Latest News
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Petrobras lets distributors pay in installments for a 55% increase in jet fuel
Petrobras, the state-owned oil company in Brazil, said that it would allow distributors to pay in installments for a hefty increase announced in April's jet fuel price. Petrobras announced a 54.8% increase in jet 'fuel prices following the spike?in oil prices attributed to the U.S. and Israeli war against Iran. Petrobras stated in a press release that paying in installments would help to mitigate the impact on customers of the price hike while maintaining "financial neutrality" for the company. The oil firm said that distributors who supply airlines will face a'smaller 18% price increase in April and be allowed to pay the remainder in six instalments starting in July. Petrobras, the world's largest oil company, is responsible for the majority of refinery activity in Brazil. Reporting by Rodrigo Viga Gaier, Gabriel Araujo, and Andre Romani, in Sao Paulo. Editing by Louise Heavens.
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French Navy chief: China must engage in Strait of Hormuz discussions
France's Navy Chief said that China will at some point need to be more direct in restoring oil traffic flow through the Strait of Hormuz, as the number of vessels going through the Strait is likely to be inadequate. "We haven't seen the Chinese navy intervene to reopen this strait. There is a direct political discussion between Chinese and Iranian officials to allow a certain number vessels to pass. Will this be enough to restore normal flow of traffic? I don't believe that, said Admiral Nicolas Vaujour at the War & Peace Security Conference in Paris. "As a consequence,?China is likely to have to engage in more direct?the discussion and show its impatience at the fact that the Strait remains closed." Vaujour stated that France is working to get a number countries to the same table on a political level to first determine the conditions in which the strait can be reopened?in a permanent way. They were studying the Agenor mission, which was led by the EU and operated in the Strait of Gibraltar. He said that the military was also assessing if mines had been buried and would have to be "cleared". "This is not just a French question. This is a question that concerns all of our partner countries: Gulf States, the United States, and other European 'countries. It is a matter we are working on, if mining is confirmed. This hasn't been done yet. (Reporting and editing by Dominique Vidalon, Daniel Wallis, and John Irish)
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Aeroflot's CEO has said that the management of Russia's Aeroflot will recommend dividend payments in 2025.
In an interview on Rossiya-24, the airline's CEO Sergey Alexandrovskiy said that management will recommend dividends to be paid in 2025. As management, we're currently working on options & recommendations for?the payment dividends. He said that the management will "make a recommendation" regarding the payment of dividends in 2025. Aeroflot has paid a dividend to its shareholders of 5.27 roubles per share ($0.0654) for 2024. This is based on a new policy that stipulates the payment of 50% of adjusted net profits according to IFRS. Alexandrovskiy said that despite the market turmoil, he would keep his forecasts of air traffic and financial performance unchanged for 'the current year. Aeroflot carried 55.3 million passengers in the last year. This represents an increase of?0.1% on a year-over-year basis. Alexandrovskiy stated earlier that the company aims to maintain its traffic volume at least at the level of?2025 this year.
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CEO Ryanair says that if the jet fuel supply is disrupted in June, Ryanair may cancel flights.
Michael O'Leary, CEO of Ryanair, said that jet fuel supplies to Europe could be disrupted as early as June if the Middle East Conflict?does not?end in the next few months. This would force the airline and its competitors to cancel flights during the summer. O'Leary stated that the Irish airline, Europe's biggest by passenger number, holds daily calls with its fuel suppliers throughout Europe to assess supply, which they say will remain steady until the end of may. If this (the conflict) continues until the end of April we will be facing a supply risk in early June. O'Leary said at a press conference that if the conflict continues?into may, we won't be able to tell what's going on. "If the fuel supply is at risk of being 10% or 20% in June, July, or August then we will be forced to cancel some flights or reduce capacity." NO KNOCK ON IMPACT TO FARES O'Leary told Sky News that the supply disruption would begin in May. He later changed his mind. He said that the budget airline would cut flights on an ongoing weekly basis, focusing on airports with limited fuel supplies. Ryanair cannot afford to cut out routes that are losing money, as European airlines earn most of their profits from June through September. The United Kingdom, which imports oil from Kuwait in large quantities, is the European market that faces the greatest risk of a possible?jet-fuel shortage. The International Air Transport Association warns that the impact of the war on supply will be felt most in the Gulf region, where 25%-30% of Europe's demand for jet fuel is sourced. On Wednesday, the head of the International Energy Agency said that oil supply disruptions would increase in April and start to impact Europe's economic system. The biggest problem is likely to be a lack of diesel and jet fuel. On Wednesday, European airline stocks rose in hopes of a deescalation. At 1455 GMT, Ryanair shares were up 4.1%. O'Leary stated that Ryanair is not experiencing a significant impact from the conflict on its airfares so far and still expects to see ticket prices rise between 3 to 4% per year from April to June. Traffic will also grow about 5% during that time period. (Reporting and writing by Sam Tabahriti in Dublin, Editing by Sarah Young & Jan Harvey).
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Switzerland says that cancelling the U.S. Patriot system order is an option
It said that the 'Swiss Government will continue withholding payments to the United States for an order of a Patriot missile system until Washington gives definite delivery dates. In a recent statement, the government stated that payment milestones and delivery dates are still 'uncertain. Defence Minister Martin Pfister stated that the government still expects to purchase the system but is not ruling anything out. He told reporters in a press conference that he was currently negotiating with the United States all possible options, including a termination. However, he did not specify what conditions would be required for any cancellation. The government announced that it has brought forward the payment for a F-35A fighter jet order until the end of March 2026 in order to avoid any potential problems with the procurement. The Defence Ministry has announced that it will inform the Swiss Federal Council by the end of June about the next steps in the procurement of Patriot systems. (Written by Miranda Murray, Dave Graham and Matthias Williams; edited by Matthias Williams).
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Nepal increases jet fuel prices sharply to avoid disruptions in supply due to the Iran war
Nepal has more than doubled the cost of aviation fuel as of Tuesday night, leading to a dramatic increase in fares. The Himalayan country is trying to avoid disruptions caused by the Middle East conflict. Nepal Oil Corporation increased fuel prices by 84.7% on international flights from Kathmandu. It also raised the price for jets flying from Pokhara by 116.2% and for Bhairahawa by 117.4%. The company said it needed to pay Indian Oil Corporation to obtain supplies. The state-run Nepalese agency that imports petroleum products, stores them and distributes them in the country has announced a 97.6% increase in jet fuel prices. According to the Civil Aviation Authority of Nepal, this has led to a 50% increase in domestic airfare. The increase in airfares is due to the current abnormal situation... and will harm passengers. The airline's spokesperson Gyanendra Bhull said that the prices will drop as soon as fuel prices decrease. Industry officials said that the 'fare hike' will hurt tourists and trekkers, as well as mountain climbers, especially because it is coming ahead of peak tourism season. Nepal has increased the price of petrol and diesel by 9.5% and 7.0% respectively and has started rationing cooking gases. Nepal, sandwiched between India and China, is completely dependent on fuel imports. (Reporting and editing by Jamie Freed, Arun Koyyur, and Gopal Sharma)
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Data shows that Russia's seaborne Diesel exports dropped 3% from February to March.
Data from market sources and LSEG revealed that Russia's seaborne gasoil and diesel exports dropped 3% between February and?March to 3.06 million metric tons, as drone attacks disrupted fuel loads at key ports. Sources said that the ultra-low-sulphur Diesel shipments from Primorsk in the Baltic, Russia's largest outlet for diesel exports fell to 1.713 millions tons, down 2.6% since February. Last week, Ukrainian drones repeatedly attacked the Russian Baltic ports Primorsk & Ust-Luga. Following drone attacks, the two ports halted oil and fuel loadings on March 22. The next day, a drone attack caused a fire to break out at a Primorsk storage farm. According to sources, the market reports that loadings of diesel and crude oil via Primorsk have resumed but at a?lower capacity than normal due to?damage in port infrastructure. The traders also said that a ban on tankers other than ice class entering Russian Baltic ports slowed down loadings in the last month. According to LSEG and market sources, diesel shipments from Novorossiysk port in southern Russia fell by 16% during March due to persistent storms and 'drone attacks'. LSEG data shows that last month, Turkey and Brazil were the two biggest buyers of Russian?gasoil and diesel tanker cargoes. However, tankers with a combined 0.353 million tonne of fuel still haven't declared their discharge ports. A second group of vessels, carrying about 0.62 millions tons of Russian Diesel, is heading for anchorages near Port Said and Limassol. Market sources said that ship-to-ship transfers increased in January, as Western sanctions tightened and tanker availability decreased. According to shipping data, Morocco, Ghana, and Syria were also among the top importers in March of Russian diesel cargoes. Mark Potter, Mark Potter (Reporting in Moscow)
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Israel's halt order threatens Energean’s $1 billion gas extension timeline
Energean, an oil and gas company, spends about $10 million per month to maintain its shut-in Israeli offshore operations. Mathios Riga said that the suspension of the war was a result of government security decisions. This followed the U.S. and Israeli attacks on Iran, which sparked the Gulf War. It's not revenue lost. He said that it was deferred revenues, and added that the company had over $300 million of liquid assets. Before the shutdown, Energyan produced 15 barrels of oil per day along with gas. After facility upgrades, Rigas stated that production would reach 20,000 bpd when?restarting, helping to offset deferred revenue. He said that the planned launch of Katlan in May, which Energean discovered in 2022, near two other 'projects' it owns, off Israel’s coast, would be delayed if there is no?resolution by then. However, it will have no impact if this war ends earlier. Expected to decrease EGYPT’S arrearages Rigas estimates that Egypt, Israel and Jordan and their neighbours require over 100 billion cubic meters (bcm), of gas per year, due to regional supply constraints and Egyptian domestic gas shortages. Energean has reserved capacity to supply 1 billion cubic meters of gas per year from Israel to Egypt via a planned pipeline. This is significantly cheaper than LNG imported. Energean has faced payment issues in Egypt, a country that is important to its growth. The outstanding receivables reached a peak of $250 million but Cairo recently paid out $80 million. Rigas said that "in tough times you stick with your partner," urging policymakers to ensure a 'consistent schedule of payments. "Pay, baby, pay. That's all." Rigas stated that Egypt's outstanding debt should drop to $60-$70 million if government honors its?promised payment of $125 million by mid-April. Egypt said that it "intends" to pay all arrears owed by foreign oil companies by June. Energean wants to optimize its Egyptian portfolio by merging three concessions, Abu?Qir Northeast Almreya North Idku, by the end of June. Energean, a company based in the United States, recently acquired a stake (along with Chevron) in an offshore Angolan oilfield. Rigas, while urging geographic diversification, warned against aggressive expansion in the face of high commodity prices. He said that the current market conditions are "not conducive to M&A".
France says that the US NATO is not a threat to Euro-Atlantic Security, but rather serves its Euro-Atlantic security.
France responded on Wednesday to threats made by Donald Trump to pull out the U.S. from NATO. The military alliance, France said, was designed to ensure security in the Euro-Atlantic region and not to launch offensive operations into the Strait of Hormuz.
Trump said he would make a statement to the nation on Wednesday saying that he "absolutely' was considering withdrawing from NATO. This echoed comments he had made in a British Daily Telegraph interview after allies refused to support U.S. Military action against Iran.
French President Emmanuel Macron suggested a U.N. Framework for 'any action' in the Strait of Hormuz. This is a vital artery of global oil supply that Iran - has effectively closed. He said international efforts can only happen when hostilities have calmed, insurance companies and shipping firms are consulted, and Iran - consents.
"Let's remind you of what NATO is. NATO is a military organization concerned with the security of the Euro-Atlantic area. The alliance is not intended to conduct operations in the Strait of Hormuz as that would be a violation of international law", Junior Army Minister Alice Rufo said at the War & Peace Conference in Paris.
Rufo, a close ally and one of Macron's top diplomats said that she understood why the Americans were upset about France refusing to join a coalition in order to unblock immediately the Strait.
Paris said she preferred working on a plan that would restore freedom of movement and transit by using "non-offensive" means.
Rufo: "I understand this irritation but I'm not speaking for the United States."
"I speak for a nation that is a founding NATO member and founding EU member, which has said for 20 years that Europeans should take on a greater share of collective defense in Europe."
Three sources said that France had sparked Trump's anger on Tuesday after refusing to allow Israel to use its airspace for the transfer of American weapons used in the war against Iran. (Reporting and writing by John Irish, Dominique Vidalon, Sudip Kar Gupta and Timothy Heritage).
(source: Reuters)