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Kpler data show that Saudi Arabia increased crude exports to the United States in June.
Saudi Arabian oil exports reached their highest level in over a year during June, as the country shipped more crude into overseas storage amid fears that supply disruptions could be caused by conflict in the Middle East. OPEC’s largest producer has intervened on oil markets since decades ago to supply more oil when there are disruptions in the market or reduce output when they feel that the market is oversupplied. Kpler data show that crude exports increased by 450,000 barrels a day (bpd), from the level of May to 6.33 millions bpd, in June. Kpler predicts that there could be an increase to almost 7.5 millions bpd in July. The rise in prices last month came against the backdrop of concerns about disruptions to supply due to conflict between Israel, Iran and a U.S. strike on Iranian nuclear sites. OPEC+ sources claim that Saudi Arabia and the OPEC+ producer groups are looking to increase market share following years of production cuts. The June increase coincided also with a June decision by OPEC+ that it would raise its oil production quotas by 411,000 bpd. (Reporting and Editing by David Goodman).
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Trump highlights 'Alligator Alcatraz,' Florida deportations ahead of the bill deadline
U.S. president Donald Trump arrived in Florida Tuesday to open a remote migrant center in the Everglades, dubbed “Alligator Alcatraz”, as he presses lawmakers to pass a spending bill that would increase deportations. The facility is located about 60 km (37 miles) south of Miami, in a subtropical wetland filled with crocodiles, alligators and pythons. This is a frightening symbolism that the White House uses to demonstrate its determination to remove migrants who it believes were wrongfully allowed to remain in the United States under the former president Joe Biden's Administration. Karoline Lavitt, White House spokesperson, said at a Monday news briefing that there is only one way in and only one way out. The area is remote and is surrounded by dangerous animals and harsh terrain. "This is a low-cost and efficient way to carry out the largest deportation campaign ever undertaken in American history." Trump issued an official warning on Tuesday about the wildlife in the area. Trump told reporters that he would not like to run for a long time through the Everglades. Congressmen are discussing the details of a new bill that would increase funding for deportations. Trump has been adamant about pushing the bill through Congress before the Independence Day holiday on July 4. It includes his tax and spending plans, as well as tens billions in funding for immigration enforcement. HARDLINE POLICIES Since a decade, the Republican president who lives in Florida has made border policies that are hardline a central part of his political agenda. One out of eight voters in the 2024 U.S. elections said that immigration was their most important concern. Trump's pledge to deport up to 1 million people a year has been met with protests from the affected communities, legal challenges and employer demands for low-cost labor. Lawyers representing some of the migrants detained have questioned the legality and conditions of temporary detention centers. Government data shows that the number of federal immigrants in detention has increased dramatically to 56,000 on June 15 from 39,000 at the time Trump assumed office. His administration is also pushing to find additional space. White House officials have said that the detentions were necessary for public safety. Some of the migrants detained had criminal records. However, U.S. Immigration and Customs Enforcement statistics show an increase of eight times in the arrests of those charged with only immigration violations. Trump has praised the vast prisons that El Salvador has built and his administration has detained some migrants in the Guantanamo Naval Base, located in Cuba. This base is best known for housing suspects of foreign terrorism following the September 11th, 2001 attacks on the United States. U.S. officials used social media to promote the opening of this facility by posting images of alligators in hats from Immigration and Customs Enforcement. Florida Republican Party sells gator themed clothing and beer koozies. Rep. Debbie Wasserman Schultz (a Democrat from a nearby congressional district) said in a statement sent via email that "Trump, and Republicans desperately need this wasteful dangerous mass misery distraction." This is in reference to a bill which would result in residents of the state losing their health insurance benefits. Officials estimate that the complex at Dade Collier Training and Transition Airport in southern Florida could cost up to $450 million per year and house 5,000 people. Florida Governor Ron DeSantis said that he would send 100 National Guard soldiers to the area. Federal Emergency Management Agency (the U.S. government's disaster recovery service) is expected to provide a portion of funding. Local leaders, including those from nearby Miccosukee or Seminole Tribes, have protested the construction of the facility and pointed out the sensitive environment in the area. Demonstrators have gathered in large numbers to protest the construction. Tom Homan, Trump's border czar, said in an interview Monday that the facility was "great". "We need to add more beds." "We need to pass the beautiful, big bill."
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Dominion Energy is allowed to continue operating South Carolina nuclear plants until 2062
Dominion Energy has received approval from the U.S. Nuclear regulator to extend its operating license for its V.C. The utility has announced that it will continue to operate the Summer power station in South Carolina until 2062. After decades of stagnation in the U.S., nuclear power is undergoing a revival. This is due to a record-breaking demand for data centers that are used by artificial intelligence technologies as well as electrifying industries like transportation and manufacturing. President Donald Trump signed Executive Orders In late May, the U.S. Nuclear Regulatory Commission was directed to reduce regulations and expedite new licenses for power plants and reactors. Originally, the V.C Summer Nuclear Power Station was licensed for 40 years of operation from 1982 to 2022. In 2004, the NRC granted a license extension to continue operation for another 20 years, until 2042. Dominion Energy announced that the unit's license can be renewed until 2062. Dominion Energy received approval last year to extend operating licenses. North Anna Nuclear power plant in Virginia for another 20 years. The Richmond-based company will also seek NRC approval for the extension of Millstone Power Station's operating license in Connecticut. (Reporting and editing by Shahal Kuber, Sahal Muhammed, and Pooja Menon from Bengaluru)
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Gold gains over 1% due to weaker dollar ahead of July 9 tariff deadline
Gold prices rose more than 1% Tuesday, helped in part by the weaker dollar as well as economic uncertainty before President Donald Trump's deadline of July 9 for reintroducing higher tariffs. As of 1003 am EDT (1403 GMT), spot gold was up 1.4% at $3,348.96 an ounce. This is the highest price since June 24. U.S. Gold Futures rose 1.6% to $3361.30. The U.S. Dollar weakened on Monday as Trump's tax-cut bill and spending bill combined with concerns over trade agreements weighed on sentiment. Rhona O’Connell, StoneX's head of EMEA & Asia market analysis, explained that gold is being moved by bargain hunters, dollar weakness, and continued uncertainty over what will happen on July 9. O'Connell said that gold is likely to be around $3000/oz in the fourth quarter, and could even fall lower by year's end. U.S. Senate Republicans struggled to pass Trump's sweeping spending and tax bill in the early morning, amid deep divisions among the party. They were concerned that the legislation would add $3.3 trillion to America's debt. Gold has traditionally been considered a hedge in times of political or economic uncertainty. Treasury Secretary Scott Bessent warned on Monday that, despite the good faith negotiations in trade agreements, countries may be informed of sharply increased tariffs as an approaching deadline, July 9, approaches. Investors will also be watching the U.S. ADP Employment data, due Wednesday, as well as Thursday's Payrolls data to get a sense of how the Federal Reserve is going to set its interest rate policy. Jerome Powell, Fed chair, spoke at a conference in Portugal and said that the U.S. was in an excellent position. He said that, excluding tariffs and other factors, the inflation rate was performing as expected. The markets are expecting two rate reductions totaling 50 basis point this year. Gold's appeal is boosted by lower rates, as it pays no interest. Palladium rose 1.2% to $1.111.04 per ounce while platinum fell 0.1% to 1,350.78.
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Mediterranean Sea temperatures rise due to a marine heatwave
A marine heatwave in June saw temperatures in the Mediterranean Sea soar, and a Greek scientist warned that some species were under threat. This was likely a period of record highs. Copernicus Marine Service, a service of the EU's Copernicus Climate Change Service, reported that data from Copernicus Climate Change Service showed sea surface temperature on June 22, was more than 5 degrees Celsius higher than the average for this season. It said that the most intense warming of what it called "a marine heatwave" occurred in the western Mediterranean basin. This included the Balearic Sea off Spain and the Tyrrhenian Sea off the west coast Italy. Christos Spyrou is an associate researcher with the Academy of Athens' research centre for atmospheric science. He said: "We saw temperatures that we expected in mid-August being recorded in early June.... This is why this year is considered to be a record for temperatures in Mediterranean Sea." He stated that the sea temperature average in June was 3-6 degrees above the 1982-2023 average, which was used to compare the two periods. Spyrou stated that specific temperatures are not yet available. Some species may not be able reproduce or survive under these conditions, particularly with increasing temperatures. According to Copernicus data, Europe is the continent that warms up the fastest, with temperatures rising twice as fast as the global average. Extreme heatwaves are therefore more likely to occur earlier in the season and last into the later months. France closed scores of schools, and Spain confirmed that last month was its hottest ever June as a severe, heatwave gripped Europe. Christos, a Greek resident aged 69 who identified himself as Christos, said that he noticed the warm waters near Athens. "I've been coming here since 11 years. I think the sea is a bit warmer than in other years." "Every year, it gets warmer both in the winter and summer," said he (Reporting & Editing by Alison Williams).
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US auto sales expected to increase in the second quarter, but tariffs could drive up prices
U.S. autos sales are expected to increase in the second quarter, aided in part by a sustained demand for gasoline-powered vehicles. However, industry experts warn that tariffs imposed by President Donald Trump will likely drive up prices in the months ahead. Ford Motors, the first Detroit automaker that reported its results on Tuesday, saw sales rise 14.2% for the third quarter as Americans increased their purchases in anticipation of automotive tariffs. Peer Hyundai Motors' sales increased by 10% during the third quarter when compared with the same period in 2013. The market research firm Cox Automotive predicts that U.S. sales of new vehicles will increase by about 1.7% in the second quarter compared to a year earlier, to 4,18 million units. Chris Hopson is a principal analyst with S&P Global Mobility. He said that the potential for price increases will worsen the affordability of new vehicles in the second half. According to Cox, General Motors will likely hold the top spot for the quarter, followed closely by Toyota Motor North America and Ford. Tariffs initially boosted demand, but this boost will fade once higher prices become the norm. Charlie Chesbrough is a senior economist with Cox Automotive. He said that the consumer demand in the next few months will be lower because the demand for pull-ahead products has been satisfied. Cox expects EV automaker Tesla to report a drop of nearly 21% in the second quarter vehicle sales compared to last year. The tariffs are mainly aimed at lower-cost imported vehicles, like Ford's compact Maverick pick-up truck and GM’s affordable Chevrolet Trax cross-over. This will reduce affordability worries as the average price of a new vehicle approaches $50,000. (Reporting from Nathan Gomes, Bengaluru; additional reporting by Utkarsh shetti; editing by Alan Barona and Tasim Zahid).
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US construction spending drops again in May
The U.S. Construction spending dropped in May due to higher mortgage rates, and an increase in inventory. The Census Bureau of the Commerce Department reported on Tuesday that construction expenditures dropped by 0.3%, following a downwardly revised 0.2% drop in April. Economists surveyed by predicted that construction spending would decline 0.2%, following a 0.4% drop in April. In May, spending fell 3.5% compared to the same period last year. The amount spent on private construction projects fell by 0.5%. Residential construction investment also fell 0.5%. Outlays for new single-family housing projects dropped 1.8%. The Federal Reserve has paused its cycle of interest rate reductions because tariffs on imported products have increased economic uncertainty. The new housing inventory has reached levels not seen since late 2007. In a survey conducted by the National Association of Home Builders last month, sentiment among homebuilders of single-family homes plummeted in June to its lowest level in two and a half years. It predicted a drop in single-family home starts this year. In May, the expenditures on multi-family housing units remained unchanged. Investments in non-residential private structures such as offices and factories fell 0.4%. The spending on public construction projects increased by 0.1%. The spending on construction by state and local governments was flat, but federal government expenditures increased 1.0%. Lucia Mutikani, reporting; Paul Simao, editing.
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Spain bans concert ticket scalping and fuel advertising
The Spanish government unveiled on Tuesday a draft law aimed at encouraging sustainable consumption and reducing costs. It would prohibit practices like reselling concert ticket for profit, and advertising fossil fuels or cars powered by these. Reporters were told that the government's goal is to encourage industries' transition to more sustainable and accessible models. This will lower prices for consumers, and make significant progress in protecting the environment. The bill also prohibits "advertising that is based on fear of crime or natural catastrophes" and stops companies from making false claims or misleading statements about their environmental credentials. This practice, known as greenwashing, is illegal. The government is encouraging travellers to use the electric-powered train instead of most domestic flights. The bill must be approved by the parliament where the socialist government of Prime Minister Pedro Sanchez, who won a second term in an election in late 2023, is in a minority. The government has been unable to gain enough support from the lower house of parliament to pass several bills, and has yet to present a budget for both this year and next. Bustinduy is a member of the junior coalition partner Sumar from the extreme left. He has conducted campaigns against budget airlines, summer tourism rentals and other businesses, but with mixed results. Last week, a court suspended fines of over 179 million Euros ($211.13 Million) that his ministry had imposed on low-cost airlines for charging for cabin luggage. Some rental listings that his ministry ordered to be removed from platforms like Airbnb in May still appear on the internet.
US Supreme Court deals blows to EPA, environmental protections
In a series recent rulings, the U.S. Supreme Court has dealt a blow to environmental interests. This includes limiting the authority of Environmental Protection Agency and relaxing environmental impact study requirements for proposed projects. While the Supreme Court's nine-month term was dominated by cases concerning President Donald Trump’s immigration policies and other issues, it also continued its long-standing trend of reducing federal protections for environmental in several rulings which could be a boon to businesses.
Wendy Park, a lawyer for the Center for Biological Diversity, an environmentalist group, stated that these rulings "dealt enormous blows to the public health and safety and the environment."
Park continued, "We will all suffer from unhealthy air, less clean water and climate warming." Park's group lost the biggest environmental case of the last decade, involving a proposed Utah railroad intended to transport crude oils. The conservative Justice Brett Kavanaugh authored the 8-0 decision, which allowed federal agencies to scale back their environmental review of projects that they regulate. This boosted the project.
The decision narrowed federal agency's environmental obligations under the 1970 federal law, the National Environmental Policy Act (NEPA), passed by Congress in an effort to prevent environmental harms from large projects.
Daniel Farber, University of California Berkeley law professor, said that the NEPA case could be the most dangerous to a major change of the law, depending on how lower courts interpret the ruling.
Farber said that "the other decisions continue the process of eroding federal protection of environment." The big concern is the fact that this adds to a trend in favor of environmental protection at the Supreme Court.
Seven Utah counties, along with an infrastructure investment group, have proposed to build an 88-mile-long (142-km-long) railway in northeastern Utah. The line would connect the sparsely-populated Uinta basin region to an established freight rail network.
The National Environmental Policy Act requires that agencies evaluate the "reasonably predictable" effects of any project.
Kavanaugh wrote in his article that agencies should only take into account the environmental effects of the project under consideration and not "effects from future potential projects or geographically separated projects." Kavanaugh said that lower courts should give agencies "substantial consideration" in determining the scope of such assessments.
Park stated that "agencies approving pipelines or oil railroads now have more latitude when it comes to informing and involving communities about harms", but the court gives agencies responsible for protecting us against those harms more scrutiny.
Kavanaugh's opinion was backed by four conservative justices. The three liberal justices also weighed in on the case. Justice Neil Gorsuch was not involved in this case.
Professor James Coleman of the University of Minnesota Law School said that the ruling could be a turning-point after lower courts have been using the National Environmental Policy Act for the past 50 years to "raise higher and higher barriers to new infrastructure." Coleman said that the ruling sent a signal to lower courts to defer to agencies who exercise discretion granted by Congress.
Coleman stated that the court had demanded "a course correction" from lower courts. The court emphasized how courts' refusal to defer to agencies' environmental reviews is holding up important infrastructure projects.
Coleman said that it remains to be determined whether lower courts will accept the course correction.
REINING IN EPA
In recent years, the Supreme Court has, with its conservative majority of 6-3, taken a sceptical view towards the broad powers granted to federal regulatory agencies. It has also restricted the power of the EPA.
It blocked the EPA’s “Good Neighbor” rule in 2024. The rule was designed to reduce ozone emission that could worsen air quality in neighboring states. In 2023 it weakened the EPA's ability to protect wetlands, and combat water pollution. In 2022 it imposed limitations on the EPA’s authority to reduce carbon emissions from coal and gas fired power plants under the Clean Air Act. In March, the court again confined the EPA in a case involving a permit issued by the EPA for a wastewater-treatment facility owned and operated by the City of San Francisco. The facility empties into Pacific Ocean. The city sued the EPA to contest certain restrictions included in the permit.
The ruling by conservative Justice Samuel Alito was 5-4. It found that the EPA exceeded its authority in accordance with the Clean Water Act, an anti-pollution legislation, by imposing too vague requirements to permit holders relating to the water quality standards of the receiving body. The three liberal justices and conservative Justice Amy Coney Barrett dissented.
Howard University School of Law Professor Carlton Waterhouse stated that the ruling stripped the EPA of a commonly used mechanism to restrict the discharge of contaminants into federally regulated water at the level required for such waters meet their designated uses.
Waterhouse stated that the court's decision was a setback for both the EPA and those of us who are in need of clean water. Waterhouse said that the EPA, for example, lost an important tool to ensure that the waters are clean enough to allow these activities to continue.
Waterhouse, a former EPA official under Democratic President Joe Biden, warned that some areas of the United States may experience deteriorated water quality as a result of a "workaround" to protect state water standards without a tool they've used for decades. In a ruling written by Kavanaugh, 7-2, in June, the Justices sided with the fuel producers who had opposed California's vehicle emission standards and electric cars, under a federal law on air pollution. They agreed that their legal challenge against the mandates shouldn't have been dismissed.
The court overturned the decision of a lower-court to dismiss a lawsuit filed by a Valero Energy affiliate and groups representing the fuel industry. The lower court concluded that plaintiffs lacked legal standing to challenge a Biden era EPA decision allowing California to set its own regulation.
Waterhouse stated that it was not surprising to allow these parties into the lawsuit. The court has expanded standing for business in the past.
(source: Reuters)