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Bangladesh calls for more climate finance support after saying that the $300 billion target falls short
Bangladesh demanded on Tuesday that the $300 billion per year global climate financing goal be increased to meet developing country needs. Tarique Rahman, the Prime Minister of Bangladesh, urged wealthy countries to honor their climate commitments before the next United Nations climate negotiations, which will take place in November. He spoke at the World Economic Forum Annual Meeting of the New Champions, held in Dalian, China. Bangladesh, one of the most vulnerable countries in the world to climate change is looking for'support to finance projects that will help it cope with rising flooding, cyclones and river?erosion, as well as saltwater intrusion. At the U.N. Climate Summit in 2024, countries had agreed to increase their annual climate financing provision to $300 billion. But Rahman said this was not enough to meet mitigation and adaptation requirements of developing countries. He urged a greater?mobilisation' of the U.N.'s Green Climate Fund, and urged government to make climate financing more accessible. He said that the Loss and Damage Fund should move beyond promises to deliver, by providing a predictable and accessible support for victims nations. Rahman said that adaptation measures are crucial for countries such as Bangladesh. They'must stand side by side with emissions reduction efforts.' He cited a number of domestic initiatives, including dredging 12,500 km (12,500 miles) worth of rivers and canals to reduce flooding, and planting 250 million trees. He said that "climate resilience?cannot by built by one country alone." He called for stronger global partnerships in finance, technology, and action. (Reporting and editing by Milla Nissi - Prussak).
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The Economy Minister of Italy says that Italy will not be able to hold elections in April next year.
Giancarlo Giorgetti, the Economy Minister said that Italy could not hold a national election this April as it would not allow enough time for the government to approve plans to devolve greater powers to regional authorities. Giorgetti responded to reports in Italian media and Bloomberg stating that Prime Minister Giorgia meloni could seek elections for April of next year. This would be a few month earlier than the deadline set by autumn 2027. Giorgetti told a conference organized by the newspaper La Verita that we could not vote in April in order to finish 'the parliamentary passage' (of the regional-devolution legislation). The supporters of early elections point out that voting at the end?of Meloni?s term?of office in September 2027 would mean there wouldn't be a full-power government during the budget session?in?October. This is a sensitive time when new financial targets are being set. Giorgetti stated in separate remarks that Italy had a good chance to exit a European Union infringement process this year due to its excessive budgetary deficit. Rome's 2025 deficit, as reported by the national statistics bureau ISTAT on March 1, was 3.1% of its gross domestic product. This is just above the 3% limit set by the?EU. Rome cannot leave this procedure because it limits the fiscal room that can be used. Giorgetti stated that "the match isn't yet over", noting that the 2025 budget deficit could be revised lower at a scheduled review in September. He said he did not believe this would happen, but that he still had hope. Giorgetti said that the government will not extend the reduction in fuel excise duties beyond the current deadline on July 3 due to the recent downward trend of diesel and petrol prices. Giorgetti stated that the measure was no longer needed in light of current circumstances. Since its introduction in March, the measure has been extended several times and reduced in size. This was in response to an energy shock caused by the US/Israeli strike on Iran on 28 February. (Reporting and editing by Gavin Jones, Crispi Balmer and Giuseppe Fonte)
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US announces $17.5 Billion in Conditional Loans for Nuclear Power
The U.S. Department of Energy announced a total of $17.5 Billion in conditional loan for 'utilities and energy companies to purchase reactors, and other infrastructure needed to rebuild U.S. Commercial Nuclear Supply Chain. U.S. Energy Sec. Chris Wright told journalists that the loans would help the U.S. reach its goal of having ten new large-scale reactors under construction by 2030. This could potentially accelerate that timeline by three year. Wright said that this has drawn the attention of both data center hyperscalers - tech giants who run a 'global cloud computing and infrastructure' - and energy companies, as U.S. electricity demand has increased?with rapid expansion of data centers for U.S. artificial intelligence capabilities. Wright told reporters that he was confident these projects would be economically beneficial for utility shareholders, ratespayers, and hyperscalers. Energy Dominance Financing (formerly known as Loan Programs Office) of the Energy Department will provide up to five loans. Each loan will be used to support two Westinghouse reactors with a combined power of 1.1 gigawatts on a particular project site. Westinghouse is partnering with up to five eligible utilities and energy providers nationwide, who will "procure" the reactors and other supply chain requirements at a set price. Wright stated that seven utilities had?expressed an interest to date, but refused to disclose their names or the locations of projects. Westinghouse will jointly own each project with a utility or energy company partner. Each will have to commit $500,000,000 before they can access DOE loan funds. Wright stated that "this is not a dangerous endeavor." (Reporting and Editing by William Maclean, Valerie Volcovici)
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Phillips 66 CEO: Hormuz shipping disruptions could last a while
Mark Lashier, CEO of Phillips 66 in the U.S., said 'on Tuesday that it will take some time for crude supplies to pass through the Strait of Hormuz.' This is because there remains uncertainty about a return to normal shipping activity. The Strait of Hormuz continues to be used on a limited scale, which eases immediate concerns about supply and lowers crude prices. Energy companies monitor how quickly crude flow, inventories, and shipping activity returns to normal. Lashier, speaking at a JPMorgan Conference, said that between 90 and 100 million barrels of crude oil remain trapped in this strait. They will eventually find their way out. We believe that the majority of tanks at shore will be full before crude production can increase significantly. It will take a while to fill up those tanks with crude oil. Lashier stated that the market benefited from a quick response to the Strait of Hormuz disruption. He said this helped prevent crude oil prices from reaching $200 per barrel. Phillips 66 processes primarily North American crudes, including Western Canadian Select grades. It was able, he claimed, to run their?refineries "extraordinary rates" despite the disruption. He said that the company had used waivers under the Jones Act, which allows non-U.S. vessels to transport goods in U.S. waters. It moved refined products from the West Coast to the East Coast and crude oil to the West Coast. The release of fuel from the U.S. Strategic Petroleum Reserve and the low inventory at Cushing, Oklahoma's storage hub, were temporary factors, Lashier said. The Strategic Petroleum Reserve, and the?low inventory at Cushing, Oklahoma's?storage hub were only temporary, said Lashier. We think that there will be a structural change in the crude floor.
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Carnival's forecast for current quarter profits is below estimates due to higher fuel costs
Carnival Corporation forecast third-quarter profits below estimates as fuel prices and geopolitical tensions continue to squeeze margins. Its shares fell about 8% in early trading. After the Middle East conflict, cruise operators who are heavily dependent on fuel oil or marine gas oil have faced a more challenging operating environment. Carnival's second-quarter revenue was also lower than expected. The company said geopolitical instability weighed heavily on bookings. This was particularly true for European itineraries that were close to the conflict. Carnival, the only major U.S. Cruise Operator that does not typically hedge fuel, said it "overcame extreme geopolitical costs and almost 30 percent higher fuel costs" in the third quarter. The revenue of $6.66 Billion for the quarter ending May 31 was below expectations of $6.69 Billion. Carnival has said that its booking position in the second half of this year is higher than it was last year. This is due to the strong demand for luxury travel. "We're now 93 per cent booked for the year, with less inventory left for sale than at this time last years. We are on track to record net yields in the second half 2026," stated CEO Josh Weinstein. According to data compiled by LSEG, the?company's?quarterly earnings per share are expected to be around $1.35. This compares to analysts' expectations of $1.42. It predicted that annual cruise costs adjusted for fuel would be around 2.4%, on a constant-currency basis. This is compared to its previous projection of 3.1%. The shares of peers Norwegian Cruise Line Holdings and Royal Caribbean, who both warned about fuel cost pressures in their first-quarter report, fell by approximately 5% and 2.5%, respectively.
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Sibanye anticipates a 15% decline in global platinum production by 2034
An executive at South Africa's Sibanye Stillwater said that the company expects the?mined?platinum production to fall 15% by 2034 from current levels. The market is also tightening due to a slower-than-expected uptake of electric cars. The use of platinum in autocatalysts is under threat by the increasing number of electric cars, which don't need emission control devices. South African miner, who accounts for 70% of the global platinum production, are hesitant to add new production because they're uncertain about long-term demand. This leads to a decline in output as mineral deposits deplete. Kleantha Pillay is Sibanye’s executive vice-president for sales and marketing. She told analysts that "for?platinum we are looking at around 6.2 million pounds a year by 2019 and we expect this to drop?to just 4.7 million pounds by 2034." According to Johnson Matthey, the global?platinum production is expected to drop to 5.46 millions ounces by 2026 from 5.56million ounces this year. PALLADIUM OUTPUT ALSO EXPECTED TO FALL She said that palladium production, which is a member of the platinum group and can be used to replace platinum in certain applications, will also decline by 15% in 2034 from its current levels. Pillay added that Sibanye predicts electric vehicles will account for 35% of worldwide car sales by 2034. The International Energy Agency had predicted that electric vehicles would have a 50% share of global sales by 2035. Pillay stated that the forecast for battery-electric vehicles has been lowered every year since 2004. She said that the European Union's decision to ease?emission targets last December and the U.S. Environmental Protection Agency proposal to delay enforcement of vehicle emission regulations "buys a little more time for combustion engine". Sibanye said it expected recycled PGMs to remain at the current levels of around 5 million ounces and not materially affect market balances. (Reporting and editing by Jan Harvey; Olivia Kumwenda Mtambo, Nelson Banya)
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What is the "Omega Block" causing Europe's intense summer heatwave?
A weather pattern called an omega block is sustaining the intense heatwave that has engulfed Western Europe and caused more than 40 deaths in France alone. What you need to understand about omega 'blocks' and whether they could be more common in the future due to climate change. What is an 'OMEGA BLOCKS'? The Greek letter O is the shape of an omega block, with a bulge between two low pressure systems that are cooler and warmer. The "blocking element" refers to the way in which warm, high-pressure air becomes stuck. In normal conditions, the Jetstream carries weather systems from west to east. The pressure systems are isolated when the flow is disrupted by an omega block. These'slow-moving patterns' are caused by weaker steering winds, and by temperature contrasts within the atmosphere. This results in hot still air being trapped over the same region. The average lifespan of an Omega block is between 3 and 10 days. However, they can last for several weeks. WHAT HAPPENS WHEN AN OMEGA BLOCKS? Conditions become hot and dry in the?area of high-pressure?in the middle. High pressure suppresses the formation of clouds, which results in clear skies and sunny skies, which allow temperatures to rise. Conditions like this are baking France, Spain and other countries where temperatures have risen above 40 degrees Celsius. Low-pressure zones flanking the hotspot are likely to experience cooler and rainier conditions. According to the UK Met Office, Britain is located on the boundary of a high-pressure system and a cooler air mass in the northwest, causing intense heat in south and east and cooler and wetter conditions north and west. IS CLIMATE CHAIN RESPONSIBLE FOR THIS? Scientists are not yet in agreement on?how climate changes?affect the frequency of events such as this one. Global scientific consensus, however, is that climate change increases the frequency and intensity of heatwaves. Since pre-industrial times, greenhouse gas emissions mainly from coal, oil and gas burning have warmed the earth by about 1.3 C. Heatwaves are more intense when the baseline temperature is higher. Clair Barnes, research associate at Imperial College London in extreme weather, climate and climate, says that Europe now experiences 'heatwaves 2 to 4 degrees hotter than would have occurred without human-caused warming. When patterns such as omega blocks are observed, the heat that results can be much more intense. (Reporting and editing by Richard Lough, Ros Russell and Kate Abnett)
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Gold drops 2% as rate hike bets push dollar to an all-time high
?Gold prices fell on?Tuesday as the U.S. Dollar hit a year-high on expectations of a Federal Reserve rate hike, which outweighed support from softer prices for oil amid progress in U.S.Iran negotiations. By 9:26 am, spot gold had fallen 1.7% to $4118.73 an ounce. ET (1326 GMT). U.S. Gold Futures for August Delivery?fell by 1.6% to $4135.60 an ounce. The U.S. Dollar rose to its highest levels in over a year, Tuesday. This made gold more expensive for buyers from abroad. "At the moment, gold and silver aren't looking at the Middle East." Bob Haberkorn is a senior market analyst at StoneX. He believes that they are more interested in what the Federal Reserve has said over the past week. Investors have increased their bets for interest rate hikes after Kevin Warsh, the new Fed chair, sent hawkish signals against inflation. According to the CME FedWatch Tool, traders now expect a rate increase by December. This is up from the 61% they expected before the Fed's meeting last week. Gold is often seen to be a hedge against rising inflation. However, its non-yielding properties make it less attractive in an environment with high interest rates. The United States has waived its sanctions against Iran for 60 days, starting Monday, following the first round of talks in a new peace agreement, although hostilities continue in Lebanon, according to officials. U.S. Vice-President JD Vance had earlier said that talks with Iranian officials held in Switzerland laid the?good basis for a final deal', and that tanker traffic through the Strait of Hormuz, which was previously clogged, is picking up. Brent crude futures dropped more than 1%, to $77.07 per barrel. Investors now await ?U.S. The?Fed will release its preferred inflation indicator, Personal Consumption Spending data, on Thursday. This information can provide further clues about monetary policy. (Reporting by Sukanya Mitra and Anjana Anil in Bengaluru; Editing by Jonathan Ananda) (Reporting by Sukanya Mitra and Anjana Anil in Bengaluru; Editing by Jonathan Ananda)
Asia's refinery cuts are intensifying due to the war in Iran, putting jet fuel and diesel supplies at risk
Analysts and refinery sources say that Asian refining output is expected to fall in April and may as 'crude imports have hit a decade-low and the Iran War forces refiners into processing lighter grades. This will reduce diesel and jet fuel production by at least 1 million barrels a day.
The Strait of Hormuz closure has had the greatest impact on Asia. This region, which accounts for 37% of global refinery output, and normally sources two thirds of its?crude? from the Middle East. Run cuts at refiners have exacerbated the tight fuel supply in the area and kept prices high.
Kpler's preliminary data shows that crude imports into Asia will fall by 22% annually to 20.40 million bpd, which is the lowest level in 2016. This is despite refiners buying sanctioned Iranian oil and Russian oil on the sea, and paying record prices for alternatives from the Middle East.
The International Energy Agency reported that Asian refineries had to reduce their runs to 29.4 mbpd by 2.7 mbpd, and they are expected to further decrease to 28.6?bpd, and then 28.5 bpd, in April and may, respectively.
Consultancy Energy Aspects predicts that crude processing will drop to 28,4 million bpd by April and 28,7 million bpd by May from 30.4 millions?bpd during March.
Amir Abu Hassan is a senior oil analyst with consultancy FGE NexantECA. He said that the deepest cuts would occur in April, as Middle East crude supplies continued to be short. Alternative barrels are only expected this week.
Some analysts predict that the recovery will begin in June. However, this depends on the resolution of the conflict which keeps the Strait of Hormuz wide open.
North Asian Refineries
China, which has the largest refining industry in the world, has curtailed fuel imports since last month in order to maintain domestic supplies. The IEA estimates that Chinese refinery output was 14 million bpd for March, down slightly from 15.2 millions bpd during February, and at 14.8 million bpd per year on average through 2025.
The Chinese research firm Horizon Insight estimated China's throughput to be 13.4 million BPD in the week ending April 17 - down from 15.4 millions BPD in the week prior to the start of the war on February 28.
Horizon Insight analysts stated that the Chinese run-cuts are mostly at state owned refineries which have increased yields in transportation fuels to the detriment of naphtha used for petrochemicals and energy security.
Hassan, of FGE, said that the utilisation rate for refineries in South Korea and Japan will drop from its normal level around 70 to 80 percent to 65 percent by late April or early May. According to data from the Petroleum Association of Japan, Japan's refineries were operating at 68% of their designed capacity in April.
Hassan stated that the average refinery utilization rate in Singapore's energy hub has been below 50%. This is down from the usual 70%, Hassan added. Nithin Prakash, an analyst with Rystad energy, reported that Indian crude production fell by 13% in April compared to February.
LESS MEDIUM-SOUR CRUDE, MORE LIGHT GRADES COMING
According to Vortexa, of the 12 million barrels per day of crude oil that could not reach Asia due to the closure of the Strait of Hormuz in March, 8 million were medium density with high sulphur, or medium sours. Most Asian refineries have been designed to process medium sours to maximize diesel output.
As a replacement, Asian refiners bought light West Texas Intermediate and medium-sour Mars from the United States, Kazakhstan's light-sour CPC Blend, and sweet West African crude oil. These grades typically produce more gasoline or naphtha.
Vortexa data show that the share of Asia's crude oil slate containing light-sweet crude has reached a record-high of 21%. This is up from just 11% in February.
DIESEL, JET ?FUEL OUTPUT LOSS
Middle distillates, such as diesel and jet-fuel, have been lost at Asian refineries due to the switch in crude grades. Middle East crudes produce 60 percent of middle distillates compared to 40 percent for WTI.
Rystad's Prakash stated that a 1%-2% drop in Asian refining yields could result in a loss of between 250,000 and 500,000 bpd diesel and jet fuel supply. This, combined with the export restrictions imposed by some governments, and refinery run reductions, could reduce diesel and Jet Fuel availability in the short term by up to 1 million bpd.
Sumit Ritolia (Kpler's Modelling and Refining Manager) estimated that the total middle distillate supplies losses in April were between 1.8 and 2.0 million bpd. Most of this diesel.
He added that a lighter crude slate would lead to a lower use of secondary units, such as hydrocrackers and cokers, which are designed to upgrade residual gasoline into diesel.
(source: Reuters)