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SOCAR, TotalEnergies, ADNOC, BOTAS sign Absheron phase two gas sales agreement
SOCAR, TotalEnergies and ADNOC International have signed a gas purchase & sales agreement for?gas produced in Azerbaijan from the Absheron field. On the sidelines Baku Energy Week, SOCAR President Rovshan 'Najaf was joined by BOTAS Chairman Abdulvahit 'Fidan, TotalEnergies Senior Vice President for Exploration and?Production Europe Martino Panizzi and Mohammed Al Aryani President - International Gas of XRG. The final investment decision for the Absheron II project will be made this year. In 2029, annual gas production will begin and reach a level of over 4 billion cubic meters (bcm). A SOCAR official stated that around half of the production is expected to be delivered?to?the?Turkish Market under the agreement. The Absheron gas-condensate field is one of Azerbaijan’s largest fields. The second phase of development would increase Azerbaijan’s gas export potential and contribute to regional energy safety. Reporting by Nailia bagirova, Editing by Can Sezer & Darin Butler
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The US-Iran trade dispute has impacted most Gulf markets.
Early trade on Monday saw most Gulf stock exchanges retreat after Iran and the U.S. traded strikes. Israel also ordered its troops to advance further into Lebanon in its battle with Tehran-backed Hezbollah. The U.S. said it had struck Iranian military sites at the weekend. Iran's Revolutionary Guards responded by saying they had attacked a U.S.-based base. This is the latest exchange in negotiations to end a three-month old?war. The fighting that followed the Israel-Lebanon talks in Washington on Friday tempered hopes that U.S. officials and Iranians would soon announce an extension of their ceasefire. Saudi Arabia's benchmark Index fell 0.1% due to a 0.5% drop in Al?Rajhi bank. Qatar Islamic Bank's 2.2% decline was the largest among its constituents. According to Financial Times, in Abu Dhabi the index fell 0.1%. First Abu Dhabi Bank, the largest lender, dropped 2% as it has exposure to properties linked to mortgage lender Market Financial Solutions. The lender didn't immediately respond to a comment request. Dubai's main stock index traded 1.1% higher than the trend, led by Salik toll operator rising 3.7%. Trump announced 'on Friday that he will soon make a decision on a proposal to extend the ceasefire agreement with Iran. Despite the fact that the two countries appear to still be at odds on important 'issues which have been at the heart of the conflict, the deal is expected to be finalized in the next few days. The oil price rose by more than 2 percent in the early hours of trading on Monday. This raised concerns about inflation and rate hikes. (Reporting by Ateeq Shariff in Bengaluru)
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EasyJet says it is open to a takeover bid, but the timing of it is 'opportunistic.' Shares soar.
EasyJet's shares rose by 12% on Monday after the British airline announced it would be open to any Castlelake takeover offer. The company called the timing of the U.S. investment group "highly opportunistic". Castlelake announced on Friday that it is in the preliminary stages of considering an offer for?easyJet. However, no approach has yet been made to the board. There can be no certainty as to whether or not a bid will be made. It has until 26 June to either make a "firm bid" or walk away. EasyJet said on Monday that it would evaluate any offer, if made. It noted that the Iran 'war' and other regulatory challenges have lowered its stock price. EasyJet shares rose as much as 12.5% in early trading to 447.8 pence, which valued the company at PS3.39billion ($4.57billion). By Friday, the stock of easyJet had dropped over 22% this year. The statement said that the board "remains highly confident" in easyJet’s strategy, and in its ability to provide attractive long-term value to shareholders. Analysts said Castlelake has the financial power to bid for easyJet. However, a complete?takeover is unlikely due to European and British regulatory constraints. Easyjet warned last month that its full-year forecast was uncertain due to fuel cost increases caused by the Iran conflict, and summer bookings being behind last year. Castlelake announced separately on Monday that it owned a 2.14%'stake' in easyJet. This makes it a top 10 shareholder, according to LSEG data. The firm is backed with billions of dollars to finance aircraft and airlines.
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Macron claims that the French Navy has boarded a Russian-linked oil tanker
The French Navy boarded a Tagor oil tanker on Sunday, which was under international'sanctions' and sailing from Russia. French President Emmanuel Macron wrote about it?on X. He said that the operation was conducted in the Atlantic Ocean on the high seas with the help of many partners, including Britain, and in strict accordance with the laws of the sea. He added that it was unacceptable for ships circumventing international sanctions and violating the law of the sea to finance Russia's war against Ukraine. In a'separate' statement issued on Monday, the Maritime Prefecture of the Atlantic stated that the French Navy intervened on an oil tanker coming from Murmansk in Russia, more than 400 nautical miles (740km) west of the Brittany tip. This operation was to verify the nationality of an alleged false flag vessel. The team examined the documents after boarding the vessel to confirm suspicions about the irregularity in the flag flown. According to international law, and at the request of the Public Prosecutor, the ship 'was diverted.' The ship was not named by the prefecture. Both France and Britain have vowed to 'obstruct' ships that are linked to Russia sanctioned'shadow fleets, which pass through their waters. British Prime Minister Keir starmer announced that in March he had given permission for the UK military to board ships owned by a "shadow fleet". Shipping data, however, shows that dozens sanctioned vessels linked to Russia continue crossing UK waters.
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Maguire: The US gasoline market is set to be tested again after a near-record draw of stock.
The near-record drawdown of gasoline inventories in the United States is flashing a warning to fuel markets. The system is losing its buffer as seasonal demand is peaking. This combination doesn't guarantee shortages, but it increases the chances of unexpected price changes if something goes wrong with replenishing inventory during peak U.S. Driving season is upon us. U.S. gas prices have already risen by 50%, to near four-year highs, since the U.S. war with Israel against Iran began February 28. They currently average $4.33 a gallon. After 15 weeks of reductions in gasoline inventories, the national stockpiles are at their lowest level for this time of the year since 2014. A durable Middle East peace deal that restores tanker traffic quickly through the Strait of Hormuz may help to limit further price increases in the short term and prevent further steep reductions of U.S. gasoline stock. Any resumption of military hostilities which threatens to further hinder oil production and exports out of the Middle East is likely to spark a new rally in U.S. gas prices this summer. This will fuel cost-of-living concerns across the nation. Record Run EIA data show that the 15-week decline in U.S. gasoline stocks since mid-February?is equal to the longest stock draw on record which took place between mid-February 2012 and late May 2012. U.S. gasoline stocks are now around 211.5 millions barrels. This is down from 253 million barrels just before the Iran conflict began and 5.5% lower than the average five-year figure for this time of the year. If the stock continues to fall, 2026 will be the year that the national gasoline stocks are continuously reduced without being replenished. The next update of EIA stock data is scheduled for June 3. A further reduction is likely, given the fact that gasoline consumption in the country has been steadily increasing as families begin to go on summer vacations. At this time, domestic crude oil stocks are also experiencing a sharp decline due to the shortages caused by Iran's war. The U.S. crude inventories are expected to decline for a sixth consecutive week, the longest stretch of weekly oil decreases since 2024. RISE IN PROCESSING RATES As U.S. refiners increase processing rates to boost refined product output, further declines in crude stock are likely. The U.S. refined 16.9 million barrels last week. This was the largest weekly processing volume since November last year. It should lead to a rise in refined product sales. It is not clear if any of this extra supply will reach the domestic market. This is because many U.S. refining plants are designed to serve export markets, where gasoline and diesel prices can be higher than in the U.S. Retailers will most likely be able to buy up any excess fuel that makes it on the U.S. Market in order to meet domestic demand. The consumption patterns are likely to continue increasing as the end of the U.S. School Year marks the beginning of the busiest time for U.S. motorists, when families hit the road on vacations and for family visits. This rising demand is likely to result in further draws on U.S. gas stocks, which may lead to further increases in gasoline prices. These are already near multi-year records. The author is a columnist and he has expressed his opinions here. 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.
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Overnight, Ukrainian drones strike a refinery and pipeline
Russian and Ukrainian authorities confirmed that Ukrainian drones struck energy targets in several Russian regions over the weekend, including an oil pipeline pumping station and an oil refinery. This was part of an intensifying campaign against Russian infrastructure. Ukraine's General Staff reported that it struck the Saratov refinery along the Volga River, causing an?large fire. Roman Busargin, the Saratov Regional Governor, said via Telegram that "civil Infrastructure" was damaged by the strike. He did not provide any further details. The Russian Defence Ministry said that it had shot down 216 drones over night. Kyiv also said it had struck the?Lazarevo pumped station in the Kirov area, northeast of 'Moscow, and around 1,300km from Ukrainian-held territory. This pumping station serves the Surgut - Gorky -Polotsk pipe, which ships Russian oil from Siberia into Belarus. Alexander Sokolov, regional governor of Kirov region, said that drones hit an installation in the area but did not provide any further details. Belgorod's governors reported three civilians were injured. Ukraine said that it had struck military targets as well as fuel storage in the Rostov Region. Sergei Aksyonov, a Moscow-backed Crimean Peninsula governor, said that authorities were?introducing restrictions on the sale of petrol. Ukraine has been attacking fuel infrastructure near Crimea in southwest Russia for months. Ukraine's air force said that Russia launched 229 drones over night, of which 212 were shot down in the north and east of Ukraine. (Reporting and editing by Kevin Liffey, David Holmes and Felix Light)
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Austrian protesters close vital motorway linking Germany to Italy
Thousands of local residents closed down 'Austria Brenner Motorway' on Saturday. The Brenner is a vital north to south?corridor between Germany and Italy. They were protesting against the?tourists and trucks that are always clogging their roads. Karl Muehlsteiger was the leader of the protest, the mayor of Gries am Brenner. Gries am Brenner is one of the towns that are in the shadows of the Wipp Valley, a narrow valley with steep sides, and giant concrete stilts. Since?decades, the issue of excessive traffic and pollution in the valley that leads to the Brenner pass has been a source for tension between Austrians and Germans. Local authorities have taken various measures in Austrian 'Tyrol' to stop the flow of traffic, which has often prompted protests?across border. "You're making history!" Austrian news agency APA reported Muehlsteiger telling a crowd of 3,000 protesters that gathered at the motorway to symbolically block it, after police had cordoned both ends of corridor. The cars that arrived there turned around and left. Even though it was a holiday in some German states (including Bavaria), the eight-hour closure from 11 am did not cause chaos as many feared. Local media reported that trains passing along the same route were crowded. The local road, which runs parallel to the motorway from town to city was also closed for all traffic except locals and local traffic. A suspected arson attack overnight on electrical control units disrupted rail travel between Peri and Dolce near Verona?on Verona Porta Nuova - Brenner?line. Investigators were looking into possible links to radical environmentalist or anarcho-insurrectionist groups. (Reporting and editing by Kevin Liffey; Additional reporting in Rome by Crispian B. Balmer; Reporting by Christian Mang & Francois Murphy)
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Munich Airport briefly stops flights over drone sighting
The police and airport authorities confirmed that flights were halted at Munich Airport for an hour on Saturday morning after a pair of pilots saw a drone. A spokesperson for the airport said that during the shutdown, more than 20 flights which were due to land in Munich were diverted to another airport. Two pilots flying separate planes on the airport tarmac saw a drone hovering over the airport at around 9 am (0700 GMT). This prompted the closure, according to the witnesses. The flights resumed an hour after the first one. A police spokesperson stated that "extensive police operation, including a helicopter search of the area affected,?produced no results". The shutdown was lifted at 10:05 am, they added, after a thorough investigation into the incident had been launched. In October of last year, drone sightings caused more disruption at Munich airport. They forced several shutdowns in rapid succession. (Reporting and writing by Elke Ahlswede, Francois Murphy, Editing by Ros Russel)
Minister: Turkey to build TANAP-style electric corridor with Azerbaijan
Alparslan bayraktar, Turkish Energy Minister said that Turkey and Azerbaijan will expand their energy partnership beyond oil and gas to include electricity transmission and green energy corridors.
Bayraktar, speaking at the Baku Energy?Week opening, said that Turkey, Azerbaijan and Georgia,?Bulgaria, and Southeast European countries are working?to enhance regional energy connectivity.
Bayraktar stated that "we are going to create a 'electricity version' of TANAP", referring to the Trans-Anatolian Natural Gas Pipeline, which carries Azerbaijani natural gas to Europe via Turkey.
The Turkish government plans to upgrade its transmission and distribution network by $30 billion over the next decade in order to support a higher?renewable energy output, as well as nuclear power.
Ankara plans to upgrade its electricity transmission links with Georgia,?Azerbaijan and Bulgaria in order to trade excess energy. (Reporting and editing by Daren Butler; Nailia Bagirova)
(source: Reuters)