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Oil prices are down after Trump-Putin Alaska Meeting
The oil markets will open with a muted reaction on Sunday following the meeting between U.S. president Donald Trump and Russian leader Vladimir Putin in Alaska. Trump stated that a full-fledged ceasefire was not his goal for Ukraine, but rather a peace agreement. Trump said that he and Putin agreed to go directly to a settlement, not through a ceasefire as Ukraine, Europe, and the U.S. have demanded. Trump announced that he would not impose tariffs on nations such as China who buy Russian oil after his meeting with Putin. Trump has threatened to impose sanctions against Moscow as well as secondary sanctions on countries like China and India who buy Russian oil, if the Ukraine conflict is not resolved. Ajay Parmar, ICIS analyst, said: "This means that Russian oil will flow unhindered and this will be bearish for the oil prices." It is important to note that this news will have a minimal impact on oil prices. Prices will probably see a slight dip in the near future. Oil market participants will be watching for any developments following the meeting between President Trump and Ukrainian president Volodymyr Zelenskiy, which took place in Washington on January 29. A source with knowledge of the matter said that European leaders were also invited to the event. Giovanni Staunovo is an analyst at UBS. He said: "Market participants will be watching the comments of European leaders, but for now Russian disruption risks will still remain contained." Brent settled at $65.85 per barrel on Friday and U.S. West Texas Intermediate was at $62.80, both down by nearly $1 prior to the talks in Alaska. According to Phil Flynn of Price Futures Group, traders are waiting for an agreement. Until then, the crude oil prices will likely remain in a small range. He said: "What we know is that for the time being, the threat of immediate or secondary sanctions against Russia and other countries has been put on hold, which is a bearish sign." After Western sanctions were imposed, including an oil embargo on ships and price caps for Russian oil, Russia redirected oil flows to China, and India. (Reporting and editing by Nina Chestney, Jane Merriman and Seher Dareen)
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Floods and heavy rains in Pakistan kill more than 300 people
Local officials reported on Saturday that more than 300 people were dead in the northwest Pakistan region after two days intense rains and flooding. They said that emergency funds were being released to help with rescue efforts and the clearing of blocked roads. The heavy rains will continue until August 21, they added. The most deadly monsoon spell this year was caused by cloud bursts and flash floods. Landslides, lightning, and collapsed buildings were also involved. According to the Provincial Disaster Management Authority, by early Saturday morning, 307 people were confirmed dead and more are missing in the mountains and hills of Khyber Pakhtunkhwa. In the last week, heavy rains and flooding have affected not only Pakistan but also India and Nepal. Local officials reported that Buner, which is a normal three-and-a half-hour drive from Islamabad, Pakistan's capital, was one of the worst-hit districts in Pakistan, with 184 deaths and extensive damage to crops, infrastructure and orchards. Cloud bursts, falling trees and flash flooding swept people and their possessions away. In some parts of Buner, people, including women, children and elderly, were trapped by floodwaters. 93 bodies have been recovered. According to Shahab Ali Shah, provincial chief secretary, many of the 34 fatalities occurred in another area of Shangla due to the collapse of a roof on a building caused by the rain. He stated that local officials were dispatched to assess damage and supervise relief efforts in the affected areas. He said that medical camps were being set up for flood victims. Also, families who had lost their homes would be receiving cooked meals. Shah stated that heavy machinery will be used to clear roads and restore them. Ishaq dar, deputy prime minister and Foreign Minister, stated that both civilian and military teams are conducting rescue and relief efforts, and the prime minister has chaired an urgent meeting. Dar posted a social media statement saying, "Our hearts go to the families that have lost loved ones and to those injured. Many whose homes and livelihoods were swept away." Five crew members were killed when a rescue helicopter crashed on Friday due to bad weather. Reporting by Mushtaq Al in Peshawar, and Saud Mehsud at Der Ismail Khan. Writing by Saeed Sha; Editing Muralikumar Aantharaman.
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US Court of appeal grants Argentina's request to halt YPF share sales
The U.S. Court of Appeals granted Argentina's request on Friday to temporarily suspend a judge’s order that the country turn over its 51 percent stake in oil company YPF as partial satisfaction for a $16.1 billion verdict won by two investors. The 2nd U.S. The 2nd U.S. Circuit Court of Appeals, Manhattan, stayed U.S. district judge Loretta Preska’s June 30, 2010 turnover order until Argentina appeals. Argentina warned it could suffer irreparable damage and destabilize its economy if it sold its stake in YPF - the country's biggest energy company. The court of appeal did not give any reasons for its decision. Preska awarded $16.1 billion to Petersen Energia Inversora & Eton Park Capital Management in September 2023. They sued Argentina for its 2012 decision to take the YPF stake away from Spain's Repsol, without making a tender to minority shareholders. The lawyers for Petersen & Eton Park have not responded to our requests for comment. The spokesperson for Argentina said that the government was confident that the $16.1 billion verdict would be overturned on appeal. (Reporting and editing by Leslie Adler, Edmund Klamann, and Jonathan Stempel)
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Pemex preparing Texas refinery for "big block" overhaul, sources claim
Pemex, Mexico's national oil company, is preparing for the "big block" overhaul at its 312,500-barrel-per-day (bpd) Deer Park, Texas, refinery to begin in early October, people familiar with plant operations said on Friday. Sources said that the 270,000 barrel-per-day (bpd) DU-2 crude distillation unit (CDU) at the refinery will be closed for the planned 60-day overhaul. Pemex did not respond to a comment request immediately. DU-2 converts crude oil to feedstocks that are used by most of the other refinery units. The sources say that the fluid catalytic unit (FCCU), the hydrocracking unit producing diesel (HCU) (70,000 bpd), and the 92,000 bpd coker, will all be shut down because there are no feedstocks. The DU-1 CDU, which has a capacity of 70,000 bpd, will continue to operate while DU-2 undergoes an overhaul. FCCUs convert unfinished gasoline from gas oil using a catalyst and high temperatures. In the presence of hydrogen, HCUs convert gas oil to gasoline by using a catalyzer under high pressure and heat. Cokers convert tar-like, residual crude oil to motor fuel feedstocks, or petroleum coke that can replace coal. (Reporting and editing by Paul Simao; Erwin Seba)
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Trump Administration unveils stricter subsidies rules for solar and wind projects
The U.S. Treasury Department announced on Friday stricter rules regarding how solar and wind energy projects qualify for federal tax incentives that will be phased out by President Donald Trump’s new tax law and spending plan over the next two-year period. The new rule requires that utility-scale projects must show continuous and substantial physical work in order to qualify for the 30% tax credit. However, they still have 4 years to claim it. In the past decade, developers of projects were able to "safe-harbor" their projects for four year by incurring only 5% of costs. A document from an agency states that "substantial work" does not include design, permitting or keeping components in stock. Solar industry trade group says the rules will harm businesses and undermine the legislators' intentions with One Big Beautiful Bill Act. Abigail Ross Hopper, CEO of the Solar Energy Industries Association, said in a press release that "this is another act of energy subtraction by the Trump administration which will further delay" the development of reliable and affordable power. "American families will be paying more for electricity because of this decision, and China will continue outpacing us in the race to provide electricity for AI." (Reporting and editing by Nichola Adler, Diane Craft and Leslie Adler)
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USDA builds Texas facility to combat flesh-eating screwsworms
Secretary Brooke Rollins announced on Friday that the U.S. Department of Agriculture would spend up to 750 million dollars to build an facility in Texas to produce sterile flies for fighting the flesh-eating pest New World screwworm. The plan reflects growing concerns about the possibility of screwworms, a parasitic fly which eats animals and wildlife alive while they are still alive, infesting U.S. beef cattle, after the pest has moved from Mexico to the north, toward the U.S.-Mexico border. A cattle shortage in the United States could increase beef prices to record levels. At a press conference with Rollins, Texas Governor Greg Abbott stated that the bill could "truly crush" the cattle industry. Ranchers in Texas, the state with the most cattle, are expecting screwworm to return for the first time since decades. In the early 20th century, the United States eradicated screwworm by dropping boxes of sterile flies from planes. Rollins stated that the production plant located in Edinburg Texas would be adjacent to a previously announced facility for dispersing sterile screwworm fly at Moore Air Base. The facility will be able produce 300,000,000 sterile screwscrew flies each week. The sterile flies are used to reduce the number of wild flies that mate. Rollins has not said when the plant will open, but he previously stated that such an installation would take between two and three years to construct. Rollins stated that the USDA would spend an additional $100 million to combat screwworm during the construction of the facility and will hire more mounted officers who will patrol the border to look for infected wildlife. In July, the agency stopped importing Mexican cattle to prevent screwworm. This tightened U.S. beef supplies which were already at their lowest level in decades. Rollins stated that "those ports won't open until the screwworm is pushed back." The USDA also invested in Mexico to build a production facility for sterile flies that will open in the coming year. A Panamanian facility can produce up to 100 millions sterile flies each week. According to the USDA, 500 million flies need to be released each week in order for screwworms to return southwards in Latin America. Rollins stated that "all Americans should be concerned."
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DOJ sues California for ending enforcement of emission standards for trucks
The U.S. Department of Justice announced on Friday that it had sued California to stop the state from enforcing emissions standards for trucks. The DOJ announced that it had filed two lawsuits in federal court this week against the California Air Resources Board regarding the state's enforcement on preempted emission standards through the so-called Clean Truck Partnership with heavy-duty trucks and engine manufacturers. In a press release, the DOJ said that these actions "promote President Donald J. Trump’s commitment to ending the electric vehicle mandate, leveling the regulatory playing fields, and promoting consumer choice in motor cars." Four major truckmakers including Daimler, Volvo and others sued the state earlier this week to prevent it from enforcing strict emission standards Trump declared null in June. Trump, the Republican president, wants to limit California's authority under federal Clean Air Act, which allows it to set pollution limits that are stricter than required by federal law, as well as Gavin Newsom, Democratic governor, who can promote electric cars to combat climate change. "President Donald Trump, and Congress, have invalidated the Clean Air Act Waivers that were the basis of California's action. Adam Gustafson is the acting assistant attorney for the DOJ Environment and Natural Resources Division. He said that CARB should respect democracy and stop enforcing illegal standards. Reporting by Andy Sullivan, Bhargav Asharya; Editing Caitlin and Rod Nickel
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One dead in suspected gang-related Orebro shooting, Swedish police say
Police said that a man was killed in Orebro, Sweden on Friday. The crime was probably gang related. The second victim was taken to hospital after being injured near the Orebro Mosque. The police declined to comment on how serious the injuries were. "I would like to emphasize that we do not see any link to the mosque at this time. A police spokesperson said that they do, however, see a link to criminal groups. Police said that no arrests had yet been made, but at least one suspect has been seen leaving the scene. The police said that the case is being investigated for murder and attempted killing. Sweden has experienced gang violence for more than 10 years. The number of fatal shootings in Sweden is among the highest of all European countries. The murder rate is comparable to that of other countries. The police stated in a press release that the shooting incident in Orebro was believed to have been linked to a criminal network. In February, ten students and teachers died in an attack in Orebro (about 200 km west of Stockholm), in what was Sweden's most deadly gun attack. The shooter in the February shootings was an ex-student who killed himself and was not affiliated with any criminal gangs. Investigators did not find a clear motive for the shooting. (Reporting from Stockholm by Anna Ringstrom and Essi lehto, with additional reporting by Johan Ahlander, Niklas pollard, and editing by Terje solsvik, Toby Chopra and Clelia Oziel. William Maclean is the editor.
Reliance's profits top estimates for energy business rebound
Reliance Industries, owned by Indian billionaire Mukesh Amani, beat expectations for its quarterly profit on Thursday, thanks to strong growth in the company's energy, retail, and digital services businesses.
According to LSEG, the combined profit for the quarter ending June 30 was 269.94 billion rupees (3.14 billion dollars), a 78.3% increase over analysts' estimates of 198.59 trillion rupees.
Reliance’s oil-to-chemicals division, which accounts for 57% of the company’s revenue, has been under pressure over recent quarters due to a decline in transportation cracks, and a sluggish petrochemical demand.
The oil-tochemicals segment, however, has benefited from an improvement in domestic fuel retail margins.
The oil-tochemicals business saw its earnings before interest, taxes and depreciation increase 10.8%, to 145.11bn rupees.
EBITDA for its digital services, which include telecom unit Jio jumped by 23.9% compared to a year ago, while EBITDA for the retail segment grew by 12.7%.
Reliance Retail, Jio and the Energy business had helped Reliance to offset the weakness in its earnings for the six-month period ending March. Retail revenue accounts for approximately 31% of total company revenues.
(source: Reuters)