Category Archives: Commodities

More than 130 grain ships stuck in Black Sea as talks start in Istanbul

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Negotiators from Russia, Ukraine, the UN and Turkey seek deal to enable exports to pass on to the Danube

A traffic jam of more than 130 cargo ships loaded with Ukrainian grain is waiting in the Black Sea to pass into the Danube as negotiators from Moscow, Kyiv, the UN and Turkey hailed progress at talks in Istanbul on easing Ukrainian agricultural exports.

The ships are waiting to access exit routes through the Sulina and Bystre estuary canals to reach a series of ports and terminals in Romania from where the grain can be transported on around the world, amid mounting global concern about the Russian blockade on Ukrainian exports through the Black Sea.

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Germany braces for ‘nightmare’ of Russia turning off gas for good

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Ministers fear flow may never restart as annual maintenance work soon begins on Nord Stream 1 pipeline

Germany is bracing itself for a potentially permanent halt to the flow of Russian gas from Monday when maintenance work begins on the Nord Stream 1 pipeline that brings the fuel to Europe’s largest economy via the Baltic Sea.

The work on the 759-mile (1,220km) pipeline is an annual event and requires the gas taps to be closed for 10 to 14 days. But never before in the pipeline’s decade-long history has Germany seriously been asking whether the flow will begin again.

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Norway halts strike that threatened gas supplies to Britain

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Norwegian government intervenes in pay row because of ‘great social consequences for whole of Europe’

The Norwegian government has stepped in to end a strike that had threatened supplies of gas to Britain.

The labour dispute had shut down oil and gasfields and was expected to cut Norway’s gas supplies by almost 60% by the weekend.

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Zimbabwe to introduce gold coins as local currency tumbles

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Soaring inflation piling pressure on country already struggling with shortages and stirring memories of Mugabe chaos

Zimbabwe will start issuing gold coins as legal tender in late July, its central bank has said, as the country battles to control runaway inflation that has considerably weakened the local currency.

The inflation rate more than doubled last month to 191%, stoking memories of the hyperinflation of the 2000s that saw the Zimbabwean dollar redenominated three times before being effectively abandoned in 2009.

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The Nigerian gas deal, the Irish impresario and the £8bn ruling amid claims of bribery

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Officials allege contract was corruptly procured by business duo behind P&ID as saga of energy project and secretive tribunal heads for high court

It has been described as one of the most extraordinary cases ever to come before the high court, involving an Irish impresario, an alleged $50,000 bribe stuffed into a bag and potentially one of the biggest payouts in legal history.

The saga of two Irish businessmen, Michael Quinn and Brendan Cahill, who promised to revolutionise Nigeria’s energy sector, will be at the centre of a high court trial early next year.

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Environmentalists condemn Biden administration’s offshore drilling plan

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Policy would ban new ocean drilling but allow up to 11 lease sales in Gulf of Mexico and Alaska’s south coast

Joe Biden’s administration on Friday unveiled a five-year offshore oil and gas drilling development plan that blocks all new drilling in the Atlantic and Pacific Oceans within US territorial waters while allowing some lease sales in the Gulf of Mexico and Alaska’s south coast.

The plan, which has not been finalized, could allow up to 11 lease sales but gives the interior department the right to make none. It comes two days after the US supreme court curbed the power of the Environmental Protection Agency to respond to the climate crisis.

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Sri Lanka suspends fuel sales for two weeks as economic crisis worsens

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Ban on sales to everything except essential services comes as nation tries to conserve fuel supplies that are barely enough to last a single day

Cash-strapped Sri Lanka has announced a two-week halt to all fuel sales except for essential services and called for a partial shutdown as its unprecedented economic crisis deepened.

The south Asian nation is facing its worst economic meltdown since gaining independence from Britain in 1948, and has been unable to finance even the imports of essentials since late last year.

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Concerns that India is ‘back door’ into Europe for Russian oil

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Volume of Russian crude bought and then exported by India suggests some of it may end up in European petrol stations

The huge blue and red hull of the SCF Primorye came into port at Vadinar, western Gujarat, India, earlier this month. The 84,000-tonne oil tanker, built in 2009 and sailing under the Liberian flag, had arrived from the port at Ust-Luga, a settlement in Russia near the border with Estonia.

Until 2017, the Vadinar oil refinery was controlled by Essar – the Indian owner of the Stanlow refinery in Ellesmere Port. Since then a consortium including the sanctioned Russian state-owned oil firm Rosneft and the commodities trader Trafigura, which holds a 24.5% stake, have owned Nayara Energy, which runs the refinery.

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German gas prices could triple as Russia reduces supply, expert says

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Fears consumers may have to pay up to three times as much after Nord Stream 1 pipeline flow cut by 40%

German consumers could face a tripling of gas prices in the coming months after Russia’s throttling of deliveries to Europe, a senior energy official has said.

Moscow reduced the flow of gas through the Nord Stream 1 pipeline by 40% last week, citing technical reasons that Berlin dismisses as a pretext, prompting a four to six-fold rise in market prices, said the head of Germany’s federal network agency, Klaus Müller.

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Russia becomes China’s top oil supplier amid Ukraine war sanctions

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Chinese refiners cash in on heavily discounted Russian oil supplies, boosting imports by 55%

China’s crude oil imports from Russia soared by 55% from a year earlier to a record level in May, displacing Saudi Arabia as the top supplier, as refiners cashed in on discounted supplies amid sanctions on Moscow over its invasion of Ukraine.

Imports of Russian oil, including supplies pumped via the east Siberia Pacific pipeline and seaborne shipments, totalled nearly 8.42m tonnes, according to data on Monday from the Chinese general administration of customs.

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France and Turkey propose rival plans to get grain out of Ukraine

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Macron favours land routes to Romania from Odesa whereas Ankara wants to use shipping lanes through Black Sea

Rival plans to export Ukraine’s vitally needed grain have been drawn up by France and Turkey, as concern grows over the potential impact on the world’s poorest people of failures so far to get the grain out of the country.

The Italian prime minister, Mario Draghi, said it was vital a timeline to release the grain is prepared by the time the G7 summit starts next weekend. “A series of deadlines are fast approaching and the drama of a world famine naturally concentrated in the poorest parts of the world, especially Africa, is approaching,” he said following talks with the Ukrainian president, Volodymyr Zelenskiy, on Thursday.

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British Gas owner signs deal with Norway firm for extra UK supplies

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Centrica says Equinor will deliver enough gas for next three years to heat 4.5m extra homes

The British Gas owner, Centrica, has signed a major supply deal with the Norwegian state oil company, Equinor, as ministers scramble to secure domestic energy supplies.

Equinor has agreed to deliver an additional 1bn cubic metres of gas supplies to the company for each of the next three years, enough to heat an additional 4.5m UK homes.

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US announces plan to build silos on Ukraine border to export grain

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Joe Biden working with European governments to avert global crisis and help lower food prices

Temporary silos will be built along the Ukraine border, including in Poland, in an attempt to help export more grain from the country and avert a global food crisis, Joe Biden has announced.

The US president told a Philadelphia union convention on Tuesday that he was working with European governments on the plan “to help bring down food prices”.

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Africa must forgo gas exploration to avert climate disaster, warn experts

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Call comes after former UN climate envoy urged African countries to exploit their natural gas reserves

Africa must embrace renewable energy, and forgo exploration of its potentially lucrative gas deposits to stave off climate disaster and bring access to clean energy to the hundreds of millions who lack it, leading experts on the continent have said.

Their call came as the UN secretary general, António Guterres, warned that exploring for gas and oil anywhere in the world would be “delusional”.

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UK ramps up gas and oil exports to EU amid Russia’s war in Ukraine

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Britain’s goods exports to EU a record £16.4bn in April despite impact of Brexit

The UK has drastically increased the volume of natural gas being pumped to the EU amid Russia’s war in Ukraine, powering a record monthly rise in goods exports to the continent despite Brexit.

Figures from the Office for National Statistics show EU goods exports rose for the third consecutive month to £16.4bn in April, the highest monthly level in current prices since comparable records began in 1997.

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Russia cuts gas supplies to Netherlands and firms in Denmark and Germany

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Gazprom raises stakes in sanctions war after EU move to embargo most Russian oil imports and companies miss deadline to pay in roubles

Russia has further cut off gas supplies to Europe, after state energy giant Gazprom turned off the taps to a top Dutch trader and halted flows to some companies in Denmark and Germany.

The intensification of the economic battle on Tuesday over Russia’s invasion of Ukraine follows the EU’s overnight decision to place an embargo on most Russian oil imports as part of its financial sanctions against the Kremlin.

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Could a cartel of large energy consumers cut oil and gas prices?

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Italy’s PM Mario Draghi suggests big consumers club together to limit how much is paid and raises idea of EU gas price cap

Energy prices are skyrocketing as the world confronts the economic ramifications of Russia’s invasion of Ukraine, supply chain bottlenecks and the lingering effects of Covid-19 lockdowns. But Italy’s prime minister, Mario Draghi, has a plan.

The celebrated former European Central Bank president recently broached the idea of creating a “cartel” of oil consumers at a meeting with Joe Biden. Just as the biggest oil-producing nations club together through Opec to agree annual oil production quotas, Draghi has suggested big energy consumers join forces to increase their bargaining power.

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Consultant who ditched Shell: ‘take a look at yourselves in the mirror’

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Caroline Dennett says she has been flooded with support after decision that has cost ‘around 60%-70% of my business’

Caroline Dennett’s eye was caught by a placard with two stark words: “insiders wanted”. The safety consultant was watching a video of Extinction Rebellion climate protesters who had glued themselves inside Shell’s headquarters in April and were encouraging employees to jump ship to aid its cause.

This week Dennett, who runs the independent agency Clout, released a bombshell video severing ties with Shell after an 11-year business relationship. She emailed 1,400 Shell employees and accused the £177bn behemoth of causing “extreme harms” to the environment and having a “disregard for climate change risks”.

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EU plans ‘massive’ increase in green energy to help end reliance on Russia

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European Commission says extra €210bn needed over next five years to pay for phasing out of Russian fossil fuels

The EU plans a “massive” increase in solar and wind power, and a short-term boost for coal, to end its reliance on Russian oil and gas as fast as possible.

In a plan outlined on Wednesday, the European Commission said the EU needed to find an extra €210bn (£178bn) over the next five years to pay for phasing out Russian fossil fuels and speeding up the switch to green energy.

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Ukraine farming group calls for urgent end to ports blockade

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Group warns of ‘cascade of export bans’ amid failure to ease grain bottlenecks fuelling shortages and inflation, MHP said

One of Ukraine’s largest farming groups has called for an urgent solution to unblock the country’s Black Sea ports as exports of grain, sunflower and rapeseed are being held up by the Russian naval blockade, driving inflation and shortages around the world.

G7 ministers have held urgent talks about trying to open routes through Romanian and Baltic ports, potentially fed with an army of 10,000 trucks making a five-day trip from Ukraine.

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