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UK maritime agency reports an incident east of Yemen’s Aden
United Kingdom Maritime Trade Operations announced on Tuesday it had received a report about an incident involving a vessel located 100 nautical miles east from Yemen's Aden. This was the first time the agency reported in this area for months. UKMTO reported that the vessel's crew was safe and was moving to its next port after it had been followed for two hours by multiple small vessels with shots fired. The agency stated that it was investigating this incident without naming any potential attackers or the vessel. Yemen's Iran aligned Houthis launched more than one hundred attacks against shipping in November 2023. They claimed to be in solidarity with Palestinians regarding Israel's conflict with Hamas. The group was responsible for a massive offensive during which it sank at least two ships, captured another, and killed four seafarers. This caused global shipping to be disrupted, forcing companies to change their routes. The Houthis have not yet commented on the latest attack reported to the UKMTO. After a ceasefire in Gaza between Hamas, Israel and the Houthis in January, they briefly halted their attacks. The Yemeni group, however, vowed in March to resume its attacks on Israeli ships as Israel refused to lift the blockade of aid entering the Palestinian enclave. The Yemeni group has also promised to continue its attacks on ships after the U.S. launched their biggest and most deadly military operation in Yemen, since U.S. president Donald Trump assumed office.
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Operator says UK power grid may face lowest demand ever this summer
The National Energy System Operator (NESO), which is responsible for the UK's electricity grid, said that the National Energy System Operator expects the power grid to be well-supplied this summer due to the renewable energy generation and the cheap imports of power from Europe. In its summer outlook for April to October, NESO stated that the electricity transmission network may need to operate below its lowest level ever at certain points. This would be less than June 2020, when COVID-19 lockdowns reduced electricity demand to below summer normal levels. The peak demand for electricity is expected to be 29,7 GW in the summer. Solar power production has already reached record levels in March and April this year. At 12,68 GW it is more than Britain’s total import capability from interconnectors to Europe. The report stated that Britain will also benefit from the importation of power from Europe in the summer, due to the availability of conventional power plants. The NESO must ensure that the grid receives a minimum amount of electricity to maintain balance. In its report, NESO stated that it expects to have enough supply to meet the demand and operational reserves requirements for all of this summer. The company said that the tools were in place to manage its network during times of low demand. These included Negative Reserve Active Power Margin notifications, which are a way for Britain's electricity plants to reduce output to maintain grid stabilty. (Reporting and editing by Bernadettebaum)
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Discounts on Western Canada Select Heavy Crude are now wider.
On Tuesday, the discount between West Texas Intermediate (WTI), North America's benchmark futures contract, and Western Canada Select (WCS), a heavy crude from Western Canada (WCS), widened. WCS for delivery in May at Hardisty, Alberta settled at $9.30 per barrel below WTI according to brokerage CalRock. It had settled at $9.10 per barrel under the U.S. benchmark Monday. * The WCS Discount briefly increased last week, following an oil spillage in North Dakota that caused Keystone Operator South Bow to temporarily close the 4,327 km (2,689) pipeline between Canada and the U.S. It has returned to historically tight levels due to increased demand for heavy oil as a result of U.S. sanctions against countries that produce heavy crude, such as Venezuela. Also, Mexico's heavy crude exports have decreased. * The global oil price was little changed Tuesday, as investors digested headlines about President Donald Trump's on and off again tariffs. They also tried to determine how much the U.S. China trade war would reduce global economic growth. (Reporting and editing by Mohammed Safi Shamsi in Calgary)
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Exxon consortium begins installation of floating oil facilities in Guyana
The maritime regulator of Guyana said that a consortium led by U.S. Exxon Mobil was about to start the installation process for its fourth floating oil-production facility. Singapore's floating storage and offloading facility (FPSO), 'One Guyana', built by SBM Offshore, with a capacity of 250,000 barrels per day, left mid-February. The vessel, once installed, will allow the consortium's output to reach 940,000 bpd by the end of this year. After upgrades to two of the three facilities, the group will produce an average of 616 000 bpd by 2024. In the next two years, Guyana is expected to receive another two vessels. One Guyana allows the Exxon-led group, which controls the entire production in the country to develop the Yellowtail, and Redtail fields. These are located on the massive Stabroek Block, where over 11 billion barrels worth of recoverable gas and oil have been discovered. Exxon didn't immediately respond to a comment request. The maritime regulator said that the installation will be completed by the end the year.
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China's Cofco hires dozens of farm workers in Brazil
Cofco International, The building is constructing its biggest export port Terminal in the World in Brazil said Tuesday that China's state run food group is hiring dozens of people in South America's farm powerhouse. The move highlights the importance of Brazil for the company in the midst of an escalating trade war between the United States of America and China. This tends to increase sales of agricultural products such as soybeans from South American to Asian nations. Cofco's hiring spree in Brazil also comes as U.S.-headquartered competitors like Archer-Daniels-Midland Co and Cargill cut costs and headcount worldwide. Cofco responded to a question after a recruitment event by saying that there are vacancies in various departments and hierarchy levels. The majority of these are in the areas of operations, sales and trading, and administrative. It did not comment on the specific effects of tariffs on the Brazilian operation nor did it indicate how many jobs are available at the moment. Cofco has invested in Santos, the top soybean port of Brazil. It is also one of Brazil's biggest grain exporters, as well as a source and exporter for oilseeds, cotton, sugar and coffee. Cofco, as part of its expansion plan, is building a new grain terminal in Santos. It is expected to become operational by the end of this year. Cofco has already begun the tests for the first phase of the construction. The company's capacity to export grains at Santos, which is currently 4.5 million tons, will rise next year when the second phase should be completed. (Reporting from Roberto Samora, Sao Paulo. Writing by Ana Mano. Editing by Margueritachoy.)
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First oil vessel to be demolished in Brazil a year behind schedule
People familiar with the situation said that a dispute between the state-run oil company Petrobras, and the steelmaker Gerdau, will delay the first decommissioning of an oil production ship in Brazil by at the very least one year. This is a major setback for the local shipyards. Petrobras has plans to invest $9.9 billion over the next five-years to retire 10 more ships of this type. P-32 (a 45,000-ton production, storage, and offloading vessel, or FPSO) was scheduled to be decommissioned by December 2024, under a new Petrobras Sustainability Program. Benito de Oliveira Goncalves, head of the local metalworkers' union in Rio Grande do Sul, said that the work started only last month. He claimed that a dispute between Petrobras, Gerdau and the removal of petroleum residues on the vessel has stalled all work for over a year. A person who was familiar with the situation, but asked to remain anonymous, stated that the ship arrived at the yard with 30,000,000 liters (oily water) and 270,000 liters (marine diesel) on board. There had been no agreement on how to pay to remove the fuel. Goncalves confirmed that the marine diesel had been pumped and sold to the local refinery. However, the oily water must still be removed before the hull is broken down. The other person stated that a company should be hired by next month to do this work. Petrobras' executive who requested anonymity said that the oil company was in discussions with the steelmaker, but there had been no agreement about how the costs would be split. The extra costs have not been paid by anyone yet. Petrobras responded that any contract issues would be discussed between the parties in private. Gerdau stated that the dismantling process is underway, and all procedures are being carried out "responsibly". Ecovix which operates the Rio Grande Shipyard declined to comment. Gerdau purchased the P-32 in 2023 along with a second vessel (P-33) for an undisclosed sum. The deal gave Gerdau the right to demolish and recycle scrap material from the vessel. This contract was historic, as it introduced a new business plan for Brazilian shipyards who have struggled for years. Former metalworker Luiz inacio Lula da So has made it his priority to create jobs at Petrobras shipyards. The company has also ordered several new ships. The Rio Grande Shipyard in southern Brazil is yet to reap the benefits of the decommissioning works due to the P-32 dispute. One source stated that the costs associated with the ship at the shipyard had already exceeded the value signed between Gerdau & Ecovix for the dismantling of the vessel, which was around 30 million Reais ($5.13million). Sources said that if the shipyard delays in dismantling P-32, it may also lose the contract for P-33 as the yard has other projects lined up including four vessels to be broken down by Petrobras.
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Jordan purchases approximately 60,000 T of wheat at tender, traders claim
In an international auction held on Tuesday, Jordan's state grain buyer purchased around 60,000 metric tonnes of hard milling Wheat to be sourced optionally. They said that it was estimated to have been purchased from Cargill for $263 per ton, including freight (c&f), with shipment scheduled to take place in the second half August. Traders have received information that Jordan will be issuing a new tender for 120,000 tonnes of wheat in the next few days. The deadline for submission of offers is April 22. Shipments will be requested in different combinations during the months of July and September. The following trading companies also participated in the tender on Tuesday, according to traders: CHS $265.95; Viterra $279.99; Ameropa $250; Buildcom $271.77; and Al Dahra $259.90. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. Jordan purchased 60,000 tons of wheat from Cargill in its previous tender held on April 8 at $264 per ton C&F for shipment during the first half August. Jordan has also closed a separate bid for 120,000 tons animal feed barley. Michael Hogan and David Evans (reporting)
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Rhine Shipping Improved by Rain, but River Level Still Too Low
Commodity traders reported on Tuesday that despite the slight increase in Rhine water levels due to recent rain, they are still less than half full and have not seen any significant improvement. One commodity trader stated that "water levels have only increased by a few centimetres, and it is urgently necessary to get more rain." "Problems have not been solved." Traders said that the extreme lack of rainfall in March and April has resulted in low water levels on the entire river, south of Duisburg, Cologne and the chokepoint at Kaub. The number of vessels delivering cargo is increasing, but the volume of freight continues to increase. The rain in southern Germany has raised the water level at Kaub by four centimeters since last Friday. This was enough for ships to pass Kaub with just over 1,000 tons of cargo, compared to only 870 on Friday. The price of a tanker cargo ship sailing from Rotterdam, to Karlsruhe was unchanged on Friday. It is now 86 euros per ton. This compares to 46 euros at the beginning of April and 34 euro in March. In shallow water, vessel operators charge surcharges to compensate for not fully loading the vessels. This increases costs for cargo owners. The cost of shipping cargo increases when it is shipped on multiple vessels rather than one. This week and next, more rain is expected in German river catchment regions. This could lead to improvements. According to the Rhineland-Pfalz state's environment ministry, water levels in Kaub are expected to rise another 17 centimetres before Thursday night. The Rhine is a major shipping route for grains, minerals and ores. It also carries coal, oil products, heating oil, and other oil-based products. German companies experienced supply problems and production issues in summer 2022, after a heatwave and drought caused unusually low Rhine water levels. (Reporting and editing by David Evans, Michael Hogan)
Treasury: Italy to sell assets worth 0.8% GDP by 2027
The Treasury's multi-year budget plan revealed that Italy will sell assets worth close to 1% or more of its gross domestic product by 2027 in order to stabilize its state finances.
Giancarlo Giorgetti, Economy Minister of Italy, said that the government will continue to pursue a plan announced in January to sell assets valued at around 20 billion euros (about 23 billion dollars). However he noted that due to current market volatility caused by U.S. Tariff Policy it was necessary to proceed with caution.
The Treasury's Document of Public Finance published late Thursday included new debt projections that factored in the sale of assets worth 0.1% of the GDP in this year, 0,2% in 2026, and 0.5% of 2027.
According to the latest government projections, Italy's debt is expected to reach 136.6% this year, up from 135.3% by 2024.
In 2026, the debt is projected to reach 137.6% before falling to 137.4% by 2027.
Since her appointment in late 2022 as Prime Minister, Giorgia Melons has sold stakes in the bailed out bank Monte dei Paschi di Siena (MtP) and energy group Eni to raise more than 4 billion Euros for state coffers.
Italy's long-promised plan to divest assets from the state includes selling up to 14% stake in financial conglomerate Poste Italiane. This transaction could be worth nearly 3 billion euro.
In the document, it is also mentioned that property sales are expected to reach more than 800 millions euros per year between 2025-2027.
(source: Reuters)