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Prices of gas in Europe trade within a narrow range due to strong supply
The Dutch and British wholesale prices of gas were in a tight range on Monday due to the strong supply from Norway, and LNG. According to LSEG, the benchmark Dutch contract for August deliveries at TTF hub increased by 0.06 euros to 33.46 Euro per megawatt-hour (MWh) as of 0843 GMT. The contract for the day ahead was up by 0.15 euros at 32.65 Euro/MWh. The British contract for tomorrow's day has dropped by 0.25 pence, to 78.25 cents per therm. Fundamentals remain the same. The fact that Norwegian production is back at normal levels, and the low wind generation expected in the weeks to come will keep prices relatively stable," said Auxilione. LSEG data shows that gas-for-power is increasing across the country in line with the weaker renewable forecasts. A high-pressure period expected in the coming week will cause wind speeds to drop and fall below normal. The Norwegian export nominated volume has increased by 2 million cubic meters (mcm), or 321 mcm/day. The Norwegian holiday season means that maintenance is minimal in July. The day ahead will see prices trading in the recent ranges. Trump tariff uncertainty and confusion could also have an impact on global markets as they fall as the U.S. flagged a delayed tariff without any indication of what may happen," said Wayne Bryan. Donald Trump, President of the United States, said that several trade agreements will be finalised in the coming days. The United States will inform other countries about higher tariffs by July 9 and they are set to go into effect on August 1. The benchmark contract on the European carbon markets was down by 0.65 euros at 71.41 euro per metric tonne. (Reporting and editing by Nina Chestney; Marwa Rashad)
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EU to use 'nature credit' to fill funding gap
The European Commission announced on Monday that it will create rules to "nature credit" farmers and foresters for taking care of ecosystems in order to make their work more profitable. The EU is looking for ways to boost funding for environmental protection without further straining the public budgets already stretched by other priorities such as defence. The EU estimates that it is short of funding for biodiversity protection by 37 billion euros ($43 billion). This is because the EU pays huge subsidies to farmers through its Common Agricultural Policy. It said that the Commission would form an expert group this year, including government officials, farmers, and local communities, to develop methodologies for "nature credit" and fund a project pilot for these credits before 2027. It would allow companies or countries to buy credits from farmers, foresters, and other land managers who protect nature, by planting trees, restoring wetland or switching to regenerative agriculture, for example. The expert group will examine how to certify and regulate a market for nature credits, before deciding if this should be incorporated into EU law. Reporters were told by EU Environment Commissioner Jessika Rosawall that "this is not about turning the nature into a product, but recognising actions which restore and sustain the nature". This idea is similar to a market more developed for "carbon credit", where projects that reduce CO2 emission sell credits to businesses seeking to support efforts against climate change. Carbon credit market is tainted by recent scandals where projects aresuing credits have failed to deliver on the benefits claimed for climate change. Last week, Brussels announced an EU climate goal for 2040 that would allow countries to use international carbon credits for the first time towards the EU target. The Commission stated on Monday that it was aware of "challenges" and "opportunities" highlighted by the carbon credit markets. Kate Abnett reports. $1 = 0.8519 euro
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China's central banks purchases gold for the eighth consecutive month in June
Official data released by the People's Bank of China on Monday showed that China's central banks added gold to their reserves for the eighth consecutive month. China's gold reserves increased to 73.90 millions fine troy ounces by the end June from 73.83 at the end May. China's gold reserves increased to $242.93 Billion at the end last month from $241.99 Billion at the end May, according to central bank data released on Monday. Carsten Menke is an analyst with Julius Baer. He said, "We expect the PBOC will remain a consistent buyer over the next few year, motivated by their desire to diversify away from the U.S. Dollar and - in the extreme case – to be less vulnerable to potential U.S. sanction targeting the dollar." Gold, which is traditionally viewed as a safe haven from economic and political uncertainty, has reached multiple records so far this season on the backs of uncertainty regarding tariffs, interest rate reductions, geopolitical conflict and central bank purchases. The PBOC will be re-established in May 2024. The 18-month gold buying spree has been halted The Chinese demand for gold has been significantly affected. The central bank will resume gold purchases in November 2024. The industry ministry announced in late June that China is implementing a plan to implement 2025-2027. Increase your income By 2027, the country's gold reserves will increase by 5 to 10 percent and its gold and Silver output by at least 5%. A report from the Official Monetary and Financial Institutions Forum shows that one third of central banks manage a total $5 trillion. Plans to increase gold exposure Over the next one to three years, this will be the highest level for at least five years. HSBC, however, said in a report last week that gold purchases by central banks are not a concern. Will moderate Gold could correct closer to $3,000 if it continues to rise. Reporting by Anushree mukherjee, Xiuhao chen and Liz Lee in Beijing. Editing by Louise Heavens & Joe Bavier.
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Sources say that OPEC will complete the voluntary reduction in oil production cut in September.
Five sources claim that OPEC+ producers will approve a big increase in output for September, as they finish unwinding the voluntary output cuts of eight members. They will also allow the United Arab Emirates (UAE) to pump more oil to meet a higher quota. In April, plans to undo cuts of 2,17 million barrels of oil per day (bpd), began with an increase of 138,000 bpd. In May, June, and July, the increase was 411,000 barrels per day (bpd), despite lower oil prices. The group voted on Saturday to approve a 548,000-bpd increase for August. On Monday, five sources familiar with the discussion said that the group will likely approve a September increase of approximately 550,000 bpd when it meets on 3 August. This will bring the total planned return to the market of 2,17 million bpd from the eight member countries: Saudi Arabian, Russia, Kuwait, Oman and Iraq, Kazakhstan, Algeria. The sources also said that the UAE will be able to produce an extra 300,000 bpd as it increases its production quota. (Dmitry Zhdannikov, Maha El Dahan and Dmitry Zhdannikov contributed additional reporting; Dmitry Zhdannikov wrote the article; Jason Neely edited it.)
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Thailand presents new trade proposal that offers zero tariffs for many US products
The Thai Finance Minister announced on Monday that Thailand had submitted a new proposal to the United States. It offered to reduce tariffs to zero for many U.S. imported products in an effort to avoid steep tariff increases on its own goods. Washington has threatened to levy a 36% tax on Thai imports, if no agreement is reached before July 9th when the 90-day period that caps tariffs at 10% for most countries expires. Last year, the United States was Thailand's largest export market, accounting for 18.3%, or $54,96 billion, in total. Washington claims that its trade deficit with Thailand is $45.6 billion. After returning from Washington, where he had held talks, Minister Pichai Chunhavajira said to reporters: "We listened to their feedback and what was important to them, and we have adjusted the trade proposal." Pichai stated that the U.S. Trade Rep's office praised Thailand for its efforts, but suggested minor changes. The improved proposal, he said, includes zero tariffs on many U.S. imported goods and other measures to bring the trade balance with the United States in less than 10 year's time. The proposal also includes a commitment to increasing imports of American products to boost bilateral trade. He said, "It is not only about reducing the tariffs; it's also about further opening up the trade." Pichai stated that "we are not offering zero tariffs across the board but we do offer zero tariffs for a significant number of products." He added, "I think the conditions that we have set are very favorable and should satisfy their needs." Pichai stated that trade talks will continue even after the tariff pause is over, since negotiating terms of trade requires consultations between multiple stakeholders. The top three Thai exports to America were rubber products, computers and teleprinters/telephone sets. The top three U.S. imports were crude oil and machinery, followed by chemicals. Pichai announced earlier that Thailand will import more U.S. gas and lower tariffs for corn imports from the United States. According to the Thai Feed Mill Association, U.S. Corn is subject to an import tax of 73%. PTT Group, the Thai state-owned energy company, signed an agreement in June to purchase 2 million metric tonnes of liquefied gas annually from Glenfarne’s Alaska LNG Project over a period of 20 years. Donald Trump, the U.S. president, has championed this $44 billion project. Pichai said earlier that Southeast Asia's 2nd largest economy could grow by just over 1 percent this year because of the impact U.S. Tariffs. Thailand's economy is struggling with low consumption, rising household debt, slowing tourist numbers, uncertainty in trade and potential steep U.S. Tariffs. The central bank predicted economic growth for this year of 2.3%, after the 2.5% growth in 2016 was below the regional average. Reporting by Orathai Shriring, Kitiphong Thaichareon, and Thanadech Staporncharnchai. Writing by ChayutSetboonsarng. Editing by David Stanway and Martin Petty.
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Trade uncertainty and China's steel production curbs are a result of the iron ore fall.
Iron ore futures fell on Monday, as new concerns about demand pressured the market. This was due to output restrictions at China's main steel production hub Tangshan. The day-traded iron ore contract for September on China's Dalian Commodity Exchange ended 0.68% lower, at 731 Yuan ($101.92), per metric ton. As of 0745 GMT, the benchmark August iron ore traded on Singapore Exchange fell 0.37% to $95 per ton. Tangshan Baochun Data, a provider of information in Tangshan City in northern China, posted a message on its WeChat page on Saturday. The note stated that steelmakers were given notices for production controls related to environmental protection. Tangshan Baochun, a local mill, said that some mills had undertaken maintenance work on their sintering machinery. Analysts noted that this move was expected to reduce demand for iron ore. ANZ analysts noted in a recent note that the markets are also on edge, as the deadline for U.S. trade agreements approaches. Donald Trump, the U.S. president, said on Sunday he was close to finalising a number of trade agreements. He will inform other countries by July 9 that higher tariffs are coming into effect in August. Vietnam, China's largest steel exporter, has implemented an anti-dumping tax of up to 27,83% on certain steel products after a temporary tariff ended. Iron ore prices have been held back by the strong steel margins and the resilient demand in near-term. Data from Mysteel revealed that despite signs of a slowdown, the average daily hot metal production, which is a measure of iron ore consumption, was still at 2,41 million tons as of July 3. This was higher than it had been a year earlier, and despite signs of a softening. Coking coal and coke, the other steelmaking ingredients, also recorded losses. The benchmark steel prices on the Shanghai Futures Exchange dropped. Rebar fell 0.68%, while hot-rolled coils dropped 0.62%. Wire rod dropped 0.99%, and stainless steel declined 0.94%.
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EU delays signing climate pledge with China, FT reports
A top climate official said in comments published by the Financial Times on Monday that the European Union will not sign a joint climate pledge with China during a summit to celebrate a half-century diplomatic relationship. EU climate targets are some of the most ambitious in the world, but have always been based on domestic emission reductions. The bloc has a deadline of mid-September to submit to the UN a new climate target for 2035. Officials from the EU said that Brussels refused Beijing's repeated demands for a climate agreement after the summit between the second and third largest economies of the world, unless China promised to do more to reduce greenhouse gas emissions. Wopke H. Hoekstra, Climate Commissioner told the newspaper: "A declaration is only worthwhile if it also contains content and demonstrates ambition." A spokesperson for the foreign ministry responded to these comments by saying that China has actively promoted green and low carbon development. Mao Ning told a regular press briefing that "we will continue to work together with other countries in order to strengthen international co-operation on climate change and to contribute to green transformation and sustainable human development." China is likely to miss its five-year target of a 18% reduction in carbon intensity. The European Commission has not responded to an immediate request for comment. Reporting by Dheeraj K. Kumar in Bengaluru and Liz Lee in Beijing. Editing by Tom Hogue, Clarence Fernandez
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China's tightening grip on its rare earths sector
Smuggling was rampant in China when China, during a diplomatic spat in 2010, restricted rare earth exports from China to Japan. When China imposed new restrictions on April of this year, it caused shortages in the auto industry within two months, leading to some to stop production. Beijing, through quotas and consolidation, has transformed a sector that was once unruly, accounting for 90% of the rare earth processing capacity into a powerful diplomatic tool. Here's a brief summary of the ways in which the number one producer of rare earths has tightened the grip on the industry. CONSOLIDATION China started its crackdown in the mining and processing sector 15 years ago. There were hundreds of miners. In 2013, ten producers controlled nearly all mining. Today, only two giants are state-owned: China Rare Earth Group (CREG) and China Northern Rare Earth Group High-Tech. David Abraham, associate professor at Boise State University in Idaho, said that the consolidation process, which lasted for more than a decade, gave Beijing greater control while also curbing environmental damage caused illegal and reckless mining. In the past, rogue miner's illegal supply chain delivered ore to non-authorised separation facilities. The finished products were then disguised and sent abroad. In 2014, it was estimated that 40,000 metric tonnes of rare earth oxides had been smuggled abroad. This is half the amount exported by official means. Magnet makers have not been consolidated as much as the upstream mining sector. There are dozens of magnet producers and processors in China, such JL Mag Rare-Earth, and Ningbo Yunsheng. China has introduced a tracking system in its rare earth magnet industry since June. Companies are required to provide information, including customer details and volume of transactions. The ultimate goal is to track the entire chain. QUOTAS China's production quota system (introduced in 2006) has been used to control the supply, along with its consolidation. Quotas are set for mining, smelting, and separation. They are usually issued twice a years and widely monitored to gauge global supply. Beijing has gradually reduced the number of groups eligible for quotas. In 2024, there will only be two state-owned companies, as opposed to six before. China's supply growth has been dramatically reduced since 2024, when the total mining production quota increased only 5.9% annually compared to a 21.4% annual increase in 2023. Analysts and traders predict that mining output quotas will either remain flat this year or increase by as much as 5% compared to 2024. Beijing restricts the export of technology as well. Since long, the tools and methods used to separate and extract rare earths are banned. It extended the ban in late 2023 to include technology used to manufacture rare earth magnets. Staff Reporting; Editing by Lewis Jackson, Sonali Paul
How three European human rights cases could form climate litigation
Does federal government inactiveness on climate change violate human rights?
That is the question the European Court of Human being Rights will for the very first time seek to respond to in Strasbourg, France, as it guidelines on Tuesday on 3 separate climate cases.
The verdicts will set a precedent for future lawsuits on how rising temperatures affect people's right to a liveable world.
The following sets out what is at stake.
WHAT ARE THE SUITS?
Six Portuguese youths are taking legal action against 32 European nations for supposedly stopping working to prevent disastrous climate modification that they state threatens their right to life.
The case, which has actually been described by experts as David v. Goliath, does not ask for monetary payment, however for federal governments to considerably cut emissions.
At the exact same time, thousands of senior Swiss women have argued that their government's woefully insufficient efforts to battle worldwide warming put them at danger of passing away throughout heatwaves.
The ladies's attorneys are seeking a judgment that might require Bern to cut carbon dioxide emissions much faster than planned.
In the third and final case, Damien Carême, a previous mayor of the French commune of Grande-Synthe, is challenging France's. refusal to take more ambitious environment steps.
WHAT RIGHTS MAY HAVE BEEN VIOLATED?
This will be the first time the European Court guidelines on. whether presumably weak environment change policies infringe on. individuals's human rights enshrined in the European Convention.
The Portuguese youths have argued their right to life is. threatened by climate change-driven occasions such as wildfires,. which failure to deal with climate modification especially. discriminates against youths who face the prospect of an. progressively unliveable world.
The Swiss females have actually stated Bern violated their right to life. by failing to cut emissions in line with a pathway that restricts. international warming to 1.5 C (2.7 F).
Their case points out a U.N. Intergovernmental Panel on Climate. Change report that found that females and older grownups were among. those at highest risk of temperature-related deaths during. heatwaves, and uses the candidates' medical records to reveal. their vulnerability.
Carême's application, made in 2019, will assess whether. inadequate government action can amount to an offense of the. right to life, by exposing people's homes to climate risk.
All of us are trying to achieve the same goal, said. 23-year-old Catarina Mota, one of the Portuguese youths. A win. in any among the 3 cases will be a win for everyone.
WHAT COULD THE RULINGS BE?
The 17-judge panel could release very different verdicts for. each case. The judgments can not be appealed.
The three cases are rather unique in regards to who's. bringing the case, which federal government or federal governments is being. taken legal action against, and what the ask is in the case, stated Lucy Maxwell,. co-director of the Environment Litigation Network.
Some of the involved governments have actually argued the cases are. inadmissible. Switzerland has stated it is not Strasbourg's task to. be supreme court on environmental matters or to implement. environment treaties.
The court may choose a case is too tough to fit within. the existing framework of the Court and requires to be decided at a. national level, Maxwell said. The latter is a common result. that could supercharge nationwide responsibility.
The European Court may issue a statement that those. federal governments have actually not adhered to their human rights. responsibilities since their 2030 targets are too weak and not in. line with science, she said.
WHAT CAN A JUDGMENT VERSUS GOVERNMENT ACHIEVE?
A judgment against the Swiss or Portuguese government would. send a clear message that governments have legal duties to. considerably increase their efforts to combat environment modification in. order to safeguard human rights, Maxwell stated.
This ought to lead to those nations revising their 2030. emissions reductions targets.
If countries do not upgrade their targets, additional lawsuits. could be carried out at the nationwide level and courts could. problem financial penalties.
Any failure of governments to comply with domestic court. orders triggers significant guideline of law problems, Maxwell said.
We rely on the compliance of federal governments with national. court orders.
HOW WILL THE RULINGS SET A LEGAL PRECEDENT?
A local human rights court has never before ruled on. environment cases, and the verdicts are likely to be game-changing.
If successful. it would be the most important thing to. happen for the climate in Europe considering that the Paris Arrangement. because it sort of has the impact of a regional European. treaty, said Ruth Delbaere, a senior legal campaigner for civic. movement Avaaz, which has assisted to raise funds to cover the. Portuguese youth's legal costs.
All 3 cases are being chosen by the court's top bench -. called the Grand Chamber - where just cases that raise severe. questions about the Convention's analysis are sent.
The cases' outcomes will for that reason serve as a blueprint for. both the Strasbourg court and national courts thinking about. comparable cases.
Gerry Liston, a senior attorney arguing the Portuguese case,. stated the most impactful outcome would be a judgment that binds. the 32 countries that are Europe's major emitters. They consist of. the European Union and neighbouring nations.
However a judgment versus even simply one nation could be applied. as precedent against all 46 signatories of the European. Convention.
A win could embolden more neighborhoods to bring similar cases. versus federal governments. Similarly, a loss for the complaintants could. deter future legal action.
6 other environment cases have been postponed by the. Strasbourg court pending Tuesday's three judgments, said Joie. Chowdhury, a senior lawyer at the Center for International. Environmental Law.
These consist of a claim versus the Norwegian federal government. that alleges it violated human rights by providing new licences. for oil and gas expedition in the Barents Sea beyond 2035.
Whatever happens today will also have impact beyond. Europe's borders, Maxwell said.
Courts in Australia, Brazil, Peru and South Korea are. considering human rights-based climate cases.
They will be taking a look at what takes place in Europe and there. will be causal sequences well outside, she said.
(source: Reuters)