River Navigation Resumes Between Egypt, Sudan

A boat transports people along the river Nile in Cairo, Egypt July 2, 2019. REUTERS/Mohamed Abd El Ghany
A boat transports people along the river Nile in Cairo, Egypt July 2, 2019. REUTERS/Mohamed Abd El Ghany
TT
20

River Navigation Resumes Between Egypt, Sudan

A boat transports people along the river Nile in Cairo, Egypt July 2, 2019. REUTERS/Mohamed Abd El Ghany
A boat transports people along the river Nile in Cairo, Egypt July 2, 2019. REUTERS/Mohamed Abd El Ghany

Sudan’s Wadi Halfa River Port, which borders Egypt, started receiving Egyptian imports on Wednesday through units and river barges transported between the Port and Aswan High Dam.

This comes after a four-month suspension due to the precautionary measures taken by the Sudanese government which closed the crossings and borders to limit the spread of the new coronavirus.

The port received a number of Egyptian imports through the vessels and units that belong to the Egyptian-Sudanese Nile Valley Authority for River Navigation.

The Sudanese government announced in mid-June the resumption of trade exchange with Egypt through Ashkeet border crossing, after nearly a three-month standstill.

Head of the Authority’s office in Wadi Halfa Mahmoud Abd El Motaal said about 2,000 tons of cement have arrived during the past two weeks from the High Dam to Halfa, expecting further 1,500 tons of urea fertilizer to arrive soon through Wadi Halfa port.

The Nile Valley Authority for River Navigation is an Egyptian-Sudanese organization that transports passengers as well as goods. It was established in 1975 as the only international transporter in Nasser Lake.

The volume of trade exchange between Sudan and Egypt is estimated at one billion dollars annually, and Egyptian investments in Sudan are estimated at $10.1 billion.

The two African countries have been planning to construct roads and railways to facilitate trade and transport through joint border crossings, in line with their attempts to double the volume of trade between them to reach $1.5 billion.



Oil Slips as Iran-Israel Conflict Enters Sixth Day

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
TT
20

Oil Slips as Iran-Israel Conflict Enters Sixth Day

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices fell on Wednesday, after a gain of 4% in the previous session, as markets weighed up the chance of supply disruptions from the Iran-Israel conflict and as they ponder a direct US involvement.

Brent crude futures fell 93 cents, or 1.2%, to $75.52 a barrel by 0918 GMT. US West Texas Intermediate crude futures fell 88 cents, also 1.2%, to $73.96 per barrel.

US President Trump warned on social media on Tuesday that US patience was wearing thin, and called for an "unconditional surrender" from Iran.

While he said there was no intention to kill Iran's leader Ali Khamenei "for now," his comments suggested a tougher stance toward Iran as he weighs whether to deepen US involvement.

A source familiar with internal discussions said one of the options Trump and his team are considering included joining Israel on strikes against Iranian nuclear sites.

A direct US involvement threatens to widen the confrontation further, putting energy infrastructure in the region at higher risk of attack, analysts say.

"The biggest fear for the oil market is the shutdown of the Strait of Hormuz," ING analysts said in a note.

"Almost a third of global seaborne oil trade moves through this chokepoint. A significant disruption to these flows would be enough to push prices to $120 [a barrel]," the bank added.

Iran is OPEC's third-largest producer, extracting about 3.3 million barrels per day (bpd) of crude oil.

Meanwhile, Iranian ambassador to the United Nations in Geneva Ali Bahreini said on Wednesday that Tehran has conveyed to Washington that it will respond firmly to the United States if it becomes directly involved in Israel's military campaign.

Markets are also looking ahead to a second day of US Federal Reserve discussions on Wednesday, in which the central bank is expected to leave its benchmark overnight interest rate in the range of 4.25% to 4.50%.

However, the conflict in the Middle East and the risk of slowing global growth could potentially push the Fed to cut rates by 25 basis points in July, sooner than the market's current expectation of September, said Tony Sycamore, market analyst with IG.

Lower interest rates generally boost economic growth and demand for oil.

Confounding the decision for the Fed, however, is the Middle East conflict's potential creation of a new source of inflation via surging oil prices.

US crude stocks fell by 10.1 million barrels in the week ended June 13, market sources told Reuters, citing American Petroleum Institute figures on Tuesday. Official Energy Information Administration data is due later on Wednesday.