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NFL ref explains Chiefs’ do-over amid wave of criticism of AFC Championship officiating

NFL officials attempted to explain what happened on a controversial third down in the fourth quarter of the AFC Championship Game between the Kansas City Chiefs and the Cincinnati Bengals.

On 3rd down with a little more than 10 minutes to play in the game, the Bengals stopped the Chiefs to bring up what was thought to have been fourth down. However, officials determined that a whistle was blown before the ball was snapped and instead of the Chiefs getting ready to punt they got another chance to try and convert on third down.

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Head coach Zac Taylor of the Cincinnati Bengals talks with referee Ronald Torbert, center, and line judge Jeff Seeman during the AFC Championship Game against the Chiefs in the at GEHA Field at Arrowhead Stadium on Jan. 29, 2023, in Kansas City, Missouri.
(Kevin C. Cox/Getty Images)

The noise in Arrowhead Stadium apparently prevented the other officials from hearing the whistle. Bengals coach Zac Taylor was irate on the sideline. On the next play, Chiefs quarterback Patrick Mahomes was sacked for an 8-yard loss, but Bengals cornerback Eli Apple was called for holding on the play.

In the pool report, officials explained what was going on. Pro Football Writers Association reporter Ben Baby asked referee Ron Torbert to explain what happened on the replayed third down.

“On the previous play, there was an incomplete pass. We spotted the ball, but the line judge came in and re-spotted the ball because the spot was off,” Torbert explained. “We reset the play clock and the game clock started running. It should not have started running because there was an incomplete pass on the previous play.

BRITTANY MAHOMES, WIFE OF CHIEFS STAR, HAS ONE LAST TROLL FOR THE BENGALS AFTER AFC CHAMPIONSHIP

“The field judge noticed that the game clock was running. He was coming in to shut the play down so that we could get the clock fixed but nobody heard him and the play was run. After the play was over, he came in and we discussed that he was trying to shut the play down before the ball had been snapped. So, we reset the game clock back to where it was before that snap and replayed third down.”

Referee Ronald Torbert reacts during the AFC Championship Game at GEHA Field at Arrowhead Stadium on Jan. 29, 2023, in Kansas City, Missouri.
(Kevin C. Cox/Getty Images)

The play enraged some fans on social media. Bengals wide receiver Ja’Marr Chase was among those upset with the extra down.

Luckily, for the Bengals, the defense was able to hold strong against the Chiefs and force them to punt after three extra plays.

On Cincinnati’s next drive, Joe Burrow threw an interception. The score stayed tied 20-20 for the time being with less than 7 minutes to play.

Chris Jones of the Chiefs sacks Joe Burrow of the Cincinnati Bengals during the AFC Championship Game at GEHA Field at Arrowhead Stadium on Jan. 29, 2023, in Kansas City, Missouri.
(Kevin C. Cox/Getty Images)

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Harrison Butker would kick the go-ahead field goal with a few seconds left to play.

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Kansas residents hold their noses as crews mop up massive U.S. oil spill

WASHINGTON, Kan., Dec 10 (Reuters) – Residents near the site of the worst U.S. oil pipeline leak in a decade took the commotion and smell in stride as cleanup crews labored in near-freezing temperatures, and investigators searched for clues to what caused the spill.

A heavy odor of oil hung in the air as tractor trailers ferried generators, lighting and ground mats to a muddy site on the outskirts of this farming community, where a breach in the Keystone pipeline discovered on Wednesday spewed 14,000 barrels of oil.

Pipeline operator TC Energy (TRP.TO) said on Friday it was evaluating plans to restart the line, which carries 622,000 barrels per day of Canadian oil to U.S. refineries and export hubs.

“We could smell it first thing in the morning; it was bad,” said Washington resident Dana Cecrle, 56. He shrugged off the disruption: “Stuff breaks. Pipelines break, oil trains derail.”

TC Energy did not provide details of the breach or say when a restart on the broken segment could begin. Officials are scheduled on Monday to receive a briefing on the pipeline breach and cleanup, said Washington County’s emergency preparedness coordinator, Randy Hubbard, on Saturday.

OIL FLOWS TO CREEK

Environmental specialists from as far away as Mississippi were helping with the cleanup and federal investigators combed the site to determine what caused the 36-inch (91-cm) pipeline to break.

Washington County, a rural area of about 5,500 people, is about 200 miles (322 km) northwest of Kansas City.

The spill has not threatened the water supply or forced residents to evacuate. Emergency workers installed booms to contain oil that flowed into a creek and that sprayed onto a hillside near a livestock pasture, said Hubbard.

TC Energy aims to restart on Saturday a pipeline segment that sends oil to Illinois, and another portion that brings oil to the major trading hub of Cushing, Oklahoma, on Dec. 20, Bloomberg News reported, citing sources. Reuters has not verified those details.

It was the third spill of several thousand barrels of crude on the 2,687-mile (4,324-km) pipeline since it opened in 2010. A previous Keystone spill had caused the pipeline to remain shut for about two weeks.

“Hell, that’s life,” said 70-year-old Carol Hollingsworth of nearby Hollenberg, Kansas, about the latest spill. “We got to have the oil.”

TC Energy had around 100 workers leading the cleanup and containment efforts, and the U.S. Environmental Protection Agency was providing oversight and monitoring, said Kellen Ashford, an EPA spokesperson.

U.S. regulator Pipeline and Hazardous Materials Administration (PHMSA) said the company shut the pipeline seven minutes after receiving a leak detection alarm.

CRUDE BOTTLENECK

A lengthy shutdown of the pipeline could lead to Canadian crude getting bottlenecked in Alberta, and drive prices at the Hardisty storage hub lower, although price reaction on Friday was muted.

Western Canada Select (WCS), the benchmark Canadian heavy grade, for December delivery last traded at a discount of $27.70 per barrel to the U.S. crude futures benchmark , according to a Calgary-based broker. On Thursday, December WCS traded as low as $33.50 under U.S. crude, before settling at around a $28.45 discount.

“The real impact could come if Keystone faces any (flow) pressure restrictions from PHMSA, even after the pipeline is allowed to resume operations,” said Ryan Saxton, head of oil data at consultants Wood Mackenzie.

Reporting by Erwin Seba in Washington, Kansas, and Nia Williams in Calgary, Alberta;
Additional reporting by Arathy Somasekhar in Houston, Rod Nickel in Winnipeg and Stephanie Kelly in New York
Editing by Gary McWilliams, Stephen Coates and Matthew Lewis

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Oil removal effort for Keystone pipeline spill to extend to next week, U.S. EPA says

Dec 9 (Reuters) – The effort to remove oil from the largest crude spill in the United States in nearly a decade will extend into next week, the U.S. Environmental Protection Agency said on Friday, making it likely that the Keystone pipeline shutdown will last for several more days.

TC Energy (TRP.TO) shut the largest oil pipeline to the United States from Canada on Wednesday after it leaked 14,000 barrels of oil into a Kansas creek. It said on Friday it is still determining when it will be able to return the line to service.

The outage on the Keystone, which carries 622,000 barrels of Canadian crude per day (bpd) to various parts of the United States, could affect inventories at the key Cushing, Oklahoma, storage hub and cut crude supplies to two oil refining centers, analysts said. Crews in Kansas continued clean-up efforts on Friday from the breach, the cause of which remained unknown.

“We’re beginning to get a better sense of the clean up efforts that will need to be undertaken in the longer-term,” said Kellen Ashford, spokesperson for the EPA Region 7, which includes Kansas.

TC Energy aims to restart on Saturday a pipeline segment that sends oil to Illinois, and another portion that brings oil to Cushing on Dec. 20, Bloomberg News reported, citing sources. Reuters has not verified those details.

This is the third spill of several thousand barrels of crude on the pipeline since it first opened in 2010. A previous Keystone spill had caused the pipeline to remain shut for about two weeks.

TC Energy remained on site with around 100 workers leading the clean-up and containment efforts, and the EPA was providing oversight and monitoring, Ashford said. TC is responsible for determining the cause of the leak.

A corrective action order from the U.S. Pipeline and Hazardous Materials Administration (PHMSA) to TC on Thursday said the company shut the pipeline down seven minutes after receiving a leak detection alarm. The affected segment, 36 inches (91 cm) in diameter, was Keystone’s Phase 2 extension to Cushing built in 2011.

Washington County, a rural area of about 5,500 people, is about 200 miles (320 km) northwest of Kansas City.

The oil spill has not threatened the local water supply or forced local residents to evacuate, Washington County Emergency Management Coordinator Randy Hubbard told Reuters. Workers quickly set up a containment area to restrict oil that had spilled into a creek from flowing downstream.

“There is no human consumption drinking water that would come out of this,” Hubbard said.

Livestock producers in the area have been notified and have taken their own corrective measure to protect their animals, he added.

The EPA is the main federal agency that oversees inland oil spills. If the EPA finds TC Energy liable for the spill, the company would be responsible for the cost of cleanup and repairing any harm to the environment, as well as potential civil and criminal penalties.

Pipeline operators are typically held accountable for breaches by the EPA through the Clean Water Act (CWA) and the related Oil Pollution Act, among others, according to Zygmunt Plater, an environmental law professor at Boston College Law School.

Those federal acts restrict the discharge of pollutants such as oil into waterways and hold pipeline operators responsible for the costs associated with containment, cleanup and damages from spills.

CRUDE BOTTLENECK

A lengthy shutdown of the pipeline could also lead to Canadian crude getting bottlenecked in Alberta, and drive prices at the Hardisty storage hub lower, although price reaction on Friday was muted.

Western Canada Select (WCS), the benchmark Canadian heavy grade, for December delivery last traded at a discount of $27.70 per barrel to the U.S crude futures benchmark, according to a Calgary-based broker. On Thursday, December WCS traded as low as $33.50 under U.S. crude, before settling at around a $28.45 discount.

PHMSA has to approve the restart of the line. Even once the pipeline starts operating again, the affected area will have to flow at reduced rates pending PHMSA approval.

“The real impact could come if Keystone faces any pressure restrictions from PHMSA, even after the pipeline is allowed to resume operations,” said Ryan Saxton, head of oil data at Wood Mackenzie.

Additional reporting by Arathy Somasekhar, Rod Nickel, Stephanie Kelly and Clark Mindock; Editing by Marguerita Choy

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Russia’s Sechin says Taiwan will return to China ‘on schedule’

  • Sechin: China will get Taiwan on time
  • Sechin praises Saudi Arabia
  • Sechin says BP a ‘shadow’ shareholder
  • BP: continuing to pursue an exit

BAKU, Oct 27 (Reuters) – Igor Sechin, chief executive of Russian oil giant Rosneft (ROSN.MM) and one of Vladimir Putin’s closest allies, on Thursday heaped praise on China’s leaders and said Taiwan would return to its “native harbour” on time.

Sechin said that decisions taken by the 20th Communist Party Congress, which cemented Xi Jinping position as the most powerful Chinese leader since Mao Zedong, would provide for a new level of development for the country.

The deepening “no limits” partnership between the rising superpower of China and the natural resources titan of Russia is one of the most intriguing geopolitical developments of recent years – and one the West is watching with anxiety.

“The position of (China’s) leadership is highly respected, which calmly and openly, without false premises, sets out its positions, even on the most difficult issues, such as the problem of Taiwan, which in this regard can be assessed as somewhat exaggerated,” Sechin told an international economic forum in Baku, previously held in Italy’s Verona.

He said U.S. attempts to create its own complex microchip industry showed that “Taiwan’s return to its native harbour” was “on schedule”.

Taiwan’s Foreign Ministry condemned the comments, saying only the island’s people could decide their future.

“Neither our government, people nor the international community can accept absurd remarks that are in China’s cortege or demean Taiwan’s sovereign status,” it said in a statement.

China claims democratically governed Taiwan as its own territory and has ramped up military and political pressure against the island over the past two years. Taipei strongly rejects Beijing’s sovereignty claims.

Russia has repeatedly warned the United States against meddling in China’s affairs while President Vladimir Putin has explicitly backed Xi over the fate of the island where the defeated Republic of China government fled in 1949 after losing the Chinese civil war to Mao’s communists.

BP’S DIVIDEND

Sechin said Rosneft had transferred $700 million in second-half 2021 dividends into special accounts for BP (BP.L), which remained Rosneft’s “shadow” shareholder despite a decision to leave the company following the start of what Moscow calls its “special military operation” in Ukraine.

BP said its position on Russia has remained unchanged.

“In February we announced our decision to exit Rosneft and our other Russian businesses – we continue to pursue that,” it said in emailed comments.

Sechin also said that Saudi Arabia’s position on the global oil market was “reasonable” and based on analysis of oil supply and demand.

The United States, he said, had tried to persuade Saudi Arabia to postpone oil output cuts as part of OPEC+.

“Today, the energy policy of the (Joe) Biden administration is solving exclusively pre-election tasks with a planning horizon of two weeks, given that the elections to the U.S. Congress are on November 8,” Sechin said.

“This includes attempts to persuade Saudi Arabia to at least postpone the announcement of this decision until the elections.”

The OPEC+ group of global leading oil producers, which includes Saudi Arabia and Russia, agreed this month to cut its combined output by 2 million barrels per day despite opposition from the United States, which wants lower fuel prices.

Saudi Arabia rejected criticism of an OPEC+ decision to cut its oil production target despite U.S. objections and said that Washington’s request to delay the cut by a month would have had negative economic consequences.

Reporting by Nailia Bagirova and Olesya Astakhova; Additional reporting by Ron Bousso and Ben Blanchard in London; Writing by Vladimir Soldatkin; Editing by Guy Faulconbridge, Nick Macfie and Mike Harrison

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World is in its ‘first truly global energy crisis’ – IEA’s Birol

SINGAPORE, Oct 25 (Reuters) – Tightening markets for liquefied natural gas (LNG) worldwide and major oil producers cutting supply have put the world in the middle of “the first truly global energy crisis”, the head of the International Energy Agency (IEA) said on Tuesday.

Rising imports of LNG to Europe amid the Ukraine crisis and a potential rebound in Chinese appetite for the fuel will tighten the market as only 20 billion cubic meters of new LNG capacity will come to market next year, IEA Executive Director Fatih Birol said during the Singapore International Energy Week.

At the same time the recent decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to cut 2 million barrels per day (bpd) of output is a “risky” decision as the IEA sees global oil demand growth of close to 2 million bpd this year, Birol said.

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“(It is) especially risky as several economies around the world are on the brink of a recession, if that we are talking about the global recession…I found this decision really unfortunate,” he said.

Soaring global prices across a number of energy sources, including oil, natural gas and coal, are hammering consumers at the same time they are already dealing with rising food and services inflation. The high prices and possibility of rationing are potentially hazardous to European consumers as they prepare to enter the Northern Hemisphere winter.

Europe may make it through this winter, though somewhat battered, if the weather remains mild, Birol said.

“Unless we will have an extremely cold and long winter, unless there will be any surprises in terms of what we have seen, for example Nordstream pipeline explosion, Europe should go through this winter with some economic and social bruises,” he added.

For oil, consumption is expected to grow by 1.7 million bpd in 2023 so the world will still need Russian oil to meet demand, Birol said.

G7 nations have proposed a mechanism that would allow emerging nations to buy Russian oil but at lower prices to cap Moscow’s revenues in the wake of the Ukraine war.

Birol said the scheme still has many details to iron out and will require the buy-in of major oil importing nations.

A U.S. Treasury official told Reuters last week that it is not unreasonable to believe that up to 80% to 90% of Russian oil will continue to flow outside the price cap mechanism if Moscow seeks to flout it.

“I think this is good because the world still needs Russian oil to flow into the market for now. An 80%-90% is good and encouraging level in order to meet the demand,” Birol said.

While there is still a huge volume of strategic oil reserves that can be tapped during a supply disruption, another release is not currently on the agenda, he added.

ENERGY SECURITY DRIVES RENEWABLES GROWTH

The energy crisis could be a turning point for accelerating clean sources and for forming a sustainable and secured energy system, Birol said.

“Energy security is the number one driver (of the energy transition),” said Birol, as countries see energy technologies and renewables as a solution.

The IEA has revised up the forecast of renewable power capacity growth in 2022 to a 20% year-on-year increase from 8% previously, with close to 400 gigawatts of renewable capacity being added this year.

Many countries in Europe and elsewhere are accelerating the installation of renewable capacity by cutting the permitting and licensing processes to replace the Russian gas, Birol said.

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Reporting by Florence Tan, Muyu Xu and Emily Chow; Editing by Jacqueline Wong and Christian Schmollinger

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Putin orders seizure of Exxon-led Sakhalin 1 oil and gas project

MOSCOW/HOUSTON, Oct 7 (Reuters) – Russian President Vladimir Putin signed a decree on Friday that establishes a new operator for the Exxon Mobil Corp-led (XOM.N) Sakhalin-1 oil and gas project in Russia’s Far East.

Putin’s move affecting Exxon’s largest investment in Russia mimics a strategy he used to seize control of other energy properties in the country.

The decree gives the Russian government authority to decide whether foreign shareholders can retain stakes in the project.

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Exxon holds a 30% operator stake in Sakhalin-1, with Russian company Rosneft (ROSN.MM), India’s ONGC Videsh (ONVI.NS) and Japan’s SODECO as partners.

Oil production at the Sakhalin-1 project fell to just 10,000 barrels per day (bpd) in July from 220,000 bpd before Russia invaded Ukraine.

NAVIGATING AN EXIT

Exxon has been trying to exit its Russia operations and transfer its role in Sakhalin-1 to a partner since March, after international sanctions imposed on Moscow.

Russia’s government and Exxon have clashed, with the oil producer threatening to take the case to international arbitration.

Exxon declined to comment on Friday’s decree.

Japan’s SODECO was not immediately available to comment, but an official of the industry ministry, which owns a 50% stake in the firm, said it was gathering information and talking with partners. Japan has stopped buying crude from Russia since June. read more

Exxon took an impairment charge of $4.6 billion in April for its Russian activities and said it was working with partners to transfer Sakhalin-1’s operation. It also reduced energy production and moved staff out of the country.

In August, Putin issued a decree that Exxon said made a secure and environmentally safe exit from Sakhalin-1 difficult. The U.S. producer then issued a “note of difference,” a legal step prior to arbitration.

Friday’s decree said the Russian government was establishing a Russian company, managed by Rosneft subsidiary Sakhalinmorneftegaz-shelf, that will own investors’ rights in Sakhalin-1.

Foreign partners will have one month after the new company is created to ask the Russian government for shares in the new entity, the decree said.

Putin used a similar strategy in a July decree to seize full control of Sakhalin-2, another gas and oil project in the Russian Far East, with Shell (SHEL.L) and Japanese companies Mitsui & Co (8031.T) and Mitsubishi Corp as partners.

Russia has approved applications by the two Japanese trading houses seeking to transfer their stakes to a new operator. read more

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Reporting by Reuters; Additional reporting by Yoshifumi Takemoto, Yuka Obayashi in Tokyo, Editing by Cynthia Osterman and Clarence Fernandez

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Exxon, Chevron post blowout earnings, oil majors bet on buybacks

  • High prices, margins lift majors to best quarters in history
  • Exxon earnings surpass previous record set in 2012

July 29 (Reuters) – The two largest U.S. oil companies, Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N), posted record revenue on Friday, bolstered by surging crude oil and natural gas prices and following similar results for European majors a day earlier.

The U.S. pair, along with UK-based Shell (SHEL.L) and France’s TotalEnergies (TTEF.PA), combined to earn nearly $51 billion in the most recent quarter, almost double what the group brought in for the year-ago period.

Exxon outpaced its rivals with a $17.9 billion quarterly profit, the most for any international oil major in history.

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Chevron, Shell and Total ran to catch up with Exxon’s aggressive buyback program, which was kept unaltered.

The four returned a total of $23 billion to shareholders in the quarter, capitalizing on high margins derived from selling oil and gas. The fifth major, BP Plc (BP.L), reports next week. read more

The companies posted strong results in their production units, helped by the surge in benchmark Brent crude oil futures , which averaged around $114 a barrel in the quarter.

High crude oil prices can cut into margins for integrated oil majors, as they also bear the cost of crude used for refined products. However, following Russia’s invasion of Ukraine and numerous shutdowns of refineries worldwide in the wake of the coronavirus pandemic, refining margins exploded in the second quarter, outpacing the gains in crude and adding to earnings.

“The strong second-quarter results reflect a tight global market environment, where demand has recovered to near pre-pandemic levels and supply has attritted,” said Exxon Chief Executive Darren Woods, in a call with analysts. “Growing supply will not happen overnight.”

The results from the majors are sure to draw fire from politicians and consumer advocates who say the oil companies are capitalizing on a global supply shortage to fatten profits and gouge consumers. U.S. President Joe Biden last month said Exxon and others were making “more money than God” at a time when consumer fuel prices surged to records. read more

Earlier this month, Britain passed a 25% windfall tax on oil and gas producers in the North Sea. U.S. lawmakers have discussed a similar idea, though it faces long odds in Congress. read more

A windfall tax does not provide “incentive for increased production, which is really what the world needs today,” said Exxon Chief Financial Officer Kathryn Mikells, in an interview with Reuters.

The companies say they are merely meeting consumer demand, and that prices are a function of global supply issues and lack of investment. The majors have been disciplined with their capital and are resisting ramping up capital expenditure due to pressure from investors who want better returns and resilience during a down cycle.

“In the short term (cash from oil) goes to the balance sheet. There’s no nowhere else for it to go,” Chevron CFO Pierre Breber told Reuters.

Worldwide oil output has been held back by a slow return of barrels to the market from the Organization of the Petroleum Exporting Countries and allies, including Russia, as well as labor and equipment shortages hampering a swifter increase in supply in places like the United States.

Exxon earlier this year more than doubled its projected buyback program to $30 billion through 2022 and 2023. Shell said it would buy back $6 billion in shares in the current quarter, while Chevron boosted its annual buyback plans to a range of $10 billion to $15 billion, up from $5 billion to $10 billion.

Exxon shares were up 4.5% to $96.87 in afternoon trading. Chevron shares rose more than 8% to $163.68.

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Reporting By Sabrina Valle; writing by David Gaffen; Editing by Kirsten Donovan and Marguerita Choy

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Oil from U.S. reserves sent overseas as gasoline prices stay high

HOUSTON, July 5 (Reuters) – More than 5 million barrels of oil that were part of a historic U.S. emergency reserves release to lower domestic fuel prices were exported to Europe and Asia last month, according to data and sources, even as U.S. gasoline and diesel prices hit record highs.

The export of crude and fuel is blunting the impact of the moves by U.S. President Joe Biden to lower record pump prices. Biden on Saturday renewed a call for gasoline suppliers to cut their prices, drawing criticism from Amazon founder Jeff Bezos. read more

About 1 million barrels per day is being released from the Strategic Petroleum Reserve (SPR) through October. The flow is draining the SPR, which last month fell to the lowest since 1986. U.S. crude futures are above $100 per barrel and gasoline and diesel prices above $5 a gallon in one-fifth of the nation. U.S. officials have said oil prices could be higher if the SPR had not been tapped.

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“The SPR remains a critical energy security tool to address global crude oil supply disruptions,” a Department of Energy spokesperson said, adding that the emergency releases helped ensure stable supply of crude oil.

The fourth-largest U.S. oil refiner, Phillips 66 (PSX.N), shipped about 470,000 barrels of sour crude from the Big Hill SPR storage site in Texas to Trieste, Italy, according to U.S. Customs data. Trieste is home to a pipeline that sends oil to refineries in central Europe.

Atlantic Trading & Marketing (ATMI), an arm of French oil major TotalEnergies (TTEF.PA), exported 2 cargoes of 560,000 barrels each, the data showed.

Phillips 66 declined to comment on trading activity. ATMI did not respond to a request for comment.

Cargoes of SPR crude were also headed to the Netherlands and to a Reliance (RELI.NS) refinery in India, an industry source said. A third cargo headed to China, another source said.

At least one cargo of crude from the West Hackberry SPR site in Louisiana was set to be exported in July, a shipping source added.

“Crude and fuel prices would likely be higher if (the SPR releases) hadn’t happened, but at the same time, it isn’t really having the effect that was assumed,” said Matt Smith, lead oil analyst at Kpler.

The latest exports follow three vessels that carried SPR crude to Europe in April helping replace Russian crude supplies. read more

U.S. crude inventories are the lowest since 2004 as refineries run near peak levels. Refineries in the U.S. Gulf coast were at 97.9% utilization, the most in three and a half years.

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Reporting by Arathy Somasekhar in Houston; Editing by Chizu Nomiyama and Sam Holmes

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Russia seizes control of Sakhalin gas project, raises stakes with West

  • Putin signed decree to secure all rights on Thursday
  • Five-page decree follows tightening Western sanctions
  • Move raises risks for Western firms still in Russia
  • Shell was already in talks to sell up Sakhalin stake

TOKYO/LONDON, July 1 (Reuters) – President Vladimir Putin has raised the stakes in an economic war with the West and its allies with a decree that seizes full control of the Sakhalin-2 gas and oil project in Russia’s far east, a move that could force out Shell and Japanese investors.

The order, signed on Thursday, creates a new firm to take over all rights and obligations of Sakhalin Energy Investment Co, in which Shell (SHEL.L) and two Japanese trading companies Mitsui and Mitsubishi hold just under 50%. read more

The five-page decree, which follows Western sanctions imposed on Moscow over its invasion of Ukraine, indicates the Kremlin will now decide whether the foreign partners can stay.

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State-run Gazprom (GAZP.MM) already has a 50% plus one share stake in Sakhalin-2, which accounts for about 4% of the world’s liquefied natural gas (LNG) production.

The move threatens to unsettle an already tight LNG market, although Moscow said it saw no reason for Sakhalin-2 deliveries to stop. Japan imports 10% of its LNG each year from Russia, mainly under long-term contract from Sakhalin-2. The action also raises the risks facing Western companies still in Russia.

“Russia’s decree effectively expropriates foreign stakes in the Sakhalin Energy Investment Company, marking a further escalation in ongoing tensions,” said Lucy Cullen, a principal analyst from consultancy Wood Mackenzie.

Many Western firms have already packed up, while others have said they would quit, but Putin’s move adds complications to an already complex process for those looking for the exit. Moscow has been preparing a law, expected to pass soon, to allow the state to seize assets of Western firms which decide to go.

Shell, which has already written off the value of its Russian assets, made clear months ago it intended to quit Sakhalin-2 and has been in talks with potential buyers. It said on Friday it was assessing the Russian decree.

Sources have said Shell believed there was a risk Russia would nationalise foreign-held assets, while Putin has repeatedly said Moscow would retaliate against the United States and its allies for freezing Russian assets and other sanctions.

Sakhalin-2, in which Shell has a 27.5% minus one share stake, is one of the world’s largest LNG projects with output of 12 million tonnes. Its cargoes mainly head to Japan, South Korea, China, India and other Asian countries.

MAKING PREPARATIONS

Kremlin spokesman Dmitry Peskov said Russia saw no grounds for halting LNG deliveries from Sakhalin-2 and said the future of other projects or investments would be determined case by case.

“There can be no general rule here,” he said.

Japan, which depends heavily on imported energy, has said it would not give up its interests in Sakhalin-2, in which Japan’s Mitsui has a 12.5% stake and Mitsubishi holds 10%.

Japanese Prime Minister Fumio Kishida said on Friday that Russia’s decision would not immediately stop LNG imports from the development, while Japan’s Industry Minister Koichi Hagiuda said the government did not consider the decree a requisition.

“The decree does not mean that Japan’s LNG imports will become immediately impossible, but it is necessary to take all possible measures in preparation for unforeseen circumstances,” Hagiuda told reporters.

Japan has 2-3 weeks of LNG stocks held by utilities and city gas suppliers and Hagiuda has asked his U.S. and Australian energy counterparts for alternative supplies, he said.

According to the decree, Gazprom keeps its stake but others must ask the Russian government for a stake in the new firm within one month. The government will decide whether to approve any request.

Gazprom, Sakhalin Energy and the Russian energy ministry did not respond to requests for comment.

A Mitsubishi spokesperson said the company was discussing with partners in Sakhalin and Japan’s government about how to respond to the decree. Mitsui did not comment immediately.

Shares in Mitsui & Co (8031.T) and Mitsubishi Corp (8058.T) slid more than 5% on Friday. Shell’s shares edged higher.

Shell Chief Executive Ben van Beurden said on Wednesday the company was “making good progress” in its plan to exit from the Sakhalin Energy joint venture without giving details.

Sources had told Reuters in May that Shell was in talks with an Indian consortium to sell its stake. read more

Russian LNG production from projects such as Sakhalin-2 was likely to suffer as foreign expertise and parts became unavailable, said Saul Kavonic, head of Integrated Energy and Resources Research at Credit Suisse.

“This will tighten the LNG market materially this decade,” he said.

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Reporting by Yuka Obayashi, Sakura Murakami, Ju-min Park, Kiyoshi Takenaka in Tokyo, Ron Bousso in London, Emily Chow in Kuala Lumpur, Muyu Xu in Singapore and; Writing by Chang-Ran Kim and Edmund Blair; Editing by Simon Cameron-Moore and Carmel Crimmins

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WWE’s first female ref, who claimed Vince McMahon raped her in the 1980s, reveals new details

WWE’s first female referee who claimed she was raped by former chairman Vince McMahon in the 1980s revealed new details about the incident amid a slew of fresh allegations against the wrestling boss. 

Rita Chatterton, who became a licensed wrestling referee in New York in 1984, had previously accused McMahon of forcing himself on her in a limo in a 1992 interview with Geraldo Rivera.

Her allegations were corroborated by former pro wrestler Leonard Inzitari in a new report by New York Magazine — which also delved into what led up to the harrowing encounter nearly four decades ago.

“He promised me half-a-million dollars a year,” she told the outlet in the story out Monday, referring to the contract offer McMahon extended over the phone following her television debut with the then-WWF in January 1985.

McMahon, whose father started WWF, had called Chatterton to tell her he was “impressed” with her work and wanted her to go “full-time” but had a warning for her, she told New York Magazine.

Rita Chatterton’s claim that she was raped by former WWE chairman Vince McMahon has recently been corroborated by former professional wrestler Leonard Inzitari.
Rachman, Chad

“Keep yourself clean,” he said, according to Chatterton.

“I don’t wanna see you messing around with any of the wrestlers. You keep it professional.”

The wrestling mogul also told Chatterton she’d be on the cover of glossies like Women’s Day, Better Homes and Gardens and Time, so she quit her job as a delivery driver with Frito-Lay and began to pursue wrestling full-time. But the relationship soured when the young ref tried to follow up – and McMahon allegedly raped her in July 1986.

During her interview with New York Magazine, Chatterton refused to go into specifics but Inzitari, a longtime friend from the business, corroborated her story for the first time since the allegations were made.

“I remember it like it was yesterday,” Inzitari told the outlet.

“She was a wreck. She was shaking. She was crying.”

Inzitari, whose stage name was Mario Mancini, said soon after the incident, he found Chatterton standing by herself close to the wrestling ring and when she saw him, she burst into tears and told him she was in McMahon’s limo when he “took his penis out.” 

“He kinda forced my head down there, and I made it known I wasn’t interested in doing that,” Inzitari recalled Chatterton telling him. 

“Then, [McMahon] pulled me on top of him,” she told Inzitari and soon, “He was inside her.”

Chatterton told the outlet the attack happened after she asked McMahon to discuss her career and he told her to meet her at a diner after the show.

Later, while sitting at a “big round table” with about a dozen others, Chatterton brought up her career but McMahon told her to keep quiet, she told the outlet.

“[He] put his finger to his mouth, in a shhh sign,” she recalled.

“When I come out of the ladies’ room, McMahon’s standing there … and he says, ‘I don’t wanna talk to you about your career in front of all these people, because it’s none of their business.’”

He suggested the two go to another diner down the street but when she left the restaurant, McMahon said he was tired and asked to speak inside his limo.

“It’ll only take 10 minutes,” he allegedly said.

During her interview with Rivera, Chatterton claimed McMahon then unzipped his pants and orally raped her. 

“Vince continued to, you know, ‘If you want a half-a-million-dollar contract, you’re going to have to satisfy me, and this is the way things have to go,’” she said at the time.

“Vince grabbed my hand, kept trying to put my hand on him. I was scared. At the end, my wrist was all purple, black, and blue. Things just didn’t … He just … God, he just didn’t stop. This man just didn’t stop.”

Chatterton told Rivera that McMahon asked how her daughter planned to go to college and said “Of course, she doesn’t have to go to college.”

“I was forced into oral sex with Vince McMahon. When I couldn’t complete his desires, he got really angry, started ripping off my jeans, pulled me on top of him, and told me again that, if I wanted a half-a-million-dollar-a-year contract, that I had to satisfy him. He could make me or break me, and if I didn’t satisfy him, I was black-balled, that was it, I was done,” she told Rivera. 

Speaking to New York Magazine, Chatterton recalled what McMahon said once the attack was over.

“One of the things that sticks with me, and always will… was, after he got done doing his business, he looked at me and said, ‘Remember when I told you not to mess with any of the wrestlers? Well, you just did,’” she recalled.

Following the attack, Chatterton told New York Magazine she went to the diner’s restroom and “cried my heart out” before going home and taking a “five-hour shower.”

While she did contact a lawyer in hopes of holding McMahon accountable, she ultimately decided against it.

“It came down that it was my word against McMahon’s, because I took a shower and didn’t go to the hospital,” she said.

“I was scared … He was powerful. It was gonna be him over me.”

When Chatterton first told Rivera her story in 1992, WWE was already in the midst of numerous scandals and her claims were buried in the noise. Soon, she left wrestling altogether and became a youth counselor. 

Earlier this month, McMahon was accused of paying millions of dollars in hush money to a female employee he had an affair with, leading to his resignation from his role as CEO and chairman of WWE.

The fresh claims are what inspired Chatterton and Inzitari to speak out after so much time had passed. 

“I’m sure others will come forward. Because we’re not the only two. There’s not a doubt in my mind about that,” Chatterton told the outlet. 

“As far as wrestling goes, I guess I’m the first in a lot of things … As far as I know, I’m the first to come out with the whole issue of what a scumbag he is.”

Inzitari, who has avoided speaking negatively about McMahon in the past, agreed. 

“I’ll tell you why I’m hopping on the bandwagon now,” he said. 

“There’s worse stuff than that.”

WWE didn’t return a request for comment.

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