Latest News
-
Buyer interest in Russian Oil is up in Asia but prices are stable, traders say
Five traders said that concerns about Middle Eastern oil supply are causing buyers to be more interested in Russian oil. However, prices haven't yet responded. Analysts and traders said that disruptions to the flow of oil through the Strait of Hormuz, at the southern tip of Gulf, have led to a tightening of Middle Eastern grades. Two traders and a source in the industry report that Indian refiners are contacting Russian suppliers about March and April deliveries. Sources claim that Indian refiners have begun consulting the government on the possibility of "additional Russian exports". Chinese buyers also show interest in the product, despite recent purchases leaving them with a surplus. One trader stated that China "bought large quantities at low prices before the Lunar New Year so it could afford to wait until the outlook for the war in Iran became clearer." One trader said: "Buyers are expecting the conflict in Iran to be resolved'soon, and they are unwilling to pay more for Brent at its current levels." In recent months, China has taken in barrels that India had displaced, resulting in a multi-month increase of its seaborne purchase at deeply discounted rates, traders reported. According to the latest LSEG data, the discount for Russian Urals crude loaded from the port Primorsk, free on board (FOB), was $25-26 a barrel to dated Brent. This is in line with recent estimates. The discounts in Chinese and Indian port on a delivery-basis were also not much different from the levels before the start of conflict in Iran. China and India have been the largest buyers of Russian crude oil, although India has recently reduced its purchases under pressure from Washington. Indian imports are expected to drop sharply in April due to scheduled major maintenance at Nayara Energy, which is owned by Rosneft of Russia and a leading buyer. The traders reported that other Indian refiners are also planning to reduce their purchases, though the turmoil in the Middle East has forced a few to re-evaluate their plans. Interfax reported that Russian Deputy Prime Minister Alexander Novak stated on Wednesday Moscow was ready to increase oil supply to China and India. (Aizhu Chen and Siyi Liu in Singapore; Nidhh Verma in New Delhi, editing by Jason Neely.)
-
Swiss to fly from Oman in order to assist stranded Omanis
Swiss International Airlines announced on Wednesday that it will operate an Airbus A340 flight out of Oman on Thursday to assist stranded travelers return to Switzerland in the midst of the Middle East conflict. Swiss, an airline unit of Lufthansa said that those who would be on board were?people with Swiss tickets who are unable to travel?to Zurich because of the conflict as well as Swiss nationals registered in Oman by Swiss authorities. Swiss officials said that this measure was intended to give Swiss citizens the opportunity to return to their home country. According to the latest estimates of the Swiss Foreign Ministry, the conflict has left almost 5,000 Swiss travellers stranded in the region. Of these,?over 500 are in Oman. A Swiss spokesperson stated that around 200 seats will be available for passengers on the special flight departing Muscat on Thursday morning and heading to Zurich. The airline did not comment on whether additional flights were planned. The airline said that although the flight was carried out in coordination with the foreign ministry, it was not a subsidised evacuation but an independent Swiss operation. (Written by Dave Graham; Edited by Linda Pasquini & Matthias Williams)
-
Swiss to fly from Oman in order to assist stranded Omanis
Swiss International Airlines announced on Wednesday that it would be operating an Airbus A340 out of Oman on a Thursday to 'help stranded travellers return to Switzerland during the Middle East conflict. Swiss, a Lufthansa subsidiary, announced that those who would be on board were people with a Swiss ticket but unable to travel to Zurich because of the conflict. Also, Swiss nationals registered in Oman as their residence will also be allowed to board. Swiss stated that this measure was intended to give Swiss citizens the opportunity to return home. According to the latest estimates of the Swiss Foreign Ministry, the conflict has left almost 5,000 Swiss travellers stranded in the region. Of these, over 500 are in Oman. There was no indication of how many passengers were scheduled to be on a special flight leaving Muscat on Thursday morning for Zurich. Swiss said that while the flight had been carried out in coordination with the foreign ministry, it was not a subsidised evacuation. It was an independent operation. (Writing and editing by Dave Graham)
-
Data shows that Russia is diverting its naphtha away from Oman because of the Middle East crisis?
LSEG data and traders' reports indicate that Russia is diverting its naphtha from Oman to Singapore as it searches for new buyers. At least one tanker has now headed for Singapore. Iran's retaliatory?attacks on Gulf countries have caused disruptions in energy production, shipping and naphtha discharges. Since the European Union embargo against Russian oil products came into effect in February 2023 most Russian naphtha is being shipped to the Middle East and Asia. Middle Eastern countries also are the largest suppliers to Asia. The recent disruption has pushed Asia's naphtha price to four-year heights. According to LSEG, the Liberia flagged?tanker Amfitrion halted its navigation last week near the Gulf of Masira, and turned towards Singapore on Tuesday. Shipping data revealed that five middle-sized tanks carrying 180,000 metric tonnes of naphtha left Russian ports in January for a STS (ship to ship) berth offshore near Oman’s Shinas. Unknown is the 'final destination' of these cargoes. According to LSEG data and traders, Russia sent two cargoes containing 190,000 tonnes of naphtha to Oman’s Sohar in November-December, as?its?other markets?dried up. India and Taiwan used to be the two main Asian consumers of Russian naphtha. However, recent U.S. sanction have caused both countries to withdraw. The U.S. President Donald Trump ordered in December a blockade of all sanctioned oil tankers that enter or leave Venezuela. This has led to a 'zero' drop in exports to Venezuela this year. Although Asian buyers are facing a naphtha crisis, Western sanctions may force traders to avoid Russian cargoes. Market sources claim that the long journey from Russia's Baltic port to Asia prevents timely shipments. Reporting by Kirsten Donovan (Editing by Kirsten Doovan)
-
Bessent, US Treasury Secretary, says that the oil market is well-supplied amid Iran war
U.S. Treasury Secretary Scott Bessent stated?on?Wednesday that crude oil is well-supplied amid the U.S. and Israeli 'war in Iran. The crude markets are well-supplied. On the water, there are hundreds of millions of barrels away from the Gulf. Bessent told CNBC that, "more importantly, we will be making a series of announcements." The price of oil rose by?1% Wednesday after a?U.S. and Israeli strike on Iran disrupted Middle East supply. However, the gains were slower than in previous sessions because President Donald Trump said the U.S. Navy would be able to escort ships through the Strait of Hormuz. Trump said Tuesday that he also ordered the U.S. International Development Finance Corporation will provide financial and political guarantees to maritime trade in the Gulf. Bessent stated that the U.S. Navy would provide safe passage 'through the straits' for oil tankers if needed. Reporting by Susan Heavey and David Lawder; editing by Jan Harvey, Chizu Nomiyama, and Doina Chiacu
-
Bousso: Trump's Hormuz shipping plans are too little too late to avoid energy shock.
The current plan of U.S. president Donald Trump to revive shipping in the Strait of Hormuz through financial guarantees and security assistance requires a?herculean effort on behalf of international partners. Even if it is successful, the relief will be limited as the time to avoid the worst economic consequences of the closing of this vital energy route is rapidly running out. Trump said Tuesday that he had directed the U.S. International Development Finance Corporation (IDFC) to provide financial guarantees and political risk insurance for maritime trade within the Gulf. He said that the U.S. Navy would begin escorting ships through the Strait of Hormuz - the 'narrow shipping lane' between Iran and Oman, through which a fifth of the world's oil and gas is normally transported. Washington is taking these measures to relieve pressure on the global energy market after the traffic through the Strait virtually halted on Saturday, following the launch of the joint U.S. and Israeli aerial bombardment against Iran. Tehran responded by striking the neighbouring countries including their energy infrastructure and forcing the closure of Qatar's LNG production as well as Saudi Arabia's biggest oil refinery. At least four other tankers were also attacked in or near Hormuz. This prompted many ship insurance companies and charterers suspending transit into and out of Gulf. Brent oil prices rose to $84 per barrel, their highest level since July 2024, after the closure. Stock markets in Asia were also sent tumbling as investors braced themselves for an economic shock. Under the current circumstances, however, it is unlikely that the U.S. will reassure shippers. In recent days, tanker freight rates have increased dramatically. Many routes are now at record levels. Chartering a crude ship capable of transporting 2 million barrels from the Gulf of Mexico to Asia costs $30 million. This is roughly 5% of cargo value at current rates and five times the cost at the beginning of the year. A MUCH BIGGER CHALLENGE Reduced costs will not reduce the risk of attack on vessels. U.S. Naval escorts could certainly reduce the risk but are unlikely to provide full protection from Iran's use of drones missiles and fast attack boats. Washington's intervention to secure shipping routes in the region is not the first time. During the "Tanker War", phase of the Iran/Iraq Conflict in the late 1980s the U.S. escorted Kuwaiti oil tanks under Operation Earnest Will, to deter Iranian attacks. Today, the scale of this challenge is much?larger. Since then, oil and gas exports have almost doubled to 20 million bpd. Qatar, the second largest LNG producer in the world, exported 80 million metric tonnes of LNG last year, which is about a fifth global demand. It wasn't a major player on the energy market in the 1980s. It would be an enormous task to secure such huge volumes of oil, gasoline and tankers. Other countries' navy would most likely need assistance. Even more important, it would take weeks, or even days to organize such an effort. TIME IS FLYING BY Both producers and consumers are running out of time. Already, the blockade of Hormuz is forcing Gulf producers into reducing their output. Iraq reduced production by over 1.1 million barrels per day (bpd) on Tuesday, or roughly one quarter of the total amount of oil produced, due to lack of storage capacity. Officials warned that if the disruption continues, production could drop by over 3 million bpd in a matter of days. Similar constraints apply to other producers. Saudi Arabia is the largest crude oil exporter in the world. It shipped 7 million barrels per day (bpd) during February. Now, it's diverting some of its output to Yanbu, a Red Sea port, via a pipeline that can handle 5 million barrels per day. Yanbu has a maximum export capacity of 2 million barrels per day, which means that the Saudi Arabian kingdom is forced to store large amounts onshore. According to Kayrros, Saudi Arabia has already stored 82 million barrels in its onshore storage facilities, which is around 56% of the capacity. United Arab Emirates can divert up 1.5 million barrels per day through a pipeline bypassing Hormuz. Kayrros explained that this would mean tapping into storage which is currently around 40% full. About 34 million barrels are already held. Saudi Arabia, Kuwait, and the UAE could be forced to cut production further as a result of this. ASIA'S ENERGY CRUSH Consumers are also under increasing pressure. Asian refiners, who are heavily dependent on Middle Eastern oil, are struggling to replace their supplies and will likely cut operating rates. Due to the shortage of oil, two Chinese refineries already have reduced their runs. India has also curtailed its gas supply to its industrial base. The shock has rippled through the Asian financial markets. South Korea's KOSPI index has fallen 18% this week on concerns that Middle Eastern energy could disrupt the country's manufacturing and petrochemical sectors. The main question is how long will the war last. Trump has said that the war could last for weeks. However, even if Trump's plans to reopen Hormuz are successful, it may not be possible to wait. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
-
Qatar's Petronet issues a force majeure order to its local buyers due to the Middle East crisis
In a filing to the stock exchange on Wednesday, India's largest gas importer, Petronet LNG Ltd. issued a "force majeure" notice to its supplier QatarEnergy and local buyers because its vessels are unable to reach Ras Laffan loading port due to the Middle East crisis. Fuel shipments have been disrupted by the U.S./Iran conflict. The transit through the Strait of Hormuz, between Iran and Oman - which carries one-fifth of the world's oil consumption as well as large amounts of liquefied - natural gas - has come to a near halt after some vessels in the area were hit. In a notice published late Tuesday, Petronet said that due to the current security situation and material risks to maritime navigation, it has issued to QatarEnergy a Force Majeure Notification for its LNG Tankers?Disha Raahi and Aseem. Petronet also notified its customers GAIL (Indian) Ltd, IOCL (Indian Oil Corp), and Bharat Petrol Corp. of force majeure. QatarEnergy also sent a notice to Petronet, "indicating that a potential event of Force Majeure could occur due to hostilities in the region", according to the Indian company. According to a report on Tuesday, Indian gas suppliers Indian Oil Corp. and GAIL have already cut gas supplies to industries such as fertiliser plants. Nidhi verma reported; Nivedita battacharjee edited.
-
As the Middle East conflict escalates, airlines cancel flights
The global air travel industry is still severely affected by the Iran war, which forced the closure of key Middle Eastern hubs such as Dubai, Doha, and Abu Dhabi. This left tens and thousands of passengers stranded and disrupted thousands of flights. The following is a list of the most recent flights by airline alphabetically: AEGEAN AIRLINES Greece's largest airline has suspended flights from and to Tel Aviv, Beirut and Erbil until early morning arrivals on March 10. Flights to and from Dubai, Abu -Dhabi and Riyadh will be suspended until evening arrivals on March 6 and flights from Jeddah and Riyadh until early morning arrivals on March 7. AIR BALTIC AirBaltic, a Latvian airline, said that all flights from and to Tel Aviv have been cancelled until March 9. AirBaltic said that all flights to and out of Tel Aviv have been cancelled until March 9. AIR CANADA The Canadian carrier plans to resume flights on March 23. AIR EUROPA Spanish Airlines has cancelled all flights from Tel Aviv to March 9th. AIR FRANCE KLM Air France cancelled flights from and to Tel Aviv, Beirut Dubai, Riyadh, and Beirut through March 5. KLM announced that flights from and to Dubai, Riyadh, and Dammam have been suspended until March 9, and flights from and to Tel Aviv will be suspended through the end of winter. CATHAY PACIFIC Hong Kong Airlines has announced that it will cancel all flights from and to Dubai, and Riyadh until March 14. The U.S. carrier has cancelled flights from New York and Tel Aviv until March 22, as well as from Tel Aviv and New York until March 23. EL AL ISRAEL AIRLINES El?AL, and Sundor flight to and from Israel have been cancelled up until 2 a.m. March?5. EMIRATES All flights to and from Dubai are suspended until March 4, 2019. ETIHAD AERWAYS The UAE carrier suspended all flights from and to its Abu Dhabi hub up until 1000 GMT March 5th. FINNAIR The Finnish airline has cancelled Doha-Dubai flights until 28 March and will avoid the airspaces of Iraq, Iran and Syria. British Airways, owned by IAG, has cancelled flights from Amman to Abu Dhabi, Bahrain and Dubai as well as Doha, Tel Aviv and Doha-Doha. Iberia Express - IAG's low cost airline - has cancelled all flights between Tel Aviv and Tel Aviv until March 10. ITA AIRWAYS ITA Airways suspended all flights to and out of Tel Aviv, and will not be using the airspace in Israel, Lebanon Jordan, Iraq, and Iran before March 8. Dubai cancellations were extended until March 6th. Between March 2 and 4, Riyadh flights were cancelled. JAPAN AIRLINES Japan Airlines has suspended Tokyo-Doha scheduled flights from February 28 through March 14, and Doha-Tokyo until March 15. All flights from and to Tel Aviv have been cancelled by the Polish airline until March 18. The airline also cancelled flights from Riyadh and Dubai until 8 March. LUFTHANSA GROUP The German carrier group, which includes Lufthansa Austrian Airlines and Brussels Airlines has suspended flights from and to Tel Aviv, Beirut Amman Erbil Tehran and Tehran until 8 March and flights from and to Dubai Abu Dhabi and Larnaca 'until 6 March. MALAYSIA AIRLINES Malaysia Airlines has suspended all flights from and to Doha until 7 March. The Malaysian carrier temporarily resumed its return services from and to Jeddah, Madinah between March 4-8. NORWEGIAN AIR The Nordic airline will fly to Tel Aviv from June 15 instead of April 1 and 4, as originally planned. PEGASUS Turkish Airlines has cancelled all flights to Iraq, Jordan, Lebanon and Iran until March 12 and until March 6. QATAR AIRWAYS The airline said that it has suspended flights from and to Doha because of the closure of Qatari aviation. SINGAPORE Airlines Singapore Airlines has cancelled all flights to and out of Dubai until March 7. Scoot, its low-cost airline, has cancelled flights from and to?Jeddah until March 7. Turkish Airlines has cancelled flights from and to?Bahrain and other countries such as Iran, Iraq and Jordan. They also have canceled flights from and to Kuwait, Lebanon, Oman and Qatar. WIZZ AIR Through March 7, the low-cost carrier halted all flights to and from Israel and Saudi Arabia. It also ceased flights between Dubai, Abu Dhabi and Amman, Jordan's capital. (Compiled by Josephine Mason and Jamie Freed; reporting by bureaus. Editing by Barbara Lewis and Louise Heavens; Christian Schmollinger; Matt Scuffham; and Milli Nissi Prussak.
ADNOC subsidiaries report normal operations, with no impact on regional developments
Six listed subsidiaries of Abu Dhabi's state oil giant ADNOC said that their operations were continuing as normal on Wednesday, with no material impact from recent regional events on their finances or businesses.
The statement did not mention the U.S. and Israeli strikes on Iran or Tehran's response of attacking its neighbours.
Separate, almost identical disclosures were made to 'the Abu Dhabi Securities Exchange by ADNOC Gas, ADNOC Drilling & Services, ADNOC Distribution, ADNOC Logistics & Services, Borouge and Fertiglobe. They said they are 'closely monitoring the situation in the United Arab Emirates and broader Gulf Region, and coordinating the relevant UAE authorities.
The parent company, the 'Abu Dhabi National Oil Company', hasn’t made a public statement since Saturday, when a spokesperson said that operations continued without interruption.
Fertiglobe was the only stock that remained unchanged. ADNOC Distribution, L&S and ADNOC Gas all saw steepest declines of?about 5%.
(source: Reuters)