Tag Archives: BKML

World

EXCLUSIVE Germany seeks competition assurances over Nord Stream 2 gas pipeline

Leave a comment

The logo of the Nord Stream 2 gas pipeline project is seen on a pipe at the Chelyabinsk pipe rolling plant in Chelyabinsk, Russia, February 26, 2020. REUTERS/Maxim Shemetov//File Photo

  • Nord Stream 2 pipeline opposed by U.S., some Europeans
  • Critics say project makes Europe too reliant on Russia
  • Pipeline could ease sky-high European gas prices
  • Construction complete, operator says tests started

DUESSELDORF, Oct 5 (Reuters) – Germany’s energy regulator said the Nord Stream 2 pipeline must show it would not break competition rules by limiting which suppliers used it and could face a fine if it started pumping Russian gas to Germany without securing necessary approvals.

Nord Stream 2, a project led by Gazprom (GAZP.MM), which has a monopoly on Russian pipeline gas exports, will pump the fuel via a pipeline under the Baltic, bypassing Ukraine, which is embroiled in a long-running territorial dispute with Moscow.

Construction is completed and tests are underway, but the project has faced opposition from the United States and some European nations, which say it will make Europe too reliant on Russian gas, which accounts for about a third of European needs.

Opponents also say Russia has applied pressure to try to speed up the German approval process by not supplying extra gas to Europe at a time when the region is facing an energy crunch amid surging global gas demand and rocketing prices.

The Kremlin says it is meeting its obligations.

German regulator Bundesnetzagentur (BNetzA) said late on Monday it had asked the pipeline operator, Switzerland-based Nord Stream 2 AG, to show it was meeting all necessary regulatory requirements before the pipeline entered service.

“This relates in particular to issues of non-discriminatory network access and the integration of the interconnector into the German market area,” it said, a reference to rules that include ensuring the operator did not restrict access for other gas suppliers.

BNetzA, which said in September it had four months to complete certification, said it could not rule out that Nord Stream 2 operations could start soon. But it warned the operator that it could face a fine if it started up before necessary certification was secured. read more

ENSURING COMPLIANCE

Nord Stream 2 said on Monday it had started tests on the pipeline, which has capacity to pump 55 billion cubic metres (bcm) of gas a year. It runs parallel to an existing Nord Stream pipeline, doubling capacity of the network. read more

Germany’s Economy Ministry also has to carry out an assessment before the regulator can send its recommendation to the European Commission. The European Union executive then has two months to respond once is receives a submission.

The pipeline operator said: “Nord Stream 2 will continue to undertake all necessary efforts to ensure compliance with all applicable rules and regulations.”

It also said it had appealed against an August German court decision that ruled the pipeline was not exempt from EU rules requiring pipeline owners to be different from suppliers of the gas flowing through them. read more

Nord Stream 2 says these EU rules, which were amended in 2019, were aimed at torpedoing the project.

Analysts say Nord Stream 2 was unlikely to significantly ease sky-high gas prices which threaten hefty bills for European consumers this winter.

European benchmark Dutch wholesale gas for November were trading around 110 euros ($128) per megawatt hour (MWh) on Tuesday, up almost 500% since the start of the year.

($1 = 0.8621 euros)

Reporting by Tom Kaeckenhoff and Christoph Steitz; Additional reporting by Nina Chestney in London, Markus Wacket in Berlin and Oksana Kobzeva in Moscow; Editing by Sonya Hepinstall and Edmund Blair

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

Asian stocks fall to near 1-year lows as oil rally fuels inflation fears

Leave a comment

  • Asian stock markets decline to multi-month lows
  • Benchmark index slips for third straight session
  • Rising energy prices rattle markets

SINGAPORE, Oct 5 (Reuters) – Asian shares tracked a broad sell-off on Wall Street to weaken for a third straight session on Tuesday, as investors feared oil prices hitting multi-year highs would add to inflationary pressures caused by supply chain disruptions.

U.S. and European stock futures edged up, with S&P 500 e-minis rising 0.01%, the pan-region Euro Stoxx 50 futures gaining 0.2 and FTSE futures gaining 0.4%.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) dropped as much as 1.3%, declining for a third consecutive session. Japan stocks (.N225) were down 2.5%, South Korea (.KS11) gave up 2% and Australia (.AXJO) shed 0.4%.

“Investors are clearly worried about inflation due to supply chain disruptions and the rally in energy prices,” said Vasu Menon, executive director of investment strategy at OCBC Bank.

The drop in markets took MSCI’s main benchmark to 619.77, the lowest since November 2020 but it pared losses to be down 0.6% in late Asia trade. The index has shed more than 5% this year, with Hong Kong and Japanese markets among the big losers.

“We have seen tech stocks outperform value stocks, so if inflation remains a worry, then tech stocks tend to get hit,” Menon said.

Oil prices reached three-year peak on Monday after OPEC+ confirmed it would stick to its current output policy as demand for petroleum products rebounds, despite pressure from some countries for a bigger boost to production.

Underscoring the rise in commodity prices, the Refinitiv/CoreCommodity CRB index (.TRCCRB) rose to 233.08 on Monday, the highest in more than six years. U.S. oil was steady at $77.68 a barrel, a day after hitting its highest since 2014. Brent crude stood at $81.5 after rising to a three-year top.

“OPEC+ may inadvertently cause oil prices to surge even higher, adding to an energy crisis that primarily reflects very tight gas and coal markets,” said Commonwealth Bank of Australia’s commodities analyst Vivek Dhar.

“That potentially threatens the global economic recovery, just as global oil demand growth is picking up as economies re‑open on the back of rising vaccination rates,” Dhar said in a note.

Market focus in Asia was on whether embattled property developer China Evergrande(3333.HK) would offer any respite to investors looking for signs of asset disposals.

Shares in the the world’s largest indebted developer were halted for trading on Monday but more Chinese property developers grappled with ratings downgrades on worries about their ability to repay debt. read more

The Dow Jones Industrial Average (.DJI) fell 0.94% to 34,002.92, the S&P 500 (.SPX) lost 1.30% to 4,300.46 and the Nasdaq Composite (.IXIC) dropped 2.14% to 14,255.49 as investors dumped Big Tech stocks in the face of rising Treasury yields.

U.S. Treasury yields rose on investor caution about the need to raise the government’s debt ceiling as the United States faces the risk of a historic default in two weeks. read more

The U.S. dollar traded near a one-year high versus major peers ahead of key U.S. payrolls data due at the end of the week. The jobs data might offer clues on the timing of a tapering of Federal Reserve stimulus and the start of interest rate increases.

The dollar index , which tracks the greenback versus a basket of six currencies, edged up 0.20% to 94.02.

The euro fell 0.25% to $1.1592, while the yen rose 0.29% to $111.18

Gold prices eased to $1,757 per ounce, after rising on Monday to the highest since Sept. 23.

Reporting by Anshuman Daga; Editing by Himani Sarkar & Simon Cameron-Moore

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Ukraine demands sanctions on Russia’s Gazprom after Kyiv loses gas imports

Leave a comment

  • Russia-Hungary deal deprives Kyiv of revenue, gas
  • Kyiv wants sanctions on Gazprom
  • Kremlin says criticism is politicised
  • Says Gazprom is meeting all obligations

KYIV/MOSCOW, Oct 1 (Reuters) – Ukraine called on the United States and Germany on Friday to impose sanctions on Russia’s Gazprom (GAZP.MM), which it accused of using energy as a weapon after the energy giant implemented a transit deal with Hungary that deprives Kyiv of gas supplies.

Under the terms of a long-term supply deal with Budapest that kicked in on Friday, Gazprom will no longer ship its gas to Hungary via Ukraine, but will send it via Serbia and Austria instead.

That deprives Ukraine of transit revenues and also means it can no longer import reverse flow gas via Hungary, which it has been doing since 2015 as a way of not buying gas directly from Russia.

Ties with Moscow have been in crisis since its annexation of Crimea in 2014 and backing for a separatist uprising in eastern Ukraine.

Yuriy Vitrenko, the head of Ukraine’s Naftogaz, called on Washington and Germany to honour what he said were pledges to get tough with Moscow made in the context of the separate Nord Stream 2 gas pipeline to Germany.

“The Kremlin is doing this on purpose. It’s not even sabre rattling, it’s the obvious use of gas as a weapon,” Vitrenko said on Facebook.

“A joint statement from the United States and Germany said that if the Kremlin used gas as a weapon, there would be an appropriate response. We are now waiting for the imposition of sanctions on a 100% subsidiary of Gazprom, the operator of Nord Stream 2.”

He was referring to an agreement between Berlin and Washington on Nord Stream 2 struck in July. read more

The dispute comes at a sensitive time for Russia, which wants Germany to certify the Nord Stream 2 gas pipeline to Germany now that it has been completed. Russia faces accusations from Kremlin critics that it is trying to speed up that approval process by deliberately not doing enough to supply Europe with gas during an energy crunch that has seen spot gas prices soar.

Russia denies the allegations.

There was no immediate response from Washington or Berlin to Vitrenko’s call. The Kremlin dismissed Ukrainian criticism as unfounded and politicised.

Kremlin spokesman Dmitry Peskov said Russia was fulfilling all its obligations under existing natural gas contracts.

“There have been and will be accusations against Russia, the majority if which are politicised,” Peskov said, when asked about Ukraine’s complaints.

“The main thing in this situation is that we are consistently fulfilling our obligations.”

Gazprom did not respond to a request for comment.

An engineer checks the gas distribution system in Beregdaroc, one of several points where Russian gas crosses into the European Union February 10, 2015. REUTERS/Laszlo Balogh

‘SHOCKING RISE’ IN GAS PRICES

Russian gas supplies via the Yamal-Europe pipeline, which traverses Poland, fell on Friday by almost 77% from Thursday, data from grid operator Gascade showed, as Gazprom booked only a third of the capacity available for October. read more

The Russian company has repeatedly said it is supplying customers with gas in full compliance with existing contracts and that additional supplies could be provided once Nord Stream 2 is launched. read more

Gazprom’s natural gas exports outside the former Soviet Union rose 15.3% year on year in the first nine months of 2021 to 145.8 billion cubic metres (bcm), the Russian gas producer said on Friday.

Ukraine is hoping that the European Union, of which it is not a member, will intervene and rein in Gazprom.

“The monopolisation of gas routes by Gazprom, which we are now observing, raises the question of the fundamental principles of the functioning of the EU (European Union) gas markets – competition and transparency,” said Sergiy Makogon, the head of the Ukrainian Gas Transmission System operator.

“The strengthening of the dominant position of one player and their use of leverage for obviously political purposes against the backdrop of a shocking rise in gas prices in Europe must be stopped,” he said.

Ukraine has opposed Russia’s new gas deal with Hungary, calling it this week a “purely political, economically unreasonable decision”. It has asked the EU’s executive to assess whether it respects European energy law. read more

Kyiv is also lobbying the West to try to prevent the Nord Stream 2 pipeline, which bypasses Ukraine, from starting up.

German utility Uniper, part of the group of Western companies supporting Nord Stream 2, said on Friday it did not expect the pipeline to help ease the tight global gas market this winter as an operating licence is unlikely to come quickly. read more

UKRAINE AND HUNGARY AT ODDS

The row over the gas deal has spilled into a bilateral dispute between Kyiv and Budapest, which are already at odds over the use of the Hungarian language in Ukrainian schools.

Hungary accused Ukraine of meddling, and Prime Minister Viktor Orban on Friday dismissed Ukraine’s criticism of the gas supply agreement. read more

Orban, who faces his first competitive election next year after three landslide victories since 2010, said that without the gas deal Hungarians would have to pay much higher prices.

“We need gas. This is the reality. You (the Ukrainians) need to agree with the Russians,” Orban told public radio.

Reporting by Natalia Zinets and Andrew Osborn
Additional reporting by Vladimir Soldatkin, Dmitry Antonov and Tom Balmforth in Moscow and Krisztina Than in Budapest
Writing by Matthias Williams and Andrew Osborn
Editing by Alexander Smith and Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Facebook could face hefty fine in Russia over banned content, says regulator

Leave a comment

MOSCOW, Sept 30 (Reuters) – Russian authorities on Thursday warned social media giant Facebook (FB.O) it faces a fine of up to 10% of its annual turnover in the country unless it deletes content Moscow deems illegal.

Upping the ante in its standoff with U.S. Big Tech, state communications regulator Roskomnadzor told Reuters it was planning to send Facebook’s representatives in Russia an official notification saying it had repeatedly failed to remove banned information.

That, it said, could lead to a fine of 5% or 10% of Facebook’s annual Russian turnover unless the situation is remedied.

Facebook’s violations include failing to remove posts containing child pornography, drug abuse and extremist content, the Vedomosti daily reported separately.

Facebook had no immediate comment.

Moscow has increased pressure on foreign tech companies over the last year as part of a long-running push to assert greater sovereignty over its segment of the internet, including efforts to make companies store Russians’ personal data on its territory.

On Wednesday, Russia threatened to block YouTube, owned by Alphabet Inc. (GOOGL.O), after the video-hosting giant removed Russian state-backed broadcaster RT’s German-language channels from its site. read more

A 3D-printed Facebook logo is seen placed on a keyboard in this illustration taken March 25, 2020. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo

Read More

Earlier this year, Roskomnadzor wrote to Facebook and other social media firms demanding they remove posts containing calls for minors to participate in anti-government protests after the arrest of Kremlin critic Alexei Navalny.

Vedomosti cited experts who estimated Facebook’s annual Russian turnover at around 12 billion roubles ($165 million).

Reuters could not immediately verify that estimate.

Roskomnadzor has opened 17 different administrative cases against Facebook this year for failing to delete banned content, court documents showed, with 64 million roubles owed in fines or pending.

A turnover fine would dwarf those levied so far.

“Facebook’s administration has not paid the fines,” Vedomosti cited Roskomnadzor as saying.

(This story has been refiled to remove extraneous word in lede)

($1 = 72.5975 roubles)

Editing by Barbara Lewis, Elaine Hardcastle, Kirsten Donovan

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Belarus forces kill IT worker in shootout, opposition says

Leave a comment

Sept 28 (Reuters) – Belarusian security forces shot dead a man and arrested his wife during a raid in an apartment block in Minsk on Tuesday, the KGB security service said.

The man had opened fire against the security forces, one of whom also died, a statement said. Reuters could not independently verify the statement or footage of the incident that was aired on Belarusian state television.

A senior adviser to exiled opposition leader Sviatlana Tsikhanouskaya identified the man as an IT worker with software company EPAM Systems, which is also based in the United States.

“He was also reportedly a U.S. citizen. According to his friends, he supported democracy movement in Belarus. His wife is detained. Mother is shocked,” Franak Viačorka, Tsikhanouskaya’s adviser, wrote on Twitter.

“I have only one comment: violence must stop! The regime hopes that violence can split society and threaten opponents. But violence cannot be the solution to the crisis. Enough victims. The rule of law must return to the country.”

EPAM systems and the U.S. embassy could not immediately be reached for comment.

The official state news agency Belta reported the man was associated with the opposition movement, citing a lawmaker. The KGB did not identify the man by name or profession but said he was a “terrorist” – language it uses to describe protesters.

“In response to the lawful demands of law enforcement officers, a 31-year-old resident of Minsk refused to open the door of the apartment and was locked inside it. For the subsequent so-called ‘hype’, he was filming,” the Investigative Committee of Belarus, which investigates major crimes, said in a statement.

“Given the nature of the violence used, armed resistance from a 31-year-old man, he was liquidated with return fire.”

Forces loyal to Belarus President Alexander Lukashenko have unleashed a violent crackdown on protests following a disputed election last year, including searches of apartment blocks where they believed protesters were hiding.

In power since 1994, Lukashenko has defied opposition calls to step down and described the protesters as criminals bent on violent uprising.

Reporting by Natalia Zinets, Matthias Williams and Pavel Polityuk in Kyiv; editing by Grant McCool and Stephen Coates

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

U.S. export tightening slows advance of Chinese C919 jet -sources

Leave a comment

FILE PHOTO: The fifth prototype of China’s home-built C919 passenger plane takes off for its first test flight from Shanghai Pudong International Airport in Shanghai, China October 24, 2019. Picture taken October 24, 2019. REUTERS/Stringer/File Photo

  • Suppliers gradually receiving licence approvals -sources
  • Months-long delays could affect early production -sources
  • COMAC seeking type certificate from regulator by year end

ZHUHAI, China, Sept 27 (Reuters) – China’s C919 jetliner – a no-show at the country’s biggest air show this week – has found it harder to meet certification and production targets amid tough U.S. export rules, according to three people with knowledge of the programme.

The state-owned manufacturer, Commercial Aircraft Corp of China (COMAC), has been unable to get timely help from suppliers and has run out of some spare parts, those people said.

As of December 2020, the U.S. has required special licenses to export parts and technology assistance to any company with ties to the Chinese military. That has thrown a monkey wrench into the C919 programme, which has been in development for 13 years – one of the longest such periods in aviation.

U.S.-linked suppliers are gradually receiving the licences, but the hiccup has slowed down Chinese certification, and months-long delays threaten to affect early production, said the people, who declined to be named because of the sensitivity of the matter.

COMAC has 815 provisional orders, but only China Eastern Airlines (600115.SS) placed a firm order for five jets.

The state-backed airline said in August it expects to receive its first C919 by the end of the year, two in 2022 and two more in 2023.

A slow production rampup would mean the C919 will not pose a near-term threat to Airbus (AIR.PA) and Boeing (BA.N), which produce dozens of narrowbodies a month.

“One of the biggest hurdles is going to be the supply chain, especially now with inflation, material availability and supplier changes,” said aerospace supply chain expert Alex Krutz at U.S-based aerospace consultancy Patriot Industrial Partners.

“The suppliers may not have the liquidity to make the post-certification changes or be willing as they were a few years ago to continue supporting an initial lower-rate production programme like COMAC,” he added.

COMAC is years behind its initial certification schedule – one reason it did not take the C919 to the China Airshow. read more

“COMAC are very preoccupied with test flights. They’re behind schedule and are flying as much as they can to reach the minimum hours needed for Chinese certification,” an industry source told Reuters. “Despite all the issues, COMAC is very determined to get certified, as this is a paramount political task.”

Sources say that the C919 is likely to receive its type certificate from China’s aviation regulator by the end of this year, but that there will be a long list of limits on flight operations. Even after the certification, COMAC must make upgrades, the sources said.

COMAC and the Civil Aviation Administration of China (CAAC) did not respond to requests to comment.

CAUTIOUS REGULATOR

The sources with knowledge of the C919 programme said the jet’s progress seemed to mirror the certification pattern and slow production of its predecessor, the ARJ21 regional jet.

The ARJ21 faced a 2.5-year gap between obtaining a “type certificate”, which declares the design safe, and a “production certificate” allowing it to enter mass production.

That contrasts with the West, where those certificates are typically granted around the same time.

About 60 ARJ21 aircraft have been delivered to date, but the production ramp-up was also slow, rising from two planes a year in 2017 to 24 in 2020, according to COMAC data.

The C919 is in a phase called “batch production”, where each plane requires a sign-off by the regulator.

FOREIGN PARTS

The C919 is assembled in China but relies heavily on Western components, including engines and avionics. That has made it vulnerable to crackdowns on key technology transfers.

The addition of two key COMAC subsidiaries to a list of companies with military ties in December 2020 created bureaucratic licensing requirements.

China has been doubling down on developing its own engine for the C919; state engine maker Aero Engine Corporation of China (AECC) will display a model of the CJ-1000 engine at the air show, but the domestic solution for the airliner is years away.

AECC is spending 10 billion yuan ($1.55 billion) to build an industrial complex in the southwestern city of Chengdu to manufacture engine nacelles and thrust reversers, local media reported last month. A source with knowledge of the matter said the complex related to CJ-1000 production.

The nacelle capacity is expected to reach 100 per year, enough for 50 planes, the reports said, though no target date was stated. AECC did not respond immediately to a request for comment.

($1 = 6.4589 Chinese yuan renminbi)

Reporting by Stella Qiu and David Kirton in Zhuhai and Jamie Freed in Sydney; additional reporting by Tim Hepher in Paris; Editing by Miyoung Kim and Gerry Doyle

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Romanian hospitals fill up with COVID patients amid widespread vaccine refusal

Leave a comment

BUCHAREST, Sept 23 (Reuters) – After living through three waves of the COVID-19 pandemic without getting sick, 55-year-old Roxana Pascu thought that she was healthy enough to withstand the virus and decided to turn down the vaccine.

Now Pascu, who runs a small business, is one of around 1,040 COVID-19 patients currently in intensive care across Romania where cases have more than doubled over the last week and ICU beds are becoming dangerously scarce.

With the second-lowest vaccination rate in the European Union, Romania is bracing for a fourth wave of the pandemic that looks set to overwhelm hospitals where medical staff are already stretched thin.

“I thought that if I made it through three waves without getting infected, I can make it through another one without a vaccine,” Pascu said, her voice so weak that she could barely speak.

Whereas the European Union has fully vaccinated 72% of its adult population on the whole, Romania has only managed 34%, exposing entrenched distrust in state institutions, misinformation campaigns, poor rural infrastructure and weak vaccine education.

The government, which eased restrictions despite low vaccine intake, has missed a goal to vaccinate 10 million people by September, with little over 5 million inoculated. About 40% of medical and school staff were not vaccinated and officials have so far stopped short of making it mandatory.

On Wednesday, Romania had only 32 intensive care beds available, and was struggling to add more because of staff shortages. Daily infection rates are nearing a record high of over 10,000 and public health officials this month estimated that Romania could see 15,000-20,000 new daily cases in October. read more

In capital Bucharest, Beatrice Mahler, the manager of the Marius Nasta Pneumology Institute was trying to staff a mobile intensive care unit.

A general view of the mobile intensive care unit (ICU) being prepared to receive coronavirus disease (COVID-19) patients at Marius Nasta Institute of Pneumology in Bucharest, Romania, September 22, 2021. Inquam Photos/Octav Ganea via REUTERS

Read More

“At the moment I have great, great problems in opening these beds, because we can’t work without staff.”

The institute’s morgue is also at capacity and is looking to rent mortuary freezers, she said.

“I am scared because I don’t know how much we can help if there aren’t enough of us,” said Anita Timofte, the institute’s chief ICU nurse. “I … suspect there will not be enough room for how many people will be unlucky to get sick.”

Restrictions including weekend curfews are being reintroduced in cities and villages with high case numbers. Schools are increasingly moving online.

Along with efforts to find more staff and provide more beds, officials plan to send mobile vaccination units to schools and introduced a lottery with vouchers and cash prizes to boost inoculations.

“What is essential is being able to give specialized medical attention to those who need it. The human resource is what limits us,” deputy health minister Andrei Baciu said.

As for Pascu, she plans to get vaccinated after she recovers. So does Raul Adin, a 20-year-old patient gasping for breath through a respirator.

“I 100% plan to get vaccinated,” he said.

Reporting by Luiza Ilie and Octv Ganea; Editing by Raissa Kasolowsky

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

UK vows to manage fallout from soaring gas prices

Leave a comment

  • Business minister says he will protect customers
  • Minister to continue to meet industry representatives
  • Lack of CO2 threatens meat supply
  • Small energy providers seen at risk

LONDON, Sept 18 (Reuters) – Britain said on Saturday it would work with the energy industry to try to stem the fallout from soaring gas prices after fears grew that more energy providers and food producers would struggle to operate with such high costs.

Business minister Kwasi Kwarteng said he had been reassured that the security of gas supply was not a cause for immediate concern but he would work with providers to “manage the wider implications of the global gas price increase”.

Kwarteng held emergency talks with executives from National Grid (NG.L), Centrica (CNA.L), EDF (EDF.PA) and the regulator Ofgem on Saturday and is due to hold further discussions with industry figures on Sunday and Monday.

A jump in gas prices has already forced several domestic energy suppliers out of business and has shut fertiliser plants that also produce carbon dioxide, used to stun animals before slaughter and prolong the shelf-life of food. read more

Consumer groups and opposition politicians have warned that some customers and businesses will struggle to pay higher bills. The BBC reported that at least four small British energy companies were expected to go bust next week.

The Business department said the pressures facing companies was discussed during the meeting. Kwarteng said no customer would go without gas or electricity because an alternative supplier would be found if one went bust.

“Protecting customers during a time of heightened global gas prices is an absolute priority,” he said on Twitter.

RENEWABLES

The government has been moved to act after low gas storage levels, decreased supplies from Russia, demand from Asia, low renewables output and nuclear maintenance outages combined to more than triple European gas prices this year, hitting record highs. read more

The impact was immediately felt in the UK food sector where the shortage of CO2, also used in beer, cider and soft drinks, compounded an acute shortage of truck drivers, which has been blamed on the impact of COVID-19 and Brexit.

Nick Allen of the British Meat Processors Association said on Saturday the pig sector was two weeks away from hitting the buffers, while the British Poultry Council said its members were on a “knife-edge” as suppliers could only guarantee deliveries up to 24-hours in advance.

“Doing nothing is not an option,” Allen told Reuters, adding that given the exceptional circumstances, the government needed to either subsidise the power supply to maintain fertiliser production or source CO2 from elsewhere.

Richard Walker, managing director of Iceland Foods, said a CO2 shortage would hit meat products, atmospheric packaged products such as cheese and salads, and long life bakery items.

“We need to sort it, quickly,” he said.

Dermot Nolan, former head of Ofgem, told the BBC he expected prices to stay high for up to four months and it was not clear what the government could do to affect market rates – meaning they will remain a focal point in the run-up to the COP26 climate conference in Scotland in November, where governments will seek to agree new rules to suppress emissions.

Reporting by Kate Holton; Editing by Edmund Blair, David Holmes and Gareth Jones

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

Oil hits 6-week high as U.S. Gulf braces for storm Nicholas

Leave a comment

An oil storage tank and crude oil pipeline equipment is seen during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson

  • U.S. energy firms brace for another storm amid slow recovery from Ida
  • Over 40% of U.S. Gulf’s oil, gas output still shut following Ida
  • IEA sees oil demand rebounding by 1.6 million bpd in October

LONDON, Sept 14 (Reuters) – Oil prices hit a six-week high on Tuesday asHurricane Nicholas weakened into a tropical storm, bringing the threat of widespread floods and power outages to Texas and Louisiana, and as the International Energy Agency forecast a big demand rebound for the rest of the year.

Brent crude was up 44 cents, or 0.6%, at $73.95 a barrel by 1114 GMT. U.S. West Texas Intermediate (WTI) crude climbed 41 cents, or 0.6%, to $70.86 a barrel.

Both contracts have risen for three consecutive sessions and were trading near their highest since early August.

Nicholas is the second major storm to threaten the U.S. Gulf region in recent weeks. Hurricane Ida killed more than two dozen people in August.

Evacuations were underway on Monday from offshore oil platforms in the area, as onshore oil refiners began preparing for Nicholas. read more

“The substantial production outages in the Gulf of Mexico remain one of the factors driving prices,” Commerzbank said.

About 794,000 barrels per day (bpd), or more than 40% of the U.S. Gulf’s oil and gas output remained offline on Monday, two weeks after Ida slammed into the Louisiana coast, according to offshore regulator Bureau of Safety and Environmental Enforcement (BSEE). read more

After three months of decline in global oil demand, COVID-19 vaccine roll-outs are set to rekindle appetite for oil that was suppressed by pandemic restrictions especially in Asia, the International Energy Agency (IEA) said on Tuesday.

The IEA sees a 1.6 million bpd demand rebound in October, and continuing to grow until the end of the year.

Overall, the agency lowered its 2021 global oil demand growth forecast by 105,000 bpd to 5.2 million bpd, but raised its 2022 figure by 85,000 bpd to 3.2 million bpd.

These forecasts are well below those of the Organization of the Petroleum Exporting Countries which sees demand growing by about 5.96 million bpd this year and 4.15 million bpd next year. read more

Reuters Graphics

Protesters blocked an oil tanker from loading at the Libyan terminal of Es Sider on Tuesday, the National Oil Corporation (NOC) media office and an engineer at the port said.

The U.S. government agreed to sell crude oil from the nation’s emergency reserve to eight companies including Exxon Mobil (XOM.N) and Chevron (CVX.N), under a scheduled auction to raise money for the federal budget. read more

Traders noted China’s planned release of oil from strategic petroleum reserves (SPRs) could boost supplies available in the world’s second biggest oil consumer. read more

Additional reporting by Yuka Obayashi in Tokyo; editing by Muralikumar Anantharaman and Jason Neely

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Argentine opposition deals blow to ruling Peronists in midterm vote

Leave a comment

BUENOS AIRES, Sept 12 (Reuters) – Argentina’s main opposition party landed a blow against the ruling Peronists on Sunday, winning key races in a congressional primary vote that is a strong leading indicator of how voters will cast ballots in the midterm election in November.

The conservative opposition led by around 5 percentage points in the key province of Buenos Aires, with some 84% of votes tallied in the populous region that has been a bastion of support from the center-left government of Alberto Fernandez.

Other results in the mandatory vote showed the ruling party falling back, which if repeated in the Nov. 14 election could see the government lose its majority in the Senate and risk its largest minority position in the lower Chamber of Deputies.

“The ruling party lost 1.2 million votes compared to the 2019 (presidential election); this brings them to a level that, if repeated in November, leaves Alberto Fernandez very weakened,” said Mariel Fornoni, director of consultancy Management & Fit.

With most candidates already set, the open primary vote acts as a nationwide dress rehearsal ahead of the Nov. 14 midterm ballot, where 127 seats in the Chamber of Deputies are up for grabs out of a total of 257, as well as 24 seats out of 72 in the Senate.

Many voters feel let down by the main political parties. A lengthy recession, rampant inflation and a poverty rate that has risen to 42% have hurt public support for the government, despite recent signs of an economic recovery and falling coronavirus cases.

“There is great discontent among people,” Patricia Coscarello, a 52-year-old administrative worker outside Buenos Aires, said after she voted. “Apart from the pandemic, the economic situation is complex and salaries are shrinking.”

VACCINE ROLLOUT

Fernandez can point to a vaccine rollout that has now reached more than 46 million inoculations for a population of a similar size, falling daily COVID-19 cases and the economy’s emergence from recession earlier this year after a plunge in 2020.

“Obviously some things we haven’t done well because the people haven’t accompanied us as we would have hoped,” President Fernandez said after the results alongside his party leadership, adding the party would learn from its mistakes and get stronger.

“The campaign has just started and in November we have to win it because we have a commitment to Argentina.”

Griselda Picone, 60, a housewife in the capital, said she voted for the ruling party despite some concerns.

“While there are many things to improve, the alternative that governed before (Together for Change) made everything worse,” she said. “It seems to me that the handling of the economy during the pandemic has actually been good.”

The country’s skittish financial markets, which collapsed after a presidential primary in 2019 showed Fernandez winning that year’s election by a landslide, could rise if Sunday’s vote goes against the ruling party. read more

The logic is that a stronger opposition would temper the Peronists’ more militant wings. They have at times clashed with investors, the powerful farm sector and the International Monetary Fund, which is negotiating a debt deal with the government.

Ana Pertusati, a 36-year-old lawyer, and others were pessimistic about prospects for improvement.

“When you ask around, most people don’t even know the main candidates,” she said while waiting in line to vote. “It seems that whoever wins, it could be of little use to making real positive changes for the people.”

Reporting by Nicolas Misculin and Jorge Otaola; Additional reporting by Agustin Geist, Eliana Raszewski, Lucila Sigal; Editing by Adam Jourdan, Peter Cooney and Richard Pullin

Our Standards: The Thomson Reuters Trust Principles.

Read original article here