2024-01-07 13:41

TRIPOLI, Jan 7 (Reuters) - Libya's National Oil Corporation (NOC) on Sunday declared a force majeure with immediate effect at its Sharara oilfield, which can produce up to 300,000 barrels per day, due to protests in the area. Libya's oil output has been disrupted repeatedly in the chaotic decade since the 2011 NATO-backed uprising against its former leader Muammar Gaddafi. NOC said in a statement that the Sharara closure has suspended crude oil supplies from the field to Zawiya terminal. The Sharara field, one of Libya's largest, has been a frequent target for local and broader political protests. The field is located in the Murzuq basin in southeast Libya. It is run by state oil firm NOC via the Acacus company, with Spain's Repsol (REP.MC), France's Total (TTEF.PA), Austria's OMV (OMVV.VI), and Norway's Equinor (EQNR.OL). Negotiations are ongoing to resume production as soon as possible, NOC said. The field was closed by protesters in Fezzan region in the south last week demanding public services and development projects. "The loss of confidence in the continuity of supplying the global market with Libyan oil will result in Libyan oil remaining unmarketed," the oil and gas ministry said in a statement on Wednesday. The ministry said that the closures of oil facilities "have serious consequences, and it may be difficult to quantify and explain all the damage it may cause." "Closing and reopening the production requires maintenance operations and the treatment of technical problems, as well as a lot of effort, a long time, and a high cost to be borne by the Libyan state treasury”, the ministry warned. In July, production at the Sharara, Elfeel and 108 fields was stopped by tribal protesters over the abduction of a former finance minister. https://www.reuters.com/markets/commodities/libyas-noc-declares-force-majeure-sharara-oilfield-2024-01-07/

2024-01-07 12:16

PRAGUE, Jan 7 (Reuters) - The pace of Czech central bank's lowering of interest rates will depend on the pace of decline in inflation, the bank's Vice-Governor Eva Zamrazilova said on CNN Prima News television on Sunday. "If the decline toward 2% (in inflation) is slower than we think, it would mean let's say rather those small, 25-basis point decreases," she said in a debate broadcast live. "If inflation falls faster, it possible to sometimes make a more significant rate lowering." The bank started its rate-easing cycle with a 25 basis-point reduction in the main repo rate to 6.75% on Dec. 21. https://www.reuters.com/markets/europe/czech-central-bank-vice-governor-zamrazilova-larger-than-25-bps-rate-cuts-2024-01-07/

2024-01-07 11:19

SINGAPORE, Jan 7 (Reuters) - Top oil exporter Saudi Arabia on Sunday cut the February price of its flagship Arab Light crude to Asian customers to the lowest level in 27 months, a company statement showed, amid competition from rival suppliers and concerns about supply overhang. Saudi Aramco (2223.SE) slashed the official selling price (OSP) for February-loading Arab Light to Asia by $2 a barrel from January to $1.50 a barrel over Oman/Dubai quotes, a level last seen for November 2021. The price cut, the biggest in 13 months, is in line with market expectations, as refiners called for competitive prices from Saudi Arabia comparing to crude oil supplied from other Middle Eastern producers and the arbitrage cargoes from the Atlantic Basin. "Saudi crude is still relatively more expensive compared to other regional crude. But we are happy enough to see such prices, making it much more affordable for us," said a trader with a North Asian refinery. The Asian physical oil market softened over the past month, reflecting expectations of less supply tightness in the near term and weaker demand as some Asian refineries are scheduled to shut down for maintenance in the spring season of the northern hemisphere. Despite a combined voluntary output cut of 2.2 million barrels per day by the OPEC+ group of oil producers, market participants are not convinced the supply reduction will be enough to stop a build-up in global oil inventories and to fuel an oil price rally until at least the second quarter of 2024. Saudi Aramco also trimmed prices for other crude grades it sells to Asia by $2 a barrel in February from the previous months, the statement showed. For other regions, Saudi Aramco cut its February Arab Light OSP to northwest Europe by $2 a barrel to $0.90 a barrel above ICE Brent. The OSP of Arab Light to the United States was lowered by $2 a barrel to $5.15 versus ASCI in February. https://www.reuters.com/business/energy/saudi-arabia-cuts-feb-arab-light-crude-price-asia-27-month-low-sources-2024-01-07/

2024-01-07 06:33

WAJIMA, Japan, Jan 7 (Reuters) - Japan's prime minister vowed to provide "ceaseless" support to areas devastated by the New Year's Day earthquake as snow and sleet hampered rescue and relief efforts and local media reported that the disaster had now claimed at least 126 lives. The adverse weather on the Noto peninsula continued to vex survivors at the epicenter of the magnitude 7.6 quake that left more than 30,000 homeless and cut power to tens of thousands of residences and businesses. At least 222 people are still reported missing and more heavy snow or rain is forecast overnight for the region. Footage on national broadcaster NHK showed construction trucks digging through piles of dirt three meters (almost 10 ft)tall to unearth houses buried by landslides. "Rescuing people trapped under the rubble and responding to isolated areas are issues that must be tackled with the highest priority," Prime Minister Fumio Kishida said on an NHK program on Sunday. "As we move forward with ceaseless reconstruction and recovery efforts, we must not hesitate in responding due to budget constraints in the disaster-affected areas," he added. Kishida had said on Friday that his government would tap 4.74 billion yen ($32.77 million) of budget reserves for reconstruction efforts. The governor of Ishikawa Prefecture, where the Noto peninsula is located, declared a state of emergency on Saturday, calling the quake "an unprecedented disaster" for the region, NHK reported. In the city of Wajima, on the peninsula's northern coast, a line of cars stretching as far as the eye could see had formed to refuel at a petrol station as fuel supply to the region gradually returned. Prefectural governments have sent trailers equipped with several flushable toilets to evacuation centres in Wajima and other disaster-struck cities, where water supplies are only just restarting, NHK reported. At a centre near Wajima's famed "Asaichi" morning market, which was burnt to the ground after the quake, some of the 700 people taking shelter there stood in a line on a stairway, passing boxes of water to higher floors. "Some people have left as electricity is restored in parts of the city (but) we are still at capacity and not accepting new evacuees," the centre's receptionist said. ($1 = 144.6500 yen) https://www.reuters.com/world/asia-pacific/japan-premier-vows-ceaseless-aid-snow-hampers-quake-relief-2024-01-07/

2024-01-07 06:12

MOGADISHU, Jan 7 (Reuters) - Somalia's President Hassan Sheikh Mohamud signed a law nullifying an agreement by the breakaway Somaliland region to grant Ethiopia access to the Red Sea in return for recognition as an independent nation, he said late on Saturday. Ethiopian Prime Minister Abiy Ahmed's stated ambition to secure access to the Red Sea is a source of tension between the Horn of Africa nation and its neighbours and has raised concerns of a fresh conflict in the region. Somalia, which considers Somaliland part of its territory, rejected the New Year's Day deal that would allow landlocked Ethiopia to lease 20 km (12 miles) around the port of Berbera, on the Gulf of Aden with access to the Red Sea, for 50 years for its navy and commercial purposes. Ethiopia would in return become the first country to recognise Somaliland as an independent nation. "This evening, I signed the law nullifying the illegal MoU between the government of Ethiopia and Somaliland," Mohamud posted on X, formerly Twitter, late on Saturday. "This law is an illustration of our commitment to safeguard our unity, sovereignty and territorial integrity as per international law." The Somali president did not specify what the new law says or when parliament passed it. There was no immediate comment from Somaliland or Ethiopian officials. Abiy said in October that Ethiopia's existence was "tied to the Red Sea", adding that if countries in the Horn of Africa "plan to live together in peace, we have to find a way to mutually share with each other in a balanced manner". His national security adviser has said Ethiopia would offer Somaliland an unspecified stake in state-owned Ethiopian Airlines in return for giving it access to the Red Sea. https://www.reuters.com/markets/somalia-president-signs-law-nullifying-ethiopia-somaliland-port-deal-2024-01-07/

2024-01-07 00:41

LONDON, Jan 7 (Reuters) - Britain said it plans to spend 300 million pounds ($380 million) on a new programme to produce advanced nuclear fuel suitable for the next generation of power-generating reactors, seeking to dislodge Russia as the main international supplier. Britain was one of over 20 countries - including the United States, France and South Korea - that recently signed a pledge to triple global nuclear capacity by 2050 as part of international efforts to cut climate-damaging carbon emissions. On Sunday, Britain said its new investment would help support domestic production of high-assay low-enriched uranium (HALEU) - a type of fuel currently only produced on a commercial scale by Russia. Like other European nations, it has sought to cut its energy reliance on Russia since President Vladimir Putin's forces invaded Ukraine in February 2022. "The launch of the HALEU programme will enable the UK to supply the world with specialist nuclear fuel and further isolate Putin’s Russia," said the energy security department in a statement. The first production plant is scheduled to be operational by the early 2030s in the North West of England, the statement said. Further details on production targets and how the money would be spent are due to be set out in an as-yet unscheduled strategy paper. The European Union and a U.S. firm are also working on production. While strongly opposed by campaign groups over its environmental risks, Britain sees a central role for a nuclear power revival in its long term energy strategy, launching a competition last year to develop small modular nuclear reactors (SMRs). Such reactors are intended to be easier and cheaper to produce, avoiding the high costs and construction delays that have led to a decades-long stagnation in the expansion of global nuclear power capacity. The supply of suitable fuel is seen as one potential bottleneck in meeting the international 2050 pledge, alongside the provision of finance and potential regulatory delays around the introduction of new SMR technology. ($1 = 0.7864 pounds) https://www.reuters.com/business/energy/britain-invest-300-mln-pounds-next-generation-nuclear-fuel-programme-2024-01-07/