Asia / Pacific

Oil Refineries

The European Commission has proposed a reprieve from Russia sanctions for dealings with Chinese chip firm

A spokesperson for the European Commission said that it had proposed a nine month derogation on dealings with a Chinese semiconductor company listed in its 20th set of sanctions against Russia. The spokesperson stated that the company, Yangzhou Yangjie Electronic will remain on?European Union sanctions list, but the temporary reprieve?will allow automakers?to find alternative chip suppliers and?avoid?a "severe interruption"?. The EU will need to agree 'unanimously' on the proposed measure for it to come into effect. European automakers have become more dependent on Yangzhou Yangjie Electronic in order to replace products that were previously listed as being made by Chinese...








Energy Markets

Oil & Gas

Natural Gas Utilities

Vucic, Serbian President, says he's not optimistic about a deal being reached in time over the NIS oil company

Aleksandar Vucic, Serbia's president, said that he was not optimistic about the possibility of reaching an agreement over the Hungarian oil firm 'MOL's bid for a majority stake in NIS, operator of the Balkan country's only refinery. The deadline is Friday. Gazprom and Gazprom, two Russian oil companies, agreed to sell their majority 56% stake in NIS in January to?MOL after the United States demanded that Russian shares be divested due to sanctions imposed by the United States over Moscow's conflict in Ukraine. Washington has given MOL and the Russian companies until May 22th to complete the sale. This requires...

Oil & Gas

Indians switch to retail fuel pumps in search of cheaper diesel, causing a shortage

According to a government official, industrial customers are increasingly buying diesel at cheaper retail outlets run by'state-run' companies, rather than from the bulk supply points. This is causing shortages at the pump in some areas. Sujata Singh, joint secretary of the federal oil ministry, stated that diesel sales have increased by 20-30% in some areas. Industrial buyers are paying 40-42 rupees per litre more than retail prices. In New Delhi, the retail price for a litre is 91.58 rupees. Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp., all state-run companies, are now losing money because they're selling diesel...

Oil & Gas

Sources say that RPT-oil refining in central Russia has been halted after drone strikes by Ukraine.

According to official sources, almost all of the major oil refineries in central Russia have been forced to reduce or halt their fuel production due to recent drone attacks by Ukraine. Moscow has already banned gasoline exports from April to the end of July. Refineries which have stopped operations or are partially stopped, together, produce more than 83 million tons of?product per year. This is approximately 238,000 tons a day. According to anonymous sources and data, this represents around a quarter of Russia's entire refining capacity. Over 30% of Russia's gasoline is produced by refineries, and around 25% by diesel....

Oil & Gas

SpaceX IPO filing lays bare its losses and Musk's control as it stakes its future on AI

SpaceX released its IPO on Wednesday. It revealed to investors how much Elon Musk loses on?artificial Intelligence, while betting on the future of the company by transforming it into a rocket maker that is a powerhouse in AI. SpaceX's future depends on dominating markets and technologies that don't yet exist, from AI data centers to Mars missions. Musk's track record of turning Tesla into the world's most valuable automaker, developing the first reusable rocket and the largest satellite network and making it the most valuable company in the industry is enough for many to justify investing. Musk has tightened his...

Mineral Resources

Freeport Indonesia claims that wet ore is slowing Grasberg's recovery and the full ramp-up will be completed in 2027

The recovery process of PT Freeport Indonesia’s Grasberg copper and gold mine has taken longer than expected. However, the company anticipates that?operations will "approach" their full capacity by the end of 2027. In September of last year, seven workers died when 800,000 metric tonnes of wet material flooded Grasberg Block Cave. The Grasberg Complex is the second largest copper mine in the world and the largest gold mine. Global copper prices rose due to a disruption in production caused by the?mine. Freeport Indonesia CEO Tony Wenas stated in an interview with the company's headquarters in Jakarta that "we found out...

Oil & Gas

Snapshot-Indian stocks, rupees, swaps, and call at close

STOCKS: The benchmark BSE Sensex rose 0.16% to 75 318.39 while the broader NSE Nifty index grew 0.17% to 23,659, aided by a boost?from heavyweight Reliance Industries. Meanwhile, the Iran war-driven upswing of global borrowing costs weighed down on broader sentiment, and drove the rupee -to another record low. The Indian rupee fell 0.3% against the U.S. dollar to 96.82. Stalled U.S.-Iran peace?talks kept oil prices high, driving global bond yields higher?and hurting equities amid fears of 'further central bank?"rate hikes. Dollar to 96.82 as oil prices remain high due to the stalled U.S.Iran peace talks. This has pushed global...

Oil & Gas

Two Ukrainians killed in Russian attacks; Kyiv drones attack central Russia

Local officials reported that two people had been?killed? and 19 others injured overnight in Russia's attacks on Ukraine, while Ukraine sent drones into industrial areas of central Russia. Local authorities in Ukraine reported that two people died and six were injured when Russia attacked the city of Dnipro, located on the south-east coast, with artillery and missiles. Authorities?added that another 13 injuries were reported in the northern Sumy Region and the southern region of Zaporizhzhia. Three children included. We could not independently verify these reports. Russia and Ukraine deny targeting civilians. DRONES TARGET INDUSTRIAL AREA?IN RUSSIA According to Russian officials...

Oil & Gas

Bessent will examine US sanctions list and urge more disruption of Iran's financial system

Treasury Secretary Scott Bessent called on allies on Tuesday to disrupt Iran's.financing network and said that the Treasury would clear its outdated sanctions list to.make it easier for the financial institutions to.root out the most sophisticated terrorist funding schemes. Bessent said that after the G7 finance leaders met at Paris, participants in an anti-terrorism funding conference should "stand in full measure with us" against Iran. Bessent stated that "this will require our European partners, for example to join the United States by taking action against Iran, including by designating its financiers and unmasking their shell and front company, closing its...

Oil & Gas

Chairman of Bharat Petroleum India says that Bharat Petroleum reviews oil imports every day and buys more on the spot amid Iran War.

Sanjay Khanna, the chairman of India's Bharat Oil Corp. said that it is recalibrating its crude import strategy nearly daily and increasing?spot purchase after the U.S./Israeli conflict in Middle East disrupted Middle East supply. India, which is the third largest?oil?importer and?consumer in the world, has been affected by the rising crude prices as well as supply disruptions after the Strait of Hormuz was closed. South Asian nation raised retail petrol and diesel prices twice in one week. The refiner planned to purchase about 55% of its crude requirements for 2026/27 via annual contracts, mostly from Middle Eastern producers. Khanna stated...

Oil & Gas

Dombrovskis, EU's Dombrovskis, says that the G7 has not agreed on everything.

Valdis Dombrovskis, EU Economy Commissioner, said that the extension of a waiver for Russian sanctions showed that 'G7 members are not always in agreement. Dombrovskis stated that the G7 was a forum to discuss and cooperate with like-minded allies. He said, "But, well... we're not always 100% in agreement on everything. This is unfortunately one of those topics." He praised, however, the joint statement after the G7 meeting. It was said to be a positive outcome of the meeting between the central bank governors and finance ministers. Dombrovskis stated that he was reassured by the United States, who said that...

Oil & Gas

India Oil reports revenue losses on LPG in May

Indian Oil Corp., the country's largest fuel retailer, has suffered a revenue loss on the sale of one cylinder of LPG of 617 rupees, compared to 171 rupees back in April after the Iran war pushed up the price, according to its finance chief. Anuj Jain, an analyst, said that the company lost 100 rupees on the sale of 14.2-kilogram LPG cylinders, which are mainly used for cooking. Indian state-run fuel retail outlets sell LPG to households at discounted prices. India, the second-largest LPG exporter in the world, is experiencing its worst gas shortages in decades. The government has cut...

Oil & Gas

Minister: Italy will extend the fuel excise tax cut that expires this week

A top government minister announced on Tuesday that Italy would extend a 'cut in fuel excise duty due to expire May 22 as part of efforts to curb the soaring energy prices caused by the Middle East conflict. Matteo Salvini, Deputy Prime minister and Transport & Infrastructure Minister, said during an interview with RTL 102.5 that "we will definitely have to extend the excise reduction." It has spent about?1 billion Euros ($1.16 billion), so far, to reduce?excise duty on?petrol or diesel pump prices. The measure was first introduced in March, and then extended for the first time in late April....

Fossil Fuels

Jet Fuel

Sources say that Northeast Asia is the first region to ship jet fuel into Europe since the Iran War.

Shiptracking data and three trade sources have confirmed that the first cargo of jet fuel from Northeast Asia to Europe has been shipped since the Iran war began at the end of February. Asian supplies are up, but European commercial stock levels remain low. Shiptracking data from Kpler and LSEG, as well as a fourth source, showed that around 745,000 barrels of aviation fuel from Yeosu, South Korea, were loaded onto the Seriana from May 1-6, and then transferred to Yuan Lan Wan, near the Strait of Malacca, on May 18-21. According to LSEG and two trade sources, the volumes...

Fossil Fuels

UAE's Gargash warns against a renewed war, despite '50-50' odds for a US-Iran agreement

The advisor to the president of the United Arab Emirates said that there is a 50-50 chance of a U.S. - Iran peace agreement. However, he stressed that any settlement should address the causes of instabilities in the region, if it's to prevent future conflict. Pakistan is mediating a U.S. - Iran ceasefire in order to end a war that has shaken 'the global economy, and disrupted the trade through the Strait of Hormuz. This route is a major one for oil and liquefied gas shipments around the world. "There is a 50% chance that we'll reach an agreement." Anwar...

Fossil Fuels

Sources say that China's June fuel exports are set to increase slightly as restrictions remain in place

Three trade sources familiar with the issue said that China will only see a small increase in refined fuel exports from May to June, because Beijing plans to maintain export restrictions for a fourth month in order to protect domestic supply. Two sources said that June exports were estimated to be around 550,000 metric tonnes or slightly more than expected, compared to about 500,000 tons in May. The two sources and another person said that state oil firms must now seek approval from the government on a regular basis for every shipment they export. This is because China, the world's...

Crude Oil

Refined Products

Refined Products

Japanese auto exports to Middle East plummet in April due to war disruptions

The government reported on Thursday that Japanese car exports to the Middle East had almost been wiped out, as the U.S./Israeli war against Iran disrupted shipping into a region of importance for global automakers such as?Toyota? and?Nissan? According to the collapse, shipments of used Japanese cars and trucks to the region have virtually stopped following the closure of the Strait of Hormuz. The Ministry of Finance released data on Thursday showing that motor vehicle exports into the Middle East fell by more than 90%, both in value and volume, from the previous year. This highlights the auto industry's vulnerability to...

Refined Products

Russia announces it will support Cuba, as the U.S. tightens its 'noose.'

Russia announced?on Thursday it would provide active support to Cuba, despite efforts by the United States to 'intimidate' and tighten "sanctions" around the Communist island nation. The United States announced a murder charge against former president Raul Castro, Wednesday. This is a major escalation of Washington's war against Cuba. Maria Zakharova, spokeswoman for the Russian Foreign Ministry, told reporters that "we will continue to provide the most active support to a fraternal Cuban population during this extremely challenging period." "We reaffirm that we are fully united with Cuba. We condemn any attempts to grossly interfere in the internal affairs a...

Refined Products

Sources say that oil refining in central Russia has been halted after drone strikes by Ukraine.

According to official sources and data, almost all major oil refineries located in central Russia have been forced to halt or reduce their fuel production following recent drone attacks by Ukraine. Moscow has already banned gasoline exports from April to the end of July. Refineries which have stopped operations completely or partially, together, produce more than 83 million metric tonnes per year. This is approximately 238,000 tons of oil per day. According to anonymous sources and data, this represents a quarter of Russia's entire refining capacity. Over 30% of Russia's fuel is produced by refineries, and around 25% by diesel....

Refined Products

Chairman of India's BPCL says that the company reviews its oil imports every day and buys more on the spot amid Iran War.

Bharat Petroleum Corporation, India's state refiner. Sanjay Khanna, the chairman of Bharat Petroleum?Corp. said on Tuesday that it is recalibrating their crude import strategy nearly daily and ramping up its spot purchases following the U.S./Israeli conflict against Iran which disrupted Middle East supplies. India, which is the third-largest oil importer and consumer in the world, has been affected by the rising prices of crude and the disruption of supply following the closing of the Strait of Hormuz. South Asian nation raised retail petrol and diesel prices twice in one week. BPCL planned to procure about 55% its crude requirements?for 2026/27...

Refined Products

Japan's economy grew faster than expected in the first quarter

Data showed that Japan's economy grew by an annualised 2.1% in the first quarter. This was a good sign before the Middle East conflict caused a shock to the energy market. The rise in Japan's real Gross Domestic Product (GDP) exceeded the median market expectation of a 1.7% increase and came after a 0.8% increase?in October-December. The economy grew by 0.5% on a quarterly basis compared to the median market expectation of a 0.4% increase. Analysts predict that growth will slow down in the next quarters due to the 'fallout' from the Middle East conflict which has led to a...

Refined Products

The Indian cooking fuel shortage is driving California's gas price up

There is a cooking gas shortage in India. Californian motorists pay $6 per gallon for gasoline. Both are symptoms of the biggest ever disruption in energy supply. The two are directly related and show the impact of the U.S./Israeli war on Iran. The near-closure of 'Strait of Hormuz by Iran has caused global oil trade to be in chaos, and cut importers off from?around a fifth of global oil supplies that crossed the waterway prior to the war. Oil buyers have been forced to burn down their stockpiles to deal with the global fuel shortage. The pain is being spread...

Refined Products

INDIA BONDS - India bonds fall ahead of the auction due to fuel price hike and US debt crisis

Indian government bonds fell on Friday in the early trade, as domestic fuel prices?hiked inflation fears and U.S. Treasury Yields were at one-year-highs, reducing the appeal of emerging market?debt. This dampened demand before a 'fresh debt supply. By 11:30 am IST on Friday, the yield on the benchmark 2035 bond of 6.48% had risen to 7.0591% compared to 7.0203% Thursday. Bond yields are inversely related to bond prices. Delhi-based retailers announced on Friday that India had raised petrol and diesel by more than 3% or 3 rupees per litre for the first time since 2004. This was to make up...

Refined Products

As Middle East peace hopes fade, stocks fall and oil rallies

Wall Street's major equity indexes fell on Tuesday, and the dollar rose as U.S. inflation increased and oil gained for the third consecutive day. Hopes for a Middle East Peace Deal to allow ships through?the Strait of Hormuz faded. In April, U.S. Consumer Prices (CPI), rose sharply for the second consecutive month. This resulted in the largest increase in annual?inflation? in nearly three years. It boosted expectations that the Federal Reserve will keep interest rates the same for some time. Oil prices have risen due to the U.S. War on Iran. This has led to higher gasoline, jet fuel and...

Refined Products

Pentagon: US war on Iran has cost US $29 billion to date

A senior Pentagon official stated on Tuesday that the United States war in Iran has cost $29 billion so far, which is an increase of $4 million from an estimate given late last month. The Democrats have been able to gain a lot of ground in the public opinion polls, as they try to tie the war to cost of living issues. The Pentagon announced on April 29 that the war had already cost $25 billion. Jules Hurst who performs the duties of comptroller told lawmakers that the new costs included updated repair and replacing equipment?and operational expenses. Hurst stated...

Refined Products

US consumer prices continue to rise in April

Consumer prices in the United States?rose rapidly for a second consecutive month in April. This resulted in?the largest annual increase in inflation for nearly three years, and further reinforced expectations that the Federal Reserve will keep interest rates at their current level for some time. The Bureau of Labor Statistics of the Labor Department reported on Tuesday that the Consumer Price Index rose 0.6% in April after a 0.9% increase in March. The economists polled had predicted the CPI to rise 0.6%. Estimates varied from a gain of?0.4% to 0.9%. Moderation was largely mechanical after the biggest increase since June...

Refined Products

Calbee's chips colour removed due to Iran war

Japan's leading snack maker has come up with a 'creative solution' to reduce oil consumption: they will change their brightly colored packaging to black and white. Calbee, a Tokyo-based company, announced on Tuesday that it will only use two ink colors for a limited time, including the potato chips, Kappa Ebisen snack and the Frugra cereal. The new packaging is expected to hit the shelves on May 25. Calbee has the largest market share in the domestic snack market. The?initiative is aimed at stabilizing shipments due to unstable supplies of "certain raw materials", caused by the 'U.S. and Israeli war...

Mining

Russell: The impact of the closure on Chinese EVs is not limited to oil, but also extends beyond it.

The ongoing closure of the Strait of Hormuz may not seem to have much in common with the Indian diet cola consumers, but both are at risk. The world economy will be affected by the second and third round effects of the closure. This is because the price of refined fuels like gasoline and diesel has already increased. Electric vehicles (EVs), which allow drivers to reduce their dependence on fossil fuels, are widely considered one of the biggest winners in the current conflict between Iran and the United States. But EVs have a direct connection to the Strait of Hormuz,...