Latest News
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FedEx launches same day delivery service amid US Delivery Race
FedEx announced on Tuesday that it had launched a same-day delivery service in partnership with the last-mile software company OneRail. FedEx SameDay Local allows customers to choose from a variety of delivery options, such as two-hour and end-of-day windows. FedEx claims to link 'customers with a nationwide network of over?1,000 delivery providers via a system which matches orders and drivers. This?move is a result of?companies in the sector investing in faster fulfillment and a stronger last-mile network to meet increasing customer demand for quicker, more flexible deliveries. Amazon has expanded its fast delivery options earlier this month by launching one-hour and three-hour shipping across the u.s. FedEx says the new service will allow it to better support its customers, from local fulfillment to long-haul delivery. Reporting by Abhinav Paramar in Bengaluru, Editing by Tasim Zaid
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Reeves: UK will provide energy assistance to 'those in greatest need'
The British Finance Minister Rachel Reeves stated on Tuesday that the government's support to households in order to offset the increase in energy costs caused by the conflict in the Middle East will not compromise her plans to fix the public finances. Reeves said that we should learn from the past mistakes as we deal with this crisis. She said that the Conservative government 'pushed up borrowing rates, inflation and interest rates with its response to the rise in energy prices in 2022 after Russia's full scale invasion of Ukraine. Reeves said she was working to develop a more targeted strategy for households whose?energy costs are expected to rise from July. She said that "continuous planning" is being done for all eventualities to keep costs low for everyone, and to provide support for those in need while adhering strictly to our fiscal rules. Reeves stated that she would be meeting with representatives of supermarkets and banks this week to discuss ways they can help UK consumers. She also said that she asked officials to 'look at where they could cut certain agrifood tariffs in order to help 'keep a lid on the grocery inflation, keeping a mind to any implications for local producers. (Reporting and writing by Muvija, Sarah Young, and David Milliken; diting by Catarina demony).
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India fills up stranded ships with LPG amid gas crisis
An official of the federal shipping ministry revealed on Tuesday that India was loading liquefied petroleum gas onto its empty ships stranded in the Persian Gulf due to a 'gas shortage' caused by the conflict in the Middle East. The 24 Indian flagged vessels were stranded on the Persian Gulf after shipments from the Gulf were interrupted and the Strait o'Hormuz. Rajesh Kumar Sinha said that two ships, Shivalik and Nanda, have already arrived in India. Pine Gas?and Jag Vasant will arrive between March 26-27. Sinha stated that one vessel has?exited the dry dock and will be fully loaded with LPG within three to four days. He said that five tankers carrying 230 000 metric tons of LPG were in the Strait of Hormuz. He said that six LPG carriers will be available. He?clarified also that, under international law, narrow sea passages (straits) guarantee the right to freedom of navigation. This means that vessels do not need to pay tolls or obtain permission to pass through the Strait of Hormuz. He cautioned, however, that the current state of affairs warranted careful evaluation. India is experiencing its worst gas shortage in decades. The government has cut off supplies to industries so that households are not affected. India imported 60% of the cooking gas it consumed last year. Around 90% of these imports were from the Middle East.
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Data shows that crude exports from Saudi Arabia's Yanbu Port surged to nearly 4 mln Bpd last weekend.
Shipping data indicates that crude oil exports from Saudi Arabia's western Yanbu Port?rose sharply to a record 4 million barrels a day last week. This is a sharp increase from the?exports levels prior to the Iran War. Saudi Aramco is the world's largest oil exporter. To offset the disruption in the Strait of Hormuz, they are sending crude oil along the East-West pipeline from Yanbu. The majority of the oil will be heading to Asia. Aramco announced on March 10 that it can deliver up to 7 millions bpd through its East-West pipeline to Yanbu, of which around 5 million bpd could be available for export, and the remainder could supply local refineries. Kpler reports that total Saudi crude oil exports in February exceeded 7 million barrels per day. Kpler data showed that crude exports via 'Yanbu' have averaged 2.9 million barrels a day in March. This is slightly higher than the figures reported by LSEG. This is a significant increase compared to the 770,000 barrels per day average in January and February. According to Kpler and LSEG, exports increased to nearly 4 million?bpd in the week beginning March 16. They are expected to continue to increase. Reporting by Ahmad Ghaddar and Jonathan Saul Editing by Bernadettebaum, Aiden Lewis
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United Airlines increases its premium travel offerings as fuel prices rise due to the Iran War
United Airlines announced a major aircraft and cabin overhaul on Tuesday, focusing on more luxurious seating. The airline is pursuing its long-term plan despite warnings that oil prices could remain above $100 per barrel until 2027. Chicago-based carrier says it will receive over 250 aircraft by April 20, including 68 Airbus A321neo coastliner and A321XLR Jets, with Polaris lie-flat business-class seats. The premium cabins are also larger. This comes after United's Chief Executive Scott Kirby announced last week that it would reduce its planned capacity by five percentage points this year to prepare for oil prices expected to rise above $100 per barrel in 2027. United's annual fuel bill would increase by $11 billion at those levels. That is more than double the profit United earned in its best-ever year. Kirby, however, said that United was in a better position than previous cycles to absorb shocks and protect margins through cutting back on less profitable flights. He also stated the company would continue investing for the future. He said in a press conference that "we've positioned us to get through the inevitable storms, stay focused on long-term and keep investing long-term." PREMIUM PUSH The announcement will focus on two new Airbus models, which feature Polaris lie-flat seats and Premium Plus cabins. The Coastliner will only fly between Los Angeles, San Francisco and Newark/New York. The A321XLR will replace Boeing 757s in some international routes this summer, and open up new destinations to Europe and South America. United says that the 757s flying on these routes have an average of 16 business class seats. The A321XLR will have 32 premium seats. The Coastliner has 20 Polaris seats, and 12 Premium Plus Seats. Since the pandemic, U.S. airlines have built their business more around corporate clients, loyalty-program participants, and premium travelers. They bet that these customers will not pull out of fares when they rise. Andrew Nocella is United's chief business officer. He said that the U.S. air travel market and economy remained strong. This allowed United to increase fares without materially affecting bookings. Nocella told reporters, "I can assure you that the environment is very strong." We've been successful in passing through most of the necessary price increases to cover the rapid and significant increase in oil and jet fuel prices. (Reporting and editing by Lincoln Feast; Reporting by Rajesh Kumar Singh)
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As the Middle East conflict escalates, airlines cancel more flights
The global air travel industry is still severely affected by the war in Iran, which forced major Middle Eastern hubs like Dubai, Doha, and Abu Dhabi to close. The latest news on flights is listed alphabetically below: AEGEAN AIRLINES Greece's largest airline has cancelled flights from Tel Aviv to Beirut, Amman and Erbil until May 24, and Baghdad to Baghdad and Erbil until April 22. Dubai flights have been canceled until?April 19, and Riyadh flights until April 18. AIRBALTIC AirBaltic, a Latvian airline, said that all flights to Tel 'Aviv were cancelled until April 29, 2019. All flights to Dubai are cancelled until October 24, AIR CANADA All flights from Canada to Tel Aviv and Dubai have been cancelled until the end of March. AIR EUROPA Spanish Airlines has cancelled all flights from Tel Aviv to April 10. AIR FRANCE KLM Air France has cancelled Tel Aviv, Beirut and Dubai flights until April 4, and Riyadh and Dubai flights until March 31. They have also cancelled an April 1 departure out of Dubai. KLM has suspended flights from Riyadh to Dammam, Dubai and Tel Aviv up until April 11 and until May 17. CATHAY PACIFIC Hong Kong Airlines has cancelled all flights to Dubai and Riyadh up until May 31. In order to meet the increased demand for flights to Europe, Hong Kong Airlines will be operating three additional return flights from Paris and Zurich and adding seats to 13 existing London flights in April. The U.S. The?U.S. Atlanta-Tel Aviv flights have been delayed until August 4, and Tel Aviv-New York flights until August 5. EL AL ISRAEL AIRLINES The Israeli carrier will only operate 15 flights outbound per day. Each flight is limited to 50 passengers. It will also fly to a few key destinations. EMIRATES The UAE airline announced that it would operate a?reduced flight schedule as a result of a partial opening of regional airspace. ETIHAD AERWAYS The UAE carrier announced that it would operate a limited schedule of commercial flights between Abu Dhabi, and a few select destinations. FINNAIR The Finnish airline has cancelled all flights to Dubai until March 29, and Doha until July 2. It continues to avoid the airspace over Iraq, Iran and Syria. FLYNAS Flynas, a Saudi low-cost airline, has extended the suspension of its flights to Dubai, Abu Dhabi Sharjah Doha, Bahrain Kuwait Iraq and Syria, until March 31, 2019. British Airways, owned by IAG, has extended the cancellations to Amman and Bahrain until May 31, and Doha until April 30. Flights to Bangkok and Singapore have also been added. Flights to Abu Dhabi are suspended until the end of this year. INDIGO The Indian airline has temporarily suspended its operations in Doha, Kuwait and Bahrain, Dammam as well as Fujairah Ras Al Khaimah Sharjah, Fujairah. JAPAN AIRLINES Japan Airlines has suspended its scheduled Tokyo-Doha and Doha to Tokyo flights until April 1; All flights from Tel Aviv to Dubai have been cancelled, according to the Polish airline. The airline has also cancelled flights from Riyadh to Beirut and from March 31 to May 30. LUFTHANSA GROUP Lufthansa has suspended all flights to Dubai, Tel Aviv, Abu Dhabi, Amman and Beirut until May 31. Lufthansa Cargo will be the same except for Tel Aviv, which is suspended until April 30. Eurowings, a low-cost carrier, plans to suspend flights to Tel Aviv through April 30, and to Dubai Abu Dhabi, Amman and Erbil until October 24. MALAYSIA AIRLINES Malaysia Airlines has suspended all flights from Doha to April 15th. NORWEGIAN AIR Low-cost carrier has delayed the launch of Tel Aviv services from April 1, to April 4 respectively. All Dubai flights have been cancelled through April 8. PEGASUS Pegasus Airlines, Turkey, has cancelled all flights to Iran, Iraq, Amman and Beirut. They have also cancelled flights to Kuwait, Bahrain, Doha Dammam, Dubai Abu Dhabi, Sharjah, Doha and Dammam. Pegasus Airlines has cancelled flights to Riyadh until April 1. QATAR AIRWAYS The airline said that it would only operate a limited number of flights up until the 28th March. SINGAPORE Airlines In response to increased demand, the carrier has extended the suspension of Singapore-Dubai flights through April 30. It also added services on the Singapore-London Gatwick route and the Singapore-Melbourne route from late March until the 24th October. TURKISH AIRLINES Turkish Airlines has cancelled the majority of Middle East flights up until March 31. SunExpress, a joint venture between Lufthansa and SunExpress has cancelled flights from Dubai to Bahrain to April 30. WIZZ AIR The low-cost carrier has suspended flights from Europe to Israel and other destinations in the Middle East until March 29. Flights to Dubai, Abu Dhabi and Amman will be available until mid-September. (Compiled by Josephine Mason and Jamie Freed; edited by Matt Scuffham and Mill Nissi Prussak.
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German bond futures trading is suspended for the first time since 2023 by Eurex
The trading of two-year German government bond futures has been interrupted for the first time since 2023. This was after U.S. president Donald Trump delayed military strikes on iranian energy plants and infrastructure. The spokesperson stated that two volatility interruptions occurred at 11:05.42 GMT and 11.17.04. This was after a sharp sell-off of government bonds. The volatility interruption is not a trading stop, but a safeguarding measure that is automatically triggered by Eurex’s trading system. This ensures smooth trading, even in extreme market conditions. The 'volatility interruption', which is different from a trading halt, was triggered automatically by Eurex's trading system to ensure that the market continues to run smoothly - even in extreme conditions. This had happened on the same day that the European Central Bank raised interest rates by 50 basis points, amid a banking crisis?on both?sides of the atlantic which?led to UBS taking over Credit Suisse. (Reporting and editing by Dhara Raasinghe; Yoruk Bahceli)
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Maguire: Iran war is worse for natural gas than oil.
The Iran war seems to have a similar impact on oil and gas, as missiles, drone attacks and shipping disruptions clog up the Strait of Hormuz. Underneath the surface symmetry, there is a serious imbalance. Gas consumers are more affected by the 'global supply chain' because it has less rerouting and storage options than the oil markets. The construction and repair of key gas infrastructure, liquefaction plant in particular, is more expensive and complex than the equivalent oil infrastructure. Oil refineries are able to resume operation more quickly after a shutdown than export hubs for?liquefied?natural?gas. The prices have shown the imbalance: European and Asian benchmarks for gas have increased far more than crude oil in the time since the conflict started, a difference that indicates gas will take longer to recover than oil. BAD TIMING This disruption could not have come at a worse time for gas. According to the Energy Institute the growth in global gas demand is roughly double that of oil over the last decade. This is due to the expansion of pipelines and storage systems. This growth trajectory was widely expected to continue in the future, particularly as emerging economies move away from coal. The global LNG industry has grown steadily due to the positive outlook for the gas market. The world's second largest LNG exporter, Qatar, has suddenly ceased to export LNG after Iranian attacks cut off 17% of its export capacity. The resultant increase in gas prices has served to warn consumers about the dangers of heavy import dependence and is likely to slow down the addition of gas-fired energy capacity. Gas for electricity has never been so affordable. Solar panels and batteries are a cheaper and faster way to boost electricity than constructing new gas facilities, which may take many years. Costs for gas turbines, in particular, have also risen this decade due to global shifts of manufacturing capacity and the soaring demand from wealthy economies that are building data centers. SHIFT PIPELINE These forces have already begun to reshape the areas where new gas capacities are being built. Global Energy Monitor reports that the U.S., the world's largest natural gas exporter and producer, has increased its share in the pipeline planned for new gas capacities from 10% to 33% by the beginning of 2026. Gas power components are being sought by U.S. utilities, and other tech giants to increase electricity for artificial intelligence applications. This aggressive push squeezes out cost-sensitive markets. India, a fast-growing economy that was once expected to be a major consumer of gas, has cut back on plans to increase gas capacity. India's energy firms are adding coal-fired power to their mix of power sources to offset this. India is expanding its oil refinery base, and it is expected that fuel production and exports will grow through 2030. Storage Squeezer Gas storage is more difficult than oil. The crude and refined products can be stored easily in land-based tanks and on ocean tankers. This will help to prevent supply disruptions. Natural gas, on the other hand, takes up much more space when stored at normal room temperature. It must then be compressed or supercooled to a liquid form for better storage. This limits the storage of gas and increases its cost. Gas consumption is also highly seasonal. In most countries, demand peaks during winter but drops sharply in shoulder seasons. The demand for refined fuels is fairly consistent throughout the year in many major economies. Storage operators are unable to profitably time their sales and purchases due to the large fluctuations in gas consumption. This is unlike fuel storage companies that can expect multiple tank farm turnovers every year. THE BOTTOM LINE The war has caused significant disruptions to both oil and gas flow. The oil industry is expected to recover faster. The major Middle East oil producers are already redirecting supplies via pipelines outside of the Strait of Hormuz. This should help oil supplies rebound even as the Iran Conflict drags on. The global gas system, on the other hand, has no immediate way to overcome the sudden drop in Qatari gas supplies. This will have repercussions throughout the gas supply chain and may accelerate the search for alternative fuels by industry and power companies. Even a quick end to the fighting will not bring much relief to gas prices. The damage to Qatar's exports alone is likely to take many years to repair and those buyers who have already started to shift away from gas are unlikely to change their minds. It is likely that some major economies, such as the U.S., will continue to be heavily dependent on gas. In response to recent gas supply cuts, more cost-sensitive markets could collectively 'curb' their exposure to gas, leaving a permanent mark on an industry which, up until recently, was gearing itself for the exact opposite. These are the opinions of a columnist who writes for. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X 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 7 days a weeks.
Ukraine renews its attacks on Russian energy sites. What has been struck?
Ukraine increased its attacks on Russian energy installations in recent weeks, as peace talks failed to progress.
The following is a brief summary of the attacks and their impact.
SARATOV RIFFINERY
Sources claim that the Saratov oil refining plant, controlled by Rosneft was 'hit by a drone' on March 21. Its crude?distillation? unit has been closed since then.
The refinery will process 5.8 million tons of oil in 2024, which is 2.2% of the total Russian oil refining.
ILSKY REFINERY
On February 17, a fire broke out in the Ilsky Oil Refinery, located in southern Russia. The cause was drone attacks. According to local officials, the fire was completely extinguished on February 18.
Exports are the main focus of Ilsky's refinery. It has an annual capacity to process 6.6 million tonnes of oil.
VOLGOGRAD RIFFINERY
Sources claim that the Volgograd refinery owned by Lukoil was shut down completely on?February 11, as a result drone attacks. Drones targeted, among others, the primary oil-processing unit CDU-1, whose daily capacity is 18,600 tons, or around 40% of refinery total. In 2024, Volgograd's refinery will have processed 13.7 million tonnes of oil.
UKHTA REFINERY
According to officials in the region, a drone strike led to a fire at Lukoil's Ukhta Refinery on 12 February.
Sources claim that the CDU-1 primary oil processing unit caught fire. The unit's capacity is approximately 6,000 tons per a day or one third of the refinery.
By 2025, Ukhta?refinery will have processed 3 million tons oil.
AFIPSKY REFINERY
According to officials in the region, a fire broke out at Afipsky Refinery on January 21, as a result of drone attacks.
Exports are the main focus of the refinery. In 2024, it will process 7.2 million metric tons of crude, or 144,000 barrels a day.
PORTS AND TTANKERS
After a suspension of operations due to drone attacks, the Baltic Sea ports Ust-Luga (Monday) and Primorsk (Tuesday) resumed crude oil loadings.
Transneft, the Russian oil pipeline monopoly, has cut crude intake by around 250,000 barrels every day following a?drone strike? on a pumping station on February 23, which served major oil hubs and ports.
On January 13, drones attacked two oil tankers, including one chartered to the U.S. oil giant Chevron CVX.N. They were sailing towards a terminal near the Russian coast. Mark Trevelyan, Barbara Lewis and Mark Trevelyan (Reporting)
(source: Reuters)