Tag Archives: MEAST

Business

Airbus and Qatar Airways settle bitter A350 jet row

Leave a comment

PARIS, Feb 1 (Reuters) – Airbus (AIR.PA) and Qatar Airways have settled a dispute over grounded A350 jets, the companies said on Wednesday, averting a potentially damaging UK court trial after a blistering 18-month feud that tore the lid off the global jet market.

The “amicable and mutually agreeable settlement” ends a $2 billion row over surface damage on the long-haul jets. The spat led to the withdrawal of billions of dollars’ worth of jet deals by Airbus and prompted Qatar to increase purchases from Boeing.

The cancelled orders for 23 undelivered A350s and 50 smaller A321neos have been restored under the new deal, which is also expected to see Airbus pay several hundred million dollars to the Gulf carrier, while winning a reprieve from other claims.

Financial details were not publicly disclosed.

The companies said neither admitted liability. Both pledged to drop claims and “move forward and work together as partners”.

Latest Updates

View 2 more stories

The deal heads off what amounted to an unprecedented public divorce trial between heavyweights in the normally tight-knit and secretive $150 billion jet industry.

The two sides had piled up combined claims and counter-claims worth about $2 billion ahead of the June trial.

French Finance Minister Bruno Le Maire welcomed the deal, which came in the wake of increasing political involvement amid close ties between France, where Airbus is based, and Qatar.

“It is the culmination of significant joint efforts. It is excellent news for the French aerospace industry,” he said.

Airbus shares closed up 1% before the announcement.

Qatar Airways had taken the unusual step of publicly challenging the world’s largest planemaker over safety after paint cracks exposed gaps in a sub-layer of lightning protection on its new-generation A350 carbon-composite jets.

Airbus had acknowledged quality flaws but, backed by European regulators, had insisted that the jets were safe and accused the airline of exaggerating flaws to win compensation.

DAMAGES

Supported by a growing army of lawyers, both sides repeatedly bickered in preliminary hearings over access to documents, to the growing frustration of a judge forced to order co-operation.

Analysts said the deal would allow both sides to feel vindicated, with Qatar Airways winning damages and recognition that the problem lay outside the manual and therefore required a new repair, and Airbus standing its ground on safety and spared the difficult task of finding a home for cancelled A350s.

Qatar will get the in-demand A321neos needed to plan its growth, albeit three years later than expected, in 2026. Airbus’ decision to revoke that order, separate from the disputed A350 contract, had been criticised by global airlines group IATA.

Airbus said it had done its best to avoid pushing Qatar too far back in the queue, though some experts question whether it could have met the earlier schedule because of supply problems.

The settlement is also expected to stop the clock ticking on a claim for grounding compensation that had been growing by $6 million a day, triggered by a clause agreed upon after the repainting of a jet for the World Cup revealed significant surface damage.

Originally valued at $200,000 per day per plane, Airbus’ theoretical liability was ratcheting upwards by a total of $250,000 an hour for 30 jets – or $2 billion a year – by the time the deal was struck, based on court filings. Neither side commented on settlement details.

Airbus said it would now work with the airline and regulators to provide the necessary “repair solution” and return Qatar’s 30 grounded planes to the air.

Confirmation of a settlement came after Reuters reported a deal could arrive as early as Wednesday. In 2021, a Reuters investigation revealed other airlines had been affected by A350 skin degradation, all of whom said it was “cosmetic”.

The dispute has focused attention on the design of modern carbon-fibre jets, which do not interact as smoothly with paint as traditional metal ones, and shed light on industrial methods.

Additional reporting by Leigh Thomas, Michel Rose
Editing by David Goodman, Diane Craft and Gerry Doyle

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

Adani’s $2.5 bln share offer backed by investors, despite short-seller attack

Leave a comment

MUMBAI, Jan 31 (Reuters) – Indian billionaire Gautam Adani’s $2.5 billion share sale inched closer to full subscription on Tuesday as investors pumped in funds after a tumultuous week for his group in which its stocks were pummeled by a scathing short-seller report.

The secondary share sale of flagship Adani Enterprises (ADEL.NS) was subscribed 93% on Tuesday, including the anchor investor portion, Indian stock exchange data showed. The share sale needed at least 90% subscription to go through.

By Monday, the book building process of the country’s largest share sale had received only 3% in bids, amid swirling concerns that the share sale could struggle due to a market rout in Adani’s stocks in recent days.

The share sale is critical for Adani, not just because it is India’s largest follow-on offering and will help cut debt, but also because its success will be seen as a stamp of confidence by investors at a time the tycoon faces one of his biggest business and reputational challenges of recent times.

The offer closes days after Adani’s public faceoff with Hindenburg Research, which on Jan. 24 flagged concerns about the use of tax havens and “substantial debt” at the group. It added that shares in seven Adani listed companies have an 85% downside due to what it called “sky-high valuations”.

That has since sparked $65 billion in cumulative losses for stocks of the Adani group, which called the report baseless.

The support for Adani’s share sale came even as the flagship’s shares were trading at 2,967 rupees, up nearly 2.5% but below the lower end of the share sale price band of 3,112 rupees.

“It looks down to the wire with just a few hours remaining on the last day, but the offering should go through. Institutions seem to be subscribing to capitalise on opportunity to buy in bulk quantities outside the open market,” said Dipan Mehta, founder director of Elixir Equities.

Adani Group’s total gross debt in the financial year ended March 31, 2022, rose 40% to 2.2 trillion rupees ($26.83 billion). Adani said on Sunday – while responding to Hindenburg’s allegations – that over the past decade the group has “consistently de-levered”. Hindenburg later said Adani’s “response largely confirmed our findings and ignored our key questions.”

Reuters Graphics

The group had in recent days repeatedly said investors were standing by its side and the share offering would go through, amid rising concerns that may not happen. Bankers at one point had considered tweaking the pricing of the issue, or extending the sale, Reuters had reported.

Adani even said the Hindenburg report was a “calculated attack” on the country and its institutions while its CFO compared the market rout of its stocks to a colonial-era massacre.

Demand from retail investors remained muted, garnering bids only worth around 10% of the shares on offer for that segment. On Tuesday, demand mostly came from foreign institutional investors, as well as corporates who bid in excess of 1 million rupees each, data showed.

Over the weekend and through Monday, Adani’s firm held extensive discussions with investment bankers and institutional investors to attract subscriptions, according to two sources with direct knowledge of the talks.

Abu Dhabi conglomerate International Holding Company (IHC.AD) said it will invest $400 million in the issue.

“The follow-on public offering has to go through to restore investor confidence,” said V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The Hindenburg report and its fallout have drawn global attention. Adani is now the world’s eighth richest person, down from third ranking on Forbes’ rich list last week.

Adani Transmission (ADAI.NS) rose 1.6% on Tuesday, after losing 38% since the Hindenburg report, while Adani Ports and Special Economic Zone (APSE.NS) climbed 3.2%.

Adani Total Gas (ADAG.NS) languished at its 10% lower price limit, while Adani Power (ADAN.NS) and Adani Wilmar (ADAW.NS) were down 5% each.

Reuters Graphics

Global index publisher FTSE Russell said on Tuesday it continues to monitor publicly available information on the group, in particular from the Indian regulatory authorities.

Hindenburg said in its report it had shorted U.S.-bonds and non-India traded derivatives of the Adani Group. On Tuesday, U.S. dollar-denominated bonds issued by Adani Ports and Special Economic Zone continued their fall into a second week.

($1 = 82.0025 Indian rupees)

Reporting by M. Sriram and Chris Thomas; Editing by Aditya Kalra and Muralikumar Anantharaman

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

Oil falls ahead of OPEC+, U.S. Federal Reserve meetings

Leave a comment

SINGAPORE, Jan 30 (Reuters) – Oil prices fell on Monday, giving up earlier gains, as global producers this week will likely keep output unchanged during a meeting this week and investors are cautious ahead of a U.S. Federal Reserve meeting that may spur market volatility.

Brent crude futures fell 20 cents, or 0.2%, to $86.46 a barrel by 0435 GMT while U.S. West Texas Intermediate crude was at $79.57 a barrel, down 11 cents, or 0.1%.

Ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known collectively as OPEC+, are unlikely to tweak their current oil output policy when they meet virtually on Feb. 1.

Still, an indication of a rise in crude exports from Russia’s Baltic ports in early February caused Brent and WTI to post their first weekly loss in three last week.

“No change to the OPEC+ output is expected to be announced at this week’s meeting and we expect outlook commentary from the U.S. Fed to be the key driver of the outlook in the near term,” said National Australia Bank analysts in a research note.

Ahead of the Federal Reserve’s policy meeting scheduled on Jan. 31-Feb. 1, the market broadly expects the U.S. central bank to scale back rate hikes to 25 basis points (bps) from 50 bps announced in December, which may ease concerns of an economic slowdown that would curb fuel demand in the world’s biggest oil consumer.

Oil prices earlier gained amid tensions in the Middle East following a drone attack in oil producer Iran and as China, the world’s biggest crude importer, pledged over the weekend to promote a consumption recovery which would support fuel demand.

“It is not really clear yet what’s happening in Iran, but any escalation there has the potential to disrupt crude flow,” said Stefano Grasso, a senior portfolio manager at 8VantEdge in Singapore.

“We have Russia on the supply side and China on the demand side. Both can swing by more than 1 million barrels per day above or below expectation,” said Grasso, formerly an oil trader with Italy’s Eni.

“China seems to have surprised the market in terms of how fast they are coming out of zero COVID while Russia has surprised in terms of resilience of export volume despite the sanctions.”

China resumes business this week after its Lunar New Year holidays. The number of passengers travelling prior to the holidays rose above levels in the past two years but is still below 2019, Citi analysts said in a note, citing data from the Ministry of Transport.

“Overall international traffic recovery remains gradual, with high-single to low-teens digits to 2019 level, and we expect further recovery when outbound tour group travel resumes on Feb. 6,” the Citi note said.

Reporting by Florence Tan and Emily Chow; Editing by Muralikumar Anantharaman and Christian Schmollinger

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Iran thwarts drone attack on military site – state media

Leave a comment

DUBAI, Jan 29 (Reuters) – A loud explosion at a military plant in Iran’s central city of Isfahan was caused by an “unsuccessful” drone attack, Iranian state media reported on Sunday, citing the defence ministry.

“One of (the drones) was hit by the … air defence and the other two were caught in defence traps and blew up. Fortunately, this unsuccessful attack did not cause any loss of life and caused minor damage to the workshop’s roof,” the ministry said in a statement carried by the state news agency IRNA.

Iranian news agencies earlier reported the loud blast and carried a video showing a flash of light at the plant, said to be an ammunitions factory, and footage of emergency vehicles and fire trucks outside the plant.

In July, Iran said it had arrested a sabotage team made up of Kurdish militants working for Israel who planned to blow up a “sensitive” defence industry centre in Isfahan.

The announcement came amid heightening tensions with arch-enemy Israel over Tehran’s nuclear programme. Israel says Iran is seeking to develop nuclear weapons. Tehran denies this.

“(The attack) has not affected our installations and mission…and such blind measures will not have an impact on the continuation of the country’s progress,” the defence ministry statement said.

There have been a number of explosions and fires around Iranian military, nuclear and industrial facilities in the past few years.

In 2021, Iran accused Israel of sabotaging its key Natanz nuclear site and vowed revenge for an attack that appeared to be the latest episode in a long-running covert war.

The blasts at sensitive Iranian sites have at times caused concern amid tensions over Iran’s nuclear programme with Israel and the United States.

Israel has long threatened military action against Iran if indirect talks between Washington and Tehran fail to salvage a 2015 nuclear pact.

Reporting by Dubai newsroom; Editing by Daniel Wallis, Cynthia Osterman and Josie Kao

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Exclusive: Top U.S. Treasury official to warn UAE, Turkey over sanctions evasion

Leave a comment

WASHINGTON, Jan 28 (Reuters) – The U.S. Treasury Department’s top sanctions official on a trip to Turkey and the Middle East next week will warn countries and businesses that they could lose U.S. market access if they do business with entities subject to U.S. curbs as Washington cracks down on Russian attempts to evade sanctions imposed over its war in Ukraine.

Brian Nelson, undersecretary for terrorism and financial intelligence, will travel to Oman, the United Arab Emirates and Turkey from Jan. 29 to Feb. 3 and meet with government officials as well as businesses and financial institutions to reiterate that Washington will continue to aggressively enforce its sanctions, a Treasury spokesperson told Reuters.

“Individuals and institutions operating in permissive jurisdictions risk potentially losing access to U.S. markets on account of doing business with sanctioned entities or not conducting appropriate due diligence,” the spokesperson said.

While in the region, Nelson will discuss Treasury’s efforts to crack down on Russian efforts to evade sanctions and export controls imposed over its brutal war against Ukraine, Iran’s destabilizing activity in the region, illicit finance risks undermining economic growth, and foreign investment.

The trip marks the latest visit to Turkey by a senior Treasury official to discuss sanctions, following a string of warnings last year by Treasury and Commerce Department officials, as Washington ramped up pressure on Ankara to ensure enforcement of U.S. curbs on Russia.

STRAINED RELATIONS

Nelson’s trip coincides with a period of strained ties between the United States and Turkey as the two NATO allies disagree over a host of issues.

Most recently, Turkey’s refusal to green-light the NATO bids of Sweden and Finland has troubled Washington, while Ankara is frustrated that its request to buy F-16 fighter jets is increasingly linked to whether the two Nordic countries can join the alliance.

Nelson will visit Ankara, the Turkish capital, and financial hub Istanbul on Feb. 2-3. He will warn businesses and banks that they should avoid transactions related to potential dual-use technology transfers, which could ultimately be used by Russia’s military, the spokesperson said.

Dual-use items can have both commercial and military applications.

Washington and its allies have imposed several rounds of sanctions targeting Moscow since the invasion, which has killed and wounded thousands and reduced Ukrainian cities to rubble.

Turkey has condemned Russia’s invasion and sent armed drones to Ukraine. At the same time, it opposes Western sanctions on Russia and has close ties with both Moscow and Kyiv, its Black Sea neighbors.

It has also ramped up trade and tourism with Russia. Some Turkish firms have purchased or sought to buy Russian assets from Western partners pulling back due to the sanctions, while others maintain large assets in the country.

But Ankara has pledged that international sanctions will not be circumvented in Turkey.

Washington is also concerned about evasion of U.S. sanctions on Iran.

The United States last month imposed sanctions on prominent Turkish businessman Sitki Ayan and his network of firms, accusing him of acting as a facilitator for oil sales and money laundering on behalf of Iran’s Revolutionary Guard Corps.

While in the United Arab Emirates, Nelson will note the “poor sanctions compliance” in the country, the spokesperson said.

Washington has imposed a series of sanctions on United Arab Emirates-based companies over Iran-related sanctions evasion and on Thursday designated a UAE-based aviation firm over support to Russian mercenary company the Wagner Group, which is fighting in Ukraine.

(This story has been corrected to change headline to UAE, Turkey, not Middle East; adds Turkey in paragraph 1)

Reporting by Daphne Psaledakis and Humeyra Pamuk
Editing by Don Durfee and Leslie Adler

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

EV maker Lucid surges on report Saudi PIF to buy remaining stake

Leave a comment

Jan 27 (Reuters) – Lucid Group’s (LCID.O) shares surged 43% on Friday, paring gains after doubling on market speculation that Saudi Arabia’s Public Investment Fund (PIF) wanted to buy out the electric vehicle maker.

The speculation originated from an “uncooked” alert attributed to deals website Betaville, using its term for market gossip. Lucid was the sixth-most traded stock on U.S. exchanges and third top mover on the Nasdaq mid-afternoon.

The PIF, the sovereign wealth fund that owns more than 65% of Newark, California-based Lucid, did not immediately respond to a request for comment. Lucid declined to comment.

In 2018, PIF was interested in taking Tesla private, but the deal did not materialize. Tesla chief Elon Musk is under trial for allegedly misleading investors with his tweet “funding secured” for taking the company private.

Lucid has been struggling to deliver its sleek Air luxury EVs after delivering 4,369 vehicles last year.

With Tesla’s price cuts, money-losing U.S. startups like Rivian Automotive Inc (RIVN.O) and Lucid will find it difficult to grab share in an industry competing for shrinking consumer wallets.

Lucid’s short interest as a percentage of its total float is around 37% versus only 3.5% for Tesla. Still, in dollar amounts, Lucid’s short interest totals $1.6 billion, versus $15.01 billion of Musk’s car maker.

Short sellers dealt a mark-to-market loss of $685 million with Lucid’s shares spike on Friday, analytics firm S3 Partners added. Losses, however, only materialize if short sellers close out their positions.

“With Lucid short sellers’ mark-to-market losses climbing, we should expect short covering to begin in earnest after today’s short-side blood bath,” said Ihor Dusaniwsky, managing director of S3, adding it has become a popular trading position.

One long-short fund manager who had no previous exposure to Lucid said it decided to short it as this person believes the spike was solely based on rumors.

Reporting by Carolina Mandl, in New York, Chavi Mehta in Bengaluru and Hyun Joo Jin; Editing by Maju Samuel and Josie Kao

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Israel hits Gaza as conflict flares after West Bank clashes

Leave a comment

  • Rockets from Gaza set off alarm in Israeli communities
  • Cross-border fire followed Israeli raid in West Bank
  • Israeli raid killed at least nine Palestinians
  • Violence has surged in West Bank in past year

JERUSALEM/GAZA, Jan 27 (Reuters) – Israeli jets struck Gaza overnight on Friday in retaliation for two rockets fired by Palestinian militants, further escalating tensions after one of the worst days of violence in the occupied West Bank in years.

The rockets fired from Gaza overnight set off alarms in Israeli communities near the border with the southern coastal strip controlled by the Islamist movement Hamas but there were no reports of casualties.

The cross-border fire came after an Israeli raid on a refugee camp in the West Bank on Thursday that killed at least nine Palestinians, including militant gunmen and at least two civilians, the highest single-day death toll in years.

Another man died in a separate incident in al-Ramm outside Jerusalem, bringing the Palestinian death toll so far in 2023 to at least 30.

The raid, the latest in a near-daily series of clashes in the West Bank over the past year, came days before U.S. Secretary of State Antony Blinken was due to visit Israel and the West Bank.

Palestinian officials said CIA director William Burns, who was visiting Israel and the West Bank on a trip arranged before the latest violence, would meet Palestinian President Mahmoud Abbas on Saturday. No comment was immediately available from U.S. officials in Jerusalem.

The months of violence, which surged after a spate of lethal attacks in Israel last year, have drawn fears the already unpredictable conflict could spiral out of control, triggering a broader confrontation between Palestinians and Israel.

[1/2] Smoke and flames rise during Israeli airstrikes in Gaza City, January 27, 2023. REUTERS/Arafat Barbakh

The U.S. State Department issued a statement on Thursday saying it was “deeply concerned” with the violence in the West Bank and urged both sides to de-escalate the conflict.

The United Nations, Egypt and Qatar have also urged calm, Palestinian officials said.

In Gaza, large rallies were planned for the afternoon following Friday prayers as residents inured to years of exchanges of rockets and airstrikes between Israel and Hamas feared further clashes.

“We didn’t sleep the whole night, bombing and missiles,” said 50 year-old Abdallah Al-Husary. “There is worry and there is fear, any minute a war can happen. With any clash in the West Bank, there can be war along the borders in Gaza.”

In the aftermath of Thursday’s raid, the Palestinian Authority, which has limited governing powers in the West Bank, said it was suspending a security cooperation arrangement with Israel that is widely credited with helping to keep order in the territory and preventing attacks against Israel.

Prime Minister Benjamin Netanyahu, who returned to power this year at the head of one of the most right-wing governments in Israel’s history, said Israel was not looking to escalate the situation, although he ordered security forces to be on alert.

The Israeli Defence Force said Friday’s air strikes in Gaza targeted an underground rocket manufacturing site and a military base used by Hamas.

Additional reporting by Ari Rabinovitch, Dan Williams and Ali Sawafta in Ramallah; Editing by Gerry Doyle and Edmund Blair

Our Standards: The Thomson Reuters Trust Principles.

Nidal Al-Mughrabi

Thomson Reuters

A senior correspondent with nearly 25 years’ experience covering the Palestinian-Israeli conflict including several wars and the signing of the first historic peace accord between the two sides.

Read original article here

World

EU wants to send more migrants away as irregular arrivals grow

Leave a comment

  • EU border agency says 2022 irregular arrivals highest since 2016
  • Ministers discuss stepping up returns to states including Iraq
  • Hardline migration ideas return to fore
  • Top EU migration official says no money for ‘walls and fences’

STOCKHOLM, Jan 26 (Reuters) – European Union ministers on Thursday sought ways to curb irregular immigration and send more people away as arrivals rose from pandemic lows, reviving controversial ideas for border fences and asylum centres outside of Europe.

EU border agency Frontex reported some 330,000 unauthorised arrivals last year, the highest since 2016, with a sharp increase on the Western Balkans route.

“We have a huge increase of irregular arrivals of migrants,” Home Affairs Commissioner Ylva Johansson told talks among the 27 EU migration ministers. “We have a very low return rate and I can see we can make significant progress here.”

Denmark, the Netherlands and Latvia were among those to call for more pressure through visas and development aid towards the roughly 20 countries – including Iraq and Senegal – that the EU deems fail to cooperate on taking back their nationals who have no right to stay in Europe.

Only about a fifth of such people are sent back, with insufficient resources and coordination on the EU side being another hurdle, according to the bloc’s executive.

The ministerial talks come ahead of a Feb. 9-10 summit of EU leaders who will also seek more returns, according to their draft joint decision seen by Reuters.

“The overall economic malaise makes countries like Tunisia change from a transit country to a country where locals also want to go,” said an EU official. “That changes things. But it’s still very manageable, especially if the EU acts together.”

‘WALLS AND FENCES’

That, however, is easier said than done in the bloc, where immigration is a highly sensitive political issue and member countries are bitterly divided over how to share the task of caring for those who arrive in Europe.

The issue has become toxic since more than a million people crossed the Mediterranean in 2015 in chaotic and deadly scenes that caught the bloc off guard and fanned anti-immigration sentiment.

The EU has since tightened its external borders and asylum laws. With people on the move again following the COVID pandemic, the debate is returning to the fore, as are some proposals previously dismissed as inadmissible.

Denmark has held talks with Rwanda on handling asylum applicants in East Africa, while others called for EU funds for a border fence between Bulgaria and Turkey – both ideas so far seen as taboo.

“We are still working to make that happen, preferably with other European countries but, as a last resort, we’ll do it only in cooperation between Denmark and, for example Rwanda,” Immigration Minister Kaare Dybvad said on Thursday.

Dutch minister Eric van der Burg said he was open to EU financing for border barriers.

“EU member states continue making access to international protection as difficult as possible,” the Danish Refugee Council, an NGO, said in a report on Thursday about what it said were systemic pushbacks of people at the bloc’s external borders, a violation of their right to claim asylum.

While EU countries protest against irregular immigration, often comprising Muslims from the Middle East and North Africa, Germany is simultaneously seeking to open its job market to much-needed workers from outside the bloc.

“We want to conclude migration agreements with countries, particularly with North African countries, that would allow a legal route to Germany but would also include functioning returns,” Interior Minister Nancy Faeser said in Stockholm.

Additional reporting by Philip Blenkinsop and Bart Meiejer, Writing by Gabriela Baczynska, Editing by Bernadette Baum

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

Oil settles mixed after hitting 7-week high on strong China outlook

Leave a comment

  • Brent, U.S. crude hit highest since early December
  • G7 seeks two price caps for Russian oil products
  • India’s crude imports hit 5-month high in December

NEW YORK, Jan 23 (Reuters) – Oil prices settled mixed on Monday, retreating as investors cashed in on a jump to a seven-week high on optimism about a possible recovery in demand of top oil importer China as the economy recovers this year from pandemic lockdowns.

Brent crude settled 56 cents higher at $88.19 a barrel. The session high was $89.09 a barrel, the highest since Dec. 1. U.S. West Texas Intermediate (WTI) crude settled 2 cents lower at $81.62 a barrel, off the session high $82.64 a barrel, the highest since Dec. 5.

Prices pulled back at the end of the session as investors took profits, said Phil Flynn, analyst at Price Futures Group.

Still, the market wants to preserve long positions in case Chinese growth resumes, said Sukrit Vijayakar, director of Mumbai-based energy consultancy Trifecta.

Data shows a solid pick-up in travel in China after COVID-19 curbs were eased, ANZ commodity analysts said in a note, pointing out that road traffic congestion in the country’s 15 key cities so far this month is up 22% from a year ago.

Crude oil prices in much of the world’s physical markets have started the year with a rally as China has shown signs of more buying and traders have worried that sanctions on Russia could tighten supply.

“While the (China) reopening itself will no doubt prove to be complicated, particularly over the holiday season, early indications suggest there has been a rise in activity, meaning the economy could perform better,” said OANDA analyst Craig Erlam.

Brent is expected to move back into a range between $90 and $100 as the oil market tightens, Erlam said.

Demand for products has lifted the oil market and refining margins, Flynn said. The 3-2-1 crack spread , a proxy for refining margins, rose to $42.18 per barrel on Monday, the highest since October.

The European Union and Group of Seven (G7) coalition will cap prices of Russian refined products from Feb. 5, in addition to the price cap on Russian crude in place since December and an EU embargo on imports of Russian crude by sea.

The G7 has agreed to delay a review of the level of the price cap on Russian oil to March, a month later than originally planned, to provide time to assess the impact of the oil products price cap.

In India, crude oil imports rose to a five-month high in December, government data showed on Monday, as refiners stocked up discounted Russian fuel amid a steady increase in consumption in the country.

Reporting by Stephanie Kelly in New York; additional reporting by Ron Bousso in London, Mohi Narayan in New Delhi and Sonali Paul in Melbourne
Editing by David Goodman, David Gregorio and Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

Stephanie Kelly

Thomson Reuters

A New-York-based correspondent covering the U.S. crude market and member of the energy team since 2018 covering the oil and fuel markets as well as federal policy around renewable fuels.

Read original article here

World

Erdogan to Sweden: Don’t expect Turkish support for NATO bid after Stockholm protest

Leave a comment

ANKARA, Jan 23 (Reuters) – Sweden should not expect Turkey’s support for its NATO membership after a protest near the Turkish embassy in Stockholm at the weekend including the burning of a copy of the Koran, President Tayyip Erdogan said on Monday.

Protests in Stockholm on Saturday against Turkey and against Sweden’s bid to join the North Atlantic Treaty Organization (NATO) have heightened tensions with Turkey, whose backing Sweden needs to gain entry to the military alliance.

“Those who allow such blasphemy in front of our embassy can no longer expect our support for their NATO membership,” Erdogan said in a speech after a Cabinet meeting.

“If you love members of terrorist organisations and enemies of Islam so much and protect them, then we advise you to seek their support for your countries’ security,” he said.

Swedish Foreign Minister Tobias Billstrom declined to immediately comment on Erdogan’s remarks, telling Reuters in a written statement he wanted to understand exactly what had been said.

“But Sweden will respect the agreement that exists between Sweden, Finland and Turkey regarding our NATO membership,” he added.

Sweden and Finland applied last year to join NATO following Russia’s invasion of Ukraine but all 30 member states must approve their bids. Ankara has previously said Sweden in particular must first take a clearer stance against what it sees as terrorists, mainly Kurdish militants and a group it blames for a 2016 coup attempt in Turkey.

U.S. State Department spokesperson Ned Price said Finland and Sweden are ready to join the alliance, but declined to comment on whether Washington thought Erdogan’s comments meant a definitive shutting of the door to them.

“Ultimately, this is a decision and consensus that Finland and Sweden are going to have to reach with Turkey,” Price said.

Price told reporters that burning books that are holy to many is a deeply disrespectful act, adding that the United States is cognizant that those who may be behind what took place in Sweden may be intentionally trying to weaken unity across the Atlantic and among Washington’s European allies.

“We have a saying in this country – something can be lawful but awful. I think in this case, what we’ve seen in the context of Sweden falls into that category,” Price said.

The Koran-burning was carried out by Rasmus Paludan, leader of Danish far-right political party Hard Line. Paludan, who also has Swedish citizenship, has staged a number of demonstrations in the past where he burned the Koran.

Several Arab countries including Saudi Arabia, Jordan and Kuwait denounced the event. Turkey had already summoned Sweden’s ambassador and cancelled a planned visit by the Swedish defence minister to Ankara.

Reporting by Ece Toksabay and Huseyin Hayatsever; Additional reporting by Niklas Pollard in Stockholm and Humeyra Pamuk in Washington; Editing by Hugh Lawson and Grant McCool

Our Standards: The Thomson Reuters Trust Principles.

Read original article here