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US wants 1 million barrels for Strategic Petroleum Reserve
The U.S. Department of Energy announced on Tuesday that it was looking to purchase 1 million barrels of oil to be delivered to the Strategic Petroleum Reserve. It is hoping to take advantage of the relatively low prices of oil to replenish the stockpile. Former President Joe Biden's administration sold record amounts from the SPR. This included a 180 million barrel sale in 2022, after Russia invaded Ukraine, one of world's largest oil producers. The reserve has a capacity of 700 million barrels, but currently holds nearly 409 millions. The administration of President Donald Trump has sought to replenish the SPR but has been hindered by the lack of funds as well as the ongoing maintenance of the reserve. It is located in a series hollowed out salt caverns along the Texas and Louisiana coastlines. Pumps, pipes, and other SPR above-ground infrastructure are exposed to salty, corrosive air. Trump's tax-and-spending bill included $171 million to purchase and maintain SPR oil, a much smaller amount than the original $1.3 billion. It is likely that new legislation will be needed to purchase more oil for SPR. Energy Secretary Chris Wright stated that Trump is working with Congress to replenish the SPR. Wright stated that while this process will not be completed overnight, it is an important step towards strengthening our energy security. On Monday, both the Brent international benchmark and the WTI U.S. benchmark had reached their lowest levels since the beginning of May. This was due to record U.S. production of oil and the decision of the Organization of the Petroleum Exporting Countries (OPEC) and its allies that they would continue with the planned supply increases. WTI crude futures closed Tuesday at $57.82 per barrel, up 30 cents. The deadline for submitting bids to the SPR is October 28. (Reporting and editing by Chris Reese, Lisa Shumaker, and Jasper Ward. Additional reporting by Timothy Gardner.
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Citgo auction: Bidders and creditors fight in US court
Bidders pursue the parent company of Venezuelan-owned U.S. refiner Citgo Petroleum Creditors waiting to receive proceeds from the court ordered auction clashed on Tuesday in Delaware over which offer would be approved at the end of two years. The court is trying its best to finish the auction in order to compensate up 15 creditors for defaults on debts and expropriations that occurred in Venezuela. Citgo Holding, Citgo's parent company, was found responsible for Venezuela's debt in the eight-year long case. Citgo and Venezuela lawyers asked the court to reject the $5.9 billion offer of an affiliate of Elliott Investment Management because of its "low price", which was lower than a rival bid by a subsidiary Gold Reserve, and that the sale process is "defective." An officer in charge of the auction recommended that Elliott's Amber Energy bid be accepted, after previously supporting Gold Reserve. The court's marketing efforts were defended by Robert Pincus, a court officer. Amber's offer, he said, implies an estimated business value of $9.5 billion. It also offers the best combination between price and likelihood that the transaction will be completed. Amber's proposal includes a separate agreement to pay $2.1billion to holders of Venezuelan bonds that have defaulted. The agreement only lasts until early December. Counsels for Amber, Pincus and the Court have asked the court to select a winner as soon as possible. This week, Delaware Judge Leonard Stark heard arguments regarding motions filed by Venezuela or Gold Reserve seeking to disqualify Stark, court officer Pincus, and two advisory firms for alleged conflicts of interest. The court also heard the final arguments about the bids. Nathan Eimer said that Amber's offer "is so low...that it shocks this court's conscience and cannot be confirmed" during the hearing. Gold Reserve asked the court also to reject Amber’s bid in favor of the offer made by its subsidiary, which was about $2 billion more expensive but did not include a payment agreement with the Venezuelan bondholders. CREDITORS V BONDHOLDERS Gold Reserve intends to divide auction proceeds between a greater number of Delaware creditors, rather than settle the bondholders claim. This is because a New York court has yet to resolve the validity of the notes. Matthew Kirtland said that it would be an injustice if a significant amount of money was transferred from the attached judgement creditors to the 2020 bondholders based on a security or pledge instrument which might be invalid. Since the U.S. imposed sanctions on Venezuela in 2019, Citgo severed ties with its ultimate parent, Caracas-headquartered oil company PDVSA, and is now controlled by boards appointed by an opposition-led congress. Both the government of President Nicolas Maduro and the opposition political party reject the auction. The Treasury Department of the United States, which shielded Citgo against creditors in recent years must approve the winner.
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Oliver Bowen, Glencore's global naphtha head, will join rival Vitol sources claim
Four sources said on Tuesday that Oliver Bowen, Glencore's global director of naphtha trade, was set to leave the company for Vitol. He is the latest high-ranking trader to leave the London listed commodities trading and mining firm since recent months. One source said that Bowen would start working at Vitol in November and supervise the European naphtha business of the world's biggest commodities trader. Sources requested anonymity in order to discuss confidential information. Bowen was not available for comment. Vitol, Glencore and Glencore refused to comment. Bowen's departure comes at a time when Glencore is undertaking a wider reorganization in its trading operations after a sharp decline in earnings. The company's core earnings from Glencore’s energy and steelmaking activities trading coal fell to $306 millions in the first six months of this year. This is the lowest amount for the period since 2016. Bowen is the 42-year-old head of Glencore's naphtha trade since at least 2017, says a profile posted on Companies House, the UK government website. Bowen was a UK-based Petrochemical Feedstock Association director from February 2017 until his resignation in April of this year. Alex Sanna is the current Glencore head of oil and natural gas trading. According to a memo sent out by staff, Sanna will be stepping down at the end this year. Maxim Kolupaev will replace Sanna. He was the head of Glencore's oil trading desk over the last six years. (Reporting from Shariq Khan and Robert Harvey, in New York; editing by Lisa Shumaker).
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The Russian rouble falls against the US dollar due to uncertainty surrounding Trump-Putin Summit
The Russian rouble fell against the U.S. Dollar and China's Yuan on Tuesday, after an American media report said that preparations for the summit between U.S. president Donald Trump and Russian president Vladimir Putin at Budapest had stalled. At 1400 GMT the rouble had fallen 0.7% against the U.S. Dollar in over-the counter trade and 1.2% against yuan, which was trading at 11.41 at the Moscow Stock Exchange. The Chinese unit is by far the most traded currency. Freedom Finance analysts stated in a recent research note that "the main pressure on Russia’s market comes from geopolitics, and the expectation that the central banks will maintain its key rate of 17% this Friday." The Kremlin announced on Tuesday that there was no date set for a possible summit between Trump and Putin. This dampened the optimism which had lifted Russian stock prices and the rouble in the last week. CNN reported that the planned meeting between U.S. secretary of state Marco Rubio, and Russian foreign minister Sergei Lavrov has been postponed for now. On October 24, the Russian central bank will also decide whether to cut or maintain its key rate. Economists are evenly divided on this issue. The rouble would be supported if the central bank decided to hold the rate. (Reporting and editing by MuvijaM; Gleb Bryanski)
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Venezuela asks US Court to reject Elliott affiliate’s bid for Citgo parent
Lawyers for U.S. refiner Citgo Petroleum, Venezuela's owner and Venezuelan government asked the court to reject an offer from an Elliott Investment Management affiliate on Tuesday due to the "low price" which was lower than a rival bid submitted to the court and that the sale process was defective. Delaware's court is attempting to complete the auction for Venezuelan-owned PDV Holding (parent company of Citgo Petroleum) to compensate up 15 creditors who have suffered debt defaults or asset expropriations. An officer in charge of the auction recommended a $5.9 billion offer by Elliott's Amber Energy, which was a change from his earlier recommendation of a 7 billion dollar bid from a Gold Reserve subsidiary. Amber's bid also includes a separate agreement to pay $2.1billion to holders of defaulted Venezuelan bonds. After a hearing in Delaware this week, Judge Leonard Stark will determine the winner. The court will discuss the bids from Venezuela and Gold Reserve and the motions they filed to disqualify him, the court officer who evaluated the bids, and two advisory firms for alleged conflicts of interest. Nathan Eimer said that Amber's offer "is so low...that it shocks this court's conscience and cannot be confirmed" during the hearing. Since the U.S. imposed sanctions on Venezuela and the administration of President Nicolas Maduro in 2019, Citgo severed ties with its ultimate parent, Caracas-headquartered oil company PDVSA, and is now controlled by boards appointed by an opposition-led congress. The auction organized by the court is rejected by both the Maduro government and the opposition political party led Maria Corina Machado. The U.S. Treasury Department must approve the winner of the auction, as it has protected Citgo against creditors in recent years.
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CenterPoint sells Ohio natural gas distribution for $2.62 billion
CenterPoint Energy has agreed to sell its natural-gas distribution unit in Ohio for $2.62billion, in order to focus on its core electric and gas operations. In the morning trading on Tuesday, shares of National Fuel and CenterPoint both fell by a combined 4.7%. CenterPoint stated that the assets being sold include approximately 5,900 miles in Ohio of transmission and delivery pipelines serving around 335,000 metered clients. This is just the latest of a series of deals by U.S. utilities that are refocusing their efforts on regulated, higher-growth markets to meet the surge in power demand. Jason Wells, CEO of CenterPoint, said that the company will be able to recycle over $2 billion in other electric and gas businesses. Analysts from Scotiabank say the deal shows CenterPoint progress towards a profit increase of almost 9%. This would be one of the fastest gains in the industry. Investors should find CenterPoint appealing because it is one of the few utilities that can turn demand into profits. The CenterPoint deal will improve its balance sheet, and allow it to invest in Texas and Indiana. In late September, the utility announced that it planned to spend $65 billion on capital expenditures from 2026 to 2035. National Fuel gains a foothold in Ohio and expands its regulated utility gas services. CenterPoint stated that the value of the deal represents approximately 1.9 times its unit's rate base for 2024. The deal is expected close in the fourth-quarter of 2026. CenterPoint anticipates a total of $1.42 billion to be generated in 2026, with the remainder in 2027. The company provides electricity and natural gases to over 7 million customers in Indiana, Louisiana and Mississippi as well as Ohio, Texas and Texas. (Reporting and editing by Sahal Muhammad in Bengaluru, Katha Kalia)
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Automakers join forces with EV manufacturers to avoid EU emission fines
Automakers formed alliances with electric vehicle companies to avoid heavy fines from the European Union for carbon emissions. Several legacy automakers could face fines, as the transition from ICEs to EVs has been slower than expected. As of Tuesday, here are the details on the regulations and alliances that will be in place by 2025. Initial EU fines were based on carbon emissions levels in 2025. The European Commission, under pressure from the automakers, allowed compliance in March based on average emissions between 2025 and 2027. All alliance agreements currently in existence, as identified by their pool managers, will expire this year. It is expected that they will be renewed in the coming years. NISSAN Nissan, the Japanese EV manufacturer, teamed up with BYD in October. KG MOBILITY A second pool was created at the end September by South Korea’s KG Mobility, and Chinese EV manufacturer Xpeng. In January, Tesla, Stellantis, Toyota, Ford and Chinese EV manufacturer Leapmotor formed a pool. Mazda, Subaru, Mazda, and Subaru also joined. In March, Japan's Honda & Suzuki joined the pool. MERCEDES In January, this pool included Mercedes, Volvo Car, Polestar, Smart Automobile, and EV manufacturer Polestar. Volvo Car and Polestar both have the backing of China's Geely. Geely Chairman Li Shufu owns a 9.69% share in Mercedes. He is the second largest shareholder of the group after China's BAIC Group. Smart Automobile was formed as a joint venture by Mercedes and Geely. Forecasts of EV According to AlixPartners consultant, EVs accounted for 12% of the total European light vehicles sold last year and will reach 15% in 2019. AlixPartners predicts that their market share will increase to 24% by 2027, and 40% at the end of this decade.
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Fluor gains after Starboard purchases stake, NuScale urges review
Two sources said that shares of the construction company Fluor Corp rose by 2.7% after activist investor Starboard Value purchased a stake of nearly 5%, in order to unlock value for its 40% ownership in NuScale Power. Jeff Smith, the founder of Starboard, is expected to present the investment thesis for the firm at the 13D Monitor Active Passive Investment Summit, which will be held in New York, later that day. He will also talk about plans for TripAdvisor - another recent target. NuScale Power shares fell 7% at the opening of trading. Citigroup analysts said that Starboard's investment supports their view that Fluor shares still have room for growth. They cited the value of the NuScale stake and the potential improvement to the core operations of the company. Fluor could eventually sell its remaining 111,000,000 shares of NuScale, which represents over 60% of the company's market capitalization. Fluor's shares are down by 3% this year. NuScale's shares are up over 145% this year due to the growing demand for clean energy products that power AI-driven data centres and defense infrastructure. Starboard and Fluor both did not respond immediately when contacted. Fluor's core businesses, including infrastructure and energy projects have been under pressure. The company posted a 6% decline in revenue for the second quarter, falling short of analyst expectations. Starboard claims the segment is undervalued in comparison to Fluor NuScale's stake, and wants strategic options. Fluor, which is in a good position to benefit from the infrastructure policies of President Donald Trump that could boost investments in energy and construction, has launched an activist campaign. (Reporting and editing by Krishna Chandra Eluri; Rashika Singh)
Sea drone warfare has gotten here. The U.S. is floundering.
The U.S. Navy's efforts to develop a. fleet of unmanned vessels are failing because the Pentagon. remains wedded to big shipbuilding tasks, according to some. officials and company executives, exposing a weakness as sea. drones reshape naval warfare.
The lethal efficiency of sea drones has actually been shown. in the Black Sea where Ukraine has actually released remote-controlled. speed boats packed with dynamites to sink Russian frigates and. minesweepers because late 2022.
Yemeni-backed Houthi rebels have actually used similar vessels. against commercial shipping in the Red Sea in recent months,. albeit without success.
These strategies have actually captured the attention of the Pentagon,. which is including lessons from Ukraine and the Red Sea into. its plans to counter China's increasing marine power in the Pacific,. Pentagon Spokesman Eric Pahon told .
In a signal of the Pentagon's intent, Deputy Secretary of. Defense Kathleen Hicks announced an initiative in August - named. Replicator - to deploy hundreds of small, reasonably cheap air. and sea drones within the next 18-24 months to match China's. growing military hazard.
This public show of commitment masks years of hesitation by. the U.S. Navy to construct a fleet of unmanned vessels in spite of. duplicated warnings this was the future of maritime warfare,. according to interviews with a dozen people with direct. knowledge of the U.S. sea drone plans, consisting of Navy officers,. Pentagon authorities, and sea drone business executives.
Two Navy sources and 3 executives at sea drone. makers stated the biggest obstacle to advance has actually been a. Department of Defense (DoD) budget plan process that prioritizes big. ships and submarines developed by legacy defense professionals.
Eventually, you struck the D.C. problem, said Philipp. Stratmann, CEO at Ocean Power Technologies (OPT), a New. Jersey-based firm that provides the U.S. Navy with the WAM-V, an. self-governing surface drone.
You struck the fact that there is a military commercial. complex that has the very best lobbyists and knows precisely how the. money circulations and contracting works in the DOD.
A Navy spokesperson said it acquires capabilities based on. fleet need signals, referring to the messages headquarters. get from commanders at sea.
The Navy has a budget of $172 million this year for little. and medium-sized underwater sea drones, falling to $101.8. million in 2025, the representative said. That's a tiny portion. of the $63 billion Navy procurement budget plan proposed by President. Joe Biden's administration for 2025.
Military sea drones can range from missile-armed speed boats. to minehunting miniature submarines and solar-powered sailboats. geared up with high-definition spy cams, underwater sensors. and speakers utilized to holler warnings at enemy ships.
But when the Navy has released sea drones on reconnaissance. objectives in the last few years, it hasn't always had the fleet. know-how to utilize them, the 2 Navy sources stated, asking not to. be named due to the level of sensitivity of the matter.
There aren't enough Navy sailors trained to pilot drones or. to evaluate large swathes of information returned from the craft's. cameras and sensing units, the sources said.
The spokesperson stated the Navy was in the procedure of. enhancing its data collection and analysis from sensors.
Pentagon representative Pahon said the DoD has actually been. laser-focused on speeding up innovation over the last 3. years, including the use of sea drones.
Acknowledging spending plan obstacles, Pahon stated the Pentagon was. utilizing ingenious methods to cross the valley of death, a term. utilized to explain the excruciating approval procedure brand-new developments. travel through to be purchased in big amounts.
REPLICATOR
One example Pahon pointed out was the Replicator program: the. short-term, $500 million-a-year task is created to cut. through bureaucracy and fast lane the deployment of thousands. of inexpensive aerial and sea drones.
These drones will be utilized to match China's rapidly-growing. air and naval power in the Asia-Pacific region, the Pentagon's. Hicks stated at the job's launch in August. She said. Replicator is being funded mainly by reallocating funds from the. existing Pentagon budget.
As part of the effort, the Pentagon in January provided a. solicitation for personal business to provide small sea drones. to the Navy, demanding production capability of 120 vessels per. year, with implementation beginning in April 2025.
Duane Fotheringham, president of unmanned systems at. Huntington Ingalls Industries (HII), the largest U.S. military shipbuilder, acknowledged the Pentagon and Navy had. shown their intent to speed up the implementation of sea drones. however he said the market wanted to see long-term funding in the. defense budget.
We hear the demand signal ... however all of us have to work. together really carefully to comprehend what that need is and when. it will be readily available, Fotheringham informed .
At a cost ranging in between $1 million and $3 million apiece,. according to Navy and defense specialist sources, drones provide a. reasonably cheap and fast way to broaden the Navy's fleet,. especially as numerous big traditional shipbuilding projects -. like a new class of frigate warships - are running years behind. schedule.
The U.S. is evaluating using robot ships in active combat. situations. However their more instant use is for missions that are. too costly and various for manned marine fleets.
This consists of maritime security, minehunting, and. protecting vital undersea infrastructure, like gas pipelines. and fiber-optic cables, four drone companies told .
Swarms of little sea drones could likewise serve as a shield for. important crewed properties like aircraft carriers and submarines,. and tangle up troop-carrying ships in case China tries to. attack Taiwan, stated Bryan Clark, an advisor to the Navy on. self-governing craft and a senior fellow at the Hudson Institute - a. believe tank headquartered in Washington.
Clark approximates the Navy has around 100 little drones for use. on the ocean surface and another 100 underwater drones, while. China has a similar-sized self-governing force that is growing quick. The Navy spokesperson decreased to talk about the number of drones it. has in operation.
Ukraine has actually shown how efficient they can be and how they. can be used in present operations, Clark stated. The U.S. Navy requires to accept that lesson and field battle (sea drones). immediately.
The Navy's 5th fleet, which runs out of Bahrain, has. been checking unmanned vessels for three years, led by its Job. Force 59 unit.
The job has released monitoring drones built by. personal companies, consisting of startups, along with those backed by. defense heavyweights like Lockheed Martin and HII.
The circumstance in the Red Sea provides the work of Task Force. 59 added urgency and we anticipate fielding services to. assistance counter Houthi malign behaviour, Colin Corridan, commander. of the task force, told .
MISSILE TEST
In October, the Navy carried out its first live missile test. from an unmanned speedboat in the Arabian Peninsula.
The T38 Devil Ray, constructed by Florida-based sea drone firm. MARTAC, effectively released a miniature missile system to. ruin a target boat, with a human operator ashore offering the. order, according to a Navy announcement and video.
MARTAC's Chief Marketing Officer, Stephen Ferretti, referred. concerns about the operation to the Navy.
Making use of unmanned vessels was broadened to the Navy's fourth. Fleet in central America last year where they have actually been used to. punish human smuggling off the northern coast of Haiti.
Among the business running there is Saildrone, a. California-based firm that makes wind-, solar- and. diesel-powered autonomous vessels that gather images and data. with cams and sensors.
Saildrone has actually circumnavigated Washington's funding politics. Because the company runs and maintains its own vessels, and. charges a service fee for the information they collect, the Navy can. pay to use the drones out of its operating costs instead of. procurement spending plan.
Saildrone introduced the Property surveyor, its biggest vessel, which. has actually been customized for the military, at an event in March. gone to by Chief of Naval Operations Lisa Franchetti.
The drone company, which also supplies coast guards and ocean. study departments, has a fleet of 130 vessels and is developing. a number of more every month, said Richard Jenkins, the business's. founder.
Today, we are struggling to stay up to date with need,. Jenkins informed in an interview. He decreased to talk about. just how much Saildrone charges the Navy.
Ocean Aero develops the autonomous Triton vessel, which can. move on the surface area or underwater to collect data and hunt for. mines using sensors. The business, which is backed by Lockheed. Martin, opened a 63,000 feet making center in Gulfport,. Mississippi last October that is capable of producing 150. Tritons a year.
Lockheed Martin did not respond to an ask for remark.
HII was granted a contract last October to construct nine small. underwater drones for the U.S. Navy's Lionfish program, with the. possible for this to increase to 200 lorries over the next five. years. The agreement might total $347 million, although that is. far from ensured.
The Lionfish program - which is concentrated on the Indo-Pacific. where the U.S. is vying for control with China - is based upon. HII's Remus 300, a minehunting drone that can be launched like a. torpedo from a crewed ship or submarine.
These programs are evidence that the Pentagon is attempting to move. faster to deploy sea drones, representative Pahon informed .
We know we need to keep pushing to remain ahead, he stated.
(source: Reuters)