As the Middle East conflict increases costs, Bangladesh secures LNG spot cargoes
Energy officials reported that Bangladesh purchased three LNG cargoes at higher prices on the spot markets, as it scrambled to maintain supplies in the face of disruptions caused by the escalating conflict between Iran and Israel. Energy officials in South Asia said that Petrobangla, the state-run energy company, has increasingly turned to the volatile market to fill the gap after certain suppliers had to stop shipments. An anonymous official from the energy ministry said that if the disruption continues…
India is ready to support the oil markets after IEA releases record-breaking release
India announced 'on Wednesday that it is ready to support the global oil'markets, in line with the International Energy Agency releasing a record 400,000,000 barrels - of oil in an effort to tame the prices which have risen following the U.S./Israeli war against Iran. India has not provided any details about how it will support the IEA. An official source said on Monday that India has no plans to join IEA's initiative before a G7 summit to discuss possible releases of strategic oil reserves.
India warns its consumers to conserve energy and not panic about gas shortages
India, the second largest importer of LPG in the world, asked its consumers to conserve energy and not panic over gas supplies. The 'federal government' has used emergency powers to order refiners that they increase production of LPG, and reduce sales to industry in order to prevent a shortage. Sujata sharma, joint secretary at the federal oil minister, stated that government measures had increased LPG production locally by 25%. Restaurants, hotels and other industries are feeling the pressure from a tightening supply of LPG.
India's kitchens are forced to stop cooking hot food because of a shortage of cooking gas
As a result of the Middle East conflict, cooking gas is in short supply across the country. To make LPG (liquefied Petroleum Gas) last longer, cooks are switching to simpler meals that require less fuel. As a result of Iran's war on terror, shipping through the Strait of Hormuz has been effectively halted. This has led to an increase in energy and transportation costs. It also affects the output of oil and gas producers in the Middle East.
SLB warns that Middle East disruptions will impact first-quarter earnings
SLB, an oilfield services firm, said that escalating tensions in the Middle East would affect its first-quarter earnings and revenue by 6 to 9 cents. Energy companies are moving to protect their personnel and facilities throughout the region. SLB's share price fell 2.3% during premarket trading. The disruption is a sign of escalating geopolitical tensions that are beginning to affect the global oil and gas supply chain. This has forced?energy companies?
Uniper CEO: We are protected from the latest Middle East energy crisis
Michael Lewis, CEO of the German utility, told analysts that Uniper does not purchase liquefied gas from the Middle East, where the 'U.S. and Israeli attacks against Iran' have caused price spikes in oil and gas. Lewis, speaking after the group's annual results were published, said that, while higher prices might bring back memories of the energy crisis in Europe 2022, which led to the nationalisation of Uniper, today the company is much more resilient.
Palm oil closes higher as Chicago soyoil strength and crude oil rally boost prices
Malaysian palm futures closed higher on Wednesday, supported both by the stronger soyoil market in Chicago and rising crude oil prices. At the close, the benchmark 'palm oil contract' for May delivery at the?Bursa?Malaysia Derivatives Exchange rose 71 ringgit (1.6%), to 4,499 Ringgit ($1,149.76). The contract had dropped to 4,395 Ringgit earlier in day. Soyoil traded on the Chicago Board of Trade increased by 3.11%. Dalian's most active soyoil contract gained 0.68%, after falling 0.19% in the morning.
EUROPE GAS - European gas prices increase on fear of LNG shortage
LONDON - Benchmark European wholesale gas prices increased on Wednesday morning after reports that Iran had laid mines along the 'Strait of Hormuz' raised concerns about liquefied gas supply. The conflict in the Middle East would also last a lot longer than expected. ICE data shows that the Dutch front-month contract, which is the benchmark price in Europe, increased 5.7%, to 50.09 Euro per megawatt hour at 0918 GMT. ICE data shows that the British April contract increased 6.03%, to 127.90 cents per therm.
Aramco requests dual loading nominations from buyers amid the Hormuz Crisis, sources claim
Multiple sources have confirmed that Saudi 'Aramco asked buyers to provide a crude loading plan for its main 'export terminal in Ras Tanura and Yanbu at the Red Sea for shipments scheduled for April, as the U.S. Iran conflict has disrupted exports out of the Middle East. The U.S. and Israeli war against Iran has largely stopped shipping through the Strait of Hormuz, disrupting the supply from the Gulf. This has forced regional producers, including Saudi Arabia, to adjust their export logistics and oil production.
Palm oil prices rise on the back of a weaker ringgit and Chicago soyoil price strength
Malaysian palm oil futures rose on Wednesday due to a softer ringgit and the stronger soyoils traded in Chicago. By midday, the benchmark palm oil contract for May delivery on the?Bursa Derivatives exchange had gained 32 ringgit or 0.72% to 4,460 Ringgit ($1,137.46). It had fallen to 4,395 earlier in the day. Analysts in Singapore said that palm oil futures were trading higher, primarily due to a weaker ringgit and some spillover strength coming from the oilseed complex.
Japan's weakness on energy is brought to the forefront as Middle East crisis worsens, says REI chair
The chair of the Renewable Energy Institute stated that Japan must do more to reduce their reliance on fossil fuels after the Middle East conflict escalated and halted the tanker traffic through the Strait of Hormuz. This highlighted Japan's vulnerability to?geopolitical risk. Japan imports 95% of its crude oils and 11% of liquefied gas through the Strait. About 70% of the latter and 6% of the former are shipped via the Strait. The closure of the channel has caused sharp increases in fuel prices.
The rate signal is muddied by the surge in India swap rates amid global turmoil
The surge in Indian overnight index swap (OIS), which is normally a key indicator of policy rate expectations, overstates the impact that 'the Iran War and higher oil costs will have on domestic monetary policies. India's OIS rates for one-year and two-year periods have risen by more than 45 basis point each since the outbreak of the?Israeli U.S. war with Iran on February 28. The benchmark 10-year bond yield, however, has only risen by 11 basis points up until Monday before reducing some of the rise.
Patterson-UTI, an oilfield services firm, says that higher oil prices won't spur more US production.
Andy Hendricks, CEO at?oilfield service company 'Patterson-UTI', stated on Tuesday that a surge in energy costs caused by the war between the United States and Israel with Iran would not lead to an increase in U.S. production of oil without the necessary market predictability. Since the end of Feburary, oil prices have been fluctuating wildly after Iran closed the Strait of Hormuz - a major trade route - forcing major Middle East producers to reduce production. U.S.
Iran War causes major disruptions in oil and gas
U.S. and Israeli war against Iran, and the attacks of Iran on Gulf neighbours has caused oil and natural gas production to stop in the Middle East. The Strait of Hormuz is the world's most important oil artery. It handles 20 percent of the global oil and LNG supplies. Saudi Aramco, world's largest oil exporter, warned on Tuesday of "catastrophic" consequences for the global oil market if the Strait does not open. Saudi Arabia's oil production has been cut only slightly…
S&P: Central Europe is more resilient to supply shocks in the face of Iran war
S&P Global reported?on Tuesday that Central and Eastern Europe is more resilient to energy?shocks as a result of efforts to diversify the sources of energy since Russia's invasion in?Ukraine 2022. This provides buffers against economic impacts of the war in the Middle East. S&P Global said?on Tuesday that the region's import-dependent financial markets have been shaken by U.S. and Israeli war against Iran. This has driven up energy prices…
Qatar is looking to strengthen its security partnership with the US following Iran's attacks
Qatar wants to strengthen its defense partnership with the United States after Iranian air strikes on Qatari territory, said the spokesperson for the Foreign Ministry on Tuesday. Qatar also sees the current deal as a deterrent. Iran launched drone and missile attacks on its oil producing Gulf neighbours following U.S./Israeli strikes which killed the top leaders of Iran. The conflict disrupted oil production in the region, sending oil prices soaring. Qatar is home to 'the largest U.S. military base in the Middle East.
G7 and EU discuss energy prices and strategic reserves
Officials said that the G7 energy minsters will discuss the soaring prices of energy due to the war in Iran during a Tuesday call. A group of European Union Leaders will also do the same later in the day. On Monday, oil?prices soared to $119 per barrel, their?highest level in nearly four years. This was due to fears that Gulf production would be cut and tanker exports disrupted. The European Union is worried about a possible repeat of the energy crises they experienced in 2022.
India's small-scale steelmakers are facing production cuts due to LNG shortages caused by the Iran war
Industry officials say that a number of small 'Indian steel' producers have warned of production cuts due to the Middle East conflict, which is disrupting gas supplies for the world’s second largest producer of the alloy behind China. Triveni Iron and Steel Industries, based in Gujarat, is the largest gas-consuming area of the country, and relies heavily on Middle East gas for a large portion of its supply. Gujarat is dependent on LNG imports for several small steel mills.
VEGOILS - Palm oil drops more than 3%, as crude and rival oils slump
Malaysian palm futures dropped more than 3% on Monday, following declines in rival edible oils traded in Dalian, Chicago and Dalian markets, as well as crude oil. This was a day after they had posted their largest jump in three-years. The benchmark May palm oil contract on Bursa Malaysia's Derivatives exchange fell 139 ringgit or 3.04% to $4,428 ringgit (1,129.59 USD) per metric ton after earlier falling to 4,370 ringgit. A Kuala…
Sources say that Bangladesh has secured diesel supplies amid major disruptions in energy supply
After the U.S. - Israel war 'on 'Iran, which disrupted shipments to garments and other industries, Bangladesh began receiving diesel from suppliers such as?China, India, officials said. The country has enough fuel for about a?month worth of demand. As the Middle East oil trade is severely disrupted by the war against Iran, South Asia, a nation of approximately 175 million people that relies heavily on imported energy, has implemented fuel rationing, restricted diesel sales, and closed its universities.