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Italian-led EU forces board a sanctioned Russian tanker in the Mediterranean
A naval mission from the EU led by Italy boarded on Sunday a tanker belonging to 'Russia's shadow fleet. This is the second time in less than two weeks that a vessel has been boarded. Europe is intensifying its scrutiny of vessels suspected of helping Moscow bypass oil sanctions. The Italian Defence Ministry reported that the Toa Payoh tanker, which was subject to EU sanctions and was sailing from Benin towards Istanbul, had been intercepted just west of Pantelleria, an island in Sicily. According to a source with knowledge of the operation, the vessel only switched to a Cameroon registration last week. The inspection was conducted by the maritime authorities to ensure that the tanker had the legal right to fly the Cameroon Flag and that all of its registration documents were valid. Sources said that the EU Naval Mission, Operation EUNAVFOR Med Irini did not have authority to seize vessels at such inspections. Therefore, the Toa Payoh wasn't detained. The?documentation collected during the boarding is still being reviewed and can be used by national officials for a later sequestration, if needed. Toa Payoh’s captain initially refused to cooperate with EUNAVFOR MED’s mission. A team of Italian military personnel was then sent to board the vessel using a helicopter launched from the EUNAVFOR MED flagship, Thaon di Revel. The inspection, which was carried out by a Greek vessel with the assistance of a Polish maritime surveillance aircraft, took about two hours. It was concluded'safely,' according to the ministry. No immediate comment was made by Russia. The Sunday operation comes after the July 20 boarding of MV South Star. This tanker was also linked to Russia's Shadow Fleet and was inspected by Irini Forces over suspicions that it was also sailing under a false banner. The European Union has imposed sanctions against scores of vessels it claims are part of Russia's "shadow fleet", which is used to circumvent restrictions on oil exports ever since its invasion of Ukraine. EUNAVFOR Med Irini was launched in 2020 as a naval mission of the EU to enforce an arms embargo imposed by the U.N. on Libya. Since then, EU governments have expanded its scope by authorizing it to conduct verification boards. (Reporting and editing by Kevin Liffey, Alex Richardson and Crispian Balmer)
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Italian-led EU forces board a sanctioned Russian tanker in the Mediterranean
The Italian Defence Ministry reported that an EU team led by Italy boarded on Sunday a tanker from Russia's "shadow fleet" to verify the nationality and flag registration. It was not immediately clear if the vessel had been held while the checks were being carried out. The ministry reported that the Toa Payoh tanker, which was under EU sanctions and sailing under the?flag of Cameroon's, had been intercepted by Italian authorities in the Mediterranean west of the island of Pantelleria while traveling from Benin towards Istanbul. The captain of the ship initially refused to cooperate. A team of Italian military 'personnel' then 'launched' a helicopter from the 'Thaon di Revel', the flagship of EUNAVFOR MED Irini. The inspection was carried out by a Greek vessel, assisted by a Polish maritime surveillance aircraft. It lasted two hours, and the ministry reported that it was completed safely. The Italian authorities examined the documentation that was obtained during the inspection. The European Union imposed sanctions on scores vessels it says are a part of the "shadow fleet" that Russia has used to circumvent its oil export restrictions since its invasion in Ukraine. EUNAVFOR MED 'Irini' is a naval mission of the EU launched in 2020 with the aim to enforce a U.N. -imposed arms embargo against Libya. Since then, EU governments have expanded?its mandate by authorizing it to conduct verification boards of vessels suspected of flying false flags. (Reporting and editing by Kevin Liffey; Crispian Balmer)
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After talks fail, WestJet flight crews strike
Flight attendants at Canada's WestJet went 'on strike' on Sunday, after failing to reach an agreement with the country's second-largest airline. This resulted in the cancellation of flights during busy summer travel seasons. The Canadian Union of Public Employees (CUPE), which represents 4,400 flight-attendants at the carrier owned by Onex Corp., gave a 72-hour notice on Thursday, signaling that there could be a strike if negotiations failed to yield an agreement. In a Sunday Facebook post announcing the?strike, the?union didn't provide any details. CUPE and airline 'didn't immediately respond to emailed requests for comments outside of business hours. The union wants to pay its members from the moment they arrive to the moment they leave, but that's not the case. WestJet canceled 309 flights from Sunday night to Monday morning in anticipation of the strike. The company stated on its website that it did this to "minimize the risk of guests and aircraft being stranded." The strike is part of a larger effort by flight attendants to challenge compensation structures that pay cabin crew primarily when the aircraft is moving. (Reporting from Sumedha Mukherjee, Bengaluru. Editing by Joe Bavier & William Mallard.
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Thirteen die in tourist plane crash over Peru's Nazca Lines
Authorities in Nazca Province said that a?small tourist aircraft crashed Saturday while flying over the 'Nazca lines archaeological site' in southern Peru. Thirteen people were killed. In a press release, the Peruvian Ministry of Commerce and Tourism stated that 11 foreign tourists and 2 crew members were aboard. Local authorities reported that the plane crashed near Pueblo Viejo. This is approximately 6 km (4miles) away from the city of Nazca, and about 12 km (7miles) from Nazca Lines. Local authorities reported that the small plane was owned by the local Peruvian carrier Aerodiana and took off from Pisco Airport. The company did not respond to requests for comment. According to reports from the local press, it happened at 12:55?pm. The plane was on a sightseeing flight at the time and was preparing to return. According to RPP, the Peruvian radio station, after the crash, a fire broke out in the plane, rendering any rescue efforts impossible. Firefighters, police officers and municipal officials were sent to put out the fire and begin initial rescue operations. Local authorities have said that they will conduct an investigation to determine the cause of this crash. Social media footage shared showed what appeared to be the wreckage of a small aircraft on an arid landscape. I was unable independently to verify the footage. Nazca Lines are a series of geometric and huge drawings etched in the desert plains of southern Peru. They attract around 100,000 tourists annually. The Nazca Lines are usually viewed from small aircraft that fly over the site. The Nazca 'lines were suspended Friday because of winds above 40 kph, which caused dust to be blown around and reduced visibility. Local media reported that strong winds forced two small planes carrying Peruvian tourists, and six other aircraft carrying foreigners to divert their flights to Marcona Airport.
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Crimean families line up for hot food as Ukraine cuts power supply
A chef prepared to serve dozens if people who were waiting for a hot meal after Ukrainian attacks had cut off power in their kitchens. Fuel supplies in cities and towns throughout Crimea, the area that Russia annexed as part of Ukraine in 2014, were limited for most of the summer due to Ukrainian attacks on power plants and other infrastructure. Ukraine says that it is "bringing the war home to Russia" through intensified strikes on the territory and deep within the country controlled by its neighbor. Oksana Mdyud, the head of Massandra's town administration, said that her workers serve 200 people a day. She said, "We are preparing hot meals because not everyone can cook food hot on an electric stove." Marina, a local woman, complained that her leg pain made it difficult to descend from her 10th floor?apartment, but her lack of electricity sent her on a 'hunt' for a gas cooker and cylinders. She said that her apartment was empty. "We have an electric cooker, that's all." Alexandra, a resident of a nearby older age, also said that she was lured by the aroma of the food after being without electricity for 10 days. She added that "they turned it back on today at 4 o'clock", but was not sure if the lights would be still on when she got home. Reporting by Lucy Papachristou, Writing by Andrew Heavens
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Iraq is expecting to extend pipeline agreement with Turkey, INA reports
Iraq is planning to sign a?agreement for a year to continue Iraqi crude?flows?through?the Turkish?port of Ceyhan. This was announced by the oil ministry, according to Iraqi News Agency. The agreement would renew a 'decades long bilateral arrangement which expired on Monday, which allowed the operation of Baghdad’s 'only working export pipeline, the Iraq Turkey Pipeline (ITP). Salim al Rikabi, INA's spokesman, said that Iraq's Oil Minister is visiting Turkey on Saturday to sign an agreement providing for a daily capacity of 750,000 barallons. The extension will give time to negotiate a comprehensive agreement. The Turkish government wants the pipeline with its?capacity to transport 1.5 million barrels of oil per day to be fully utilised, and possibly extended to southern Iraqi fields. According to Turkish data, the pipeline currently carries?170,000 barrels per day.
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UKMTO reports two incidents of tanker accidents off Oman
The 'United Kingdom Maritime Trade Operations' (UKMTO), a division of the United Kingdom Government, said : "On Saturday we received reports...of two maritime incidents...off Oman. One incident involved a tanker that was hit by an unknown projectile." UKMTO reported that in the first incident a tanker struck by a projectile unknown about 11 nautical miles northeast of Oman’s Lima. The damage to the engine room left the vessel without command. The UKMTO said that there were no reports of casualties or environmental impacts. Later, the UKMTO reported that it received a second report of an incident?21 nautical mile northeast of Oman’s Khasab. The tanker's master reported a large explosion and splash in close proximity to his vessel. However, no damage was reported. Lima and Khasab lie on Oman's Musandam Peninsula, at the entrance to the Strait of Hormuz. This is a strategic shipping chokepoint through which a fifth of the world's oil consumption passes. In recent weeks, shipping through the Strait of Hormuz was a risky endeavor. Ships reported security incidents and shipowners took 'additional measures' as hostilities between Iran and the United States escalated. Reporting by Hatem Mahar and Enas Alashray; Editing By William Mallard & Kirsten Donovan
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India's record renewable power generation in July reduces coal's share to a 1-year low
In July, the share of coal in India's power generation mix fell to its lowest level?in an entire year as renewable energy production surged?to a new record high. The data revealed that renewable power has risen to 20% of India's total mix. The data showed that the number of kilowatt hours (kWh) consumed in July was 36.25, a 30% increase from last year. Grid-India, the state-run regulator, calculated that coal-power generation dropped to 65.7% from 69% in July. India's clean energy generation has risen as solar and wind output have exceeded 100 gigawatts. This is the first time that this figure was higher than 42.8%. Manoj Kumar, analyst at the Centre for Research on Energy and Clean Air said that the majority of peak power demand occurs during the daytime, when solar contributes more. He cited a rising renewable share in the nation's electricity generation. The data revealed that coal-fired electricity generation increased by 12.8% on an annual basis to 119.40 Gigawatt Hours in July. Analysts attribute the rise in coal-power production to a decline in hydropower and due to an El Nino pattern where "searing heat" is driving the demand for cooling at night. El Nino has caused a significant shift in rainfall patterns and elevated temperatures. This is why hydropower generation fell for the second consecutive month. CREA stated that the lower hydro generation due to El Nino combined with increased power demand could result in a gap in power generation of nearly 18 billion kWh. This will lead to an increase in coal-fired energy in India. Data showed that India's electricity production in July increased 10.4% compared to a year ago, reaching 181.79 billion kWh. Sethuraman N.R.; William Mallard, Editor
Andy Home: Gulf aluminium disruption has ripple effects on the alumina industry.
The Iran war has caused the aluminum market to focus on what's not coming through the Strait of Hormuz. There is a?equally important problem: What is not coming in.
Gulf Aluminium smelters depend heavily on alumina imports, an intermediate product between bauxite and metal, for their operations.
Six smelters are located in the region, but only two refineries produce alumina. Emirates Global Aluminium (EGA) Al?Taweelah, a plant of Emirates Global Aluminium, was damaged by Iranian missiles. The same reason is causing the smelter to be out of service at the site, and other smelters have reduced their capacity.
As shipments are diverted away from the Gulf, this disruption will have a first-round effect on the alumina markets that is already saturated.
Second-round effects could include further reductions in Gulf metal production, as smelters are running low on raw materials.
China is the only one who wins here, as it absorbs all of the displaced aluminum.
Under Pressure
Even before the start of the Iran war, the alumina market was already under pressure.
Since the beginning of this year, the London Metal Exchange price (LME), which is based on S&P Global Platts’ assessment of the Australian FOB price, has hovered around $300 per metric tonne.
This is a far cry compared to the wild rally in 2024 when prices soared above $800 after a series supply shocks.
Since then, the market has shifted from a shortage to a surplus due to the continued expansion of production capacity in China?and Indonesia.
Macquarie Bank estimated the global surplus to be 2.54 million tonnes last year, and forecasted a surplus of 1,26 million tons by 2026.
The bank just increased its estimate of 2026 oversupply to 2.2 million tonnes as Gulf-bound shipments were redirected onto the seaborne market.
The length of time the Strait is closed to shipping will be a determining factor.
INPUT RISKS
The more time it takes for the Strait to be reopened, the higher the risk that?further cuts will be announced to those already made by Qatar's Qatalum producer and Aluminium Bahrain.
Ma'aden in Saudi Arabia is the only fully integrated Gulf producer. It operates its own bauxite mining operation, feeding Ras Al Khair alumina refining plant.
According to Wood Mackenzie, Ma'aden has arranged emergency supplies for others and produces more alumina that its smelter can use.
Alumina isn't the only problem for Gulf operators.
According to AZ Global Consulting, the logistical problems could be even worse for coal tar pitch which is used to make the carbon anodes that are used in the smelting processes.
It said that while other carbon inputs, such as calcined coal and petroleum coke, can be "diverted or?stockpiled and rebagged and trucked," liquid pitch needs heated storage, heated trucks, and heated silos to keep it molten between the loading point and discharge point.
These facilities are rare and difficult to improvise. "Pitch could be the most difficult logistical problem in 'the carbon chain' if disruptions continue," AZ Global stated.
CHINA WINS
China is the main beneficiary of the disruption to the alumina processing chain.
According to the World Bureau of Metal Statistics which gathers data from customs statistics, it imported 338.315 tonnes?of aluminum in March. This is the highest monthly total since January 2024.
AZ Global anticipates that imports will remain strong in the months to come, thanks to an open import arbitrage between local and international prices.
China's smelters have been able to enjoy strong margins as the Gulf Crisis has also sent aluminium prices up to four-year levels.
According to the International Aluminium Institute, Western production in March fell by 312,000 tons on an annualised basis due to restrictions in the Gulf while Chinese production increased by 88,000 tonnes.
China's share in global production grew to a record 60.2% in the last month. This ratio is expected to continue to rise as the Iran War takes its toll on Gulf smelters.
Andy Home is a columnist at. This column is great! 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.
(source: Reuters)