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Indian retailers increase fuel prices for the fourth time in a row to curb losses
Dealers said that India's state-owned fuel retailers raised diesel prices by 2.71 rupees ($0.0283) and petrol by 2.61 rupees per litre, marking the fourth increase in a month to recover some losses caused by higher crude oil costs as a result of the Iran War. Indian state fuel retailers who control 90% of the Indian market began increasing pump prices on May 15, after elections were completed in certain key states. Since then, the state companies have increased?the price of petrol and diesel by approximately 7.8% and 8.6% respectively. New Delhi petrol will cost 102.12 rupees per litre, and diesel 95.20 rupees. India, which is the third largest oil consumer and importer in the world, has been hit by rising crude prices as well as supply disruptions following the closure of Strait of Hormuz. New Delhi also implemented austerity measures in order to curb fuel consumption and control its oil import bill, as policymakers prepare for a prolonged shock. Prices vary across states because of local taxes. State retailers have also suffered a rise in?fuel losses as customers switch to retail pumps that are cheaper, leading to shortages. IOC said in a statement on Saturday that its retail sales for the period of May 1-22 were up?by 18% compared to a year earlier and petrol sales had increased by 14%. $1 = 95.6890 Indian Rupees (Reporting and editing by Christian Schmollinger, Sonali Paul and Nidhi Palyekar from New Delhi)
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Russell: China's thermal coal production drops, but prices of imported coal in Asia rise amid the Iran war.
Although the Iran war has impacted crude oil and natural gas prices, its impact on coal has been muted. Prices for thermal grades are quietly rising to multi-year heights. The conflict between the United States of America and Iran has led to the loss of about 10% of world crude oil, and a fifth of LNG, but thermal coal supplies remain largely unaffected. Even though the cost of shipping and producing has increased due to higher fuel prices. Coal prices are not solely driven by the?Iran War. Other factors, such as low Chinese production and Indonesian regulations, may be more influential. According to commodity analysts Kpler, Asia's seaborne thermal coal imports are expected to have their best month since December in May. The imports of thermal coal in Asia are expected to hit 76.26 millions metric tons by May, up 23 percent from April. This is also higher than the 72.83 million that were imported in May 2012. All of the top buyers in the region have seen gains. China, the largest coal importer in the world, is on course to receive 22.63 millions tons of seaborne thermal coal, up from 16.3 million tons in April, and the highest since January. China's appetite to import is driven by a weaker domestic production. April production was 385.63 millions tons, down from 440.62 in March and also 1% lower than April of last year. China's first four-month output fell by 0.1%, to 1.58 billion tonnes. The fact that China's thermal electricity production, which is largely coal-fired?rose by 3.6% during the first four month of the year suggests that the supply-demand balance in China has been tightened, encouraging imports. The Shanxi coal mine disaster, the worst in 17 years at a metallurgical mine that killed 82 people last Friday may cause a further shortage of coal as authorities increase safety inspections in both thermal coal and coking coal mining. China's increasing import demand has helped to lift prices?of grades it seeks. The commodity price reporting -agency Argus assessed Indonesian coal, which had an energy content 4,200 kilocalories/kilogram (kcal/kg), at $64.43 a tonne in the week ending May 22. This was a three year high and up by 42% from the end of last. Kpler predicts that India, as the second largest importer of thermal coal, will see arrivals of 13,78 million tons in May. This is the highest since June last years and 7.3% more than the 12,84 million recorded in April. Last week, heat waves drove electricity demand to new records. This boosted demand for coal-fired generators. INDONESIA CHANGES The world's largest coal exporter, Indonesia, announced regulatory changes last week that will have a significant impact on the way cargoes are traded. Indonesia intends to "take control" of the coal trade, by directing exports via a state-owned company that will control contracts and price. The government has said that it will honor existing long-term agreements, but it has also stated it reserves the rights to review the prices of such deals. By implementing a state control on exports, the government hopes to?stop under-invoicing' and collect more revenue. It's possible that the trade flow will be affected if there is still uncertainty about how the new system works in practice. Japan's thermal coal imports are expected to increase from 6.63 millions tons in April to 7.59 million tonnes in May. South Korea's arrivals will be 6.73 million tons, which is the highest since January, and up from 4.79 million tons in April. Both countries in North Asia are among the top four coal importers, and they are also the best positioned to switch from LNG imported natural gas to coal-fired electricity generation. Due to the Iran War, both spot and contract LNG prices are likely to rise sharply. Japan and South Korea may therefore seek ways to maximize coal-fired power generation. The price of high grade Australian thermal coal has risen as a result. The weekly assessment of Newcastle?Port rose to $133.09 per ton during the week ending May 22. This is up from $131.80 and only slightly below the 18-month-old high of $140.53 set in early April. Australia is the second largest coal exporter and may be in a better position to capitalize on any disruptions to Indonesian coal shipments due to regulatory changes. Its lower-grade coal could replace Indonesian coal. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
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New Zealand Pro surfers halted by 'wildlife injury' to photographer
The World Surf League event was put on hold for several hours after a photographer who was shooting the event suffered an injury from what organizers believe to be a shark or sea lion bite. The WSL announced that the New Zealand Pro semi final between Brazilian world champions Yago Dore and Italo Fereira in Raglan had been halted because the in-water camera needed medical attention after suffering puncture wounds. Renato Hickel, WSL Tours and Competition Vice President said that "this morning one member of the water photography group suffered a wildlife injury." He's fine, he is on his way to a hospital. He is in stable condition. We're in constant contact with him." Hinkle told the?event broadcast earlier that they weren't sure what type of animal caused the injury. At this point, we are not sure if it was a sea-lion or a shark. He said that the doctor who was on scene was inclined to believe it was a seal instead of a large shark. "Nevertheless, it was very frightening." The organizers will assess the situation on Monday and aim to resume competition at 1 p.m. (0100 GMT). Animal attacks at surf events are not uncommon, but they do happen. In 2015, world champion Mick Fanning famously wrestled with a shark during the final of WSL event in South Africa's Jeffreys Bay. Raglan, which hosted a world championship tour event for the first time ever, was short of its famously long left hand point break waves?for the majority of?the ten days leading up to the event. Monday's conditions were some of the best during the waiting period. Dora was ahead with a 6.33 to Ferreira's 3 pointer when their match was stopped. Morgan Cibilic, an Australian, had earlier defeated Griffin Colapinto of California with a total of '15.34' to a score 12.20. This earned him a place in the finals. Carissa Moore, Hawaii's Olympic champion and five-times world champion will face California's Sawyer Lindblad for the women's title. (Reporting and editing by Nick Mulvenney; Lincoln Feast)
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Oil and dollar decline on Middle East Peace Hopes
U.S. Stock Futures climbed on Monday, while oil and the dollar fell. The prospect of an agreement to end the Iran War boosted risk appetite. However, a lack of clarity about when the 'Strait of Hormuz' would open kept enthusiasm in check. Energy prices have soared in response to the nearly three-month war in the Middle East. Worries about inflation and the closure of the Strait of Hormuz, through which most world energy passes, has impacted global rates. Donald Trump, the U.S. president, said that he told his representatives on Sunday not to rush any deal with Iran. His administration also played down expectations of an imminent breakthrough. Trump said just a day before that Washington and Iran had "largely" negotiated a peace agreement that would reopen this waterway that, prior to the conflict, carried about one-fifth the global oil and LNG shipments. Brent crude futures fell over 4%, to $98.83 per barrel. U.S. West Texas intermediate CLc1 also dropped over 4%, to $92.03 per barrel. The euro rose 0.37% to $1.1646 while the Japanese yen climbed to 158.85 U.S. dollars in early trading, as the safe-haven dollar lost some of its recent gains. Nasdaq and S&P were both up 0.6%. Nick Twidale is the chief market analyst for ATFX Global. He expects that on Monday, investors will embrace more risk, but they won't surge higher until it has been confirmed that reopening of?the Strait?of?Hormuz. He said, "We need to reach an agreement in the next sessions because we know that there are still major sticking points." Nikkei, the Japanese stock market index, was positioned for a strong opening to Monday's trading session. Commonwealth Bank of Australia's strategists stated in a recent note that the most important issue for financial markets is when the Strait of Hormuz will reopen. They asked: "Under which conditions will the?Strait reopen, and how long will it take to repair production and infrastructure in order to ramp up energy production and other goods back to pre-war level?" (Reporting and editing by Stephen Coates in Singapore, Ankur Banerjee)
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Oil drops to 2-week lows as US-Iran is seen moving closer towards peace deal
Oil prices fell to a 'two-week low' on Monday, despite the fact that U.S. President Barack Obama and Iranian President Hassan Rouhani remain at odds on key issues. These include the blockades of the Strait of Hormuz which continue to limit oil supplies from the Middle East. Brent crude futures fell $4.71 or 4.55% to $98.83 per barrel at 2234 GMT. U.S. West Texas Intermediate was $92.03 per barrel, down $4.57 or 4.73%. Both contracts reached their lowest levels since May 7 earlier in the session. On Saturday, U.S. president Donald?Trump stated that Washington and Iran had "largely" negotiated a memorandum of agreement on a deal to reopen Strait of Hormuz. Before the conflict, the Strait of Hormuz carried one-fifth of the world's oil and LNG shipments. Trump said on Sunday that he told his representatives to not rush into any Iran deal. MST Marquee Analyst?Saul Kavonic? said: "Despite all the caveats, risks, and concerns that remain with the peace deal, and Strait of Hormuz?there is some light at?the?end of?the tunnel, which may bring some relief to oil prices in the near future." Analysts 'expect it to take months for oil flow through the strait to return back to normal, and for damaged oil-and-gas facilities to be repaired. Reporting by Florence Tan, Editing by Cynthia Osterman & Edmund Klamann
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There are 21 missing people in the Philippines after a building collapse that has left at least one person dead.
Authorities confirmed that at least one person died after a building collapsed on Sunday in the Philippines. Rescuers were searching the rubble to find 21 people listed as missing. Officials have launched an investigation into the collapse of a multi-storey structure in Angeles, north of the capital, Manila. Rescuers were seen scrambling over concrete slabs and mangled metal as they searched for survivors. The sifting was done with the help of'rescue dogs', heartbeat detection devices, and heavy equipment. RESCUE EFFORT CONTINUES The authorities confirmed that the 65-year old Malaysian had died. His body was recovered from the neighbouring hotel, which had also been damaged by the collapse. Maria Leah Sajili told a media briefing that five of the 21 people reported missing were trapped. The status of two of the five was immediately unclear. Sajili warned, however, that the operations will become more difficult after dark. Officials informed reporters that the building's planning records indicated that it was to be a "nine-storey condominium-hotel" under the permit approved, but that a swimming pool was being built on the 10th floor. (Reporting and editing by Christian Schmollinger; Additional reporting and Eloisa Loza; Editing and rewriting by William Mallard, Helen Popper and Christian Schmollinger)
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China reduces the death toll of Shanxi coal mining disaster to 82
Local officials announced at a press conference held late Saturday that the death toll had been revised to 82. The explosion at the Liushenyu mine in China's north province of Shanxi on Friday night killed 82 people. Initial reports from state media said that at least 90 people had been killed. Even if the number is lower, it remains China's most deadly mining accident since 2009 when a gas exploding at the Xinxing Mine, in Heilongjiang Province, killed 108. At a press conference, local officials stated that the initial death count reported by state media was incorrect. Guo Xiaofang said that the situation was chaotic after the incident, and the company had a difficult time calculating the number of employees, leading to the inaccurate initial number. At the time of explosion, there were 247 workers underground. Guo reported that two people were still missing, 128 had been injured and were hospitalised, and 35 were not hurt. Local officials stated at the press conference that Shanxi Tongzhou Coal Coking Group owns Liushenyu Mine and that all four mines of this company have been closed, and executives detained. The People's Daily, a state-run newspaper, published an editorial about the accident on its front page Sunday morning. It called for more?attention to safety?in production as well as to "completely revert the tendency to prioritize development over safety." Xinhua reported that President Xi Jinping had on Saturday called for authorities to "spare nothing" when it came to treating the injured, and executing search and rescue operations. He also ordered a probe into the incident. Officials stated at the press conference that the mine has a production capacity of 1,2 million tons of coal annually. Last year, China mined 4,83 billion tons of coal. This fuel is the foundation of its energy sector. (Reporting and editing by Christian Schmollinger; Luoyan Luu, Colleen Howe)
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California searches for novel solution to chemical tank heating up and threatening catastrophe
The incident commander revealed on Saturday that firefighters were bringing in outside experts from other countries to prevent a disaster. This was because some shelters nearby had run out of space to accommodate evacuees. The evacuation orders were still in effect for an area covering tens and thousands of residents in the Garden Grove suburban Los Angeles. California Governor Gavin Newsom has declared an emergency in Orange County. His office has urged residents to evacuate. Craig Covey said, in a social media video, that "we brought in subject-matter experts from across the state to help us think outside the box. We had some very productive conversations today." He did not elaborate on potential solutions. As the risk grows, shift to offensive from defensive Anaheim, Fountain Valley La Palma, and Huntington Beach all reported full evacuation shelters. Covey had earlier stated that crews returned to the danger zone over night after drone readings suggested on Friday that water sprayed onto the tanks helped stabilize the situation. When crews arrived at the gauge of the tank, they discovered that the temperature inside was 90 degrees Fahrenheit. (32 degrees Celsius) This is up from the 77 F (25 C), when responders pulled back. He said that the temperature was rising by one degree per hour. "That's bad news." Since Friday, officials have warned that the tank containing methyl methacrylate (a flammable chemical commonly used in plastics and manufacturing) could rupture, spilling 'up to 7,000 gallons of toxic material or explode, endangering nearby tanks. Covey, a firefighter from Covey Fire Protection Services, said that on Saturday they were investigating whether a large flow of cooling could slow down the curing inside the tank to the point where it would reduce the pressure and prevent an explosive explosion. Covey stated that it was unacceptable for him to let the device blow up and fail. The incident occurred on Thursday, at the GKN Aerospace plant in Garden Grove. This city has a population of 172,000 and is located about 30 miles (50 kilometers) south of Los Angeles. According to its website, the site is specialized in manufacturing and testing windows and canopies of commercial and military aircraft. GKN stated that it was working closely with "all relevant specialists" to resolve the issue. GKN apologized for the inconvenience caused to local residents and businesses. Covey stated that crews switched from a defensive to offensive stance overnight, with the help of chemists in the manufacturer's emergency response teams. The aim was to neutralize the 15,000-gallon nearby tank and reduce its potential explosiveness if it failed. Covey said, "We put people in danger last night." Officials from the Department of Health have expressed concern that prolonged exposure to vapors could lead to severe respiratory problems. Air-quality monitors did not detect vapor at the time of the last health update, according to officials. Dr. Regina Chinsio - Kwong, of the Orange County Health Care Agency, said that Friday: "You're safe so long as you stay out of the area that has been designated as an?evacuation zone". Covey stated that crews are?also prepared for a potential spill, by looking at ways to dike, dam, and divert liquid into a holding zone at the commercial site rather than allowing it to reach storm drainage, river channels, or the ocean. Covey stated, "We will not give up." (Reporting in New York by Rodrigo Campos, with additional reporting by Dan Catchpole, and editing by Sergio Non. David Gregorio, William Mallard, and Sergio Non.
Reports of a 15-point ceasefire proposal sparks hopes for oil to fall
The oil prices fell by about 5% after it was reported that the United States sent Iran a 15-point plan to end the war. This prompted a 'talk' of progress towards a ceasefire, despite Israel and Iran trading airstrikes.
Brent crude futures were down $5.66 or 5.42% to $98.83 per barrel at 1022 GMT after having fallen as low as $97.57. U.S. West Texas Intermediate Crude Futures were down by $4.82 or 5.22% at $87.53 after falling as low as $86.72.
Both benchmarks gained nearly 5% Tuesday before losing some of their gains in the volatile trading that followed settlement.
While oil prices were falling on the prospect that a ceasefire would be reached, PVM Oil Associates analyst?Tamas Vaga pointed out that reports had been made of U.S. troops being deployed in the Middle East.
U.S. president Donald Trump stated on Tuesday that the U.S. is making progress in negotiations to end the war. A source confirmed Washington has sent Iran the 15 point proposal.
Some analysts were, however, sceptical about the progress of these talks and expected markets to remain volatile.
According to the BBC, if Iran continues to pose a threat in Hormuz, the world may face years with oil prices between $100 and $150 per barrel. Larry Fink, CEO of Blackrock, one of the largest asset managers in the world, said this.
Fink replied, "We'll have a global recession" when asked what would happen if oil stays at $150.
OIL SHIPMENTS VIA HORMUD ARE LARGELY?HALTED
Priyanka Sackdeva, senior market analyst at Phillip Nova, said that Middle East developments will remain "the dominant price driver", keeping oil prices in a range of movements in the short term.
The war has almost completely stopped shipments of gas and oil through the Strait. This is a route that typically transports about a fifth of the world’s crude and gas supply. The International Energy Agency called it the largest oil supply disruption ever.
After 25 days, the global supply has been reduced by 500 million barrels or five full days.
"The outlook for the market remains tight, despite the prospect of a war-off-ramp", said Saul Kavonic. He is head of MST Marquee's energy research.
He stated that even if the flow through the strait resumes, "it is not clear whether all production shut down will resume until more clarity is gained on 'the durability of a ceasefire.
According to a Tuesday note, Iran told the United Nations Security Council (UNSC) and the International Maritime Organization (IMO) that "nonhostile vessels" could transit the Strait of Hormuz if coordinated with Iranian authorities.
Shipping data revealed that to offset the disruptions caused by the Hormuz war, Saudi Arabia's Red Sea Yanbu Port saw oil exports rise last week from 1.4 million barrels a day to almost 4 million. This is a significant increase over the levels before the outbreak of the conflict.
Two sources said that the Russian Baltic ports of Primorsk, and Ust-Luga - major 'export terminals' - suspended crude oil and?products?loadings on Wednesday, after Ukrainian drone strikes sparked an?inferno? which could be seen in Finland.
The strike was the biggest against Russia's oil-export facilities during the four-year conflict and will increase the level of uncertainty on the oil market. Reporting by Seher DAREEN in London, Yuka OBAYASHI in Tokyo, and Trixie YAP in Singapore. Editing by Jamie Freed Bernadette BAUME and Jason Neely.
(source: Reuters)