Russia's Ukraine invasion supercharges push to make a new green fuel

 A nearly 450% jump in European gas prices the past year made the green fuel of the future cost-competitive about a decade ahead of schedule

Europe’s push to wean itself off Russian natural gas is sparking billions of dollars in new commitments toward building a market for low-carbon hydrogen. A nearly 450% jump in European gas prices the past year made the green fuel of the future cost-competitive about a decade ahead of schedule, according to BloombergNEF. Now, investment funds are joining governments and utilities in ambitious plans to make hydrogen a viable substitute for fossil fuels in manufacturing, transportation and heating. “It’s kind of a tipping point,” said Phil Caldwell, chief executive officer at Ceres Power Holdings Plc, a U. K.-based hydrogen technology company. “You’re going to see that capital coming in on a big scale now. There’s no turning back.”

Russia is ostracized on the world stage for invading Ukraine, but some of the harshest critics still need its oil and gas to keep their economies running. Europe is quickening efforts to break that addiction, with Fortescue Metals Group Ltd. planning a $50 billion project for the hydrogen supply chain with German energy giant E. On SE; Norway’s Scatec ASA building a $5 billion production plant; and investment fund Hy24 earmarking $1.6 billion for infrastructure….

Ukraine conflict: Oil surges on Russia nuclear alert as sanctions intensify

 The nuclear alert and bank payment constraints heightened fears that oil supplies from the world’s second-largest producer could be disrupted

Oil prices jumped more than $7 in early trade on Monday after Russian President Vladimir Putin put the country’s nuclear deterrent on high alert in the face of Western nations and Japan stepping up sanctions against Russian banks.

The nuclear alert and bank payment constraints heightened fears that oil supplies from the world’s second-largest producer could be disrupted as Russia digs in following its invasion of neighbouring Ukraine conflict. Brent crude futures were up $5.46 or 5.6%, at $103.39 at 2331 GMT, after hitting a high of $105.07 a barrel shortly after trade opened. Last week the benchmark contract hit a more than seven-year high of $105.79 after the invasion began.

U.S. West Texas Intermediate (WTI) crude futures were up $5.64, or 6.2%, at $97.23 a barrel, after hitting a high of $99.10 shortly after opening. WTI hit a high of $100.54 last week. Putin raised the stakes on Sunday, ordering Russia’s “deterrence forces” – which wield nuclear weapons – onto high alert, citing aggressive statements by NATO leadrs and the range of economic sanctions imposed on Russia by the West….

Oil crashes on Saudi's biggest price war in 20 yrs; Brent drops to $33/bbl

A meeting of main producers was expected to agree to deeper cuts to counter the impact of the new coronavirus — but Moscow refused to tighten supply

Oil plunged more than 20 percent Monday after top exporter Saudi Arabia propelled a value war in light of a disappointment by driving makers to strike an arrangement to help vitality markets. The two principle contracts both lost about a fifth of their incentive in morning Asian exchange, with West Texas Intermediate sliding to about $32 a barrel and Brent unrefined to about $33 a barrel.

Saudi Arabia jump started a hard and fast oil war on Sunday with the greatest cut in its costs over the most recent 20 years, Bloomberg News detailed, after a disappointment via cartel OPEC and its partners to secure an arrangement to cut creation. A gathering of principle makers was required to consent to more profound slices to counter the effect of the new coronavirus – however Moscow would not fix supply. Accordingly, the Gulf powerhouse cut its cost for April conveyance by $4-6 a barrel to Asia and $7 to the United States, with Aramco selling its Arabian Light at an exceptional $10.25 a barrel not as much as Brent to Europe, Bloomberg said. Jeffrey Halley, senior market examiner at OANDA, said that “Saudi Arabia appears to be determined to rebuffing Russia.

“Oil costs… will probably be topped throughout the following not many months as coronavirus slows down monetary development, and Saudi Arabia opens the siphons and offers tremendous limits on its unrefined evaluations.” Worldwide markets had just fallen intensely as of late because of fears about the coronavirus, which has executed thousands and has spread far and wide since rising in China before the end of last year. Tokyo stocks were hit intensely hit at the open Monday on fears over the infection and the dive in oil costs, with the dollar down against the yen.

Saudi Arabia to invest $100 billion in India, eyes long-term partnership

Vision 2030 of Crown Prince Mohammed bin Salman will also result in significant expansion of trade and business between India and Saudi Arabia

Saudi Arabia, the world’s biggest oil exporter, is looking at investing $100 billion in India in areas of petrochemicals, infrastructure and mining among others, considering the country’s growth potential. Saudi Ambassador Dr Saud bin Mohammed Al Sati has said India is an an attractive investment destination for Saudi Arabia and it is eyeing long-term partnerships with New Delhi in key sectors such as oil, gas and mining.

“Saudi Arabia is looking at making investments in India potentially worth $100 billion in the areas of energy, refining, petrochemicals, infrastructure, agriculture, minerals and mining,” Al Sati told PTI in an interview. He said Saudi Arabia‘s biggest oil giant Aramco’s proposed partnership with Reliance Industries Ltd reflected the strategic nature of the growing energy ties between the two countries.

The envoy said investing in India’s value chain from oil supply, marketing, refining to petrochemicals and lubricants is a key part of Aramco’s global downstream strategy. “In this backdrop, Saudi Aramco’s proposed investments in India’s energy sector such as the $44 billion West Coast refinery and petrochemical project in Maharashtra and long term partnership with Reliance represent strategic milestones in our bilateral relationship,” he said….

Rupee slumps to 71-mark first time ever, drops 26 paise against US dollar

Forex dealers said besides robust month-end demand for the American currency from oil importers, dollar's strength against its rival currencies on expectations of rising interest rates amid lingering

The rupee slumped to a fresh record low of 71 against the dollar for the first time ever by falling 26 paise on persistent demand for the US currency amid rising crude prices.

At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 70.95 a dollar and slipped further to hit its lifetime low of 71 from its previous close of 70.74.

Forex dealers said besides robust month-end demand for the American currency from oil importers, dollar's strength against its rival currencies on expectations of rising interest rates amid lingering Sino-US trade tensions, weighed on the domestic currency.

On Thursday, the rupee slid further by 15 paise to close at a fresh lifetime low of 70.74 to the dollar due to strong demand for the greenback from oil importers and surging crude oil prices stoking inflation fears.

Growing fears about rising inflation in amid high global crude oil prices and consistent outflow of foreign funds from the domestic equity market also weighed on the domestic currency.

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Mumbai petrol price up for 15th day in a row to Rs 86.08/l; crude oil down

In line with petrol, the price of diesel also increased -- to Rs 69.17 a litre in Delhi, and Rs 73.64 in Mumbai

 

Retail fuel prices in India continue to burn a hole in pockets, with the cost of petrol increasing for a 15th consecutive day on Monday to touch a new high of Rs 78.27 a litre in Delhi, up from Rs 78.12 per litre a day before. This, incidentally, happened on a day when the global crude oil price showed a decrease. On Monday, petrol prices in Mumbai stood at Rs 86.08 a litre, in Kolkata Rs 80.76 and in Chennai Rs 81.11. In line with petrol, diesel prices also increased -- to Rs 69.17 per litre in Delhi and Rs 73.64 per litre in Mumbai.

Following the Karnataka polls and the 19-day fuel price freeze from April 24, oil marketing companies opted for a price rise for petrol and diesel. On May 15, the price of petrol was increased by 17 paise a litre and that of diesel by 21 paise a litre in Delhi. The petrol price was seen at Rs 74.80 per litre, the highest since September 2013, and diesel was seen at Rs 66.14 per litre.

Amid the rise in fuel prices, crude oil futures fell 2.73 per cent to Rs 4,485 per barrel on Monday, in line with the weak trend overseas as the market eyed an increase in output from top crude producers -- Russia, the US, and Saudi Arabia.

The brent crude futures were at $75.34 per barrel, down $1.10, or 1.4 percent, from their last close.

Hope on the horizon

The government said it is likely to levy a 'windfall tax', in the form of a cess, on companies like Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) for any revenue that they earn from prices crossing $70 a barrel.

Subsequently, the revenue collected will be used to pay retail majors like Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) to absorb the fuel price hike.....Read More

Congress demands roll back of 5% GST on LPG cylinder

LPG has been put in 5% GST slab, earlier a 2 to 4% VAT was imposed on LPG in some states

 

The Congress on Tuesday demanded that the five per cent Goods and Services Tax (GST) levied on domestic LPG cylinder be removed as it was burdening the poor.

"The price of domestic LPG cylinder has gone up by Rs 32 in parts of the country after the GST became effective. This is affecting common people, the poor especially. We demand that the GST on domestic LPG cylinder be removed immediately," senior AICC spokesperson Ajay Maken told reporters here.

LPG has been put in the five per cent GST slab. Earlier a two to four per cent VAT was imposed on LPG in some states.(Economy news)

Maken accused the government of not passing on the benefits of drop in global crude oil prices to people of the country.

"The government is making profits to the tune of Rs 3 lakh crore every year by not slashing prices of fuel here. On the one hand, it is making profits and on the other, it is burdening the poor by imposing GST on the LPG cylinder," Maken added.

He claimed food and beverages, helmets, hair oil, tooth paste, tea, coffee, butter, curd, cement and mineral water are some of the items prices of which have shot up, notwithstanding the government's assurance that their rates will drop once the GST is in force.

Maken also described the GST as 'Gayi Savings Tumhari' (your savings have vanished).

The GST came into force on July 1.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)