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Asian Airlines' Europe windfall diminishes as Gulf competitors rebound
Industry data shows that Asian airlines, which gained passengers on European routes and charged higher prices after the Iran conflict began are now'seeing their advantages eroded as Gulf carriers restore flights?and offer lower ticket price. The shift was 'gradual', but it raises doubts about whether carriers such as Singapore Airlines, Cathay Pacific Airways and Korean Air Lines, ANA Holdings, can maintain much of the share gained during disruption. Nathan Gee is the head of Asia-Pacific Transportation Research at BofA Global Research. He said that the industry term for seat occupancy, or load factor, has reached its peak. But long-haul bookings are usually made within a six month window. This means that the biggest contribution to revenue will come in the next quarters. Cirium data shows that before the conflict, Emirates, Qatar Airways, and Etihad Airways transported nearly a third of passengers from Asia into Europe, and over half from Australia and New Zealand. Flightradar24 shows that at the beginning of the Iran War on February 28, the Gulf hub airports of these airlines were closed because of drone and missile strikes. By mid-June, however, the flights of these airlines had returned to 90% of their normal levels. According to the International Air Transport Association?data, between March and May, Middle Eastern carriers saw a drop of 28% in passenger numbers compared to a 60% drop a year ago. While non-stop traffic between Asia and Europe increased by nearly 30% on an annual basis in March, the increase had shrunk to only 15% by May. ASIAN FLIGHTS FULL In?June Australia lifted its "do-not-travel" warning, which?had invalidated travellers' insurance policies in Gulf hubs. Flight Centre Travel Group reported that its bookings for Emirates, Qatar and Etihad rose 36% in the week following. As they assessed the situation, some travellers who had booked flights on Gulf carriers before the war bought refundable back-up flights to Europe with Asian airlines. Michael Schischka is a senior advisor at Mary Rossi Travel, Sydney, which specialises in luxury European holidays. He said, "Not all customers but the majority feel more secure and comfortable when flying through the Middle East." "Many of the Asian flights had very high demand and there were no cheaper fares available." This has led people to look at Middle East airlines once again. Korean Air's spokesperson stated that it experienced an increase in load factor on its European routes from March to May. However, transfer traffic had weakened as Gulf carriers began resuming operations during the second quarter. ANA has not yet reported data for May, but its load factor on European flight'slid from 93.1% to 86.9% last month, though this was still an 8.7 percent increase year-on-year. Cathay Pacific said that the load factor on its entire network increased by 2 percentage points from a year ago to 86.8% in May, while in March it was 9.5 points higher at 92.2%. Brendan Sobie, an independent aviation analyst, said that the data indicated a gradual rebalancing rather than a sudden one. The trajectory of Singapore Airlines also illustrated the trend. In March, the airline's Europe-load factor soared by 13.8 percentage points. However, gains dwindled to just 4.9 points in both April and May. Sobie stated that "in May, the load factors for both Europe and Australia were normalized." "They saw a large increase in March. A smaller rise in April, and a still smaller one in May. "To me, it's more gradual and not overnight." Cherie Lavin is a Travel My Dear travel agent in Brisbane. She said that her clients who are looking to fly within the next three months were still hesitant to book with Middle Eastern airlines. She said, "But for next year I don't think there will be any hesitation in quoting this." "And it is being received well." Reporting by Julie Zhu and Christine Chen, Sydney; editing by Jamie Freed
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The largest US power grid PJM is moving to manage data center demand
On Tuesday, members of the PJM interconnection voted to advance a proposal to increase electricity supply to meet the 'rising demand for data centers' that threatens to overwhelm regional electricity supplies on the largest U.S. grid. PJM has been inundated with requests from Big Tech and developers over the past two years to connect data centers that are energy-intensive to the grid, which covers 13 states and DC. This has thrown the'supply-and demand balance' off, which is needed to provide power reliably and affordably to 65 million people within PJM footprint. PJM's capacity prices have risen by over 1,000% in the last few years. These are paid to power stations to ensure that they can supply 'enough power for the grid at peak demand times. PJM members voted on a non-binding basis for more than a dozen different proposals to supply 'data centers via a 'backstop - procurement process. Data center advocates and major electric utilities proposed a plan that was advanced. This plan proposed a process for procurement that would start on September 10, 2026, and end on November 20, 2026. That was also what PJM proposed. PJM encourages long-term contracts between power providers and data centers, but any?shortfall could be covered through the procurement process. The board will be informed by the votes, but ultimately it is the board that decides on the policies and terms. Members also voted to determine if and how they would reduce their energy use during times of grid stress, as well as who would pay for certain measures to connect and manage server warehouses quickly. PJM has 'proposed that data centers pay for new power supplies on the grid in order to cover their 'energy use, or agree to have their electricity cut off when the 'electricity usage of the entire grid is high enough. This will help to prevent broader blackouts. The group did vote against any of the proposed changes. Reporting by Laila K. Kearney, New York; editing by Chris Reese
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South Bow and Bridger will develop a new pipeline project to connect Wyoming with Cushing, Oklahoma
South Bow Canada and Bridger Pipeline will jointly develop a new 'pipeline project' from?Guernsey in Wyoming to Cushing in Oklahoma, Canada South Bow announced via email on Tuesday. South Bow stated that the project would be developed along an existing corridor acquired from another company. The Bridger and South Bow project teams have been working on the details and will release additional information as it becomes available. Two companies are proposing an Alberta to Guernsey oil pipeline. If it is approved, the pipeline could increase Canada's crude exports into the U.S. more than 12%. Analysts have stated that Guernsey does not represent a 'end market' for crude oil. Hence, additional links will be needed to transport oil to refinery hubs like Cushing, Oklahoma.
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Some Russian fuel prices are now over 100 roubles due to the crisis.
Sources at retail chains say that independent filling stations have started selling fuel in Russia for more than 100 rubles ($1.27) per litre, as a result of the unprecedented rise in spot prices for gasoline and diesel due to Ukrainian attacks on oil refining facilities. Fuel restrictions have been imposed across the country due to intensifying strikes against Russian energy infrastructure. Sources said that independent retailers were close to crossing the 100-rouble threshold for a litre of gasoline two weeks ago but didn't because their software wasn't configured to display?three digit prices on display panels. According to sources, the worsening conditions on the market forced these filling stations to update their technical equipment to allow them to sell gasoline and diesel for up to 120-140 rubles per litre. The prices at chain stations run by vertically integrated oil firms are not much different from the pre-crisis level: AI-92 is about 63-66 roubles a litre and AI-95, about 70-73 roubles a litre. The traders stated that these companies adhere to an informal agreement with regulators, which states: "price increases must remain within inflation's pace." Fuel is selling out fast at the oil company stations due to the price difference, which has caused them to suspend their operations until they receive another delivery. Vladimir Putin admitted that Ukraine's drone war had caused fuel shortages on Sunday. He said, however, that the authorities are addressing the issue. According to estimates by industry experts, Russia's gasoline output has been below the consumption level since May. Diesel production, however, has been at or near the consumption level. Slow wholesale deliveries further squeeze supply Industry sources claim that on the wholesale side of things, "demand is significantly greater than supply, with many purchase bids not being filled." Sources said that wholesale sales volumes of AI-92 diesel and gasoline fuel on the St. Petersburg International Mercantile Exchange are now less than half of what they were in June 2025. AI-95 volumes have also dropped by approximately a third. Delivery delays are reducing supply. Exchange participants reported that sellers are routinely delaying shipments. Delays of up to two months now seem the norm. Spot fuel is only available at those depots which have received wholesale quantities purchased on the exchange, or who still have volume stockpiled from the winter. This price is double the average SPIMEX wholesale price for such small wholesale lots.
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The largest US power grid PJM will vote on managing demand for data centers
The PJM Interconnection is scheduled to vote Tuesday on the'most important issue facing the U.S. grid operator: How to manage the 'rising demand for data centers that threatens to overwhelm regional electricity supplies. PJM has been inundated with requests from Big Tech and developers over the past two years to connect energy-intensive, data-centers to the grid covering 13 states and 'the District of Columbia. This has thrown the supply-and demand balance off needed to reliably - and affordably - supply power to 65 million people within PJM footprint. This imbalance has sent PJM's capacity prices, which power plants are paid for to ensure that they provide enough?power during peak demand periods, soaring more than 1,000% since around?2024. On Tuesday, voting members of PJM will try to decide protocols for how data centers are supplied, how they can reduce their power consumption during times of grid stress, and who is responsible for certain measures to quickly 'connect and manage' the server warehouses. PJM proposes that data centers can either pay for new power supplies on 'the grid' to cover their energy consumption or agree to have their electricity cut off if the grid is overloaded. This would help to prevent a broader blackout. A decision could be made at the meeting on the date of the "backstop" purchase. PJM encourages 'long-term contracts between data centers & power providers. However, any shortfall incurred by this process will need to be covered. The members are expected to vote around 2:30 pm EDT. Reporting by Laila KEARNEY in New York, Editing by Chris REESE
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CPC Blend Oil Exports to Decline 6% in July from June After Karachaganak Cut Output
Two trading sources reported that the Caspian Pipeline Consortium will 'export around 1.6 million barrels per day of CPC blend crude in July. This is down from the 1.7 million barrels per day planned for June, after drone damage caused a Russian gas plant to reduce production. The Russian Orenburg?gas plant normally receives gas from Kazakhstan's Karachaganak oil and gas condensate fields, which export?oil through the CPC pipeline. Karachaganak had to cut production after the Orenburg gas plant was attacked. Calculations show that daily?CPC blend oil?loadings are expected to decline by 6% from June in July. Karachaganak's production is now back to 31,000 tons per day but it remains lower than the 28,000 tons that were produced before the drone attack. This was confirmed by Askhat Khasenov of KazmunayGas which owns a stake in the oilfield operator Karachaganak Petroleum Operating. Last October, another drone attack forced the Karachaganak field to reduce its production. CPC Blend Oil loadings have been revised up by 17% from the original plan in June after the "giant Kashagan" oil field decided to delay maintenance. CPC shareholders include Russia with 31% and Kazakhstan with 20.75 %, U.S. giant Chevron with 15 %, as well as several private companies. Barbara Lewis (Reporting and editing)
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India increases petrol tax in July and cuts windfall tax on diesel
According to a government directive, India has lowered windfall tax on diesel and aviation turbine fuel exports as 'global oil prices' have eased, but increased the duty for petrol exports. Duty on diesel exports was cut from 14 to 8.5 rupies per litre. Aviation turbine fuels were set at 7.5 rupies/litre. To ensure a domestic supply, the?export tax on petrol has been raised to 4 rupees from 1.5 rupees. New rates will be effective July 1. As a result of a reduction in fears of a prolonged supply disruption, oil prices have dropped sharply since peaks of $126 per barrel. Analysts and economists predict that Brent crude oil will average $84.50 a barrel in 2026, down from the $90.44 predicted last month. (Reporting by Nikunj Ohri, Chandni Shah in Bengaluru. Mark Potter edited the article.
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German regulator moves to curb Deutsche Bahn dominance on key rail routes
Germany's network regulator is planning to limit Deutsche Bahn’s utilisation of long-distance rail on certain congested 'routes', potentially opening up the market to competitors including Italy's 'Italo' . The Bundesnetzagentur made a presentation of the proposal on Tuesday to its rail infrastructure advisory council. Before the draft becomes binding, it must be discussed with the council. This follows a complaint from the Italian high-speed railway operator Italo. Italo wants to enter Germany's market in 2028, but says it needs predictable access. The German railway company, Deutsche Bahn, controls?roughly 95% of Germany’s long-distance market. It is battling chronic delay while undergoing a decade-long network upgrade that will cost approximately EUR150 billion ($171billion). 'MINIMUM LEVEL ACCESS' The cap would apply to long-distance routes that are formally 'constrained'. It would be enforced by DB InfraGO (the infrastructure unit of Deutsche Bahn), which operates stations and tracks under the supervision of Bundesnetzagentur. The regulator stated that DB InfraGO would be able to allocate up to 60-75% of this capacity to a single user. Klaus Mueller, President of Bundesnetzagentur, said that the measure would ensure "a minimum level of competition for clock-face long distance services." DB InfraGO stated that the proposal 'would worsen existing capacity constraints and bottlenecks, with competition concentrated primarily on'major routes' while key rail hubs still lack capacity to provide wider regional connections. It stated that it would review the draft decision, and examine its options. Italo welcomed the proposal, calling it "a clear sign" that Germany is ready to compete in high-speed rail. According to the Bundesnetzagentur?Italo plans on investing EUR3.6 billion and ordering about 30 Siemens high speed trains to operate services along the Munich-Berlin route and the Munich-Dortmund route.
What sites have been attacked by Ukraine?
In recent months, Ukraine has intensified its attacks on Russian energy installations as the peace talks have not produced any progress.
Dmitry Peskov, Kremlin spokesperson, said that there are no dangers to the fuel supply in Russia. He was responding to a report on a drop in oil refinery in the central region of the country after recent drone attacks by Ukraine.
The following is a chronological summary of the recent attacks that followed Russian strikes against Ukrainian energy facilities and their impact.
SYZRAN
On Thursday, the Ukrainian military and President Volodymyr Zelenskiy claimed that Ukrainian drones had struck Rosneft's Syzran oil refining plant in Samara.
Two industry sources said that Syzran refinery has suspended oil refining following drone attacks in April 2018 which damaged processing equipment.
The refinery can process around 170,000 barrels of oil per day, or 8.5 million tons per annum.
According to industry sources, it will process 4.3 million tonnes of crude oil in 2024 and produce 800,000 metric tons of gasoline, 1,5 million metric tons of diesel, and 700,000 metric tons of fuel.
The Ukrainian General Staff announced on Wednesday that the Ukrainian military had struck an oil refinery owned by Lukoil near Kstovo, in Russia's Nizhny Novgorod Region.
The general staff announced on Telegram that a primary oil processing unit had been hit at the refinery. They added that the attack caused a fire.
Two industry sources said that NORSI, Russia’s fourth largest oil refinery owned by Lukoil, suspended operations as well on April 5, following an attack from a Ukrainian drone.
NORSI is the second largest producer of gasoline in Russia. It can process up to 16 million metric tonnes of oil each year or about 320,000 barrels a day.
MOSCOW
Two industry sources reported on Tuesday that the processing of oil at the Moscow refinery ceased after an attack by a drone from Ukraine over the weekend.
Sergei Sobyanin, the mayor of Moscow, said that three homes were damaged and 12 people were injured, mainly near the entrance of Moscow's oil refining plant. He said that the "technology" at the refinery had not been damaged.
Moscow's refinery is located in Kapotnya, a district of the capital, and has a capacity of 11 million tons per year.
RYAZAN
Two industry sources confirmed on Tuesday that the Ryazan oil refining plant, which represents almost 5% in total of the country's refining volume, halted processing following a drone attack by Ukraine last Friday.
According to industry sources, the refinery will process 13.1 million metric tonnes of crude oil by 2024. It will produce 2.2 million gallons of gasoline, 3.4 millions gallons of diesel fuel and 4.3million gallons of fuel oil.
ASTRAKHAN Debris resulting from a drone strike caused an fire at a gas processing facility in southern Astrakhan on May 13, according to the local governor.
The Caspian Sea plant has a capacity of 12 billion cubic meters of gas per year and 3,000,000 tons of stable condensate. The plant also produces diesel, gasoline, and liquefied oil gases.
PERM Russia’s Perm oil refining plant halted production after a drone strike on May 7, which caused a fire, and damaged equipment.
The refinery will process around 12,6 million metric tonnes of oil in 2024. That's about 250,000 barrels a day. The refinery produced 2 million metric tons of gasoline, 5 million metric tons of diesel fuel, 700,000 metric tons of coke, and 200,000 metric tons of fuel oil.
Officials confirmed that a drone attack by Ukraine caused a major oil refinery fire in Tuapse, on April 28. Two industry sources said that the refinery, which exports most of its product, stopped operations after a Ukrainian drone strike on April 16.
The company has a production capacity of approximately 12 million tonnes per year or 240,000 barrels a day. It produces fuel oil, naphtha and vacuum gasoil.
NOVOKUIBYSHEVSK The primary oil processing at the Rosneft operated Novokuibyshevsk refining plant in Russia has been stopped since April 18 following a drone attack by Ukraine, according to two industry sources.
Industry sources say that in 2024 the refinery will process 5.74 million metric tonnes of crude oil. 1.10 million tons motor gasoline. 1.64 millions tons diesel fuel. 1.27 million metric tonnes fuel oil.
UFA Ukraine’s military confirmed that it had carried out a strike on the Bashneft-Novoil oil refinery in Russia, more than 1,400 km away from the border between Russia and Ukraine.
The plant can process up to 7 million tonnes of oil per annum.
Kirishi Oil Refinery Kirishi halted its processing at the end March after Ukrainian drone attacks caused fires.
Kirishi produced 600,000 tonnes of bitumen, 6.1 millions tons of fuel oil, and 6.1 million tones of diesel last year.
UST-LUGA PLANT Novatek Energy Company suspended the processing of gas condensate and exporting naphtha at its Ust-Luga Complex after drone attacks resulted in an fire. Three market?sources' told us on March 27.
Three processing units of the Ust-Luga Complex, each with 3 million tons per year capacity, refine stable condensate to light and heavy naphthas, jet fuels, ship fuel oils and gasoil. Company data shows that in 2025 the complex will have processed 8.0 millions tons of gas condensate.
PORTS/TANKS Ukraine also attacked Russia’s ports in the Baltic and Black Seas,?including the Primorsk Port, oil tankers, and military vessels on May 3. After a drone strike on April 23, a fire broke out at a Transneft pumping station that supplies crude oil to Russia's biggest export terminal, the Baltic port Primorsk. An official with Ukraine's SBU said that Ukrainian drones attacked an oil-pumping facility and dispatch center in Russia's Samara Region on April 21. In early April, Ukrainian drones started a fire in Russia's Sheskharis Oil Terminal. Primorsk is one of Russia's biggest export ports and can handle up to 1 million barrels a day. At least 40% of the storage facilities were destroyed in a drone attack by Ukraine last month. (Reporting and Editing by Louise Heavens).
(source: Reuters)