2024-10-01 06:47

Oct 1 (Reuters) - A vessel reported being hit by an Uncrewed Surface Vessel (USV) 64 nautical miles northwest of Yemen's Hodeidah on Tuesday, the United Kingdom Maritime Trade Operations agency. The vessel reported seeing four splashes close by, and that all crew were safe and it was proceeding to its next port of call, the agency added. Sign up here. https://www.reuters.com/world/middle-east/vessel-reports-hit-by-sea-drone-off-yemens-hodeidah-ukmto-reports-2024-10-01/

2024-10-01 06:37

Krathon expected to hit Kaohsiung metropolis on Wednesday Forecasters warn of storm surge, torrential rains Troops on standby, sailors from listing ship rescued TSMC says does not expect major impact to its operations KAOHSIUNG, Taiwan, Oct 1 (Reuters) - Taiwan mobilised nearly 40,000 troops on Tuesday to be on standby for rescue efforts as powerful Typhoon Krathon approached its populous southwest coast which is bracing for a storm surge. As the typhoon approached, helicopters lifted to safety 19 sailors forced to abandon ship when it took on water. Some flights were cancelled, a rail line was closed and in the major port city of Kaohsiung, shops and restaurants shut and streets were mostly deserted. The Taipei city government declared a typhoon holiday for Wednesday, closing the island's financial markets. Taiwan regularly gets hit by typhoons but they generally land along the mountainous and sparsely populated east coast facing the Pacific. This one will make landfall on the island's flat western plain. Krathon is forecast to hit Kaohsiung early on Wednesday afternoon, then work its way across the centre of Taiwan heading northeast and cross out into the East China Sea, the Central Weather Administration (CWA) said. Kaohsiung, home to some 2.7 million people, declared a holiday and told people to stay at home as Krathon - labelled a super typhoon by the U.S. Navy's Joint Typhoon Warning Center - approached. Li Meng-hsiang, a forecaster for Taiwan's Central Weather Administration, said the storm has reached its maximum intensity and could weaken slightly as it moves closer to Taiwan, warning of gusts of more than 150 kph (93 mph) for the southwest. "The storm surge might bring tides inland," Li said. "If it's raining heavily it will make it difficult to discharge waters and as a result coastal areas will be subject to flooding." Kaohsiung Mayor Chen Chi-mai, speaking to reporters after a disaster management meeting, said the strength and path of the storm were both on par with 1977's Typhoon Thelma which killed 37 people and devastated the city. "After the typhoon, the whole of Kaohsiung was without water and electricity, just like a war," Chen said, recalling the decades-ago destruction. "As much as possible, limit going out." Taiwan's defence ministry said it had put more than 38,000 troops on standby, as Kaohsiung residents made their own preparations. "It's going to strike us directly. We must be fully prepared," said fisherman Chen Ming-huang, as he tightened ropes on his boat in Kaohsiung harbour. "In the worst-case scenario the ropes might snap and my boat could drift away." TSMC (2330.TW) , opens new tab, the world's largest contract chip maker and a major supplier to Apple (AAPL.O) , opens new tab and Nvidia (NVDA.O) , opens new tab and which has a large factory in neighbouring Tainan, said it had activated routine typhoon preparations and did not expect a significant impact to its operations. SAILORS RESCUED Off the southeast coast, Taiwan rescue helicopters lifted to safety 19 sailors from a listing cargo vessel travelling from China to Singapore, the government said. The sailors were taken to shelter on Taiwan's remote Orchid Island. The transport ministry said 88 domestic flights and 24 international ones had been cancelled, with boats to outlying islands also stopped. It added that all domestic flights - 234 in total - would stop on Wednesday. The rail line connecting southern to eastern Taiwan was closed, though the north-south high speed line was operating as normal, albeit with enhanced safety checks for wind and debris. In Kaohsiung, most shops and restaurants pulled down their shutters, and traditional wet markets shut with streets mostly deserted. At a building in Siaogang district, home to the city's airport, residents practiced how to rapidly set up metal barriers to stop water flooding into the underground parking lot. "We will have only a few minutes to react if the flooding is coming," said Chiu Yun-ping, deputy head of the building's residents' committee. Chen Mei-ling, who lives near the harbour, said in past typhoons high tides reached just a few metres (yards) from her house's main door and she had made preparations. "We've got torches and emergency food supplies," Chen said. "It's a strong typhoon and we are worried." Sign up here. https://www.reuters.com/world/asia-pacific/troops-mobilised-taiwan-warns-storm-surge-powerful-typhoon-krathon-2024-10-01/

2024-10-01 06:35

Oct 1 (Reuters) - Australia's Rio Tinto (RIO.AX) , opens new tab has signed an agreement with UK refinery developer Green Lithium to develop a lithium supply chain securing critical battery metal supplies for the UK and EU's automotive and manufacturing sectors, the companies said. "By building our refineries, we will accelerate the adoption of EVs and sustainable energy storage through the increased supply of low-carbon, battery-grade lithium chemicals," Sean Sargent, chief executive of Green Lithium, said on Tuesday. The partnership positions both Rio and Green Lithium to capitalise on surging demand for electric vehicle (EV) metals. Sign up here. https://www.reuters.com/markets/commodities/australias-rio-tinto-develop-lithium-supply-chain-with-uk-firm-2024-10-01/

2024-10-01 06:23

Iran launches missile attack on Israel OPEC+ group meets on Oct. 2 Additional oil supply expected in December Houthis attack another vessel in the Red Sea Upcoming - U.S. oil inventory data from API and EIA Oct 1 (Reuters) - Oil prices climbed about 3% on Tuesday after Iran fired a salvo of ballistic missiles at Israel in retaliation for Israel's campaign against Tehran's Hezbollah allies in Lebanon. Brent futures gained $1.86, or 2.6%, to settle at $73.56 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.66, or 2.4%, to settle at $69.83. Earlier in the day, both crude benchmarks were up by over 5%. Alarms sounded across Israel and explosions could be heard in Jerusalem and the Jordan River valley after Israelis piled into bomb shelters. Clay Seigle, an independent political risk strategist, said in an email that Israel "will not hesitate to widen its military offensive to hit Iran directly. And Iran's oil assets are very likely on the target list." An Israeli attack on Iranian oil production or export facilities could cause a material disruption, potentially more than a million barrels per day, Seigle said. In the Red Sea, meanwhile, another Iran-backed group, the Houthis in Yemen, claimed responsibility for attacking at least one of two vessels damaged off the port of Hodeidah. The Houthis have launched attacks on international shipping near Yemen since last November in solidarity with the Palestinians in the war between Israel and Hamas in the Gaza Strip. "In case of an escalation, Iran's proxies, the Houthi rebels and Iraqi paramilitaries, might launch attacks on Middle East oil producers, namely Saudi Arabia," said Tamas Varga, an analyst at PVM, a brokerage and consulting firm that is part of TP ICAP. "There is now a genuine fear that oil supply will be impacted, and nervous and volatile trading is anticipated until the picture becomes clear," Varga added. Before news that Iran was planning a missile attack, the oil market was trading down near a two-week low as the outlook for increased supplies and tepid global demand growth outweighed fears over an escalating Middle East conflict and its impact on crude exports from the region. A panel of ministers from the OPEC+ producer group will meet on Oct. 2 to review the market, with no policy changes expected. Starting in December, the OPEC+ group comprising the Organization of the Petroleum Exporting Countries plus allies such as Russia is scheduled to raise output by 180,000 bpd each month. In addition, the possibility that Libyan oil output will recover also weighed on the market earlier on Tuesday. Libya's eastern-based parliament agreed on Monday to approve the nomination of a new central bank governor, which could help to end a crisis that has reduced the country's oil output. Iran and Libya are both members of OPEC. Iran, which is operating under U.S. sanctions, produced about 4.0 million bpd of fuel in 2023, while Libya produced about 1.3 million bpd last year, according to data from the U.S. Energy Information Administration (EIA). Weekly U.S. oil storage data is due from the American Petroleum Institute trade group later on Tuesday and the EIA on Wednesday. Analysts projected U.S. energy firms pulled about 1.3 million barrels of crude out of storage during the week ended Sept. 27. , If correct, that would be the third withdrawal in a row and compare with a withdrawal of 2.2 million barrels during the same week last year and an average increase of 400,000 barrels over the past five years (2019-2023). Sign up here. https://www.reuters.com/business/energy/oil-steady-prospect-more-supply-offsets-middle-east-conflict-worries-2024-10-01/

2024-10-01 06:07

Dollar gains with Treasuries on safe haven bets Wall Street indexes end lower, global index falls Oil rallies but settles below its session highs Oct 1 (Reuters) - MSCI's global equities index fell with Treasury yields on Tuesday as investors shied away from riskier assets while oil futures rallied on concerns about supply after Iran launched missiles at Israel. However Wall Street stocks ended above their session lows and Treasuries yields also pared declines on hopes that further escalation of the Middle East conflict was not imminent. Earlier on Tuesday, Iran fired a salvo of ballistic missiles at Israel in retaliation for Israel's campaign against Tehran's Hezbollah ally in Lebanon. The United States condemned Iran's move and said it was consulting with Israel on a response after U.S. military forces helped Israel defeat the attack. The U.S. dollar index rose and gold, traditionally a safe haven, rose during the session to more than 1% as investors looked for less risky places to put their money. Oil prices rallied as the escalating violence raised concerns about supply. On top of geopolitical worries, U.S. investors worried about the aftermath of Hurricane Helene and the halt of about half of U.S. ocean shipping due to a strike by dockworkers on the East and Gulf Coasts after a midnight deadline passed with no sign of a new contract deal with port owners. And adding extra pressure to equities, the S&P 500 and the Dow had ended Monday's session with record closing highs. "Markets were priced for perfection. Then overnight we got a few extra wrinkles in the mix. The port strike is one. The hit east coast infrastructure took from the aftermath of hurricane Helene is another," said Carol Schleif, Chief Investment Officer at BMO family office in Minneapolis. "Then you throw in the third factor of Iran firing missiles at Israel," said Schleif, noting that the attacks added to gains in the dollar and created demand for Treasuries. "Investors have been holding their breath hoping it wouldn't escalate." Oil prices settled higher though below their highs of the day. Clay Seigle, an independent political risk strategist, said that an Israeli attack on Iranian oil production or export facilities could cause a material disruption, potentially more than a million barrels per day. U.S. crude settle up 2.44% at $69.83 per barrel and Brent settled at $73.56 per barrel, up 2.59% on the day. Earlier in the day, both crude benchmarks rose more than 5%. On Wall Street the Dow Jones Industrial Average (.DJI) , opens new tab fell 173.18 points, or 0.41%, to 42,156.97, the S&P 500 (.SPX) , opens new tab fell 53.73 points, or 0.93%, to 5,708.75 and the Nasdaq Composite (.IXIC) , opens new tab fell 278.81 points, or 1.53%, to 17,910.36. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell 6.09 points, or 0.71%, to 845.69. Earlier, Europe's STOXX 600 (.STOXX) , opens new tab index ended the day down 0.38%. CBOE's market volatility index, Wall Street's fear gauge, (.VIX) , opens new tab rose to 19.25 - its highest closing level since Sept. 9. In foreign exchange markets, the Japanese yen and Swiss franc, seen as safe haven currencies, had both gained ground as earlier reports pre-empted the attacks from Iran. The dollar was also helped by data showing resilient a U.S. labor market on Tuesday and a push back from Federal Reserve Chair Jerome Powell on Monday against bets on bigger interest rate cuts. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.45% to 101.20. The euro was down 0.58% at $1.1069 and against the Japanese yen , the dollar weakened 0.08% to 143.51. As investors looked to the safety of U.S. Treasuries, the yield on benchmark U.S. 10-year notes fell 6.3 basis points to 3.739%, from 3.802% late on Monday. The 2-year note yield, which typically moves in step with interest rate expectations, fell 4.3 basis points to 3.6084%, from 3.651% late on Monday. Referring to the Iran/Israel conflict, Jim Barnes, director of fixed income at Bryn Mawr Trust in Berwyn, Pennsylvania, said: "We'll just wait and see and hopefully this pause will hold and then the market will change their attention now back to some of the morning data, which obviously has more and longer-term implications for yields." Precious metals, also seen as a safe haven asset in uncertain times, were in demand on Tuesday. Spot gold rose 0.91% to $2,658.39 an ounce. U.S. gold futures rose 0.95% to $2,661.10 an ounce. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-10-01/

2024-10-01 06:05

LITTLETON, Colorado, Oct 1 (Reuters) - United States exporters of liquefied natural gas (LNG) are likely cheering the shutdown of the last coal-fired power plant in the United Kingdom, as the move locks in long-term gas demand by the world's sixth largest economy. By closing the 2,000 megawatt (MW) coal plant in Nottinghamshire, Britain has become the first G7 country to end coal-fired power production and make significant progress against energy transition and pollution reduction targets. But the move also elevates natural gas to the UK's most essential power fuel, and means the country will likely need to boost gas imports going forward even as power firms continue to roll out renewables and other forms of clean power output. That's good news for LNG exporters in the U.S., which are the world's largest suppliers of the super-chilled fuel and are targeting growth into European markets which are quicker and cheaper to service than more distant buyers in Asia. GAS DEFICIT UK gas consumption has exceeded domestic gas production for the past 20 years, according to the 2024 Energy Institute Statistical Review of World Energy. In 2023, the UK's gas shortfall was just over 29 billion cubic meters, which is equivalent to the annual gas output of Kazakhstan, which was the 24th largest gas producer globally last year. Historically, the United Kingdom has relied on Norway to provide a majority of the UK's gas imports by pipeline, and around 41% of total UK gas imports came from Norway in 2023, according to UK government data. However, pipeline capacity restrictions combined with a drive to improve UK energy security has spurred a steady rise in UK LNG imports over the past decade. LNG imports allow power firms to increase the amount of gas that is stored within the UK, and can act as a hedge against the price and supply volatility stemming from heavy reliance on only a few pipeline suppliers. Between 2018 and 2023, UK LNG imports jumped by 171% from 7.2 billion cubic meters (BCM) to 19.4 BCM, according to the Energy Institute. That growth exceeded that of Europe as a whole over that period, and in volume terms placed the United Kingdom second only to France among LNG importers in Europe from 2018 through 2023. US BOOM This climb in UK LNG demand came at a perfect time for U.S. LNG exporters, who have been on a drive to diversify LNG sales beyond Asia. Between 2008 and 2018, around 64% of U.S. LNG exports was shipped to Asian markets such as Japan, China and South Korea. Those countries are considered long-term growth markets for natural gas, and so are natural targets for all LNG exporters. However, U.S.-based sellers are at a severe competitive disadvantage compared to Australia and Qatar in serving Asian markets, due to longer journey times. The trip from the U.S. East Coast to Southern China, for instance, can take 35 days, according to LSEG. That is nearly 4 times longer than from Australia and twice the duration from Qatar, and means U.S. vessels are tied up for far longer on those routes compared to their competitors. The freight economics flipped, however, on European routes. The trip time from Cove Point on the U.S. East Coast to the U.K.'s Grain LNG import terminal is roughly 11 days. That compares to nearly 20 days from Qatar and 30 days from Australia, and so means that U.S. LNG shippers can offer faster delivery schedules and lower freight costs than their peers. And during 2022 and 2023 - when Europe's power markets were surging following Russia's invasion of Ukraine - many buyers were happy to pay top dollar for speedy and regular LNG supplies in order to avert power outages. CAPTIVE U.S. exporters took full advantage of the boom in European LNG import demand in 2022 and 2023, more than doubling shipments to the continent in 2022 to a record 52.5 million metric tons, and then raising sales volumes by an additional 8% in 2023. So far in 2024, however, the pace of sales to Europe has contracted by 22%, dealing a blow to the short-haul service routes from the U.S., Kpler data shows. Sales to the United Kingdom so far this year are down roughly 60%, and the lowest since 2021. Thankfully for U.S. LNG sellers, a roughly 43% rise in LNG imports from Asia has offset the volume loss to Europe, and has pushed overall LNG exports to a new high so far this year. However, the higher shipments to Asia have come at the cost of lengthier journeys and longer turnaround times before vessels can get reloaded. Going forward, however, U.S. LNG exporters will be hoping for a rebound in UK LNG demand, which could help avert any power supply issues following the coal plant shut down, and fuel fresh growth in one of the most lucrative U.S. LNG trade routes. Sign up here. https://www.reuters.com/markets/commodities/uks-last-coal-plant-shutdown-bodes-well-us-lng-exports-maguire-2024-10-01/