India Fears Oil Spill as Cargo Ship Sinks in Arabian Sea
Indian authorities and coast guard were mobilized on Monday to contain an oil spill after a cargo ship sank off India’s West coast this weekend, leaking marine fuel and fuel from containers. Liberia-flagged container vessel MSC ELSA 3 sent a distress signal to authorities on Saturday, May 24, the Indian Coast Guard said. The vessel departed from the port of Vizhinjam Port on May 23, bound for Kochi with ETA on May 24. However, following the distress signal, the vessel capsized and sank in the early hours of May 25, reportedly due to flooding in one of the holds, the coast guard said on Sunday. All 24 crew were rescued safely. The vessel was carrying 640 containers, including 13 containing hazardous cargo and 12 with calcium carbide. Additionally, the ship had 84.44 metric tons of diesel and 367.1 metric tons of furnace oil in its tanks. The Indian Coast Guard has activated a comprehensive Pollution Response preparedness and is working in close coordination with the administration of the Indian state of Kerala to address all possible scenarios. Coast Guard aircraft equipped with advanced oil spill mapping technology are conducting aerial assessment of the affected area. On Sunday, the state government of Kerala issued an alert to all Kerala coastal areas to warn of an oil spill. “Besides the oil in the fallen containers, marine fuel used in the ship has also leaked,” the Chief Minister’s Office said in a statement carried by The Indian Express. “As the oil slick can reach anywhere along the Kerala coast, an alert has been sounded across the coastal belt. The containers are drifting in the sea at a speed of 3 km per hour,” the Kerala state authorities added. The state government has banned fishing in an area of 20 nautical miles away from the ship that sunk.
Aramco Considers Asset Sales to Raise Cash
Saudi Aramco is reportedly exploring asset sales as a means of increasing the availability of funds to fuel its international expansion and existing operations, according to unnamed sources who spoke to Reuters. The sources told the publication that the Saudi state major had asked investment banks to come up with ideas on how best to make its assets generate some cash. Another two sources told Reuters the asset sales could help Aramco in its efforts to boost the efficiency of its operations and reduce costs. Aramco on Tuesday reported a drop in 2024 profits and guided for a 30% lower total dividend for this year, which would further strain the finances of the Kingdom of Saudi Arabia. In March, Aramco, which is the world’s single biggest crude producer and exporter, reported a net profit of $106.2 billion for 2024, down from $121.3 billion for 2023 as average oil prices fell last year compared to 2023 levels and as Saudi Arabia continues to curb production as part of the OPEC+ agreement. For the fourth quarter, Aramco’s board declared a base dividend of $21.1 billion, up by 4.2% year-over-year. However, the so-called performance-linked dividend was slashed to just $200 million for Q4, in a sign that low oil prices are starting to bite. Aramco is the biggest contributor to Saudi Arabia’s budget revenues and a vital source of funding for government projects. Because the Saudi government is quite ambitious with such projects, the budget breakeven price of oil has gone up to over $90 per barrel—even though Aramco has some of the lowest production costs in the world at its conventional oilfie.ds Because of this high breakeven, Saudi Arabia’s budget deficit hit $15.6 billion in the first quarter of this year—more than half of what the finance ministry has forecast for the full year.
Oil Prices Rise as Trump Extends EU Tariff Deadline
Crude oil prices began trade with a gain this week following the news that President Donald Trump had extended the deadline for a trade deal with the European Union to early July. The extension was granted to Brussels after Commission president Ursula con der Leyen said the EU needed more time to draft a deal and after Trump said he’d slap 50% tariffs on EU imports beginning next month because the EU deal was so slow in coming. “A nice push higher in crude oil and U.S. equity futures this morning after U.S. President Trump extended the deadline,” IG analyst Tony Sycamore told Reuters. At the time of writing, Brent crude was trading at $64.96 per barrel and West Texas Intermediate was changing hands for $61.68, both up from Friday, after posting yet another weekly loss last week on the prospect of a nuclear deal between the United States and Iran, and more production from OPEC+. The second factor, by the way, is keeping a lid on prices, countering bullish developments such as the tariff delay for the European Union. There have been reports that OPEC+ will add another 411,000 barrels daily to its combined output in July after agreeing to add the same amount in June. Due to the perception of an oversupplied market, this prospect is having an extended negative effect on prices. Meanwhile, the latest round of talks between the United States and Iran regarding the latter’s nuclear program ended on Friday in Rome with what media perceived as limited progress. Both sides are sticking to their conditions but both appear to be open to further negotiations. “We have just completed one of the most professional rounds of talks … We firmly stated Iran’s position … The fact that we are now on a reasonable path, in my view, is itself a sign of progress,” Iranian Foreign Minister Abbas Araqchi told media as quoted by Reuters. “The talks continue to be constructive – we made further progress, but there is still work to be done,” a U.S. official whom Reuters did not name said. This suggests that it may still be a while until Iranian crude returns to global markets without restrictions, so the next oil price slump is not yet around the corner.
Saudi Aramco eyes asset sales for expansion amid lower oil prices: Report
Saudi state oil giant Aramco is exploring potential asset sales to free up funds, two people with knowledge of the matter said, as it pursues an international expansion and weathers lower crude prices. Aramco is the world’s largest oil-producing company and the main source of Saudi state revenue. The firm will slash dividend payouts by nearly a third this year as lower oil prices hit its income. The company has asked investment bankers to pitch ideas for how to raise funds from its assets, the people said. They declined to say which assets could be sold or name the banks involved. Aramco is looking to improve efficiency and cut costs, according to two other people with knowledge of the matter, and an option under consideration would be asset sales, one of them said. The four sources declined to be named because they are not authorised to speak to media. Aramco is the engine of the Saudi economy and its sprawling business includes units for aviation, construction and sports.