2025-08-21 12:35
Minister says water loss is accelerating Oil volumes fall at Azerbaijan's Dubendi terminal Baku port steps up dredging to maintain tanker access Seals and sturgeon under threat BAKU, Aug 21 (Reuters) - Rapid falls in the level of the Caspian Sea are affecting ports and oil shipments and threatening to inflict catastrophic damage on sturgeon and seal populations, according to Azerbaijani officials. The Caspian, the world's largest salt lake, holds significant offshore oil reserves and is bordered by five countries that are all major producers of oil or gas or both: Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan. Sign up here. Azerbaijan's Deputy Ecology Minister Rauf Hajiyev told Reuters that the sea had been getting shallower for decades, but figures showed that the trend was accelerating. Its level has fallen by 0.93 metres (3 ft) in the past five years, by 1.5 metres in the last 10, and 2.5 metres in the past 30, he said in an interview, estimating the current rate of decline at 20-30 cm per year. "The retreat of the coastline changes natural conditions, disrupts economic activity and creates new challenges for sustainable development," said Hajiyev, who represents Azerbaijan in a joint working group with Russia that met for the first time in April to discuss the problem. Despite worsening relations between the two countries, according to the protocol signed between the two countries the working group plans to approve a joint programme online in September for monitoring and responding to the issue. Russia links the problem mainly to climate change but Azerbaijan also blames , opens new tab Russia's construction of dams on the Volga River which provides 80% of the water entering the Caspian. Hajiyev said the falling water level was already affecting the lives of coastal populations and the work of ports. About 4 million people live on the coast of Azerbaijan, and about 15 million in the Caspian region as a whole. He said ships are facing increased difficulties when entering and manoeuvring in the port of Baku, Azerbaijan's capital. This is reducing cargo capacity and raising logistics costs, he added. REDUCED OIL CARGOES Transportation of oil and oil products through the Dubendi oil terminal, the largest in the Azerbaijani waters of the Caspian Sea, fell to 810,000 tons in the first half of 2025 from 880,000 in the same period of last year, according to Eldar Salakhov, director of the Baku International Sea Port. He linked the decline to the falling water level, which he said was making it necessary to carry out major dredging work to ensure stable and uninterrupted port operations. In 2024, more than 250,000 cubic meters of dredging were carried out at the Dubendi oil terminal to ensure that the largest tankers could enter without restrictions, he told Reuters. In April, the Baku Shipyard finished building a new dredging vessel, the Engineer Soltan Kazimov, which is due to enter service shortly. Salakhov said it would be able to deepen the bottom to 18 metres in order to help maintain the port's capacity. THREAT TO FISH AND SEALS Hajiyev, the deputy minister, said the retreat of the waters was destroying wetlands, lagoons, and reed beds and threatening the survival of some marine species. The biggest blow is to sturgeon, prized for their caviar, which are already under threat of extinction. They are losing up to 45% of their summer and autumn habitats and being cut off from their traditional spawning grounds in rivers. Caspian seals are also threatened by the shrinking sea area and disappearance of seasonal ice fields in the north, where they breed, he added. "With a 5-metre drop in the sea level, seals lose up to 81% of their breeding sites, and with a 10-metre drop, they are almost completely deprived of suitable sites," Hajiyev said. https://www.reuters.com/sustainability/climate-energy/azerbaijan-sounds-alarm-over-shallowing-caspian-sea-2025-08-21/
2025-08-21 12:25
Brent, WTI rise for a second session US crude, gasoline stocks fall, lifting demand outlook Focus on talks for Ukraine peace deal LONDON, Aug 21 (Reuters) - Oil prices rose on Thursday, bolstered by signs of strong demand in the United States, with uncertainty over efforts to end the war in Ukraine also lending support. Brent crude futures were close to a two-week high and up 43 cents, or around 0.6%, at $67.27 a barrel at 1203 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 45 cents, or 0.7%, at $63.16 a barrel. Sign up here. Both contracts climbed over 1% in the prior session. Russia said on Wednesday that attempts to resolve security issues relating to Ukraine over the war without Moscow's participation were a "road to nowhere". "If the White House's efforts do result in a halt to hostilities in Ukraine, and Russia gradually coming back into the international fold, it will be bearish for the crude market," said independent analyst Gaurav Sharma. "But for now the Brent price floor to watch out for remains at $65 a barrel." U.S. President Donald Trump has announced an additional tariff of 25% on Indian goods from August 27 because of India's Russian crude purchases, which make up nearly 35% of its overall oil imports. Russian embassy officials in New Delhi said on Wednesday that Moscow expects to continue supplying oil to India despite U.S. warnings. Given uncertainty over progress towards ending the war, the possibility of tighter sanctions on Russia has resurfaced, which has led to bullish sentiment among traders, said Tamas Varga, an analyst at PVM Oil Associates. Meanwhile, U.S. crude inventories fell by 6 million barrels last week to 420.7 million barrels, the U.S. Energy Information Administration said on Wednesday, against expectations in a Reuters poll for a 1.8 million-barrel draw. While the large draw indicates increased demand, the rise in crude levels at Cushing suggests underlying demand may be softer and that the draw was higher in part due to higher refinery runs and increased exports, Panmure Liberum's Ashley Kelty said. Investors were also waiting for policy cues that would signal an interest rate cut in September from the Federal Reserve's Jackson Hole symposium that begins on Thursday. Chair Jerome Powell is scheduled to speak on Friday at 10 a.m. ET (1400 GMT). https://www.reuters.com/business/energy/oil-rises-signs-strong-demand-russia-ukraine-peace-uncertainty-2025-08-21/
2025-08-21 12:20
H1 2025 net income the lowest interim profit since 2020 Oil and gas output up 2%, crude throughput fell 5.3% Sales of diesel, gasoline, jet fuel, chemical products all fell Expects higher H2 crude throughput and ethylene production Aug 21 (Reuters) - China's Sinopec (600028.SS) , opens new tab, reported a 39.8% drop in interim net profit due to lower oil prices, weaker fuel demand and as industry overcapacity weighs on margins at its chemicals business. Sinopec, the world's largest oil refiner by capacity, reported on Thursday a net income of 21.48 billion yuan ($2.99 billion) for January to June, the lowest interim profit since 2020. Sign up here. Its oil and gas output rose 2% year-on-year to 262.81 million barrels of oil equivalent, with gas up 5.1% to 736.3 billion cubic feet and crude oil output down 0.3% to 140 million barrels. Sales of diesel, gasoline and aviation fuel dropped 6.7%, 4.9% and 8.3% year-on-year, respectively, reflecting the rise of electric vehicles and also cheaper natural gas replacing diesel. "In the first half of 2025, global crude oil prices fluctuated lower, domestic gasoline and diesel demand was declining and chemicals margins remained thin," Sinopec said. Sinopec projects crude throughput for July-December at 130 million metric tons, or about 5.16 million barrels per day. That compared with the first-half's 119.97 million tons or 4.84 million bpd. Output of ethylene, a key building block for petrochemicals, rose 16.4% to 7.56 million tons in the first half, and the company sees production of 7.85 million tons in the second half. While forecasting demand growth in natural gas and chemical products in the second half, Sinopec expects Chinese refined fuel demand to remain under pressure from "alternative energy sources". Sinopec's Hong Kong-listed shares closed up 1.8% at HK$4.49. They have risen 0.9% year-to-date, while the benchmark Hang Seng Index has climbed 25.15% over the same period. ($1 = 7.1781 Chinese yuan renminbi) (metric ton = 7.3 barrels for crude oil conversion) https://www.reuters.com/sustainability/climate-energy/sinopec-interim-profit-lowest-five-years-weaker-fuel-demand-2025-08-21/
2025-08-21 12:20
US to levy 15% tariff on most EU products US to lower car tariffs once EU introduces legislation to cut tariffs on US goods EU will seek to secure retroactive car tariff reduction Tariff relief could come in weeks, US official says WASHINGTON/BRUSSELS, Aug 21 (Reuters) - The European Union will strive to ensure lower U.S. tariffs apply to its car exports retroactively, EU trade chief Maros Sefcovic said on Thursday, as the transatlantic partners set out details of their framework trade deal struck in July. In a 3-1/2-page joint statement, the two sides spelled out that 15% U.S. tariffs would apply to most EU imports and listed the commitments made, including the EU's pledge to eliminate tariffs on U.S. industrial goods and to give preferential market access for a wide range of U.S. seafood and agricultural goods. Sign up here. Washington will take steps to reduce the current 27.5% U.S. tariffs on cars and car parts, a huge burden for European carmakers, once Brussels introduces the legislation needed to enact promised tariff cuts on U.S. goods, it said. The statement said U.S. tariff relief on autos and auto parts would kick in on the first day of the month in which the EU introduced the legislation. Sefcovic said it was the European Commission's "firm intention" to make proposals by the end of the month, meaning the U.S. car tariff reduction would apply from August 1. A senior administration official, speaking on condition of anonymity because they were not authorized to speak publicly, said European carmakers could see relief from the current U.S. tariffs within "hopefully weeks." "As soon as they're able to introduce that legislation -- and I don't mean pass it and fully implement it, but really introduce it -- then we will be in a position to provide that relief. And I will say that both sides are very interested in moving quickly," they said. U.S. President Donald Trump and European Commission President Ursula von der Leyen announced the deal on July 27 at Trump's luxury golf course in Turnberry, Scotland after months of negotiations. The two leaders met again this week as part of negotiations aimed at ending Russia's war in Ukraine, with both lauding their trade framework deal as an historic accomplishment. The joint statement said the deal could be expanded over time to cover additional areas and further improve market access. The joint statement was "a play to hold each other accountable" and ensure that both sides carried out the pledges announced last month, the official said. The joint statement noted that the U.S. agreed to apply only pre-existing Most Favored Nation (MFN) tariffs of below 15% from September 1 on EU aircraft and parts, generic pharmaceuticals and ingredients, chemical precursors and unavailable natural resources, including cork. This exemption did apply to include wine or spirits, a key EU demand, but the two sides agreed to consider other sectors and products for inclusions. "So these doors are not closed forever," Sefcovic said, while acknowledging that securing an exemption for alcoholic drinks would not be easy. The statement reiterated the EU's intention to procure $750 billion in U.S. liquefied natural gas (LNG), oil and nuclear energy products, plus an additional $40 billion of U.S.-made artificial intelligence chips. It also repeated the intention for EU companies to invest an additional $600 billion across U.S. strategic sectors through 2028. Both sides committed to address "unjustified digital trade barriers," the statement said, and the EU agreed not to adopt network usage fees. They also agreed to negotiate rules of origin to ensure that the agreement's benefits accrued predominantly to both trading partners. In addition, they said they would consider cooperation to ring-fence their respective steel and aluminum markets from overcapacity, while ensuring secure supply chains between each other, including through tariff quotas. https://www.reuters.com/business/autos-transportation/eu-pushes-secure-lower-us-car-tariff-aug-1-2025-08-21/
2025-08-21 11:54
All eyes on Powell's speech at Jackson Hole on Friday Odds of Fed rate cut next month at 79% Trump's Fed attacks chip away at investor confidence US, EU lock in trade deal with 15% levy on European exports SINGAPORE, Aug 21 (Reuters) - The U.S. dollar drifted on Thursday as investors awaited policy cues from the Federal Reserve's Jackson Hole symposium while keeping an eye on renewed concerns over central bank independence after President Donald Trump's latest salvo. Currencies showed a muted reaction to the announcement that the United States and the European Union locked in a framework trade deal reached last month that includes a 15% U.S. tariff on most EU imports. Sign up here. The euro and sterling were flat at $1.1649 and $1.3460, respectively. The Japanese yen declined 0.3% to 147.85 while the Swiss franc nursed modest losses as well. Odds of a rate cut by the Fed next month eased slightly to 79%, offering mild support to the dollar as focus remained on whether Fed Chair Jerome Powell will push back against market expectations for a September cut when he speaks on Friday. There would likely be a greater reaction if Powell were to indicate the Fed could keep rates steady again, than if he leans in the direction of a cut, said Kenneth Broux, head of corporate research for FX and rates at Societe Generale. "The risks are asymmetric. Because it (a cut) is already priced in, the risk is that we go back to 50-50," said Kenneth Broux, head of corporate research for FX and rates at Societe Generale. The reaction to that would be a sell-off in near-tenor U.S. treasuries and a firmer dollar, Broux said. President Trump's call for Fed Governor Lisa Cook to resign on the basis of allegations made by one of his political allies has meanwhile revived investor concerns over his efforts to gain influence over the central bank. Trump has also repeatedly criticised Powell for being too slow to cut rates. Investors expect Trump will replace Powell, whose term ends in May, with a more dovish appointment. "Trump’s desire for lower rates, even if not justified by the Fed’s dual mandate, poses upside risks to the US inflation outlook and could trigger a loss of confidence in the US dollar and long-term US Treasuries if implemented," Lee Hardman, senior currency analyst at MUFG, said in a note. Earlier this month, Trump also said he would nominate Council of Economic Advisers Chairman Stephen Miran to serve out the final few months of a vacant Fed seat after Adriana Kugler unexpectedly resigned. The dollar index , which measures the U.S. currency against six other peers, was flat at 98.337 and on course for a 0.4% rise this week. The benchmark U.S. 10-year yield was a touch higher at 4.30%, while the two-year yield, which is more sensitive to the monetary policy, ticked up slightly to 3.756% . Some analysts cautioned that markets could end up being disappointed by Powell's speech on Friday, noting that the impact of Trump's tariffs on inflation remains unclear. Elsewhere, the Norwegian krone rose 0.6% each against the dollar and the euro , after data showed that Norway's mainland economy grew at a faster pace than economists had expected in the second quarter. First quarter growth was also revised up. Bearish bets on China's yuan, meanwhile, hit their highest since mid-May, with analysts turning short spurred by mounting concerns over the economy, a Reuters poll showed on Thursday. In cryptocurrencies, bitcoin was down 0.8% at $113,527 while ether fell 1.3% to $4,303.89. https://www.reuters.com/world/middle-east/dollar-drifts-investors-ponder-fed-independence-await-jackson-hole-2025-08-21/
2025-08-21 11:39
MOSCOW, Aug 21 (Reuters) - Russia and India have achieved good results in energy cooperation and Moscow is interested in working on joint energy projects with New Delhi, Russian Foreign Minister Sergei Lavrov told his Indian counterpart in Moscow on Thursday. Moscow and New Delhi have talked up their "strategic partnership" since U.S. President Donald Trump announced higher tariffs on imports from India earlier this month because of its purchases of Russian oil. Sign up here. "We have good results in cooperation in the hydrocarbon sector, in the supply of Russian oil to the Indian market. And we have a mutual interest in implementing joint projects for the extraction of energy resources, including in the Russian Federation - in the Far East and on the Arctic shelf," Lavrov said. He was talking at a joint news conference with Indian Foreign Minister Subrahmanyam Jaishankar in Moscow. Russia was able to divert its exports of oil, a significant source of state revenue, away from Europe and mainly to China and India after the West imposed sanctions on Moscow over its conflict in Ukraine. India and China are the biggest buyers of Russia's oil. Russian embassy officials in New Delhi said on Wednesday that Russia expected to continue supplying oil to India despite pressure from the United States, adding that Moscow hoped trilateral talks with India and China would soon take place. https://www.reuters.com/business/energy/russia-is-interested-joint-energy-projects-with-india-lavrov-says-2025-08-21/
