Crude oil rose for a fourth day yesterday on speculation that demand for oil-based fuels will gain in Europe after a one-day disruption to Russian natural gas deliveries raised concern about the security of energy supplies.
Gas shipments to Poland, Hungary and Austria are returning to normal after Russian gas monopoly OAO Gazprom said it would restore supplies that had been reduced in a dispute over prices with Ukraine. Exports to France, Italy and Germany yesterday fell by as much as 40 percent in the dispute, increasing concern that long-term gas supplies in Europe will be threatened.
"Conflict between Ukraine and Russia will drive up prices of natural gas and this should have some correlated effect on crude," said Dariusz Kowalczyk, senior investment strategist at CFC Seymour Ltd. in Hong Kong. "The only leverage that Ukraine has is that the pipeline to Europe goes through its territory."
Crude oil for delivery next month rose as much as US$0.56, or 0.9 percent, to US$61.60 a barrel on the New York Mercantile Exchange. Oil was up US$0.06 to US$61.10 at 9:14am London time.
Brent crude-oil traded in London gained US$0.14 to US$59.12. Prices rose 40 percent last year, more than the 34 percent gain in 2004.
Natural gas accounts for about 23 percent of Western Europe's energy requirements, according to Fortis Bank. Gazprom Deputy Chief Executive Alexander Medvedev late yesterday promised to resume shipments. The Russian state-run company supplies about 75 percent of European deliveries through Ukrainian pipelines.
Natural gas prices for next day delivery in the UK rose 19 percent yesterday on the APX Gas Exchange. Power prices in Germany, Europe's largest energy user, gained 6 percent, according to Spectron Plc prices on Bloomberg.
European utilities, which are building gas-fired plants to replace ageing coal units, may have to increase output at more expensive oil-fed plants to make up for gas shortages. Natural gas accounts for about a fifth of the power production in the EU, according to the International Energy Agency.
An Emirates flight from Dubai arrived at Taiwan Taoyuan International Airport yesterday afternoon, the first service of the airline since the US and Israel launched strikes against Iran on Saturday. Flight EK366 took off from the United Arab Emirates (UAE) at 3:51am yesterday and landed at 4:02pm before taxiing to the airport’s D6 gate at Terminal 2 at 4:08pm, data from the airport and FlightAware, a global flight tracking site, showed. Of the 501 passengers on the flight, 275 were Taiwanese, including 96 group tour travelers, the data showed. Tourism Administration Deputy Director-General Huang He-ting (黃荷婷) greeted Taiwanese passengers at the airport and
POSSIBILITIES EMERGE: With Taiwan’s victory and Japan’s narrow win over Australia, Taiwan now have a chance to advance if South Korea also beat the Aussies Taiwan has high hopes that the national baseball team would advance to the World Baseball Classic (WBC) quarter-finals after clinching a crucial 5-4 victory over South Korea in a nail-biting extra-inning game at the Tokyo Dome yesterday. Boosted by three home runs — two solo shots by Yu Chang (張育成) and Cheng Tsung-che (鄭宗哲) and a two-run homer by Stuart Fairchild — the triumph gave Taiwan a much-needed second victory in the five-team Pool C, where only the top two finishers would advance to the knockout stage in Miami, Florida. Entering extra innings with the game tied at four apiece, Taiwan scored
STRAIT OF HORMUZ: In the case of a prolonged blockade by Iran, Taiwan would look to sources of LNG outside the Middle East, including Australia and the US Taiwan would not have to ration power due to a shortage of natural gas, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday, after reports that the Strait of Hormuz was closed amid the conflict in the Middle East. The government has secured liquefied natural gas (LNG) supplies for this month and contingency measures are in place if the conflict extends into next month, Kung told lawmakers. Saying that 25 percent of Taiwan’s natural gas supplies are from Qatar, Chinese Nationalist Party (KMT) caucus secretary-general Lin Pei-hsiang (林沛祥) asked about the situation in light of the conflict. There would be “no problems” with
PLANE HIT: The Israeli military said it shot down an Iranian Air Force fighter over Tehran, while an Iranian warship sank off Sri Lanka, with no cause known The US and Israel yesterday hit Iran’s capital and other cities in multiple airstrikes on the fifth day of the war with Iran. Israel targeted the Iranian leadership and security forces, while the Islamic Republic responded with missile barrages and drone attacks on Israel, and across the region. Tehran residents woke to dawn blasts and Iranian state television showed the ruins of building in the center of the capital. The Shiite seminary city of Qom and multiple other cities were also targeted. With fighter jets roaring overhead, those still in Tehran looked anxiously to the skies. One man, who ran a clothing shop,
RSS