Latest News
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Duke Energy wants to increase prices in North Carolina for winter power costs
Duke Energy is seeking approval from North Carolina regulators for an increase in 'its prices' and to recover $800 million more from its customers due to a?higher cost of fuel and power during a severe winter cold snap. On Wednesday, the company said it was attempting to recover winter power and fuel costs of about $500 million for Duke Energy Carolinas and $309 million for Duke Energy Progress. If approved, this would increase monthly bills from June 1 by approximately $6.90 or $7.88. Duke Energy Carolinas supplies approximately 2.3 million customers throughout central and western North Carolina, while Duke Energy Progress serves about 1.6 millions in the eastern and central parts of the state. The company stated that the extreme cold of late January and early Februar drove the demand for power beyond the existing 'generation and storage capacity. It forced it to purchase additional power at high market rates from neighboring utilities. Duke Energy has proposed spreading recovery over a 19-month period instead of the usual?12 months to minimize the immediate impact on customers. The company said that electricity demand reached a new "winter high" of 37,308 Megawatt-hours on January 27. This was the highest ever recorded level across Duke Energy's Carolinas System. Varun Sahay, Bengaluru. Pooja Deai, editing.
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US warns Iranian oil buyers that sanctions could be imposed
The United States on Wednesday warned that it would sanction any buyers of Iranian Oil and stated its belief that China will stop such purchases if Washington enforces the maritime blockade against Iran. Scott Bessent, U.S. Treasury Secretary, told reporters at White House that "we have informed countries that we will apply secondary sanctions if they are buying Iranian oil or if Iranian money sits in their banks." As the Iran War entered its seventh week, the U.S. began a maritime blockade against Iran on Monday. China had previously purchased more than 80% Iran's oil. Bessent stated, "We are confident that this 'blockade' will cause a halt in Chinese purchases." He added that the U.S. Treasury had also written two Chinese banks, telling them "that if we could prove that Iranian money was flowing through their accounts, we would be willing to impose secondary sanctions." The Chinese embassy in the United States has not responded to a comment request on Bessent’s remarks. The Trump administration has said for years that it will apply "maximum" pressure on Iran regarding its nuclear program and support of militants in the Middle East. However, sanctioned crude oil continues to reach China. On Wednesday, the U.S. Treasury Department imposed?sanctions' on over two dozen individuals and companies, as well as vessels, to target Iran's oil transport infrastructure. Bessent stated that last month, Washington had issued a waiver of 30 days on sanctions against Iranian oil on the sea. This allowed 140 million barrels of Iranian oil to reach global markets to'relieve global pressure on energy supplies caused by war. Bessent confirmed Wednesday that the waiver issued on March 20, which was set to expire on April 19, will not be renewed. This news was reported on Tuesday. The U.S. has also not renewed waivers on Russian oil on the sea that expired on Saturday. The U.S. Treasury also reportedly sent letters to China and Hong Kong as well as the UAE and Oman warning them that if they continue with their illicit Iranian activity, punitive U.S. sanctions will be taken against them.
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The Fletcher Building in New Zealand flags the fuel-related impacts of the Iran war
Fletcher Building, New Zealand, said Thursday that fuel costs remain a major concern, especially diesel. The conflict in the Middle East has jolted the energy markets and caused fuel prices to rise across all divisions. Auckland-based construction material maker says it partially mitigates volatility in fuel costs - which is a major cost driver for materials - by bulk buying, hedging and passing-through pricing mechanisms. The price of oil has risen over $100 per barrel. This is due to the Middle East conflict which has disrupted shipping lanes, raised concerns about supply, and increased fuel, freight, and raw material prices. The company claims that the group uses 'nearly 36 millions litres of fuel per year, with diesel accounting for 94% of total consumption. The company said that its heavy building materials division accounted for over half of the total consumption and the construction division accounted for almost a third. Fletcher Building reported that "price increases in all divisions are modest (1-5%) but more significant (up to 36%) for plastics and include fuel surcharges reflecting the pressure on input costs." Fletcher Building, which has no direct operations within Iran, says it is exposed indirectly through supply chains and freight routes. It also said that macroeconomic factors have an impact on the construction demand in Australasia. Plastics is the area where the company has the greatest?immediate impact, with its unit Iplex in Australia and New Zealand being the most impacted. The company also said that urea used in Fletcher Insulation and its?Laminex business in Australia and New Zealand, as well as in Fletcher Insulation's?Laminex products in Australia and New Zealand are exposed. Sherin Sunny, Bengaluru (Reporting) Maju Samuel (Editing).
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Trafigura signs $1 Billion Oil Prepayment Deal with Gabon
Commodities trader Trafigura announced on Wednesday that it had signed a $1 Billion?prepayment contract with the Republic of Gabon. Under this agreement, Trafigura will receive crude oil deliveries over a period of seven years. Trafigura said that under the agreement it will provide upfront funding to the African nation in exchange for future crude deliveries. It will also act as the "exclusive offtaker" of Gabon’s profit during the term of the deal. Profit oil is the government's portion of oil production, after companies recover their costs. Trafigura stated that the?oil used to support the prepayment would be sourced from multiple petroleum sharing contracts, as well as a variety of assets and operators. In a statement, Dave Gallagher said, "We are delighted to have signed this contract with the Republic of Gabon. This agreement continues our long-standing trading relationship, and contributes to the development agenda of the country." Trafigura also began syndicating part of its exposure to international financial institutions. The agreement aims to "optimise?country oil resources, strengthen foreign?exchange?reserves of the Central Bank,?and facilitate proactive management of the nation's treasury," stated Thierry 'Minko, Minister of 'Economy, Finance, Debt & State Holdings' for the Republic of Gabon. Anmol Choubey in Bengaluru and Anushree?Mukherjee, Editor Nick Zieminski
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A'significant' fire breaks at Viva Energy Refinery in Australia
According to local fire authorities, firefighters have responded to a "significant", "serious"?fire that has occurred at the Viva Energy Group's Geelong Refinery in southern Australia. It was not clear how much damage had been done. The fire was reported around 11 pm local time on the night of Wednesday. Fire?Rescue Vic said that it wasn't yet under control, but that all staff were present. It said that multiple calls reported?explosions or flames?. According to the website of the company, the refinery is capable of processing 'up to 120,000 barrels?of oil each day. The website said that it is one of only two remaining refineries in Australia, employing over 1,100 workers, and supplying more than 50 percent of Victoria and 10 percent for Australia's fuel. Viva Energy Group didn't immediately respond to a comment request. Since the U.S., Israel and Iran attacked Iran in the Strait of Hormuz, Australia has been faced with a fuel security concern. Anthony Albanese, the Australian Prime Minister, said that the government will halve excise taxes on diesel and fuel for three months. This is to help Australian households cope with the cost increase caused by the Iran War. Reporting by Hyunsu Yaim in Barcelona, Preetika Parshuraman and Nick Zieminski. Editing by Chizu Niyama and Nick Zieminski.
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Source: US investigates suspicious oil transactions made before Trump Iran pivot
A person with knowledge of the matter told me on Wednesday that the U.S. Commodity Futures Trading Commission was investigating a number of 'oil futures' trades made shortly before Donald Trump announced a reversal in policy regarding the war in Iran. Source: The CFTC investigation is centered on the trading of oil contracts on platforms owned by CME Group and Intercontinental Exchange. Investigators are examining two 'instances' of oil trades that took place on March 23rd and April 7th, according to this source. The exchanges will provide the data, including the Tag 50 identifications for the entities?behind trades. A spokesperson from the CFTC refused to comment on this matter. Neither ICE nor CME responded to our requests for comment. Experts and legislators are calling for an investigation into the possibility that government information was leaked ahead of time. The 'White House' has warned its staff not to improperly leverage their positions in order to make bets on futures markets in the context of the "ongoing war" in Iran. Investors bet $950 million on oil prices just hours before U.S. announced ceasefire with Iran last week. Last month, the enforcement director of the agency said that they are focused on policing market manipulation and misconduct. This is especially true in energy markets. He said at the time that he was aware of recent'speculations regarding insider trading' in CFTC-regulated market and was "watching".
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Ivanhoe CEO: Ivanhoe has a captive audience on Congo's sulphuric market
Ivanhoe Mines' sulphuric-acid?has a captive audience in the Democratic Republic of Congo. The chemical is soaring due to limited supplies caused by the conflict with Iran. Ivanhoe, a Vancouver-based company, began selling sulphuric acids as a by-product of copper smelting on its Kamoa Kakula project this year to other mine operators in the DRC copper belt who need acid to dissolve ore copper using a process known as leaching. The Middle East has struggled to supply?world markets', causing fears about a global sulphuric-acid shortage. Ivanhoe CEO Marna cloete told a copper industry gathering in Santiago that the DRC alone has an acid market of 2 million metric tonnes per year. "We only produced just over 100,000 tonnes in the first quarter. But that's going out to Glencore and ERG (Eurasian Resources Group)... so it's local," she said. She added that the annual acid production would reach 600,000.00 to 700,000.00 tons when its smelter is running at full capacity. She?added that the local market was more than enough for us to sell. This is because restrictions on exporting Zambian sulphur had prevented?DRC firms from producing their own acid. Cloete said, "Our distribution is captive." Ivanhoe stated in a Monday statement that the Kamoa-Kakula Smelter has ramped up its capacity to 60%, and further expansion is constrained by "a lack of concentrate feed". Ivanhoe stated that the company's high-strength?sulphuric acids were priced at around $500 per ton during the first quarter. Spot prices increased over the course of the three month period.
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Bessent: The U.S. will not renew waivers for Iranian oil and Russian oil
Treasury Secretary Scott Bessent said to reporters that the United States would not be renewing waivers which allowed some Iranian and Russian oil to be purchased without facing U.S. sanctions. Reports on Tuesday stated that Washington will not renew the 30-day waiver for sanctions against 'Iranian Oil at Sea' that expires in this week and that a similar waiver would expire on sanctions against Russian oil over the weekend. We will not renew the general license for?Russian oil and we won't be renewing the?general?license for Iranian oil. This was oil which was in the water before March 11. All of that oil has been used", Bessent told a White House press briefing. The Trump administration has ceased to try to lower global energy prices by using sanctions waivers to increase oil supply. Bessent stated a month ago that the waiver issued by the Treasury Department on March 20 allowed 140 million barrels of oil to be sold globally and relieved pressure during the war. The waiver expires on April 19, 2019. Reporting by Steve Holland, Humeyra Pamuk and David Ljunggren; editing by David Ljunggren
World Bank launches "Water Forward" programme to combat global water stress
Water Forward, a new global initiative launched by the World Bank and top development lenders on Wednesday, is aimed at ensuring that a billion people have access to safe water within four years.
The program aims to increase?investment into?water management, while encouraging governments not to view water as an inexpensive public utility but rather a strategic resource. The World Bank stated that it will concentrate on mobilizing private capital, philanthropic funding and public funding.
Ajay Banaga, the head of the World Bank said that "water is fundamental to how economies operate" in a press release. He added that "delivering reliable water services on a large scale was the task now."
The World Bank estimates that global demand for freshwater will outstrip the supply by as much as 40% by the end decade. Water-related shocks have already cost some countries a number of percentage points in annual economic growth.
Climate change intensifies both droughts and flooding, putting pressure on the public finances and vulnerable populations, especially in rapidly-growing cities. In a report published last year, it was estimated that more than 2.1 billion people do not have access to safe drinking water and over 3.4 billion are without adequate sanitation.
Water Forward will focus initially on 14 countries that are water-stressed - in Africa, the Middle East, and South Asia - and prioritize projects to reduce leakage, modernise irrigation systems, improve wastewater reuse, and expand data-driven plans.
The New Development Bank, Asian Development Bank, European Investment Bank, and Inter-American Development Bank are also involved. The BRICS nations of Brazil,?Russia, India, China, and South Africa established the New Development Bank.
World Bank: 'It estimates that 4 billion people suffer from water scarcity as a result of a combination of unclear government policies and weak regulations, coupled with financially unsustainable utilities.
The Water Forward programme aims to reach more than a billion people with its commitment to provide water security by 2030. (Reporting and editing by Matthew Lewis in London)
(source: Reuters)