Latest News
-
Italy is ready to reactivate its coal-fired plants in the event that the Gulf Crisis worsens
Italy's Energy Minister?said Wednesday that the country could reactivate some coal-fired?power stations if conflict in?the Middle East leads to an energy shortage. Gilberto Pichetto Fratin, Minister of Energy and Environment in Italy, said that "there are coal-powered stations in Italy that I would not like to reactivate. But they're there in reserve for our country." Israeli and U.S. Forces?struck Iranian targets on Tuesday. This prompted Iranian strikes against energy infrastructure in other Gulf States considered U.S. Allies in a area that accounts for just under a third global oil production. Iran also targeted tankers in the Strait of Hormuz. Through this strait, about a fifth of all oil and gas liquefied flows. The Strait of Hormuz was effectively closed to traffic for a 4th day following the attack by Iran on five ships. Italy's gas supply is diverse, including Norway, Algeria, and Azerbaijan, among others. The country also has a relatively large amount of gas stored. Pichetto?Fratin stated that "on the (energy security) front, our nation is... quite safe in terms of quantitative safety." He added, "We do not have an extreme?severe situation in terms of?the quantity of resources. I'm referring primarily to gas."
-
Spain is hit by US Trade Worries, Europe's STOXX600 ticks up
Spanish stocks slid Wednesday following fresh threats of a trade embargo from the White House. Other regional benchmarks also climbed after a brutal global sell-off that dragged stock prices to more than one-month lows amid fears about the Middle East conflict. The pan-European STOXX 600 index was up 0.6% to 607.92 by 0939 GMT. This follows two sessions in which the index lost more than 4% since Friday's record high. The benchmark index rose the most in the Technology and Healthcare sectors. The STOXX Volatility Index, Europe's fear gauge after four sessions of gains, has slipped 2.3 points. Spain also slipped. Regional bourses tried to?recover from multi-week lows. The IBEX 30 dropped as much as 1% following a threat by U.S. president Donald Trump to impose a trade ban on Spain after Madrid refused to allow the U.S. to use its bases in missions related to strikes against Iran. The broad banking index continued to decline for a third session in a row. Chris Beauchamp is chief market analyst for IG Group. He said: "It's rare that there's an obvious catalyst, but you can't argue with the fact that Trump made a peeved remark about Spain yesterday night. Vistry's shares fell 17.8% when the UK-based homebuilder announced that its CEO and Chairman, Greg Fitzgerald, intended to step down. The roles will be divided after his retirement. OIL CLIMBS HIGHER, JITTERS? PERSIST Israeli and U.S. troops continued to pound targets in Iran, starting on Saturday. This prompted retaliatory attacks from Tehran against U.S. allies across the Gulf region. These strikes have targeted establishments such as oil refineries and U.S. Embassies. The price of oil has risen by more than 13% in the last week. Europe is reliant on energy and goods shipped through the Strait of Hormuz, which means that the route is choked. Alternative routes could mean longer journeys, higher costs and a rapid impact on everything from transportation to consumer prices. The oil sector is down 0.6% for a second session in a row. The markets are also dealing with a mixed picture of the economy. The PMI showed that euro zone services expanded slightly faster in February. Germany's economic growth reached a four-month high. France was still in contraction and Italy's growth cooled. Adidas, among other stocks fell 7.4% after its earnings results. ASM International rose 5.1% after it said that its first-quarter revenue in 2026 is expected to reach 830 million euros. (Reporting and editing by Rashmi Aich, Krishna Chandra Eluri, and Avinash P. in Bengaluru)
-
Japan reactor restarts fuel record nuclear sales for Mitsubishi Heavy
The restart of nuclear reactors in Japan is expected to boost sales at Mitsubishi Heavy Industries (MHI)'s nuclear power unit next year. This will be a record 400 billion yen, or $2.54 billion. This is well ahead of previous forecasts. Hiroshi Nishio said in an interview that we originally thought it would reach 400 billion yen by 2030. MHI plans to increase its headcount by about 10% in the reactor division next year, as orders continue to grow. After 15 years of the nuclear crisis in Japan caused by the tsunami, 15?of the 33 reactors are now operational. The Japanese government claims it must turn them off 'to reduce imports of gas and oil, which make up 'about two thirds' of Japan's power generation. The Middle East is the source of a large amount of this fossil fuel, where supplies were disrupted by U.S. air strikes on Iran. Last month, Fukushima's operator Tokyo Electric Power Co turned on the first of seven idle nuclear reactors at Kashiwazaki Kariwa, which is located 220 km (136 miles) north of Tokyo. MHI is developing a?next-generation reactor with Japanese utilities, that will, it claims, be safer than those that melted?at Fukushima. Nishio said that MHI's nuclear business was sustained in part by the Rokkasho spent fuel reprocessing facility, which separates reusable uranium, plutonium, and 'high-level radioactive materials from the?wastes. "We kept people and technology in the belief that nuclear power was destined to be restarted." $1 = 157.4300 Japanese Yen (Reporting and editing by Andrew Heavens, Tomaszjanowski, and Tim Kelly)
-
Traders say that India's MRPL has declared force majeure for gasoline export cargoes in March and April.
Two traders reported that India's Mangalore Refinery & Petrochemicals declared force majeure for all future gasoline export cargoes due to the Middle East conflict, which has disrupted crude oil shipments from the Gulf. One of the traders stated that the company has already allocated two to three loads via tenders, for loading in early March. It is currently negotiating with buyers about these supplies. The trader said that MRPL has swap agreements with traders for receiving crude cargoes and supplying'refined fuel. The state-run refiner, which runs a 300,000-barrel-per-day refinery in the ?southern state of Karnataka, exports about 40% of its refined fuel output. After U.S., Israeli and Iranian strikes disrupted energy trade, Iranians attacked vessels that were shipping through the Strait of?Hormuz, a conduit of about a fifth?of the oil consumed worldwide. MRPL didn't immediately respond to an email request for comment. Unnamed source within the company confirmed that the "force majeure" had occurred. Indian refiners purchase about 40% of the crude oil they need from the Middle East. They also source from spot markets, and process domestic oil. A government source revealed on Tuesday that India is looking for 'alternative sources' to import crude oil, liquefied gas, and liquefied gas. In January, MRPL announced that it was looking into purchasing Venezuelan oil after the refiner halted its imports of Russian crude oil in order to comply with Western sanctions. India's crude stocks?are enough to meet the demand for?about 25 days. The government source said that refiners also "hold a 25 day inventory" of gasoline, gasoil and liquefied petrol gas. (Reporting and editing by Mohi N. Verma and Nidhi V.; Christian Schmollinger, Clarence Fernandez and Tom Hogue)
-
Bloomberg News reports that Chinese lenders are reducing their exposure to the Middle East.
Bloomberg News reported that many Chinese 'financial companies are reducing their exposure to Middle Eastern debt due to the escalating conflict in the Middle East. The report stated that a major bank had taken the unusual step of limiting the drawdown on a bi-lateral loan to one?of Abu Dhabi's financial entities. It did not name the bank. According to the report, another mid-sized lender wants to sell down portions of syndicated loan to Middle Eastern borrowers. This includes sovereign wealth fund ADQ’s $4?billion facility that was agreed upon last year. Bloomberg reported that the Hong Kong Monetary Authority has asked two local banks, to review their exposures to Middle Eastern bonds and loans. The Bloomberg 'News' report stated that China's National Financial Regulatory Administration had asked domestic lenders to review their financing activities, including any debts extended to state-owned entities. They were instructed to report a report on?their findings this week. Hong Kong Monetary Authority (HKMA) and China's National Financial Regulatory Administration (NFRA) did not?immediately respond to a request for a?comment. Bloomberg reported that the asset management arm of a Chinese insurer is also reducing its holdings in sovereign bonds and state-linked securities from the region, which include bonds issued by Saudi Arabian oil giant Aramco. Could not verify immediately the report.
-
Why is Asia so dependent on Middle Eastern oil sources?
Asia is heavily dependent on Middle East oil and gas, with 60% of its crude coming from this region. This makes it vulnerable to a prolonged shutdown of the Strait of Hormuz as a result of the Iran War. How much Middle East oil does Asia import? The Middle East is the largest oil producing and exporting region in the world, shipping?one out of four barrels of crude oil daily, most of which are exported through the Strait of Hormuz. According to shipping analytics firm Kpler, Asia will import 14.74 million barrels of Middle Eastern crude per day in 2025. This is nearly 60% of 25 million barrels of total purchases in the region. Saudi Arabia, Iraq and the United Arab Emirates are the top three suppliers of goods to Asia. Japan and South Korea, among?major purchasers, are most dependent on Middle Eastern crude. They import 95% and 70% of their oil, respectively. Singapore, Asia's main oil hub, increased last year its dependency on Middle Eastern oil to over 70%, up from around 50% in 2024. This was after Exxon Mobil finished a refinery extension that required more heavy oil from this region. Kpler data shows that China is the world's largest crude importer. It sources around half of its seaborne imports, or 5.4 millions bpd, from the Middle East. China, who also purchases?oil in countries such as Iran, Russia, and?Canada, and produces over 4 million bpd itself, is well known on the market for not relying more than 20% on one country. Middle Eastern oil shipments usually take between 30 and 40 days to arrive in North Asia, while the journeys to India are less than one week. Why is Asia so dependent on Middle East Oil? Asia is the fastest-growing region of the world in terms?of oil demand. It is also a net importer as the production in Asia-Pacific is declining due to old fields and few new discoveries. In order to achieve a higher profit margin, most Asian refineries have desulphurisation units that process the?high-sulphur crude oil from the Middle East. This is because it's typically cheaper than lower-sulphur grades. Middle Eastern crude oil also contains a large amount of fuel oil that can be refined into fuels with higher quality, like gasoline and diesel. Fuel oil is used in bunker fuel at the top refuelling ports of Singapore and Zhoushan, eastern China. Saudi Arabia has seen its market share in Asia grow as the state-owned energy company Saudi Aramco purchased stakes regional refineries, to ensure outlets for their crude. Why do Asian refiners have 'limited alternatives? The volume of crude oil that Asian refiners can handle is limited. This is because the different grades have an impact on their refined product output and fuel blending requirements. Most Asian refiners also lock up more than half of their crude oil requirements into long-term contracts in order to guarantee stable supply.
-
Bloomberg News reports that Chinese lenders are reducing their exposure to the Middle East.
Bloomberg News reported that many Chinese financial firms have reduced their exposure to Middle Eastern debt as a growing conflict intensifies scrutiny over 'the Asian country’s extensive lending in the'region. The report said that a major bank had taken the unusual step of limiting the drawdown of a bilateral credit to one of Abu Dhabi's financial institutions, but did not name the bank. According to the report, another mid-sized lender aims to reduce portions of syndicated loan facilities to Middle Eastern borrowers. This includes sovereign wealth fund ADQ’s $4 billion facility that was agreed last year. Bloomberg reported that the Hong Kong Monetary Authority had asked two local banks, to review their exposures to Middle Eastern bonds and loans. Bloomberg News reported that China's?"National Financial Regulatory Administration" has asked domestic banks to review their financing activities, including any debt extended to government entities. They were instructed to report their findings by this week. Bloomberg reported that a Chinese insurer's asset?management?arm has also reduced its holdings in sovereign and state-linked bonds?from the region. This includes bonds?issued by Saudi Arabian oil giant Aramco. Could not verify immediately the report.
-
Investors weigh Middle East conflict as they increase European shares
Investors paused on Wednesday to re-energize themselves after a global stock market crash that sent the benchmark index plummeting more than a month ago amid fears of a prolonged and widened conflict in the Middle East. By 0810 GMT, the pan-European STOXX 600 index was up 0.6% to?607.62. Since Friday's record high, the index has lost nearly 5%. The travel and luxury stocks that were at the forefront of this sell-off were each up by more than 1%. The index was boosted by the technology and healthcare sectors. Vistry fell 22% after the UK homebuilder announced that Greg Fitzgerald, its CEO and chair, would be stepping down. The roles will then be separated upon his retirement. Israeli and U.S. Forces have been attacking targets in Iran since Saturday. This has prompted retaliatory attacks from?Tehran against U.S. Allies across the Gulf Region, including oil refineries and U.S. embassies. Brent Crude prices rose by nearly 2% despite a decline from their peaks following the?U.S. Donald Trump, the President of the United States, ordered an insurance guarantee to cover Gulf shipping. The Navy could accompany oil tankers along the 'Strait of Hormuz. The oil sector fell for a second session in a row, falling 0.6%. Adidas, among?others stocks, fell?6% after the results of the sports giant. The euro zone PMI is expected later today. Reporting by Avinash in Bengaluru, editing by Rashmi Aich
German union targets breakthrough at Tesla Berlin
Germany's leading industrial union is 'fighting for more power' at Tesla's gigafactory near 'Berlin', where staff will vote for a new work council following a campaign that was marked by mudslinging and court challenges.
The voting began at Tesla's Gruenheide factory, the only European production facility of the U.S. electric vehicle maker. Results are expected on Wednesday.
The current council is dominated largely by non-unionists. The IG-Metall union has 116 candidates running to gain a simple majority of 19 seats. The union won 16 seats in the previous election, two years ago, when the council held 39 seats.
IG Metall has accused management of inciting anti-union sentiment. Andre Thierig, the plant director, has countered by saying that the union's focus is solely on boosting IG Metall members.
"We are extremely satisfied with our campaign." Laura Arndt, IG Metall’s leading candidate, said that she was running with a "great team" and that her issues were "clearly hitting a chord" with colleagues.
The German labour relations system is based on works councils that are elected by the employees. They represent workers in discussions with management.
IG Metall is the dominant union at all German automakers, including Volkswagen, BMW, and?Mercedes, but it remains the underdog in Tesla, whose CEO Elon?Musk has been outspoken about his dislike of unions.
Tensions reached a peak in February 'when Tesla accused a IG Metall trade unionist of secretly'recording a Works Council meeting and filed a criminal case.
IG Metall dismissed this allegation, calling it a "calculated falsehood". (Reporting and editing by Rachel More & Christina Amann. Mark Potter edited the article.
(source: Reuters)