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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.
Glass Lewis, proxy advisor, ends benchmark recommendations under pressure
Glass Lewis, a major proxy adviser, will stop offering its "benchmark voting" recommendations in 2027. Instead they will provide a new set of options to clients.
Glass Lewis sent a paper stating that there is a growing divide between the U.S. investors and Europeans in regards to issues such as fiduciary duties and sustainability.
A spokesperson for the company said that the change in policy was also indirectly the result of criticisms the firm received from Republican politicians in the United States. The spokesperson stated that "the whole geopolitical climate is connected to this."
Glass Lewis, and its rival Institutional Shareholder Services (ISS), have come under pressure by politicians who are aligned with corporate management, as topics such as executive pay and climate politics have gained more attention at annual corporate meetings.
In Texas, for example, two firms are under investigation by the Republican Attorney General of the state over whether or not they have violated consumer protection laws, including rules about disclosing important facts. The two companies deny any wrongdoing and have won separate preliminary injunctions that block a new state statute that would have forced them to inform clients of their advice regarding environmental, social, and governance issues, which does not only serve the financial interests of shareholders.
Glass Lewis announced in its paper published on Tuesday that it will use AI to "move away from a one size fits all approach to a highly customizable, client-centric Framework." Glass Lewis will allow clients to create their own voting frameworks and will provide research that supports various voting perspectives, including those focused management views, governance, or sustainability priorities.
A spokesperson for ISS said that it will continue to adhere to its benchmark policy, but also noted that it has introduced new products and services for investors. These include research which does not contain voting recommendations.
Aaron Bertinetti is the CEO of Investor Engagement in North America at Computershare. This business includes shareholder outreach as well as investor relations. He expects that both functions will be more important, especially when proxy advisor recommendations are smaller.
In the past, companies were able to easily identify investors that they should be trying to influence. Bertinetti stated that "now the influence has become dispersed, and is much more difficult to track."
(source: Reuters)