continuity of an important public service. This risk is further aggravated due to the proximity of COP30." The company didn't immediately respond to our request for comment. Comando Vermelho was founded in Rio five decades ago, but has expanded into other Brazilian states, including the Amazon region, in search of new routes for drug and weapons trafficking. The police said that gang leaders from different states were involved in last week's deadly raid on Rio. The Brazilian Justice Ministry announced that it "immediately" initiated an investigation and had referred the matter, upon hearing of the threat against the substation. Reporting Ricardo Brito from Brasilia, and Leticia fucuchima from Sao Paulo. Writing by Isabel Teles. Editing by Brad Haynes & Paul Simao.
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US Airlines scramble for first day of 4% flight reductions
U.S. Airlines scrambled on Friday to cut 4% from flights at 40 major US airports, after the government cut air travel by an unprecedented amount citing safety concerns for air traffic control due to a record-breaking government shutdown. Cuts began at 6 am ET (1100 GMT) and include about 700 flights from the four largest carriers - American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. The cuts, which began at 6 a.m. ET (1100 GMT), affect about 700 flights operated by the four biggest carriers, American Airlines, Delta Air Lines and Southwest Airlines. They are expected to increase to 6% next Tuesday, and to 10% on November 14, if the shutdown continues. International flights are not included in the reductions. AMERICAN AIRLINES: MORE CUTTING WOULD BE a 'Problematic'. Robert Isom, American Airlines' CEO, said that he did not anticipate significant disruptions for customers due to the initial flight reductions ordered by the government. He warned, however, that further cuts could be "problematic." Isom, a CNBC analyst, said: "This level cancellation will grow over time. That's going to be a problem." Since airlines fly less flights on Saturdays, we expect to see fewer cuts. United Airlines reported that half of the affected customers were able rebook within four hours from their original departure. Federal Aviation Administration didn't publish the list until after 7:30 pm. ET on Thursday, less than 12 hour before the cuts went into effect. The Federal Aviation Administration largely dismissed concerns raised by airlines after receiving a draft of the order. The FAA is also slowing flights in order to deal with staffing problems. FAA Administrator Bryan Bedford stated earlier this week that 20-40% controllers did not show up to work any day. During the 38-day record government shutdown, 13,000 controllers of air traffic and 50,000 screeners were forced to work for free. Due to staff shortages, the FAA imposed a ground delay program on Friday that slowed down flights at Reagan Washington National and Austin. FAA also restricts space launches The agency also said it would reject any cuts that disproportionately affected certain communities, and could reduce general aviation flights by up to 10% at airports with high traffic if there were staffing problems. Reporting by David Shepardson. (Editing by David Goodman, Mark Potter and David Goodman)
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Two Russian oil tankers drop anchor in the sea as a sign that sanctions are hitting sales
The Suez Canal has seen two tankers with around 1.5 million barrels each of Russian Urals crude drop anchor in the sea. This is an indication of the difficulties Moscow faces selling oil following the tightening of Western sanctions last month. According to tracking data provided by LSEG, OilX and LSEG, the vessels Sikar and Monte 1 both carried oil from Russia’s Baltic port Primorsk at the beginning of October. They have remained anchored for more than a week near this canal. The United States, along with the European Union, have tightened sanctions on Russia's oil industry in an effort to force Moscow into peace talks over Ukraine. For the first time, U.S. sanctions have been taken against Russia's largest oil companies, Rosneft, and Lukoil. The two companies together account for around 5% global oil supply. Due to this, Russian crude oil is now trading at the steepest discount compared to Brent in Asia for over a year. Indian and Chinese refiners are reportedly cutting their purchases. OilX and LSEG report that the Sikar, a vessel which was loaded on October 6, stopped at the Mediterranean entrance to the Suez Canal in October 24. It has been anchored ever since. Port Said is listed as its destination. According to LSEG the Monte 1, which was loaded on October 7, passed through the canal and is anchored at the Red Sea on October 30. The oil that was carried by the ship could not be identified. Both tankers are flagged Gambia. Glory Shipping HK Ltd manages the Sikar, while Mariam Ship Management Service operates Monte 1. I was unable contact either ship manager to get a comment. These vessels' anchorage demonstrates the increasing logistical and economic strains on Russian oil exports as sanctions deter buyers and complicate shipping routes. Reporting by MOSCOW reporters, with additional reporting from Siyi Liu and Nerijus Adomiaitis in SINGAPORE. Editing by Peter Graff.
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The Russian manufacturer of railcars and tanks has announced a restructuring plan to reduce costs
The giant Russian railcar and tank manufacturer Uralvagonzavod said Friday that it would be restructuring its operations in order to reduce costs. A local report had stated the company planned to cut its workforce by 10%. The Uralvagonzavod plant, located in Nizhny Tagil about 1,400 km east of Moscow in Nizhny Tagil, has been sanctioned for its role in providing tanks to Moscow's Ukraine war. The factory is owned by a state-controlled conglomerate that has ties to one of Vladimir Putin's closest allies. It claims publicly to produce T-90M battle tank and modernise T-72B3M. Local news outlet E1 reported on Friday, citing an internal document that UVZ planned cuts of up to 10% in staff across departments by February next year. They also said they would stop hiring new employees. In a response to questions about the report, UVZ issued a press release that read: "UVZ, like every other company, is undergoing a restructuring process, which aims to optimise administrative and management costs." UVZ said it continued to work at "high intensity" in order to fulfill a state defense order. The hiring of new employees continued. The company has been forced to reduce the number of days that some employees work to four last month due to the steep drop in the cargo volume as a result of disruptions to exports. Sources and companies say that Russia's largest industrial companies are furloughing employees or reducing staff due to the slowdown in the war economy, stagnant domestic demand, and dry exports. (Reporting and editing by Andrew Osborn; Gleb Stolyarov)
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Exxon to supply 500,000 tonnes of LNG to India's Petronet LNG by 2026
Petronet LNG, India's largest gas importer, will receive 500,000 tonnes of LNG in 2026 as part of its 1.2 million tons per year supply agreement with ExxonMobil under Australia's Gorgon Project. This was announced by its managing director on Friday. Petronet imports 1,42 million tonnes of LNG per year from the Gorgon Project, in which ExxonMobil holds a stake. This is part of a long-term agreement with the U.S. energy giant. A.K. Singh, the Managing Director, said that the first cargo, under a new 15-year contract, agreed upon in 2017, should arrive between March andApril next year. Singh said at a press briefing. Singh stated that ExxonMobil would deliver eight cargoes worth of goods to Petronet by 2026. Singh said that the volume will gradually increase to 20 cargoes per year over a period of three years, which is equivalent to 1.2 millions tons. Singh predicted that global LNG prices may hover between $11 and $12 per million British Thermal Units if winters are harsh, but he expects the prices to fall in 2026 when more LNG is available globally. Indian companies invest in their gas infrastructure, as the country strives to increase the natural gas share in its energy mix from 6.2% to 15% by 2030. Singh stated that Petronet will complete its expansion of the Dahej LNG Import Terminal in Western India to a capacity of 22.5 million tonnes per annum by March 2026. It also operates a 5 million-ton-per-year LNG terminal at Kochi in southern India and is building a new 4-million-ton-per-year plant at Gopalpur in easter Odisha state.
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Asia spot prices flat on ample supply, soft demand
The Asian spot price of liquefied gas was flat this week due to ample supplies and a soft demand. Average LNG price for delivery to northeast Asia in December Industry sources estimate that the price per million British Thermal Units (mmBtu) is $11.10. Martin Senior, head LNG pricing at Argus said that the spot demand in Northeast Asia was weak. There were ample inventories, and forecasts did not deviate too much from seasonal averages. He said that "Spot charter prices have continued to increase, which is the primary reason behind the wider spread between Asian-European prices. Asian prices must hold a higher premium in order to continue to attract the same flows." Senior added that the tightness in the market is only temporary, as forward charter rates for January are less than half the current spot price. Toby Copson is managing partner of Davenport Energy Partners. He said that the market was also well-supplied for now, as cyclical heating demands in China, the top importer, have yet to appear and marginal demand has been absorbed by pipeline flows. The Situation in Europe In Europe, S&P Global Commodity Insights set its daily Northwest Europe LNG Marker benchmark price for cargoes to be delivered in December, on a ship-to-ship basis, at $10.138/mmBtu, on November 6. This is a $0.54/mmBtu reduction from the December price at TTF's Dutch hub. Prices were rangebound throughout the week due to healthy supplies, ample storage and a muted demand. Spark Commodities determined the price to be $10.129/mmBtu. Argus set it at $10.17/mmBtu. Gas inventories in Europe are still around 83% due to the weather, but LNG imports remain high, said Siamak Adibi. He is director of gas and LNG supply analysis at consultancy FGE. Seb Kennedy, an independent gas analyst, said that hedge fund managers were shorting TTF contracts hard as the bearish pressure on benchmark EU gas futures was increasing. US LNG LOADINGS AT NEW HIGH Siamak said that on the supply side U.S. LNG loads have reached new record highs while new projects ramp up smoothly. He was referring to recent projects such as the start-ups of Train 2 at LNG Canada and Golden Pass, Texas, early next year. The U.S. front month arbitrage for Northeast Asia via Cape of Good Hope is still closed and points to Europe rather than Asia this week, said Spark Commodities analyst Qasim Afghan. However, arbitrage via Panama is still open. He added that LNG freight rates have risen to new highs of $68,000/day in the Atlantic and $44,500/day in the Pacific, both year-to date highs. (Reporting and editing by Mark Potter.)
Two Russian oil tankers drop anchor in the sea as a sign that sanctions are hitting sales
The Suez Canal has seen two tankers with around 1.5 million barrels each of Russian Urals crude drop anchor in the sea. This is an indication of the difficulties Moscow faces selling oil following the tightening of Western sanctions last month.
According to tracking data provided by LSEG, OilX and LSEG, the vessels Sikar and Monte 1 both carried oil from Russia’s Baltic port Primorsk at the beginning of October. They have remained anchored for more than a week near this canal.
The United States, along with the European Union, have tightened sanctions on Russia's oil industry in an effort to force Moscow into peace talks over Ukraine.
For the first time, U.S. sanctions have been taken against Russia's largest oil companies, Rosneft, and Lukoil. The two companies together account for about 5% of the global oil supply. Due to this, Russian crude oil is now trading at the steepest discount compared to Brent in Asia for over a year. Indian and Chinese refiners are reportedly cutting their purchases.
OilX and LSEG report that the Sikar, which was loaded on October 6, stopped near the entrance to the Suez Canal in the Mediterranean on October 24 and has remained anchored since. Port Said is listed as its destination.
According to LSEG the Monte 1, which was loaded on October 7, passed through the canal and is anchored at the Red Sea on October 30.
The oil that was carried by the ship could not be identified.
Both tankers are flagged Gambia. Glory Shipping HK Ltd manages the Sikar, while Mariam Ship Management Service operates Monte 1. I was unable contact either ship manager to get a comment.
These vessels' anchorage demonstrates the increasing logistical and economic strains on Russian oil exports as sanctions deter buyers and complicate shipping routes. Reporting by MOSCOW reporters, with additional reporting from Siyi Liu and Nerijus Adomiaitis in SINGAPORE. Editing by Peter Graff.
(source: Reuters)