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Trump Administration memo urges countries not to accept plastic production caps under UN Treaty
According to memos and communications obtained by the, the United States sent letters to a few countries to urge them to reject a goal of a global treaty that would include limits on plastic production as well as plastic chemical additives. In communications dated July 25, which were circulated at the beginning of the negotiations on Monday to all countries, the U.S. outlined its red lines in negotiations. This puts it directly against over 100 countries who have supported these measures. As delegates gathered for what was supposed to be the last round of negotiations, hopes for an ambitious global treaty tackling the entire life cycle of plastic pollution, from the production and disposal of waste to polymer production have dimmed. There are still significant differences between the oil-producing nations, who oppose limits on virgin plastic production, fueled by coal and petroleum, and parties like the European Union, small island states and others, who advocate for limits and stronger management of hazardous chemicals and plastic products. The U.S. delegation was led by career State Department employees who represented the Biden Administration. They sent memos to other countries outlining their position, and saying that they will not accept a treaty which addresses plastic pollution upstream. The memo was addressed to unnamed countries due to the sensitive nature of the negotiations. NAIROBI MEETING In a memo, the U.S. admitted that, after attending an initial heads of delegations meeting in Nairobi, from June 30 to 2 July, "we clearly do not see convergence in provisions related to supply of plastics, plastic production or plastic additives, as well as global bans and restriction on products and chemicals (also known by the global list). The spokesperson for the State Department told each party to take appropriate measures in accordance with their national context. The spokesperson stated that some countries may decide to ban certain products, while others might want to concentrate on improving collection and recycling. John Hocevar is the Oceans Campaign Director at Greenpeace USA. He said that the U.S. delegation under Trump was a return to "old school bullying" by the U.S. government, which used its financial power to persuade governments to change their positions in a manner that benefited what the U.S. wanted. In a resolution that was seen by the. Sources familiar with the talks told the newspaper that the U.S. was seeking to revert to the language agreed upon in 2022 for renegotiation of the mandate. The U.S. position is broadly in line with that of the global petrochemicals sector, which had stated similar positions before the talks and several powerful oil and chemical producing countries who have maintained this position during the entire negotiation. Over 100 countries support a global cap on plastic production. The Trump administration in the U.S. has taken numerous measures to Roll back climate and environmental policy It says that industry is burdened with too many obligations. According to the OECD, plastic production will triple without intervention by 2060, choking oceans and harming human health, as well as accelerating climate changes. (Reporting from Washington by Valerie Volcovici and Olivia Le Poidevin, with editing by Ed Osmond.)
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Gold drops on profit-taking, but Trump's Fed picks are in the spotlight
Gold prices dropped on Wednesday, as investors took profits after the prices reached a two-week high the previous session. Meanwhile, the market's attention shifted to the upcoming Federal Reserve nominees of U.S. president Donald Trump. Gold spot fell 0.3% to $3,371.31 an ounce at 0956 am. ET (1356 GMT). U.S. Gold futures dropped 0.2% to $3.427.10. David Meger said, Director of Metals Trading at High Ridge Futures, "We see this as a slight pullback... some profit-taking after the recent rise in prices, during a time of quieter economic conditions, and less need for safe-havens." Gold has gained for three sessions in a row after Friday's disappointing U.S. Employment Growth data. CME FedWatch reports that market participants see a higher probability of a rate cut in September, now at over 87%, up from the earlier 63%. Gold is a non-yielding investment that tends to do well in times of economic uncertainty. Trump announced on Tuesday that he would name a Fed Board candidate by the end the week. He has also narrowed down his options for replacing Chair Jerome Powell. Spot silver increased by 0.1% to $35.86 an ounce. Platinum rose 1% to $1334.05 while palladium fell 2.2% to $1147. This is the lowest level of palladium since July 11. The concern over sanctions against Russia was one of the reasons that palladium and platinum prices have been rising in the past few weeks. The prospect of reduced tensions between Russia and the U.S. has certainly allowed prices to drop in recent sessions," Meger stated. Russia is one of the major suppliers of palladium, platinum and other metals. A Kremlin official said that U.S. envoy Steve Witkoff had "useful and productive" talks with Russian president Vladimir Putin. This comes two days before the deadline Trump set for Russia to accept peace in Ukraine, or face new sanctions. (Reporting by Sarah Qureshi in Bengaluru; Editing by Vijay Kishore)
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Markets await the outcome of Putin-Witkoff's meeting to determine the value of the Russian rouble
Markets and the Russian rouble held their breath Wednesday, as they awaited President Vladimir Putin's Kremlin meeting with U.S. Special Envoy Steve Witkoff. Witkoff had "useful" and "constructive" talks with Putin, a Kremlin aide Yuri Ushakov stated, two days ahead of the deadline set by Donald Trump to have Russia agree to peace in Ukraine, or face new sanctions. LSEG compiled data based on OTC quotes that showed the rouble at 80 per dollar. The yuan was down 0.2% at the Moscow Stock Exchange. The main Russian stock market index fell by 0.15%. Analysts at T-Bank said that the market was awaiting the result of the meeting between Steve Witkoff and Vladimir Putin. Many analysts think that the rouble has been overvalued, and is waiting for a trigger which will cause it to weaken. The Russian currency rose by as much as 45% in value against the dollar in early this year. This was partly due to the expectation of a thaw between Russia and the U.S., as well as the hope for a peaceful resolution in Ukraine. Trump has several options to increase pressure on Russia, if Witkoff does not return with anything. These include possible new sanctions and trade tariffs against Russian oil buyers and the energy and banking sector of Russia. The Kremlin had earlier stated that Russia was immune to sanctions due to its long-term experience. The latest round of U.S. sanction against a Russian energy bank imposed by the United States last year led to a decline in the rouble. Evgeny Loktekhov, a PSB Bank analyst, said that the currency market would be watching for the news of the special representative of the U.S. president and any clarifications regarding the possible U.S. sanction situation. (Reporting and editing by Bernadettebaum; Gleb Bryanski)
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Pinnacle West's quarterly profits fall due to lower demand for power from Arizona's milder weather
Pinnacle West Capital announced a 5.5% drop in its second quarter profit on Wednesday as the mild weather conditions across Arizona reduced the utility's demand for power during the period April-June. The reduced temperatures during the quarter resulted in around 15% less cooling degree-days - a key measure for energy demand - compared to 2024's same period, which featured record-breaking heat. In a press release, CEO Ted Geisler stated that it was not surprising that Arizona's cooler weather led to lower earnings in the third quarter. The results were also affected by higher costs of fuel, maintenance, and borrowing, as well as lower tax credits, and income related to pensions. The total operating expenses of the company rose to $1.05billion during the third quarter from $995.2m during the same time period last year. The total cost of interest has risen to $101.9m, up from $97.9m a year earlier. The Phoenix-based utility reported that net income attributable common shareholders decreased to $192.6 millions, or 1.58 per share for the quarter ending June 30 from last year's 203.8 million, which was $1.76 per per share. Arizona Public Service's main subsidiary in Arizona, which provides service to 1.4 million homes, businesses and other entities in the state, experienced a 2.4% rise in its customers during the third quarter. (Reporting from Bengaluru by Sumit S. Saha; Editing by Vijay Kishore.)
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India's BHEL reports wider quarterly loss due to weaker power demand and higher expenses
Bharat Heavy Electricals Ltd. (BHEL), a state-owned company in India, reported a larger first-quarter loss Wednesday. The decline was attributed to a lower demand for the products it produces. The net loss of the manufacturer more than doubled from 2.13 billion to 4.55 billion (52 million dollars) for the quarter ending June 30. India's electricity demand dropped 1.8% on an annual basis to 481 billion units between April and June as the early monsoons hindered construction activities and reduced air-conditioning requirements. This led to a decrease in the number of project orders for electrical equipment. BHEL's revenues from this segment, which is its largest, dropped 5.6% to 38.99 Billion Rupees. The company's revenue from operations, which represents 55% of India’s total installed capacity for power generation, was almost flat at 54.87 trillion rupees during the third quarter. BHEL expenses rose by nearly 7%, to 62.80 trillion rupees. This was mainly due to a 10.8% increase in the price of raw materials and service. Tata Power, BHEL's competitor, missed its quarterly profit forecasts due to weak electricity demand. The shares of the company closed down 3.4%, ahead of results. ($1 = 87.6400 Indian rupees) (Reporting by Anuran Sadhu in Bengaluru; Editing by Savio D'Souza)
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What alternatives could India consider to Russian oil?
India, which imports more than one-third of its oil from Russia, will likely turn to other suppliers in the Middle East, Africa, and elsewhere if forced to reduce Russian imports by possible U.S. sanctions. Why is India importing Russian oil? India began buying Russian oil at a discounted price after the West imposed sanctions against Moscow for its invasion of Ukraine 2022. Russia is now India's top supplier, with 35% of India’s total supplies. This is up from a little over 2% just before the Ukraine war. The global crude price surged to $137 a barrel in response to fears of a shortage following the Western-led sanctions, before stabilizing. Discounted Russian crude has lowered the costs of Indian refiners. India imports over 85% of the oil it needs. How much Russian oil does India buy? Trade data revealed that the world's third largest oil importer and user received approximately 1.75 million barrels of Russian oil per day in the first six months of this year. This is up 1% compared to a year earlier. Private refiners Nayara Energy, Reliance Industries Ltd, and Reliance Industries Ltd, operators of the largest refinery complex in the world, have long-term contracts with Rosneft. Why does Trump want India to cut russian oil imports? Donald Trump, the U.S. president, has announced that he will raise the tariffs on goods imported to India from 25% to a substantial amount in light of New Delhi's continuing purchases of Russian crude oil. He warned that countries buying Russian exports may face sanctions if Russia does not reach a deal with Ukraine. New Delhi has refused to bow down, citing its close economic ties with Russia as well as its long-standing relations. The country's refiners, however, have stopped buying Russian oil. What are India's options if it can't buy Russian oil? India also buys oil in the United Arab Emirates and Iraq, besides Russia. Indian refiners buy most of their oil from Middle Eastern producers through annual agreements that allow them to request additional supplies every month. Since Trump's warning about sanctions, refiners bought crude oil from the United States as well as the Middle East, West Africa and Azerbaijan. Hardeep Singh Puri, the oil minister, says that India's supply sources have been diversified to around 40 countries. He also adds that Guyana, Brazil, and Canada are supplying more products on the market.
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NRG Energy exceeds its quarterly profit expectations, signs a 295 MW power deal for data centers
NRG Energy's second-quarter profits surpassed Wall Street expectations on Wednesday. The utility benefited from a surge in power demand, and increased retail margins at its Texas unit. The company has also signed a long-term contract to supply electricity to two data centers built on NRG's Texas sites. This deal could be expanded to approximately 1 gigawatt if additional sites are added. NRG will benefit from the surge in electricity demand in Texas. This is due in part to the boom of data centers that require large, reliable power supplies in order to support cloud computing and artificial intelligence. In April, the U.S. Energy Information Administration said that it expected power consumption to hit record levels in 2025 and 26. NRG announced that as part of the previously announced capital allocation plan for 2025, it will return approximately $345 million to common stock holders and $1.3 billion in dividends to shareholders. The Texas unit of the company posted a core adjusted profit of $512 millions, up from last year's $452million. NRG's operating costs increased to $6.74 Billion in the quarter ending June 30 from $5.25 Billion a year earlier. According to data compiled and analyzed by LSEG, on an adjusted basis the company reported a profit per share of $1.73, exceeding the average analyst forecast of $1.56. NRG has reaffirmed that its adjusted profit forecast for the current year is between $6.75 and $7.75 per share. (Reporting and editing by Maju Samuel in Bengaluru, Pranav Mathur from Bengaluru)
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Jindal Stainless announces that the government's antidumping investigation has been delayed due to uncertainty over US tariffs
India's Jindal Steel said that the launch by the government of an antidumping investigation into cheap stainless imports was delayed because of trade uncertainty resulting from new U.S. duties on Indian goods. Abhyuday Jindal, Managing Director of the company, said that the Indian Stainless Steel Development Association – a domestic trade organization of which it is a part – filed a complaint with the Federal Trade Ministry's Directorate General of Trade Remedies in late July. India will be subject to a 25% duty on all shipments it makes to the U.S. starting Friday. President Donald Trump warned that additional charges "very substantial" would be imposed because New Delhi imports Russian oil. Jindal stated that the DGTR would likely need two to three months more to begin the investigation. Indian mills are struggling with the increased imports of stainless steel cheaper from countries such as China and Vietnam. The demand for finished products - used by the automotive industry, home appliance manufacturers, and industrial sectors - was strong during the quarter of April-June, thanks to strong manufacturing and government spending. Jindal Stainless announced an 11% increase in its first-quarter profits to 7,15 billion rupees ($82 million) earlier that day. The country's total revenue increased 8.2%, to 102.07 trillion rupees.
Chevron CEO: Exports of Venezuelan crude oil to resume in this month
The chief executive of U.S. oil company Chevron said that the company expects to resume its exports to the U.S. this month. This follows a limited license issued by the U.S. Treasury Department this week to operate in Venezuela and to do oil swaps.
Mike Wirth, CEO of Chevron, said that exports would begin with "a limited amount" and that he did not expect them to have an impact on the third-quarter results.
Chevron has not exported Venezuelan oil since April when the state-owned PDVSA cancelled cargoes scheduled for its joint venture partner due to payment issues related to U.S. sanctioned against Venezuela.
In March, the U.S. administration of President Donald Trump revoked Chevron's license that was granted under former president Joe Biden. Trump's administration gave Chevron, PDVSA and some of its partners until the end of May to complete transactions.
Washington reinstated licenses last month after a successful prisoner exchange with Venezuela. The U.S. Congress urged the reinstatement of licenses in order to stop Venezuelan barrels going to China.
According to vessel movement data, Chevron had exported around 250,000 barrels of Venezuelan crude per day in the first three months before the licenses were cancelled. This was 29% of Venezuela's total exports.
According to U.S. officials and sources, the new authorization is similar in nature to that of Biden's license but prohibits payment to Venezuelan President Nicolas Maduro’s administration using any currency.
Chevron and the cash-strapped PDVSA have been in negotiations since Washington approved the license.
Sources said that the agreement is likely to include payment of mandatory taxes and royalties to Venezuela, either in kind or by way of oil swaps where Chevron supplies Venezuela with diluents. Sheila Dang (Reporting, Marianna Pararaga and David Gregorio).
(source: Reuters)