2024-03-06 10:46

NEW DELHI, March 6 (Reuters) - OPEC is set to win a bigger share of India's oil imports in coming decades due to the proximity of its supplies, the producer group's head told Reuters, after its dominance was recently eroded by competition from discounted Russian oil. The share of oil from the Organization of the Petroleum Exporting Countries (OPEC) imported by India declined from about 65% in 2022 to 50% last year, according to industry data, after New Delhi became the biggest buyer of seaborne Russian crude in the aftermath of Moscow's invasion of Ukraine. OPEC members and other producers must adapt to changing market dynamics due to the "redirection" of trade flows since early 2022, with more Russian oil supply to India and elsewhere in Asia, Haitham Al Ghais, OPEC's secretary general, said in an emailed response to Reuters questions. "OPEC Middle East producers remain ideal suppliers to the Indian market, given their close proximity. It is a perfect supplier-consumer fit, and cost efficient for all parties," Al Ghais said, adding he sees a greater role for OPEC members in India's development beyond oil. OPEC supplied 54% of India's imported oil in January, according to industry sources. "We expect levels to rise further in the coming decades as India's economic development continues," Al Ghais said, adding that "many" national oil companies from OPEC members plan to invest in India’s refining sector. India plans to expand refining capacity to 9 million barrels per day (bpd) by 2030, from 5.02 million bpd currently. India, the world's third-biggest oil importer and consumer, is forecast by the International Energy Agency to be the world's biggest oil demand growth driver through 2030. OPEC expects Indian demand to more than double by 2045 to 11.7 million bpd. https://www.reuters.com/markets/commodities/opec-expects-share-indian-oil-imports-rise-again-2024-03-06/

2024-03-06 10:33

BEIJING, March 6 (Reuters) - China's government should introduce preferential tax and financial support policies for the country's shale oil sector, the chairman of state oil and gas giant Sinopec Ma Yongsheng said on Wednesday. China's shale oil reserves are more geologically complex and expensive to develop than those in North America, where drillers have achieved large scale commercial extraction of shale reserves with the help of government financial support, Ma said in a statement. Authorities should also increase financial support for scientific and technology research to raise shale oil output, he added. China has invested heavily in developing shale oil and other capital intensive, technically challenging reserves to support domestic oil production as output from mature fields declines. https://www.reuters.com/markets/commodities/sinopec-calls-more-government-support-china-shale-oil-projects-2024-03-06/

2024-03-06 10:14

MUMBAI, March 6 (Reuters) - The Indian rupee closed stronger on Wednesday, aided by an uptick in most of its Asian peers ahead of a closely watched testimony from Federal Reserve Chair Jerome Powell before U.S. lawmakers. The rupee ended at 82.8225 against the U.S. dollar, higher by 0.09% from its previous close at 82.8950. The dollar index slipped nearly 0.2% to 103.6, while Asian currencies climbed, with the Indonesian rupiah up 0.4% and leading gains. The local currency gained towards the end of the session, aided by dollar sales from at least two large foreign banks, a foreign exchange trader at a private bank said. The absence of dollar bids from state-run banks, typically seen towards the close of the session, were also missing which helped the rupee gain, the trader added. Benchmark Indian equity indices rose to fresh record highs with the Nifty 50 and BSE Sensex ending the session higher by about 0.5% each. While there have been strong debt inflows over the last couple of weeks, the rupee's gains have been capped by strong dollar demand from importers and likely intervention from the Reserve Bank of India, Gaurang Somaiya, a foreign exchange research analyst at Motilal Oswal Financial Services, said. Overseas investors have poured $5 billion into Indian bonds so far this year, compared with the $8 billion of net inflows into debt seen over 2023. Investors now await the release of U.S. job openings data and remarks from the Fed Chair, slated to speak both on Wednesday and Thursday, for further cues on how the trajectory of benchmark policy rates in the United States. The odds of a May rate cut are around 22%, while those for June have risen to nearly 69%, up from about 63% a week earlier, according to CME's FedWatch tool. https://www.reuters.com/markets/currencies/rupee-ends-higher-tracking-asian-peers-awaits-fed-chair-powells-remarks-2024-03-06/

2024-03-06 10:14

KUALA LUMPUR, March 6 (Reuters) - Malaysia said on Wednesday it will closely monitor how the EU responds to a WTO ruling that supported the bloc's stance that palm oil-based biodiesel should not count as a renewable biofuel, but sought changes in how it implemented that decision. A World Trade Organization adjudicating panel, in its first ruling related to deforestation, on Tuesday rejected Malaysia's claims against the EU decision, but accepted its complaints over how the measures had been prepared, published and administered. The EU will need to make adjustments, but need not withdraw its measures, following the WTO ruling. The Malaysian government will monitor any changes to the EU's regulations to bring it into line with the WTO's findings, and pursue compliance proceedings if necessary, Plantations and Commodities Minister Johari Abdul Ghani said in a statement on Wednesday. Malaysia, the world's second largest producer of palm oil, has described the EU's renewable energy directive as discriminatory, and in 2021 asked the WTO to examine the rules restricting the bloc's use of palm oil-based biofuels. Under the regulations, palm oil-based fuels can no longer be considered as renewable transport fuel and are to be phased out by 2030, as the EU has determined that palm oil cultivation resulted in excessive deforestation. Johari said the WTO report found fault with the EU’s rules on indirect land use change to ban palm oil biofuels, and with the bloc's approach to notifying and consulting with other economies when introducing new trade measures. "This ruling from the WTO demonstrates that Malaysia's claims of discrimination are indeed justified," he said, adding that the government would continue to defend the interests of palm oil biofuels industry players against trade barriers. https://www.reuters.com/world/asia-pacific/malaysia-monitor-changes-eu-rules-after-wto-ruling-deforestation-case-2024-03-06/

2024-03-06 08:01

MOSCOW, March 6 (Reuters) - Two Ukrainian drones struck fuel facilities at one of Russia's largest iron ore plants on Wednesday, though no one was injured and the plant was working as normal, Russian officials and the plant owner said. Kursk governor Roman Starovoit said a second drone had hit the Mikhailovsky GOK iron ore plant which is owned by Metalloinvest (MTALI.UL), Russia's largest iron ore producer, around two hours after he announced a first strike. He posted on social media that Russian air defences were in operation and urged people to remain calm. Unverified video footage on Russian Telegram channels showed plumes of black smoke rising into the sky and damage at the plant, apparently after the first strike. A source in Ukraine's GUR military intelligence agency told Reuters that it was responsible for the attack. "Today, as a result of a drone attack in the Zheleznogorsky district, a fuel tank at the fuel and lubricants warehouse of the Mikhailovsky Mining and Processing Plant caught fire," Metalloinvest said in a statement after the first attack. The company said in separate statements after both strikes that the plant was working as normal. "There were no casualties. The necessary measures are currently being taken to extinguish the fire." Starovoit had blamed Kyiv for the attacks on the plant in Kursk region's Zheleznogorsky district, which is known for its iron mines and is located around 90 km (56 miles) from the Ukrainian frontier. He said later that there was a risk of missile strikes on the area. Mikhailovsky GOK is one of the largest iron ore mining and processing facilities in Russia. Through open-pit mining, Mikhailovsky GOK is developing an iron ore deposit with proven reserves of 10.4 billion tonnes, according to Metalloinvest. Ukrainian drone attacks have repeatedly hit Russian oil refineries and other economic infrastructure in recent weeks. The Kursk region has come under regular attack in the course of the war. The Mikhailovsky GOK previously came under attack in December, when Kursk governor Starovoit said that a Ukrainian drone had damaged a power line supplying part of the plant. Ukraine has bet on long-range drones to strike targets deep inside Russia. Kyiv began the war without the long-range strike capabilities of its adversary, and its Western allies refused to provide long-range missiles for fear of escalating the conflict. Russia carried out an overnight attack on Ukrainian regions on Wednesday with 42 drones, Ukrainian officials said. At least seven people were injured. Separately on Wednesday, authorities in Russia's Belgorod and Voronezh regions, which are also regular targets for attack close to the frontline in Ukraine, said that drones had been downed there, too. The Baza Telegram channel, which is close to Russian law enforcement, reported that the drones downed over Voronezh had been trying to attack a military airbase and an oil depot. https://www.reuters.com/world/europe/ukrainian-drone-strikes-fuel-warehouse-russias-kursk-region-governor-says-2024-03-06/

2024-03-06 07:53

PARIS, March 6 (Reuters) - The European Union on Wednesday agreed on a deal to unjam air traffic reform in a bid to bring order to the mosaic of airspace regulations that is blamed for chronic delays and unnecessary emissions across Europe. The Belgian EU presidency said on Wednesday that negotiators from the European Council presidency and European Parliament had reached provisional agreement on reforming the "Single European Sky", aiming to increase capacity, lower costs and increase the air traffic control system's adaptability, while also trying to reduce aviation's environmental impact. The deal comes after decades of foot-dragging, political divisions and union opposition, and still needs to be approved by the Council and the European Parliament. The deal "will enable major progress in reducing CO2 emissions from the aviation sector, and will also give member states more tools to limit the nuisance generated by aeronautical activity," Georges Gilkinet, the Belgian minister for mobility, said in a statement. Under the agreement, member states will set up national supervisory authorities to assess air traffic control's structure and financial sustainability. Member states can merge economic and safety oversight functions in the same administrative entity, cutting red tape and conforming to common organisational models. The new regulation will incentivise the use of the most fuel-efficient routing and increased use of alternative clean propulsion technologies, enabling air traffic network manager Eurocontrol to make more sustainable and efficient use of the airspace, the statement said. https://www.reuters.com/business/aerospace-defense/eu-strikes-deal-unjam-european-air-traffic-reform-2024-03-06/