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US rules could increase oil and gas production in US West
The U.S. The U.S. Interior Department proposed rule changes on Monday to allow energy companies more easily to combine oil and natural gas output from several leases using the exact same well pad. This could save the industry up to $1.8 billion annually, according to the department. The proposed rule, which would primarily affect onshore oil-and-gas drilling in the U.S. West would ease limitations on so called commingling. According to the Department, this would improve operations. The Interior Secretary was directed to approve the commingling of applications by President Donald Trump’s tax-cut law. The current U.S. Bureau of Land Management regulation restricts commingling of leases with identical mineral ownership, royalties rates and revenue distribution. Interior has said that the requirements are a barrier in areas of the West with complex mineral ownership. According to the Department, this change will allow oil and gas companies to track production more accurately and calculate royalties that drillers must pay to the federal and tribal governments for fossil fuels produced in public and tribe lands. Interior Secretary Doug Burgum stated in a press release that the current rules were designed for a different time. These updates will allow us to manage public resources more effectively, promote responsible energy production and ensure that taxpayers and tribal members receive every dollar owed. Western Energy Alliance is pushing for more access to commingling. They say it's one of the fastest ways to increase production in the United States. Many projects have been stalled for years because the Interior Bureau of Land Management has not approved federal and private oil in consolidated projects. Trump's "energy dominance policy" pushes the administration to reduce regulations on fossil fuels. Many of these regulations are meant to slow down climate change and pollution. (Reporting and editing by Deepababington, Timothy Gardner)
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Demand outweighs OPEC+ production increase
On Monday, oil rose by more than 1% due to signs of strong demand. This was despite a higher-than expected OPEC+ production increase for August and concerns over the possible impact of U.S. Tariffs. Brent crude futures were up 79 cents or 1.2% to $69.08 at 02:05 pm. ET (18:05 GMT). U.S. West Texas Intermediate Crude was trading at $67.29 up 29 cents or 0.4%. Earlier in the session, benchmarks fell to $67.22 ad $65.40 respectively. Dennis Kissler is senior vice president for trading at BOK. Travel industry statistics revealed that a record number of Americans were set to travel by road and air for the Fourth of Independence holiday. The Organization of the Petroleum Exporting Countries (OPEC+) and its allies agreed to increase production in August by 548,000 barrels a day, a higher rate than the 411,000 bpd they increased for the previous three months. RBC Capital analysts led by Helima Crockt said in a report that the OPEC+ agreement will return nearly 80% (2.2 million bpd) of the voluntary cuts made by eight OPEC producers to the market. Analysts said that the actual increase in production has been less than expected and the majority of the supply comes from Saudi Arabia. Saudi Arabia raised its August price of its flagship Arab Light crude on Sunday to a record high for Asia. Goldman analysts anticipate OPEC+ will announce a final increase of 550,000 bpd for September during the next meeting, on August 3. The oil industry was also under pressure when U.S. officials announced a delay in the start of tariffs, but did not provide any details about changes to rates. Investors worry that higher tariffs will slow down economic activity and reduce oil demand. Treasury Secretary Scott Bessent announced on Monday that the United States would make several announcements about trade in the next 48-hours. He added that his email inbox was flooded with last-ditch proposals from countries looking to reach a tariff agreement before July 9. Jeffrey McGee is the managing director of Makai Marine Advisors. Geopolitical uncertainty continued. Yemen's Iran aligned Houthis claimed on Monday that they had destroyed a cargo vessel in the Red Sea with remote-controlled boats and rockets, their first attack on high seas of the year. Israeli Prime Minister Benjamin Netanyahu will meet Trump at the White House Monday. Israeli officials are also holding indirect talks with Hamas to reach a ceasefire in Gaza and a deal for hostage release mediated by the United States. According to an interview published on Monday, Iranian President Masoud Pezeshkian believes that Iran can solve its differences with the United States by dialogue. However, trust will be a problem after U.S. attacks and Israeli attacks against his country. (Additional reporting by Florence Tan, Ahmad Ghaddar and Marguerita Choy; Editing by Nick Zieminski, Cynthia Osterman and Margueritachoy)
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Dollar rises as Trump announces 25% tariffs against Japan and South Korea
The dollar gained against the major currencies as the stock markets declined on Monday, after President Donald Trump announced 25% tariffs on imports from Japan and South Korea. Investors awaited more announcements regarding the White House’s trade negotiations. Treasury Bills with a longer expiration date yields edged higher. On Monday The U.S. will impose a 25 percent tariff on imports of goods from Japan and South Korea starting August 1. He also revealed the first of a series of letters he said he would send to trading partners describing the new charges they must pay. Toyota Motor and Honda Motor, both Japanese automakers listed on the U.S. stock exchange, fell by 4.1% and 3.8% respectively. Treasury Secretary Scott Bessent announced earlier Monday that the United States would make several announcements about trade in the next 48-hours. A deadline of Wednesday has been set to complete trade agreements. "We are down (in the stocks) after the weekend and it is a crucial week for the tariffs," Peter Cardillo said, chief market analyst at Spartan Capital Securities, New York. Investors are cautious because they don't know what will happen in the future with trade deals. Tariffs will likely increase prices and slow growth. However, uncertainty about the final policies could be more of a drag on business as they postpone making decisions. S&P 500 companies will soon begin to report results for the second quarter. Trump announced in April that he would impose a base tariff of 10% on the majority of countries, and increased "reciprocal rates" up to 50%. The original deadline was this Wednesday. He also warned that the levy could be as high as "60% or 70%" and threatened to add an additional 10% for countries who align themselves with the "anti American policies" of BRICS, the group consisting of Brazil, Russia India and China. The Dow Jones Industrial Average dropped 515.77, or 1.15 percent, to 44.314.92. The S&P 500 declined 56.23, or 0.90 percent, to 6,222.20. And the Nasdaq Composite was down 195.58, or 0.97 percent, to 20,404.31. Tesla shares fell 7.4% after Elon Musk, CEO of the electric vehicle manufacturer, announced the formation a new political party in the United States called the "American Party." The MSCI index of global stocks fell 7.06 points or 0.76% to 918.65. The pan-European STOXX 600 closed with a gain of 0.44%. The yield on the benchmark 10-year U.S. notes increased 5.1 basis points, to 4.391% from 4.34% at late Thursday. The dollar index (which measures the greenback versus a basket currencies) rose by 0.58%, to 97.53. Meanwhile, the euro fell by 0.59%, to $1.1709. The dollar gained 1.04% against the Japanese yen to reach 146.02. The minutes of the Federal Reserve's last meeting are due this week. Investors are trying to determine how many times they expect the Fed to reduce interest rates in this year, after Thursday's jobs data showed that employers had added more jobs than forecast. At a meeting scheduled for Tuesday, it is expected that the Reserve Bank of Australia will cut rates by a quarter-point to 3.60%. This would be the third rate reduction in this cycle. The markets predict rates of either 2.85% or 3.10 percent. U.S. crude oil rose by 0.7%, to $67.47 per barrel. Brent was up to $69.21 a barrel on the same day.
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Man dead after firing at US Border Patrol station in Texas
Local police reported that a 27-year old Michigan man died after police shot him dead Monday morning in McAllen, Texas. The Michigan man had opened fire with an assault weapon on a U.S. Border Patrol Station. McAllen Police Chief Victor Rodriguez said that Ryan Louis Mosqueda had attacked the facility just after 6 am. U.S. Border Patrol agents responded with fire. Rodriguez reported that a McAllen officer was wounded in the leg during an exchange of gunfire and taken to the hospital. A Border Patrol agent was also injured, according to the U.S. Department of Homeland Security. Rodriguez said that the police found more firearms and ammunition in Mosqueda’s vehicle. He said that the suspect fired dozens and dozens of shots at the building, as well as the agents inside. The vehicle was covered in writing, but Rodriguez didn't provide any details about what it said or if it indicated the motive of the attack. Rodriguez, without providing further details, said that Mosqueda was believed to be from the area, as he had been reported missing by a resident of Weslaco. This is about 18 miles to the east of McAllen. Rodriguez stated that the FBI was leading the investigation, as there had been an attack against federal officers and on a federal building. Law enforcement securing the area caused several hours of delays at McAllen International airport. Donald Trump, Republican President, has made fighting illegal immigration his top priority. He sent troops to secure the U.S.Mexico border, and launched aggressive raids on U.S. cities. Americans are concerned that the actions, supported by Trump's hardline Republican supporters, have led to arrests of noncriminals and enforcement techniques which include officers wearing masks in order to conceal their identities. Under Trump, the number of illegal migrants crossing the border has dropped to a record low. A new monthly low was reached of 6,100 in late June. (Reporting and editing by Ted Hesson, Jasper Ward and Kevin Liffey; Bill Berkrot, Chizu Nomiyama and Kevin Liffey).
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Gold Reserve Group's Citgo bid is opposed by bondholders and bidders
Three sources familiar with the preparations say that lawyers representing holders of a Venezuelan bond in default and some bidders who participated in an auction in the United States of shares of the Venezuelan parent company of U.S. refiner Citgo Petroleum, are preparing to object to its recommended outcome. The group led by Gold Reserve, which made the $7.4billion offer, could derail again the sale of Venezuela’s foreign asset. This asset was put up for auction to compensate creditors that lost billions due to Venezuela’s expropriations. The proceeds from the auction organized by the court of PDV Holding will be used to compensate 15 creditors who have been fighting to recover almost $19 billion through U.S. courts since 2017. The court officer who was overseeing the bidding process for the second time to auction off the parent company of Houston-based Citgo Petroleum following a failed bid round last year recommended to Delaware Judge Leonard Stark an offer from Gold Reserve's Dalinar Energy Corporation. Sources said that Dalinar’s offer did not include a payment agreement for holders of a Venezuelan bond which was collateralized by Citgo equity. This is likely to be the primary reason why there are objections. Sources said that the lack of clarity regarding evaluation criteria is also a concern for some bidders. Some participants believe that a pact between the bondholders and the winning consortium is essential for the transfer of shares. Others, however, say the holders must first win their case in New York's court. Stark will accept objections to Stark's recommended bid until July 9. The winning bidder may also challenge any competing bidder by revealing the terms of their offer. The final hearing for the sale process will be held on August 18. Last year, a $7.3 billion bid by an affiliate of the hedge fund Elliott Investment Management (EIM) was rejected by most creditors. This year's bidding process is a result. (Reporting and editing by Richard Valdmanis; Mark Porter, Marguerita Choy, and Marianna Pararaga)
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World Court to Issue Climate Change Opinion on July 23,
The top court of the United Nations will issue on July 23, a non-binding opinion regarding countries' legal obligations to combat climate change. This decision is expected to be cited by litigants around the globe who are pursuing climate change cases. The World Court's so-called advisory opinion, or the International Court of Justice as it is commonly known, will also address the question of whether the largest states that contribute the most greenhouse gas emissions should be held responsible for damages caused to small island countries. Last week, the Inter-American Court of Human Rights released a similar opinion finding that its twenty Latin American and Caribbean members must work together to combat climate change and refrain from taking actions that undermine environmental protections. In December, during two weeks of hearings at the World Court, wealthy nations of the north argued in general that existing climate agreements, such as the Paris Agreement, are non-binding and should be used to determine the responsibilities of countries. The developing nations and small islands states that bear the brunt of global warming have argued for strong measures to curb emissions, and financial support from wealthy nations. The World Court's opinion is part of the global wave of climate litigation, as more and more countries, organizations and people are turning to courts in order to take climate action. Although not binding, the court’s interpretations carry significant legal and political weight. Experts believe that the court's opinion could be a precedent for climate-change lawsuits from Europe to Latin America. (Reporting by Stephanie van den Berg; Editing by Charlotte Van Campenhout and Richard Chang)
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Dollar strengthens as US trade negotiations focus on US stock markets.
On Monday, major stock indexes declined while the dollar gained against the most important currencies as investors waited for the next trade announcements from the White House. Treasury Bills with a longer expiration date yields edged higher. United States Treasury Secretary Scott Bessent announced on Monday that he would make several announcements about trade in the next 48-hours. A deadline of Wednesday has been set to complete trade agreements. The higher the rates, scheduled The new law will take effect on August 1, 2018. "We are down (in the stocks) after the weekend and it is a crucial week for the tariffs," Peter Cardillo said, chief market analyst at Spartan Capital Securities, New York. Investors are cautious because they don't know what will happen in the future with trade deals. Tariffs Prices are expected to rise and growth to slow, but uncertainty about the final policies could be more of a drag on businesses as they postpone making decisions. S&P 500 companies will soon begin to report results for the second quarter. In April, U.S. president Donald Trump announced a base tariff of 10% on most countries. The "reciprocal rates" could be as high as 50%. He also warned that the levy could be as high as "60% or 70%" and threatened to add an additional 10% for countries who align themselves with "Anti-American Policies" of the BRICS Group of Brazil, Russia India and China. The Dow Jones Industrial Average dropped 313.82 points or 0.70% to 44,508.71. The S&P 500 declined 40.14 points or 0.64% to 6,239.40. And the Nasdaq Composite lost 148.98 or 0.72% to 20,452.90. The MSCI index of global stocks fell by 3.84 points (0.41%) to 921.89 while the pan-European STOXX 600 rose by 0.37%. The yield on benchmark U.S. 10 year notes rose 3.1 basis points in the last day to 4.372%. The yield on interest-rate-sensitive two-year notes was unchanged for the day, at 3.882%. The dollar index is a measure of the value of the dollar. Measures to be taken The currency rose by 0.34% against six major counterparts to 97.294, briefly reaching a week-high. The euro fell 0.37% to $1.1735. The dollar gained 0.92% against the Japanese yen to reach 145.88. The minutes of the Federal Reserve's last meeting are due this week. Investors are trying to determine how many times they expect the Fed to reduce interest rates in this year, after Thursday's jobs data showed that employers had added more jobs than forecast. At a meeting scheduled for Tuesday, it is expected that the Reserve Bank of Australia will cut rates by a quarter-point to 3.60%. This would be the third rate cut in this cycle. The markets predict rates of either 2.85% or 3.10 percent. U.S. crude oil rose 0.6%, to $67.40 per barrel. Brent was up 1% to $68.98 a barrel.
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Search teams facing more rain as they mourn dozens of dead at Texas girls' camp
The Christian All-Girls Camp in Central Texas announced on Monday that 27 girls and their counselors perished during the devastating flooding of the 4th of July weekend. Emergency responders are still searching for missing persons and face the possibility of further heavy rains and storms. Officials have confirmed that the death toll is 78. This includes 28 children. They also said that it will likely rise as teams search through the mud-covered riverbanks, and fly over flood-ravaged landscape. Kerr County Sheriff Larry Leitha confirmed that the majority of the dead are in the riverfront Hill Country Texas city of Kerrville. In less than an hour, torrential rains at dawn transformed the Guadalupe River in Kerrville into a raging river. Camp Mystic on the Guadalupe River, a Christian girls' retreat that has been around for nearly 100 years, was ravaged by the waters. In a Monday statement, the camp said: "Our hearts are broken along with our families who are experiencing this unimaginable tragedies." Multiple media, including the Austin American-Statesman, reported that Richard "Dick' Eastland 70, co-owner and Director of Camp Mystic died while trying to save children from his camp in the flood. According to the website of the camp, Eastland has owned the camp with his wife Tweety Eastland since 1974. George Eastland wrote on Instagram that "if he was not going to die naturally, this was the only way, saving the daughters that he loved and cared about," Eastland’s grandson. Allison Santorelli is a National Weather Service meteorologist at the Weather Prediction Center of College Park, Maryland. She said that in Hill Country, where the worst flooding took place, an additional 2 to 4 inches would fall. Santorelli stated that new flooding could be dangerous due to the soil saturated with water and the debris in the river. The weather service has issued a flood warning for the area until 7 pm on Monday. On Thursday, state emergency management officials warned that, in advance of the Fourth of July holiday, parts of central Texas could be subject to heavy rains and flash flooding based on National Weather Service predictions. Confusion of disaster Dalton Rice, the City Manager, said that twice as much rainfall as had been predicted fell over two branches of Guadalupe, just upstream from the fork, where they converge. This water then rushed into a single channel of the river, which cuts through Kerrville. Rice, along with other officials including Governor Greg Abbott said that the floods, as well as the accuracy of weather forecasts, warning systems and their circumstances, will be examined once the immediate situation is under control. Search-and-rescue efforts were ongoing around the clock with hundreds of emergency workers on the ground tackling a variety of challenges. Martin, a reporter, told Sunday's reporters: "It is hot, there is mud, people are moving debris and there are snakes." Thomas Suelzar said that the Texas Military Department's airborne search assets include eight helicopters, and a remotely-piloted MQ-9 Reaper equipped with advanced sensors to conduct surveillance and reconnaissance. The sudden storm that dumped 15 inches of rainfall across the region about 85 miles (140 kilometers) northwest of San Antonio, caused more than 850 people to be rescued. Some were clinging onto trees. Department of Homeland Security reported that the Federal Emergency Management Agency activated Sunday and deployed resources to Texas following President Donald Trump's major disaster declaration. U.S. Coast Guard planes and helicopters are assisting in search and rescue operations. SCALING BACK THE FEDERAL RESPONSE TO DISASTER Trump announced on Sunday that he will visit the scene of the disaster, most likely on Friday. He previously announced plans to reduce the federal government's response to natural disasters and leave it to the states to take on more responsibility. Experts questioned whether the Trump administration's cuts to federal employees, including the agency overseeing the National Weather Service (NWS), led officials to fail to accurately predict flood severity and issue warnings before the storm. Former NOAA director Rick Spinrad stated that Trump's administration had overseen the thousands of job reductions from the National Oceanic and Atmospheric Administration (NOAA), the parent agency for the National Weather Service. This left many weather offices with inadequate staffing. Trump refused to answer when asked Sunday whether federal budget cuts had hampered disaster response efforts or left important job vacancies within the Weather Service, under Trump's supervision. He referred to his Democratic predecessor Joe Biden, saying, "That water issue, that's all, and that really was the Biden set-up." "But I would not blame Biden either." "I would say that this is a catastrophe of 100 years." Kristi Noem, Homeland Security Secretary at Fox News, said that on Monday there didn't appear to be any specific malfunction in the National Weather Service system. She said that the alerts were sent out hours before the flood. However, the rapid rise in water levels and the speed at which they occurred was unheard of in this region. Additional reporting by Marco Bello in Comfort, Texas, Sandra Stojanovic, Rich McKay, Alexandra Alper in Atlanta, Tim Reid, Deborah Gembara, Nathan Howard, in Morristown, New Jersey, Ryan Jones, Bhargavacharya, in Toronto, Brendan O'Brien, in Chicago, and Nathan Layne, in New York. Writing and editing by Stephen Coates and Joseph Ax.
Trudeau, trailing in surveys, satisfies legislators dissatisfied with his management
Canadian Prime Minister Justin Trudeau on Wednesday fulfilled lawmakers from his ruling Liberals, a few of whom blame him for the party's poor showing in the surveys and desire him to give up after nine years in power.
While Trudeau is in no immediate danger, considering that he can not be pushed out, the public screen of unhappiness is among the most serious political obstacles he has dealt with. Significant celebrations generally fulfill on Wednesdays, however the scenarios this time are unusual.
Trudeau insists he will lead the Liberals into the next election, which need to be held by the end of October 2025, even though studies of public opinion suggest that with him at the helm, the celebration will lose severely to the main opposition Conservatives.
A Nanos Research study survey released on Oct. 15 put the Conservatives on 39% public assistance, with the Liberals well behind on 23% and the rival left-leaning New Democrats on 21%. Such an outcome on election day would give the Conservatives a. comfy majority.
The Canadian Broadcasting Corp said 24 of the celebration's 153. lawmakers had actually signed a letter contacting Trudeau to go.
Ken McDonald, a Liberal parliamentarian from Atlantic Canada. who is not standing in the next election, stated ahead of the. meeting that some of those who signed the letter are stressed. because of the polling that is going continuously down.
Wayne Long, another lawmaker from the same area, stated if. the party had a new leader it could beat the Conservatives, who. blame Trudeau for rising costs and a real estate crisis.
There is no mechanism to oust Trudeau. Unlike Australia,. where leaders are chosen by legislators, Canadian celebration chiefs. are picked by members at an unique convention.
Misery with Trudeau bubbled up after the party lost two. of its safest parliamentary seats in unique elections in June. and September.
(source: Reuters)