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Ampol's refinery profit for the first quarter of 2009 has been cut in half amid a global recession
Ampol, Australia's largest fuel retailer, reported on Wednesday a drop of 49% in its first-quarter refinery margins at its Lytton Refinery in Queensland. The company cited a decline in Singapore refining profits -- a key indicator for Asia. The company reported that its Lytton Refinery margin dropped to $6.07 a barrel in the first three months, from $11.80 a barrel last year. The Lytton Refinery's quarterly production dropped by 5.7%, to 1.30 billion, due to the ten-day delay in production to prepare for Cyclone Alfred. The oil refineries have seen their profitability fall due to the slowing of economic growth in China and the increasing penetration of electric cars. New refineries opening in Africa, the Middle East, and Asia have also put downward pressure on profit margins. Ampol, a Sydney-based company, said that if the decline in refinery margins continued for the entire second quarter, it would be eligible to receive payment under Australia's Fuel Security Services Payment Program, "providing a downside protection during a period of weakness in the global refining markets". Fuel retailer Ampol reported damage in March to a crude tank as a result from the cyclone. Ampol said that the immediate costs of this damage also affected its refinery margin.
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US judge blocks Trump’s freeze on climate and infrastructure grants
The U.S. Judge who blocked President Donald Trump On Tuesday, the administration of former president Joe Biden froze billions of dollars of grants that Congress had authorized in two landmark climate investment and infrastructure bills. U.S. District Court Judge Mary McElroy issued an injunction in Providence, Rhode Island at the request of environmental groups. They argued that the Trump administration unlawfully frozen funding already awarded for projects to fight climate change, reduce pollutants and modernize U.S. Infrastructure. The funding was authorized by Congress in accordance with Biden's $1 trillion bill, known as the Infrastructure Investment and Jobs Act 2021 and the Inflation Reduction Act 2022, his signature climate investment law. The funding was frozen on Trump's first day in office, January 20, when he signed an executive directive directing agencies not to approve funding under these two laws until a review had been conducted to determine whether the spending supported Trump's policies. In response to this order, both the Environmental Protection Agency (EPA) and the U.S. The Departments of Agriculture, Energy, Interior, and Housing and Urban Development all halted grant funding. In a lawsuit filed on March 13, the Woonasquatucket River Watershed Council, National Council of Nonprofits, Eastern Rhode Island Conservation District and Green Infrastructure Center argued the agencies lacked authority to unilaterally withhold already-awarded congressionally-authorized funds. The agencies said they froze the funds despite rulings made by a judge in Rhode Island who, at the request of a group led by Democratic states, had frozen the money. Blockage The administration should refrain from implementing a blanket, sweeping freeze on federal grants, loans, and other financial aid totaling $3 trillion. The Trump administration countered that it had the right to temporarily pause the funding of those who were currently receiving grants in order to decide if they should redirect the funding to another recipient, and the Rhode Island judge did not have jurisdiction to hear the matter. The U.S. Department of Justice stated that its position had been bolstered following the U.S. Supreme Court's decision in A 5-4 ruling On April 4, the Trump administration cleared the way to end millions of dollars of teacher training grants in its crackdown on diversity equity and inclusion initiatives.
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Vale's iron ore production in Brazil fell 4.5% during the first quarter
The Brazilian miner Vale reported that it produced 67.7 millions metric tons (tonnage) of iron during the first quarter 2025. This is a 4.5% decrease from the year before, according to its report on sales and production. Vale, one of the largest iron ore producers in the world, said that high rainfall levels affected its Brazilian Northern System mining complex. However, the company added that the performance was within its plans, and adhered to its 2025 output guidance. Vale confirmed its forecast of producing between 325 and 335 millions tons of iron ore by 2025. The report shows that sales of the ingredient used in steelmaking rose by 3.6% year-on-year, to 66.1 millions tons. Vale attributes the growth to "supply-chain flexibility utilizing advanced inventories." Vale's average realized iron ore price was $90.8 per ton for the March quarter, down nearly 10% from last year and 2.4% from the previous quarter. Vale's base metals business saw its copper production increase by 11% quarter-on-quarter to 90,900 tonnes. Nickel production also increased by 11% to 43,900 tonnes in the same period. Reporting by Andre Romani and Marta Nogueira from Sao Paulo, editing by Natalia Siniawski
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Impossible Metals, a deep-sea mining company, seeks a mining lease near American Samoa
Impossible Metals, a deep-sea miner, said Tuesday that it had asked U.S. Federal officials to launch an auction to gain access to nickel, cobalt and critical minerals offshore of American Samoa. Estimates suggest that the waters surrounding the Pacific Ocean contain large quantities of polymetallic nodules, or potato-shaped rocks filled with building blocks for electronic vehicles and electronics. Impossible Metals, a privately-held company, has asked the U.S. Department of Interior's Bureau of Ocean Energy Management (which oversees federal waters for mineral deposits) to launch a lease process that is competitive for the American Samoa Nodules. A BOEM spokesperson confirmed that the request was made and stated the agency would decide "by May 23 whether to initiate steps which could lead to a leasing sale." Since 1991, the agency hasn't held a lease sale. Before any auction, if the BOEM decides that it will move forward, a request for public comments would be made. Deep-sea miner supporters say that it will reduce the need for large land-based mining operations, which are not always popular with local communities. Detractors claim that more research is required to determine the impact of deep-sea mining on ecosystems. Impossible Metals, based in California, has developed a robotic claw with artificial intelligence that can distinguish between nodules (mineral deposits) and aquatic life. Deep-sea mining is allowed in any country's territorial waters up to approximately 200 nautical miles away from the shore. The California-based Impossible Metals doesn't need to ask permission from the International Seabed Authority, created by the United Nations Convention on the Law of the Sea which the U.S. does not ratify. Last month, it was reported that the White House has been considering an executive order that would allow mining companies to bypass the ISA if they wanted to mine in international waters.
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White House: China is the main player in trade negotiations
Karoline L. Leavitt, White House Press Secretary, said that President Donald Trump was open to a deal with China. However Beijing must make the first move. Leavitt said that Trump gave her the statement in an Oval Office discussion to use. Leavitt stated that "China wants to have what we do... our American consumers, or, put another way, the need for our money." China increased its tariffs against imports of U.S. products to 125% in retaliation to Trump who raised U.S. duties on Chinese goods by 145% while pausing planned levies on other countries' goods. Trump has described Chinese president Xi Jinping with admiration, but neither man is backing down in the escalating trading war between their countries. "The President, again, made it clear that he is open to a China deal." Leavitt stated that China must make a deal to the United States of America. Trump said that he hopes the trade tensions will lead to a positive outcome. Beijing, however, has not engaged in talks and instead raised its own tariffs against U.S. products. This is unlike other countries who have sought to negotiate with Washington after Trump's plans for new tariffs. (Reporting and editing by Deepababington: Additional reporting by Nandita Jackson, Katharine Bose, and Nandita Mason)
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Trump exempts coal plants from mercury and air toxics limitations
According to the Environmental Protection Agency's list published on Tuesday, the Trump administration has granted exemptions to 47 companies for two years from regulations that limit mercury and air pollutants in their coal-fired plants. The list of exemptions is the latest attempt by the administration to use emergency or executive orders to shield polluting plants from immediate compliance with the air and water standards that were tightened by Biden's administration, as the EPA embarks on a longer process to rollback those rules. The Mercury and Air Toxics Standard of the Biden era is still in effect after the Supreme Court refused to suspend the rules in October after a group mainly Republican states and industrial groups brought a legal challenge against it. Last week, U.S. president Donald Trump announced that certain stationary sources covered by MATS were exempted from compliance. This was done to revitalize the coal industry and extend the life expectancy of coal power plants. According to the Energy Information Administration (EIA), coal-burning power plants now generate less than 20 percent of U.S. electricty, down from 50 percent in 2000. This is because fracking, and other drilling methods, have increased natural gas production. Solar and wind energy have also reduced coal consumption. The American Lung Association has stated that mercury is a powerful neurotoxin which could cause serious developmental harm. Mercury and other air pollutants associated with coal combustion increase the risk of lung cancer, asthma attacks, heart attacks, and strokes. The Biden era rule required constant emissions monitoring. The exemption was supported by those who said that the MATS rule imposed severe burdens on U.S. coal power plants, and the future viability of this sector. Troy Downing, Montana Republican Congressman, applauded that two units at the Colstrip Coal Plant were included on the exemption list. He added that this "will bring clarity and certainty to operations moving forward." Reporting by Valerie Volcovici, Editing by Mark Porter
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In a case involving money laundering and Odebrecht, a Peruvian court has sentenced ex-President Humala to prison
The Peruvian Court sentenced Ollanta Humala, the former president of Peru, to 15 years behind bars for illegally receiving campaign funds from a Brazilian company. He is now the latest former leader in Peru to be sent to prison. Humala, his wife and their campaign team were accused of receiving money from Brazilian Odebrecht (now known as Novonor) during his successful 2011 elections. Nadine Heedia, Humala's spouse, was sentenced on Tuesday to 15 years of prison. The former president, a retired officer who led Andean nations from 2011 to 2016, is likely to serve his sentence in a police station built specifically to house Peruvian leaders behind bars. Alberto Fujimori, the former president of Mexico, is currently in jail at this site. Humala referred to the accusations as political persecution during his three-year trial that lasted after he began an investigation in 2016. Humala, the former president's other daughter, was accused by prosecutors of receiving illicit funds through Humala’s Nationalist Party in order to run his 2011 campaign. Even if he decides to appeal the conviction, his imprisonment will take effect immediately. The court will continue to read out the entire sentence over the next few days. LATEST LAVA JATO CONVICTION Odebrecht, a former construction giant that admitted to bribing governments in Latin America for the purpose of building its empire, has now changed its name to Novonor. In 2020, it changed its name from Odebrecht to Novonor and is now facing bankruptcy proceedings. Humala, Peru's second ex-president to be imprisoned, is the fourth person to have been implicated in the massive corruption case known as Lava Jato. In 2019, the former president Alan Garcia shot himself to death as police surrounded his house to arrest him over alleged corruption in relation to the firm. Pedro Pablo Kuczynski had to resign after only two years of office the year before. Toledo, meanwhile, was sentenced last year to 20 years in prison after it received $35 million as bribes for contracts with the public sector. Former Odebrecht executives testified in Peruvian courts that the company had funded nearly all of the presidential candidates for the country over a period of nearly 30 years. (Reporting and writing by Marco Aquino, Kylie Madry, Alistair Bell, Aida Peaez-Fernandez; editing by Chizu nomiyama)
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Sheinbaum: Mexico is negotiating with its northern states in order to send more water to the US.
Mexico's federal and state governments are negotiating to send more water from their northern states to the United States. This comes after President Donald Trump threatened tariffs and sanctions because of the historic shortage. Mexico has been forced to scramble for solutions, after falling behind in its obligations under a 81-year old water-sharing agreement with the U.S. In her daily press briefing, Mexican President Claudia Sheinbaum stated that "talks are underway with the governors from Tamaulipas and Coahuila to determine the amount of water that can be delivered... without impacting Mexican producers while also complying to the 1944 treaty." Reports last week indicated that Mexico would likely enforce an amended treaty inserted last year, which allows federal officials in Mexico to withdraw extra water from their states to meet obligations. However, state governments are likely to resist this move. According to the agreement that defines the water-sharing arrangement between the U.S. and Mexico through a system of dams and reservoirs interconnected, Mexico is required to send 1,75 million acre feet of water from the Rio Grande each year. A single acre-foot is equivalent to about half of an Olympic-sized swimming pool. According to the International Boundary and Water Commission, the current five-year cycle of the treaty ends in October. However, Mexico has only sent 30 percent of the water required. Officials in Mexico have stated that the pervasive conditions of drought have made it difficult for them to meet their delivery obligations. Officials in the United States accuse Mexico, however, of flagrantly disregarding the treaty. They also claim that Mexico prioritizes its own agricultural sector at the expense Texas farmers. Agriculture-producing northern states, already struggling with drought, closely guard their water supplies. Chihuahua officials and Tamaulipas officials have previously said that their states could not spare any additional water. They also questioned the legality the treaty amendement which gives the federal government more authority to take the water. Mario Mata, the executive director of the Chihuahua water council, said that the state was considering legal action to stop the amendment. This raises the possibility of a standoff. One protester was killed by the Mexican National Guard in 2020 when they clashed at Boquilla Dam, Chihuahua, with farmers over water deliveries to Texas. Sheinbaum stated last week that Mexico will send immediate water to Texas farmers. She did not specify a quantity. Sheinbaum said that Mexico sent U.S. officials an offer to fix the delayed deliveries. Last week, a Mexican official said that Mexico had agreed to send 122,000 acres-feet (acres-per-foot) of water to the U.S. It is also working on a plan to deliver an additional 81,000 acres-per-foot. This additional water would mean Mexico has still sent less than 40% the water that it is owed under the treaty.
Oil prices drop after IEA reduces demand outlook
The oil prices fell on Tuesday, after the International Energy Agency (IEA) followed OPEC and lowered its oil demand projection. However, price drops were limited by President Donald Trump’s suggestion for some new tariff exemptions.
Brent crude futures fell 50 cents or 0.8% to $64.38 a barrel at 1005 GMT. U.S. West Texas Intermediate Crude also fell 50 cents or 0.8% to $61.03 per barrel.
OPEC lowered its demand forecast on Monday due to the uncertainty created by a vacillating U.S. Trade Policy.
The IEA cut its estimates for the global oil demand to 730,000 barrels a day (bpd), down from 1.03million bpd, and to 690,000. bpd, next year. It cited escalating tensions in trade.
UBS, a Swiss bank, cut its Brent price forecast by $12 per barrel to $68 per barrel on Tuesday.
The UBS analyst Giovanni Staunovo said that if the trade war escalates, the downside risk scenario -- i.e. a worsening U.S. economy and a hard landing on the Chinese mainland -- would see Brent trading between $40-60/bbl in the next few months.
BNP Paribas has lowered its average price expectations for this year and the next to $58 per barrel from $65.
Chris Wright, the U.S. Energy Secretary, said in comments that helped support Friday's prices that the United States can stop Iranian oil exports to Tehran as part of Trump’s plan to pressurize Tehran over its nuclear program.
China's crude imports were up nearly 5 percent in March compared to a year ago, as Iranian oil shipments surged.
Trump's announcement that he would consider modifying the 25% tariffs on auto imports from Mexico, among other countries, also helped risk assets like equities and crude oil. (Additional reporting from Colleen Chow in Beijing and Emily Chow, Singapore; editing by Sonali, Kim Coghill, and Jason Neely.)
(source: Reuters)