Latest News
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Oil prices rise 1% following lower-than expected OPEC+ production increase
Early Monday, oil prices were up about 1% after OPEC+ reported a modester monthly production increase than expected. This helped to calm some fears about the addition of supply. Brent crude futures were up 63 cents or 1% to $65.16 per barrel at 2310 GMT. U.S. West Texas intermediate crude was $61.46 a barrel, an increase of 58 cents or 1%. The price increase is primarily due to OPEC+’s decision to raise production less than expected next month, as the group aimed at cushioning the recent slump on oil markets," said Tina Teng, an independent analyst. She added, "However the crude prices are likely to remain low due to a gloomy economic outlook around the world." The Organization of Petroleum Exporting Countries, Russia, and some smaller producers announced on Sunday that they would increase production by 137,000 barrels a day (bpd) from November, the same modest increase monthly as in October. This is despite persistent concerns about a looming glut of supply. Sources said that Russia wanted to increase output by 137,000 bpd in order to avoid price pressure, but Saudi Arabia preferred to double, triple, or even quadruple this figure to gain market share faster. ANZ analysts wrote in a Monday note that "OPEC+’s decision to raise production by another 137,000 bpd could be manageable given the rising disruptions in supply due to the tightening of sanctions by Europe and America against Russia." Analysts added that "Ukraine continued to intensify their attacks on Russian energy installations, targeting the Kirishi Refinery, one the largest Russian refineries with a processing capacity of over 20 million tonnes per year." Last week, the Group of Seven nations finance ministers announced that they would increase pressure on Russia to stop Moscow from generating revenue due to its invasion of Ukraine. They said this by targeting those countries who continue to purchase Russian oil or facilitate circumvention of sanctions. (Reporting and editing by Richard Chang, Jamie Freed, and Emily Chow)
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Sabesp, a Brazilian company, announces the acquisition of EMAE by Sabesp for $212 Million
Sabesp, a Brazilian water utility, announced on Sunday that it had agreed to purchase a 70.1% share in Empresa Metropolitana de Agua e Energia EMAE across multiple classes of shares for 1.13 billion reais (212 million dollars). EMAE is a Brazilian company that owns and operates a hydro-electric power generation system. This system is located in Sao Paulo, the Baixada Santista coast area, and the MedioTiete region. The acquisition of Sabesp, which combines water security and energy generation, strengthens synergies between the company's businesses, and creates a more robust platform to tackle climate challenges and the rising demand for services essential, according to a filing with the Securities and Exchange Commission. Two separate agreements will be used to acquire a controlling stake. The first agreement, with Vortx representing the bondholders of Phoenix Agua e Energia S.A. involves the purchase by EMAE of 74.9% its common shares. Sabesp will acquire 66.8% EMAE preferred shares, held by the power company Eletrobras, in a second transaction that is conditional upon the first. Sabesp stated in its filing that the transactions were separately negotiated and subject to regulatory and antitrust approval. ($1 = 5.3348 reais) (Reporting by Lisandra Paraguassu; writing by Marcela Ayres; Editing by Cynthia Osterman)
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Heavy rains in Nepal kill 47 people and block roads
Officials said that heavy rains in Nepal have caused landslides, flash floods, and washed away bridges, killing 47 people. Kalidas Dhauboji is a spokesperson of the Armed Police Force. He said that 35 people died in landslides separate in the Ilam District in the eastern bordering India. He added that nine people are missing, having been washed out by floods. Three others have died in lightning strikes in other parts of Nepal. Shanti Mahat is a spokesperson for Nepal's National Disaster Risk Reduction and Management Authority. She said that rescue efforts are ongoing to find missing people. Local media reported that landslides caused by heavy rains in Darjeeling, a hill region in eastern India, killed at least seven people. "Seven bodies have been recovered already from the debris." Two more people are known to us. We are working to recover the bodies of these two people as well," Abhishek, a Darjeeling District Police official, said in a Sunday post on social media platform X by Indian news agency ANI. Authorities reported that several highways were blocked by landslides or washed out by floods. This left hundreds of passengers stranded. Rinji Sherpa is a spokesperson at Kathmandu Airport, Nepal's largest international gateway. "Domestic flight are mostly disrupted, but international flights operate normally," he said. A district official reported that the Koshi River in southeastern Nepal was flowing at a level above danger. The river, which is responsible for deadly floods almost every year in eastern Indian state Bihar, flows over the danger threshold. Dharmendra Kumar Mihsra, district Governor of Sunsari District, said that all 56 sluice gate of the Koshi Barrage were opened to drain water, compared to about 10-12 during a normal condition. He added that the authorities had prohibited vehicular traffic on this bridge. Kathmandu's hilly terrain has seen several rivers flood roads and many homes, separating the temple-studded city from the rest the country. Every year, hundreds of people are killed in Nepal's mostly mountainous areas by landslides or flash floods. These events occur during the monsoon period which starts around mid-June. Officials said that rains would likely continue to fall on the Himalayan nation through Monday. Authorities said they are taking "all precautions and care" to assist those affected by the tragedy. (Reporting from Gopal Sharma, Kathmandu. Additional reporting by Jayshree Upadhyay, Mumbai. Editing by Lincoln Feast & Jamie Freed).
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Heavy rains in Nepal kill 22 people, cause road blockages
Officials said that heavy rains in Nepal caused landslides, flash floods, and bridges to be washed away. At least 22 people died in the past 36 hours. Binod Ghimire, the police spokesperson, said that 18 people died in separate landslides on the border of India in the Ilam District. He said that three people died from lightning strikes in southern Nepal and another person was killed by floods in Udayapur District, which is in eastern Nepal. Authorities reported that 11 people have been missing and washed out by floods since Saturday. Shanti Mahat is a spokesperson for the National Disaster Risk Reduction and Management Authority. Authorities reported that several highways were blocked by landslides, and washed out by floods. This left hundreds of passengers stranded. Rinji Sherpa is a spokesperson at Kathmandu Airport. He said that domestic flights were largely affected, but international flights continued to operate normally. A district official reported that the Koshi River in southeastern Nepal was flowing at a level above danger. The river, which is responsible for deadly floods almost every year in eastern Indian state Bihar, flows over the danger threshold. Dharmendra Mishra said that water flow in the Koshi River was more than twice normal. Mishra stated that all 56 sluice gate of the Koshi Barrage were opened to drain water, compared to about 10 to 12. During a normal situation. He added that authorities "are preparing to ban heavy vehicle from its bridge." Kathmandu's hilly terrain has seen several rivers flood roads and many homes, cutting off the capital from the rest the country. Every year, hundreds of people are killed in Nepal's mostly mountainous areas by landslides or flash floods. These events occur during the monsoon period which starts normally in mid-June. Officials from the weather service say that rains will likely lash the Himalayan country until Monday. Authorities say they're taking "maximum precautions and care" to assist those affected by this disaster. (Reporting and editing by Lincoln Feast; Gopal Sharma).
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PMI: Saudi Arabia's private non-oil sector has grown the most in six months.
A survey revealed that the non-oil sector of Saudi Arabia expanded at its fastest rate in six months during September. This was due to a surge in orders and an increase in output. The Riyad Bank Saudi Arabia Purchasing Managers' Index climbed from 56.4 to 57.8 (seasonally adjusted) in September, the highest improvement in operating conditions seen since March. Firms saw an increase in new orders, as they benefited from a strong market, new customers, and competitive pricing. For the second month in a row, new orders from overseas clients increased. The new order subindex jumped to 63.3 from 60.1 in August due to a robust domestic and international demand. The output growth rate has increased at the fastest pace since February. Naif Al Ghaith is the chief economist at Riyad Bank. He said, "Overall, the September survey shows a resilient, private sector which is navigating through cost pressures and benefiting from a firm demand, as well as steady hiring." According to a statement released before the budget, Saudi Arabia's government forecasts a real GDP growth rate of 4.4% by 2025. The non-oil sectors are expected to grow at 5%. This growth is supported by an increase in domestic demand and better employment rates. The employment growth in September was driven by a higher demand, and the need to efficiently manage workloads. The hiring rate was steady, but the subindex for this measure showed a slight decline from the previous month. Input price inflation has dropped to its lowest level in six months, mainly due to higher wages and costs of suppliers. The optimism for the future improved as firms became more confident in increased demand and large-scale infrastructure project. (Reporting and Editing by Hugh Lawson).
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As protesters confront immigration officials, Border Patrol agents in Chicago shoot a woman as she is protesting.
The Department of Homeland Security reported that U.S. Border Patrol agents shot an armed Chicago woman on Saturday as protesters and federal immigration agents clashed on the southwest side of the city. A spokesperson for the Department of Homeland Security said that no law enforcement officers were injured seriously in the incident where a group, including the woman, rammed vehicles into those used by U.S. Immigration and Customs Enforcement. According to the statement, the woman, an unidentified U.S. national, drove herself to hospital. The woman's condition was not immediately known. ICE agents used rubber bullets and pepper spray to disperse protesters during a heated exchange on Saturday. Kristi Noem, U.S. Homeland Security Secretary, said in a posting on X she would be sending more "special operations" in order to control the situation in Chicago's Brighton Park neighbourhood. Illinois Governor JB Pratt, a Democrat from Illinois, stated on Saturday that he received an ultimatum from Republican President Donald Trump requiring him to deploy his state's National Guard. Pritzker stated in a press release that it was "absolutely outrageous and unAmerican" to ask a governor to send military forces within our borders, against our will. ? Chicagoans have protested against the increased federal presence. Police clashed with hundreds protesters on Friday outside an ICE facility located in Broadview, a Chicago suburb. ICE agents have used rubber bullets and chemical munitions to repel demonstrators who were attempting on several occasions to block ICE vehicles that carried detainees in the facility. Protesters have condemned what they describe as similar heavy-handed police tactics in other Democratic cities including New York City, Los Angeles Washington D.C. and Portland, Oregon.
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Ecuador revokes environmental license for Canada's DPM to develop gold project
The government of Ecuador has revoked an environmental license that was granted to Canadian company DPM Metals in order to develop Loma Larga - a gold mine project located in a sensitive environment. Residents and authorities from the Azuay Province, where the Loma Larga Project is located, have been strongly opposed to the project. They claim that the development of this project would have a negative impact on Quimsacocha, which poses significant health risks for local communities. The Environment and Energy Ministry of Ecuador said that the decision was based on technical reports provided by local authorities from Cuenca and Azuay, which are responsible for the local drinking water and irrigation system. The statement said that the national government "reaffirms" its commitment to nature rights, water protection, and the protection of health and wellbeing of people in Cuenca and Azuay, under the precautionary principles. DPM, who acquired the project in 2020, did not respond immediately to a comment request. DPM estimated that the Loma Larga gold project would receive an investment of $419m for an annual average production of 200,000 ounces during its first five operating years. The Ecuadorean government suspended all activities related to this project in August until the company submitted an environmental management plan. This was despite the fact that it had granted the company a construction license one month earlier. Ecuador has significant gold and cobalt deposits but recent rulings by the courts and opposition from locals have often stopped mining projects. Only two mining companies are currently operating in the country. The Quimsacocha Reserve covers more than 3200 hectares, and includes the Andean Paramo ecosystem. The country's springs are one of its main sources of water. The company pledged to implement responsible and efficient environmental management in the region. (Reporting and writing by Alexandra Valencia, Sarah Morland and Gabriel Araujo, Editing and proofreading by Alistair Bell and Aurora Ellis).
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Document shows that German coalition partner wants protection for European steel
A document viewed by us on Saturday revealed that the Social Democrats in Germany, junior partners of Chancellor Friedrich Merz’s coalition, would push for a protectionist approach to Europe’s steel industry and urge the EU adopt a “buy European” strategy. Next week, the SPD under Finance Minister Lars Klingbeil is expected to adopt these proposals. The SPD calls on the European Commission adopt a "robust" trade protection strategy to protect against foreign competitors who are subsidised. The SPD stated that "at its core, a tariff-quota system is required to limit excessive import volumes and keep the market open while controlling it." These proposals will likely feed into the steel summit that the conservative chancellor has called for this month, where steel producers, German States and Trade Unions can discuss proposals to support the industry. It is unclear how far the SPD's proposal will be implemented. Most German parties were against protectionism in the past, as Germany has been a major beneficiary of low trade barriers for the last 20 years. German regulators and manufacturers are increasingly concerned about the impact of U.S. and Chinese tariffs and competition. The SPD stated in a document that "we cannot allow the domestic value creation to disappear just because international rules no longer work." It said: "This isn't about protectionism, but about enforcing rules of fair competition and European strategic interest." The SPD has also called for stricter controls to be placed on imports of Russian steel and measures to stop it from entering the European market through Turkey. De-industrialization has eroded the vote share of the SPD, especially in its former industrial heartlands. (Written by Thomas Escritt, edited by Susan Fenton).
As CEO promises accountability, Chevron employees are laid off in a long-awaited process.
A video was shown to Chevron's employees at a town hall meeting held last week. The video highlighted the success of the oil giant in Colorado, where it is the largest producer of oil and natural gas in the state.
In less than 30 minutes, the executives announced their plans to reduce up to 20% of global staff.
Chevron, despite progress made in safety and financial performance has fallen behind its competition, the company's leaders informed employees at a meeting held on February 12th. On the webcast, they stated that Chevron's business was becoming too complex, costs were creeping up, and it had difficulty making quick decisions.
Review of presentation slides as well as a recording from the Town Hall that was broadcast to all staff members worldwide.
Chevron plans to reduce its workforce by up to a fifth - or 8,000 employees - after oil prices have been in the 70-80-per-barrel range for the majority of the last year. The oil prices and the refining margins are lower than last year but enough to generate a profit of $18,3 billion for Chevron in 2024, down from $24.7billion in 2023.
The layoffs are the culmination of a difficult 18 months for Exxon Mobil, the U.S.'s second largest oil producer. Exxon Mobil, along with CNOOC and Hess partners in Guyana challenged the deal at court.
Arbitration is still pending on the deal.
Four Chevron employees said the layoffs had been widely anticipated internally. Some employees even admitted that the move was needed to compete with Exxon, and other rivals.
"I think this will be a positive thing," said an employee of Chevron, who asked to remain anonymous because they weren't authorized to speak in public.
It's hard to go through, but we were the last major company (to make cuts). "Everyone was wondering when Chevron will do it."
Chevron announced in November that it would aim to reduce costs up to $3 billion by 2026. This will include changing the way and where work is done.
Chevron's spokesperson stated that changes in the company structure would improve efficiency and results.
The spokesperson stated that "while these changes are needed, the decision to decrease our workforce is not easy."
Shell, a UK-based oil company, planned to reduce its oil and natural gas exploration and production workforce by 20% in an effort to cut costs. This was reported in August. Last month, rival UK oil major BP announced that it would cut 3,000 contract positions and 4,700 employee jobs.
Three Chevron workers said that they have experienced several rounds of layoffs in their careers due to the nature of the oil-and-gas industry. One of the employees said that layoffs during COVID-19 were even worse.
The employee stated, "They always said it would be the last time."
Due to China's rapid rise in electric vehicle sales, the world's biggest crude importer. This country has been driving the global oil demand for more than a decade.
Nick Hummel is an analyst at Edward Jones and said that uncertainty about the global economy, China's demand, and oil prices could limit future oil prices.
Mass layoffs are common in the oil sector after oil prices plummet. One Chevron employee was dismayed at the timing of layoffs in a time of relative price stability.
The person who refused to reveal his name but identified himself as a Chevron employee said, "It's a biting feeling." "Oil prices appear stable, but then they drop the hammer."
ACCOUNTABILITY
Kim McHugh read out questions from employees during the town hall. Employees asked if Chevron executives will be held responsible for their company's poor performance.
People feel that they are held accountable. "How is leadership held accountable?" McHugh stated.
Mike Wirth, CEO of the company, said that he was looking for transparency and action from his leadership team.
When things don't go well, do I get a nice excuse and a bunch of reasons, or do I get a plan?" He said.
Wirth, in response to a second question, said that Chevron, as part of its efforts to simplify the business, will also clarify who has decision-making authority and hold them accountable.
McHugh said that after several previous reorganizations staffers want to be reassured that the latest restructuring is successful.
She told the CEO, "I believe the employees would like me to say that you've committed to give us simplicity."
We don't want to have to do this again. Reporting by Sheila Dang in Houston, Ernest Scheyder in New York, Arathy Sommesekhar, Marianna Pararaga, and Nia William.
(source: Reuters)