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Italy is preparing new measures to combat the spike in fuel prices amid fiscal worries
Officials said that the Italian cabinet would adopt new measures to reduce soaring fuel prices on Monday, amid growing concerns about their?fiscal impact. The increase in?energy prices and consumer costs due to the Middle East war has caused major problems for the Italian Government, which is trying its best to protect the purchasing power of households and energy-intensive industries. Officials who didn't want to be named said that the Italian cabinet would meet on Thursday, August 4, at 1530 GMT, to discuss a "new set of measures" focusing on diesel pricing. In March, Italy reduced the ad valorem tax on petrol and diesel in response to a sudden energy crisis triggered by Israel-Iran war. The measure was repeatedly extended and then?progressively reduced, until its expiration on July 3 at a cost of almost EUR2 billion (2.28 billion dollars). The European Commission and the IMF both criticised the reduction in excise duties, saying that Italy should have taken more targeted measures to protect the most vulnerable households. In a Monday statement, the industry ministry said that, on average, fuel prices at self-service stations on 'Italy’s road network are EUR1.982 for a litre of petrol and EUR2.185 per litre of diesel. This is up from EUR1.803 for petrol and EUR1.882 for diesel on July 3.
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Official: Russians attack Ukraine's Mykolaiv Region and kill one person, damage vessels.
A local official reported that Russian drone attacks on port infrastructure were carried out in Ukraine's southern Mykolaiv region early on Sunday and Monday, killing one person. They also damaged three civilian vessels. Heorhii Reshetilov, acting regional governor, said via Telegram that a 48-year-old male had been killed in an attack on port infrastructure Monday morning. In a subsequent?statement, Ukraine's Seaports Authority said that the vessels were blockaded in the port since Russia's full scale invasion?in 2022. They have not been?carrying on commercial voyages. The authority for seaports said that one person died and other people were injured during the overnight strikes. However, it did not give the number of injured. The number of vessels that were attacked was not disclosed. The Russian Defence Ministry announced on Monday that Moscow had struck two ships carrying military cargoes in Mykolaiv. Russia has been bombarding the port infrastructure of southern Ukraine with drones and missiles over the past few weeks, including in Odesa. Ukraine has also increased its attacks on vessels in the Sea of Azov and Black Sea, mainly carrying fuel. This is part of an expanded?campaign to isolate Russia-occupied Crimea while undermining Moscow’s main revenue sources. (Reporting and editing by Tom Hogue, David Holmes and Anna Pruchnicka)
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Gdynia is Poland's modernist port city from the interwar period that has been granted UNESCO heritage status
Gdynia's centre, built almost entirely from scratch between World War I and World War II, has been added to UNESCO World Heritage List as the city celebrates a centenary. Gdynia, located north of Gdansk and Sopot (the seaside resort), was long considered a poor relation of those places. However, the UNESCO Award adds Gdynia to a list of 1,273 other sites, ranging from Australia’s Great Barrier Reef in Athens to the Acropolis. The UNESCO Award is given to a landmark, or an area that has been legally protected for its special cultural?or environmental value. Gdynia, a city in Poland that gained its independence from Russia, Prussia, and Austria-Hungary after 123 years partitioning between them is one of their most recognizable symbols. FISHING VILLAGE TURNS INTO GATEWAY TO WORLD "This 'is an honor for a?city that didn't look back but instead boldly looked forward -- a?city built of dreams and courage, a belief in Poland being able to create extraordinary things," Culture minister Marta Cienkowska said on X, a social media platform. Gdynia reflects also the challenges faced by the new state. It was created with a small stretch of Baltic coast and without a major port of its own. In order to gain access to the sea and the new world, Poland chose Gdynia as the location of its new gateway. The village had only 1,200 inhabitants in 1920. By 1939 the population of Gdynia had risen 100-fold as people from all over the country sought a new start and opportunity in the city. Gdynia is often compared to other cities shaped in interwar modernism. Gdynia, on the other hand, was built almost entirely from scratch, around a "new seaport", giving it a unique architectural character. It is also one of Europe's best examples of a city modernist constructed in just a single generation. The city centre is characterized by buildings that are streamlined with flat roofs and corners, horizontal windows, and balconies similar to ocean liners. This reflects the maritime identity of the city and its faith in progress and technology. The World Heritage Committee of UNESCO is made up of representatives from 21 countries. The D-Day Landings in Normandy are among the other sites that have been added to UNESCO's Heritage list. Reporting by Anna Lubowicka and Kuba Stezycki; Editing by David Holmes
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Irish Continental's London share price jumps on $1.37 billion buyout by management
The?London?shares of?Irish Continental Group soared by more than?26%?Monday after the Dublin-listed maritime transportation group agreed on Friday to a EUR1.2billion ($1.37billion) management buyout that would essentially take it private. Bluefin Bidco is owned by four senior ICG management members: Eamonn Rothwell, David Ledwidge and Declan Freeman. They collectively own about 23,7% of ICG stock. According to the terms of the offer, ICG shareholders would receive EUR8 per share, which is a premium of 28.2% over the closing price for the stock on Friday. John B. ICG, Chair of the Independent 'ICG' Board, said: "The Independent ICG Board has conducted a thorough review of this acquisition and unanimously agrees that it provides compelling value to ICG shareholders." McGuckian stated in a statement.
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Officials say Ukraine wants to have a prototype European missile defense system in place by the middle of 2027.
A senior official stated that the prototype of a European antiballistic system, codenamed Freyja, should be ready in the first half of next year. Kyiv is pushing its allies to "help deliver" a weapon that can down Russian missiles. Davyd Aloian is the deputy secretary for Ukraine's National Defence and Security Council, which oversees the Freyja Project. He said that an international steering comittee whose task it was to estimate the?research-and-development costs would be convening soon. Two weeks ago, leaders from ten European countries, including Ukrainian president Volodymyr Zelenskiy, and around a dozen defense manufacturers met in Paris to launch the antiballistic coalition. Aloian stated that "since we are working in such a short time frame, we have a very ambitious goal. We want to have a MVP (minimum-viable product) ready for the first half next year." "This is a prototype which can already show its first practical results." Ukraine's air defence system is made by the United States. It is the only weapon it has that can reliably shoot down Russian ballistic missiles which travel faster than sound. The political volatility, low stock and the long production cycle have all affected Patriots' supplies. Russia increased its ballistic attacks on Kyiv, the capital, and Odesa, a southern port city, this month. They launched dozens of missiles that Ukraine could not intercept due to a lack of interceptors. Ukraine is prepared to provide the Freyja Project with a launcher and an interceptor missile. Zelenskiy said this month that it was just a matter of testing. According to the Ukrainian leader, he hoped that the system would be operational within one year. Kyiv is expecting its allies, including the United States, to provide technology such as advanced radars and sensors and technical expertise in missile guidance and control. Eurosam, which makes the SAMP T interceptor system, as well as Leonardo Thales and Saab are among the defence companies who have so far joined the effort. Fire Point, the Ukrainian drone and missile manufacturer that developed the Flamingo missile, will be the leading industrial partner in the project. Last month, it announced a deal to supply radars for the project with German defence company Hensoldt. OPEN SYSTEM?ARCHITECTURE Freyja aims to be a cheaper alternative to Patriot, on which?many European countries rely. Other air defence systems such as the Franco-Italian SAMP/T or German IRIS-T have yet to prove their ability to down ballistic missiles. Zelenskiy likened the Freyja alliance to Lego, assembling pieces of equipment by leading defence industry leaders. Aloian explained that manufacturers were tasked with creating a framework of a system consisting of interchangeable components. He said that the overall logic of this system was an open architecture. "If Denmark wants the Freyja radar with a Danish-made Freyja system, that's no problem. It's fine if Sweden wants the Saab radar system. Aloian stated that he is considering the idea of creating a special entity, perhaps a fund, to channel all contributions, and ensure stable funding for the project. He hopes that the direct involvement of businesses in the project along with governments will also help reduce redtape. The coalition should not be political but practical. (Reporting and editing by Daniel Flynn, Alexandra Hudson and Yuliia dysa)
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Bousso: ROI-Europe is in for a long and cold winter, as fuel buffers are dwindling.
Europe faces a winter of alarming fragility in its energy supply as conflicts in the Middle East, Russia and the United States tighten the global markets for heating oil and liquefied gas. According to official statistics, heating oil and natural gas are the two main fuels used in Europe for residential heating. Gas accounts for approximately 30% of heating demand, while oil is responsible for 10%. Both fuel markets are under extreme strain after years of energy shocks. Gas vulnerability in the region is largely a result of the dramatic change in its energy mix that has occurred since Russia's "full-scale invasion" of Ukraine in 2022. Europe quickly replaced Russian pipeline fuel with LNG and became one of the largest importers in the world of super-chilled fuel. This shift increased Europe's security of energy by reducing its reliance on Russia. However, it also complicated the energy dynamics in the region. Instead of relying solely on long-term flows, Europe competes with Asia and the other regions in an LNG global market where supply disruptions are almost instantaneous. In recent months, this vulnerability has become more apparent. MIDEAST LNG Crunch Europe is falling behind in replenishing its LNG inventory before winter. According to LSEG, underground gas storage facilities are around 55% full at the moment, which is their lowest level since 2021. Since the start of the Iran War, LNG imports to Europe have been a sharp decline. According to Kpler, imports will total just 6.3 metric tons this July, the lowest level since September 2024. Asia is a major factor. According to Kpler, LNG demand in the region has risen in recent months. A record 4 million tonnes of U.S. supplies were delivered in June and in July. These purchases diverted cargoes from Europe that would have otherwise been shipped. Many hoped, when the Strait of Hormuz opened briefly following the U.S./Iran interim agreement in April, that Qatar - which accounted around a fifth of the global LNG supply prior to the conflict - would quickly resume exports. The renewed blockade in recent weeks due to escalating tensions between the U.S. and Iran has dashed those hopes. The European market has become increasingly concerned by the combination low inventories, weak imports, and a deteriorating outlook for supply. Last week, benchmark European gas prices climbed above EUR60 per Megawatt Hour. They surpassed their previous peak during the Iran War to reach their highest level since 2023. Prices will eventually rise, attracting more?LNG to Europe. Even if imports improve in the coming months, it is likely that the region will enter winter with gas stocks well below the targeted 80% level. THE DIESEL DEVIL Europe is facing similar challenges with diesel, which has become one of this year's most pressing energy issues. Diesel imports are a major part of the region's economy. The fuel is used to power transportation, industry, and heating oil. During the summer, consumers and fuel distributors build up their inventories to prepare for winter. Inventory levels have actually decreased. The Iran War has caused a disruption in Middle Eastern supply routes, resulting in a reduction of diesel exports. Losing those barrels forced consumers to reduce their stock, pushing them to multi-year lows. The European diesel inventory is at its lowest level since 2022. According to the U.S. Energy Information Administration, US diesel stocks fell to a 23-year-low in May before rising by 10% the week ending on July 17. Two of the largest fuel exporters in the world have made policy decisions that have exacerbated this situation. China has limited fuel exports in an effort to conserve its supplies since the start of the Iran War. It is unclear how it will manage its production and future exports. In July, Russia, the second largest diesel exporter by 2025, banned diesel exports after Ukraine drone attacks severely damaged its refinery facilities and reduced fuel availability at home. Before the recent escalation of the war in Ukraine, Russia was shipping almost 1 million barrels per day or around 12 percent of the global diesel exports. The ban has led to a dramatic increase in the refining margins. Recent European diesel crack spreads reached a record high of almost $65 per barrel. These high prices have a tendency to reduce demand. According to the International Energy Agency, diesel demand in Europe fell by more than 6% to 5,53 million bpd in April. The decline in diesel demand may be due to the shift towards gasoline and electric vehicles. However, the persistently high prices have also forced consumers and businesses into reducing their consumption. Even if tensions ease in the Middle East quickly, damage has been done to inventories. The global LNG and diesel market is likely to be undersupplied for several months, as countries build up stocks and compete over limited supplies. This leaves Europe more?dependent upon a factor that it cannot control, the weather. A mild winter might?provide breathing space to avoid a full blown crisis. A prolonged cold snap that increases heating demand would reveal how little room for error there is in Europe's system. The continent is now one winter away from an energy crisis after years of shocks. 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.
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Maguire: The ROI-US Energy Cushion faces a new stress test when Middle East risks are rising again
Since years, America's decreasing vulnerability to the turmoil in the Middle East has been a defining feature of the global energy market. The United States, as the largest oil and gas producer in the world, is better protected from supply shocks overseas than it was before the Gulf crisis. The latest escalation between Iran and the Houthis comes at a sensitive time. The U.S. Energy System is already under heavy strain. Record electricity demand, peak summer fuel consumption, growing data center load, and persistent reliance upon gas-fired generators push infrastructure to its limits. The?country is still rich in energy, but the question now is not whether there are enough supplies or if production can keep up with demand. This helps to explain why traders and policymakers pay unusually close attention a few key indicators. Together, these indicators provide a measure of resilience in the U.S. Energy System as geopolitical risk in the Middle East is once again at the forefront of energy markets. KEY METRICS Metrics that are closely monitored include crude oil production, electricity, gasoline, refinery output and throughput, as well as natural gas storage. Each provides a unique window on the strains across the entire energy system. Crude oil production is a good indicator of whether the domestic supply can offset global disruptions. Natural gas production will reveal whether the fuel that powers much of the U.S. electricity sector can keep up with the rising demand for electricity. The data shows how utilities are working hard to meet the peak summer load from homes, businesses and data centers. The refinery's throughput and the gasoline production are used to determine if enough fuel is produced for transportation during the busiest driving period of the year. Natural gas storage levels are the ultimate balancing metrics, showing if the system is still able to balance supply and demand comfortably or if the cushion of the system is beginning to shrink. These indicators, when taken together, show whether the United States has added spare capacity or resilience to existing infrastructure, or is simply operating it closer to its limit. CRUDE OIL According to U.S. Energy Information Administration data, U.S. crude production is close to a record of 13.8 million barrels a day (bpd). This helps offset 'external supply shocks. Baker Hughes reports that only 450 drilling rigs are currently active, compared to a peak of 1,600 in 2014. This means there is still some drilling capacity available if drilling costs improve. This?potential of a supply response could help to temper concerns about prolonged oil price spikes resulting from geopolitical disruptions, or from tighter global inventory. NATURAL GAS According to the EIA U.S. dry-gas production is close to a record of 111 billion cubic foot per day (Bcf/d), supporting a power industry increasingly dependent on gas-fired generators. The rig count suggests that there is room for growth in the short term, but mature basins and increasing extraction costs may limit long-term supply. The U.S. Gas Markets are well-positioned to meet the rising demand. However, longer-term growth may be more limited than previous cycles. REFINED PRODUCTS Refineries operate at near-record rates, processing over 17 million barrels per day of crude oil. Gasoline inventories are about 9% lower than a year ago, which indicates that fuel supplies are tighter than what refinery activity would suggest. The fact that U.S. fuel refineries are heavily geared toward exports is a major factor in limiting the growth of domestic fuel supplies. Fuel costs on several international markets are significantly higher than U.S. prices. The strong demand for exports has therefore limited the amount of inventory that can be accumulated at home as a result of increased refinery activity. GAS STORAGE Storage is a reflection of the balance between demand and supply. Gas inventories in the U.S. are similar to last year's, which indicates adequate reserves. However, near-record LNG shipments suggest that underlying conditions may be tighter. In the short term, LNG exporters will be able to purchase large quantities of gas due to a strong demand in Asia and Europe. This could lead them into a competition with power generators for gas supply. ELECTRICITY GENERATION According to LSEG data, U.S. -power generation has increased by around 2% compared to a year earlier, mainly due the widespread heatwaves and the steadily increasing electricity demand of homes, businesses, and data centers. The increasing power consumption makes it more important to have a reliable fuel supply and adequate generating capacity at peak demand periods. The U.S. power system is able to meet increasing loads despite periods of low wind generation. Extreme temperatures, or other operational disruptions, can cause a tightening in supply-demand and lead to a greater reliance on gas-fired plant. Electricity generation is a key indicator for the U.S. Energy System. The Big Picture These indicators together provide a measure of energy resilience in the United States. The oil and gas industry shows a strong supply, while power generation and refined products show a steady demand. Gas storage and fuel availability are tracked. The data indicates that the energy system is well-supplied. As tensions in the Middle East rise and domestic demand continues to climb, these metrics can reveal if the United States has built new resilience or relying solely on ever-thinner margins for spare capacity. These are the opinions of the columnist, who is also an author. This column is great! 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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Authorities say that two people were killed and 17 injured in Russia's South by air strikes from Ukraine.
Regional authorities reported on Monday that two Ukrainians were killed and '17 other people injured in air strikes against the southern Russian cities of Rostov on Don?and Belgorod. Local authorities in Ukraine reported that Russian strikes in Ukraine killed one person and injured seven others. Regional governor Yuri Slyusar'said that in Rostov-on Don, a major hub for export near the Sea of Azov a couple of the same?family were killed, and five others were injured, two of them in a critical condition. He added that falling drone debris blew out windows in a residential apartment building and caused fires. Separately, the regional authorities in Belgorod said that a drone strike had injured 12 people including two children and set fire to a residential building. In Ukraine, Zaporizhzhia Regional Governor Ivan Fedorov stated that a guided aerial?bomb and drone attack killed one person and injured two in the southern city which has been heavily bombarded in recent months. Oleh Hryhorov, the regional governor of Sumy, Ukraine, said that a Russian-guided aerial bombing attack inflicted injuries on?five people. Could not independently verify the reports. Both Russia and Ukraine deny that civilians were targeted in the war that was launched by Russia's full scale invasion in February 2022. (Reporting and editing by Christian Schmollinger, Michael Perry and Jekaterina Glubkova from Tokyo)
Document shows that India's MRPL is seeking crude through a tender, avoiding the Red Sea and Hormuz.
A tender document released on Monday showed that India's state-owned company Mangalore Refinery & Petrochemicals Ltd is looking to import oil through a spot tender. For the first time, the tender asked suppliers to avoid the Red Sea and Strait of Hormuz. The Houthis of Iran, who want to stop Saudi exports and expand the U.S./Iran conflict, have been disrupting Red Sea traffic off the coast of Yemen for the past week. In a bid document, MRPL stated that "Crude loading/transit through the Red?Sea or SoH must be avoided." The tender sought?upto 1 million barrels on a delivered basis between?August 25, 2016 and September 6, 2016.
This is the first Indian refiner that has included such a clause when it comes to its spot crude import bids. The company had not awarded its previous oil tender.
MRPL didn't immediately respond to a comment request.
MRPL is taking a "precautionary approach" to avoid a possible?supply interruption along two of the most important maritime?oil trade /routes in the world, according to a source with knowledge of the situation.
Source: The new clause will continue to be included in future import tenders, if the situation in the Middle East doesn't improve.
MRPL is a'subsidiary' of the state-run explorer Oil and Natural Gas Corp. It operates a refinery that produces 300,000 barrels of oil per day in Karnataka, a southern Indian state.
(source: Reuters)