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US diesel hits $4 per gallon mark as Middle East conflict drags on
As the 'U.S. - Israel 'war against Iran dragged along, the average U.S. diesel price surpassed $4 a litre?for nearly a?two year period on Wednesday. The Middle East conflict has paralyzed the Strait of Hormuz - a major global trade route through which 10% of the world's diesel supply passes. According to data from a market tracker, GasBuddy, the national average price for diesel has crossed $4 per gallon for first time since April 24th 2024. GasBuddy analyst Patrick De Haan said that the average price could rise to $4.25 - $4.45 per gallon in the coming days. However, any new developments may have an impact on the market. U.S. Diesel Futures reached $3.45 on their highest level on Wednesday. This is the highest since September 2024. According to Alex Hodes, StoneX's director of marketing strategy, diesel inventories are in short supply due to a structural shortage in refining capacity. This makes it more sensitive to the conflict in Middle East. Hodes said that the disruption in Middle East crude oil supplies also affects distillate supplies disproportionately because crude oil from this region tends to have higher distillate grades.
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Cuban oil embargo causes blackouts across the country
The national electricity union UNE?said that a power outage had struck a majority of Cuba including Havana's capital on Wednesday. This was as the island's socialist-run government 'faces 'increasing' pressure from the Trump Administration. Cuba experienced several major blackouts over the past few years, before the U.S. stopped oil shipments. Cuba's government has blamed its economic crisis on decades of?economic?sanctions imposed by the U.S. The current shortages have been exacerbated by the recent scarcity of oil due to U.S.-imposed pressure from Venezuela and Mexico. The UNE electricity 'union' said that it was working on restoring services and that the 'blackout' affected the entire island, from Camaguey in the central province to Pinar del Rio at the far western end. Cuba's Energy Ministry said that the Felton 1 thermoelectric plant in Holguin Province in eastern Cuba is still?online, and recovery protocols are in place. Venezuela, Cuba's largest oil supplier, hasn't sent any shipments since the end of December. After the capture of its President,?Nicolas?Maduro in an attack by the U.S. on the capital at the beginning of January, the U.S. now controls the country's oil exports. Mexico announced it would stop supplying oil to Cuba after the U.S. threatened to impose tariffs on countries that supply Cuba with oil. The government has rationed services due to the power cuts. (Reporting and editing by Brendan O'Boyle, Daina Beth Solon and Sandra Gaillard)
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US approves construction of Gates-backed TerraPower nuclear reactor in Wyoming
The U.S. Nuclear Regulatory Commission announced on Wednesday that it has approved the construction of a small nuclear reactor in Wyoming, backed by Bill Gates. TerraPower's 345 megawatt sodium-cooled Kemmerer reactor was approved by the Nuclear Regulatory Commission, marking the first commercial reactor approval in almost a decade. The reactor is to be constructed near a coal-fired power plant, and will become operational in the early 2030s. TerraPower announced in a press release that it will begin construction within the next few weeks. The NRC stated that the plant includes a system of energy storage to temporarily boost output up to 500 MW. The NRC completed its technical review of the design in less that 18 months. Last year, President Donald Trump issued executive orders to speed up the permitting process by the NRC. He wanted to reduce a multi-year permit process to just 18 months. TerraPower's Natrium nuclear reactor would use a fuel known as high-assay, low-enriched Uranium (HALEU), which is traditionally only produced in Russia. The NRC stated that its staff is expecting to issue the permit shortly. The U.S. Department of Energy has awarded American Centrifuge Operating (a subsidiary of Centrus Energy) and General Matter (backed by tech billionaire, Peter Thiel), $900 million to each of them for the 'development of domestic HALEU. HALEU fuel is uranium enriched to almost 20%, instead of the current 5% level used in reactors. HALEU is only enriched up to 12%, as non-proliferation activists want to avoid militants attempting to make crude nuclear weapons from targeting its supply chain. The Advanced Reactor Demonstration Program of the DOE provides funding up to $2 billion for the Natrium reactor.
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Pentagon seeks fresh supply of 13 essential minerals a day before Iran attack
A document reviewed by? showed that the U.S. Military asked mining companies to boost supplies of 13 critical minerals, which are used in semiconductors, weapons, and other products. This request was made the day before the U.S., Israel and other countries launched their attacks on Iran. It is the latest in a series of recent requests by Washington for greater access to materials widely used in warfare. The Pentagon has asked the Defense Industrial Base Consortium, a grouping of companies, universities, and other suppliers to the military, for proposals by the 20th of March on projects that would mine, process, or recycle "select minerals", according to the document. No indication was given as to whether or not the timing of the strike on Iran was deliberately coordinated. List of 13 minerals wanted includes: arsenic (bismuth), bismuth (germanium), graphite (hafnium), nickel,?samarium(tungsten), vanadium, zirconium, ytterbium and yttrium. The Pentagon requested detailed information on the costs of building a mine or processing plant, including labor,?material and other expenses. According to the request, projects could receive development funds from $100 million up to $500 million. The document didn't specify why these 13 minerals were selected. China, which is the world's largest producer, has imposed export restrictions on some minerals, including graphite, germanium and yttrium. The aerospace industry has been alerted to the shortage of yttrium. As one of 17 rare earths yttrium can be used to create coatings which prevent engines and turbines melting at high temperature. Engines?cannot function without regular application of these coatings. Indonesia is the world's largest producer of nickel. Jakarta has slowed down?exports? of this metal, which is widely used in stainless steel production and battery production. Requests for comments from the White House, DIBC, and Pentagon were not immediately responded to. Separately, on Wednesday, the Defense Logistics Agency, which purchases a wide range of goods for the U.S. Military, asked miners for information on acquiring lithium and chromium for stockpiles. Reporting by Ernest Scheyder, with additional reporting from Jarrett Renshaw and Polina Devitt in London. Editing by Veronica Brown.
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NYT reports that Iranian intelligence operatives have expressed an openness to dialogue with CIA about ending the war.
The 'New York Times' reported that operatives from Iran’s Ministry of Intelligence had expressed a willingness to talk with the U.S. Central Intelligence Agency about?ending the war. NYT reported that the offer came through a spy agency of an unnamed Middle Eastern nation, and officials from another Western country who spoke on condition of anonymity. Iran's semiofficial news agency, Tasnim, reported that a source in the Iranian intelligence ministry rejected the report. It called it "absolute lies" and "psychological warfare during a?war". The White House - and the CIA - did not respond immediately to a comment request. The report said that officials in Washington were sceptical about whether Iran or Trump's administration was really prepared for a "off-ramp", if not immediately. The Iranian ambassador to the United Nations in Geneva on Tuesday, after Israel and the U.S. launched joint strikes on Iran, ruled out a possible negotiating with the United States. On Tuesday, President Donald 'Trump' said that Tehran was willing to talk with the United States but it was too late as they continued their military campaign against Iran. (Reporting from Anusha in Bengaluru; additional reporting by Dubai Newsroom; editing by Gareth Jones, Emelia Sithole Matarise and Emelia Sithole)
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Aluminum supply problems intensify after Bahrain stops shipments and Qatar shuts down its smelter
Aluminium Bahrain, one of the largest smelters in the world, informed customers that it had halted all shipments because of the "widening" Middle East conflict. This exacerbated supply concerns following a Qatari melter shutdown the day before. After the news, the London Metal Exchange saw an increase of up to 5.1% in aluminium prices to $3,418 per ton, the highest since April 2022. Analysts said that prices could rise even further, since about 8% world supply is made in the region. Goldman Sachs stated on Monday that prices could reach $3,600 per ton if the production in this region is lost for one month. SHIPPING HALTED in the Strait of?HORMUZ Alba declared force majeure Wednesday and informed the affected customers about delays, according to a spokesperson. The shipping through the Strait of Oman between Iran and Oman has almost halted after Iranian vessels retaliated against U.S. We are unable to ship because of what is happening in the Strait of Hormuz. We're producing, but the metals are here in Alba," said the spokesperson. The spokesperson said that "the force majeure... was not caused by any disruption or damage at the smelter." The team is actively working to identify alternative shipping solutions in order to minimize the impact. Alba's website states that its smelter, which is the world's largest outside China, will produce 1.62 million tons of aluminum in 2025. The?price for lightweight metals used in construction and transport, as well as packaging, has risen 9% since Wednesday, following the U.S.-Israeli attack on Iran at the weekend. QATARI Smelter? TO SHUT Investors were on edge on Tuesday after the news that Qatari Qatalum smelter began to?shut down? and Norsk Hydro, its shareholder, issued a "force majeure" notice. Hydro has said that the shutdown of its 648,000-metric-ton smelter is expected to be complete by the end of March. A full restart may take up to 12 months. Smelters from Bahrain, Qatar and Saudi Arabia, as well as the United Arab Emirates, ship more than 5 million metric tons of metal through the Hormuz Strait every year. Bauxite, alumina and other large quantities of metal are transported 'the other way' to feed smelters. The European Aluminium Premiums (paid on top of LME metal prices) have increased to $436 per ton in April EPDc2, which is the highest level for 3-1/2 years. Meanwhile, U.S. Premiums have reached a new record of $1.075.
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SSR Mining, a Canadian company, will sell its Copler mine stake to Turkey for $1.5 billion.
SSR Mining, a Canadian company, announced on Wednesday that it had signed a binding agreement to sell its 80% stake in Turkey’s Copler Mine to Cengiz Holding A.S. in exchange for $1.5 billion. This boosted its stock by more than 12%. The gold miner also said that it was'reviewing its remaining platform in Turkey including a 20% interest in the Hod maden development project. The deal, which is expected to be completed in the third quarter of this year, will cover all SSR's mining licenses and assets located in eastern Anatolia. This includes Copler and nearby satellite deposits. Cengiz Holding A.S., one of Turkey's biggest industrial companies, has operations in copper, gold and aluminium mining and processing. SSR Mining suspended operations in Copler Mine, 2024. This was after a landslide that left at least nine missing miners. The company then conducted a review on the mine. According to RBC Capital Markets' analysts, SSR has spent approximately $149 million in reclamation and remediation activities since the landslide of February 2024. TD Cowen’s Steven Green noted that the purchase price was attractive “for a?what's seen as a?distressed asset." Green said that the deal also "supports" the Canadian miner’s strategic shift to assets in the Americas. (Reporting by Varun Sahay in Bengaluru; Editing by Shreya Biswas)
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Sources say that Chinese investors are considering selling their stake in Redexis Gas Network Operator.
People with knowledge of the discussions said that Chinese investors Guoxin Guotong Fund and CNIC Corporation are considering selling their 33.3% share in Spanish 'gas network operator Redexis' as the country prepares to introduce a new framework for remuneration. Three sources confirmed that the two investors had begun a process of hiring?advisers in order to evaluate the sale. Two sources say that a?deal could value Redexis between 2 billion and 2.5 billion?euros (2.3-$2.9billion). * In 2018, the two Chinese investors bought?33.3% Redexis. According to the website of Redexis, pension funds?Arbejdsmarkedets Tillaegspension?and Universities?Superannuation Scheme own each 33.3%. Sources say that pension funds and infrastructure funds are likely to bid for the stake. * Guoxin Guotong Fund & CNIC Corporation did not reply to a request for comments via email. Redexis declined comment. According to Spain's competition watchdog, a new?"regulatory framework" for?gas pipelines covering the period of 2027-2032 is expected to be approved later this year. Sources said that the'regulatory changes' are expected to lead to more asset sales, as buyers prefer to buy regulated assets at the beginning of the regulatory cycle to reduce uncertainty.
As Trump promotes data centers, communities push back
Trump outlines government role in data centers
The community has become more organized and responsive.
Learn from other localities by forming a network.
By Carey L. Biron
Trump announced an AI strategy in the last month, aimed at achieving U.S. leadership by cutting regulations, accelerating permits and making land and infrastructure available for data centers.
The strategy was announced after his executive order that named AI as a key component of national security, and an announcement by the private sector to invest $500 billion in a plan called "Project Stargate", which would boost AI development throughout the country.
Data centers are the brain, engine and memory of AI and cloud computing, which is used to power everything from toys for children to office efficiency and military analysis.
Local communities have expressed concern over the development of data centers that clog up already populated areas and contribute to congestion, traffic, light and noise pollution, as well as a lack of water and increased energy costs.
As they become more organized, they are building a national network that links areas with similar development challenges.
Data Center Watch reports that 140 activist groups are fighting to stop the development of data centers in 24 states. Local opposition has slowed or stopped projects worth $64 Billion in the last two years.
Morgan Butler, senior attorney at the Southern Environmental Law Center, says that under the government's latest strategy, data centers are treated in a similar way to military installations when it comes to preferential regulatory treatment.
He said that local governments could use their zoning and land-use authorities to approve or deny data center development. However, the new government strategy would rob them of all information they need to make decisions.
He said that the strategy "threatens" to discourage localities and states from adopting ordinances which limit data center development.
He said that residents are deprived of the information needed to take action.
It is harder to convince the local government of the correct decision if the information you have on hand is not accurate.
The White House has not responded to a comment request.
'HYPER-LOCAL FOCUS'
A massive increase in data centers over the past few years has led to nearly half of all data centers around the world being located in America.
Amazon, Google, Meta, as well as less-known developers like QTS are building data centers. The U.S. Department of the Interior Department is also looking for public lands that could be developed.
Many localities are eager to host this type of development in order to create jobs and boost economic growth.
According to a report released in February by the Data Center Coalition (an industry group), the data-center sector contributed $727 billion and 4.7 million jobs to the Gross Domestic Product (GDP) of the United States in 2023.
Some communities are not as enthusiastic.
Ben Inskeep is the program director of Citizens Action Coalition in Indiana, a utility watchdog group.
He said that locals find it frustrating how they operate in secrecy and wait until the very last moment to announce the construction of a new data center.
He said that communities have sought out other groups who have had similar experiences.
Inskeep stated that his coalition tracks 40 data center proposals across Indiana. Six of these have been withdrawn due to local objections.
Wendy Reigel of Chesterton, in northern Indiana led an effort last year to stop the development of a huge data center on an old golf course in a 500-home neighbourhood.
She said, "You would never have thought that a golf course for commercial purposes could become a heavy industry."
She said that the developer retracted its application, but then moved on to other nearby communities. Each of them also fought against it.
She said that the key to success is to have a "hyperlocal" focus.
The main goal is to attend the meetings. Send your viewpoint, put up yard signs and speak to people who will make the decision.
NEW TOOLS
New tools are being developed to address local concerns through legal and legislative reforms.
The state of Oregon created a new category of power users for data centers in June. This was done because of concerns about the costs of massively increased electricity usage by these operations.
Bob Jenks said that previously, costs were "spread out like peanut butter" to all users. This strategy made sense because power demands rose at a similar rate, according to Jenks.
In the last five years, industrial customers including data centers have increased their demand by 95%.
Jenks stated that electricity rates have increased by 50% over the last five years. Last year, a record number residential customers were disconnected due to non-payment.
Similar bills have been introduced in Pennsylvania and other States.
Vida Carroll lives in rural Prince William County and is concerned about the future development of Virginia's data centers, the most concentrated in the world.
She said that communities across the country are experiencing similar problems to those Virginians are facing.
She said that the actions of residents in Northern Virginia influenced elections and led to some data center proposals being scaled back.
She said that in August, they won a court case against a 2,100-acre proposed data center complex. The construction of the transmission line, and the prospect of increased electricity rates, had been a concern for residents of the area for many years.
(source: Reuters)