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Gold prices rise on bargain-hunting ahead of Fed minutes
The gold price rose on Wednesday, as traders looked for bargains after the previous session's losses. Meanwhile, the market is still focused on the minutes of the Federal Reserve's newest policy meeting that will be released later in the day. Gold spot gained 0.4% by 8:56 am EDT (1255 GMT) to $3,312.05 per ounce, after hitting a low of $3285.19 in the previous session. U.S. Gold Futures increased 0.3% to $3310.60. The gold market has been choppy lately, only reacting to daily fundamental news with no real trending in price. Jim Wyckoff said that the market is nearing its top. The minutes can move the market. The market watchers will be looking for new comments about inflation this afternoon." The minutes of the Fed’s May policy meeting will be released at 2 pm EDT (1800 GMT). The meeting was held amid increased concern about global trade tensions following President Trump's announcement in early April of new major import tariffs. A week later, some of the most aggressive import tariffs were reduced or delayed. Gold has risen 26% this year, and reached a record-high in April. It is a good investment in low interest rate environments and can be a haven in times of uncertainty. Goldman Sachs suggested on Wednesday that long-term portfolios should include a higher allocation of gold than usual, citing increased risks to U.S. institution credibility, the Fed's pressure, and continued central bank demand. The focus is also on Friday's Personal Consumption Expenditures data (PCE) and comments by U.S. Central Bank officials. Data showed that gold imports into Switzerland from the United States rose to their highest level monthly since at least 2012. This was after precious metals were excluded from U.S. tariffs on imports. Silver spot fell by 0.3%, to $33.20 per ounce. Platinum rose 0.8%, to $1,088.65, and palladium dropped 0.6%, to $972.36. (Reporting and editing by Jan Harvey, Emelia Sithole Matarise, Ashitha Shivaprasad)
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Grossi: Any US-Iran agreement should include a 'robust IAEA inspection'
Rafael Grossi, the chief of the International Atomic Energy Agency (IAEA), said that any deal between Iran and America which would impose new nuclear restrictions on Iran must include "very rigorous" inspections from the U.N. watchdog. Both countries are currently holding talks to curb Iranian nuclear activities, which have accelerated rapidly since Donald Trump pulled Washington from a 2015 agreement between Iran and major power that limited these activities. Iran increased its enrichment of uranium purity as the deal unraveled. Up to 60% The deal has increased the amount of nuclear weapons-grade material to approximately 90%, up from the 3.67% that was allowed under the 2015 pact. The deal also removed the extra IAEA supervision imposed by that 2015 agreement. Grossi said that "my impression is that, if you had such an agreement, then a robust, solid inspection by the IAEA would be a requirement, and I am sure that it will be. Because it would mean a very, serious commitment from Iran, that must be verified." He did not say that Iran should resume the implementation of the Additional Protocol. This is an agreement between IAEA member states and the IAEA which broadens IAEA supervision to include quick inspections of undeclared nuclear sites. Iran implemented the deal under the 2015 agreement, up until the U.S. withdrawal in 2018. Grossi responded that he was "very practical" and added that the subject of the talks did not include the protocol. Grossi said that the IAEA was not a part of the discussions, but he had been in contact with both sides including Steve Witkoff, the U.S. Special Envoy. "I don't believe they are talking about it in this way. I don't think the discussion is about whether or not legal norms should be applied. Grossi said that he tends to view this more as an ad-hoc approach. Grossi says that while the talks appear to be stuck, the U.S. has repeatedly said Iran shouldn't be allowed to refine any uranium, and Tehran insists that this is a redline since enrichment of uranium is their inalienable rights, Grossi believes that the gap can be bridged. He said, "I believe there is always a solution." It's not impossible for the two sides to be reconciled. (Reporting and editing by Sharon Singleton, Mark Heinrich and Francois Murphy)
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Russian Finance Minister returns to idea of adjusting the oil price budget rule
The Finance Minister Anton Siluanov stated on Wednesday that an adjustment to the $60 oil price cut-off for Russia's Budget Rule should be considered. This could affect Moscow's capacity to increase spending and accumulate cash reserves. According to the budget rule the Finance Ministry can sell foreign currency from the National Wealth Fund for rainy days in order to cover any shortfalls in oil and gas export revenues, or purchase it if there is a surplus. Siluanov, who had earlier argued in favor of a change to the cut-off prices, has recently ruled it out for the budget for the next three years. In response to a question from a legislator on Wednesday about Russia's diminishing reserves, he seemed to switch tack again, saying that the issue would be considered when formulating budget policies. Siluanov stated that "we need to consider whether we should, when preparing the budget for the next medium-term period, look at the price cut-off level... and to what extent this corresponds to today's levels which allow us to not only ensure the preservation of National Wealth Fund but also its replenishment." Since the Russian invasion of Ukraine in February 2022, Russia's fiscal buffers are shrinking. Moscow has been using its wealth fund to finance deficits and support government-owned enterprises. On May 1, the fund's liquid assets were $40.4 billion, down from $112.7 before the invasion. Oil prices, which are the foundation of Russia's export oriented economy, allow Russia to put money aside. However, with Brent futures at about $60 per barrel and Urals crude falling even further, Moscow's finances have been under pressure. The lower price would enable Russia to save petrodollars. However, analysts note that this may not be possible, given the amount of money Moscow is spending on the Ukraine war. Reporting by Darya Kosunskaya, Writing by Alexander Marrow, Editing by Alison Williams & Helen Popper
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The Russian central bank defends its high interest rates while warning of the risks associated with oil prices
In a report published on Wednesday, the Russian central bank defended their tight monetary policies, saying that high rates contributed to a slower lending pace and signs of deflation. However, they cited low oil prices for a major risk to the Russian economy. The central bank has been battling high inflation for months, and has resisted the growing pressures to lower borrowing costs. At the same time, critical companies have cut back on their investment plans, while government officials are complaining about a slowing economy. On Monday, Economy Minister Maxim Reshetnikov said that the cooling economy faced "hypothermia", and urged the Central Bank to consider the slowing inflation when they next meet to set interest rates in June. In a review of financial stability, the bank said that "tight monetary policies are a temporary factor and necessary for a sustained reduction in inflation." It has kept its key interest rates at 21% since last October. The central bank sought to cool the overheating caused by the military spending boom in the past two years with higher rates. The growth of Russia's domestic product slowed from 4.5% to 1.4% during the first quarter. The bank stated that external conditions are still difficult. It cited risks such as global market volatility and trade wars, along with the possibility of increased sanctions towards Moscow. The bank warned that further drops in the prices of Russia's export products, notably oil, could be a "key" risk for Russia. Price drops can affect exporting companies' revenue and, therefore, the budget. The bank stated that the overall risk to financial stability is limited because of Russia's low level of debt and its reserves, which were accumulated over years with high oil prices. The bank stated that the increased credit restructuring of large and medium-sized Russian firms at the end March was only a temporary phenomenon, expressing its confidence that most companies are resilient to interest rate risks. The bank stated that banks should still conduct regular stress testing to ensure the stability of corporate loan portfolios.
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Poland will seek a partner for a second nuclear reactor in June
Poland will start selecting a partner in June for its second planned nuclear power plant, said the country's top energy security official on Wednesday. Wojciech Wrochna, Deputy Minister of Industry, had said previously that the process would begin in January. Poland is reducing its coal reliance and has chosen Westinghouse Electric for the construction of its first nuclear power plant along the Baltic Sea Coast. Although the financing has not been finalized, work is already underway on a second nuclear plant. "We'd like to find a capital partner but don't know whether we will." We need to confirm the interest. "We want to conclude this dialogue next Year," Wrochna said at a press conference. "We will have a dialog with the market. We will not include a model, or a contractor. We will negotiate the best possible solution in terms of contractor, technology, financing, and operation. We will speak to everyone, including the French, Americans and Canadians," added he. Wrochna stated that the participation by Polish companies in construction of the first nucleus plant would be "crucial" to the negotiations of the contract for engineering and construction with the U.S. contractor, which has already started. The plant will be completed in 2036 instead of 2028, as originally planned. (Reporting and editing by Barbara Lewis, Bernadettebaum, and Marek Strzelecki)
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Tereos warns that low EU sugar prices will make this year difficult for Tereos
Tereos warned on Wednesday of a challenging year as the fall in European sugar and the weak margins of the starch industry are likely to continue to impact results in the first halves of the company's financial year, after the initial bite in 2024/25. The European Union sugar price dropped by 35% between March and the end of last year due to a surplus of sugar in Europe, as well as competition from cheaper Ukrainian sugar. Tereos CEO Olivier Leducq said to reporters that 2025 would be a difficult year. Leducq stated that the EU sugar market will likely rebound due to lower supply, but this would not be noticeable until October or January. Tereos, which is in the starch industry, hopes to take advantage of low grain prices and rebuild margins following two bad years, but this will not happen until 2026. Leducq stated that the world sugar prices which affect Tereos Brazil's large activities were likely to increase, supported by a smaller than expected cane crop in Brazil. However, Leducq added that market conditions remained uncertain. The group reported a 17% decline in sales, to 5,9 billion euros ($6,69 billion), and a 29% drop in earnings before tax, depreciation, and amortization (EBITDA), to 801 millions euros, in the financial period that ended March 31. Sales and EBITDA will reach record levels in 2023/24 due to high prices and improved margins. This is the third-best (core profit result) ever recorded. Leducq said, "If I can achieve that in the next 5 years, I will be a very happy man." Suedzucker (Germany) and Nordzucker (Norway), Europe's largest sugar producers, reported lower earnings. They expect EU prices to rebound only later this year. Tereos’ net debt, a subject of intense scrutiny on the bond markets, decreased to 2.22 billion euro by March 31 from 2.37 billion euro a year earlier.
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Philippines uses mangrove buffer zones to protect its coasts
Negros Occidental is the first to introduce a coastal greenbelt Natural protection against storms, flooding and erosion The Senate is currently considering a bill to create a national coastal greenbelt. By Mariejo Ramos Local leaders, instead of relying on man-made barriers, have re-established natural barriers, such as 100-metre wide strips of vegetation. These include coastal mangroves, beach forest species, and other plants that can protect against storms and erosion. Negros Occidental started establishing its "coastal Greenbelt" in 2022. It was the first network of its kind to be established in the Philippines. The project led to the creation and protection of over 1,000 hectares in Negros Occidental of mangroves and beach forests, as well as wetlands, which serve now to protect against typhoons and coastal erosion, and to reduce the risk of disasters. Negros Occidental's coastal greenbelt can serve as a model to protect the thousands of kilometers of coastline in Indonesia, which is threatened by deforestation, urbanization and climate change. Gloria Estenzo Ramos Vice President of Oceana Philippines, a group dedicated to ocean conservation, said: "Local governments are aware of the benefits that coastal greenbelts can provide in saving lives and property from destruction." According to her organization, more than 90 local governments have passed policies or ordinances designating certain areas of their area as greenbelt zone. Negros Occidental also contains the 89,000-hectare Negros Occidental Coastal Wetlands conservation area, which is home to several endangered species such as turtles and Dolphins. This wetland was declared of international importance by 2016 According to a study conducted by British scientists in 2012, a 100-metre mangrove strip can reduce waves' energy by as much as 66%. Wetland experts have been pushing for similar measures nationwide, and legislators have introduced legislation to create national coastal greenbelts zones. 60% of Filipinos live in coastal areas that are vulnerable to climate catastrophes. The Philippines House of Representatives passed a coastal-management bill unanimously in 2023, which would require coastal towns across the country to establish 100-m greenbelts similar to Negros Occidental. The bill has yet to be approved by the Senate, as it was not deemed a priority. THREATS TO COASTAL Ecosystems According to Wetlands International Philippines, coastal ecosystems such as mangroves, seagrasses and corals are beneficial for both rural and urban Filipinos. These coastal protections have been under threat for many decades. In the 1990s, nearly half of the 450,000 hectares (or 1.2 million acres) of mangroves in Philippines were gone. Kisha Murana, Wetlands International Philippines' policy and advocacy officer, stated that mangroves were cut down because of "destructive coastal projects like reclamation". Muana said that the bill will help the government to monitor the greenbelts and identify areas where they could be restored. She said that there are some areas of the Philippines where mangroves do not cover the required 100 metres to block wave energy. The law could force these territories to add beach forests to make up the difference. Julie Ann Bedrio is the provincial environmental officer for Negros Occidental. She said that proposed developments such as land reclamation projects and wind power had a greater impact on coastal areas than individual vegetation cutting. Bedrio also said that coastal areas had suffered from a lack of enforcement of coastal laws, as well as pollution caused by marine litter. This includes plastics wrapped around mangrove stems or trunks. Bedrio added that the establishment of a greenbelt zone network in Negros Occidental helped to encourage dialogue between local leaders, NGOs, and environmental experts, so they could monitor and, if necessary, block projects which might harm coastal environments. First Line of Defence Greenbelts were recognized by the International Union for Conservation of Nature (a conservation group) as an important solution to some coastal problems including wind and sea erosion as early as 2007. The proposed policy in the Philippines would require the creation of coastal greenbelts that are based on the vulnerability to storms surges, tsunamis, and other threats. It would also create a plan for protecting coastal biodiversity. Oceana's Ramos, who is a member of Oceana, said that she believes the bill will be passed quickly as soon as the Senate resumes its session in June. Oceana has been invited to join the technical working group which will examine the current version. Bedrio stated that local governments are using limited funds to implement policies for coastal greenbelts. It would be helpful if they were supported by the national government with financial or technical support. The environmental officer is still haunted by thousands of deaths caused by Yolanda or Haiyan in 2013. He hopes that coastal greenbelts become a legislative priority.
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EDF France announces the closure of Cordemais coal power plant by 2027
EDF, a French power company, will decommission two of the four power-producing units at the Cordemais Coal Plant in Western France by May 31, 2027. The company is also looking into using the site as a nuclear pipe facility. The Cordemais Coal Plant is one of France's last coal-fired plants. It is operated mainly during winter, when the demand for electricity to heat homes increases. The utility said it has started a study to build a nuclear pipe plant on site. It is expected to be operational by the end of 2028 and employ 200 people. The company is planning to expand its nuclear fleet. It's working on funding six new reactors that a nuclear pipe plant could provide. EDF announced in September that it had cancelled plans to convert a coal-fired plant into a biomass power plant because the project's technical and economic requirements were not met. (Reporting and editing by Forrest Crellin, Sudip Kar Gupta)
Trump's climate withdrawal creates uncommon discord with Huge Oil
U.S. oil and gas manufacturers are thrilled that President Donald Trump wants to motivate domestic energy development however state his choice to withdraw the United States from worldwide environment cooperation will not help their financial investment plans in the global transition to cleaner energy.
The position reflects an uncommon note of discord in between Trump and Big Oil, one of his most important constituencies and long considered the top bad guy behind climate change for pumping and selling the nonrenewable fuel sources driving planetary warming.
Removing the United States from the Paris climate offer for the second time was amongst a flurry of first-day relocations by Trump targeted at pumping up currently record high domestic energy production, sending a signal to the rest of the world the U.S. will no longer participate in multilateral efforts to combat climate change.
He called the decade-old pact to limit global warming a rip. off that puts the U.S. at a competitive downside to China.
Big U.S. oil companies, however, think the withdrawal just. limits Washington's capability to affect an ongoing international. energy transition and exposes them to an unequal regulative. environment, according to Reuters interviews with industry. agents.
Marty Durbin, president of the U.S. Chamber of Commerce's. Global Energy Institute representing U.S. energy business, said. its members would have chosen Trump keep the U.S. associated with. the pact.
While we prefer that the U.S. federal government remain participated in. the UN climate procedure, the private sector is devoted to. developing the solutions necessary to fulfill the energy requirements of a. growing worldwide economy while attending to the environment difficulty,. he stated.
Bethany Williams, a spokesperson for the American Petroleum. Institute - whose members consist of Exxon Mobil and. Chevron - stated the group has long supported the. aspirations of the Paris Contract.
Exxon's CEO Darren Woods had actually made an early plea to the. newly-elected president at the COP29 climate top in. Azerbaijan in November to keep the U.S. in the Paris pact,. saying the cycle of exiting and returning to the agreement would. produce long-term policy uncertainty for business.
Exxon and other huge oil companies are preparing long-term. financial investments in technologies planned to eliminate climate change,. consisting of green hydrogen and carbon capture, while likewise. browsing choices about new oil and gas expedition.
Exxon and Occidental did not react to requests for. remark. Chevron and ConocoPhillips declined to comment.
Asked about the Paris withdrawal order, the president of the. American Exploration and Production Council (AXPC), representing. U.S. independent drillers, said it was very important for U.S. industry to be part of the international environment discussion.
It's important that any conversation about addressing. environment modification must be international in nature, and also acknowledge that. America is the world leader in both energy production and. emissions reductions, said AXPC CEO Anne Bradbury.
A shift in the U.S. power industry far from coal has. added to an approximately 17% decrease in U.S. co2. emissions considering that 2007, according to government data.
Environment liability threat specialist Wynne Lawrence of. insurance coverage law firm Clyde & & Co stated policy volatility around. global climate participation puts U.S. business at danger.
The U.S. withdrawal from the Paris Climate Contract will. boost regulatory uncertainty, developing increased complexity. and, potentially, cause legal conflicts as companies handle. the resulting uncertainty around shift methods across. international groups and supply chains, stated Lawrence.
In the last few years, oil majors had actually started sending out executives to. annual UN climate conferences, where they promoted financial investments in. tidy energy tasks and cuts in the operating emissions.
Frank Maisano, senior principal at law practice Bracewell, which. represents energy market clients, said it makes little sense. to quit a seat at the table.
U.S. markets in all sectors continue to buy new. innovations and innovations that are driving the international energy. transition in such a way that lowers emissions and safeguards our. economy, he stated. We must be screaming that success story. from every rooftop and in every venue..
(source: Reuters)