Latest News
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Indians switch to retail fuel pumps in search of cheaper diesel, causing a shortage
According to a government official, industrial customers are increasingly buying diesel at cheaper retail outlets run by'state-run' companies, rather than from the bulk supply points. This is causing shortages at the pump in some areas. Sujata Singh, joint secretary of the federal oil ministry, stated that diesel sales have increased by 20-30% in some areas. Industrial buyers are paying 40-42 rupees per litre more than retail prices. In New Delhi, the retail price for a litre is 91.58 rupees. Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp., all state-run companies, are now losing money because they're selling diesel below the market price to retail customers. Sharma said that bulk customers should go to bulk supply points, while retail buyers should visit the petrol pumps. She said that state fuel retailers monitor sales in outlets where there are shortages, and they seek support from local authorities and the police to reduce purchases by bulk purchasers. The preliminary fuel sales data shows that Indian state retailers increased their diesel sales by nearly 11.5% from May 1-15, to approximately 3.8 million metric tonnes. Gasoline sales increased by nearly 19% from 1.8 million tons. She said that the Indian state retailers' sales of diesel are also driven primarily by higher prices charged by private fuel retailers, and an increase in consumption among farmers who use diesel generators to irrigate during harvest season. BPCL said on Thursday that its gasoline sales grew by 16.38% between May 1-20, compared to a year ago. Gasoil sales grew by 16.7% and reached about 1.7 million kilolitres. The company stated that it is focused on maintaining seamless supply across smaller cities and distant markets "where localised demands spiked and precautionary purchasing tendencies were observed in recent weeks". (Reporting and editing by Nidhi verma)
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Copper retreats on the slow progress of U.S. - Iran peace efforts
Copper prices eased on Thursday due to concerns over the'slow progress of the U.S. in negotiating a peace agreement with Iran and a possible 'weaker demand for metals from a prolonged war. The benchmark three-month copper price on the London Metal Exchange fell 1.3%, to $13,480 per metric ton during the official open-outcry trade after rising by 1.8% the previous session. LME copper is up 8% for the year, but it has fallen from its high of $14,196.50 last week. Ewa Mnthey, commodities strategist at ING, said: "For the moment, geopolitics are setting the tone. But without a clear catalyst for demand, copper is struggling to maintain its record-high momentum." The talks to end the conflict have made little progress in six weeks, even though Pakistan has stepped up its diplomatic efforts. Investors try to balance out the effects of possible supply shortages due to mine disruptions, and a lack of sulphuric acids against the threat of demand erosion due to increased inflation and weaker growth. Standard Chartered analyst Sudakshina Unnikrishnan said: "The market for base metals is still wary about the demand loss that could result from high energy prices, and its implications on global growth and 'inflation. LME aluminium increased 0.7% to $3,648 per ton. This was aided by investors who were bullish and bet on more disruptions in Gulf. About 8%-9% of global output is produced in the?region. LME nickel fell 1% to $18,740 per ton, as investors digested details of a?Indonesian?policy to place the exports of certain nickel products under?state?control. Zinc fell 0.6%, to $3,533.50 per ton. Lead edged up 0.5% to $1,990, and tin declined 2%, to $52,950.
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India's electricity demand reaches a record of 270 GW despite outages due to scorching heat
India's peak power demand reached a "record" high of 270.73 Gigawatts Thursday. Some regions in the nation experienced power outages as a scorching heat wave increased demand for cooling. New Delhi has already exceeded its expectations of 270GW in peak power demand. And there is still more than a whole month of summer left. El Nino, a weather pattern that is causing power demand to increase, has caused a heat wave in large swathes on the subcontinent. India's peak power demand has been at a record high for four consecutive days this week, due to the intense heatwaves. The data from the federal power ministry shows that Thursday's total surpassed a previous record of 265.44GW. The Indian weather bureau has predicted that many Indian states will experience heat waves above average in May. Ankit Jain is vice president at ICRA Limited and co-group leader of corporate ratings. He said that the peak demand could increase if "heatwaves continue to be severe in major parts of India." Jain said that the overall energy deficit in India was 0.2%, and the peak deficit reached?0.1% during April. This could have caused power cuts. Grid-India data shows that localised power outages have been reported in certain regions during the night. This indicates a growing'stress' in the system, even though the overall supply is adequate during the day. India's non-fossil energy capacity is about 228 GW, but it still relies on coal for more than 70% of its?power production. Jain explained that the intermittent nature of renewable energy sources could lead to power shortages in some areas due to an unexpected spike in demand. (Reporting and editing by Sethuraman NR)
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QatarEnergy and ExxonMobil Sign Deal with Egypt to Study Cyprus Gas Development
QatarEnergy announced on Thursday that it had signed a preliminary agreement with 'ExxonMobil' and Egypt's Government to study 'development and commercialisation' of 'gas discoveries' in 'Cyprus, using Egypt's gas and LNG infrastructure. QatarEnergy stated that the memorandum "highlights Egypt as a possible hub for Eastern Mediterranean Gas, supporting deeper integration of Egypt and Cyprus in the field of natural gases while optimizing the utilisation of existing infrastructure". Egypt's liquefaction plants, which convert natural gas to liquefied gas for export, have been underused for a long time. Gas infrastructure in Egypt?serves domestic customers?and international markets. QatarEnergy was the largest LNG producer in the world before the U.S. - Israel war with Iran. However, two of its 14 LNG trains were damaged by Iranian attacks on March, causing a loss of 12.8 million tonnes per year for three to five years. The Strait of Hormuz is effectively closed, and it's impossible to ship LNG. Before the conflict, a fifth of all global oil and gas was shipped through this strait. QatarEnergy CEO Saad Al-Kaabi said that the agreement was a step toward advancing energy cooperation across the Eastern Mediterranean. He is also Qatar's Minister of State for Energy.
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The Kremlin does not see any risk to the fuel supply in Russia despite attacks on refineries
Dmitry Peskov, Kremlin spokesperson, said that there are "no risks" to fuel supplies in Russia. He was responding to a report on a drop in oil refinery in the central region of the country after recent drone attacks by Ukraine. According to Russian officials, Ukraine has increased drone attacks against Russia's energy infrastructure. The number of oil refineries that have been targeted in the past year has doubled. "No, Kremlin does not see these risks. In fact, some regions may see a reduction in production. Peskov said that seasonal maintenance is also to blame for this. He added that "the entire fuel balance was calculated?and the compensation system is in place." Kirishi, a refinery in western Russia, the Moscow refinery, as well as plants in Nizhny Novgorod, on the Volga River, Ryazan, and Yaroslavl are all targeted. On Thursday morning, the Ukrainian military and President Volodymyr Zelenskiy claimed that Ukrainian drones had struck Rosneft's?Syzran refinery located in Samara. (Reporting and writing by Anastasia Lyrchikova, editing by Guy Faulconbridge & Tomaszjanowski; written by Vladimir Soldatkin)
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WSJ reports that the US will award $2 billion in quantum computing funds and take equity stakes.
The Trump?administration will award $2 billion in?grants in nine quantum-computing firms in deals where the U.S.?government takes?equity shares,?the Wall Street Journal, citing Commerce Department, reported on Thursday. According to the report, the department agreed to give IBM $1 billion from the package, and GlobalFoundries $375 million. According to a WSJ report, the remaining firms, such as D-Wave Quantum and Rigetti Computing, will receive $100 million each. Startup Diraq could receive up to $38 million. The Trump administration would continue its push to "take equity stakes" in companies that are considered to be critical to the domestic supply chain as well as counter China's dominance of certain sectors including chipmaking. It has taken stakes in large companies like Intel and MP Materials - a rare earth miner. Quantum computers are able to handle complex mathematical problems exponentially faster when they 'harness' the laws of quantum physics. Existing quantum computers spend a large portion of their computing power fixing errors, so they aren't faster than classical computers. IBM, GlobalFoundries, Rigetti Computing, D-Wave Quantum, and Infleqtion have not responded to'requests for comment. In premarket trading, shares of companies?that are part of the deal? rose between 7% to 21%.
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Oil drops with US-Iran Peace Talks in Focus
Oil prices dropped?on Friday, continuing losses from the previous day as investors watched peace talks between Iran and the United States, while economic activity in Europe?shrank dramatically. Brent crude futures fell 82 cents or?0.8%? to $104.20 a barge by 0949 GMT. U.S. West Texas Intermediate Futures were down $60 cents or 0.6%?to $97.66. The benchmarks fell around 5.6% to their lowest level in over a week on Wednesday after U.S. president Donald Trump announced that talks with Iran are in the final stages. Tehran is responding to the text sent by the U.S., Iran's ISNA reported on Thursday. The news agency added that the Pakistani army chief's visit to Tehran was to "minimize the gaps" and to help achieve an official announcement of agreement. Trump said he was willing to continue attacks against Iran, but he would wait for "the answers" from Iran. ING analysts stated in a 'note' on Thursday that they had been in a similar situation before. This led to disappointment. They forecast an average Brent price for the current quarter of $104 a barrel. Iran warned of further attacks, and announced steps to consolidate its control of the Strait of Hormuz. The Strait remains mostly closed. The strait was used to transport oil and LNG equaling about 20% of the global demand before the war. Kim Fustier is a senior global oil analyst at HSBC. She said that "oil prices have remained relatively confined despite the magnitude of the Middle East disruption." She said that a pullback in Chinese purchases, along with a surge of exports from the Atlantic Basin led by the U.S. as well as the rapid withdrawal of strategic stockpiles and inventories "has eased the immediate availability concerns as well as narrowed the extreme physical disruptions experienced earlier in the crisis." Surveys showed that the economic activity in the Eurozone shrank in May at its fastest rate in over two and a half years as an increase in living costs, mainly due to war,?hammered service demand across Europe. Stockpile Drawdowns Iran announced on Wednesday a new "Persian Gulf Strait Authority", stating that there would be "controlled maritime zones" in the Strait of Hormuz. Iran closed the strait as a response to U.S. attacks and Israeli attacks which started the war in February. Since an April ceasefire, most of the fighting has stopped. However, while Iran has limited traffic through Hormuz and the U.S. blockedaded its coast, both countries are limiting the flow of goods. The war has caused countries to rapidly?tap into their strategic and commercial inventories, raising fears about draining these stocks. Energy Information Administration (EIA) of the United States announced on Wednesday that it had withdrawn nearly 10 million barrels from its Strategic Petroleum Reserve in the past week, which was its largest withdrawal ever. According to EIA data, U.S. crude stocks also dropped?more than expected last weekend. Mingyu Gao is the chief researcher at China Futures for energy and chemicals. He said that with the Strait of Hormuz closed, global refined products and onshore crude inventories will fall to their lowest levels in five years for this time of the year by late May or late June. Reporting by Stephanie Kelly, Sam Li, and Siyi Liu, in London; editing by Clarence Fernandez and Emelia Sithole Matarise, and Susan Fenton
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Pepco expands in Western Europe to attract value-conscious consumers
Pepco has announced that it is expanding in Western Europe. The discount retailer stated on Thursday that its half-year core profits grew by 17.5%. The Warsaw-listed retailer, which sold the struggling Poundland in Britain last year, plans to open 600 new stores between 2027 and 2030 in Western Europe. This is due to its strong profitability in Spanish and Italian stores. Stephan Borchert, Pepco's CEO, said that the company is "perfectly?positioned? to capitalize on consumers who are looking for value in an uncertain environment. The group will launch a trial store in Ukraine in the western part of the nation. Borchert said that Pepco was serious about helping to develop the war-torn nation. Pepco announced a core profit of EUR516m ($600m) for the first six months of its financial year, and confirmed that it had raised its full-year forecast. The results of this year are an important test for Pepco’s strategic reset, after it sold Poundland in order to focus on its own brand. The company said that the divestment process of its Dealz Brand would be completed in this year. AVOIDING IRAN - WAR? When asked about the Middle East conflict's impact on the group's supply chain, Borchert said that it was "minimal", thanks in part to forward contracts which shielded Pepco against the spike?in fuel and other costs over the short term. Pepco also benefits from its standard routes of Asian shipments. 95% of them have been going around the Cape of Good Hope ever since the Red Sea shipping disruptions in 2024 impacted sales. Borchert was confident in the short to medium term performance but warned that "nobody is sure what will happen next year" if war continues.
Diesel prices rise on Iran war, causing fishing boats to dock worldwide
Captain Chris Welch, of Kennebunk in Maine, has caught fewer lobsters than usual this spring due to the rising diesel prices.
To conserve fuel, he checks and re-baits his traps once every seven to ten days.
Welch, after fueling his vessel Quality Time on a rainy morning at Kennebunk's Harbor, said, "It reduces your profitability." "We have to pay more attention to the bottom line."
Welch, a U.S. fisherman, is "one" of many around the globe whose boats spend more time docked this spring due to soaring fuel prices, driven by the U.S./Israeli war against Iran. This has compromised their small profit margins.
Blockade of Middle East shipments has caused fertilizer prices to rise, forcing farmers to reconsider their planting plans.
According to the United Nations Food and Agriculture Organization, fuel price spikes have had little impact on the global catch of fish. Manuel Barange is the director of the FAO's Fisheries and Aquaculture Division. He said that if fuel prices continue to rise, they could have a greater impact on the global fish catch.
Fuel prices have become a major concern for both consumers and businesses. They also pose a vulnerability to President Donald Trump's Republican Party as they seek to protect their slim majority in the U.S. Congress during the midterm elections in November.
Trump courted U.S. Commercial Fishing Industry as a political constituency by issuing an Executive Order last year that aimed to reduce regulation and advance technologies in order to help them compete globally.
Welch said that it was unclear whether Maine's reduced catch of seafood would affect local lobster prices in the summer when vacationers flood into the state. This is because dealers who buy and ship lobsters to restaurants may also be hit with higher fuel costs, which they might not be able afford.
He said, "This is something that affects us daily."
Fewer Days on the Water
According to AAA's Fuel Price Monitor, the average price for a gallon of diesel this week was $5.65, up from $3.55 one year ago. It is now close to the record set in 2022 at $5.82.
Fuel is the largest expense for fishing fleets. They may need tens or thousands of gallons of fuel to fill up their boats.
Deborah Long, Southern Shrimp Alliance's media liaison, told the Southern Shrimp Alliance that some shrimpers in the U.S. Gulf Coast cannot afford to fill up their 15,000-gallon tank and have been skipping trips.
Imports impacted the U.S. Shrimp Industry even before fuel prices rose. According to a report released by the National Oceanic and Atmospheric Administration in March, imports lowered the value of this sector by 50 percent between 2021 and 2023.
Long stated that "that price jump has wiped out their entire margin."
Alaska is not immune to the pain.
According to Linda Behnken of Sitka, executive director of Alaska Longline Fishermen's Association and a Sitka fisherman, fuel can make up as much as 40% of a fishing trip's expenses.
Behnken stated that the price of gas increased by over $1 per gallon in just one week. This was right before everyone filled up their tanks for the start of the season. "That has a really big impact on cost of operation."
Behnken stated that the current prices for halibut, sablefish (also known as black cod), and other species of fish are so high that boat trips to catch these species continue. When the less profitable salmon season begins in July, the diesel costs could be too high for boats to leave the dock.
Sonny Beal is the president of Maine Lobstermen's Association. He said that in addition to bait and rope, fishing crews are also facing rising costs as a result of inflation.
He said that many people spend fewer days on water.
GLOBAL IMPACTS
Lee Gi-sam is the secretary general of the National Fishermen's Alliance. He said that since the beginning of the war, the number vessels fishing for anchovies,?gizzard shads, yellowtails and mackerels has decreased by over 30%.
Boats are mostly parked in Indonesia because the fish prices are not high enough for a profit, especially with diesel prices on the rise. This is according to?Akhiq Fail Al Arif, an owner of a boat located at Pati Regency, Central Java, which is situated along Indonesia's northern coast.
The Indonesian Tuna Association's secretary general Muhammad Billahmar said that vessels already at sea would?stay out of port, but those returning to port wouldn't go back out due to high fuel prices.
The European fleets are also suffering. Just weeks after the start of the war, the Dutch Fishers Union reported that half their vessels were parked instead of being used for fishing. Reporting by Leah Douglas, Lauren Owens Lambert, in Kennebunk Maine, and Richard Valdmanis, in Portland Maine; Additional reporting by Heejin KIM in Seoul, Yuddy Cahya, Dewi Kurniawati, and Yuddy Budiman in Jakarta; Editing and production by David Gregorio
(source: Reuters)