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German businesses suffer fallout as Ukraine sanctions take hold

Vladimir Putin and Angela Merkel Alexander Schuke Potsdam Orgelbau has supplied pipe organs to cathedrals and concert halls for almost 200 years, surviving a wave of upheavals including war and nationalisation under the communist regime of the former East Germany. But the economic fallout from the conflict in eastern Ukraine has forced the family-owned company to seek insolvency protection. More On this topic IN EU Economy Its problems arose after Ukrainian and Russian customers failed to pay for two instruments that took months to build, leaving the company some €400,000 out of pocket. “A small company like ours cannot withstand that kind of shortfall,” says Matthias Schuke, chief executive. “We’ve never known something like this. We know Russia as a very reliable partner.” Germany’s close business links with Russia , in part a legacy of its cold war Ostpolitik , were once a source of growth and profits. But […]

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France suspends delivery of Mistral warship to Russia

France has been under pressure to cancel its contract with Russia for Mistral war ships French President François Hollande has suspended the delivery of the first of two Mistral helicopter carriers to Russia “until further notice”, in a toughening of his stance over the controversial arms sale. Mr Hollande, who has been under pressure from western allies to scrap the €1.2bn contract amid escalating tensions with Russia over Ukraine , did not go so far as to cancel the contract, but made its suspension indefinite. “The President of the Republic considers that the situation in the east of Ukraine still does not permit the delivery of the first BPC (helicopter carrying and command vessel),” a statement from Mr Hollande’s office said. More On this story On this topic IN Europe “He has therefore decided that it is appropriate to suspend, until further notice, examination of the request for the […]

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Rosneft Chief Says Russia Can’t Immediately Cut Oil Production

By James Marson MOSCOW–Russia can’t immediately cut oil production, the head of Russia’s state oil company said Tuesday after a meeting with senior officials from other major oil producers. Igor Sechin said Rosneft, the world’s largest listed oil company by output, could postpone some capital-intensive projects, which would have some impact on oil supply. But he said Russia, unlike members of the Organization of the Petroleum Exporting Countries, couldn’t cut production immediately. "The current price level isn’t critical for us," he said in a company statement. Mr. Sechin’s comments come ahead of an OPEC meeting on Thursday where officials will discuss oil policy amid recently falling oil prices. Mr. Sechin, a close ally of President Vladimir Putin, met with senior officials from Saudi Arabia, Venezuela and Mexico on Tuesday. Write to James Marson at [email protected] Access Investor Kit for Rosneft Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=RU000A0J2Q06

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South Stream still on Russian table

Russian energy company Gazprom sees South Stream gas pipeline as the answer to European energy security woes. UPI/Shutterstock/Igor Golovniov ATHENS, Greece, Nov. 25 (UPI) — The planned South Stream natural gas pipeline from Russia is a key element to energy security in Europe, Russia’s deputy foreign minister said. Members of the European Parliament in September passed a resolution calling on member states to cancel planned energy sector agreements with Russia, including the South Stream gas pipeline. Russia is facing pressure from Western powers frustrated with the Kremlin’s policies on lingering crises in Ukraine, a former Soviet republic that hosts most of the Russian gas deliveries for the European market. South Stream is touted by Russia as a way to add diversity to a gas transit network dependent on trilateral ties between Brussels, Kiev and Moscow. "Most of our partners understand that the South Stream is their guarantee of gas […]

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Oil Futures Rangebound, Brent Trades Near $80/bbl Mark

By Eric Yep Crude-oil futures moved in a narrow price range in Asian trade Tuesday even as market chatter intensifies ahead of an OPEC meeting on Thursday. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $75.80 a barrel at 0512 GMT, up $0.02 in the Globex electronic session. January Brent crude on London’s ICE Futures exchange fell $0.04 to $79.64 a barrel. With talks over Iran’s nuclear program getting extended to June next year markets have shifted focus back to the Nov. 27 meeting of the Organization of the Petroleum Exporting Countries in Vienna. The outline of a possible agreement is becoming a bit clearer with smaller oil producers like Iran, Iraq and Libya likely to be excluded from any production cuts, Citi Futures analyst Tim Evans said. He said a bullish scenario of production cuts would push oil prices back […]

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Oil Falls for First Time in Three Days in Run-Up to OPEC

Brent and West Texas Intermediate declined for the first time in three days as investors weighed the odds of a production cut from OPEC this week. Hedge funds have turned less bullish on oil in the absence of any clear signal from the Organization of Petroleum Exporting Countries that it will act to bolster prices. The 20 analysts surveyed last week by Bloomberg were divided, with half predicting a cut and the rest no action. Saudi Arabia ’s Oil Minister Ali Al-Naimi said today it’s not the first time the oil market has been over-supplied. “Whether they are going to cut is up in the air,” said Paul Crovo, a Philadelphia-based oil analyst at PNC Capital Advisors. “I won’t make big bets either way. There is a lot of expectation that OPEC does need to cut. That’s the perception, and it’s going to drive the market.” Brent for January […]

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Oil Prices Slip as Big OPEC Cut Looks Unlikely

A worker adjusts a valve of an oil pipe at Taq Taq oil field in… ENLARGE A worker adjusts a valve of an oil pipe at Taq Taq oil field in Arbil in Iraq’s Kurdistan region. Reuters Oil prices wavered Monday before settling lower on expectations that the coming meeting of the Organization of the Petroleum Exporting Countries would fail to stem a monthslong plunge in oil prices. Light, sweet oil for January delivery fell 73 cents, or 1%, to $75.78 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 68 cents, or 0.9%, to $79.68 a barrel on ICE Futures Europe. Prices rose earlier in the session on news that negotiations between Iran and six world powers to curb Iran’s nuclear program are to be extended past Monday’s deadline. Sanctions on Iranian oil exports, which are keeping hundreds of thousands of barrels of oil […]

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Oil prices slump after Iranian nuclear row continues

Crude oil prices react to word nuclear negotiators unable to reach comprehensive agreement with Iran. UPI/Maryam Rahmanian Negotiators in Vienna were unable to reach a comprehensive agreement aimed at resolving the impasse over Iran’s nuclear research program. British Foreign Secretary Philip Hammond said progress had been made , though it was "not possible to get an agreement by the [original] deadline." Brent crude oil prices moved above the $80 mark in recent trading days, though word of an extension to June for negotiations with Iran pushed the global benchmark price down by about 50 cents to $79.90 for the January contract. Iran secured modest relief from sanctions one year ago during multilateral talks. Under the terms of an agreement, Iran can export about 1 million barrels of oil per day if it maintains its commitment to curb nuclear activity. It’s unclear how sanctions will be enforced following Monday’s agreement […]

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Crude futures settle lower despite Iranian talks extension

Home | News & Analysis | Latest News Headlines | Crude futures settle lower despite Iranian talks extension New York (Platts)–24Nov2014/404 pm EST/2104 GMT Crude futures settled lower Monday after gains fueled by the extension of nuclear talks between Western powers and Iran were pared toward the close of the trading session. The ICE January Brent futures contract settled 68 cents lower at $79.68/b. Prompt NYMEX crude futures settled 73 cents lower at $75.78/b. ICE January Brent traded as high as $80.85/b before settling just three cents above its intraday low. NYMEX January crude swung as high as $77.02/b. NYMEX refined products also finished the day in negative territory. December ULSD futures settled down 90 points at $2.3955/gal, while December RBOB futures closed 2.31 cents lower at $2.0334/gal. The foreign ministers of Iran and the five permanent members of the UN Security Council plus Germany were meeting in Vienna […]

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OPEC Said to Consider Sparing Three Nations From Oil Cuts

OPEC is considering sparing three nations from participating in potential oil-production cuts, two people with knowledge of the proposal said. Saudi Arabia ’s oil minister said he doesn’t anticipate a difficult meeting when the group meets on Nov. 27 to decide its response to slumping crude. Iraq, Iran and Libya wouldn’t have to reduce supplies should the Organization of Petroleum Exporting Countries agree to cut output at its gathering in Vienna, according to the people, who asked not to be identified in line with their national policies. Ali Al-Naimi , Saudi Arabia’s oil minister, told reporters in the Austrian capital today that it’s not the first time the oil market has been oversupplied. Crude prices plunged into a bear market this year amid the highest U.S. oil production in more than three decades and speculation that Saudi Arabia wouldn’t cut output in response to a surplus. Oil-market analysts are […]

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