Archives for March 2019

Two South Korean refiners have canceled the delivery of US crude oil cargoes that were due to arrive in January and February this year, Bloomberg reported earlier this week. It cited unnamed sources from the industry as saying the refiners had been concerned about the quality of the crude. Quality could at some point become a bigger problem for US producers.

Also on rt.com Venezuela may divert US-bound oil to Russia China

It’s all because of the pipelines, Bloomberg’s Serene Cheong, Sharon Cho, and Alfred Cang write in an analysis of the issue. There is a massive pipeline network carrying crude oil from the US shale patch to the Gulf Coast ports where it is loaded on tankers and sent to Asia, with South Korea emerging as the biggest buyer of US crude so far this year.

Yet with so many pipelines—trunks and branches—the oil gets contaminated with various undesirable things, from oil residue to heavy metals, pipe cleaning agents, and a group of compounds called oxygenates. These last ones are particularly worrying for refiners, it seems.

US oil production booming as global emissions reaching record high – RT’s Boom Bust

Oxygenates, including ethanol, are added to gasoline during the production process in order to reduce carbon emissions and soot. However, they have no place with the crude oil yet to begin being processed at a refinery as they can have a negative effect on the quality of the fuel eventually. What’s more, some other contaminants can affect the refining equipment as well.

All this justifies the cancelation of the cargoes by SK Innovation and Hyundai Oilbank and highlights a potential problem whose solution is, to date, non-existent. The way to solve this problem would be to have a separate pipeline infrastructure for every type of oil produced in the shale patch but this is impossible at the moment. This is how oil is transferred to the field to the export terminal in the Middle East, and this makes its quality more stable, one analyst told Bloomberg’s reporters.

In the case of the canceled cargoes—both sold by BP—the oil came from one shale play, the Eagle Ford. The Eagle Ford is a lot closer to the Gulf Coast than North Dakota, home of the Bakken shale, and yet it got contaminated during its journey to the tanker. While absent in the Gulf of Mexico, where the pipeline infrastructure is more consistent than the network onshore, the problem could become serious and potentially undermine the competitiveness of US oil in a small and unfought for victory for Middle Eastern producers vying for a bigger market share in Asia.

Also on rt.com United States squabbles over new Iran sanction waivers

Yet one of these cargoes did get sold, to a Chinese independent refiner, Bloomberg’s sources said. Teapot refiners have different refinery configurations and their quality requirements are, apparently, not as strict, so even contaminated oil can find a home. Yet this would not solve the problem.

“Since the surge in US tight oil formation crude output, there have been persistent quality issues, particularly on consistency,” John Driscoll, chief strategist at JTD Energy Services told Bloomberg. “What does it mean for US exporters? They need to tighten up the specs or face pressure from buyers for further discounts.”

This article was originally published on Oilprice.com

Article source: https://www.rt.com/business/455137-us-oil-boom-problem/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“As for the cooperation on payment systems, a range of banks are already connected to CIPS, allowing to facilitate payments routing procedure,” Vladimir Shapovalov, who heads a division dealing with foreign regulators at the CBR’s international cooperation department, said earlier this week during the international Russian-Chinese forum.

Also on rt.com Russia’s alternative to SWIFT payment system poised to eclipse the original – MP

Meanwhile, the regulator hopes that Chinese counterparts pay more attention to Russia’s own SWIFT (Society for Worldwide Interbank Financial Telecommunication) alternative, SPFS (System for Transfer of Financial Messages), as it can further boost bilateral trade, the official added.

Russia is actively demonstrating the SPFS network, which was created in 2014 in response US threats of disconnecting Russia from SWIFT, to foreign partners, including China after its export version was finished late last year. The first system transaction involving a non-bank enterprise, was made by Russian oil major Rosneft in December 2017. Some 500 participants, with major Russian financial institutions and companies, have already joined.

Also on rt.com Yuan the Conqueror: Chinese currency poised to become global heavyweight, economists say

On Thursday, the CBR announced that the Russian alternative to SWIFT made “significant progress” as it already complies with international standards and foreign players can be integrated in it. Some foreign banks already joined the SPFS, according to the CBR deputy governor Ksenia Yudaeva.

SWIFT is an international payment network that allows information about financial transactions to be sent and received around the globe. Over 11,000 financial institutions in more than 200 countries are connected to the network.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/455121-russian-banks-chinese-swift/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The US State Department told foreign firms that the already existing restrictions on the South American nation are actually wider than on paper, the agency said on Thursday, citing three sources familiar with the matter. The demands reportedly covered any direct, indirect or barter oil trade with Caracas and those who refuse to comply with the demands may face sanctions themselves.

Also on rt.com Venezuela electricity crisis may ‘challenge’ global oil market – IEA

While some companies, including ones from European states, Russia and India, continue to deal with Caracas, an official said that the firms should be aware of “the possible risks they face by conducting business” with sanctions-hit Venezuelan state-run oil major PDVSA.

“This is how the United States operates these days. They have written rules, and then they call you to explain that there are also unwritten rules that they want you to follow,” Reuters cited one of its sources as saying.

Russia vows to defend its Venezuelan oil assets

The Trump administration slapped Venezuela’s oil industry with sanctions in January, as US-supported opposition leader Juan Guaido declared himself interim president. In particular, the US froze $7 billion of assets belonging to PDVSA and its US subsidiary Citgo.

The US now wants to cut supplies of gasoline and oil products used to dilute heavy Venezuelan crude to make it suitable for export. Diesel and jet fuel are exempted from the measures due to “humanitarian reasons,” according to a Reuters source.

The oil sector is crucial for Venezuela’s economy as it accounts for most of the country’s revenues. US sanctions have already taken a toll on the country’s crude oil and fuel exports. February crude shipments sank 40 percent to 920,000 barrels per day (bpd), according to data from PDVSA and Refinitiv Eikon.

Earlier this month, Venezuela’s oil minister and president of state-run oil company PDVSA, Manuel Quevedo, said that Caracas may divert oil originally bound for the US to Russia and China.

Quevedo is set to meet with Russian Energy Minister Alexander Novak next week. During the meeting, the ministers will discuss ways to increase Venezuelan oil exports to Russia among other issues, Novak told journalists on Friday.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/455068-us-foreign-firms-venezuela/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Recycling is “greatly under threat,” the Australian Council of Recycling has warned, pointing to the closure of Asian markets. Last December India imported 13 percent of Australia’s total waste exports.

Also on rt.com Global recycling crisis shows West can’t use poorer countries as dumping grounds

“We are back to where we started with the China crisis, but worse because we have fewer alternative markets,” the council’s chief executive Peter Shmigel said, as cited by the Sydney Morning Herald.

Nations across the globe have been suffering from waste build-up, after China stopped importing recyclable garbage last year. The country’s ban on imports of 24 types of solid waste materials has led to a severe recycling industry overload.

Statistics showed Australia’s waste exports to China declined by 41 percent in the last financial year. Meanwhile, overall waste exports by Australia increased by five percent since then.

via GIPHY

Despite other countries (including India, Indonesia, Vietnam and Malaysia) taking more of Australia’s recyclable rubbish there was hazardous stockpiling of recyclable material, while rubbish collectors scrambled to find alternative overseas markets.

Malaysia and Thailand have already announced a ban on plastic waste imports by 2021.

“If Malaysia, Vietnam and Thailand enacted waste import bans similar to China’s, Australia would need to find substitute domestic or export markets for approximately 1.29 million tons (or $530 million) of waste a year, based on 2017-18 export amounts,” an analysis of Australia’s waste exports, commissioned by the Department of the Environment and Energy, found.

Also on rt.com India stops waste plastic imports as China’s ‘recycled commodities’ ban triggers trash crisis in US

According to Australia’s Federal Environment Minister Melissa Price, the country’s officials had already met twice to draft “targets, actions and milestones” for a “national action plan” based on priorities such as reducing plastic pollution and increasing demand for recycled materials through procurement.The department was also consulting with the industry, she told the media.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/455060-australia-recycling-crisis-india/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“There was quite a strong movement in the developing countries’ markets yesterday, the ruble was in fact one of the least affected,” Bank of Russia First Deputy Governor Ksenia Yudaeva said on Thursday, as quoted by TASS. “However, the Russian market demonstrates the greatest calm compared to all others,” she added.

Also on rt.com Ruble flexes its muscle after Moody’s lifts Russia’s rating to investment grade

The official noted that events in Turkey may have affected investors, referring to the country’s recent currency volatility. The Turkish lira experienced another fall this week and the country’s main index of leading company shares, the Borsa Istanbul 100, dropped more than five percent.

Moscow stock exchange (MOEX) data shows that the Russian ruble lost 0.8 percent against the US dollar and 0.6 percent against the euro, while the national currencies of other developing nations plunged by up to five percent on Wednesday. For example, the Turkish lira slid around 5.3 percent.

Also on rt.com Let’s replace US dollar with Russian gold, Moscow exchange chief suggests

The ruble has been flexing its muscles since the beginning of this year. As the markets opened on Friday, the Russian currency was trading at 64.76 against the greenback, representing growth of more than three percent since January 1.

Meanwhile, the main Russian stock index, the ruble-denominated MOEX, has been rising since the beginning of the year. The index hit a new all-time high of 2,551.97 points on February 6, after setting several other records just days before.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/455046-ruble-most-stable-developing-nations/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The lawsuit was filed in Chicago federal court by the family of Jackson Musoni, a citizen of Rwanda. It alleges that Boeing, which manufactures the 737 MAX, had defectively designed the automated flight control system. It follows earlier suits against the US company over the October Indonesia crash.

“The subject accident occurred because, among other things, Boeing defectively designed a new flight control system for the Boeing 737 MAX 8 that automatically and erroneously pushes the aircraft’s nose down, and because Boeing failed to warn of the defect,” the complaint said.

Also on rt.com Ethiopian Airlines Boeing 737 MAX 8 crash: Questions that remain unanswered

Steven Marks, the lawyer who filed the complaint, has criticized the certification process for the 737 Max 8, saying it amounted to an “amendment” of a 50-year-old model rather than a more rigorous approval process for a “new aircraft.”

“Boeing and the FAA knew about the dangers and they failed to ground the fleet,” said Marks, who also is suing over the Lion Air crash which happened in Indonesia. He said the similarities between the two accidents are “very clear.”

Boeing said it could not comment on the lawsuit. According to the company’s spokesperson, who was cited by the Guardian, it “… is working with the authorities to evaluate new information as it becomes available.” All inquiries about the ongoing accident investigation must be directed to the investigating authorities, the spokesperson said.

Also on rt.com Airlines lining up for Boeing compensation over grounded jets

The US aerospace giant is under intense scrutiny after two crashes, less than six months apart, killed 346 people. It is facing a criminal probe and questions from lawmakers over whether it has too cozy a relationship with its US regulator, the Federal Aviation Administration.

The company will have to make substantial payouts to the families of passengers if it’s found responsible for both the Indonesia and Ethiopia crashes. Experts say the second accident could prove even more damaging for the company because plaintiffs will argue the manufacturer was put on notice by the earlier tragedy.

Also on rt.com Boeing’s latest crashes pose serious risk to global AI development – analysts

The world’s biggest aircraft manufacturer Boeing lost billions of dollars in market value in the days after the Ethiopia crash as regulators grounded all MAX 8s across the globe.

The company is now preparing to submit final paperwork to US regulators for a software upgrade to an anti-stall countermeasure on the 737 MAX which investigators said, in a preliminary report, repeatedly pushed the nose down on the MAX operated by Lion Air.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/455044-boeing-sued-ethiopian-crash/?utm_source=rss&utm_medium=rss&utm_campaign=RSS