Latest News
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Sources say that Iraq has suspended Iranian flights from Baghdad due to US sanctions threats
Two sources said that Iraq had ordered its civil aviation authority to suspend Iranian flights to Baghdad Airport starting on Wednesday. This was after the United States threatened to sanction any airport which services Iranian carriers. US Treasury Secretary Scott Bessent announced on Monday that secondary sanctions against air?services companies would shut down all Iranian airlines on September 23, seven months after the start of the war between Iran and the United States. Two sources with knowledge of the situation said that the Iraqi government was considering diverting Iranian Airways flights from Baghdad airport to Najaf. Two sources familiar with the matter said they spoke on condition of anonymity due to the sensitive nature of the issue. The suspension of flights will start at midnight on Wednesday. Iranian news agency Tasnim reported earlier, citing Iranian Civil Aviation Organization that flights between Tehran and Baghdad, Muscat, and other international destinations will be canceled beginning Wednesday. All?remaining flights, including Istanbul, will continue to operate as scheduled. A spokesperson for Iran’s Civil Aviation Organization said that Iranian travelers were not being admitted at the Oman airport. Consultations are ongoing regarding this matter. Bessent said to CNBC that if Iranian?airlines land in an airport "you can't provide them with fuel or landing services. You also can't sell them tickets. Or you will be kicked out of the Dollar system."
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US wants to spend another $30 billion on aviation systems
Sean Duffy, the US Transportation Secretary, said that he would ask Congress for another $30 billion to upgrade airport facilities and air traffic control towers. Duffy, who has sought billions of dollars more and demanded another $10 billion on Tuesday for airports, is adamant that Congress approves $12.5 billion over five-years in June 2025. Duffy, in a speech delivered in Washington, said: "We're going to ask Congress for 30 billion dollars." "We need to consider how the country has evolved and what the needs are at airports." A major 'telecom failure' on Monday paralyzed the traffic along the east coast for several hours, and disrupted thousands flights. Around $10 billion in funding is being sought to replace old air traffic towers, and another $10 billion for telecom systems and other technology used for air navigation control. The FAA has begun using a new software system that utilizes predictive analytics in order to improve the management of flights. Last week, a government report?said that Congress?needs more money to complete the first phase of air traffic control?program. It also said that the FAA?needs a?better estimate?of how much it will cost to run the new system. According to the report, the cost of telecommunications upgrades jumped from $4.75 billion to $5.91 trillion. FAA Administrator Bryan Bedford stated that outdated copper wires for telecoms should be replaced by September 2027.
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Trump arch drone plan needs FAA review, lawmaker says
A Democratic lawmaker stated on Tuesday that the Federal Aviation Administration would need to perform a safety analysis of President Donald Trump's plans to base military drones near his proposed triumphal arch, which is located near a Washington airport. Don Beyer, a US Representative from Virginia, said that Trump's plan for a large number drones to be placed at 76-meter arch (250-foot) near Reagan Washington National Airport could threaten aviation safety. He described the idea as "stupid and dangerous." Trump said on Sunday, at the request from the military that he would turn the arch into a complex military capable of deploying drones or positioning snipers. Last week, the FAA declared the structure safe for aircraft operations. However, this review did not include drone operations. The FAA did not comment immediately on Tuesday. It said last week that the arch wouldn't?pose any danger to aircraft, as long as it is topped by an "eternal fire." According to the FAA's decision last week, the arch must be marked by a floodlight projected onto it and a light placed on the top of the arch. This will make the arch visible to pilots. Aviation experts have raised safety concerns due to its proximity to airport's main departure and approach corridor. The arch is part a broader 'effort to remake Washington' by Trump, which includes renovating the Lincoln Memorial Reflecting Pool and redeveloping a?golf course?in East Potomac Park. He also wants to add his name to the John F. Kennedy Center for the Performing Arts. Preservationists say the projects will alter some of Washington's most prominent historic landmarks. Veterans have sued the government to stop the construction of the arch. They claim it will destroy the historic view between the Lincoln Memorial and the Arlington National Cemetery. The FAA has dropped a requirement for red obstruction lights that it had previously mandated on buildings over 200 feet (61 meters), such as the Washington Monument, which is 555 feet (169 meters) away from airports.
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Saudi Arabia denies purchasing oil tankers after Iraq accuses it of higher shipping costs
Saudi Arabia denied Iraqi claims that it had purchased 25 oil tankers. It said the information was incorrect, after Iraq linked a sharp increase in the cost of shipping crude to the alleged purchases. Basim Mohammed, Iraq's Oil Minister, told a session of the parliament that Saudi Arabia purchased 25 oil tankers for an estimated $4.5billion. He said these purchases had led to a sharp rise in the cost?of transporting Iraqi crude oil. On Monday, his remarks were posted by an Iraqi media outlet to Facebook. Mohammed claimed that transport costs had risen from 26 dollars per barrel to 37 dollars per barrel. Saudi Arabia and Iraq are two of the largest oil producers in the Organization for the Petroleum Exporting Countries. Rarely is there a public disagreement between their energy ministers. Saudi Arabia's Energy Ministry said in a statement that it did not purchase the tankers. It attributed the increase in oil transportation costs to a number of factors, such as regional military conflict, and disruptions to navigation through the Strait of Hormuz. The company said that these conditions had driven shipping costs to "exceptional" levels in the region. The dispute comes as the attacks on Saudi cities and energy infrastructure continue, raising concerns about global oil supply and threatening to disrupt the Red Sea - a major alternative export route for Gulf producers - while traffic through Strait of Hormuz is still disrupted. Iraq is one of the most affected countries by the closing?of this strategic waterway. Traffic through the strait is well below pre-conflict numbers and vessels are still facing attacks.
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Saudi Aramco is planning a reorganisation that will create a gas division, according to sources.
Two?sources who are familiar with the matter said that the Saudi?oil company Aramco is planning to reorganise their business in order to create a gas division, with the intention of listing business units to raise capital. This is consistent with the existing strategy of Gulf oil companies to 'offer outside investors pieces of their business while maintaining operational control, and largely avoid opening up their main oil producing divisions. ADNOC, the state oil company of the United Arab Emirates (UAE), has listed stakes in its gas, drilling, and retail fuel businesses. Aramco has a public listing, but it also lists subsidiaries like the petrochemicals company SABIC. Both ADNOC as well as Aramco have raised billions from infrastructure assets like oil and gas pipelines. Aramco has declined to comment. The new gas business will allow Aramco a platform to develop their natural gas resources in the domestic market and to build a portfolio of liquefied natural gas (LNG). Aramco has been seeking outside capital to help support the Kingdom's efforts to reduce its dependence on oil.
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US: New air traffic control system won't cause disruptions
U.S. Secretary of Transportation Sean 'Duffy announced on Tuesday that the US government is working to develop a modern and resilient air traffic control system. This will prevent massive outages in telecoms like those that disrupted thousands flights this week. This won't be happening in the future, thanks to the new architecture. There will be no single point of failure or double points. Duffy said on Fox News' "Fox and Friends" that there are multiple ways to bring telecom into our facilities. About 9,500 flights were delayed or canceled on Monday due to a failure of a telecom switch and an accidentally cut fiber optic cable. Flights were delayed or cancelled after a failure of a telecommunication switch and an accidentally cut fiber-optic cable. The Federal Aviation Administration had to stop flights to New York, Philadelphia Boston, and Washington for several hours. The operations were mostly normal on Tuesday. Over 600 flights were cancelled Monday at 'Newark Liberty. That is more than half of the flights. The airport is a major hub for United Airlines. As of 10:30 am, about 60 flights were canceled and 70 more delayed. The incident showed the fragility and age of the US air traffic system. Congress allocated $12.5 billion last year for upgrades. A government report released last week revealed that the cost of telecommunications upgrade has increased from $4.75 billion up to $5.91billion. FAA Administrator Bryan Bedford stated that outdated copper wires in the telecom industry should be replaced completely by September 2027. Around 9:45 am on Monday, a telecommunications line used by the FAA was accidentally cut in New Jersey. The issue began around 9:45 a.m. Monday when?workers accidentally cut a telecom line in New Jersey used by?the FAA. The FAA halted arrivals at the three main airports of New York, as well as?Philadelphia, Washington Reagan and Boston?and?two smaller airports?in the?New York region. It took eight hours to resolve the problems. This issue forced more than 100 flights from one airport to be diverted to another.
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Sources say that traders are pushing for lower prices for Venezuelan crude oil, as shipping costs have risen.
Five sources familiar with the matter said that global oil trading firms Vitol & Trafigura want steeper discounts on Venezuelan crude as rising freight rates are reducing their margins. Since the US captured Nicolas Maduro, the then president of Venezuela in January, and began to push to reactivate Venezuela's oil industry. The US has imposed severe sanctions on Venezuela's energy sector until recently, but the current negotiations for lower prices show the difficulties of operating in this volatile sector. The Merey heavy grade, the nation's most popular crude oil, has recovered from the steep discounts that were forced on it by sanctions up until 2025. As more traders and buyers enter the market, punishment clauses such as "imposing additional fees for loading tankers in countries with high security risks" have also disappeared from contracts. The return of large vessel owners has also helped to bring prices up to market standards. The recovery of the oil industry is under threat as the cost of transporting oil by tankers has reached record levels in recent weeks, following the 'largest wave of attacks against shipping since the US/Iran war began late February. One source said that the state oil company PDVSA recently agreed to prices between $12 and $13 per barrel below Brent with some joint venture partners. These partners were then forced to sell the crude at a discount of $16 to the benchmark due to market conditions. In an effort to increase cash flow and profits, the state-owned company recently attempted to sell more crude oil directly to refineries. Sources say that Trafigura, Vitol, and other companies are bidding 18 to 20 dollars below Brent on cargoes headed for the US and Europe. They claim to be doing this to cover the rising costs of freight, and to put further pressure on PDVSA. Venezuela informed OPEC that the formula price of Merey (or maximum it could fetch if market conditions were met) increased from $67.36 a barrel to $76.82 a barrel in August, up from $67.36. This was about $14 less than Brent. PDVSA didn't immediately respond to requests for comment. Vitol, Trafigura and other companies declined to comment. SURGE FREIGHT According to Signal Maritime, chartering an Aframax, which can 'carry around 700,000 barrels crude oil, from the Venezuelan Port of Jose to US Gulf Coast costs $3.5 million or $5 per barrel. This is up from $1.35million or $1.90per barrel at the'start of the year. "Freight is an issue of great importance." A trading source stated that refining companies don't want to pay the current price. Venezuela's oil output remained virtually unchanged at 1,17 million barrels of crude per day in August as its terminals struggled with larger volumes. Vitol, Trafigura and other companies?managed? to maintain their export volumes at?597,000bpd compared with 604,000bpd during July. The number of tankers waiting to be loaded and the average time they take to do so are at their highest levels since January, which could pose a roadblock to the US plan for boosting the South American nation's oil exports quickly.
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Murmansk, a Russian Arctic port, will start shipping grain using fertiliser equipment
The Black Sea route is still closed because of Ukrainian drone attacks, so Russia's Arctic Port Murmansk uses equipment that is typically used to load fertiliser. It could ship its first grain to the Black Sea as soon as next month. Murmansk, which is much farther away from Ukraine than Russia’s Baltic ports, can only be reached by neutral waters. Reports on Monday stated that Russian companies are repurposing terminals for fertiliser, coal, and other cargo at Baltic and Arctic port, Murmansk included, to handle grain exports. Murmansk Commercial Port, located 2,700 km (1 677 miles) away from Novorossiysk - Russia's major grain export 'gateway' - announced on Tuesday that it will use a system of direct transfer, which moves cargo directly from railcars into the'ships' hold, a method usually used for potash imports. The port said it had also adapted its conveyor systems in order to handle higher grain volumes. Modern grain terminals like those in Novorossiysk use storage elevators to give operators more flexibility. The dependence on direct transfers in repurposed terminals underscores the urgent need to restore export flows. In a recent statement, Andrei Riznichenko, director of Murmansk Port Operations said that it was important for the country's economy that Russian producers had several reliable options when it came to export logistics. Murmansk is Russia's 4th largest port. It has a?handling capability of up to 24 million tons per year, but it has never handled grain before. Analysts predict that Russian grain exports will halve between July and September due to the closure of Black Sea ports and the Sea of Azov. The?disruption of exports has led to a?decrease in domestic?grain?prices and a?build-up of unsold stock. The Kremlin announced on Tuesday that Russia is looking for alternative routes to export grain.
Sources say that Novatek, a Russian company, offers deep discounts on LNG sanctioned to Chinese buyers.
Sources familiar with the matter say that Novatek, a Russian producer of liquefied natural gases, has reduced the price of its cargoes between 30% and 40% since August in order to encourage Chinese buyers to buy sanctioned gas produced by its Arctic LNG 2 Project.
The purchase has ended the commercial limbo of the $21 billion project that is subject to the most severe sanctions the U.S., Europe and Russia have imposed against Russia.
Washington wants to stop the flow of oil revenue into Kremlin bank accounts as U.S. president Donald Trump increases pressure on Moscow to end their war in Ukraine. The White House also threatens to take action against countries who continue to purchase Russian energy exports.
But China, which has been a close ally to Russian President Vladimir Putin for many years, is opposed to Western sanctions.
It could be difficult to crack down on Chinese companies that violate them. Washington struck a delicate ceasefire in its trade dispute with Beijing only last month. A senior industry source stated that enforcing these measures could undermine U.S. plans to do its own LNG deals.
DEEP DISCOUNTS DRAW CHINESE BUYERS TO PUTIN'S LINKED PROJECT
Novatek, a company co-owned with some of Putin's closest ally, began producing LNG in the plant as early as December 2023. It failed to sell any cargos until August of this year when it cut prices for Chinese buyers.
According to a source familiar with the transaction, the gas producer sold the first cargo delivered on 28 August at a discount between $3 and $4 from the Asian LNG benchmark price of $11 per mmBtu.
A second source familiarized with the deals stated that Chinese buyers continue to receive steep discounts between 30% and 40% for subsequent deliveries.
This means that cargoes sell for $28 to $32 millions, which is well below the market value of $44 million.
Prices of the cargoes were not previously disclosed. The names of the Chinese firms that purchased them have not been revealed.
Novatek has not responded to a comment request.
WASHINGTON IS NOT ENFORCING THE SANCTIONS IT HAS IMPLIED
Many of the oil and gas produced by Moscow are not directly affected by Western sanctions. China is Moscow's largest buyer of energy exports.
Joe Biden's predecessor, Trump, had imposed sanctions against Arctic LNG 2 and related entities, as well as vessels, shortly after the company began operating in December 2023.
TotalEnergies, the French partner, subsequently pulled out of the project. However, two of China's biggest energy companies - China National Petroleum Corp. and China National Offshore Oil Corporation each retained a 10% stake.
The sanctions have also stymied Russian hopes to acquire a fleet Arc7 ice class tankers for year-round deliveries.
According to traders, until August, Novatek spent millions of dollars on storage units and floating cargoes.
Trump has made the end of the conflict in Ukraine his top foreign policy priority. To pressure Moscow into negotiations, Trump has increased U.S. sanctions against Russian energy. He also urged allies to do so. And he threatened countries that buy Russian exports such as India with steep tariffs.
Washington has so far not taken any action to punish Chinese companies involved in Arctic LNG 2 purchases.
They are pressing their allies not to import Russian LNG or gas. They are not implementing sanctions on Arctic LNG 2," Anne-Sophie Corbeau said, a researcher with Columbia University's Center on Global Energy Policy.
The White House didn't respond to an inquiry asking whether the administration was worried about the LNG purchases, and if any efforts were being made to discourage or stop the transactions.
The two senior sources in the industry said that the Chinese government had approved the purchase. The Chinese business registration portal shows that the Beihai LNG Terminal, in southern China, where the cargoes will be delivered, is operated by the state-owned energy infrastructure giant PipeChina.
The office of the spokesperson for the Foreign Ministry did not comment directly when asked if China gave any guidance on the imports, or if they were concerned that Washington could impose sanctions against PipeChina, who runs the majority of the country's infrastructure in oil and gas. However, they reiterated China’s opposition to unilateral sanction and "long arm jurisdiction".
The spokesperson's office stated that "energy cooperation between China and Russia" is a normal economic and commercial cooperation benefiting both countries.
BEIHAI BECOMES CHINA’S DEDICATED RUSSIAN IMPORT TERMINAL
Beihai was a mid-sized gas terminal that had previously been used to import LNG from various companies and sources, including eight cargoes of U.S. Liquefied Natural Gas in 2024.
A third Chinese source with direct knowledge on the issue said that since August, PipeChina refused to allow other companies to access Beihai. This has effectively turned into a dedicated entry for Russian gas.
In October, the UK government imposed sanctions against Beihai.
PipeChina has not responded to any requests for comment.
Trump has also expressed his desire to sell LNG to China. He has done this repeatedly, integrating American energy exports in trade agreements with partners who are seeking to lower U.S. tariffs.
Western energy executives who sell gas to China said that the United States would have a hard time sanctioning PipeChina because it would also block U.S. sales.
Due to the tariffs that were imposed in the trade war between two of the largest economies, China hasn't imported any U.S. LNG from February.
(source: Reuters)