Latest News
-
Oil prices drop after OPEC+ agrees on a production increase in September
Early Asian trading on Monday saw oil prices drop after OPEC+ agreed that they would increase production by a large amount in September. Brent crude futures were down 43 cents or 0.62% to $69.24 per barrel at 2218 GMT, while U.S. West Texas intermediate crude was $66.94 per barrel, down 39cents or 0.58% after both contracts had closed around $2 lower on Friday. OPEC+ decided on Sunday to increase oil production by 547,000 bpd for September. This is the latest of a series accelerated output increases to regain market shares, as concerns grow over possible supply disruptions related to Russia. This move represents a complete and early reversal in OPEC+’s largest batch of output cuts. In addition, the United Arab Emirates have increased their output by about 2.5 million bpd or 2.4% of global demand. In a press release issued after the meeting, OPEC+ cited a strong economy and low stock levels as reasons for its decision. Helima Croft, an analyst at RBC Capital Markets, said that the actual increase since April was smaller than the headline figure and mainly comprised of barrels coming from Saudi Arabia and UAE (United Arab Emirates). The bet that the market would absorb the extra barrels this summer has paid off, as prices are not far from the pre-tariff Liberation Day level. Reporting by Florence Tan Editing and design by Rod Nickel
-
Five trapped mine workers found dead in Chilean Codelco mine
A regional prosecutor announced on Sunday that all five trapped workers were found dead at Codelco’s El Teniente Copper Mine. Rescue teams had cleared underground passageways of more than 20 meters (78 feet), which collapsed during a powerful tremor. On Sunday afternoon, Aquiles Cuillo, the prosecutor of O'Higgins Region, announced that the body was found of the fifth trapped worker. Six people have now died in the accident, including the one who was killed at the time the incident occurred on Thursday night. Codelco found the trapped worker Saturday, and three more on Sunday. The company has yet to comment on the last worker. (Reporting and editing by Nick Zieminski, Sandra Maler and Daina Beth Armas)
-
Top Trump adviser accuses India financing Russia's war against Ukraine
After President Donald Trump increased pressure on New Delhi, a top aide of the U.S. president accused India on Sunday of financing Russia's conflict in Ukraine through its purchase oil from Moscow. Stephen Miller, a deputy chief of staff in the White House who is one of Trump's closest aides, said that Trump had made it clear that India could not continue to finance this war through the purchase of oil from Russia. Miller's criticism of one of America's major partners in Indo-Pacific was the most severe yet. People will be shocked when they learn that India and China are basically tied in their purchases of Russian oil. Miller stated this on Fox News "Sunday Morning Futures." The Indian Embassy at Washington did not respond immediately to a comment request. On Saturday, Indian government sources said that New Delhi would continue to purchase oil from Moscow in spite of U.S. threat. On Friday, a 25% tariff was imposed on Indian products as a result its purchase of Russian energy and military equipment. Trump has threatened to impose 100% tariffs on U.S. products imported from countries who buy Russian oil, unless Moscow agrees to a major deal with Ukraine. Miller's criticism was tempered by his praise of Trump's relationship to Indian Prime Minister Narendra modi, whom he called "tremendous." (Reporting and editing by Jasper Ward; Chris Reese, Ross Colvin)
-
Canadian official: Trump and Carney will speak in the coming days
A Canadian official stated on Sunday that U.S. president Donald Trump and Canadian prime minister Mark Carney would likely speak "over the next few days" following the U.S.'s 35% tariff on products not covered by the U.S. Mexico-Canada Trade Agreement. Dominic LeBlanc is the federal cabinet minister responsible for U.S. Canada trade. He told CBS News "Face the Nation," that recent discussions had "encouraged him" and that a deal reducing tariffs was still possible. LeBlanc stated that although the discussions with U.S. Secretary of Commerce Howard Lutnick, and U.S. Ambassador Jamieson Greer were encouraging, they still did not get us to the point where we could reach a deal in the interest of both economies. The minister of trade said that he expects Carney and Trump "to speak over the next few days." LeBlanc stated, "We believe there is an opportunity to strike a deal which will lower some of these tariffs and provide greater certainty for investment." Washington attributed Friday's announcement of tariffs in part to Canada's failure, it claimed, to stop the smuggling of fentanyl. This was the latest blow to a tariff war that Trump began shortly after he returned to power in this year. Carney said Canada only accounts for 1% of U.S. imports of fentanyl and that it has worked hard to reduce this volume. Reporting by Douglas Gillison, Jasper Ward and Doina Zieminski; editing by Ross Colvin, Doina Zieminski and Doina Colvin
-
SABIC, the Saudi chemical company, reports another unexpected loss in Q2
SABIC, the Saudi chemical giant and one of the largest petrochemicals firms in the world, announced a second-quarter loss on Sunday. The company had decided to close a cracker plant in the UK as part of a restructuring during a slowdown in the industry. SABIC's net loss for the three-month period ending June 30 was 4,07 billion riyals (about $1.09 billion), a far cry from analyst expectations that it would be a profit in the amount of 504 millions riyals. The opening price of the shares was 53.8 riyals, a decline of 1.6%. SABIC, 70% owned by Saudi Aramco, has suffered three consecutive quarterly losses as the chemical industry struggles with weak demand, which has affected sales. In its Sunday earnings report, the company stated that the losses were primarily attributed to impairment charges of 3.78 billion riyals and provisions relating to the closure of a cracker in the United Kingdom. This was in accordance with the portfolio review by the company to reduce costs and improve profitability. SABIC's shares have fallen by almost 19% on the Saudi Exchange this year. In a review of the business, earlier this month, it said that its National Industrial Gases Company, including an initial public offer, was undergoing a strategic analysis. SABIC stated in a press release that the move is in line with the company's portfolio optimization strategy and its core business focus. It added that the IPO of GAS will be aimed at improving "the group's financial position and value added to shareholders".
-
Australian towns covered in rare snowfall during wild weather
Authorities said that wild weather caused flooding, stranded vehicles, and power cuts to thousands of homes in eastern Australia this weekend. Miriam Bradbury of Australia's weather bureau, a Meteorologist, confirmed that a cold air front brought up to 40 cm (16") of snow in parts of northern New South Wales, the highest since the mid-80s. She said that snow also fell in Queensland, the neighboring state, for the first 10 years. Bradbury stated that climate change had made Australia's weather volatile in recent times, but this type of event has occurred many times in history. She said, "This event is unusual because of how much snow fell and how widely it was spread across the northern tablelands." The New South Wales State Emergency Service reported that it responded to 1,455 incidents despite heavy rains in other areas. The New South Wales State Emergency Service said that more than 100 cars were stranded in snowstorms, buildings had been damaged by storms and several flood warnings had been issued. The Australian Broadcasting Corporation, the state broadcaster, reported that tens of thousands homes were left without electricity overnight. The police in New South Wales (Australia's most populous State) said that a car became stuck in floodwater Saturday evening, and a woman in her 20s had been swept away. They said the search would continue on Sunday. (Reporting and editing by William Mallard in Canberra, with Peter Hobson reporting from Canberra)
-
Sources say that OPEC+ has agreed in principle to another major increase in oil production.
OPEC+ has agreed to increase oil production by 548,000 barrels a day in September. Two OPEC+ sources confirmed this on Sunday, as the group completes its largest tranche of production reductions amid fears that Russia will disrupt supply further. The meeting, which is scheduled to start at 1100 GMT on Monday, will likely result in a decision. Washington has recently demanded that India stop purchasing Russian oil. Washington also wants to find ways to pressure Moscow to reach a peace agreement with Ukraine. New EU sanctions have also forced Indian refiners and state-owned companies to stop buying Russian oil. OPEC+ has been reducing production to support the oil market for many years. It reversed its course in order to regain market shares and after U.S. president Donald Trump demanded that OPEC pump even more oil. OPEC+ increased its output in April, starting with a modest increase of 138,000 bpd. This was followed by increases of 411,000 bpd between May, June, and July, and then 548,000 bpd during August. If the group accepts the 548,000 bpd increase in September, it will have completely unwound the 2.2 million bpd production cut, allowing the United Arab Emirates an additional 300,000bpd. OPEC+ has a voluntary, separate cut of 1.65 million bpd by eight members. A 2-million bpd reduction is also in place for all members. These cuts expire at the beginning of 2026. The group has not discussed other cuts in the past. (Alex Lawler, Dmitry Zhdannikov and William Mallard contributed additional reporting; Dmitry Zhdannikov wrote the article; Lincoln Feast and William Mallard edited it.)
-
Governor of Sochi says that a drone attack by Ukraine ignited a fire at an oil depot in Russia.
Veniamin Kodratyev, the regional governor of the Russian city Sochi, said on Telegram early Sunday that more than 120 firefighters are trying to put out a fire at an oil depot which was caused by a drone attack from Ukraine. The Russian news agency RIA reported that a fuel storage tank in the Krasnodar Region, where Sochi is situated, was on fire. Rosaviatsia (Russia's civil aviation authority) said on Telegram flights at Sochi airport were stopped to ensure safety. The reports could not be independently verified. Ukraine has not yet responded. This attack on the infrastructure in Russia, which Kyiv considers crucial to Moscow's military efforts, was carried out by Ukraine, according to Kondratyev, and took place in the Adler area of the coastal resort. A drone attack by Ukraine killed a woman in Adler late last month. Attacks on Sochi which hosted the 2014 Olympic Winter Games have been rare in the war Russia started in February 2022. Ilsky Refinery is located in the Krasnodar Region on the Black Sea, near the city Krasnodar. It is one of the largest refineries in southern Russia. The drones of Ukraine are often used to attack the refinery. The military administration in Kyiv reported that the Russians launched a missile strike on Kyiv on Sunday. A woman was injured by a drone attack from Ukraine, which caused multiple fires.
Britain faces race to avoid $1 Billion in EU Carbon Tax Costs
Market experts say that Britain will have a difficult time linking its carbon market with the EU's within the next seven months to avoid UK companies being charged the carbon border tariff by the EU and facing annual bills of around 800 million pounds ($1.08billion) for the UK.
As part of the "reset" after Britain's exit from the European Union in 2016, the two sides announced that they would link their carbon emission trading systems last month.
The two sides have not set a deadline or described the steps that need to be taken before the European carbon border tax takes effect in January.
It will probably take several years for the linkage to become effective. Ben Lee, senior emission analyst at Energy Aspects, said that the earliest date is 2028. However, it's likely to be 2030 or 2029.
The UK government stated that a major benefit of joining the EU carbon market (or emissions trading system, ETS) is the ability to avoid being charged by the EU carbon border tariff, which will be implemented next year. This fee will be imposed on CO2 emissions associated to imports of goods such as steel, cement, and others. The UK government claimed that avoiding these costs could save them 800 million pounds a year.
EU officials claim that in order to be exempt from the border tax on carbon, Britain must link its carbon market with the EU.
Yan Qin, ClearBlue's carbon analyst, said that a full linkage would take several years due to the technical complexity of the process. He added that if the scenario is "optimistic", the link could be formed in 2027.
A British government spokesperson said that the British government will try to reach an agreement on a carbon market connection as soon as possible. They said that they would not be providing a constant commentary on the negotiations.
A spokesperson for the Commission said that the EU executive will "follow up quickly" on the agreement and propose to EU countries a negotiating mandat to start talks with Britain about the carbon market connection.
TECHNICAL HURDLES
For the UK to make this link, it must adjust its national rules on carbon trading permits. It also needs to bring its emission permit auctions into line with EU regulations and change the national cap for how much carbon can be emitted by companies that are covered by the market.
Not only that. EU and UK schemes have not aligned yet on the number of free CO2 permits that they offer industries. The EU carbon market also has a "reserve", which can add or remove permits to the market in order to stabilize prices.
The EU scheme lacks the "reserve" that Britain has, but it does have a mechanism to control costs and set a price ceiling.
Ingvild Sörhus, senior analyst at Veyt, said that resolving the issue of an adjustment mechanism for supply will be one of many technical calibrations needed before the two systems are linked.
Many businesses claim that these problems are easily resolved.
Alistair McGirr is the Head of Policy and Advocacy for British energy company SSE. He said that with the right political will an ETS linking accord between the EU and UK can be signed in 6 months and operational by the year 2028.
Energy UK, an industry group, said that linkage negotiations might be concluded within a year. However the UK should request a waiver from the EU border carbon tax until the link has been sealed in the event the talks drag on into 2026.
"It's not a matter of major political roadblocks but rather of technical processes," said Adam Berman, Energy UK Policy Director. Adam Berman, Energy UK's Policy Director, said that the problems were not small, but not insurmountable.
The UK is planning to introduce its own carbon-border tariff in 2027, a year after the UK.
Brussels might be less in a hurry. Britain's carbon markets are less than one tenth the size of those in the EU, so any link would give British businesses access to a more liquid market.
Although EU officials claim that the EU wants to extend carbon pricing to as many countries as is possible, in order to ensure they all put a price tag on greenhouse gas emission. The companies also claim that the move will reduce costs and avoid competitive distortions for EU and UK consumers.
Pascal Canfin is a French member of the European Parliament who said that the benefits for Britain are more evident than those for the EU.
Canfin said that the EU was motivated by a "political move". "The UK used to be part of [the EU] ETS." It's not a big deal. $1 = 0.7387 lbs. (Reporting and editing by David Evans, Susanna Twiddale, Kate Abnett)
(source: Reuters)