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US Justice Dept. sues Minnesota to block climate change lawsuit
The U.S. Justice Department has filed a lawsuit to block Minnesota's long-running lawsuit that seeks?to hold Exxon Mobil and other oil industry participants accountable?for the harms caused by climate changes. The lawsuit was the latest in a long line of lawsuits filed by President Donald Trump to stop Democratic-led state governments from enforcing climate change laws and pursuing lawsuits against fossil fuel companies. Judges have recently dismissed ?two similar lawsuits that the Justice Department filed against Michigan and Hawaii, which are among the ?numerous states and local governments that have in recent years pursued climate-change-related investigations or lawsuits against fossil ?fuel producers. The Justice Department filed a new lawsuit against Exxon and Koch Industries, as well as the American Petroleum Institute. This lawsuit was brought by Minnesota Attorney General Keith Ellison in 2020?during Trump’s first term. The lawsuit accuses?defendants' of fraud and violating state laws by misleading Minnesotans regarding the climate change consequences of fossil fuels. The defendants have been fighting this case for many years and deny any wrongdoing. The Justice Department announced Monday's lawsuit citing an executive order Trump issued last year that directed it to take actions to stop the enforcement of state laws, and lawsuits which burden oil and gas production. In a press release, Associate Attorney General Stanley Woodward stated that "President Trump has promised to unleash American dominance in energy and Minnesota officials cannot undermine this directive by mandating their woke climate preferences as the 'uniform policy for our nation. The Justice Department argues Minnesota's lawsuit is a violation of the U.S. Constitution, as it seeks to regulate greenhouse gases emissions that are exclusive to the federal government. In a press release, Ellison pledged to?seek the dismissal of "the frivolous and meritless lawsuit". He said: "The American people deserve a Department of Justice who fights for them, and it is a great shame that Trump's DOJ prefers to sell us out in order to Big Oil." (Reporting and editing by Susan Heavey)
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Goldman warns that global oil reserves are approaching an eight-year low. The speed of depletion is a cause for concern
Goldman Sachs warned on Monday that global oil stocks were approaching their 'lowest level in 8 years.' The speed of depletion was a growing concern, as the Strait of Hormuz remains restricted. The oil prices rose by about 6% after Iran attacked several ships in the Strait of Hormuz, and also set a UAE oil port on fire. This was the largest escalation of violence since President Donald Trump tried to use the U.S. Navy for freeing up shipping four weeks ago. Bank?estimated that total global oil stock stood at 101-days of global demand, and could drop to 98-days by the end May. Goldman said that while total global stock levels are unlikely to reach minimum operational levels by summer, the speed of depletion in some regions and products is worrying. Bank estimates that commercially refined 'products have been reduced from a stock of?50 DoD prior to the U.S. Israel war against Iran, down to 45 % DoD today. The bank also stated that the buffers for easily accessible refined products were rapidly approaching very low levels. (Reporting by Ishaan Arora in Bengaluru; Editing by Deepa Babington)
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Oil prices rise, while stocks fall as Iran tightens its grip on the Strait of Hormuz
Oil prices rose by 5% Monday, and stocks dropped as 'Iran escalated their military campaign. Drones were used to strike a 'UAE oil port and a South Korean vessel was hit in the Strait of Hormuz. Brent futures gained $6.43 or 5.9% to $114.60 while U.S. West Texas Intermediate crude (WTI), rose 4% to $100.91. The move came after U.S. president Donald Trump announced over the weekend that U.S. Navy will force the strait to open. Since two months, the Strait of Hormuz has been seriously disrupted. It is through this strait that a fifth of all oil and gas transported by sea in the world normally passes. The attacks on Monday reinforced fears that a military effort to reopen the Strait of Hormuz could spark a wider confrontation. The Dow Jones Industrial Average fell 1.03%. The S&P 500 was 0.53% lower, and the Nasdaq Composite fell 0.41%. The longer oil prices remain above $100 per barrel, the less fiscal stimulus the tax cuts that were passed in 2025 will be. MSCI's global index outside Japan fell as well, reversing gains made earlier after South Korean tech stocks closed over 5 percent higher. German automakers in Europe weighed on regional equity after Trump announced on Friday that he would increase tariffs on European cars and trucks. The STOXX 600 pan-European index dropped by 0.99%. The benchmark yield for the eurozone bloc, Germany's 10-year bonds, increased 5 basis points to 3,08%. Bond yields are inversely related to prices. London's markets were closed due to a public holiday. CENTRAL BANKS TURN HAWKISH AFTER OIL FANS INFLATION FEARS Oil-driven inflation has pushed bond rates higher and complicated global monetary policy outlook. The markets no longer expect that the Federal Reserve will cut rates in this year and they have already begun to price in rate increases from the European Central Bank as well as the Bank of England. Barclays joined other brokerages on Monday in predicting that the Fed won't ease policy this year. The Friday April payrolls report may further alter expectations. The yield on benchmark U.S. 10-year bonds rose 7.6 basis point to 4.454%. FOREX TRADERS ARE KEPT ON THE EDGE BY YEN VOLATILITY The currency markets are also a bit uneasy, and traders are 'closely monitoring for signs of Japanese intervention in order to support the yen. In Asian trading, the dollar plunged against the yen before turning around. The Japanese yen last fell 0.11% against the greenback, closing at 157.25 dollars. Analysts think Tokyo could have intervened in the last week for a total of?35 billion dollars. Roberto Cobo Garcia is the head of BBVA's G10 FX Strategy. He said that intervention was justified, due to the inflationary effect of a weaker yen through import prices. The U.S. government also seems comfortable with this action. The euro dropped 0.3% to 1.1685 while sterling fell 0.34% to 1.003526. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and other currencies) rose by 0.35%, reaching 98.50. On the commodity markets, gold dropped 2.22% to $4,511.66 an ounce.
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Eni has restarted Venezuelan oil lifting as payment in kind for gas
Eni said on Monday that it would resume lifting Venezuelan crude in April as payment-in kind for gas produced?in Venezuela. The Italian energy group added?that?the move?would?allow?it to?recover?old receivables?from Caracas. Payments stem from an agreement between Venezuelan oil firm PDVSA, and Cardon IV - a joint venture owned equally by?Eni and Spain’s Repsol - that produces gas in the Perla field. The deal was signed in March. Eni stated that payments for gas are made in kind, and the first shipment from Venezuelan crude oil was lifted in April. Eni announced that the lifting of oil cargoes has resumed as U.S. sanctions against Venezuela have been slowly eased by the Office of Foreign Assets Control of the U.S. Treasury since January. Eni said that the new regulatory framework allowed it to continue to operate in Venezuela and, on a medium-term basis, assess whether or not to 'intensify' its activities. Eni owed PDVSA around $3.3 billion at the end of last fiscal year, which included?about $1 billion in interest. Eni's?balanced sheet reported that the recoverable value of the receivables related to its Venezuelan operations was 880 million euro at the end 2025. (Reporting and editing by Francesca Landini)
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US extends protection to Venezuelan-owned Citgo against creditors
According to a statement posted on the website of the U.S. Treasury Department on Monday, "the United States extended a license protecting Venezuelan-owned refiner Citgo Petroleum against 'creditors until June '19." The Office of Foreign Assets Control issued the general license to boost investment in Venezuela and increase oil production. The U.S. also strengthens its protection of Houston's?Citgo, and its overseas parent companies which are the crowning jewels of Venezuela's foreign assets. Citgo is America's eighth largest refiner. The previous OFAC licence, issued in March, was set to expire on May 5. Citgo will be acquired by Amber Energy, a hedge fund affiliate, after a Delaware court ordered the sale of PDV Holding last year to pay billions to Venezuelan creditors. For the sale to go through, the auction winner must still have OFAC sign off on the order and the protection licence lifted. In an opinion piece that appeared in the Wall Street Journal, Amber officials promised last month to invest $11 billion in Citgo Petroleum in the event OFAC released the refiner?to Amber. These investments include adding 125,000 barrels of crude oil per day to the Corpus Christi refinery in Texas. Washington has eased sanctions against Venezuela ever since U.S. troops 'captured President Nicolas Maduro 'in January. The U.S. government 'took control of the OPEC nation’s oil sale proceeds through a trust fund. (Reporting and editing by Michelle Nichols, Alistair Bell and Alistair Bell; Daphne Psaledakis, Timothy Gardner and Ismail Shakil)
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Gold drops nearly 2%, as Middle East threats support the dollar and keep inflation concerns in focus
Gold prices fell by?nearly?2% on Monday, as increased tensions between the U.S. and Iran boosted dollar values and reinforced inflation fears that kept expectations for higher interest rates alive. By 11:26 am, spot gold had fallen 1.9% to $4,526.88 an ounce. ET (1526 GMT). U.S. Gold Futures dropped 2.3% to $4,37.90. Bart Melek is the global head of commodity strategies at TD Securities. Authorities in the emirate reported that a fire had broken out at the Fujairah Oil Industry Zone following what they called a "drone attack" from Iran. The U.S. Military said that two guided-missile destroyers from the U.S. Navy had entered the Gulf to break the Iranian blockade. Brent prices increased by more than 5%. The dollar price of metals increases when the U.S. dollar is stronger. The escalating energy prices have also heightened inflation fears and boosted bets on central banks keeping interest rates high for longer. Barclays has joined the growing list of brokerages that have bet against any policy easing by the U.S. Federal Reserve in this year. The Fed's most divided decision in 1992 was to leave rates unchanged last week. This was due to deepening fears about rising energy prices. This week, key?data include the ADP Employment Report and the April Payrolls Report. Gold is a good hedge against inflation and geopolitical unrest, but it loses its appeal when rates are high because the metal offers no return. I see a strong level of support for gold around $4,200. I think that there will be broader issues later in the year which could support prices. Melek stated that traders may be pushed to sell positions due to uncertainty and rate hikes. Spot silver dropped 2.9% to $73.12, while platinum fell 2.1% to $1.947.05 and palladium lost 3.5% to 1,471.50.
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US Justice Dept. Targets Minnesota over global greenhouse gas emission
On 'Monday, the U.S. Justice Department filed a lawsuit against Minnesota for its regulation of global greenhouse gas emissions. This is a part of a series of federal actions that has included fraud investigations and immigration raids in Minnesota. In its complaint, the department claims that Minnesota tries to regulate greenhouse gas emissions by suing companies of energy in state courts. In a statement, Associate Attorney General Stanley Woodward stated that Minnesota officials could not 'undermine President Trump's directive to unleash American energy dominance by requiring their woke climate preferences be the uniform policy? of the nation. Tim Walz, the Minnesota Governor, did not respond immediately to a comment request. Trump declared a nationwide energy emergency on his first day as president, issuing an Executive Order to "unleash America’s affordable and reliable natural resources and energy." Minnesota has been a focus of the Trump?administration. Last week, the?U.S. Agents searched more than twenty locations in Minnesota, as investigations into fraud?in social welfare programs continued. In an immigration crackdown, the Trump administration sent thousands of federal officers to Minnesota earlier this year. They also requested records from Minnesota's attorney general and governor as part of a probe into interference with immigration enforcement.
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India's Reliance boosts LPG production by cutting alkylate exports
Reliance Industries, India's largest chemical company, is reducing output of alkylates while?diverting the feedstock in order to increase production of liquefied gas (LPG), as India struggles with shortages due to the Iran War. The operator of 'the world's largest refining complex runs its alkylation unit on a minimum rate, reducing exports of gasoline-blending components. Reliance exports alkylates primarily to the U.S., from its export-focused refinery that produces 704,000 barrels per day. The company claimed that LPG production had increased by'more than threefold compared to pre-war levels. The company stated in a press release that the move was made to fill in the gaps in the loss of LPG imported from Middle Eastern countries. The federal government ordered refiners in?March to increase LPG production, as India was facing shortages following the closure of the Strait?of?Hormuz. India, the second largest LPG importer in the world, is facing its worst gas crisis in decades. The government has cut supplies to industry, to protect domestic cooking fuel needs. About 90% of the country's LPG imports came from the Middle East. Reporting by Nidhi verma and Mohi narayan. (Editing by Susan Fenton, Mark Potter and Mark Potter.)
Gold drops 2% as Middle East fears support the dollar and keep inflation concerns in focus
Gold prices fell 2% on monday as tensions between the U.S. and Iran boosted dollar values. This also fueled inflation fears that kept interest rate expectations high.
By 2:05 pm, spot gold had fallen 2% to $4,523.23 an ounce. ET (1805 GMT).
U.S. Gold Futures closed 2.4% lower, at $4.533.30.
Bart Melek is global head of commodity strategies at TD Securities. He said that the latest news did not give the market any confidence in the future. It also raised the specter inflation issues and sent a hawkish signal to the market regarding interest rates.
Iran has attacked several ships and set fire to a UAE oil terminal in the 'Strait of Hormuz', after President Donald Trump tried to free up shipping by using the U.S. Navy. This was the biggest escalation of the war since the ceasefire declaration 'four weeks ago.
The U.S. Dollar?firmed up and Brent prices rose more than 5%. The dollar price of metals increases when the U.S. dollar is stronger.
The soaring prices of energy have heightened inflation fears and boosted bets on central banks keeping interest rates high for longer.
Barclays has joined the growing list of brokerages that bet against any policy easing by the U.S. Federal Reserve in this year. The Fed's most divided decision in over 20 years was to leave rates unchanged last week. This was due to deepening concerns about higher energy prices affecting the economy.
This week, key data will include the ADP Employment Report and the April Payrolls Report.
Gold is a good hedge against inflation, but it's not attractive in an environment of high rates because it offers no return.
"I see a strong level of support for gold around $4,200. I think that there will be broader issues in the later part of this year which could support gold prices. Melek stated that uncertainty and rate hikes could push traders to sell positions in the short term.
Spot silver dropped 3.2% to $72.95, while platinum fell 1.7% to $ 1,955.95 and palladium lost 2.9% to $1 481.00.
(source: Reuters)