2025-03-03 23:19
LAUNCESTON, Australia, March 4 (Reuters) - The OPEC+ group of crude oil exporters justified their decision to increase production by pointing to "the healthy market fundamentals and the positive market outlook." They must be looking at a completely different market to the rest of us. OPEC+, which includes the Organization of the Petroleum Exporting Countries, plus Russia and other allies, said in a statement on Monday that it will go ahead with a planned output increase in April. The volume of oil to be added back in is 138,000 barrels per day (bpd), according to Reuters calculations. In other words, not really enough to make much of a difference to global supply, but more than enough to impact investor sentiment. The immediate reaction was bearish, with global benchmark Brent futures dropping 2.2% to end at $71.59 a barrel, the lowest close in three months. It's hard to take OPEC+ at their word, given the current state of the crude oil market looks anything but healthy. Asia, the top-importing region, saw arrivals drop by 780,000 bpd in the first two months of 2025 compared with the same period last year, according to data compiled by LSEG Oil Research. Asia imported 26.17 million bpd in the January-February period, which is down about 3% from the 26.96 million in the same period in 2024. Asia represents about 60% of global seaborne crude oil imports, giving the continent an outsized role in determining demand and prices. But even outside of Asia, the oil market looks far from healthy. Seaborne imports in the Europe, Middle East and Africa (EMEA) region dropped to 9.1 million bpd in the week ending February 21, according to LSEG, down from 12.8 million bpd the prior week. EMEA seaborne arrivals were 14.2 million bpd in January, meaning they dropped off significantly in February. U.S. crude imports held up better, but were still down 490,000 bpd, or 8%, to 5.82 million bpd in the week to February 21, compared with the prior week. Investors are also turning increasingly bearish on crude, with money managers last week cutting net long U.S. crude futures and options on the New York Mercantile Exchange and Intercontinental Exchange to their lowest level since hitting a record low in December 2023. The bearish mood in crude oil markets is likely to be exacerbated by U.S. President Donald Trump saying that his 25% tariffs on imports from Mexico and Canada will go ahead as of Tuesday. Imports of Canadian crude will be hit with a lower tariff of 10%, but even this may prove significant given Canada currently supplies more than 4 million bpd to the United States, which is about 60% of total imports. The question will be whether Canadian exporters are forced to discount or whether their U.S. refinery customers will be compelled to pay the tariff. While Canadian exporters have very limited options to ship their crude elsewhere, it's also the case that the U.S. refiners that buy it will have difficulty in sourcing and transporting the same type of heavy crude from other suppliers. TRUMP EFFECT The likely disruption to crude markets from Trump's latest round of tariffs, and the inevitable retaliation, may also provide some insight into OPEC+'s decision to raise its oil output modestly in April. It's safe to say the stated reason is not the actual reason, but OPEC+ may have been trying to get ahead of the Trump effect. By raising output the group can be seen to be meeting one of Trump's key demands, namely that it pumps more in order to lower global crude prices. OPEC+ is also giving itself some wiggle room should some of the bullish impacts of Trump's actions come to the fore. Chief among them is his plan to dramatically cut exports from Iran and Venezuela, which would tighten crude markets, especially in Asia, where China, the world's biggest oil importer, is effectively the only customer for Iran. OPEC+ may also be taking the view that the conflict between Russia and Ukraine is likely to worsen rather than be resolved, especially given the seeming breakdown in relations between Trump and Ukraine President Volodymyr Zelenskiy. The oil market impact of this is yet to be determined, as it appears Trump may want to ease sanctions on Russia, moves likely to be strongly opposed by Ukraine's European allies. Another factor for OPEC+ is that the group may have become weary of giving up market share to exporters like Brazil and the United States. Also, if prices are heading lower anyway because of global geopolitical and economic uncertainty, then OPEC+ may as well grab a higher market share. The views expressed here are those of the author, a columnist for Reuters. Sign up here. https://www.reuters.com/markets/commodities/opecs-healthy-crude-oil-market-is-an-illusion-trump-effect-isnt-russell-2025-03-03/
2025-03-03 23:11
March 3 (Reuters) - U.S. LNG firm New Fortress Energy (NFE.O) , opens new tab posted a loss in the fourth quarter on Monday, hurt by weaker performance in its ships as well as terminals and infrastructure segments. LNG exports in the U.S. rose in 2024, reaching near-record levels in December. But lower LNG export prices combined with higher costs squeezed margins for companies such as New Fortress. LNG export prices averaged $6.26 per thousand cubic feet (Mcf) in January to November of 2024, down about 18% from 2023, data from Energy Information Administration showed. At NFE's terminals and infrastructure unit, operating margin declined 44.8% to $206.1 million during the quarter. Operating margin at the ships segment fell to $34.1 million during the October-December period, from $54.2 million a year earlier. The company's total revenue fell to $679 million in the fourth quarter from $758.4 million a year earlier. NFE reported net loss of $224 million, or $1.11 per share, in the three months ended December 31, compared with a net income of $214.9 million, or $1.06 per share, a year earlier. However, the company posted an adjusted profit of 13 cents per share in the fourth quarter, compared with a mean expectation of five analysts for earnings of 4 cents per share according to data compiled by LSEG. NFE also announced a one-year extension to its 80 trillion British thermal unit (TBtu) islandwide gas supply contract with the Puerto Rico Electric Power Authority. In addition, the 10-year operation and maintenance agreement between Genera, which is a subsidiary of NFE, and PREPA will be modified to eliminate future incentive payments in exchange for a $110 million payment. The company said its offshore natgas liquefaction facility Fast LNG (FLNG) 1 unit was placed into service in December 2024, and expects FLNG 2 to be completed in the first half of 2027. Sign up here. https://www.reuters.com/business/energy/new-fortress-energy-posts-quarterly-loss-amid-lower-lng-export-prices-2025-03-03/
2025-03-03 21:51
March 3 (Reuters) - Wild Coast is recalling lots of its frozen raw chicken formula for cats as it could potentially be contaminated by the bird flu virus, the U.S. Food and Drug Administration said on Monday. Last month, two house cats in Oregon were euthanized after testing positive for bird flu linked to their consumption of Wild Coast's pet food. The FDA said that the test results linked cat illnesses and deaths in Washington State and Oregon to one of the recalled lots of the pet food. The virus has infected millions of poultry since the nation's worst-ever outbreak began in 2022, along with thousands of dairy cattle and almost 70 people since April last year. The CDC has said the risk to the general public is low. Wild Coast, which initiated the recall on Saturday, could not immediately be reached for comment. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/wild-coast-recalling-raw-cat-food-bird-flu-contamination-risk-fda-says-2025-03-03/
2025-03-03 21:36
WASHINGTON, March 3 (Reuters) - The U.S. objected to a recommendation on "sustainable" aviation fuels made at a meeting held by the U.N.'s International Civil Aviation Organization, the State Department said on Monday. The ICAO's multinational Committee on Aviation Environmental Protection made the recommendation that Washington says "would unfairly penalize U.S. farmers and significantly benefit Brazil over the rest of the world." Sign up here. https://www.reuters.com/sustainability/us-objects-recommendation-sustainable-aviation-fuels-icao-meeting-2025-03-03/
2025-03-03 21:10
March 3 (Reuters) - A Russian drone attack damaged energy infrastructure in Ukraine's Black Sea port of Odesa on Monday, triggering power cuts in the city and knocking out heating systems, local officials said. "A strike has damaged energy infrastructure," regional Governor Oleh Kiper wrote on Telegram. "There are power cuts now in parts of the city." Odesa Mayor Hennady Trukhanov said the attack had knocked out three boiler plants, prompting officials to scramble to find alternative power sources to restore heating to city residents. Sign up here. https://www.reuters.com/world/europe/russian-drone-attack-causes-power-cuts-ukraines-odesa-governor-says-2025-03-03/
2025-03-03 21:03
LA PAZ, March 3 (Reuters) - A truck traveling on a highway in southern Bolivia collided with a bus early on Monday morning, forcing the bus off the road and killing at least 31 people, police said. Speaking to reporters, police spokesperson Limbert Choque confirmed the death toll, which he said included both men and women, as ambulances and emergency vehicles arrived at the scene of the accident. Another 22 people suffered injuries. President Luis Arce expressed condolences for the victims on social media. "This unfortunate event must be investigated to establish responsibilities," he said in a post on Facebook. "We send our most sincere condolences to the bereaved families, wishing them the necessary strength to face these difficult times." Police said the bus rolled some 500 meters (1,640 feet) down a ravine after the collision, which took place on the highway between Oruro, in the Bolivian Altiplano, and the highland mining city of Potosi. The driver of the truck has been arrested, police added, while the cause of the accident is under investigation. The crash comes just days after more than three dozen people were killed in the same region after two buses collided. Sign up here. https://www.reuters.com/world/americas/bus-crash-bolivia-leaves-least-15-dead-2025-03-03/
