West Texas Intermediate remains steady with thin trading, possibly due to anticipation of upcoming producer price figures from the US. The WTI crude oil hovers around $78.00 per barrel in European trading on Thursday. Oil traders have absorbed the hawkish stance maintained by the US Federal Reserve, with the Federal Open Market Committee (FOMC) keeping … Read more
16 people were killed and 35 wounded in U.S. and British strikes on Yemen’s Hodeidah province. The strikes targeted a radio building in Al-Hawk district and port of Salif. The U.S. and British militaries launched strikes against Houthi targets in Yemen to deter the militant group from disrupting shipping in the Red Sea.
Israel plans to allow more oil tankers to dock at a Red Sea port in Eilat despite environmental risks. The government wants to revoke restrictions on the amount of oil that can be unloaded at a jetty in the city, which sits near a coral reef. The curbs imposed in 2021 were eased temporarily during the Gaza war. EAPC, the state-owned company operating the pipeline, wants to receive more oil, but environmental regulators and Eilat’s mayor oppose the plan. Israel is pushing to ensure energy security amid conflicts with various groups. Netanyahu’s office recommended easing restrictions to include fuel for trade and domestic use. The environment ministry expressed concerns about the risks of more oil deliveries and cited past mishaps. EAPC welcomed the government’s U-turn, emphasizing the strategic importance of the Eilat facility for energy delivery. Israel imports most of its oil through seaborne trade, and the Emirati oil deal could be worth about million a year for EAPC. The Energy Ministry emphasized the need to handle oil deliveries properly to sustain the terminal economically.
Fact: The disruptions in global trade routes, such as those at the Suez Canal and Panama Canal, have significant tax implications for multinational corporations, affecting transfer pricing, profit attribution, intangible property, withholding taxes, and customs duties.
Global petrol demand growth is expected to halve in 2024 due to a shift to electric cars in China and the United States, as well as a return to normal consumption levels after the COVID-19 pandemic.
The U.S. Navy is facing challenges in building a fleet of unmanned vessels due to a focus on big shipbuilding projects, despite the demonstrated effectiveness of sea drones in combat situations. The Pentagon is now incorporating lessons from Ukraine and the Red Sea to counter China’s naval power in the Pacific, launching the Replicator initiative to deploy small air and sea drones. This initiative aims to match China’s military threat and is funded by reallocating funds from the existing Pentagon budget. The use of sea drones for maritime surveillance, minehunting, and protection of critical infrastructure is seen as crucial, with the U.S. Navy testing unmanned vessels in combat scenarios and expanding their use in different regions. Companies like Saildrone and Ocean Aero are actively involved in supplying autonomous vessels to the Navy, showing the increasing focus on deploying sea drones quickly to stay ahead in naval warfare.
The disruption to container shipping traffic in the Red Sea is expected to reduce the industry’s capacity between the Far East and Europe by 15-20% in the second quarter.
British manufacturing fell back into contraction in April, with the S&P Global UK Manufacturing Purchasing Managers’ Index (PMI) falling to 49.1.
Yemen’s Iran-aligned Houthi militia is offering a place for U.S. students suspended from universities for supporting Palestinians in the Gaza conflict. The students have been protesting against Israel’s actions in Gaza and calling on President Biden to intervene. Sanaa University, run by the Houthis, is welcoming these students to continue their studies in Yemen, condemning suppression of freedom of expression at U.S. and European universities. The offer has sparked sarcasm among Yemenis on social media.
Royal Caribbean Group raised its annual profit forecast for a second time and beat expectations for first-quarter profit and revenue. The company now expects annual adjusted profit between .70 and .90 per share, compared with its earlier forecast of .90 to .10.