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Sources: Freight rates for Russian crude oil increase due to security concerns and vessel availability
Three trade sources reported that freight rates for tanker shipments of Russia's flagship Urals oil from western ports to India - the grade's primary market - have risen in August due to a'strong demand' for vessels as well as mounting security risks relating to transporting Russian oil. Shipping costs are increasing, which is hurting the revenues of Russian oil producers who already face Western sanctions as well as a challenging geopolitical climate. Conflict in the Middle East has also impacted global shipping routes, which have boosted freight markets. The Strait of Hormuz is one of the most important chokepoints in the oil trade. Sources said that the freight rates for Suezmax tanks?carrying 140,000 metric tonnes of crude oil from the Russian Black Sea Port of Novorossiysk, to India, have risen to almost $20 million, the highest in many years. They were around $13 millions last month. This steep rise reflects the growing concern among shipowners about security risks in the Black Sea where drone attacks have disrupted port operations on numerous occasions and damaged vessels. Due to disruptions in Novorossiysk, oil shipments from Russia's west ports fell by 15% during the first half August. The market for Russian Black Sea loads is very tight. "Owners are demanding much higher rates as compensation for the risks and many are still unwilling to take these voyages," said one trader. In recent months, attacks have caused a'regular' interruption of loading operations in Novorossiysk. This has forced exporters and traders into alternative shipping arrangements. Sources in the industry said that despite the high earnings, many shipowners are still hesitant to send vessels "to Russian Black Sea Ports" due to concerns about the safety of the crews and the ships. The freight rates have also risen dramatically on other Russian export routes. Sources claim that the average cost to transport an Aframax cargo weighing 100,000 metric tons from the Baltic port Primorsk in India to India is now around $13 million, compared to $8 million at the beginning of July. The demand for tankers at Russia's Baltic port has increased as exporters try to divert cargoes away from the vulnerable Novorossiysk and towards the?Baltic. This is causing a shortage of vessels, which in turn pushes rates up. India remains one of the biggest buyers of Russian crude oil, taking a large share of exports from Europe that were redirected after Western sanctions and trade embargoes changed the global oil market flows following the outbreak in the Ukraine conflict.
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Nigeria's president orders rescue after mass kidnapping
On Tuesday, Nigerian President Bola Tinubu directed the military and other security agencies to immediately launch a rescue operation after scores of people were abducted by armed men in Niger State's north-central region last week. A video posted by an armed group on Facebook and WhatsApp shows what local residents claim to be 600 women, children, and older people who were allegedly abducted in an attack on a Mosque in the state. Could not independently verify this figure but, if confirmed, it would rank as one of Nigeria's most audacious and largest mass kidnappings over the past few years. In its first comments on the incident, the presidency called the attack cowardly. It also promised that the perpetrators would be brought before the justice system. "Terror won't cow Nigeria. Tinubu stated in a press release that "we will defend our people and protect our communities, as well as uphold the sanctity of life." Tinubu instructed security chiefs to "provide regular updates on the efforts to rescue abductees" and to "account for those taken". In parts of northwestern and northern Nigeria, heavily armed criminal groups frequently raid villages, highways, and schools. These groups often hold captives for weeks or months while demanding large ransoms. They have also expanded their operations outside of traditional strongholds. MacDonald Dzirutwe is reporting; Emelia Sithole Matarise is editing.
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After the Iran crisis, airlines gradually resume Middle East service.
Many airlines are restoring flights in the Middle East after the conflict caused by the U.S.-Israeli strikes on Iran. However, major carriers remain cautious and many routes will still be suspended into the fall. KEY POINTS Some destinations are still affected, although the majority of flights have resumed. Dubai remains one of the worst affected destinations. Several European and Asian airlines have extended their suspensions until October or later. Through late October, multiple Lufthansa Group carriers will suspend flights to Dubai and Beirut. British Airways, Air Canada and Wizz Air all extended their?suspensions' on Middle East routes. Air France, meanwhile, is moving toward resuming its Middle East destinations. AIRLINES WITH EXTENDED SUSPENsions Lufthansa Group - Multiple Middle East Destinations'suspended until October 24 for?Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways. IAG/British Airways: Dubai Tel Aviv Bahrain Amman Amman services suspended until 25 October, with reduced frequencies to be implemented when the services resume. Singapore Airlines suspends Dubai flights until October 24, Cathay Pacific: Suspension of Dubai service extended until October 25, and those to Riyadh till October 26. Wizz Air suspends flights to Dubai and Abu Dhabi from Europe until October 24. Amman flights will be suspended until September 21. Air Canada: Tel Aviv & Dubai services will remain cancelled until the middle of January 2027. KLM suspends flights to Dubai, Riyadh, and Dammam until October 24. Tel Aviv flights resumed on August 25, Finnair suspends flights to Dubai, which are usually operated in the winter, until March 27, 2027. AIRLINES MOVE TOWARD RESUMPTION Air France: Flights to Riyadh, Dubai and Beirut are suspended until September 1. (Compiled by Josephine Mason and Jamie Freed; edited by Matt Scuffham, Milla Nissi and Milla Nissi Prussak).
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Air India is seeking $1.5 billion in compensation from Tata and Singapore Airlines as losses continue to mount, according to sources
Air India wants $1.5 billion in equity from its owners Tata Sons & Singapore Airlines. This comes months after the second largest Indian airline reported a record-breaking annual loss. This would be the largest request for funding from Air India made public since Tata acquired control of the former government-owned carrier in 2020. The announcement highlights the challenges that the airline faces as it undergoes an overhaul worth billions of dollars, which includes the refurbishment?of its current fleet. Air India Express and the carrier posted combined losses in the fiscal year ending March of $2.33 Billion, which is more than twice the previous year's. Singapore Airlines has also suffered from the losses. Air India wants the money immediately, but the injection is likely to be done in tranches. Singapore Airlines will need to contribute to the proposed 'infusion' for the investment to be successful, according to one source. The two people stated that the company is looking for a new round of?equity. The two people said that discussions are still ongoing and there has not been a decision made on the request. They declined to be identified as they weren't authorised to speak publicly about the matter. Air India and Tata Sons have not responded to any requests for comments. Singapore Airlines, who owns about 25% of Air India said that it worked closely with Tata Sons in order to "support Air India's Transformation Programme" but refused to comment on its finances. AIR INDIA'S TURNAROUND EFFORT Air India was also affected by the ban on Indian carriers flying in Pakistani airspace, the disruptions to its international network caused by the U.S./Israeli war against Iran and the fallout of a fatal crash that killed 260 passengers last year. Tata Sons Chairman N. Chandrasekaran is preparing to step down from his position in February after months of disagreements, mainly over Air India's losses. Chandrasekaran said that Air India's turnaround may take up to 10 years. He cited the persistent disruptions in the supply chain and the need to revamp the legacy systems, culture, and fleet of the airline. Tata has reportedly pressed Air India to reduce costs and record losses as it presses the airline to cut costs. One of the sources said that Air India would continue to require capital infusions over the next few years. (Reporting and editing by Abhijith Gaapavaram, Aditya Kahlra)
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Sources say that Russia will extend the ban on diesel exports through September.
Three industry sources have confirmed that Russia will extend its diesel export ban until September due to the?fuel shortages on the domestic market. Three industry sources told us that the extension of the ban to the end of this year was also being discussed. The Russian Energy Ministry did not reply to a comment request. The ban was introduced by Russia from July 8 until July 31, as part of a package of measures designed to support the domestic market. It was later extended to fuel producers up to August 31. Russia has also banned the export of motor gasoline and diesel to non-producers until January 31, next year, and jet fuel till November 30, 2026. Fuel shortages returned in some areas in?August, after a brief improvement late in July when local authorities eased or lifted restrictions. One market source stated that the diesel export ban may be adjusted based on the growth of output as Russian refineries finish unscheduled maintenance following attacks. Alexander Novak, Deputy Prime Minister, said that the government has not yet decided whether or not to lift the ban. He added that there is no diesel shortage in the domestic market. Novak reported that several refineries had completed their maintenance and were now supplying more fuel. (Reporting and Editing by Jan Harvey).
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United Airlines anticipates sufficient Airbus A321XLR delivery for Europe expansion in 2027
United Airlines announced on Tuesday that it will receive enough Airbus A321XLRs to support its European expansion in the summer of next year. The carrier is pushing into smaller markets and expects the travel market in the region to remain strong through the fall months. Chicago-based airline, American Airlines, plans to use its single-aisle, long-range jets on five new European routes by 2027. These include Luxembourg, Ibiza in Spain, and Toulouse in France. The airline is expanding to ten new cities in Europe and Asia, which will be the largest expansion ever in its history. Patrick Quayle is United's senior Vice President of Global Network Planning and Alliances. He acknowledged that the A321XLR has "a few teething problems" but stated that the airline will have enough aircraft to fly the routes. He told reporters that he was confident of having the aircraft required to meet the flight schedule. Air Canada and other airlines have also experienced delays in receiving A321XLRs due to Airbus's production and supply chain constraints. United plans to start international flights with the A321XLR aircraft from Washington Dulles Airport to Amsterdam and Dublin on December 1, 2026. A321XLRs will also be used to phase out United's aging Boeing 757 fleet. Quayle stated that United will phase out their 757s when the A321XLRs enter service and that the fleet plans are constantly updated to take into account delays in aircraft manufacturing. Airbus delays have slowed the introduction of United's A321neo coastliner fleet for premium transcontinental flights. EUROPE TRAVEL DEMAND STRENGTHENS INTO AUTUMN United Airlines' expansion is a result of the airline's belief that more European routes will be viable later in the year. Quayle stated that schedules were no longer cut so sharply following the U.S. Labor Day Holiday, and the season was now extending well into November or October. He said that the schedule was not being lowered as quickly as it used be after Labor Day. Air Canada announced this month that the revenue for September and October will likely break records, as more premium travelers choose to avoid the summer heat and crowds in Europe or Japan. United stated that it has not seen a decline in European travel due to extreme heat this summer. Quayle stated that demand was "incredibly strong". (Reporting and editing by Jamie Freed; Rajesh Kumar Singh)
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Merz: Germany will soon reveal who is behind the attempted drone attack at an airport
Friedrich Merz, the German Chancellor, said that the German government will soon reveal who is responsible for an attempted drone attack on Leipzig/Halle Airport earlier this month. Merz, speaking at a summit of the coalition, said that his government "works closely with security authorities to this end, and will soon set out this issue?and make a comment about it." Local?media cite security sources that suspect Russian intelligence of involvement in the attempted attack. Berlin, however, has not made direct accusations. A drone with explosives was discovered on August 4 near an Antonov cargo plane used for military supplies. Investigators suspect a second drone 'collided with DHL cargo aircraft soon after the temporary closure of the airport. The airport is used as a military and cargo logistics hub by Ukraine's Antonov Airlines and NATO for?military supply. German investigators found a third drone, and suspected explosives connected to the attempted assault ten days after the incident. Media reports said that the drone was discovered to the west of an airport. Investigators found about 50 grams of what they believed to be the explosive military hexogen. The office of the?prosecutor general refused to comment on the report. Moscow has denied involvement in the incident. (Written by Friederike Hine; edited by Clarence Fernandez, Miranda Murray and Miranda Murray).
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Kazakhstan reduces 2026 oil production target after Ukrainian CPC strike
Erlan Akkenzhenov, Energy Minister of Kazakhstan, said that the country has reduced its oil production target for 2026 to 96 million metric tons from 98 millions due to Ukrainian drone strikes on the Caspian Pipeline Consortium. CPC transports around 80% Kazakhstan's oil via the Russian Black Sea Port of Novorossiysk. In recent months, tankers that serve the outlet were targeted by Ukrainian drones. This drew criticism from Kazakhstan. Akkenzhenov, speaking to journalists in Astana said: "The oil-production plan will be adjusted because of the attacks against the CPC... Due to the 'attacks in January, and the ongoing attacks throughout June and July, approximately 3.5 millions tons were lost." "We had originally planned to produce 98 millions tons but now our target has been reduced to 96 million tonnes," he said. Kazakhstan, Central Asia’s largest economy, is heavily dependent on the CPC. It accounts for 2% of daily global oil supply, but it's also heavily reliant upon CPC. Capacity constraints prevent alternative export routes, such as across the Caspian Sea or to Azerbaijan or Turkey. Kazakhstan supported Ukraine's territorial unity while condemning Ukrainian attacks against the CPC. Akkenzhenov stated that oil exports via the CPC are operating normally at present. Kazakh President Kassym Jomart Tokayev publicly urged Russian president Vladimir Putin and Ukrainian President Volodymyr Zelenskiy to pursue peace talks. Akkenzhenov said that planned maintenance on the Karachaganak gas and oil condensate fields is expected to begin in mid-September. Production losses are estimated between 400,000 and 450,000 tons. He added that the Kondensat oil refining plant in western Kazakhstan near the Russian border will process Russian crude and 70% of the refined products will be shipped back to Russia. He added that small volumes of Kazakh petroleum products have already been shipped to Russia. As Ukraine intensifies drone attacks against its refineries, Russia is experiencing fuel shortages. Reporting by Tamara Vaal. Felix Light wrote the article. Editing by Vladimir Soldatkin, Mark Potter and Mark Potter
Nigeria's president orders rescue after mass kidnapping
On Tuesday, President Bola Tinubu of Nigeria ordered the military and other security agencies to immediately launch a'rescue operation' after scores of people were abducted by gunmen last week in the north-central part of Niger State.
A video posted by an armed group on Facebook and WhatsApp showed what residents claimed were 600 women, children, and elderly people who had been abducted in an attack on a Mosque.
Could not independently verify this figure but, if confirmed, it would rank among Nigeria's biggest and audacious mass abductions of recent years.
Officials from Borgu district, where the attack took place, confirmed that 30 people were killed in the attack. They were buried on Sunday.
Officials from the communities of Dakera Gidan-Zana Sabon Gida have been affected, according to an official who refused to be named because she wasn't authorised to talk to the media.
"WE WILL DEFEND?OUR PEOPLE"
In its first public comments about the incident, President Obama condemned the attack and called it cowardly. He also promised that the perpetrators would be brought to trial.
"Terror won't cow Nigeria. Tinubu stated in a press release that "we will defend our people and protect our communities, as well as uphold the sacredness of human life."
Tinubu instructed security chiefs that they should provide regular updates on the efforts being made to rescue abducted persons and to account for those who have been taken.
Abubakar Umar is the traditional leader of the Dakera Community. He said that at least 2,000 people fled into the Benin Republic after the attack.
Obed Nana told me by phone that the authorities are still trying to verify how many people have gone missing.
Nana said, "I'm not going to speculate too much about this because you already know how sensitive information like that can be."
In parts of northern and central Nigeria, heavily armed criminal gangs regularly raid villages, schools, and highways. These groups hold their captives for weeks or even months, demanding huge ransoms. They have also expanded beyond the traditional strongholds of the north. Reporting by MacDonald Dzirutwe from Lagos, Ahmed Kingimi from Maiduguri, and Hamza Ibrahim from Kano. Editing by Emelia S. Sithole-Matarise.
(source: Reuters)