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US Sanctions Shipping Companies for Delivering Oil and Gas to Houthis
Washington continues to pressure the Iran-backed Houthis over their attacks against Red Sea shipping. On Monday, Washington imposed sanctions on three vessels and owners for delivering gas and oil products to Yemen’s Houthis. Treasury Department released a statement that targeted Marshall Islands registered Zaas Shipping & Trading Co, Great Success Shipping Co and Bagsak Shipping Co as well as Mauritius registered Bagsak Shipping Co. These companies and their cargo vessels were used to deliver oil products and gas to the Houthi controlled port of Ras Isa. Michael Faulkender, Deputy Secretary of Treasury, said: "Today's actions underscore our commitment to disrupt Houthis efforts to fund dangerous and destabilizing attack in the region." Treasury will continue to use its tools and authority to target those that seek to allow the Houthis to exploit Yemenis and continue their violent campaign. Houthi-controlled TV had broadcast a video of the sanctions just hours earlier A U.S. Airstrike in Yemen killed 68 people inside a center of detention for African migrants. In March, the United States designated the Houthis a "foreign terrorist organization," accusing them of threatening American civilians in the Middle East and their personnel as well as other partners in the area and the global maritime trade. The Houthis claim that the attacks on ships are in solidarity with Palestinians living in Gaza. They have disrupted the global economy, increased inflation fears and heightened concerns about the aftermath of the Israel-Hamas conflict. Since it overthrew the government in 2014, the group controls the majority of Yemen's population, including Sanaa. (Reporting Katharine Jack and Daphne Psaledakis, Editing by Doina Schiacu)
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EU sets duties on Chinese construction machinery
The European Commission announced on Monday that it had imposed import duties up to 66.7% for Chinese machines that lift workers in construction after concluding the producers benefited from unfair subsidies and sold at artificially low price. The Commission stated that the extra duties on Chinese mobile equipment (MAE), will range from 20,6% to 66,7%. It said this to protect the domestic producers of the EU market, which is worth over 1 billion euro ($1.14 billion per year). These tariffs are part of a series EU anti-dumping duties and anti-subsidy measures aimed at Chinese imports. This includes a high profile investigation into Chinese electric vehicles that culminated in October last year. The EU executive that conducted the investigation said Chinese MAE manufacturers had benefited from preferential funding, grants and state provision of inputs below market rates. According to the Commission, Chinese producers gained 41% of the market in 2022 from 29% in 2010 and sold their products at a price that was around 20% lower than EU competitors. EU MAE producers Haulotte, Manitou and Zoomlion are French companies. The European Union has imposed anti-dumping and anti-subsidy tariffs on nearly 80 Chinese products, from ironing boards to truck tyres. Reporting by Philip Blenkinsop, editing by David Evans.
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Document shows UK's proposal for a statement of shared values between the UK and EU
According to a draft document that was seen by the. The document shared with EU member states in recent days is described as a "geopolitical introduction" to a strategic partnership between Britain, the EU and both sides, which they hope to reach an agreement on at a London summit on May 19. Though it doesn't mention Trump by name, the text contains several elements that are in stark contrast with current U.S. policy. The new partnership is meant to be a signal of a reset in EU-UK relations after Brexit. U.S. proposals to end the war in Ukraine call for Washington's de facto recognition that Russia controls Crimea and other parts of Ukraine. Leading European capitals are opposed to this option. The draft document states: "We reaffirmed that we continue to support Ukraine's sovereignty, independence and territorial integrity within internationally recognized borders." The draft stated that "we confirmed our shared principles for maintaining global economic stability, and our mutual commitment to open and free trade", adding that both sides would continue working on "how we can minimize the impact of fluctuations of the global economic order". The document reiterates the commitment of Britain and EU to multilateralism. It said: "We are committed to achieving the Paris Agreement's goal of keeping global temperatures rise to 1.5degC." Reporting by Lili bayer and Andrew Gray, Editing by GV de Clercq & Emelia Sithole Matarise
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China approves the construction of 10 new nuclear units worth $27 billion
The Paper, a government-backed newspaper, reported late Sunday that China's State Council had approved the construction 10 new nuclear power plants. The total cost was estimated at 200 billion yuan (about $27.44 billion). The pace of growth is expected to continue in the next few years with an average of 10-11 units approved each year between 2022-2024. Five nuclear power plants are being expanded by the newly approved projects. They all use domestic technology and include Fangchenggang, Sanmen, Haiyang, Xiapu, Chongqing, Xiapu, Shandong and Taishan, Guangdong. China's nuclear energy association said in their annual white paper released also on Sunday that the country had invested a record amount of 146.9 bn yuan in the engineering and construction of nuclear power plants last year. According to a white paper, China will have 57 units operating by the end of 2024 with a capacity installed of 60 gigawatts. The report predicts that by 2030 China will be the world leader in installed nuclear capacity. It is currently ranked third after the U.S., France and Russia. In 2024, nuclear power accounted for a little over 5% of China’s electricity generation. By 2040, this is expected to increase to 10%. The white paper stated that China will continue to promote international co-operation, particularly with Belt and Road countries and major nuclear countries, while accelerating self-reliance.
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China's gold imports through Hong Kong rose by around 42% in March m/m
Hong Kong Census and Statistics Department figures released on Monday showed that China's total imports of gold via Hong Kong rose by 41.9% in March compared to February. The data revealed that China's gold exports to Hong Kong were lower than its net imports in March for the third consecutive month. China is the largest consumer of gold in the world, and its buying activities can have a significant impact on global gold prices. Hong Kong's data might not be a complete view of Chinese gold purchases as it is also imported through Shanghai and Beijing. By the numbers, net imports from Hong Kong into China in March were -4.888 metric tonnes compared to -26.398 tons imported in February. Hong Kong's total imports of gold by the world's largest gold consumer in March were 21.071 tons, up from 14.851 tonnes in February. KEY QUOTES The net import for March was only five tonnes, compared to an average of 15 tonnes per week from January-February. This reflects a gradual improvement in mainland demand," said StoneX analyst Rhona OConnel. The People's Bank of China has reportedly allocated new import quotas for selected international banks in the last few weeks. CONTEXT As a hedge against inflation and global uncertainty, gold has increased by more than 25% by 2025. This is largely due to Trump's tariffs, the expectation of Federal Reserve interest rate cuts, geopolitical tensions between the Middle East, Ukraine and the United States, as well as strong central bank purchases and increased investment in gold-backed ETFs. Gold discounts in India reached their highest level in almost nine years last week as record prices discouraged buyers. (Reporting and editing by Anmol Choubey and Anjana Anil in Bengaluru)
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Sinopec, a Chinese company, partners with Saudi Aramco in a $4 billion joint venture
Sinopec, the state-run oil company in China, announced on Monday that it had signed a deal with a Saudi Aramco unit to create a joint venture with a capital of $3.95 billion. Sinopec's unit in Singapore, Aramco Asia Singapore Pte, and Saudi Aramco signed the agreement. (AAS). Sinopec will contribute 7,20 billion yuan, and its unit 14,40 billion yuan respectively. AAS will contribute the remaining 25% of the registered capital. Fujian Sinopec Aramco Refining and Petrochemical Co will be involved in port operations, crude oil transport, and other activities in the Gulei Port Economic Development Zone in Zhangzhou in China's Fujian Province. Sinopec, Saudi Aramco and other Middle Eastern companies began construction of the complex last November as part of their plans to expand downstream business outside of the Kingdom and supply one million barrels of crude oil per day to China to invest in oil-tochemicals. Sinopec reported in a separate announcement on Monday a 27,6% decline in the first-quarter profit based on China Accounting Standard.
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China's crude storage grew in March, reversing an earlier draw: Russell
In March, China's refineries produced the most oil in an entire year. However, the amount of crude added to inventories rose to its highest level in almost three years due to a surge in imports. According to calculations based upon official data, China's crude surplus reached 1.74 million barrels a day (bpd). This is the highest level since June 2023. In March, refiners had a large surplus of crude oil available after they had drained their stockpiles during the first two months of this year when imports of oil were low due to the high prices at the time of cargo arrangements. China does not reveal the volume of crude oil flowing in or out of its strategic and commercial stockspiles. However, an estimate can still be made if you subtract the amount of oil that has been processed from the total crude oil available from both imports and domestic production. According to data released by the government on April 16, refining processed 14.85 millions bpd during March. This is up 0.4% compared to the same month of 2024. In March, crude imports reached 12.11 million barrels per day (bpd), up 5% on the same month last year and the highest level since August 2023. According to records, domestic production rose 3.5% in March to 4,48 million bpd, the highest since the middle of 2011. After subtracting the volume of processing, 16.59 million bpd is available for refiners. China's refiners used up their inventories for the first time since 18 months in the first two-month period of 2025. They processed approximately 30,000 bpd per day more than was available through crude imports and domestic output. The massive surplus in march means that there were 580,000 bpd of crude oil available for the first three months, more than what was being processed. The story of the world's largest crude importer for March is that both the imports and the refinery processing were stronger than they had been in the previous two months. It is unclear whether the performance of March was a result of improved demand in the second largest economy in the world, or if it was more driven by temporary factors. IRAN IMPORTS The surge in imports of crude oil from Iran and Russia was the main reason for this rebound. Kpler, a commodity analyst firm, estimated that imports from Iran reached 1.71 million barrels per day (bpd) in March. This is a 20% increase from the 1.43 million bpd of February and reflects a five-month record. The increase in Iranian imports was driven by the expectation that the United States would introduce new measures targeting vessels carrying Iranian oil. This led China's refiners stock up on Iranian oil before new sanctions were implemented. Imports of Russian crude oil also increased as refiners began using non-sanctioned tanks to transport cargoes. This allowed them to avoid the sanctions that former U.S. president Joe Biden imposed just before he passed Donald Trump over in January. March's crude imports came at a time when global prices were also easing. Brent futures, the benchmark for 2025, went from a high of $82.63 per barrel on January 15 to less than $70 in early March. China's refiners are more likely to increase crude purchases when prices fall and reduce imports when they go up, as was the case in the first two month of this year. The price of crude oil has fallen further since March. It reached a five-year high on April 8, at $61.34 per barrel, as concerns about the global economy grew amid Trump's escalating tariff war. It may help import volumes in the coming months. However, it will also depend on how fast Trump's massive tariffs on Chinese imports translate into a lower fuel demand when manufacturing and shipping volume declines. The higher processing rates in March were likely due to the increased run rate at smaller independent plants, as well as by the launch of a new unit by Shandong Yulong Petrochemical. If the Chinese economy is able to navigate the tariff storm, it will determine whether or not refinery volumes can continue to rise. These are the views of the columnist, an author for.
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India's March Industrial Output Misses Expectations but Rebounds from 6-Month Low
India's industrial production in March fell short of economists' expectations due to a faster data release and a slower mining activity. However, it rebounded after a six-month high in the preceding month, according to government data released on Monday. The industrial output in March grew by 3% compared with the 3.3% expected by economists and a revised 2,7% in February. The data revealed that mining activity increased at a slower rate of 0.4%, compared with 1.6% one month earlier. The manufacturing output increased by 3% in march, compared to a revised 2.8% the month before. Meanwhile, electricity production grew from 3.6% to 6.3%. India announced earlier this month that it would release its monthly industrial production growth figures on the 28th day of each month. This will reduce the 42-day interval between data releases. Aditi Nayar is an economist with ICRA. She said that the data's release early may have dampened estimates of growth. This could be revised more later. The output of consumer durables, including household appliances and cars, increased 6.6% in march, compared to a 3.7% increase in February. The output of capital goods (which includes machinery and manufacturing plants) increased by 2.4% in march, compared with an increase of 8.2% in the previous month. The industrial output grew by 4% between April and March, a slowdown from the 5.9% increase in the previous period. Although the United States is currently engaged in positive trade negotiations with India, concerns over possible U.S. tariffs on imports and abrupt policy changes continue to loom over global industries.
Castrol India's first quarter profit climbs on stronger engine oil demand
Castrol India, a producer of engine oil and lubricants, reported a 8% increase in its first-quarter profits on Monday due to the growing demand for their products.
The profit at Castrol India (majority owned by British oil giant BP) increased to $27.4 million from the 2.16 billion rupees it earned a year earlier. Revenue increased by 7.3%, to 14.22 billion Rupees.
Castrol is India’s largest private retailer for engine oils. It has focused on providing premium products to sport utility vehicles, India's top-selling car category.
Analysts believe the company will benefit from the rising demand for oil products, as India's transition to electric cars is taking place at a slower pace.
Just 2.5% of cars and 5% two-wheelers are sold in India. India aims to have 30% of new vehicles sold in India be electric by 2030.
India's auto sales to dealers by manufacturers grew by about 2% during the quarter of January-March, with large trucks, SUVs, and scooters being the top sellers.
Castrol India provides its lubricants across all segments to India's largest automakers, including Maruti Suzuki India and Hero MotoCorp.
In a press statement, KedarLele, the Managing Director of Castrol, stated that "the successful relaunch and continued traction on rural markets were key growth drivers, and contributed significantly to our volume increase this quarter."
On Monday, the company's shares closed up 3.2% ahead of results.
(source: Reuters)