Russia encourages Turkey, Armenia to improve relations

The end of the conflict in the Nagorno-Karabakh region paves the way for improvement in Turkish-Armenian relations, Russia’s foreign minister said on Friday.

Speaking at the New Knowledge Forum in Moscow, Sergey Lavrov said Ankara and Yerevan should resume efforts towards normalization after Armenia and neighboring Azerbaijan signed an agreement on Nagorno-Karabakh last year.

“The parties saw the process of resolving the Nagorno-Karabakh issue differently. But now, when the war in Nagorno-Karabakh is over, there are grounds for unblocking the political process, transport, and economic ties, it would be logical if Armenia and Turkey resumed efforts to normalize relations,” the minister said.

Russia is ready to actively support this process, he added.

On Thursday Russian Foreign Ministry spokeswoman Maria Zakharova also said Russia always supported the normalization of Armenian-Turkish ties and has in the past participated in mediation efforts towards this end.

She noted that Russia welcomed the signing of the Zurich Protocols in 2009, which suggested a gradual improvement in relations between Armenia and Turkey without preliminary conditions.

“Along with the normalization of Azerbaijani-Armenian relations in the context of the implementation of the statements signed by the leaders of Russia, Azerbaijan, and Armenia on November 9, 2020, and January 11 this year, this (normalization between Armenia and Turkey) would work for peace, stability, and prosperity in the region,” she said.

Relations between the former Soviet republics of Azerbaijan and Armenia have been tense since 1991 when the Armenian military occupied Nagorno-Karabakh, also known as Upper Karabakh, a territory internationally recognized as part of Azerbaijan, and seven adjacent regions.

When new clashes erupted on Sept. 27, 2020, the Armenian army launched attacks on civilians and Azerbaijani forces and violated several humanitarian cease-fire agreements.

During the 44-day conflict, Azerbaijan liberated several cities and nearly 300 settlements and villages from the nearly three-decade occupation.

On Nov. 10, 2020, the two countries signed a Russian-brokered agreement to end the fighting and work toward a comprehensive resolution.

On Jan. 11, the leaders of Russia, Azerbaijan, and Armenia signed a pact to develop economic ties and infrastructure to benefit the entire region. It included the establishment of a trilateral working group on Karabakh.

The cease-fire is seen as a victory for Azerbaijan and a defeat for Armenia, whose armed forces withdrew in line with the agreement.

Prior to this victory, about 20% of Azerbaijan’s territory had been under illegal occupation for nearly 30 years.

Source: Anadolu Agency

Oil mixed over weaker dollar, US crude oil inventory data

Oil prices were mixed on Friday, as demand heightened with support from a weak US dollar and a more-than-expected drop in US crude inventories in the past week, although the US job report to be released later Friday, which is expected to be weaker than forecast, is keeping prices under pressure.

International benchmark Brent crude was trading at $73.12 per barrel at 0723 GMT for a 0.12% increase after closing Thursday at $73.03 a barrel.

American benchmark West Texas Intermediate (WTI) traded at $69.94 a barrel at the same time for a 0.07% decline after ending the previous session at $69.99 per barrel.

The US dollar index, which measures the value of the American dollar against a basket of currencies including the Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, fell 0.02% to 92.20 on Friday.

The falling value of the dollar encourages oil-importing countries to buy more crude oil at lower dollar prices, driving up crude prices.

According to the latest data released by the Energy Information Administration on late Wednesday, US crude oil inventories fell more than expected by 1.7% during the week ending August 27.

Inventories decreased by 7.2 million barrels to 425.4 million barrels compared to the market expectation of a 2.8 million-barrel draw, signaling more demand to propel higher prices.

However, the OPEC+ decision to pump more oil into the market is limiting price gains. The group, in its latest meeting on Wednesday, agreed to stick to the existing production policy by approving an incremental increase of up to 400,000 barrels per day each month up to the end of this year.

Investors are now focusing on the upcoming US monthly jobs report for August to be released later Friday with expectations that the results will be weaker than forecast.

The Department of Labor had announced last month the addition of 943,000 jobs to the US economy in July, beating market estimates of 870,000. The unemployment rate also exceeded market expectations with a fall of 5.4%, as opposed to the predicted 5.7%.

Source: Anadolu Agency

Turkey’s daily power consumption down 3.09% on Sept. 2

Turkey’s daily electricity consumption decreased by 3.09% on Thursday compared to the previous day, totaling 1,004,436 megawatt-hours, according to official figures of the Turkish Electricity Transmission Corporation (TEIAS) on Friday.

Hourly power consumption peaked at 47,729 megawatt-hours at 12.00 local time (0900 GMT), data from TEIAS showed. The country’s electricity usage dropped to its lowest level of 34,456 megawatt-hours at 07.00 local time (0400 GMT).

Electricity production amounted to 1,014,828 megawatt-hours on Thursday, marking a 3.07% decrease from Wednesday.

Turkey’s electricity production from natural gas plants constituted 39% of total electricity consumption, imported coal plants contributed 16.7% while lignite plants comprised 12.1%.

On Thursday, Turkey’s electricity exports amounted to 17,217 megawatt-hours, while imports totaled 6,976 megawatt-hours.

By Busranur Begcecanli

Source: Anadolu Agency

Fitch raises Henry Hub, Euro natural gas price assumptions

Fitch Ratings has increased its natural gas price assumptions for 2021 and 2022 due to strong year-to-date prices, recovering demand and supply challenges, the agency announced Thursday.

The most significant increases are to the European Title Transfer Facility (TTF) gas price assumptions and to the British NBP.

According to Fitch Ratings, TTF/NBP gas prices will now be $10 for a thousand cubic feet (mcf) for 2021 relative to $6 per mcf in the previous estimate. The Henry Hub price assumption also increased from $2.45 to $3.4.

The agency said the current record-high spot prices are driven by extreme weather conditions this year, low gas inventories in storage, strong demand in Asia, recovering demand in Europe and insufficient additional supplies.

Fitch said US gas prices have also benefited from heightened weather-driven demand, as well as US dry and associated gas production discipline. LNG and Mexico export demand also remains strong in the US.

‘Inventory is about 174 billion cubic feet below the five-year average as a result. We believe these factors will support pricing over the next 12-18 months, but expect a normalisation of demand and potentially weaker producer discipline to result in a return to mid-cycle pricing in 2023 and thereafter,’ it added.

Source: Anadolu Agency

Flame gas and LNG energy congress to be held in Amsterdam in November

Europe’s largest gas and LNG event, Flame, will run from Nov. 2 to Nov. 4 in Amsterdam.

The conference will hold special days focusing on topics from LNG during the LNG Summit Day to trade in the Traders’ Day and female participation in the industry during the Women at Flame event.

Flame’s speakers include Christina Verchere, CEO of OMV Petrom, Didier Holleaux, president of Eurogas, Zeynep Harezi, COO of Karpowership, Mark Gyetvat, CFO of Novatek, Tom Summers, general manager of Shell and Elena Burmistrova, deputy chair of Gazprom.

The conference will cover many topics, including gas demand updates, European supplies, Russian gas, LNG, the hydrogen economy, storage and sector developments.

Jonathan Stern, chairman of the Oxford Institute for Energy Studies, will make the opening remarks at the conference in which participants from more than 60 companies are expected to attend to listen and engage with more than 200 experts.

Source: Anadolu Agency

Spot market electricity prices for Saturday, Sept. 4

The highest electricity price rate for one megawatt-hour in Turkey’s day-ahead spot market for Saturday will be 674 Turkish liras at 20.00 local time (1700 GMT), while the lowest will be 373.17 liras at 06.00 local time (0300 GMT), according to official figures on Friday.

Turkey’s Energy Exchange Istanbul (EXIST) data for the trade volume on Friday’s electricity market showed a decrease of 6.9% to 297.71 million liras compared to Thursday.

The arithmetical and weighted average price of electricity on the day-ahead spot market is calculated as 489.08 liras and 488.64 liras, respectively.

The electricity price for one megawatt-hour on the day-ahead spot market for Friday is set as 674 liras between 19.00 and 21.00 (1600 GMT and 1800 GMT), while the lowest will be 369.87 liras at 06.00 local time (0300 GMT).

US$1 equals 8.30 Turkish liras at 1110 GMT on Friday.

Source: Anadolu Agency

Spot market natural gas prices for Thursday, Sept. 2

The trade volume of Turkey’s spot natural gas market increased by 39.7% to 4.47 million Turkish liras on Thursday, Turkey’s Energy Exchange Istanbul (EXIST) data showed on Friday.

Total trade on Wednesday amounted to 3.20 million liras.

On Thursday’s spot market, 1,000 cubic meters of natural gas cost 2,184 liras, while the cumulative natural gas trade volume amounted to 2.04 million cubic meters.

Turkey received 142.7 million cubic meters of pipeline gas on Thursday.

US$1 equals 8.30 Turkish liras at 1105 GMT on Friday.

Source: Anadolu Agency

Russia favors talks to end conflict in Afghanistan’s Panjshir Valley

The Russian foreign minister Friday expressed hope that the confrontation between the Taliban and resistance group in the Panjshir Valley in Afghanistan will be solved peacefully.

Speaking at New Knowledge Forum in Moscow, Sergey Lavrov said: “I hope the latest confrontation in the north of Afghanistan in the Panjshir Valley will end soon, giving way to negotiations.”

Moscow actively promotes a dialogue among all ethnic and religious groups in Afghanistan, the minister said, adding: “Without negotiations among all the key players, including Pashtuns, Tajiks, Uzbeks, and Hazaras, nothing can be solved there. And trying to claim that the Taliban are not the main players is not very realistic.”

The Taliban seized control of Afghanistan on Aug. 15, forcing former President Ashraf Ghani and other top officials to leave the country. The Panjshir Valley in the north is the only territory not under the Taliban’s control. Negotiations have so far failed and there are conflicting reports on clashes.

Home to the country’s largest ethnic Tajik population, Panjshir was defended by commander Ahmad Shah Massoud during the Soviet-Afghan war in the 1980s.

His son Ahmad Massoud, and Bismillah Mohammedi, the defense minister in Ghani’s Cabinet, are now leading the resistance against the Taliban.

Source: Anadolu Agency

Djokovic marches to US Open 3rd round

Serbian tennis superstar Novak Djokovic defeated Dutch player Tallon Griekspoor to qualify for the US Open third round on Friday.

World no.1, Djokovic defeated Griekspoor with the sets 6-2, 6-3, and 6-2 in New York.

Meanwhile, Wimbledon finalist Matteo Berrettini beat Corentin Moutet 3-1, while Denis Shapovalov claimed a 3-0 win against Roberto Carballes and Jannik Sinner win over Zachary Svajda with a 3-1 score.

In women’s singles, 2016 US Open finalist Karolina Pliskova advanced to the third round after beating Amanda Anisimova with the sets 7-5, 6-7, and 7-6.

2019 US Open champ Bianca Andreescu beat Lauren Davis, while 2016 US Open title winner Angelique Kerber defeated Anhelina Kalinina.

French Open finalist Anastasia Pavlyuchenkova moved to the next round after defeating Anna Karolina Schmiedlova with a 2-1 result.

Source: Anadolu Agency