Friday, 14 April 2023

Singapore bunker sales rebound in March

Sales of marine fuel, also known as bunker fuel, recovered at top refuelling hub Singapore in March as vessel calls for bunkering reached more than two-year highs, official data showed Friday.

Bunker sales are an indicator of sentiment at one of the world's most major ports and demand also affects fuel oil refining margins in Asia.

Singapore's bunker sales in March rose to 4.18 million tons, up 10%MoM and 11%YoY, Maritime and Port Authority data showed.

The rise reflected increasing vessel calls for bunkering, which hit more than two-year highs at 3,476 calls in March.

Demand improved after a lackluster February, when sales hit eight-month lows.

Lower upstream crude oil prices in March, which led to lower outright prices for bunkers, encouraged slightly more buying inquiries, trade sources said.

Volumes rose in March for all key bunker grades, including low-sulphur fuel oil, high-sulphur fuel oil and marine gasoil.

Bunker sales of LSFO grades totaled 2.58 million tons, up 10%MoM, the data showed.

Sales of HSFO grades totaled 1.24 million tons, up 11% from February while marine gasoil sales rose 9% to 330,200 tons.

 

 

Quds Day being observed under radically changed conditions

Today, Quds Day is being observed around the globe with mass anti-Israel protests. The founder of the Islamic Republic of Iran, Imam Khomeini, initiated the day of solidarity with Palestine on the last Friday of Ramadan. 

Israel is witnessing growing resistance against its colonialism, most significantly over the past year, from the occupied West Bank. 

Gone are the days when Israeli troops enjoyed the freedom to raid West Bank towns and villages to ethnically cleanse the Palestinians residing there. 

Today, newly formed armed resistance factions by the West Bank youth have changed the equation and are taking the battle to Israel's occupation troops.

They are conducting armed retaliatory operations against the regime's occupation including at its many military checkpoints scattered across the West Bank. Those retaliatory operations have struck the heart of the occupied territories, Tel Aviv.

They are also refusing to surrender to the regime's almost daily pre-dawn invasion of Palestinian towns and villages. Instead, these youths are confronting Special Forces in armed clashes, battles that usually last several hours. 

Their refusal to surrender explains the high Palestinian death toll. Israeli forces have murdered around 100 Palestinians so far this year.

It's no wonder Israel plans to set up a "National Guard" (described as a settler militia) to handle the West Bank resistance. 

That's how Israeli media described a photo published on April 9, 2023 of a meeting between the Secretary General of Lebanon's Hezbollah Sayyad Hassan Nasrallah and Ismail Haniyeh, the head of the Hamas political bureau. 

The two leaders met in Beirut to discuss the readiness of the axis of resistance and to further expand their cooperation in light of Israel's terrorism these days at al-Aqsa Mosque in occupied al-Quds (Jerusalem).

The meeting between Lebanon's Hezbollah and the Hamas movement in the besieged Gaza Strip to expand and improve cooperation will be seen as a major concern among the security apparatus of the Zionist entity.

The salvo of missiles fired from Palestinian refugee camps in Southern Lebanon and the Gaza Strip in response to Israel’s desecration of al-Aqsa Mosque (Islam’s third holiest site) indicated one key element.

The regime responded by striking farmland in Lebanon and airstrikes in the Gaza Strip for one night. In both attacks it was careful not to kill anybody as it cannot afford a wider conflict with the Palestinian resistance.

It also cannot embark on a war with Hezbollah as it knows very well the powerful resistance movement has weapons that can strike deep inside all occupied territories, including precision missiles that can hit very sensitive sites, including Israel’s Dimona nuclear weapons plant.

The same can be said about the Gaza Strip. Israel cannot afford a conflict with the Palestinian resistance in the blockaded coastal enclave as the resistance has missiles in its hands that can hit vital Israeli infrastructure and humiliate the regime.

With the power of the resistance in Lebanon and Gaza significantly growing, Israel can’t even wage a war to divert attention from the crisis the entity is witnessing from within.

There have been mass protests by Israelis against their new coalition’s plans to overhaul the regime’s so-called judicial system.

Hundreds of thousands of Israelis have taken to the streets and clashed with forces in protest against the proposed measures by Prime Minister Benjamin Netanyahu’s ultra-orthodox and fascist cabinet.

Such is the extent of the fighting within Israel and warnings by the regime’s President and other officials of a civil war, Netanyahu’s cabinet was forced to postpone the plans for a month.

But as the English say, he is stuck between a rock and a hard place.

If Netanyahu drops his overhaul plans, he could end up in prison for corruption charges as well as members of his fragile coalition withdrawing, which would mean an end to his majority in the Israeli Knesset.

That would result in fifth election in less than five years. There has never been so much internal division within Israel’s 75 years of occupation of Palestine. Nevertheless, Netanyahu needs to keep his cabinet at any cost. This explains the vicious storming into al-Aqsa Mosque and committing terror on innocent worshipers in a desperate bid to appease the settlers.

If there is anything that brings a smile on the settler’s faces, it is footage of the occupation troops mercilessly attacking women and men inside al-Aqsa Mosque. But again, this comes with its ramifications that Israel will face in the near future.

So much is the division over Netanyahu’s overhaul plans of the judiciary that even segments in nearly all of the regime’s military armed forces and units withdrew from crucial training, which Israeli military officials, in turn, said poses a direct threat to the existence of the occupation.

In another major setback for Israel, its staunchest supporter, the United States has lost its clout in West Asia as witnessed by the recent detente between Iran and Saudi Arabia as well as the steady restoration of ties between Syria and the Arab world. 

In a sign of how developments are quickly changing in West Asia, a Saudi delegation travelled to the Yemeni capital Sana’a for talks with the head of the popular Ansarullah revolution, not the other way round.

This was not the case two decades ago, when Washington had major influence on the region. That influence is now shifting to the countries in West Asia itself. 

Alongside that, such is the fascist language being publicly broadcast by the minister in Netanyahu’s cabinet, that it has forced the US to end its decades long protocol of inviting a new Israel’s Prime Minister to the White House within two or three months.

Netanyahu, who assumed power again in January is still waiting for an invitation to hold talks with President Joe Biden. And he may have to wait longer.

On March 28, when Biden stressed he is not going to invite the Israeli prime minister to Washington “in the near term”, Netanyahu publicly hit back at the US President, underscoring the tense relationship between the current White House and the Israeli occupation.

However, it all goes back to the indigenous people of the land.

On Sunday Syrian President Bashar al-Assad pointed out that the Palestinian nation’s perseverance has pushed the occupying regime to the brink of collapse.

Israel has never been in a fragile state (pardon the pun) as it is now, facing so many crises from within and from the developments in the region as well as the international community as it continues to pursue its extremely racist agenda. 

 

Thursday, 13 April 2023

Lula backs replacing US dollar in foreign trade

Brazil’s Luiz Inacio Lula da Silva called on BRICS nations to come up with an alternative to replace the US dollar in foreign trade, supporting China’s crusade against US global dominance just as he prepares to meet with President Xi Jinping in Beijing. 

Lula’s remarks were made on Thursday during a visit to the Shanghai-based New Development Bank, an institution created by BRICS countries, which, along with Brazil and China, include Russia, India and South Africa. Former Brazil President Dilma Rousseff is the bank’s new chief executive

 “Why can’t an institution like the BRICS bank have a currency to finance trade relations between Brazil and China, between Brazil and all the other BRICS countries?” he said. “Who decided that the US dollar was the (trade) currency after the end of gold parity?” 

Beijing has ramped up efforts to boost the use of its own currency in foreign trade. Last month, Brazil and China took steps to make it easier to settle their foreign trade operations in yuan or reais, with the stated goal of reducing costs by eliminating a third currency from the transactions. 

Brazil’s Finance Minister Fernando Haddad, who’s accompanying Lula in his trip to China, said local currencies are already used in bilateral trade through instruments such as credit receipts. The goal, he added, is to expand mechanisms that allow trade operations to be settled without the intermediation of a third currency. 

“The advantage is to avoid the straitjacket imposed by necessarily having trade operations settled in a currency of a country not involved in the transaction,” he told reporters in Shanghai.

 Courtesy: Bloomberg

Saudi Arabia launches Special Economic Zones

According to Saudi Gazette, Crown Prince and Prime Minister Mohammed bin Salman, who is also chairman of the Council of Economic and Development Affairs, launched on Thursday four new Special Economic Zones in Saudi Arabia.

The announcement about the new economic zones, which are located in Riyadh, Jazan, Ras al-Khair and King Abdullah Economic City, north of Jeddah, is line with the Crown Prince’s commitment to strengthening Saudi Arabia’s prime position as a global investment destination.

In a statement carried by Saudi Press Agency, the Crown Prince said, “Saudi Arabia is open for business, and welcomes investors from all around the world to see first-hand the historic opportunities we have to offer. The new Special Economic Zones, launched today, will significantly impact how business is done in the country, create tens of thousands of jobs, and contribute billions of riyals to our GDP.”

The new zones draw on Saudi Arabia’s strategic location at the heart of global trade, creating new hubs for businesses across key growth sectors to launch and scale the companies and technologies that will shape the future. The Special Economic Zones (SEZs) will support existing national strategies and create new linkages with international frameworks, building on the competitive advantages of each region to support key sectors including logistics, advanced manufacturing, technology and other priority sectors for the Kingdom.

Benefits for companies operating in the new SEZs include competitive corporate tax rates, exemption from customs duties on imports, production inputs, machinery and raw materials, 100 percent foreign ownership of companies, and flexibility to attract and hire the best talent worldwide.

The new SEZs will provide tremendous opportunities to develop the local economy, generate jobs and localize supply chains. They represent a continuation of the Kingdom’s long-running initiatives to transform into a global investment destination, and a vital hub for global supply chains, capitalizing on its position at the heart of global trade routes, at the crossroads between East and West. With a detailed program of regulations and incentives, these SEZs offer rewarding and attractive offers for foreign investment. This program will allow for the acceleration of the required reforms to facilitate doing business in all parts of the Kingdom.

These four SEZs build on previous free zone initiatives in the Kingdom, including the recent launch of the integrated logistics special zone at King Salman International Airport in Riyadh. Together, they represent the first phase of a major, long-term program aimed at encouraging foreign direct investment, attracting the most talented professionals from around the world, and promoting entrepreneurship and economic development within the Kingdom.

The Special Economic Zones, regulated by the Economic Cities and Special Zones Authority, provide new solutions to the challenges facing many global businesses as they look to localize and strengthen their supply chains. They will help the Kingdom take advantage of key macroeconomic shifts to create a truly differentiated business environment, activating new sectors and value chains, the SPA reported.

Pakistan Stock Exchange average daily trading volume posts 24.1%WoW decline

The benchmark index of Pakistan Stock Exchange closed the week ended on April 13, 2023 with a dip of 0.47%WoW. Despite Pakistan’s completion of all prior actions, the resumption of the IMF program is still awaited. According to news sources, the pain point between Pakistan and the IMF of late is commitments from friendly countries.

Furthermore, the circular debt of power sector increased by PKR419 billion during 8MFY23, taking the total circular debt to PKR2.67 trillion despite increasing electricity tariffs.

With the interest rates at 21% and uncertainties regarding the country’s economic position, participation remained lackluster during the week, with daily volumes averaging at 83 million shares during the week, as compared to 110.18 million shares in the prior week depicting a decline of 24.1%WoW.

Other major news flows during the week included; 1) IMF drastically cuts Pakistan’s FY23 growth forecast to 0.5%, 2) IMF projects fall in GoP gross debt to 73.6% of GDP, 3), March workers’ remittances hit 7-month high of US$2.5 billion, 4) RDA inflows cross US$6 billion mark, 5) SBP raises via auction for PIBs, and 6) Banks’ deposits increase by 15% YoY to PKR23.56 trillion.

The top performing sectors were: Commercial Banks, Technology and Communication, and Closed-End Mutual funds, while the least favorite sectors were: Vanaspati & Allied industries, Textile Weaving, and Tobacco.

Top performing scrips were: FABL, LOTCHEM, KOHC, SCBPL, and MUGHAL, while laggards included PSEL, EPCL, GLAXO, AIRLINK, and PAKT.

Flow wise, individuals were the major buyers with net buy of US$0.21 million, while companies were major sellers, with a net sell of US$0.35 million.

Any news flow regarding materialization of the commitments from friendly countries will put the IMF program back on track and will support the market sentiment.

According to recent news flow, Pakistan is likely to receive US$ one billion financing commitment from UAE. NEPRA has approved positive tariff adjustment of 47 paisas to recover PKR15.45 billion from customers during 2QFY23 under QTA—likely to keep the circular debt in check.

With this backdrop, the market is expected to remain range bound, with any news regarding the IMF program, including an Staff Level Agreement, would lead to a euphoric move in the market.

Saudi Arabia breaking away from the US orbit

The geopolitics of oil has been upended in just three years, with the emergence of a Saudi Arabia-Russia link that has the potential to cause a raft of problems for the US economy.

This month’s OPEC Plus decision to cut crude output — for the second time since US President Joe Biden flew to Saudi Arabia last summer seeking a boost — may be just the start, says Ziad Daoud and Courtney McBride report.

The April 02 announcement lifted oil prices by about US$5 a barrel and crude on Wednesday went on to hit the highest closing price this year. It was already clear last week that recession risks were bigger than they otherwise would have been — because consumers spending more on energy will have less cash left for other stuff — and inflation would be higher. 

But even more significant is what the OPEC Plus move says about the likely path of oil prices over the coming years. The bigger takeaway is that Saudi Arabia is breaking away from Washington’s orbit.

Saudi Arabia sets oil production levels in coordination with Russia. And there’s a newly tight relationship with the other giant US strategic rival — China. That was on display when Beijing brokered a deal to ease tensions with the Saudis’ regional rival, Iran, with the US out of the loop.

In other words, Western influence over the oil cartel is at its lowest point in decades. Most analysts now anticipate that crude prices will average above US$80 a barrel over the coming years — well above the US$58 seen over the 2015-21 period.

For the global economy writ large, lower oil supply and higher prices is bad news. The major exporters are the big winners, of course. For importers, like most European countries, more expensive energy is a double blow — dragging on growth even as inflation rises.

The US falls somewhere in between. As a major producer, it benefits when prices rise. But those gains — unlike the pain of higher pump prices — aren’t widely shared.

 

Wednesday, 12 April 2023

Ukraine asks Pentagon for fighter jets

Ukrainian Prime Minister Denys Shmyhal on Wednesday directly appealed to Defense Secretary Lloyd Austin for US fighter jets and longer-range missiles in its fight against Russia, echoing the country’s repeated calls for modern weaponry.

“We will win this war,” Shmyhal said at the top of a meeting between the two at the Pentagon. “But to achieve it faster and with fewer casualties, Ukraine still needs intensive military support — more air defense systems that minimize the impact of Russian airstrikes, more heavy artillery, mortars and ammunition for them. We also ask you for reconsider the possibility of providing Ukraine with longer range missiles.” 

Austin, while not commenting on the request, committed to investing in the US defense industrial base to further ramp up production for weapons sent to Ukraine. 

Ukraine since the start of Russia’s invasion a little more than a year ago has pressed the United States and NATO for advanced fighter jets to protect the country’s skies. 

While some NATO states including Slovakia and Poland have agreed to send Soviet-era MiG-29 fighter jets to Ukraine, Western countries have so far held off on sending the more advanced F-15 and F-16 fighters Kyiv is asking for.  

The Biden administration has not been swayed by Slovakia and Poland’s pledges to send its own jets, saying that the choice is a “sovereign decision.” 

Kyiv has also asked for longer-range missile systems in the fight, though the US government has held off on supplying such weapons over concerns Ukraine may use them to strike targets within Russia, which is against US policy.  

At Wednesday’s gathering, which marked the second Pentagon meeting between Austin and Shmyhal, the Ukrainian official thanked Washington for its significant military support, including sending Abrams tanks and Bradley and Stryker infantry fighting vehicles, according to a readout of the meet up. 

But he also asked Austin for more heavy equipment and aircraft.  

“In modern warfare, air superiority is crucial,” Shmyhal said. “That is why Ukraine is initiating the building of a new, so-called fighter jet coalition. And we are inviting the United States to become its most important participant. America can once again demonstrate its leadership by providing Ukraine with F-15 or F-16 aircraft.” 

Austin, in turn, thanked Ukraine for making sure US lethal aid already provided is accounted for.