2025-02-19 12:27
CAIRO, Feb 19 (Reuters) - Suez Canal Authority Chairman Osama Rabie said on Wednesday that the Red Sea crisis did not create a sustainable route to replace the canal, adding that there were positive indicators for the return of stability in the region. Iran-backed Houthi militants have attacked vessels in the Red Sea area since November 2023, disrupting global shipping lanes by forcing vessels to avoid the nearby Suez Canal and reroute trade around Africa, raising the costs for insurers. Egyptian President Abdel Fattah al-Sisi said in December the disruption cost Egypt around $7 billion in revenue from the Suez Canal in 2024. That's a drop of more than 60% from its revenue a year before from the canal, Sisi said. Sign up here. https://www.reuters.com/world/africa/suez-canal-chief-says-red-sea-crisis-did-not-create-sustainable-route-replace-2025-02-19/
2025-02-19 12:03
NEW DELHI, Feb 19 (Reuters) - India is scouting for overseas oil storage and is in initial talks with Oman to lease a facility to hold about 5 million barrels of crude oil, said L.R. Jain, chief executive of Indian Strategic Petroleum Reserves Ltd (ISPRL). India, the world's third biggest oil importer and consumer, imports over 80% of its oil needs and is raising its strategic petroleum reserve capacity to protect against any global supply disruption. "If the talks with Oman materialise this would be the first time we will be holding strategic storage overseas," Jain told Reuters, adding his company is looking for storage in other Middle Eastern countries as well. ISPRL, which manages federal oil inventories, operates three SPRs in southern India - at Vizag in Andhra Pradesh, and Mangalore and Padur in Karnataka - with a combined capacity of about 5.33 million tons. India is keen to expand its oil storage capacity to be able to join the International Energy Agency (IEA), which requires its members to hold a minimum of 90 days of oil consumption. India has storage capacity to hold 74 days of crude oil and refined fuels. ISPRL's current oil reserves are enough to cover demand for 9.5 days while Indian companies have crude and refined fuel storage facilities for 64.5 days. Jain said ISPRL will build 4 million tons of strategic storage at Chandikhol in eastern Odisha state and a new 2.5-million ton facility at Padur in Southern India. He said the new underground SPRs at Chandikhol and Padur will be built in partnership with private companies with the federal government having the first right to the oil in the event of a shortage. ISPRL is also considering building a 5-million ton underground crude store, and gas reserves at Bikaner in desert state of Rajasthan, he said. Sign up here. https://www.reuters.com/markets/commodities/india-looks-store-oil-oman-says-isprl-chief-2025-02-19/
2025-02-19 11:59
Trump tell Ukraine to secure a peace deal fast Russia says Ukraine attack cut oil flows on pipe from Kazakhstan Cold US weather froze oil wells in North Dakota, cutting supply US oil inventory data from API and EIA upcoming NEW YORK, Feb 19 (Reuters) - Oil prices held near a one-week high on Wednesday on worries about supply disruptions in Russia and the U.S., while the market awaited clarity on sanctions as Washington tries to broker a deal to end the war in Ukraine. Brent futures rose 20 cents, or 0.3%, to settle at $76.04 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 40 cents, or 0.6%, to settle at $72.25. That was the highest close for both crude benchmarks since February 11. "The market is trying to make up its mind on three bullish drivers: Russia, Iran and OPEC," said BNP Paribas commodities strategist Aldo Spanjer. "People are trying to figure out the impact of announced and actual sanctions." Drone attacks on Russian oil infrastructure are reducing supplies. Russia said Caspian Pipeline Consortium (CPC) oil flows, a major route for crude exports from Kazakhstan, were reduced by 30-40% on Tuesday after a Ukrainian drone attack on a pumping station. A 30% cut would equate to the loss of 380,000 barrels per day of market supply, Reuters calculations show. Russian President Vladimir Putin suggested the CPC attack might have been coordinated with Ukraine's Western allies. In the U.S., cold weather threatened oil supply, with the North Dakota Pipeline Authority estimating production in the state would decline by as much as 150,000 bpd. There is also speculation that the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia and Kazakhstan may decide to delay its planned supply increase in April, said IG market analyst Tony Sycamore. U.S. President Donald Trump denounced Ukrainian President Volodymyr Zelenskiy as "a dictator without elections" on Wednesday and said he should move fast to secure peace. However likely a U.S.-brokered peace deal between Russia and Ukraine may be, analysts at Goldman Sachs said any associated easing in sanctions against Russia is unlikely to bring a significant increase in oil flows. "We believe that Russian crude oil production is constrained by its OPEC+ 9 million bpd production target rather than current sanctions, which are affecting the destination but not the volume of oil exports," Goldman Sachs said in a report. In the Middle East, Israel and Hamas will begin indirect negotiations on a second stage of the Gaza ceasefire deal, which could weigh on oil prices by reducing the risk of supply disruption. Tariffs announced by the Trump administration could also dent oil prices by raising the cost of consumer goods, weakening the global economy and reducing fuel demand. Worries about European and Chinese demand are also helping keep prices in check. Trump's initial policy proposals have raised concern at the Federal Reserve about higher inflation, with firms telling the U.S. central bank they generally expect to raise prices to pass through the cost of import tariffs. The Fed uses higher interest rates to combat rising prices and inflation. So long as the Fed and other central banks keep interest rates higher for longer, borrowing costs will remain elevated, which can slow economic growth and demand for oil. Separately, the market is waiting for U.S. oil inventory data from the American Petroleum Institute (API) trade group later on Wednesday and the U.S. Energy Information Administration (EIA) on Thursday. , Those reports will come out one day later than usual due to the U.S. Presidents' Day holiday on Monday. Analysts forecast energy firms added about 2.2 million barrels of crude to U.S. stockpiles during the week ended February 14. If correct, that would be the first time energy firms added crude into storage for four weeks in a row since April 2024. Sign up here. https://www.reuters.com/business/energy/oil-gains-us-russia-supply-curtailments-market-seeks-ukraine-talks-clarity-2025-02-19/
2025-02-19 11:29
BEIJING, Feb 19 (Reuters) - China invested 6.8 trillion yuan ($940 billion) in clean energy in 2024, approaching the $1.12 trillion in global investment in fossil fuels , opens new tab, according to a new analysis for U.K.-based research organisation Carbon Brief. That was despite growth in China's clean energy investments slowing to 7% from 40% in 2023 amid overcapacity. More than half of that investment came from China's burgeoning electric vehicle, battery and solar industries. The sector's contribution to China's GDP grew to 10% in 2024, up from 9% in 2023, according to the Carbon Brief research, which was conducted by analysts at the Helsinki-based Centre for Research on Energy and Clean Air (CREA). Clean energy grew three times as fast as the Chinese economy, but its contribution to China's economic growth fell to 26% of China's GDP last year against 40% in 2023, as growth in the clean-energy economy cooled. Clean energy industries were defined as including electric vehicles and batteries, renewable manufacturing and power generation, railways, electric grids and storage and energy efficiency. The weaker contribution to GDP growth was also because of deflation and plunging prices for renewable energy equipment such as solar and batteries - although lower prices helped boost the adoption of renewables, the report said. China's burgeoning electric vehicle (EV) industry contributed the largest share of GDP, with 3 trillion yuan of GDP from EV and hybrid production and 1.4 trillion yuan from factory investment. Charging infrastructure contributed another 122 billion yuan. Solar was the next-largest contributor to GDP at 2.8 trillion yuan, with 1 trillion of that tied to investment in power generation projects. Solar manufacturing investment contributed 779 billion yuan to GDP, slipping below power generation as prices for China's solar panels reached all-time lows. Component exports and electricity generation comprised another 607 billion and 386 billion yuan, respectively. The researchers expect growth in clean power investments to continue rapidly through 2025, the last year of the current five-year plan. But they said more ambitious targets for the next plan in 2026-2030 are needed to sustain current levels of clean energy deployment. Sign up here. https://www.reuters.com/world/china/chinas-clean-energy-investments-nearing-scale-global-fossil-investments-2025-02-19/
2025-02-19 11:27
JOHANNESBURG, Feb 19 (Reuters) - AngloGold Ashanti's (AU.N) , opens new tab announced increased returns for its shareholders on Wednesday, after its profit surged to $954 million last year from a loss of $46 million in the prior year, boosted by the precious metal's rally to record highs. The gold producer raised its output forecast for this year to between 2.9 million ounces and 3.2 million ounces from about 2.7 million ounces produced last year. AngloGold said it is raising output after buying Centamin assets last year. AngloGold declared a final dividend of 91 U.S. cents per share, or about $439 million, from 19 U.S. cents a share in the prior year. The miner said it was changing its dividend policy to target a 50% payout of free cash flow. CEO Alberto Calderon said the gold price rally had given AngloGold the strongest balance sheet position in more than a decade, and it is "able to pass on those benefits to shareholders in a more generous dividend policy". According to LSEG data, AngloGold's shares have rallied almost 86% in a year, driven by the move of its primary listing to New York, as well as the bullion rally. Peers, including Barrick Gold (ABX.TO) , opens new tab, have also increased returns to investors. Sign up here. https://www.reuters.com/markets/commodities/anglogold-bounces-back-into-profit-amid-gold-price-rally-2025-02-19/
2025-02-19 11:19
ANKARA, Feb 19 (Reuters) - Turkey has yet to receive confirmation from Iraq on the resumption of oil flows through the Iraq-Turkey pipeline, Turkish Energy Minister Alparslan Bayraktar told Reuters on Wednesday. Iraq's oil minister said on Monday that oil exports from the semi-autonomous Kurdistan region will resume next week, resolving a near two-year dispute that has disrupted crude flows as ties between Baghdad and Erbil improve. A resumption is expected to ease economic pressure in the Kurdistan region, where the halt has led to salary delays for public sector workers and cuts to essential services. Asked by Reuters in parliament when the Iraqi oil flow would start and whether there was any information from Iraq on the subject, Turkey's Bayraktar replied: "Nothing yet." The oil flows were halted by Turkey in March 2023 after the International Chamber of Commerce ordered Ankara to pay Baghdad damages of $1.5 billion for unauthorised pipeline exports by the Kurdistan Regional Government, which Reuters has reported covered 2014 to 2018. A second ongoing arbitration case covers 2018 onwards, a source familiar with the matter has said. Turkey has said the pipeline has been ready since late 2023 to resume flows. The Iraqi central government's Oil Minister Hayan Abdel-Ghani told reporters on Monday that a ministry delegation would visit the Kurdish region to negotiate a mechanism for receiving oil from the region and exporting it, adding the "export process will begin within a week." Abdel-Ghani said Baghdad would receive 300,000 barrels per day (bpd) from the region. Iraq, the Organization of the Petroleum Exporting Countries' second-largest producer behind de facto leader Saudi Arabia, is currently pumping about 4 million bpd, OPEC data shows, in line with the production target agreed with the broader OPEC+ alliance. It remains unclear how Iraq will boost its northern exports and stay compliant with OPEC+ cuts and whether it would, for example, trim exports from Basrah in southern Iraq. Erbil-based Rudaw TV had earlier this week cited Kurdistan's natural resources minister, Kamal Mohammed, as saying oil exports could resume before March because all legal procedures have been completed. The Iraqi parliament approved a budget amendment this month to subsidise production costs for international oil companies operating in Kurdistan, aiming to unblock northern oil exports. Sign up here. https://www.reuters.com/business/energy/turkey-says-nothing-yet-iraq-oil-pipeline-restart-2025-02-19/
