Latest News
-
Indian retailers increase fuel prices for the fourth time in a row to curb losses
Dealers said that India's state-owned fuel retailers raised diesel prices by 2.71 rupees ($0.0283) and petrol by 2.61 rupees per litre, marking the fourth increase in a month to recover some losses caused by higher crude oil costs as a result of the Iran War. Indian state fuel retailers who control 90% of the Indian market began increasing pump prices on May 15, after elections were completed in certain key states. Since then, the state companies have increased?the price of petrol and diesel by approximately 7.8% and 8.6% respectively. New Delhi petrol will cost 102.12 rupees per litre, and diesel 95.20 rupees. India, which is the third largest oil consumer and importer in the world, has been hit by rising crude prices as well as supply disruptions following the closure of Strait of Hormuz. New Delhi also implemented austerity measures in order to curb fuel consumption and control its oil import bill, as policymakers prepare for a prolonged shock. Prices vary across states because of local taxes. State retailers have also suffered a rise in?fuel losses as customers switch to retail pumps that are cheaper, leading to shortages. IOC said in a statement on Saturday that its retail sales for the period of May 1-22 were up?by 18% compared to a year earlier and petrol sales had increased by 14%. $1 = 95.6890 Indian Rupees (Reporting and editing by Christian Schmollinger, Sonali Paul and Nidhi Palyekar from New Delhi)
-
New Zealand Pro surfers halted by 'wildlife injury' to photographer
The World Surf League event was put on hold for several hours after a photographer who was shooting the event suffered an injury from what organizers believe to be a shark or sea lion bite. The WSL announced that the New Zealand Pro semi final between Brazilian world champions Yago Dore and Italo Fereira in Raglan had been halted because the in-water camera needed medical attention after suffering puncture wounds. Renato Hickel, WSL Tours and Competition Vice President said that "this morning one member of the water photography group suffered a wildlife injury." He's fine, he is on his way to a hospital. He is in stable condition. We're in constant contact with him." Hinkle told the?event broadcast earlier that they weren't sure what type of animal caused the injury. At this point, we are not sure if it was a sea-lion or a shark. He said that the doctor who was on scene was inclined to believe it was a seal instead of a large shark. "Nevertheless, it was very frightening." The organizers will assess the situation on Monday and aim to resume competition at 1 p.m. (0100 GMT). Animal attacks at surf events are not uncommon, but they do happen. In 2015, world champion Mick Fanning famously wrestled with a shark during the final of WSL event in South Africa's Jeffreys Bay. Raglan, which hosted a world championship tour event for the first time ever, was short of its famously long left hand point break waves?for the majority of?the ten days leading up to the event. Monday's conditions were some of the best during the waiting period. Dora was ahead with a 6.33 to Ferreira's 3 pointer when their match was stopped. Morgan Cibilic, an Australian, had earlier defeated Griffin Colapinto of California with a total of '15.34' to a score 12.20. This earned him a place in the finals. Carissa Moore, Hawaii's Olympic champion and five-times world champion will face California's Sawyer Lindblad for the women's title. (Reporting and editing by Nick Mulvenney; Lincoln Feast)
-
Oil and dollar decline on Middle East Peace Hopes
U.S. Stock Futures climbed on Monday, while oil and the dollar fell. The prospect of an agreement to end the Iran War boosted risk appetite. However, a lack of clarity about when the 'Strait of Hormuz' would open kept enthusiasm in check. Energy prices have soared in response to the nearly three-month war in the Middle East. Worries about inflation and the closure of the Strait of Hormuz, through which most world energy passes, has impacted global rates. Donald Trump, the U.S. president, said that he told his representatives on Sunday not to rush any deal with Iran. His administration also played down expectations of an imminent breakthrough. Trump said just a day before that Washington and Iran had "largely" negotiated a peace agreement that would reopen this waterway that, prior to the conflict, carried about one-fifth the global oil and LNG shipments. Brent crude futures fell over 4%, to $98.83 per barrel. U.S. West Texas intermediate CLc1 also dropped over 4%, to $92.03 per barrel. The euro rose 0.37% to $1.1646 while the Japanese yen climbed to 158.85 U.S. dollars in early trading, as the safe-haven dollar lost some of its recent gains. Nasdaq and S&P were both up 0.6%. Nick Twidale is the chief market analyst for ATFX Global. He expects that on Monday, investors will embrace more risk, but they won't surge higher until it has been confirmed that reopening of?the Strait?of?Hormuz. He said, "We need to reach an agreement in the next sessions because we know that there are still major sticking points." Nikkei, the Japanese stock market index, was positioned for a strong opening to Monday's trading session. Commonwealth Bank of Australia's strategists stated in a recent note that the most important issue for financial markets is when the Strait of Hormuz will reopen. They asked: "Under which conditions will the?Strait reopen, and how long will it take to repair production and infrastructure in order to ramp up energy production and other goods back to pre-war level?" (Reporting and editing by Stephen Coates in Singapore, Ankur Banerjee)
-
Oil drops to 2-week lows as US-Iran is seen moving closer towards peace deal
Oil prices fell to a 'two-week low' on Monday, despite the fact that U.S. President Barack Obama and Iranian President Hassan Rouhani remain at odds on key issues. These include the blockades of the Strait of Hormuz which continue to limit oil supplies from the Middle East. Brent crude futures fell $4.71 or 4.55% to $98.83 per barrel at 2234 GMT. U.S. West Texas Intermediate was $92.03 per barrel, down $4.57 or 4.73%. Both contracts reached their lowest levels since May 7 earlier in the session. On Saturday, U.S. president Donald?Trump stated that Washington and Iran had "largely" negotiated a memorandum of agreement on a deal to reopen Strait of Hormuz. Before the conflict, the Strait of Hormuz carried one-fifth of the world's oil and LNG shipments. Trump said on Sunday that he told his representatives to not rush into any Iran deal. MST Marquee Analyst?Saul Kavonic? said: "Despite all the caveats, risks, and concerns that remain with the peace deal, and Strait of Hormuz?there is some light at?the?end of?the tunnel, which may bring some relief to oil prices in the near future." Analysts 'expect it to take months for oil flow through the strait to return back to normal, and for damaged oil-and-gas facilities to be repaired. Reporting by Florence Tan, Editing by Cynthia Osterman & Edmund Klamann
-
There are 21 missing people in the Philippines after a building collapse that has left at least one person dead.
Authorities confirmed that at least one person died after a building collapsed on Sunday in the Philippines. Rescuers were searching the rubble to find 21 people listed as missing. Officials have launched an investigation into the collapse of a multi-storey structure in Angeles, north of the capital, Manila. Rescuers were seen scrambling over concrete slabs and mangled metal as they searched for survivors. The sifting was done with the help of'rescue dogs', heartbeat detection devices, and heavy equipment. RESCUE EFFORT CONTINUES The authorities confirmed that the 65-year old Malaysian had died. His body was recovered from the neighbouring hotel, which had also been damaged by the collapse. Maria Leah Sajili told a media briefing that five of the 21 people reported missing were trapped. The status of two of the five was immediately unclear. Sajili warned, however, that the operations will become more difficult after dark. Officials informed reporters that the building's planning records indicated that it was to be a "nine-storey condominium-hotel" under the permit approved, but that a swimming pool was being built on the 10th floor. (Reporting and editing by Christian Schmollinger; Additional reporting and Eloisa Loza; Editing and rewriting by William Mallard, Helen Popper and Christian Schmollinger)
-
China reduces the death toll of Shanxi coal mining disaster to 82
Local officials announced at a press conference held late Saturday that the death toll had been revised to 82. The explosion at the Liushenyu mine in China's north province of Shanxi on Friday night killed 82 people. Initial reports from state media said that at least 90 people had been killed. Even if the number is lower, it remains China's most deadly mining accident since 2009 when a gas exploding at the Xinxing Mine, in Heilongjiang Province, killed 108. At a press conference, local officials stated that the initial death count reported by state media was incorrect. Guo Xiaofang said that the situation was chaotic after the incident, and the company had a difficult time calculating the number of employees, leading to the inaccurate initial number. At the time of explosion, there were 247 workers underground. Guo reported that two people were still missing, 128 had been injured and were hospitalised, and 35 were not hurt. Local officials stated at the press conference that Shanxi Tongzhou Coal Coking Group owns Liushenyu Mine and that all four mines of this company have been closed, and executives detained. The People's Daily, a state-run newspaper, published an editorial about the accident on its front page Sunday morning. It called for more?attention to safety?in production as well as to "completely revert the tendency to prioritize development over safety." Xinhua reported that President Xi Jinping had on Saturday called for authorities to "spare nothing" when it came to treating the injured, and executing search and rescue operations. He also ordered a probe into the incident. Officials stated at the press conference that the mine has a production capacity of 1,2 million tons of coal annually. Last year, China mined 4,83 billion tons of coal. This fuel is the foundation of its energy sector. (Reporting and editing by Christian Schmollinger; Luoyan Luu, Colleen Howe)
-
California searches for novel solution to chemical tank heating up and threatening catastrophe
The incident commander revealed on Saturday that firefighters were bringing in outside experts from other countries to prevent a disaster. This was because some shelters nearby had run out of space to accommodate evacuees. The evacuation orders were still in effect for an area covering tens and thousands of residents in the Garden Grove suburban Los Angeles. California Governor Gavin Newsom has declared an emergency in Orange County. His office has urged residents to evacuate. Craig Covey said, in a social media video, that "we brought in subject-matter experts from across the state to help us think outside the box. We had some very productive conversations today." He did not elaborate on potential solutions. As the risk grows, shift to offensive from defensive Anaheim, Fountain Valley La Palma, and Huntington Beach all reported full evacuation shelters. Covey had earlier stated that crews returned to the danger zone over night after drone readings suggested on Friday that water sprayed onto the tanks helped stabilize the situation. When crews arrived at the gauge of the tank, they discovered that the temperature inside was 90 degrees Fahrenheit. (32 degrees Celsius) This is up from the 77 F (25 C), when responders pulled back. He said that the temperature was rising by one degree per hour. "That's bad news." Since Friday, officials have warned that the tank containing methyl methacrylate (a flammable chemical commonly used in plastics and manufacturing) could rupture, spilling 'up to 7,000 gallons of toxic material or explode, endangering nearby tanks. Covey, a firefighter from Covey Fire Protection Services, said that on Saturday they were investigating whether a large flow of cooling could slow down the curing inside the tank to the point where it would reduce the pressure and prevent an explosive explosion. Covey stated that it was unacceptable for him to let the device blow up and fail. The incident occurred on Thursday, at the GKN Aerospace plant in Garden Grove. This city has a population of 172,000 and is located about 30 miles (50 kilometers) south of Los Angeles. According to its website, the site is specialized in manufacturing and testing windows and canopies of commercial and military aircraft. GKN stated that it was working closely with "all relevant specialists" to resolve the issue. GKN apologized for the inconvenience caused to local residents and businesses. Covey stated that crews switched from a defensive to offensive stance overnight, with the help of chemists in the manufacturer's emergency response teams. The aim was to neutralize the 15,000-gallon nearby tank and reduce its potential explosiveness if it failed. Covey said, "We put people in danger last night." Officials from the Department of Health have expressed concern that prolonged exposure to vapors could lead to severe respiratory problems. Air-quality monitors did not detect vapor at the time of the last health update, according to officials. Dr. Regina Chinsio - Kwong, of the Orange County Health Care Agency, said that Friday: "You're safe so long as you stay out of the area that has been designated as an?evacuation zone". Covey stated that crews are?also prepared for a potential spill, by looking at ways to dike, dam, and divert liquid into a holding zone at the commercial site rather than allowing it to reach storm drainage, river channels, or the ocean. Covey stated, "We will not give up." (Reporting in New York by Rodrigo Campos, with additional reporting by Dan Catchpole, and editing by Sergio Non. David Gregorio, William Mallard, and Sergio Non.
-
California chemical tank igniting after evacuation in LA suburban suburb, fire official
The incident commander reported on Saturday that firefighters trying to prevent a chemical explosion in Southern California discovered overnight that the tank, which was failing, was "heating up" internally despite attempts to cool it. The evacuation orders were still in effect for a?area that covered tens and thousands of residents in the Garden Grove suburb in Los Angeles. California Governor Gavin Newsom declared a state of emergency in Orange County, and his office asked residents to evacuate. Craig Covey said that crews returned to the danger zone overnight in Garden Grove after drone readings suggested on Friday that water sprayed onto the tanks helped stabilize the situation. Covey explained in a Saturday morning video that the drones only measured the exterior of the vessel and not the chemical within. The crews found that the temperature inside the tank was 90 degrees Fahrenheit, or 32 degrees Celsius. This is up from the 77 degrees Fahrenheit or 25 degrees Celsius when the responders pulled back. He said that the temperature was increasing by one degree per hour. Covey told Covey, "That is the bad news." Since Friday, officials have warned that the tank containing methyl methacrylate (a flammable chemical commonly used in plastics and manufacturing) could rupture, spilling up to 7,000 gallons of toxic material, or explode, endangering nearby tanks. Covey, a firefighter from Covey Fire Protection Services, said that firefighters were investigating whether a large flow of cooling water could?slow down the curing inside the tank to the point where it would reduce pressure and stop an explosion. Covey stated that "we cannot allow this to fail and explode." "Our goal is to not let that happen." The incident started on Thursday, at the GKN Aerospace plant in Garden Grove. This city has a population of 172,000 and is located about 30 miles (50km) south of Los Angeles. According to the site's website, it specializes in manufacturing and testing windows and canopies of commercial and military aircraft. GKN stated that it was working with "all the relevant experts" to resolve the problem. GKN's spokesperson issued a statement on Saturday apologizing for the inconvenience caused to local residents and business owners who were forced to evacuate. On Friday, officials expanded evacuation orders after the explosion risk increased. According to Amir El-Farra, Garden Grove Police chief, about 15% of the people living in the area covered by the order refuse to leave. Covey stated that crews switched from a defensive to offensive operation over night with the help of chemists in the emergency response team from the manufacturer. The goal was to neutralize the nearby 15,000-gallon storage tank and reduce its potential explosiveness if it failed. Covey stated, "We put people in danger last night." Garden Grove, Anaheim, and Cypress are all nearby cities that have been evacuated. Officials from the Department of Health have expressed concern that prolonged exposure to vapor could lead to severe respiratory problems. As of the last health update, air-quality monitors did not detect vapor. "You're safe so long as you stay out of the area that was determined as an evacuation zone," said Dr. Regina Chinsio Kwong, of the Orange County Health Care Agency on Friday. Covey stated that crews were also prepared for a potential spill, looking at ways to dike, dam, and divert liquids into a holding zone on the commercial site rather than allowing them to reach storm drains or river channels, or the ocean. Covey stated, "We will not give up." (Reporting from Rodrigo Campos, New York; additional reporting by Dan Catchpole. Editing by Sergio Non & David Gregorio).
Russell: China's thermal coal production drops, but prices of imported coal in Asia rise amid the Iran war.
Although the Iran war has impacted crude oil and natural gas prices, its impact on coal has been muted. Prices for thermal grades are quietly rising to multi-year heights.
The conflict between the United States of America and Iran has led to the loss of about 10% of world crude oil, and a fifth of LNG, but thermal coal supplies remain largely unaffected. Even though the cost of shipping and producing has increased due to higher fuel prices.
Coal prices are not solely driven by the?Iran War. Other factors, such as low Chinese production and Indonesian regulations, may be more influential.
According to commodity analysts Kpler, Asia's seaborne thermal coal imports are expected to have their best month since December in May.
The imports of thermal coal in Asia are expected to hit 76.26 millions metric tons by May, up 23 percent from April. This is also higher than the 72.83 million that were imported in May 2012.
All of the top buyers in the region have seen gains.
China, the largest coal importer in the world, is on course to receive 22.63 millions tons of seaborne thermal coal, up from 16.3 million tons in April, and the highest since January.
China's appetite to import is driven by a weaker domestic production. April production was 385.63 millions tons, down from 440.62 in March and also 1% lower than April of last year.
China's first four-month output fell by 0.1%, to 1.58 billion tonnes.
The fact that China's thermal electricity production, which is largely coal-fired?rose by 3.6% during the first four month of the year suggests that the supply-demand balance in China has been tightened, encouraging imports.
The Shanxi coal mine disaster, the worst in 17 years at a metallurgical mine that killed 82 people last Friday may cause a further shortage of coal as authorities increase safety inspections in both thermal coal and coking coal mining.
China's increasing import demand has helped to lift prices?of grades it seeks. The commodity price reporting -agency Argus assessed Indonesian coal, which had an energy content 4,200 kilocalories/kilogram (kcal/kg), at $64.43 a tonne in the week ending May 22. This was a three year high and up by 42% from the end of last.
Kpler predicts that India, as the second largest importer of thermal coal, will see arrivals of 13,78 million tons in May. This is the highest since June last years and 7.3% more than the 12,84 million recorded in April.
Last week, heat waves drove electricity demand to new records. This boosted demand for coal-fired generators.
INDONESIA CHANGES
The world's largest coal exporter, Indonesia, announced regulatory changes last week that will have a significant impact on the way cargoes are traded.
Indonesia intends to "take control" of the coal trade, by directing exports via a state-owned company that will control contracts and price.
The government has said that it will honor existing long-term agreements, but it has also stated it reserves the rights to review the prices of such deals.
By implementing a state control on exports, the government hopes to?stop under-invoicing' and collect more revenue.
It's possible that the trade flow will be affected if there is still uncertainty about how the new system works in practice.
Japan's thermal coal imports are expected to increase from 6.63 millions tons in April to 7.59 million tonnes in May. South Korea's arrivals will be 6.73 million tons, which is the highest since January, and up from 4.79 million tons in April.
Both countries in North Asia are among the top four coal importers, and they are also the best positioned to switch from LNG imported natural gas to coal-fired electricity generation.
Due to the Iran War, both spot and contract LNG prices are likely to rise sharply. Japan and South Korea may therefore seek ways to maximize coal-fired power generation.
The price of high grade Australian thermal coal has risen as a result. The weekly assessment of Newcastle?Port rose to $133.09 per ton during the week ending May 22. This is up from $131.80 and only slightly below the 18-month-old high of $140.53 set in early April.
Australia is the second largest coal exporter and may be in a better position to capitalize on any disruptions to Indonesian coal shipments due to regulatory changes. Its lower-grade coal could replace Indonesian coal.
You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
These are the views of the columnist, an author for.
(source: Reuters)