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US screwworm case alerts ranchers and boosts cattle prices
U.S. futures for feeder cattle surged Thursday as traders and ranchers were alerted to the possibility of more cases of a parasitic fly that eats warm blooded animals alive. U.S. agriculture secretary Brooke Rollins confirmed to reporters that there had been no more detections of New World Screwworm in the region around the case in La Pryor in Texas. The federal government confirmed this late on Wednesday. This case is a major blow for U.S. ranchers, who were bracing themselves for an outbreak of domestic screwworm as the pest has been moving northward through Mexico in the last year. Rollins told a press conference that "we've received a few (reports)." "Certainly, none looked like the one that we saw yesterday in La Pryor. But we are pursuing that." Rollins had said that the U.S. Department of Agriculture thought it could contain this case, which is the first to occur in Texas since 1966. Further infestations may further reduce the size of the US. The cattle herd is now the smallest it has been in 75 years. Screwworms are parasitic fly females that lay their eggs on open wounds or mucous membranes of warm-blooded animals. Once the eggs hatch into larvae, hundreds of screwworms will use their sharp teeth to burrow through flesh and eventually kill their host. "The New World screwworm sounds like a monster from a horror film, but it is real," said Nate Sheets. He was a Republican candidate for Texas Agriculture Commissioner. "It's an agricultural emergency." VOLATILE CASTE PRICES Chicago Mercantile Exchange traders initially reduced the price of futures for feeder cattle, fearing that the infestation would reduce consumer appetite for beef. Futures rallied by over 3%, quickly turning higher. Experts said that the detection could threaten Texas' livestock industry. The estimated economic losses of up to $1.8 Billion in Texas could occur if the screwworm spreads. Matt Wiegand is a commodity broker at FuturesOne. "Until we have a significant impact on consumer demand, the (cattle numbers) are still tight." U.S. beef supplies have been dwindling after ranchers were forced to reduce their herds by a drought that lasted for years. Meatpackers such as JBS Cargill, and Tyson Foods are struggling to find enough animals to process in their beef plants. The Meat Institute, representing processors, has urged USDA, after it announced that the agency had frozen animal movements in the area around the case, to allow "low-risk" livestock shipments for slaughter. The institute stated that such shipments may include animals being transported directly to slaughter from farms which are not infected. USDA has spent millions to try and keep the pest out, and has been blocking imports of Mexican cattle for over a year. Rollins stated that U.S. ports will continue to be closed for Mexican livestock until further notice. According to Lee Haines, associate research professor of biology at the University of Notre Dame, Indiana, the infestation indicates screwworm flies have already arrived 'in the U.S. Haines stated that "the burden falls on farmers who have to monitor animals spread across vast rangelands, which are often left unattended for days at time."
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Trump announces coal support plan worth $700 Million Using Emergency Powers
On Thursday, President Donald Trump announced that he would use emergency powers from the Cold War to send nearly $700,000,000 to the U.S. Coal Industry to Asia to ship the carbon-intensive fuel and to power companies in the United States to burn it. Trump intends to use the Defense Production Act (a 1950 law that granted presidents broad authority to oversee industries deemed crucial to national security) to finance upgrades to more than a dozen coal-fired plants, assist in financing two new coal plants, and support construction of an West Coast coal export facility. The Trump administration has framed the energy policy as an issue of national security to ensure that electricity is available for AI data centres and reduce dependence on other countries. POLLUTION? CONCERNS Environmentalists condemned the plan. Patrick Drupp of the Sierra Club, who is the climate policy director, said that the plan was a taxpayer-funded subsidy for a polluting business. He also stated that the group would challenge the initiative in court. Drupp stated that it was "disgusting and reprehensible" that President Obama gave away taxpayer money to build expensive and deadly coal plants. Rich Nolan said that the National Mining Association's CEO would use the funds to increase production of a fuel which helps protect consumers from energy price volatility and supports the rising demand for electricity. Nolan stated that "the administration supports that strategy by taking decisive actions at home to ensure upgrades are made to existing energy assets, and in our ports to make sure that U.S. Coal can meet the world's needs." In 1990, coal accounted for more than half of the U.S.' electricity production. Today, it accounts for less than one fifth as utilities have shifted to cheaper natural gas, and renewable energy sources. Trump, despite rolling back environmental regulation on the industry has not been able to increase the number of coal miners. According to the St. Louis Fed, the number of coal miners in the United States has dropped from 51,500 last year?to 39,800 this past year. The official stated that more than half of the funds would be used for upgrading 13 coal-fired plants. Additional money will also go to coal facilities in Alaska and Maryland, as well as the West Gateway coal export terminal, which has been long planned in Northern California.
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Environmental concerns are a challenge for Equinix to Cape Town data centers
The plan of U.S. listed Equinix, to build two data centers in Cape Town, should not be approved unless its full disclosure regarding?water, electricity and environmental impact is made, according to a formal complaint lodged with?city planners. Housing Assembly (HA), a South African social movement that represents more than 20 communities, and UK non profit Foxglove claim the application can't be approved without key information for officials to evaluate the project. Equinix has said that it did not submit any planning applications for Cape Town. The company already operates an energy-only site in Johannesburg. We can confirm that the purchase of land in Cape Town has been completed. "At this time, no planning application has been filed in relation to the site," said it in an email statement as a?response. Equinix stated that "should we decide to move forward with any development we will be fully transparent, and provide detailed information?in a timely fashion? to all stakeholders relevant." Equinix says it works with local utilities and government leaders to understand the local priorities, and inform its decisions. Technology?firms are racing to increase computing power around the world, but they're facing local opposition. Communities are concerned about rising power bills, noise, pollution, and water stress. Rosa Curling said, "There is simply not enough data to make a decision about a project this size, as there are no details on water usage, emissions, electricity demands, diesel generators or air pollution. According to the document, the project involves two large data centers in Cape Town. The combined power consumption is projected to be up to 160 Megawatts. However, questions remain about the type of backup power generation that the site will have. Curling added that the water requirements of the site were also important, given Cape Town's history with water scarcity. Cape Town experienced a severe water shortage in 2017-2018. This is known as the "Day Zero" crisis. The city had to shut down the taps of most households because the reservoirs were dangerously low. Saadiyah kwada, an lawyer at the Legal Resources Centre, a non-profit organization in Cape Town, said: "There is a rush to build data centres without properly considering the impacts." King David Golf Club and Equinix, owners of King Air Industria (the development site on which the data centers are to be built), have 30 days in which to respond. The City then has 180 days to decide. KAI declined comment. Alderman Eddie Andrews, Cape Town's Deputy Mayor and Mayoral Committee Member for Spatial Planning and ?Environment, said: "The City of Cape Town still needs ?to evaluate the application together with all comments and objections ?received from internal and external departments/interested and affected parties. He added, "The City is unable to comment further because this application is being processed." The South African government pledged on Wednesday to increase investment in digital infrastructure including data centres through tax incentives, policy reforms and regulatory barriers. (Editing by Simon Jessop and Kirsten Donovan)
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Nigeria's Dangote Refinery Tops 700,000 Barrels Per Day In Test
The Nigerian Dangote Petroleum Refinery, which is owned by Dangote Group, has increased its crude processing capacity to 700,000 barrels a day during a test conducted by the process licensors. This exceeds the nameplate capacity, 650,000 bpd, and marks a significant milestone in operations, according to a statement released on Thursday. Devakumar?Edwin, vice-president for oil and?gas at Dangote Industries said that the ramp-up is part of a larger plan to expand the capacity to 1.4 million bpd in 30 months. This level could make the facility among the largest globally. The refinery owned by billionaire Aliko. Dangote began fuel production in the year 2024. Since then, it has increased output of petrol, diesel, and jet fuel. It exports products to Saudi Arabia and the United States, as well as to African countries, such as the United Kingdom and France. Dangote Refinery is a major global supplier, despite supply disruptions caused by Middle East tensions. African buyers are looking for more reliable suppliers. Kpler data shows that exports rose to 353,000 barrels of oil per day from 168,000 in February. About half of this volume was exported to other African nations. Analysts warn that it is still too early to determine if the surge represents a shift in trade patterns. This is especially true after exports dropped to 285,000 barrels per day in May. Mick Strautmann is a market analyst at Vortexa. He said: "We are seeing a shift towards regional barrels with Dangote increasing its share in Africa's seaborne imports of fuel." David Bird, the Chief Executive of the refinery, said that it has a surplus of jet fuel and can supply international markets. The rising production is attracting increasing interest from international crude traders and suppliers. (Reporting and editing by Matthew Lewis in Lagos, Isaac Anyaogu)
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U.S. revokes endangered species listing for Permian Basin lizard, resolves Texas attorney general lawsuit
The Trump?administration has agreed to strip endangered species status from a lizard whose range overlaps?the biggest oil-producing area in?the United States. This is a settlement of a lawsuit?brought?by Texas attorney general Ken Paxton. The U.S. The U.S. Fish and Wildlife Service declared the dunes sagebrush-lizard endangered in May 2024 after concluding oil and gas development had rendered the loss of habitat "effectively permanently." The U.S. Justice Department said that the USFS now considers that it made an "important and fundamental" mistake by assuming incorrectly that habitat restoration was impossible and by ignoring experimental efforts which "showed potential", in a court document filed on Wednesday. The Justice Department stated that the error "led an incomplete and possibly inaccurate assessment of the potential and ongoing conservation activities in New Mexico and Texas". The settlement must be approved by a federal judge in Midland, Texas. This is the latest in a series of environmental rollbacks under Donald Trump. A Republican, Trump has been pushing to dismantle regulation?to reduce costs for industry and increase domestic energy production. Critics claim that his actions weaken air, water and health protections. Paxton's Office did not respond immediately to comments on Thursday. PAXTON CALLS BIDEN-ERA RULE POLICIALLY MOTIVATED The lawsuit filed in September 2024 sought to overturn the final rule protecting the lizard that was issued by then Democratic President Joe Biden's administration. Paxton claimed that the rule was political in nature, could have a negative impact on energy production and threaten private landowners’ ability to do business. The Fish and Wildlife Service of the U.S. Department of the Interior declared the lizard to be endangered. This was done under the federal Endangered-Species Act which limits 'development' in habitats that are deemed vital for a species survival. The settlement calls for the agency to conduct a further review, and decide within two-years whether to reclassify this lizard as threatened or endangered. The government did not admit wrongdoing other than acknowledging a mistake in habitat restoration. Paxton is a Republican who is running for a U.S. Senate position. He is also a Trump supporter. According to the Fish and Wildlife Service, the lizards' range is a?1.25million acres (1.953 square mile) according to the?dunes Sagebrush Lizard. According to the U.S. Energy Information Administration, Texas will account for 43% percent of the nation's crude production and 28% percent of its gross natural gas withdrawals by 2024. Jonathan Stempel, New York; Sanjeev Mikleni, editing.
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Gold prices rise as hopes for a Middle East ceasefire pressure bond and dollar yields
Gold prices rose more than 1% Thursday, as oil prices fell?on the back of optimism about a possible?end to Iran conflict. This caused the dollar to rise and bond yields to drop. As of 1:41 pm EDT (1741 GMT), spot gold was up by 1% to $4,476.85 an ounce. U.S. Gold Futures for August Delivery settled 0.9% higher at $4,505. Independent metals trader Tai Wong says that reports of a ceasefire agreement between?Israel? and Lebanon? have pushed the dollar and bond yields up, which has helped gold to hold above?the 200-day moving averge. Israel and Lebanon announced late on Wednesday that they had agreed to implement ceasefire. This raised hopes of a deal being reached between Washington and Tehran. Oil prices dropped by more than 3% in response to the news amid hopes of a reopening of 'Strait of Hormuz. Gold's appeal was boosted by the lower yields of U.S. Treasuries including the 10-year bond, as well as a 0.2% decline in the dollar. Wong stated that "record highs in gold prices this year are unlikely to happen unless there is a lasting, clean ceasefire between Iran and the West, which opens Hormuz. This will allow energy prices to fall, and for markets to stop worrying over possible higher rates." Gold, the traditional "safe-haven" asset, reached a record of $5,594.82 an ounce on January 29. Since the start of the Iran conflict, in late February, it has lost about 16%. The high interest rates are a burden on non-yielding gold. Investors will now be focusing on the release of the May U.S. Employment Report. The data may shed light on the health of the labor market, which will help determine the direction the Federal Reserve takes in the future. Silver spot rose by 1.7%, to $73.95 an ounce. Platinum gained 2.1%, to $1.897.61. Palladium increased 1.4%, to $1.320.23. (Reporting and editing by Paul Simao in Bengaluru, Shailesh Kumar, and Anjana Anil)
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IMF: Oil price is close to April baseline forecast
The International Monetary Fund said on Thursday that while oil prices are only 3% higher today than the levels used in its April global growth forecast, physical spot prices continue to be volatile and global reserves keep falling. Brent crude benchmark futures have dropped in recent days. On Thursday, they were trading at $94.79 per barrel for August delivery, while contracts for delivery in December are currently priced at $86.18. IMF's April World Economic Outlook global growth "reference estimate" was based upon an average oil price per barrel of $82.22 for the year. The forecast was issued in mid-April, after prices spiked in March. It assumed that the conflict would end quickly, and prices would fall to $76 by 2027. Brent was trading?at $94.80 at the time?the forecast came out. IMF spokesperson Julie Kozack said that the reopening of the Strait of Hormuz was crucial to the stability of oil prices. She did not say that the IMF reference forecast will hold. She and other IMF officials said previously that the world economy had moved into the "adverse scenario" of the IMF due to the conflict. Growth was expected to fall to 2.5% in this year. Kozack stated that "the price of oil, and its direction will be very dependent on the length of the war as well as how quickly and when the Strait of Hormuz is reopened." She stated that the spot price is?higher? than the futures prices, which the IMF uses? to?back up its forecasts. The IMF will therefore take this difference into consideration when it releases its next global forecast update in July. Reporting by David Lawder, Editing by Elaine Hardcastle
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Data shows that Iranian oil exports have fallen to their lowest level in six-years.
According to shipping data, and analysts, Iranian crude oil exports and condensate fell to their lowest levels?in six years?in?May. They were well below 300,000. barrels per day. This was mainly because of the U.S. Naval Blockade. The U.S. started enforcing its blockade in April, which choked Iranian exports. This is because the oil market has been facing a shortage of supply due to the Iranian closure of the Strait of Hormuz, cutting off exports from Saudi Arabia. Vortexa data indicates that Iran's exports in May averaged around 209,000 bpd, down sharply from the 1.34 million in April and almost 1.9 million in March. Vortexa reported that this is the lowest level of tensions since late 2019 or early 2020 when U.S. president Donald Trump pursued a "maximum-pressure" campaign against Iran during his first term. The Iranian officials in New York didn't immediately respond to a comment request. The 'key drivers' appear to be the disruption in the Strait of Hormuz and the U.S. Naval Blockade of vessels entering or leaving Iranian ports. Also, owners, operators and insurers are unwilling to expose their vessels and crews to current security conditions, said Vortexa analyst Claire Jungman. Kpler data showed a similar drop, though it tallied May exports at a slightly higher level of 260,000 bpd - still a six-year record low. IRANIAN OIL IN FLOATING STOCKAGE FALLS Kpler data shows that the volume of Iranian crude oil stored on ships is decreasing as more tankers are discharging in China. Kpler stated that 67 million barrels of Iranian condensate and crude oil are stuck in the Gulf of Oman and Mideast Gulf. The floating storage volume has fallen since a recent peak of around 190 million barrels at the end of April. Iman Nasseri is an analyst with FGE?NexantECA. He estimated that 55 million barrels (less than Kpler's figure) of Iranian crude are floating on ships beyond the blockade. Homayoun Falikshahi, Kpler analyst, said that if the blockade continues for two more months, Iran will run out of oil to export to China, which is its largest buyer. Kpler reports that China's imports from Iran of crude oil fell to 1,10 million bpd, the lowest level since January 2025.
Putin dodges the question of whether he'll stay in power through 2036
Vladimir Putin, the Russian President, avoided a question about whether he will stay in power until 2036. He said that it was "too early" to discuss this issue.
Putin was asked by senior editors from news agencies in St. Petersburg if he planned to serve until 2036, and if he thought he had enough stamina and good health to do so. He replied:
"Only God can tell if I, you and everyone gathered here have enough health to survive until tomorrow or the day after tomorrow. And even more, we need to accomplish some of the tasks that we face to reach the goals we set for ourselves."
Putin, who has been in power since 1999 as president or prime minster, claimed that the constitution allows him to run in 2030, and if he wins, serve another term up until 2036.
"In fact, the Constitution allows me to run in 2030. But I think it is?too soon?to discuss it. It's still very early. Right now, I don't even think about it. I'm completely honest. Putin said, "I don't think about it at all."
The country is facing a number of pressing and large-scale issues. "They need to be solved without thinking about it, but instead thinking about the future for Russia."
(source: Reuters)