India never halts buying Iran oil - Mr Reddy

Sunday, 04 Mar 2012

Tehran Times cited Mr S Jaipal Reddy oil minister of India as saying that government is not facing any external pressure on buying crude oil from Iran and will abide by UN sanctions only not those imposed by any bloc of nations.

Mr Reddy said that rejecting US and European sanctions against Iran we respect UN sanctions but will not honor any other sanction. We have cordial relations with Iran and we continue to import oil from them.

US have imposed sanctions that deny access to the US financial system to any foreign bank that conducts business with the central bank of Iran. Besides, European Union has agreed to ban oil imports from Iran starting July 1st 2012 as part of measures to ratchet up the pressure on the Persian Gulf nation's nuclear program.

Mr Reddy rejected US President Mr Barack Obama's statement that demand in China and India was responsible for spiraling international oil prices and said that India's per capita consumption at 442 kilogram of oil equivalent was much lower than world average of 1,715 kilogram. Geo political reasons are to be blamed for spike in global oil prices.

He said that India is currently world's fourth largest consumer of energy accounting for 4.4% of world's annual energy consumption. USA, China and Russian federation are the top 3 energy consumers. Almost 40% of the primary energy consumption is by USA and China.

Mr Reddy said that the energy sector has witnessed major volatility in crude oil prices, scarcity of services and economic meltdown globally in the past few years. Global demand for energy is oscillating in tandem with the economic condition of the world. Economics in the energy sector is also being affected by the dynamics in global political scenario and economic sanctions regime leaving an adverse impact on the demand supply situation.

India is one of the fastest growing economies in the world. Currently, the domestic energy supplies are limited and the import dependence is as high as 80% for crude oil and 25% in case of natural gas. The situation may not change much in the 12th Plan period as the demand for oil and gas is increasing. The share of oil and gas in Indian energy basket is about 40%.

He said that with the projected demand and supply gap, it is imperative for US to enhance energy security for the country for which intense efforts in exploration activities in India as well as abroad are being made.

(Sourced from Tehrantimes.com

Euro coal prices move up slightly with strong oil - Report

Wednesday, 29 Feb 2012

Reuters reported that prompt physical coal prices rose by around 50 cents in line with oil's gains but aside from a few Calendar 2013 trades, activity was muted.

Oil hit USD 123 a barrel, a 9 month high, as Iran related tensions and supply risks overshadowed weak economic data from Europe and China.

One European trader said that "There's still far too much coal, in Europe especially and this rise in prices can't be justified by fundamentals, which are weak."

Another trader said that "I was cautiously optimistic at the start of the year that prices would steady and start recovering in a few months but everybody is offering US coal into everywhere possible."

China's import statistics for January 2012 showed a fall of 8% from December 2011 level.

On an annual basis, China's coal imports rose nearly 4% and hit a record 22.14 million tonnes in November 2011. South African imports alone in Q4 were also at record levels for each month.

But since the government imposed a price ceiling of USD 130 a tonne on coal prices, domestic prices dropped sharply and fresh import buying started to tail off.

US and Colombian coal has continued to be shipped in large quantity to ARA although utilities and traders are trying to re sell into Asia as far as possible because European stockpiles are close to full. Colombian coal is being sold into tenders in South Korea, US coal is being offered to China, India and southern Europe.

An April 2012 South African cargo was bid and offered at USD 106.00 but the counterparties cannot trade with each other. An April 2012 DES cargo was bid at USD 97.50 and offered at USD 100.50, up around 50 cents.

A May 2012 DES ARA multi origin cargo was bid at USD 98.25 and offered at USD 103.00, also up around 50 cents.

(Sourced from www.reuters.com)

India charters new tanker to ship more Iranian crude

Tuesday, 28 Feb 2012

Press TV reported that India’s largest refiner has chartered a tanker to enable the South Asian country to import more crude oil from the Islamic Republic.

The Indian Oil Company has booked the Mykonos Warrior, currently sailing in the Indian Ocean to ship more than 130,000 tonnes of Iranian crude to Mundra on India’s west coast in March. The Liberia flagged vessel is reportedly expected to arrive in Iran’s Kharg Island on March 9th 2012.

India purchases around USD 12 billion worth of Iranian crude every year about 12% of its total consumption. In January, Iranian crude exports to India rose to 550,000 barrels a day up 37.5% from December 2011.

New Delhi’s growing interest in expanding its trade ties with Tehran comes as the Western powers recently adopted fresh sanctions against Iran's oil and financial sectors and have ever since sought to pressure other countries to follow suit.

On December 31st 2011, The United States imposed new sanctions against the Islamic Republic aimed at preventing other countries from importing Iran’s oil and doing transactions with its Central Bank.

European Union foreign ministers also approved sanctions against Iran’s oil and financial sectors on January 23rd 2012 including a ban on Iranian oil imports, a freeze on the assets of the country’s Central Bank within EU states and a ban on selling diamonds, gold and other precious metals to Tehran.

Many observers believe that India will press on with its plan to increase trade ties with the Islamic Republic despite the fresh Western sanctions.

(Sourced from Press TV)

India increases Iran oil imports

Monday, 13 February 2012

Iran's crude oil exports to India have increased 37.5% in January. India has increased oil imports from Iran to become the Islamic Republic's largest customer last month, ignoring recent sanctions imposed by US and EU on importing Iran’s oil. According to The Wall Street Journal Iranian crude exports to India rose to 550,000 barrels a day in January, up 37.5 percent from December 2011.

The development, the report said, has partly offset a 50 percent cut in crude exports to China as a result of pricing dispute. China now imports around 250,000 barrels a day from Iran. The news comes despite the West’s rising pressure on Iran to halt its peaceful nuclear program.On the New Year’s Eve, the United States imposed new sanctions against Iran aimed at preventing other countries from importing Iran’s oil and doing transactions with its central bank.

European Union foreign ministers also approved sanctions against Iran’s oil and financial sectors on January 23, including a ban on Iranian oil imports, a freeze on the assets of the country’s Central Bank within EU states, and a ban on selling diamonds, gold, and other precious metals to Tehran.Although financial sanctions have caused problems with regard to payment for Iran’s oil by other countries, they have apparently not been able to deter India.

Iran's Ambassador to India Seyyed Mehdi Nabizadeh said last Tuesday that India had agreed to pay for some purchases of Iranian oil in Indian rupees, a route that would avoid the risk of an interruption in banking transfers. Meanwhile, despite a pledge to find alternative supply sources for Iran’s oil, South Africa has also increased its Iranian oil imports to 100,000 barrels a day, The Wall Street Journal quoted an unnamed informed source as saying.

The US, Israel and their European allies accuse Iran of diversion in its peaceful nuclear program and have used this as an excuse to pass four rounds of international sanctions against the country at the UN Security Council. Refuting the claims, Tehran insists that as a member to the International Atomic Energy Agency and the Nuclear Non-Proliferation Treaty (NPT), it is fully entitled to peaceful applications of the nuclear energy.
Source: Press TV

Italians raise questions about military operation against Libya

Wed Mar23, 2011 10:40:29

ROME, March 23 (Xinhua) -- Some Italian pollsters Tuesday expressed their doubts and worries over the ongoing Western-led military operation against Libya, only 250 km off Italy's southernmost coast.

They believed the main reason behind some Italians' opposition to the operation was that it was launched for the West's oil and natural gas interests in Libya instead of humanitarian purposes, according to a poll by the Italian polling firm Opinioni.

Italian energy statistics show around 30 percent of Italy's energy needs are met by oil and gas from Libya.

Maria Rossi, co-director of Opinioni, said "most of those against the operation said they feared the humanitarian reasons are a kind of cover-up."

Italians are also worried that if the operation dragged on too long, it could spark a massive exodus of Libyans, many of whom would end up on Italian shores.

This concern was echoed by Italians who spoke to Xinhua about their views of the escalating crisis in Libya.

Raffaella Pontarelli, a 30-year-old theater actress originally from Naples, said she was suspicious of Italy's involvement.

"I think Italy is getting involved for wrong reasons. I think the government just wants to make sure they can continue to have access to the oil and gas they need."

Despite some Italians' suspicion, the general support for Italian involvement in Libya, however, has risen in recent days and inched above 50 percent of those questioned, according to the Opinioni poll.

Italian Prime Minister Silvio Berlusconi pledged Monday that Italian fighter planes in Libya were there only to protect civilians and wouldn't fire on Libyan planes.

Italian military bases are being used by NATO countries as a launching pad for air strikes against Libya because of the country's proximity.

Western powers, including France, Britain, the United States and Italy, have launched a string of air raids against Libya since Saturday. Libyan authorities said the strikes had killed at least 64 Libyans and wounded 150 others.

Tags : NATO, France, Britain, United States

Implications of the Japan Crisis on steel, coal, shipping industry

Mar16, 2011

In the aftermath of the devastating earthquake that has hit Japan, fears are growing over the potential for radiation leaks from damaged nuclear plants. Equity markets have been hit while FFA prices have also sustained significant losses. With the situation still unfolding, the longer term impact of the disaster on commodity markets is unclear, although some initial conclusions can be drawn.

In the short term, shipping has been disrupted with 13 ports reported by Reuters to have closed, with some of these unlikely to be operational for several months or even years. Initial assessments by Macquarie and the Steel Index put production at five large steel mills in the worst-affected region at risk, accounting for 15-18 million tonnes (Mt) of annualized steel production capacity. That could potentially remove around 20-25 Mt of iron ore and 9-10 Mt of coking coal demand.

In the longer term, reconstruction should boost demand for steel with potential for significant increases in raw material imports. Whether the additional steel demand is met entirely by Japanese production or partially by China, Korea and/or Taiwan, the overall effect should be a boost to iron ore and coking coal imports into the region. Capesize vessel demand would therefore be the biggest beneficiary, with the Panamax sector boosted by extra coking coal demand alongside additional Handysize and Supramax employment on steel products, timber and grain trades. Should additional cargoes be required into China, this would entail more spot market chartering activity, in contrast to Japan’s traditional reliance on longer term freight contracts.

Meanwhile the nuclear crisis has led to rolling blackouts. Out of Japan’s 54 nuclear reactors, 11 are reported closed. The Fukushima Daiichi nuclear plant has so far suffered explosions at three of its reactors and it will almost certainly be decommissioned once the crisis is over. Japan depends on nuclear power for almost a third of its total energy needs. Recent parallels can be drawn with the closure of the Kashiwazaki-Kariwa nuclear plant for 21 months after the 2007 earthquake in Niigata prefecture and, perhaps more significantly, the temporary shutdown in 2003 of 17 nuclear power stations for emergency safety inspections after it was revealed that inspection reports had been falsified.

The 2003 closures led to an increased reliance on both oil and coal-fired power generation. There was an unexpected spike in Japan’s steam coal imports (including anthracite) in July and August 2003 to more than 15 Mt per month compared to an average of 14 Mt per month during the 1h03. This was a key factor in causing the chronic shortage of dry bulk tonnage at that time that led to the record-breaking surge in freight rates.

The rolling programme of emergency inspections in the months that followed led to a very gradual reopening of nuclear plants, which helped to ensure that Japan’s steam coal demand grew strongly. Combined steam coal and anthracite imports jumped from 112.0 Mt in 2003 to 123.6 Mt in 2004. Improved economic conditions in 2010 resulted in the annual import total rising by 14.1 Mt over 2009 to 131.2 Mt. Beyond the inevitable short-term disruptions, there is potential for further strong rises in steam coal demand. This could be particularly significant in the longer term if the latest tragic developments cause a rethink in Japan of the viability of nuclear generation as a key part of the country’s energy mix. (By Marinelink)

Developments after major Japan earthquake

Sun Mar 13, 2011 4:47am GMT

TOKYO, March 13 (Reuters) - Following are main developments after an 8.9 magnitude earthquake that struck northeast Japan on Friday and set off a tsunami.

- More than 1,800 people likely dead or missing from the quake and tsunami, Kyodo news agency says.

- Kyodo reports 10,000 people in one town unreachable.

* Tokyo Electric Power Company (TEPCO) says radiation levels at the Fukushima Daiichi nuclear power plant have risen above the safety limit but says this posed no "immediate threat" to human health. An explosion blew the roof off the plant, but authorities had said radiation levels were lessening.

* Chief Cabinet Secretary Yukio Edano says efforts to eliminate radiation risks focus on air being being vented out of the reactor and water being supplied to it.

- Evacuation ordered of 110,000 from 20-km (12-mile) radius around the Fukushima Daiichi nuclear power plant, 30,000 from 10-km (6-mile) radius around nearby Fukushima Daini plant. Kyodo says 300,000 evacuated overall, 5.5 million without power.

* Jiji news agency says a further 19 people may have been exposed to radiation from the reactor. The nuclear safety agency had earlier said up to 160 people may have been exposed.

- Nuclear safety agency rates the incident a 4 on the 1 to 7 International Nuclear and Radiological Event Scale, less serious than Three Mile Island, which was a 5, and Chernobyl at 7.
- Quake triggers tsunami up to 10 metres (30 feet). Waves swept away homes, crops, vehicles and submerged farmland.

- Bank of Japan to hold policy meeting on Monday. The central bank vows to ensure financial market stability.

- Toyota Motor Co to suspend operations at all 12 factories on Monday.

- Total insured loss could be up to $15 billion, equity analysts covering the industry say.

- Disaster sends oil, metals, and grain prices sliding on fears over its impact on demand, deepening their biggest decline in months; yen rises broadly on risk aversion by Japanese investors and expectations of repatriations by Japan's insurance companies; oil prices slide more than $3 a barrel.

- Tokyo Stock Exchange to trade as normal on Monday. (Tokyo bureau; World Desk Asia, Singapore +65 6870 3815)

China bans hoarding of oil, coal to cool prices

Feb23,2011 By AP

China is banning hoarding of oil, coal and other key commodities, seeking to ensure supplies and cool prices that have surged despite repeated moves to curb inflation.

The government planning agency, in comments published Tuesday, says provinces are forbidden to limit shipments of coal beyond their borders and are required to ensure stable supplies.

Local authorities were ordered to crack down on hoarding, bogus bids meant to drive prices higher, and other illegal practices.

China is trying to cool inflation that surged to a 25-month high in October. Authorities say soaring food prices are mainly to blame, but costs for fuel and other necessities have also jumped, as supplies have run short.