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Australians are advised to stick to Easter travel despite the fact that hundreds of petrol stations are dry
The fuel shortage in Australia was exacerbated by the Iran war, which left hundreds of petrol stations, mostly rural, without power on Saturday. Chris Bowen, Energy Minister, said on tv that Easter is a time of family and faith. "We encourage everyone to stick to their plans, visit your family and take a vacation, but don't buy more fuel than they need." Australia, which imports about 90% of its fuels, is experiencing localised shortages due to the Middle East conflict, which began its sixth week this Saturday. Some have cancelled their travel plans due to the escalating Middle East conflict. The long holiday weekend is one of Australia's most popular travel times. Bowen said that the nation is able to supply 39 days worth of petrol and 29 days worth of diesel, as well as 30 days worth of jet fuel. Bowen stated that the majority of affected stations were located in rural areas because it was more difficult to replenish the fuel stocks. In a rare speech to the nation this week, Prime Minister Anthony Albanese warned that the economic'shocks' of the Middle East war would last for many months. He also encouraged people to use public transportation. (Reporting from Sydney by Sam McKeith; Editing by William Mallard).
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Official: Ukraine's attack on Zaporizhzhia cuts off power in parts of the region held by Russia
A Ukrainian military attack on Friday cut off power to Russian-held areas of the Zaporizhzhia region. Emergency crews are working to restore it. There are power outages at some locations in the southern part Zaporizhzhia Region. Yevgeny Belitsky, Russia's appointed governor of Russian controlled areas in?the region said on Telegram that repair work was underway to restore the power. The outages are due to an enemy attack on the energy infrastructure of the?region. Ukrainian media outlets posted video clips showing what they claimed was an attack on an underground substation in Melitopol. The footage showed a large fireball rising over an industrial area. Zaporizhzhia was one of the four Ukrainian'regions' that Moscow annexed by 2022. This happened seven months after its full-scale invasion against its smaller neighbor. Russian forces control just a little more than 70% of the two southern regions Zaporizhzhia, and Kherson. Ukrainian officials claim that Kyiv has retaken some of the regions in recent weeks. Reporting by Ron Popeski, Oleksandr Kozoukhar and Mark Porter
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Sources: Russian oil terminals attacked by terrorists unable to receive shipments for a second week
According to industry sources, Russia's Baltic oil hubs in Ust-Luga, and Primorsk, are unable to process shipments after a series Ukrainian drone attacks. This has prompted the country's refineries?to 'find alternative routes' for 'export'. At least five attacks on Ust-Luga occurred in a span of 10 days, causing damage to the port infrastructure. Sources claim that the restrictions on exports, as well as disruptions in large refineries, could lead to a drop in oil production in Russia. Since March 22, traders said that refineries have been unable?to deliver diesel fuel for export to Primorsk,?leaving them without their most viable export route. One industry source said that diesel fuel hasn't been accepted at Primorsk since the 22nd of March. They have promised to resume receiving deliveries to the system. Refiners are forced to use more expensive rail routes to reach other export terminals, according traders. In the last week, refineries that normally deliver fuel oil to Ust-Luga considered shipping their shipments to 'Vysotsk' further north on the Gulf of Finland coast or to Taman along the Black Sea Coast. Vysotsk, say?traders, has a lower?handling capability and shipping to Taman requires a larger number of rail cars. This week, Finnish maritime officials said that the number of vessels shipping from?Primorsk or Ust-Luga was down sharply to just "individual ships" as opposed to a weekly average between 40 and 50. Mark Porter (Reporting)
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Sweden releases oil tanker suspected to be source of oil spill
The Swedish Coast Guard announced on Friday that they had released an oil tanker, believed to be a part of the Russian shadow fleet. They suspect this is what caused a 12 km long oil spill near the island of Gotland. The tanker was believed to be a part of a fleet shadow tankers which Moscow used to fund their four-year conflict against Ukraine. Sweden and other European nations have intensified their efforts to disrupt this fleet. Russia has branded these actions as hostile. Swedish Coast Guard reported that the tanker Flora 1 was captured off Sweden's southern coast. The tanker had been seized by the Swedish Coast Guard off Sweden's?southern coast. MarineTraffic data shows that a ship departed from Primorsk, Russia with an unknown destination. The coast guard has said that the oil spill will not reach shore. The Swedish Prosecution Authority stated that it had interrogated two crew members and informed them of suspicions of environmental crimes. The individuals had not been arrested. The Prosecution Authority stated that "the spill occurred in Sweden's Economic Zone, meaning the investigative actions we can take are limited." We have done the necessary interviews and will not be taking any coercive action 'due to the suspected crime. The authority announced that it had begun?an investigation?into a possible environmental crime. The authority said that it believed the vessel was listed on the EU sanctions, and added?that the flag status of the vessel is unclear. The 'Russian shadow fleet', which consists of old, poorly-insured tankers that evade the sanctions, is a serious security and environmental concern, said Carl-Oskar Bohlin, Swedish Minister for Civil Defence, on X. He specifically mentioned the?Flora 1 as part of his remarks. The government takes the incident very seriously, even if it's not a major spill.
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Ethiopia announces resolution of debt with China
Ethiopia's Finance Ministry announced on Friday that it had reached an agreement on debt treatment with China, reaffirming both nations' commitment to progress within the G20 Common Framework in order to formalise bilateral deals. Ethiopia is facing mounting legal challenges as bondholders plan to sue the Government following the resistance of bilateral creditors to a preliminary agreement to restructure Ethiopia's $1 billion Eurobond. Ethiopia could be unable to emerge from default on its external debt due to the dispute. In a Facebook post, the finance ministry stated that a resolution was reached at a meeting held in China between?Ethiopian finance ministers and Chinese finance minsters. The discussions included "debt restructure, implementation of existing projects, and financing opportunities" as well as plans to develop a new Bushoftu International Airport. The statement said that the two sides had reached an agreement on debt treatment, and had reaffirmed their commitment?to work constructively within the G20 Common Framework parameters towards signing the?bilateral deal. Ethiopia announced that in 2021 it would restructure its debts under the G20 initiative after its finances had been severely affected by COVID-19 pandemic. The East African nation defaulted in 2023 on its $1 billion Eurobond due to a missed coupon payment of $33 million. Reporting by Nairobi Newsroom; Writing by Elias Biryabarema, Editing by Bate Fels)
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Trump wants to privatize US airport security operations
On 'Friday, President Donald Trump proposed that the Transportation Security Administration, the federal agency created in the wake of 'the September 11, 2001 attacks, begin the process of privatizing the airport security operations. The White House budget proposes to cut the TSA budget of $52 million. Small airports would be required to enroll in a TSA-funded program that pays for private screeners. TSA employs?about 50 000 federal employees to handle screening in nearly all U.S. Airports. Budget documents stated that airports using the program had shown savings when compared with?federal screen operations. Major U.S. Airports have been experiencing massive disruptions in recent weeks after Transportation Security Administration (TSA) security?officers were not paid since mid-February due to a budget dispute. Trump has not nominated anyone to replace David Pekoske as the Transportation Security Administration's head. He fired him on his first official day and never appointed a successor. The White House demanded funding cuts for the TSA of $247 million last year. They claimed that the TSA had consistently failed audits and implemented intrusive screening methods that violate Americans' dignity and privacy. This budget cut represents a 3-4% reduction in?TSA personnel levels, with the majority of the staff being located at the exit lanes. The remaining 2% is for transportation security officers who are spread out across 435 airports. As air travel has increased in recent years, the Biden administration has increased the size and staff of the TSA. It now has more than 60,000 employees. The TSA screened 904 millions passengers in 2024. This was a record and a 5% rise over 2023.
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United Airlines introduces tiered fares for premium cabins
United Airlines announced on Friday its plans to "introduce" a new tier-based fare structure in premium cabins this year. United announced that it would offer base, standard, and flexible fare options in the premium cabins of its long-haul international flights, transcontinental U.S. flights, and selected Hawaii flights. These fares will join United's existing basic, flexible, and standard fares for economy cabins. According to the new tier fare structure, customers can choose from a range of benefits, including free seating and extra checked baggage, in the standard category. Tickets in the flexible category, however, are fully refundable, and include all the same benefits as standard tickets. United Airlines announced last month a "broad aircraft and interior overhaul" centered on premium seating. The airline is pushing forward with its long-term plan, despite warnings that oil prices could remain above $100 per barrel until 2027. It also revealed plans to reduce some flights. Since the COVID outbreak, big U.S. airlines have built their business around corporate accounts, loyalty-program participants, and premium travelers. They bet that these customers will be slower to pull back on fares when they rise. United Airlines said that it would launch the new categories this month in certain markets and expand them to include additional long-haul flights, transcontinental U.S. flights and longer Hawaii routes later this year. Andrew Nocella said that the new tiered options would give customers greater choice, and allow them to find a fare with the benefits they desire - whether it's great value, extra perks or maximum flexibility. (Reporting and editing by Alison Williams in Bengaluru, Sneha S. K. in Bengaluru)
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Canadian Finance Minister discusses supply chain integrity at meeting in China
The Canadian finance minister stated on Friday that he had discussed supply chain integrity with his counterparts in China during a meeting aimed at boosting trade. Ottawa is under scrutiny from the United States over its labour laws. The Finance Minister Francois Philippe Champagne told reporters the meeting was primarily focused on the financial sector, but also included trade in energy and pork. Canada is working to increase its overall exports to China by 50% by 2030. Champagne stated that "Canada places a high priority on the 'integrity of supply chains' and that our trade should be conducted according to 'international standards. The U.S. Trade Representative's Office announced in March that it had launched a second round of Section 301 unfair trading practice investigations of 60 economies including Canada. This was due to the failure to act on what they called forced labor. China is Canada's second-largest trading partner, with bilateral trade worth C$120 billion (US$86.1 billion). According to the official Chinese summary of Champagne's Friday meeting with Vice Premier He Lifeng, the two have agreed to hold a high-level financial and economic dialogue in the second part of this year. Champagne said that Stellantis had not been in contact with the automotive sector, despite reports that they were discussing building 'electric vehicles' in Canada with Zhejiang?Leapmotor Technology. ($1 = 1.3934 Canadian dollars)
Commodity markets and China's new five-year plan
China's annual parliamentary session, which begins on Thursday, will see the unveiling of its five-year plan, which outlines Beijing's economic ambitions and sectors that are slated for funding and policy assistance.
Although specific details of implementation are rarely provided, the document is a guide to policy-making and gives an indication of how the world’s largest consumer will steer its economy.
What to look for when buying commodities
CLIMATE AND POWER
Climate activists hope that the plan will tighten controls on China's total carbon emissions. Beijing has promised to reach a peak in 2030, but without specifying what level.
Analysts say that the massive rollout of renewable energy will continue. However, they are focusing on transmission lines and green consumption targets in order to integrate energy better into the grid, and to stop energy curtailment.
The plan is not expected to be a strong opponent of coal-fired power generation. In fact, the shortage of electricity in 2021 will likely lead to record building under the current plan.
In a research report, MERICS analyst Johanna Krebs said that Beijing may not be willing to pay the political price of destroying an entire industry at a time when a 'large part' of China is financially struggling.
The level of investment in alternative fuels such as green hydrogen and sustainable aviation fuel, that China continues to make despite the pullbacks elsewhere, is also a focus.
OIL AND GAS
After a seven-year effort to reverse the decline in oil production, domestic production reached a record level last year. The next five-year plans may indicate how Beijing intends to react as output is set to reach a new peak soon.
Beijing will also be able to gauge how it feels about the upcoming peak in oil consumption. In December, the National Energy Administration stated that China should 'push for a peak' in its upcoming five-year plan.
Researchers at Sinopec's and CNPC's think tanks predict that natural gas will continue to be a top priority. They expect a growth rate of 5% per year on average over the next five-year plan.
CRITICAL MINERALS
China used its control of rare earths to negotiate a truce in the trade war with the U.S. Rare earths are mentioned only once in the current five-year plan. However, as Washington and its allies move to build alternative supply chain, keep an eye out for China's reaction.
The focus will also be on domestic production and stockpiling. China announced a new push for both in proposals released last October. In February there was a rare announcement that copper would be studied as a system of commercial stockpiling.
It is possible that China will also implement new policies in relation to the huge scrap market. In late 2024, the country may create a state-backed group for the purpose of consolidating the sector.
Overcapacity
This year's "fanneijuan" or anti-involution plan will help officials tackle overcapacity in industries from pork to steel.
Look for stricter rules regarding new or replacement capacities in 'China's giant industry of steel. This could include tying production with carbon emissions.
Over the last year, there has been talk about copper smelters?and refiners as well. Watch for signs that policymakers are planning to do more.
FOOD SECURITY
China is a country with many mouths to satisfy, but an agricultural sector that lacks the technological sophistication and scale of the United States or Brazil. Even Pay, director of policy research group Trivium China, says that more efforts will be made to change this.
A special focus will be on the future of genetically modified crops. Despite being discussed for years in China, GM crops haven't been widely adopted due to high prices and consumer and farmer resistance.
Analysts are also watching for signs of initiatives that will help China reduce its vulnerability to imported grains and soybeans, either by reducing the use of these grains in animal feeds or diversifying their import sources. Reporting by Lewis Jackson in Beijing, Amy Lv in Shanghai, Sam Li in Beijing, Daphne Zhang in Beijing, and Colleen Waye in Beijing; editing by Sonali Paul.
(source: Reuters)