Baltic Exchange names new chairman

Energy News Beat

EuropeOperations

Guy Hindley has been appointed as the new chairman of the Baltic Exchange Council.

Hindley takes over on January 1 from Lord Jeffrey Mountevans, who has held the position for the past two years. 

Hindley has been on the Baltic Exchange Council since January 2019 and is the managing partner of the dry cargo division at shipbroker Howe Robinson, where he has spent nearly four decades. 

“His deep-rooted experience in maritime and shipbroking is set to support the Baltic Exchange’s mission to advance shipping standards and services globally,” the London-based organisation said in a release. 

Commenting on his appointment, Hindley noted, “The Baltic Exchange has always been at the heart of the global maritime community. I look forward to working closely with its members to ensure that Baltic Exchange continues to lead the way in providing trusted data and services that support the maritime industry during this critical time of transformation.” 

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Stainless Tankers offloads two oldest vessels

Energy News Beat

EuropeTankers

Stainless Tankers of Norway has found a buyer for two of its oldest vessels listed for sale earlier this year.

The Oslo-listed outfit backed by UK-based Tufton Investment Management is offloading the 2005-built J19 stainless steel units Monax and Marmotas for $31.2m.

The buyer was not disclosed, but the company said the vessels should change hands in February and April 2025.

Both ships, currently estimated by VesselsValue at about $34m in total, were acquired a year ago in a $27m deal funded by upsizing the company’s existing loan facility.

The Andrew Hampson-led chemical tanker pureplay will have a fleet of seven ships once the transaction closes.

The fleet is managed by Tufton and trades in the Womar pool owned by Blue Ocean Partners, which anchored Stainless Tankers’ IPO in March 2023 as the largest investor.

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DR Congo Sues Apple

Energy News Beat

Daily Standup Top Stories

US DOE releases LNG export study

The Biden administration said in January it will pause pending decisions on exports of LNG to non-FTA countries until DOE can update the underlying analyses for authorizations. According to DOE, this multi-volume study updates DOE’s understanding of […]

Russia continues to ship oil directly to the EU despite sanctions, investigation finds

An investigation by Ukrainska Pravda (UP) has found that Russian oil continues to flow into the EU despite sanctions, with shipments under the flags of Liberia and Panama reaching the ports of Romania and Bulgaria, both EU […]

Scottish Renewables want interconnector reform

Scottish Renewables say there is a critical role for interconnectors in achieving the UK’s net-zero ambitions but reforms are ne

DR Congo sues Apple over ‘blood minerals’

  The African state’s lawyers see it as a step toward holding the US tech giant accountable for its policy of “endless enrichment” The Democratic Republic of Congo (DR Congo) has filed criminal complaints in […]

eded. They have produced a report which identifies opportunities to optimise interconnector benefits and challenges current […]

Oil washes up along Black Sea coastline following triple tanker casualties

Screenshot/Telegram Oil has washed up along the shorelines around the Kerch Strait following a series of tanker disasters involving ancient Russian tankers in recent days. Footage posted on social media showed birds along the shoreline […]

Highlights of the Podcast

00:00 – Intro

01:16 – US DOE releases LNG export study

03:06 – Russia continues to ship oil directly to the EU despite sanctions, investigation finds

04:46 – Scottish Renewables want interconnector reform

06:03 – DR Congo sues Apple over ‘blood minerals’

10:09 – Oil washes up along Black Sea coastline following triple tanker casualties

13:35 – Markets Update

14:50 – Weekly Petroleum Status Report

18:09 – Outro


Follow Stuart On LinkedIn and Twitter

Follow Michael On LinkedIn and Twitter

ENB Top News

– Get in Contact With The Show –


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Why Ohio companies are investing in hydrogen cars despite infrastructure issues

Energy News BeatOhio companies

​[[{“value”:”

Three Ohio companies are investing in hydrogen fuel cell passenger vehicles even as the U.S. market for electric vehicles continues to grow. Each has an innovative approach to the chicken-and-egg problem of having fuel available when and where drivers need it.

The Ohio companies’ focus on fuel cell passenger vehicles is unique nationwide, especially for a state that doesn’t yet have any public hydrogen fueling stations. California, where almost all of the country’s hydrogen fuel cell cars are registered, still has fewer than 60 public stations

“When we see hydrogen transportation deployment projects, it’s really more on the medium- and heavy-duty side,” said Mark Henning, a researcher at Cleveland State University’s Energy Policy Center at the Maxine Goodman Levin School of Urban Affairs.

A hydrogen car is essentially an electric vehicle with an onboard fuel cell providing electricity alongside a battery. General Motors first displayed a prototype for a hydrogen fuel cell vehicle back in the 1960s, but hydrogen cars weren’t available to U.S. consumers until leases for the 2015 Hyundai Tucson Fuel Cell began, with sales of the Toyota Mirai starting that fall. 

Hydrogen car sales have been essentially limited to California, where state policy and public funding supported the development of some public fueling stations. Since then, only about 18,000 fuel cell cars have been sold in the U.S.

Yet Ohio companies have been working on hydrogen energy for more than two decades. The state trade association, the Ohio Fuel Cell and Hydrogen Coalition, traces its history back to 2003. 

If successful, the current efforts could eventually provide another option for switching away from gasoline-powered cars. While electric vehicles are comparable in price, hydrogen cars can be refueled quickly — assuming the infrastructure is available — and offer more consistent range in cold weather. But much could hinge on how quickly hydrogen infrastructure develops, as well as how quickly and effectively plug-in electric vehicle makers deal with their own range and charging challenges.

One example of the desire for hydrogen vehicle alternatives comes from DLZ, an engineering, architectural and project management company headquartered in Columbus with offices across the United States as well as in India and Costa Rica. The company has a fleet of about 250 vehicles across the Midwest, including electric vehicles. In 2022, it added six Hyundai hydrogen fuel cell cars for use by professionals from its Columbus office.

“The hydrogen fuel cell vehicles have a lot more consistent performance in range and durability,” especially in cold weather, said Ram Rajadhyaksha, DLZ’s executive vice president. The range for the cars is sufficient for round trips the office’s professionals make to site locations around the state, he explained at the Ohio Fuel Cell & Hydrogen Coalition symposium in North Canton last month.

Hydrogen fuel cell cars aren’t sold in Ohio yet, so DLZ had its six Hyundai vehicles shipped from California to Columbus. Except for the fuel cells, dealers in Ohio can provide any necessary service the vehicles may need, Rajakhyasksha said.

The cars also need a regular source of hydrogen, so DLZ added its own. Its station in Columbus can generate about 20 kilograms of hydrogen per day, using electricity from a solar array atop a large building on company property. A net metering agreement lets DLZ sell any excess electricity from the array to the grid. 

Nonetheless, there were hurdles, including permitting, building codes, supply chain issues during the tail end of the pandemic, and even signage codes.

While California has been the country’s epicenter for fuel cell vehicles, Honda Motors is now producing the first American-made hybrid hydrogen vehicle at its Marysville plant in Ohio. Its 2025 CR-V e:FCEV model can go roughly 270 miles on a tank of hydrogen. There’s also a small electric battery which provides a driving range of about 30 miles. A 110-volt power outlet on the vehicle can run small home appliances or other equipment.

That range is about the same as Honda’s all-electric Prologue SUV, which also has a comparable list price. But the company believes there is room for both.

“It’s not one or the other,” said Dave Perzynski, assistant manager for hydrogen solutions business development at Honda, who also spoke at the Ohio Fuel Cell & Hydrogen Coalition symposium. “It’s using the right equipment at the right place at the right time.” The CR-V’s electric charging range is about right for his daily round-trip commute, he said, while the fuel cell offers flexibility for longer trips.

Honda’s goal is to achieve 100% decarbonization, Perzynski said. However, limits on local electric grids can make that difficult in some places. “If you can electrify it, if it works, then do that,” he said. “And once that stops working, then thank goodness we’ve been investing in hydrogen for the last 20 years, because there are places and times when you run out of power.”

As a practical matter, the Ohio-made cars’ initial market will be California. For other states, Honda is counting on others to build out the fueling infrastructure. 

“The only way we can do that is through a coalition,” Perzynski said. “We can’t build infrastructure alone.”

Millennium Reign Energy in Dayton has a membership model to develop hydrogen infrastructure along with the demand for it. Its Emerald H2 network will help customers buy used fuel cell vehicles, while also providing access to hydrogen fueling stations designed and built by the company.

As the number of customers in an area grows, Millennium Reign Energy would swap out the fueling station for one with larger capacity. The smaller station would then go to another location. Access to the stations would be for members only, although members traveling outside their local area could use stations elsewhere.

“Our mission is to build the first transcontinental hydrogen highway,” said CEO Chris McWhinney as he explained the model at the fuel cell program last month. The company’s fueling stations are already operating at places outside the United States, as well as three private facilities in Ohio. The company plans to add its first Emerald H2 network stations in the Dayton area early next year.

The stations use electricity and water to make hydrogen, so using one with a nearby source of solar, wind, hydropower or geothermal energy can provide green energy, versus just moving emissions from tailpipes up to power plants, McWhinney said. That can also bring the cost for the hydrogen fuel down below that of gasoline, he suggested, as renewable electricity continues to get cheaper.

Whether hydrogen-powered passenger vehicles are the best use for renewable energy remains questionable. A study published in Joule last August found battery-electric vehicles were roughly three times more efficient in using renewable electricity than fuel-cell vehicles.

“The battery-electric case is much more efficient than the hydrogen fuel cell vehicle,” said Greg Keoleian, co-director of the University of Michigan’s MI Hydrogen initiative, and one of the co-authors of the Joule study. Ideally, renewable energy will be used efficiently, given the limited amount on the grid now and the urgent need to decarbonize because of climate change, he said.

Battery electric cars also have a much bigger charging network, with nearly 70,000 stations nationwide, Keoleian noted. Cost is also an issue, he added, noting that hydrogen fuel in California currently costs about five times as much as gasoline would to go the same distance. 

Henning did note that one of Ohio’s public transit systems, SARTA, the Stark Area Regional Transit Authority, has had hydrogen buses as part of its fleet since 2016. Transit fleets also often need a handful of passenger vehicles, which might be able to use tbuses’ hydrogen fueling station while also qualifying for bulk discounts that may start with the acquisition of five or six vehicles, he said.

The Department of Energy’s recent push for hydrogen hubs might also play an indirect role, suggested Sergey Paltsev, deputy director of the Massachusetts Institute of Technology’s Center for Sustainability Science and Strategy. None of the hub projects so far focus on light-duty vehicles, but infrastructure developed for other purposes could make it easier to develop fueling stations. In that case, the Ohio companies could be angling for a competitive advantage. 

Yet much remains unknown about whether the incoming Trump administration will continue incentives begun in the Biden administration, Henning said. The law’s tax credit can apply to fuel cell vehicles with final assembly in North America, which might apply to Honda’s hybrid car — if the Inflation Reduction Act continues.

“I do think there is an appetite and there is a customer base for fuel cell electric vehicles, and I can imagine different use cases where that makes more sense” than an all-electric car, said Grant Goodrich, executive director of the Great Lakes Energy Institute at Case Western Reserve University. Multiple people in Northeast Ohio have expressed reluctance to buy an electric vehicle now, especially given the challenges of harsh winter weather.

Yet the infrastructure for electric vehicles is much farther ahead, and electric vehicle makers continue to work to improve performance. “Will the technology of battery and electric vehicles improve enough to stay ahead of FCEV adoption so that is able to keep that challenge at bay?” Goodrich asked.

Early last month, he would have put money on the EV makers to stay ahead. After hearing the presentations from Honda, Millenium Reign Energy and DLZ, he’s not so sure. 

“It’s not a done deal,” Goodrich said, noting that the hydrogen fueling experience also seems to be a more natural replacement for the habits customers have adopted as drivers of vehicles with internal combustion engines. “If it was to roll out faster, I think you could see some competition there.”

Editor’s note: This story was updated to clarify Greg Keoleian’s role.

“}]] 

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Thomas Kazakos appointed ICS secretary general

Energy News Beat

OperationsRegulatory

The International Chamber of Shipping (ICS) has appointed Thomas Kazakos as its next secretary general.

The director general of the Cyprus Shipping Chamber since 1995 will replace Guy Platten, who will be stepping down at shipping’s top lobby group in June next year after holding the position for nearly seven years.

Kazakos started his career at the Cyprus Employers and Industrialists Federation before joining the Cyprus Shipping Chamber. He has represented Cyprus on the board of ICS and the European Community Shipowners’ Association (ECSA) in addition to being an administrative board member of the European Maritime Safety Agency (EMSA).

“The coming years will be ones of significant change for our industry and members, and it is vital that we have a strong and resilient organisation to ably represent their views,” Kazakos said, adding, “The IMO’s decarbonisation agenda is obviously front and centre for our industry and I know ICS is working closely with the IMO, governments, and other stakeholders to develop a credible system to support the transition. But there is so much more to do, and I am excited to be given this opportunity to lead the amazing team at ICS and to work with our members as we address the many challenges that our industry encounters.”

Emanuele Grimaldi, chairman of the ICS, added: “The coming decade will be pivotal for our industry, and it was important that we got the right person to lead ICS. Thomas brings a wealth of experience of the ICS community and the entire shipping industry. He is the ideal candidate to build on the great work that Guy has delivered over the past six plus years.”

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Performance Shipping pens aframax charter with AET

Energy News Beat

EuropeTankers

Greece’s Performance Shipping has entered into a time charter contract with American Eagle Tankers (AET) for one of its aframax vessels.

The deal will see the 2011-built, 104,623 dwt tanker Blue Moon work for AET, the tanker arm of Malaysia’s top shipping line MISC, for 21 months. The charterer has the option to shorten or extend the deal by 15 days.

The deal is expected to start at the beginning of January 2025. The vessel will work on a gross charter rate of $28,000 per day and is expected to generate around $17.4m in gross revenue for the minimum duration of the charter.

“With this charter, our secured revenue backlog stands at approximately $59.4m, based on the minimum duration of each charter for the operating vessels, and $169.8m for the three newbuildings,” said Andreas Michalopoulos, Performance Shipping CEO.

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MOL hires cape from Diana Shipping

Energy News Beat

New York-listed Greek bulker owner Diana Shipping has entered into a time charter contract with Japan’s largest shipowner Mitsui O.S.K. Lines (MOL) for one of its capesize vessels.

The company hired the 2015-built, 179,426 dwt bulker Santa Barbara. The gross charter rate is $22,000 per day, minus a 5% commission paid to third parties, for a period until a minimum of October 20, 2025, up to a maximum of December 20, 2025.

The charter is set to begin on December 28 following the end of the charter with Smart Gain Shipping. The employment of the bulker is anticipated to generate approximately $6.42m of gross revenue for the minimum scheduled period of the time charter.

On Monday, the Greek firm announced it won a time charter contract with China Resource Chartering for its 75,403 dwt Maera kamsarmax. The charter will last until a minimum of September 20, 2025, and bring in $2.31m for that period.

Diana Shipping’s fleet consists of 38 dry bulk vessels – four newcastlemaxes, eight capesizes, five post-panamaxes, six kamsarmaxes, six panamaxes, and nine ultramaxes.

The company also expects to take delivery of two methanol dual fuel new-building kamsarmax dry bulk vessels by the second half of 2027 and the first half of 2028, respectively.

Currently, the combined carrying capacity of the fleet excluding the two vessels not yet delivered, is approximately 4.2m dwt with a weighted average age of 11.22 years.

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Iran key services shut as rial plunges amid energy crisis, regional tension

Energy News BeatIran is suffering a fuel shortage created by Grok on X

 

Tehran, Iran – Tens of millions of people across Iran are facing major disruptions as authorities shut down services in the face of an exacerbating energy and currency crisis amid historic regional tensions.

This week, government offices, schools, banks and businesses in major provinces and in the capital Tehran have been largely closed due to worsening fuel and power shortages as temperatures dropped to subzero levels.

Energy Minister Abbas Aliabadi said on Wednesday that 13 power plants are out of commission due to a lack of fuel.

“If the fuel is provided, there will be no problem in providing the electricity, as power plants have undergone necessary repairs and are ready for winter. The petroleum ministry is following up on providing fuel,” he told reporters after a cabinet meeting.

There have been renewed power outages to homes across the country, most of which have come unannounced and lasted for hours.

There have also been massive industrial power cuts, impacting not just large energy-intensive industries but also many small and medium-sized enterprises across the country.

This comes a month after President Masoud Pezeshkian announced blackouts – ones that were rolled out within days – claiming electricity will be cut because the government does not wish to burn cheap fuel that would pollute the air.

But Tehran and major cities have been constantly drowning in a sea of smog that has been visible even in satellite images, while the blackouts – which at times are also accompanied by communications outages as cell towers and internet substations go offline – have persisted.

Situation unlikely to change in winter

The crisis is expected to deal a blow to an already heavily strained economy that has been experiencing skyrocketing inflation and high unemployment for years due to local mismanagement across multiple governments and harsh sanctions imposed by the United States.

Despite holding the second-largest proven natural gas reserves in the world and ranking fourth in terms of proven crude oil reserves, Iran has been facing gas shortages during winter for years.

The power outages were largely within the summertime before now, but have recently hit with winter’s first cold, with even state television experts issuing stern warnings that next year could potentially be far worse.

Authorities have largely been putting the onus on the public, arguing that Iranians consume significantly higher levels of energy, especially natural gas, than people in other countries.

The gas shortage, in turn, either puts power plants out of commission or forces them to burn cheap, dirty and low-yield fuels like mazut, a low-quality, heavy oil that has been a major driver of rampant air pollution in Iran in recent years.

Earlier this month, Deputy Health Minister Alireza Raisi said 15 percent of all deaths in Tehran are caused by air pollution, with thousands of victims each year.

Health Minister Mohammad Reza Zafarghandi said last week that Iran suffers at least $12bn in costs and damages due to air pollution annually, and some calculations put the figure close to $20bn.

The president apologised to the public on Monday for the fuel shortages, signalling the situation is unlikely to change during the winter.

“God willing, we will try next year so these things won’t happen,” Pezeshkian said.

Rial takes a beating

For now, his government has launched a nationwide initiative that calls on the people to decrease the average temperature of their homes by 2 degrees Celsius (3.6 degrees Fahrenheit) in order to help manage the energy crisis.

Government ministers are filming themselves pledging to remain committed to the initiative, while lights are reportedly shut off in the courtyard of the president’s office.

Lights have also been turned off in major highways and expressways in Tehran and other places, plunging them into total darkness at night in a move that the police force has said could cause fatalities and undermine public order.

The energy crisis bears down on the country as Iran’s national currency, the rial, continues to hit new all-time lows on a near-daily basis.

The battered rial broke above 770,000 per US dollar on Wednesday on the unofficial currency market, continuing a trend that has picked up pace since the start of Israel’s war on Gaza last year, and specifically in the aftermath of the fall of longtime President Bashar al-Assad in Syria last week.

Tehran lost an ally of four decades and a major staging ground for its “axis of resistance” with the collapse of the al-Assad dynasty, stoking concerns that the conflict could edge closer to Iranian territory.

Israel, which launched the first known direct air strikes on Iranian soil since the 1980s in late October, has threatened further attacks on Iran’s nuclear and energy infrastructure.

Tensions are only expected to grow with the incoming administration of US President-elect Donald Trump, who in 2018, in his first term in office, began the so-called “maximum pressure” campaign against Iran after unilaterally abandoning its 2015 nuclear deal with world powers.

 

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Fed Cuts by 25 Basis Points, to 4.25%-4.50%, Sees Only 2 Cuts in 2025, Sees Higher Inflation, Higher “Longer-Run” Rates. QT Continues

Energy News BeatPrice

Energetic backpedal from the aggressive monster-rate-cut trajectory envisioned by the markets three months ago.

By Wolf Richter for WOLF STREET.

The FOMC voted today to cut the Fed’s five policy rates by 25 basis points, with 1 participant dissenting, (Cleveland Fed president Beth Hammack who preferred no cut).

And participants see only two cuts in 2025, after economic growth, labor market growth, consumer income and spending, the acceleration of inflation, and big up-revisions of the data this fall have changed the scenario from that infamous soft landing to cruising at a fairly high altitude at an above average speed.

The FOMC also lowered by an additional 5 basis points the offering rate of its Overnight Reverse Repos (ON RRPs), which takes the offering rate to the bottom of the range of its rates (4.25%). The minutes of its last meeting disclosed discussions to that effect. We’ll mull this over in a separate article later, but briefly:

This adjustment will encourage money market funds that use ON RRPs to find other places for their cash, such as the repo market, which would ultimately drain ON RRPs faster to near-zero and shift liquidity to reserves, so that the Fed can continue QT for longer before reserves drop to the “ample” level at which the Fed has said it would end QT.

The 25-basis-point cut reduced the Fed’s five policy rates to:

  • Target range for the federal funds rate to 4.25% – 4.50%.
  • Interest it pays the banks on reserves: 4.40%.
  • Interest it pays on overnight Reverse Repos (ON RRPs): 4.25%
  • Interest it charges on overnight Repos: 4.50%.
  • Primary credit rate: 4.50% (banks’ costs of borrowing at the “Discount Window”).

QT continues at the pace announced in May. The Fed has already shed $2.1 trillion in assets since it started QT in July 2022. According to the FOMC’s Implementation Notes today, the Fed will continue to shed Treasury securities and MBS under the current caps.

The “dot plot.”

Today’s meeting was one of the four times per year when the FOMC releases its “Summary of Economic Projections” (SEP), which includes the “dot plots.” The prior SEP came out with the monster-cut meeting in September.

For the SEP, each of the 19 participants jots down where they see the Fed’s policy rates, unemployment rates, GDP growth, and PCE inflation by the end of the current year and by the end of each of the next several years. The median value of these projections becomes the headline “median projection” for that metric. These projections are neither a decision nor a commitment by the Fed. Members change their projections as the economic situation changes.

Interest rates: only 2 cuts in 2025. Today’s cut reduced the midpoint of the target range for the federal funds rate to 4.375%.

Today’s median projection for the end of 2025 rose by 50 basis points from three months ago, to 3.875%, so only 2 cuts of 25 basis points each in 2025, compared to the 4 cuts they had envision for 2025 in the September SEP, reflecting the Fed’s backpedal from the aggressive monster-rate-cut trajectory envisioned and hoped-for by the markets three months ago.

Projections by the 19 FOMC members for the midpoints of the federal funds rate by the end of 2025 (bold = median):

1 sees 4.375%: No cuts3 see 4.125%: 1 cut of 25 basis points10 see 3.875%: 2 cuts of 25 basis points3 see 3.625%: 3 cuts of 25 basis points1 sees 3.375%: 4 cuts of 25 basis points1 sees 3.125%: 5 cuts of 25 basis points.

The “longer-run” federal funds rate keeps rising. The median projection for the “longer-run” federal funds rate beyond 2027 rose to 3.0%, up from 2.9% at the September meeting, up from 2.8% at the June meeting, and up from 2.6% at the March meeting.

At the same time, it sees PCE inflation at 2.0% beyond 2027. In other words, over the longer term, it sees its interest rates to be 1 percentage point higher than PCE inflation.

GDP growth: The median projection for real GDP growth for 2024 rose to 2.5% (from 2.0% in the September SEP). For 2025, the GDP growth projection rose to 2.1% (from 2.0%), and 2026 remained at 2.0% (which is the 15-year average real GDP growth of the US).

Unemployment rate: The median projection for the unemployment rate declined to 4.2% by the end of 2024 (from 4.4%). For 2025, the median projection declined to 4.3% (from 4.4%).

Inflation rate: The median projection for “core PCE” inflation by the end of 2024 rose to 2.8% (from 2.6%). For the end of 2025, it rose to 2.5% (from 2.2%).

Overall PCE inflation is seen rising to 2.5% in 2025, higher than it is now (2.3% in October). No 2.0% in sight until 2027.

What changed in the FOMC’s statement:

The statement changed in only in two ways in the third paragraph, and the rest was unchanged.

Replaced the old rate with the new rate: “…to 4-1/4 to 4-1/2 percent.”

New: “In considering the extent and timing of additional adjustments to the target range for the federal funds rate,” which replaced the old: “In considering additional adjustments to the target range for the federal funds rate…”

The whole statement:

Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee’s 2 percent objective but remains somewhat elevated.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.

In support of its goals, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Philip N. Jefferson; Adriana D. Kugler; and Christopher J. Waller. Voting against the action was Beth M. Hammack, who preferred to maintain the target range for the federal funds rate at 4-1/2 to 4-3/4 percent.

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The post Fed Cuts by 25 Basis Points, to 4.25%-4.50%, Sees Only 2 Cuts in 2025, Sees Higher Inflation, Higher “Longer-Run” Rates. QT Continues appeared first on Energy News Beat.

 

Russia continues to ship oil directly to the EU despite sanctions, investigation finds

Energy News Beat

An investigation by Ukrainska Pravda (UP) has found that Russian oil continues to flow into the EU despite sanctions, with shipments under the flags of Liberia and Panama reaching the ports of Romania and Bulgaria, both EU and NATO members.

Nearly three years on from Russia’s full-scale invasion of Ukraine, Western sanctions designed to weaken the Russian economy have failed to halt its oil exports.

Despite sanctions on Russian oil, the EU paid approximately €140 billion for oil and gas in 2022, including €80 billion for oil, according to the Financial Times. This financial support has enabled Russia to continue funding its military aggression against Ukraine.

Russia’s oil revenues are a key source of funding for its war operations, with military spending projected to rise to US$142 billion by 2025.

“We’ll have a full import ban on Russian seaborne oil,” European Commission President Ursula von der Leyen declared in May 2022, just two months after Russia launched its full-scale invasion of Ukraine.

Yet an investigation by Ukrainska Pravda journalist Mykhailo Tkach, who was on the ground in Romania and later Bulgaria to witness shipments arriving first-hand, has revealed that Russian oil was still reaching EU ports in November 2024.

Using data from MarineTraffic, a global platform providing real-time information on ship movements, Ukrainska Pravda tracked two Russian oil tankers as they arrived in EU countries.

On 8 and 9 November 2024, the Lipari (Liberia-flagged) and Sredina (Panama-flagged) tankers, carrying 160,000 tonnes of light crude oil, docked at EU ports after departing from the Russian port of Novorossiysk.

The Russian oil reached the EU on 10 November 2024, a day on which Russia’s attacks on Ukraine went on for over 15 hours.

Sredina

The Sredina spent a week offshore, about 10 kilometres from the coast near the Romanian port of Constanța.

 

On 17 November, it was finally tugged in the early hours of the morning, at around 02:00. Alongside it was the Melahat, another Panama-registered tanker, which was involved in a ship-to-ship oil transfer.

The following day, UP’s Mykhailo Tkach sailed out on a small boat in an attempt to reach the location where the oil transfer was taking place. From a distance, the tankers looked like tiny dots on the horizon. The Melahat was seen with the Sredina behind it.

“Now imagine how many such transfers happen throughout the year here, far out to sea. And how many such transfers are taking place in other countries – Bulgaria, Türkiye, Greece, Italy, Spain, and so on,” Tkach said. “What we’ve shown in this video is just the tip of the iceberg.”

On 26 November 2024, the Melahat, which had taken on oil from the Sredina the previous week, docked with the VF Tanker 3, a Russian-registered vessel, in Romanian territorial waters.

“This is the first time we’ve seen oil being transferred to the EU not with shadow fleet tankers registered in offshore jurisdictions, but with a Russian-registered vessel,” Tkach said.

The VF Tanker 3 had arrived in Romania directly from the Russian port of Novorossiysk.

The Lipari

On 10 November, just before arriving at the Romanian port, the Lipari tanker unexpectedly diverted to Bulgaria. The Liberian-registered tanker docked at Rosinets, the largest oil refinery on the Balkan Peninsula. Formerly owned by Russian giant Lukoil, the refinery was nationalised by Bulgaria in September 2023.

 

As the Lipari approached, the Stamos, a Malta-registered tanker, left the Rosinets refinery. This tanker had previously visited Russia twice in 2023. The Lipari and the Stamos joined each other at sea.

“A ship-to-ship transfer of oil may be taking place between them,” Tkach said. “That’s what the Russian shadow fleet does. The tankers meet far from the shore, so we can’t reach them on our first attempt.”

In 2022, the European Commission granted Bulgaria an exemption to import and refine Russian oil until the end of 2024, securing its domestic supply. However, this exemption led to Bulgaria receiving more Russian oil than necessary, indirectly enabling Russia to sell oil to third parties.

A report by Global Witness, CREA, and the Center for the Study of Democracy revealed that in the first 10 months of 2023, the Rosinets refinery processed nearly 5 million tonnes of Russian oil, generating almost €1 billion in direct tax revenue for the Kremlin.

“As Vladimir Putin has noted, that is the amount spent in one year on the Wagner Group,” Tkach pointed out.

In 2023, Bulgaria passed a law to stop the import of Russian oil, with a target of reducing Russian oil use at the Rosinets refinery to 80% by the end of 2023, and completely halting imports by October 2024. Yet as of November 2024, the transfer of oil continues.

“A ship-to-ship transfer at sea takes about 24 hours,” Tkach said.

The following day, when Tkach returned to observe the tankers, he confirmed that the transfer had taken place. The Lipari had unloaded its cargo, while the Stamos had taken on the oil.

“This is how the Russian shadow fleet works, right here in the EU,” Tkach said.

The Altai

On the morning of 17 November, the Altai, a tanker registered in the Marshall Islands, arrived in Constanța, Romania, after departing from Novorossiysk. The crew consisted of 19 Russian citizens and 2 Georgians.

 

“This is the third tanker to have transported Russian oil to Romania and Bulgaria in the past week, after the Lipari in Burgas and the Sredina near Constanța,” Mykhailo Tkach said.

The Altai headed to the Romanian port of Midia, its identity confirmed by its blue hull and online tracking data.

On 17 November, Ukraine suffered one of Russia’s largest missile attacks, targeting its energy infrastructure. Meanwhile, three Romanian tugboats – Tirreno, Bucuresti and Astana – were towing the Altai about 10 km off the Romanian coast.

Text messages obtained by Ukrainska Pravda that had been sent by Ivan Bogdanov, a Russian sailor on board the Altai, revealed that the tanker had been anchored in Romanian waters for nearly a week before heading back to Novorossiysk for reloading. The text exchange also indicated that the crew were aware of the tanker’s operations in the region.

The Seajewel

The Seajewel tanker was seen unloading at the Romanian port of Constanța after arriving from Ceyhan, Türkiye. Sources in law enforcement told Ukrainska Pravda that the tanker was scheduled to head to Novorossiysk, Russia, for reloading.

 

The European Anti-Fraud Office is currently conducting an investigation into Russian oil deliveries through Turkish ports, which have no refining capabilities.

Despite sanctions, EU countries imported over 5 million tonnes of Russian oil worth €3 billion via Türkiye during the year following the 5 February 2023 embargo. The Seajewel is one of the tankers involved, having taken on oil three times in Russia this year (in February, March and May) before returning after each unloading.

MarineTraffic confirmed that the tanker was off the coast of Türkiye and heading back to Novorossiysk.

Meanwhile, the Minerva Pacifica had arrived at the Port of Midia in Romania from Türkiye. According to law enforcement sources, the Minerva Pacifica was loaded twice in Russia this year and made four trips to Russia in 2023.

[Edited by Alexandra Brzozowski/Owen Morgan]

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