Latest News
-
Japan legislator: Tokyo has told the national oil reserve to prepare for release in response to Iran crisis
On Sunday, a senior Japanese member of parliament said that the government had 'instructed' a storage facility for the national oil reserves to prepare for a potential release of crude as the Iran Crisis?has reduced supply from the Middle East. Around 95% of Japan's crude oil is sourced from the Middle East, with approximately 70% of that being shipped through Strait of Hormuz. This has effectively been closed since U.S., Israeli and Iranian attacks on Iran. Akira Nagatsuma is a member of Centrist Reform Alliance, an opposition party. He told Akira Nagatsuma that a?official with the Japan Organization for Metals and Energy Security at the Shibushi National Oil?Storage Base said they had received the directive on Friday from the Agency for Natural Resources and Energy. Nagatsuma stated that details such as the timing for the release are still unclear. It wasn't immediately clear if other storage bases had received the same instructions. A spokesman for ANRE (under the Ministry of Economy Trade and Industry) declined to comment. Shibushi was not available to comment immediately, and JOGMEC couldn't be reached after office hours. Shibushi, in southern Japan, is where Japan's strategic oil reserves are located. Japan has emergency oil reserves that are equivalent to 254 days of domestic consumption. These include government stockpiles and private sector inventories as well as joint reserves with oil producing countries. Tokyo's last oil withdrawal from its reserves was in 2022, as part of a coordinated release led by the International Energy Agency (IEA), following?Russian invasion of Ukraine. Ryosei Acazawa, the Industry Minister, said in an early statement last week that the Ministry would not be releasing oil reserves. However, it would closely monitor the crude oil supply, working with the IEA. Kyodo News Agency reported on Friday that the Japanese government may use a part of its oil reserves to combat the Iran crisis, which has disrupted energy supplies worldwide. This could be done in coordination with other nations or on its own.
-
Saudi index continues to rise as Iran approves a pause in Gulf attacks
The majority of 'Gulf' stock markets were up in the early trade on Sunday. The Saudi index was up for a fifth consecutive session after the?Iranian?temporary governing council agreed to stop attacks on neighboring nations, unless they originated on their own territory. Saudi Arabia told Tehran it supports a diplomatic solution to Iran's conflict with the U.S. but that continued attacks against the kingdom and its energy sector may push Riyadh into a similar response, according to sources. Saudi Arabia's benchmark.TASI index rose 2%. All of its constituents posted?gains led by energy and material stocks. Brent oil prices surged on Friday, with Brent trading above $90 per barrel as a result of the continuing disruptions in global oil supply due to the U.S./Israeli war against Iran. Saudi Aramco grew by 4%, while Yanbu National Petrochemical jumped by 10%. The Qatari benchmark index.QSI rose by 0.1%. Mesaieed Petrochemical Holding gained 5.3%, and Ooredoo?added 2.1%. The.MSX30 index in Muscat rose?1.4%, while the.BAX index in Bahrain grew?0.2%. Kuwait's index,.BKP, fell 0.5% with the majority of stocks falling. Kuwait Petroleum Corporation has cut oil production and declared force majeure on Saturday, as the U.S. Iran war continues to block shipments from the Middle East. (Reporting and editing by Bernadette B. Baum, Helen Popper, and Md. Hussain from Bengaluru)
-
Trump says he doesn't need Britain's help to win the Iran war
Donald Trump stated on Saturday that Britain was "seriously considering" sending two aircraft carriers to the Middle East. He added, however, that the United States would not be sending any. The United States does not need these aircraft carriers to win the war against Iran in the latest conflict between military allies. Trump has repeatedly criticized British Prime Minister Keir starmer, suggesting that he "ruined" the historically close relationship between the two countries after London refused to allow the U.S. The initial use of British base to attack Iran was criticised by Trump. Trump wrote on?Truth Social that he would "remember" the British lack of support during the conflict?with Iran. Trump said, "The United Kingdom is seriously considering sending two aircraft carriers into the Middle East, perhaps the Greatest Ally of all." We don't have to worry about them anymore, but we'll remember. We don't want people who join Wars after they've already won! The British Ministry of Defence announced on Saturday that it was preparing Prince of Wales aircraft carrier for a possible deployment. A British official confirmed that no decision had been made about the deployment of the aircraft carrier in the Middle East. Starmer has defended Starmer's decision to not allow U.S. forces to use British bases in order support initial strikes on Iran, saying he needed to be satisfied that any military action was legal and well planned. Starmer has defended his decision not to allow?U.S. forces to use British base to support initial attacks on Iran. He later granted U.S. troops permission to use British base for defensive strikes against what he called?Iranian?missiles in storage or?launchers. Starmer criticised Trump's desire to purchase Greenland earlier this year and called his remarks that European troops avoided the frontline of combat in Afghanistan "truly appalling."
-
Security sources claim that Katyusha missiles are being fired at the US Embassy in Baghdad.
Security sources and witnesses reported that sirens were heard as Katyusha missiles struck the U.S. Embassy in Baghdad. It was not immediately clear if the rockets had caused any casualties or damage. This was the first attack on the embassy in over two years. The last recorded attack?was late 2023 when seven mortar rounds fell in the compound amid a wave attacks by Iran-aligned militas against U.S. assets in Iraq and Syria because Washington supported Israel's war in Gaza against Hamas. Around 9 pm, explosions were heard in the central Baghdad area near the embassy. Witnesses said that sirens sounded at 1800 GMT, warning people to seek cover. According to a senior Iraqi official, the C-RAM defense system was responsible for bringing down one of the missiles. No rockets landed in the embassy. The official claimed that there were no American injuries. The attack shows that Iran-aligned Iraqi militas, who had vowed to retaliate against the death of Iran's supreme leader -- have now widened their target beyond U.S. Military bases in Iraqi Kurdistan as well as U.S. Energy interests. They have also targeted the U.S. embassy. Iraqi Prime Minister Mohammed Shia al-Sudani has ordered his security forces to find those responsible for the projectiles. He called them "rogue groups" that operate outside of the law and do not represent the Iraqi public, according to a press release from his office. Reporting by Ahmed Rasheed. Editing by Timothy Heritage & Diane Craft.
-
Kuwait reduces oil production to prevent tensions with Iran, KPC reports
Kuwait Petroleum Corporation announced on Saturday that the country has reduced crude oil production as a precautionary measure due to the ongoing attacks from 'Iran' against the country, and the closure of the Strait of Hormuz. These cuts will cause another disruption to the global energy market due to the U.S./Israeli war against?Iran. Oil and gas storage facilities in the Middle East Gulf are rapidly filling up. The Iraqi oil fields have already reduced production, and Qatar has declared force majeure for its massive volumes of gas exports. Next is likely the United Arab Emirates. Kuwait's reducing its output was in response to "Iranian threats against safe passage of vessels through the Strait of Hormuz", and as part of "risk management and continuity of business strategy," KPC stated in a press release. The national oil company didn't say how much it reduced its output. Kuwait produced approximately 2.6 million barrels of crude oil per day in February. KPC stated that the?adjustment is strictly precautionary, and will be reviewed as conditions change. It remains ready to resume production once conditions permit. The U.S. and Israeli 'war on Iran' has spilled a little beyond Iran's borders. Tehran responded by attacking Israel and Gulf Arab states - hosting U.S. military bases. And - Israel launched new attacks - in Lebanon, after Iran-aligned Hezbollah fired over the border.
-
Four people are killed and more than a dozen injured by tornadoes in rural Michigan
Local authorities reported that tornadoes and storms in southern Michigan killed or injured at least 'four' people on Friday. Multiple homes were destroyed and a large number of residents lost power. Videos on social media, claiming to come from Three Rivers and Union City, showed massive whirlwinds that tore roofs off of buildings and lifted debris into the sky. Local media footage showed cars and buildings smashed, as well as poles, trees, and road signs that had been blown. The sheriff's department of Branch County reported three fatalities and 12 injuries in the area where Union City is situated. According to local authorities, one person died and several others were injured in?Cass County. According to a Cass County website, "multiple large structures including homes and pole barns sustained damage ranging from structural impacts to total destruction." Local officials reported that hundreds of people were affected by power outages. We have many utility poles that are down, transformers that are damaged, and long power lines lying on the ground. According to a post on Union City's official Facebook page, the?northside of Union Lake sustained most of the damage. Two miles of power lines were brought down there alone. Michigan Governor Gretchen Whitmer announced that she had activated a State Emergency Operations Center? to monitor the situation. The state is prepared to meet any requests for resources that may arise. Yet, we haven't received any. Clayton Cummins is a spokesperson from Michigan emergency services and the police. He said that it sounds 'like' local response has been able to deal with 'what's a been a very destructive afternoon and evening in Southwest Michigan. (Reporting and editing by Donna Bryson, Tom Hogue, and Maria Tsvetkova)
-
Pakistani convicts of plotting to murder Trump in response to death of Iran commander
The Department of Justice reported that a Pakistani man had been convicted of plotting to kill President Donald Trump, and other prominent U.S. officials two years ago on the orders of Iran. Asif Merchant has been accused of 'trying to recruit people in the U.S. for a plan that targets Trump and others as retaliation against Washington's killing in 2020 of Iranian military chief Qassem Solimani, during Trump's first term. Federal prosecutors have said that the plot included targets such as then-President Joe Biden, and Nikki Haley who was running against Trump in 2016 for the Republican Presidential nomination. The DOJ released a statement that said Merchant had been convicted by Iranian authorities of "murdering for hire" and of attempting to commit an act of terror transcending national borders. Brooklyn, a borough in New York City, was the site of a trial that began last week. Days before, Trump had ordered an attack on Iran, which Israel carried out, and has now escalated into the biggest war in the region in years. Merchant testified that he joined the plot with Iran’s elite Islamic Revolutionary Guards Corps, but he only did it to protect his family. Merchant claimed that he had never been ordered to kill anyone in particular, but his Iranian handler mentioned three individuals during conversations in Tehran. The law enforcement agency foiled the plot 'before an attack took place. Merchant's contact in April 2024 who was supposed to assist with the plot, reported Merchant's activities and became an informant. Merchant was arrested in 2024 and pleaded guilty. The Revolutionary guards?play a central role in Iran with their combination of economic and military power, and an intelligence system. Tehran has denied allegations that it 'targeted Trump or other U.S. official. According to Iran's U.N. Ambassador, U.S. and Israeli strikes since Saturday have killed and injured at least 1,332 Iranians. Many Iranian leaders, including the Supreme Leader Ayatollah Ayatollah Khamenei have been killed. The U.S. Military has said that six of their service members have been killed in an attack on a Kuwaiti facility, while Israeli statistics show that at least ten civilians were killed throughout Israel. (Reporting and editing by William Mallard in Washington)
-
White House wants bolder action to be taken on energy prices in the face of Iran conflict
Two people who are familiar with the matter say that, despite efforts made so far, they may not be enough to combat the soaring prices of energy due to the conflict in Iran. One source said that senior officials asked Energy, Transportation, Treasury and Environmental Protection Agency for more policy options, focusing on measures President Donald Trump can implement without congressional approval. These requests show that the White House has prepared for the possibility of more aggressive action if the price of oil and gasoline continues to rise. Analysts say that higher gas prices may hurt Trump and the Republican Party during November's midterm election, when control over Congress is on the line. "Clearly, the White House coordinates with the Interagency on this important issue. If we weren't, there would be a big problem." Taylor Rogers, White House spokesperson, said that President Trump and the entire energy team had developed a solid game plan for 'keeping oil prices stable long before Operation Epic Fury started. They will continue to evaluate all credible options and implement them as appropriate. U.S. crude oil futures and global crude prices surpassed $90 per barrel on Friday. U.S. price rose more than 12%, as Middle Eastern supplies remained constrained by the closure of the Strait of Hormuz in the midst of the U.S./Israeli war. In recent weeks, gasoline prices in the U.S. soared to levels not seen since 2024. The average national price for regular unleaded gasoline has risen above $3.30 a gallon. Diesel prices have risen to $4.26 a gallon. White House officials have been cautious in their approach to the energy market, apprehensive that a strategy too aggressive could backfire. Officials warn that any large-scale measures should be calibrated carefully, as they could upset markets, undermine confidence, and cause political backlash. Analysts have expressed doubts about what the White House could do to bring down prices. Officials have been discussing a "wide range of options" including a federal gas tax holiday, and looser environmental restrictions around summer gasoline, which will allow for a higher blend of ethanol. Treasury Department is considering a plan that would involve using oil futures, according to reports, but the announcement is not imminent. Trump ordered Tuesday that the U.S. International Development Finance Corporation insure maritime trade against loss resulting from political instability and conflict. The move was made after an oil and LNG tanker transit halted in the Strait of Hormuz. This is a chokepoint that accounts for 20% of the daily supply of oil around the world. The markets reacted with a certain amount of skepticism. Analysts wonder if financial guarantees alone can counter the operational and safety risks that are posed by growing tensions in this region. The administration announced on Friday that it would provide reinsurance up to $20 billion for oil and natural gas shippers in the Gulf to boost confidence during the war against Iran. Reporting by Jarrett Renshaw, Nandita BOSE; Editing Colleen Jenkins, Lisa Shumaker
Europe's gas surplus narrows as LNG redirected to Asia: Kemp,
Europe's gas storage has got off to an uncommonly slow start to the refill season, narrowing the record seasonal surplus acquired from last winter season and improving rates back well above the longterm average.
Inventories in the European Union and the United Kingdom have built up by simply 148 terawatt-hours (TWh), or 2.1 TWh per day, given that March 31, information from Gas Infrastructure Europe ( GIE) show.
The refill was the second-slowest since 2012 and well below the previous ten-year seasonal average of 206 TWh, or 2.9 TWh per day.
Europe emerged from the warm winter of 2023/24 with a record amount of gas still in storage, so a relatively slow refill was needed to make sure space did not run out before the onset of winter 2024/25.
But the unusually sluggish start to the refill season has currently whittled away some of the surplus and minimized the likelihood of space going out.
Stocks were 219 TWh (+37% or +1.57 standard discrepancies). above the prior ten-year average on June 9, however the surplus had. narrowed from 277 TWh (+70% or +2.03 standard variances) when. winter ended on March 31.
Storage was already 72% complete on June 9, which was 17. portion points above the ten-year average, but the surplus. had actually narrowed from 22 portion points on March 31.
Based on seasonal patterns over the last years, inventories. are on course to reach 1,223 TWh before the end of the refill. season.
This goes beyond the technical capacity of the system, which is. around 1,145 TWh, so refilling will need to remain sluggish for some. weeks or months more.
However the projected end-of-summer fill has already fallen. gradually from 1,280 TWh on March 31 and the possibility of. overfilling has decreased greatly.
Chartbook: Europe gas storage and rates
The reduced danger of overfilling has actually filtered through into. greater futures rates for summer season 2024 and tighter calendar. spreads for completion of the refill season.
Front-month Dutch TTF futures costs have actually increased to an. average of 34 euros per megawatt-hour (MWh) so far in June,. putting them in the 77th percentile for all months since 2010. after changing for inflation.
Front-month costs have actually climbed from an average of simply 26. euros in February, which remained in only the 43rd percentile in real. terms.
The calendar spread in between October and November 2024,. spanning the end of the refill season and start of the winter. drawdown, has tightened from a contango of almost 3 euros in. December and January to 2.20 euros so far in June.
Lower worldwide gas rates have actually motivated more. melted natural gas (LNG) buying by price-sensitive buyers. in south and east Asia, diverting cargoes far from Europe and. helping erode the surplus.
Serious heatwaves across India, Bangladesh, southeast Asia. and south China have also enhanced gas consumption by generators. to satisfy air-conditioning and refrigeration demand, pulling more. LNG away from Europe.
Considering that the summer of 2023, northeast Asia's LNG purchasers have. been prepared to pay a premium over their counterparts in. northwest Europe, however the premium has increased substantially. because the end of winter season 2023/24.
LNG futures rates for gas to be provided to northeast Asia. in July 2024 have been trading more than 3 euros per MWh above. European standard costs since the start of April.
Up until now, Europe's surplus has actually kept it on the sidelines and. enabled more LNG to be diverted to gas-hungry purchasers in south. and east Asia.
Europe's purchasers are likely to remain fairly inactive for. a number of more months given that inventories are still well above. normal.
However as the surplus gradually wears down, competitors in between. Europe and Asia for LNG is most likely to reappear before completion of. 2024, and prices might increase sharply if a cold winter season across both. ends of Eurasia results in a scramble for the last remaining. uncommitted cargoes.
Associated columns:
- Europe's restricted storage space will press gas into. Asia( April 9, 2024)
- Europe gets lucky with a mild, windy winter season( March 13,. 2024)
- Europe's moderate winter season leaves gas stocks at record high. ( March 7, 2024)
John Kemp is a market analyst. The views expressed. are his own. Follow his commentary on X https://twitter.com/JKempEnergy.
(source: Reuters)