Connect with us

Commodities

Japan to take time phasing out Russian oil imports, says PM Kishida

Published

on


© Reuters. FILE PHOTO: Japanese Prime Minister Fumio Kishida delivers a speech at the Guildhall in London, Britain May 5, 2022. REUTERS/Peter Nicholls

TOKYO (Reuters) – Japan will take time to phase out Russian oil imports after agreeing on a ban with other Group of Seven (G7) nations to counter Moscow’s invasion of Ukraine, Prime Minister Fumio Kishida said on Monday.

The G7 nations committed to the move “in a timely and orderly fashion” at an online meeting on Sunday to put further pressure on President Vladimir Putin, although members such as resource-poor Japan depend heavily on Russian fuel.

“For a country heavily dependent on energy imports, it’s a very difficult decision. But G7 coordination is most important at a time like now,” Kishida told reporters, repeating comments he made at the G7 meeting.

“As for the timing of the reduction or stoppage of (Russian) oil imports, we will consider it while gauging the actual situation,” he said. “We will take our time to take steps towards a phase-out.” He did not elaborate.

There have been no ships loading Russian oil for Japan since mid-April, according to Refinitiv data. About 1.9 million barrels were exported from Russia to Japan in April, 33% down from the same month a year ago.

The country imported a total of 89 million barrels of oil in March.

GRAPHIC-Japan crude oil imports since 2013 https://fingfx.thomsonreuters.com/gfx/ce/gkvlgkeyzpb/JapanCrudeImports.png

The Ukraine crisis has highlighted Japan’s energy dependence on Russia even as Tokyo has acted swiftly and in tandem with the G7 in instituting sanctions.

The latest ban underlines a turn in Japan’s policy. Japan has said it would be difficult to immediately cut off Russian oil imports, which accounted for about 33 million barrels of Japan’s overall oil imports, or 4%, for 2021.

It has already said it will ban Russian coal imports in stages, leaving just liquefied natural gas (LNG). Japan is in a particularly tough spot since it shut down the bulk of its nuclear reactors following the 2011 Fukushima nuclear disaster.

Russia was Japan’s fifth-biggest supplier of crude oil and LNG last year.

The Japanese government and companies own stakes in oil and LNG projects in Russia, including two on Sakhalin Island from which partners Exxon Mobil Corp (NYSE:XOM) and Shell (LON:RDSa) PLC have announced they will exit.

Still, Japan’s biggest oil refiner, Eneos Holdings Inc, has already stopped buying Russian crude, saying it would get supplies from the Middle East. Second-ranked Idemitsu Kosan Co Ltd also said it has no plan to purchase Russian crude.

“Japan’s major refiners have already suspended signing any new term contracts to buy Russian oil and there have been no issues in securing alternatives,” Shinya Okuda, senior managing director of the Petroleum Association of Japan (PAJ), told Reuters.

“Refiners will continue their efforts to diversify supply sources, but Japan’s dependency on the Middle East crude will have to increase in the short term as the region’s supply capacity is so high,” he said. The Middle East accounted for 93% of Japan’s oil imports in 2021.

On Friday, trading firm Marubeni Corp said it wanted to withdraw from the Sakhalin-1 oil project but was keeping its stake in line with government policy.

Kishida said on Monday there was no change to the government’s policy of keeping business interests in the various Russian energy assets.

PAJ’s Okuda said it was better to maintain the concessions considering Japan’s energy situation, and it would be unwise to give them up and let China or others take them as Japan has the concessions under good conditions.

Commodities

Oil falls 2.5% as U.S. refiners ramp up output, equities retreat

Published

on


© Reuters. FILE PHOTO: An aerial view shows an oil factory of Idemitsu Kosan Co. in Ichihara, east of Tokyo, Japan November 12, 2021, in this photo taken by Kyodo. Mandatory credit Kyodo/via REUTERS

By Arathy Somasekhar

HOUSTON (Reuters) -Oil prices fell 2.5% on Wednesday, reversing early gains as traders grew less worried about a supply crunch after government data showed U.S. refiners ramped up output, and as crude futures followed Wall Street lower.

Brent crude settled down $2.82, or 2.5%, at $109.11 a barrel. U.S. West Texas Intermediate (WTI) crude fell $2.81, or 2.5%, to $109.59 a barrel.

Both benchmarks gave up early gains of $2-$3 a barrel following a change in risk sentiment as equity markets fell, said UBS analyst Giovanni Staunovo.

Brent remained at an unusual discount to WTI a day after settling below the U.S. benchmark for the first time since May 2020. Traders and analysts cited strong export demand and tightening U.S. crude stockpiles.

U.S. crude inventories fell by 3.4 million barrels last week, government data showed, an unexpected drawdown, as refiners ramped up output in response to tight product inventories and near-record exports that have forced U.S. diesel and gasoline prices to record levels. [EIA/S]

U.S. gasoline prices fell 5%, two days after touching a record high.

Capacity use on both the East Coast and Gulf Coast was above 95%, putting those refineries close to their highest possible running rates.

“While on the face of it, the report was extraordinarily bullish, they (refiners) are racing to put more refined product on the market… there’s obviously a refiners response,” said John Kilduff, a partner at Again Capital LLC.

The dollar strengthened and global stocks retreated on concerns about economic growth and rising inflation.

Bearish sentiment also followed reports that the United States is planning to relax sanctions against Venezuela and allow Chevron Corp (NYSE:CVX) to negotiate oil licenses with state producer PDVSA.

“The perception that we could see some more supply coming Venezuela coming into the market, along with the equity markets, it’s causing some profit taking in a much-needed technical correction in the crude,” said Dennis Kissler, senior vice president for trading at BOK Financial.

The European Union’s failure to persuade Hungary to lift its veto on a proposed embargo on Russian oil was adding price pressure, although some diplomats expect agreement on a phased ban at a summit at the end of May.

Ongoing supply concerns remained supportive. Russian crude output in April fell by nearly 9% from the previous month, an internal OPEC+ report showed on Tuesday, as Western sanctions on Moscow curbed exports.

On the demand side, hopes of further lockdown easing in China boosted expectations of a recovery. Authorities allowed 864 of Shanghai’s financial institutions to resume work, sources said, and China has relaxed some COVID test rules for U.S. and other travelers.

Continue Reading

Commodities

U.S. extends application deadline for nuclear power rescue program

Published

on


© Reuters. FILE PHOTO: Spent fuel storage is seen at the San Onofre Nuclear Generating Station near San Clemente, California, U.S., April 21, 2022. REUTERS/Nichola Groom

WASHINGTON (Reuters) – The U.S. Department of Energy said on Wednesday it has extended a deadline by 47 days, to July 5, for nuclear power plants to apply for federal funding to keep them running.

The first stage of the program is aimed at saving two plants, one in California and one in Michigan. The Biden administration wants to keep nuclear generators online because the industry generates more than half the country’s carbon-free electricity.

The DOE statement came two days after two industry trade groups, Edison Electric Institute and Nuclear Energy Institute, sent a letter to Energy Secretary Jennifer Granholm requesting the extension on behalf of their members.

“We received a request to extend the application period, which could keep at-risk reactors online, delivering much needed clean energy to the grid,” DOE’s assistant secretary for nuclear energy, Kathryn Huff, said in the statement.

Under the program, which was launched last month, owners of nuclear reactors that are scheduled to retire can apply for a portion of $6 billion in available funding.

Entergy Corp (NYSE:ETR)’s Palisades plant in Michigan, which may be eligible for the funding, is due to shut down on May 31. The Diablo Canyon facility in California, owned by PG&E (NYSE:PCG) Corp, is scheduled to retire in 2025.

Continue Reading

Commodities

Oil falls 2% as U.S. refiners ramp up output, equities retreat

Published

on


© Reuters. FILE PHOTO: An aerial view shows an oil factory of Idemitsu Kosan Co. in Ichihara, east of Tokyo, Japan November 12, 2021, in this photo taken by Kyodo. Mandatory credit Kyodo/via REUTERS

By Arathy Somasekhar

HOUSTON (Reuters) -Oil prices reversed course and fell over 2% on Wednesday after government data showed U.S. refiners ramped up output, easing worries of a supply crunch, and as traders took cues from a drop in equities market.

Brent crude was down $2.41 cents, or 2.4%, at $109.52 a barrel at 12:05 a.m. ET (1605 GMT), while U.S. West Texas Intermediate (WTI) crude fell $2.5 cents, or 2.2%, to $1 09.85 a barrel.

Brent settled below WTI on Tuesday – the first time since May 2020 – and was still unusually trading at a discount due to strong export demand and tightening U.S. crude stockpiles.

U.S. crude inventories fell by 3.4 million barrels last week, government data said, an unexpected drawdown as refiners ramped up output in response to tight product inventories and near-record exports that have forced diesel and gasoline prices to record levels in the United States. [EIA/S]

Capacity use on both the East Coast and Gulf Coast was above 95%, putting those refineries close to their highest possible running rates.

“While on the face of it, the report was extraordinarily bullish, they (refiners) are racing to put more refined product on the market… there’s obviously a refiners response,” said John Kilduff, a partner at Again Capital LLC.

Both benchmarks also gave up earlier gains of $2-$3 a barrel following a change in risk sentiment as equity markets fell, said UBS analyst Giovanni Staunovo.

The dollar strengthened and global stocks retreated on Wednesday as concerns about economic growth and rising inflation soured sentiment.

Bearish sentiment also followed reports that the United States is planning to relax sanctions against Venezuela and allow Chevron Corp (NYSE:CVX) to negotiate oil licences with state producer PDVSA.

“The perception that we could see some more supply coming Venezuela coming into the market, along with the equity markets, it’s causing some profit taking in a much needed technical correction in the crude,” Dennis Kissler, senior vice president for trading at BOK Financial said.

The European Union’s failure to persuade Hungary to lift its veto on a proposed embargo on Russian oil was adding price pressure, although some diplomats expect agreement on a phased ban at a summit at the end of May.

Ongoing supply concerns, however, were still supportive. Russian crude output in April fell by nearly 9% from the previous month, an internal OPEC+ report showed on Tuesday, as Western sanctions on Moscow curbed exports.

On the demand side, hopes of further lockdown easing in China have boosted expectations of a recovery. Authorities allowed 864 of Shanghai’s financial institutions to resume work, sources said on Wednesday, and China has relaxed some COVID test rules for U.S. and other travellers.

Continue Reading

News

Economy28 mins ago

Brazil’s govt will maintain GDP outlook for 2022 and 2023 -sources

© Reuters. FILE PHOTO: Consumers shop at a weekly street market in Rio de Janeiro, Brazil, September 2, 2021. REUTERS/Ricardo...

Cryptocurrency28 mins ago

Socios fan tokens rally 40%+ after Chiliz rolls out mainnet upgrade and token burn plan

Socios fan tokens rally 40%+ after Chiliz rolls out mainnet upgrade and token burn plan In times of high stress...

Economic Indicators29 mins ago

JPMorgan cuts U.S. GDP estimates for 2022 and 2023

© Reuters. FILE PHOTO: Stacked containers are shown as ships unload their cargo at the Port of Los Angeles in...

Stock Markets29 mins ago

Plotkin’s Melvin Capital to Wind Down – Report

© Reuters Plotkin’s Melvin Capital to Wind Down – Report Gabe Plotkin’s Melvin Capital Management, a hedge fund that lost...

Stock Markets29 mins ago

Chevron, Schlumberger withdraw request for California carbon-capture permit

2/2 © Reuters. FILE PHOTO: The logo of Chevron Corp is seen in its booth at Gastech, the world’s biggest...

Economy29 mins ago

Factbox-U.S. companies offering abortion travel benefits

© Reuters. Signage is seen at an Amazon facility in Staten Island, New York City, U.S., April 24, 2022. REUTERS/Andrew...

Sports & General29 mins ago

New York state opens probe of social media platforms used by Buffalo shooting suspect

2/2 © Reuters. FILE PHOTO: Members of the Buffalo Police department work at the scene of a shooting at a...

Stock Markets58 mins ago

Synopsys Shares Up 4% Following Q2 Beat, Upbeat Guidance

© Reuters. Synopsys Shares Up 4% Following Q2 Beat, Upbeat Guidance Synopsys (NASDAQ:SNPS) shares were trading more than 4% higher...

Stock Markets59 mins ago

Under Armour CEO Frisk Steps Down After 5 Tumultuous Years

© Reuters. Under Armour CEO Frisk Steps Down After 5 Tumultuous Years Under Armour, Inc. (NYSE:UA), announced that Patrik Frisk...

Coronavirus59 mins ago

Democrats warn abortion, voting rights at stake in Pennsylvania governor’s race

© Reuters. FILE PHOTO: Pennsylvania State Senator Doug Mastriano speaks at a protest against the state’s extended stay-at-home order to...

Cryptocurrency59 mins ago

Was Terra’s UST cataclysm the canary in the algorithmic stablecoin coal mine?

Was Terra’s UST cataclysm the canary in the algorithmic stablecoin coal mine? The past week has not been an easy...

World59 mins ago

Massachusetts identifies first 2022 U.S. case of monkeypox infection

2/2 © Reuters. An electron microscopic (EM) image shows mature, oval-shaped monkeypox virus particles as well as crescents and spherical...

Stock Markets59 mins ago

U.S. lodges labor complaint against Panasonic in Mexico

© Reuters. FILE PHOTO: A logo of Panasonic Corp is pictured at the CEATEC JAPAN 2017 (Combined Exhibition of Advanced...

Cryptocurrency1 hour ago

Meta trademark filing hints at plans for crypto payments platform

Meta trademark filing hints at plans for crypto payments platform Social media giant Facebook (NASDAQ:FB)’s parent company, Meta, may be...

Stock Markets1 hour ago

Cisco Shares Plunge 17% on Q3 Revenue Miss and Disappointing Outlook

Cisco Shares Plunge 17% on Q3 Revenue Miss and Disappointing Outlook Cisco Systems (NASDAQ:CSCO) shares dropped around 17% after-hours Wednesday...

Stock Markets1 hour ago

Cisco shares plunge after China lockdowns, Ukraine crisis hits outlook

© Reuters. FILE PHOTO: The Cisco Systems logo is seen as part of a display at the Microsoft Ignite technology...

Stock Markets1 hour ago

NASA set for Boeing’s Starliner uncrewed space capsule test

© Reuters. FILE PHOTO: The Atlas V rocket carrying Boeing’s CST-100 Starliner capsule is seen after the launch to the...

Stock Markets1 hour ago

Under Armour CEO Frisk to step down

© Reuters. FILE PHOTO: Under Armour clothing is seen for sale in a store in Manhattan, New York City, U.S.,...

World1 hour ago

Turkey’s Erdogan links Sweden, Finland NATO bid to return of ‘terrorists’

© Reuters. FILE PHOTO: Turkey’s President Tayyip Erdogan holds a news conference during the NATO summit at the Alliance’s headquarters...

Coronavirus1 hour ago

U.S. warns North Korea could greet Biden with nuclear, missile tests

© Reuters. FILE PHOTO: FILE PHOTO: North Korean leader Kim Jong Un walks next to what state media reports is...

Uncategorized2 hours ago

Wall Street ends sharply lower as Target and growth stocks sink

Stock Markets2 hours ago

Tesla cut from S&P 500 ESG Index, and Elon Musk tweets his fury

© Reuters. FILE PHOTO: The logo of car manufacturer Tesla is seen at a dealership in London, Britain, May 14,...

Stock Markets2 hours ago

U.S. stocks lower at close of trade; Dow Jones Industrial Average down 3.57%

© Reuters U.S. stocks lower at close of trade; Dow Jones Industrial Average down 3.57% Investing.com – U.S. stocks were...

Stock Markets2 hours ago

Cisco cuts results forecast on China lockdowns, Ukraine crisis; shares plunge

© Reuters. FILE PHOTO: The Cisco Systems logo is seen as part of a display at the Microsoft Ignite technology...

Economy2 hours ago

Stocks pummeled by growth worries, U.S. dollar climbs

2/2 © Reuters. A passerby wearing a protective face mask walks past an electric screen displaying a graph showing Japan’s...

Cryptocurrency2 hours ago

Price analysis 5/18: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, AVAX, SHIB

Price analysis 5/18: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, AVAX, SHIB On May 17, United States Federal Reserve...

Economy2 hours ago

Fed’s Harker: soft landing possible, not forecasting recession

© Reuters. FILE PHOTO: A worker weighs meat at a butcher shop at Reading Terminal Market after the inflation rate...

Stock Markets2 hours ago

Under Armour CEO to Step Down

© Reuters. By Yasin Ebrahim Investing.com — Under Armour said Wednesday Patrik Frisk would be stepping as chief executive on June...

Cryptocurrency2 hours ago

Early polling from Terra vote indicates 91% are in favor of ‘rebirth’

Early polling from Terra vote indicates 91% are in favor of ‘rebirth’ Terraform Labs CEO Do Kwon’s plan to create...

Stock Markets2 hours ago

Stock Market Today: Dow in Biggest Slump Since 2020 on Turmoil in Target, Tech

© Reuters By Yasin Ebrahim Investing.com — The Dow slumped Wednesday, as a selloff in tech and a plunge in Target’s...

Trending