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US energy chief tells CNBC that a new SPR oil release will be unlikely
Chris Wright, U.S. energy secretary, told CNBC that the 'United States will be 'highly unlikely' to release a slew of oil from their Strategic Petroleum Reserve if they want to calm down the energy -markets in the midst of a raging war with Iran. He said the U.S. is looking at other levers in order to lower prices. These include improving refinery efficiency and bringing more diesel fuel to the market. Wright said in Houston that a new release was "of course possible", but he thought it highly unlikely. The?U.S. The?U.S. The Energy Department announced late Friday that it had loaned energy companies 45.2 million barrels of?the SPR, which is a little over half of the initial 86?million offered. The companies must repay the SPR 'loans' with additional barrels of crude oil to the reserve. Wright stated that by implementing the swaps, the SPR will have more oil than the 415 million barrels it currently has. (Reporting and editing by Andrei Khalip, Katharine Jackson and Timothy Gardner)
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US Energy Secretary: Oil prices are not high enough to destroy demand.
Despite the fact that the markets were bouncing and oil prices were near $100 a barrel due to the U.S./Israeli war against Iran, U.S. Energy Sec. Chris Wright said on Monday, at the CERAWeek conference in Houston, Texas. After the attacks in the Middle East on energy infrastructure and the closure of an important shipping channel, the world is experiencing one of its worst energy crises. The oil prices are at multi-year highs, and fuel prices in the U.S. have surged. This could cause problems for the Republican Party of President Donald Trump ahead of the midterm elections. The Trump administration has taken'steps to calm the markets, including releasing U.S. Strategic Petroleum Reserve oil in collaboration with other members of International Energy Agency. Wright said on Monday that the U.S. would release between one million and one million-and-a half barrels of oil per day, with a goal to reach three million barrels per days. Speaking shortly after Wright's remarks, Sultan Al Jaber, CEO of Abu Dhabi state oil company ADNOC, said that the increase in oil prices was slowing the global economic growth. He also added that no country should be able?to close the Strait?of Hormuz. This chokepoint, which Iran effectively closed, accounts for around 20% of world oil consumption. Wright, when asked if a U.S. win in Iran would mean the country no longer had control over the Strait of Hormuz, told CNBC during an interview at the conference that "we need to be in the position where they're ability to threaten the Strait of Hormuz has either been gone or dramatically diminished from where it was in the past few years, last several decades." Wright stated that the Trump administration was prioritizing the supply of refineries in Asia, which has been the most affected by market shocks. He said, "We want oil to reach Asian refineries as quickly as possible and with as little downturn in refining as possible." Wright said Venezuela was "significantly better" now than it had been months earlier, after the capture of Nicolas Maduro and the U.S. taking over of the OPEC nation's oil exports. Wright, who visited Caracas in Caracas's oilfields and met with interim president Delcy Rodriquez last month, said that Venezuela will "eventually" hold elections. He did not provide any further details. U.S. NUCLEAR POWER Wright stated that the U.S. is on track to have three nuclear reactors of next-generation producing heat by July 4. This will be a prelude to delivering electricity into the grid. In?the country are being developed several so-called small modules reactors and?other advanced nuclear forms, but none of them are commercially operational at the moment. Wright said that new nuclear energy would be a crucial supplier of electrons for the U.S. electric grid, which struggles to meet the demand of data centers and electrification in industries such as transportation. Reporting by Jarrett Renshaw, Marianna Pararaga, Nathan Crooks, and Laila K. Kearney from Houston, and Timothy Gardner from Washington, D.C.
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US construction spending falls unexpectedly in January
Government data revealed that U.S. construction expenditures unexpectedly declined in January due to a general weakness in private projects. Census Bureau of the Commerce Department said that construction spending fell 0.3% on Monday, after a 0.8% increase in December which had been?upwardly re-evaluated. This was the largest?increase ever since April 2024. Economists surveyed by predicted that construction spending would increase 0.1%. Construction spending increased 1.0% in January on an annual basis. Census Bureau still has a lot of data to release after the government shutdown last year caused delays. The spending on private construction projects decreased by 0.6% in January, after rising 1.0% in the previous month. Residential construction investment?decreased by 0.8% in January after rising 2.5% in December. This was partly due to an increase in renovations. The spending on single-family housing fell by 0.2%, as mortgage rates continued to limit activity. Mortgage?rates were lower at the beginning of the year but have risen since the U.S. - Israel war with Iran began at the end February. Middle East conflict has increased oil prices and U.S. Treasury Yields amid rising inflation fears. Freddie Mac data showed that the average rate for the popular 30-year fixed mortgage had jumped from 5.98% to 6.22% at the eve before the war. Mortgage rates are based on the benchmark yield of a 10-year Treasury. The rising mortgage rates add to the higher labor and material costs that have risen due to import tariffs and immigration crackdowns. Residential investment has declined for four consecutive quarters. The spending on multi-family units, which make up a tiny part of the housing market fell by?0.7% during January. In January, spending on nonresidential private structures such as offices and factories fell by 0.4%. The spending on non-residential structures is down for eight straight quarters, despite an increase in the construction of data centres to support artificial intelligence. After a 0.1% drop in December, investment in public construction projects grew by 0.6%. In January, state and local government spending on construction rose by 0.6% and federal government expenditures increased by 1.0%. Lucia Mutikani, reporting; Paul Simao, editing.
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Sources say that the Japanese government is considering a possible intervention in the crude futures market.
Market sources reported on Monday that the Japanese government was considering intervening in crude oil futures market, as the Middle East Crisis is driving energy prices'sharply up. If agreed upon, the move would 'follow Japan’s decision to release the largest amount of oil reserves ever, in coordination and cooperation with other countries, to ease the shortages caused by the U.S./Israeli war against Iran. One source stated that the government inquired about specific methods of intervening on the crude oil futures markets. Energy prices rose after the U.S. and Israel attacked Iran, according to the previous statements of the top executives of several major exchanges. The Strait of Hormuz remains closed, which is a major route for global oil and LNG. Japan is in an extremely vulnerable position, as more than 90 percent of its oil comes from the Middle East. The yen is also weak. Tokyo's Ministry of Finance did not respond immediately to a question about reported activities in the?oil market. Atsushi MIMURA, Japan's currency diplomat, said earlier on Monday that the government is prepared to take any measures necessary to combat volatility on the?foreign-exchange market. He warned, however, that speculation on oil futures may have an impact on currencies. The Petroleum Association of Japan (the industry group that represents the country's largest oil refiners) suggested that more stockpiles should be released as?Japan battles record gasoline prices, and consumers are beginning to feel the impact of the rising cost of energy imports. Executive Director of the International Energy Agency, Rocky Swift, said that the agency is consulting with governments across Asia and Europe on the possibility of releasing more stockpiles. He added that this would calm markets but was not a solution. (Reporting and writing by Atsuko oyama, Rocky Swift, Katya Golubkova and Hugh Lawson; editing by Hugh Lawson).
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US Energy Secretary: Oil prices are not high enough to destroy demand.
U.S. Energy Sec. Chris Wright'said Monday that global oil prices had not risen 'enough' to destroy demand, despite the fact that markets were still gyrating and oil prices remained above $100 a barrel because of the U.S./Israel war against Iran. Wright's comments come during one of the most severe energy crises of recent decades, following the closing of a major?shipping route and attacks in the Middle East on energy infrastructure that has sustained?long term damage. Fuel prices in the United States have reached multi-year highs, and oil prices are at multi-year records. Fuel prices in the United States are soaring, posing a threat to President Donald Trump and his Republican Party ahead of mid-term elections. Trump?administration takes steps to pacify the markets. This includes releasing oil from?the U.S. Strategic Petroleum Reserve?along with other members of International Energy Agency. Wright said on Monday that the U.S. would release between one million and one million-and a half barrels of oil per day, eventually reaching 3 million bpd. Wright stated that the Asian region has been the most?affected' by the recent market shocks, and supplying refineries in the region was a top priority for the Trump Administration. He said, "We want as little downturn in refining as possible and to get as much oil into Asian refineries." Wright said Venezuela was "significantly better" now than it had been months earlier, after the capture of Nicolas Maduro by the U.S. The OPEC nation's oil exports have been taken over by the United States, with 200,000 bpd crude production restored to date. Wright, who visited Caracas in the last month to meet interim president Delcy Rodriguez and visit oil fields, said that Venezuela will "eventually" hold elections. He did not provide any further details.
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Trustpilot, a UK-based consumer protection company, fined £4.6m by Italian regulators for misleading consumers
The Italian competition regulator imposed a fine on Monday of 4 million euro ($4.6 million) against online review platform Trustpilot, and its subsidiaries for failing to verify reviews' authenticity and misleading consumers regarding the services they offer. Italian Competition Authority said that the 'platform's collection of reviews allowed businesses to choose which consumers would receive review invitations, thereby reducing the representationalness of published ratings. This was true even when the reviews were labeled as "verified". Trustpilot issued a statement saying that it "strongly disagrees with the conclusions reached in this finding of?the AGCM" (regulator). We will appeal it vigorously." The fine comes after Grizzly Research, a short seller, accused Trustpilot months ago of creating fake profiles which gave negative reviews then urging companies to pay subscriptions. The Italian consumer watchdog also found that Trustpilot used "dark patterns", or techniques of interface design, to hide key information about its platform's functionality and the businesses who paid for it. The company said it did not expect that the fine would have any impact on its finances or operations. As of 1416 GMT, its shares, which had fallen as much as 2.7% in early trading, were trading up by 4.2%.
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EU trade negotiations with Australia enter the "last mile"
An EU Commission spokesperson said that the European Union was in the "last miles" of negotiations for a trade deal with Australia. The EU is attempting to diversify its trade, reduce its dependence on China, and mitigate the impact of U.S. Tariffs. Since President Donald Trump launched his global tariff offensive in 2017 and China cut back on exports of vital minerals, the European Commission has been accelerating talks to achieve free trade agreements. In the last six months, it has already signed trade agreements with Indonesia and India. The European Commission's President Ursula von der Leyen will be visiting Australia along with European Trade Commissioner Maros Sefcovic to discuss the possibility of a possible agreement?with Australian Premier Anthony Albanese. "She will be meeting Prime Minister Albanese late on Monday night, early on Tuesday morning Canberra time. The goal is to 'tie down the final details,'" a spokesperson for the Commission in Brussels stated. "But... as Commissioner Sefcovic says, the last mile is the most difficult," A DEAL TO BOOST AUSTRALIA EXPORTS BY A THIRD IN 10 YEARS The EU executive has said that EU exports to Australia should increase by a third ten years after the proposed agreement. Australia is its 20th biggest trading partner. In 2025, the EU will export goods to Australia worth 42.86 billion euros and services worth 28 billion euros. The EU expects that the agreement will result in tariff reductions. It has stated that it could save 1 billion Euros in duty paid on its exports. The European Union wants to offer benefits for European wine, spirits, and machinery. This includes vehicles. Australia currently charges 33% duty on imported cars. The talks between the two sides ended in 2023 when the issue of market entry for Australian farm products into the European Union was raised. The EU is likely to impose quotas on sensitive products such as beef, lamb, mutton, rice, and sugar. EU officials estimate that the annual quota for beef, which has been a source of farmer protests in relation to?the EU’s deal with South American group?Mercosur?, will be around 30,000 tons. This agreement will also improve EU access to key raw materials such as lithium, manganese and aluminium mined in Australia.
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Nornickel, a Russian company, sees a new palladium market from China's fiberglass sector
Nornickel, world's largest palladium producer, says demand for the metal could reach 0.8 million ounces annually in the future from China's fiberglass industry, helping to offset a?expected drop in demand from the?auto sector. Nornickel of Russia, which produces about 40% of the global palladium, will set up a Palladium Centre in 2023. The center's goal is to find new uses for this metal, beyond autocatalysts which consume more than 80%. Dmitry Izotov of the Palladium Center said that China purchased 20,000 ounces?of palladium to test its use for the glass industry. After successful '300-day' industrial trials, the Chinese are now shifting to a?palladium based solution. Large-scale testing is set to begin in April 2026. He added that the total global demand for glass could be as high as 2 million ounces. Nornickel invests $100 million into a program to generate 1.7 million troy-ounces in new palladium demand annually by 2030. Izotov stated that "we needed to launch an extensive market development program to support palladium for new industrial applications because platinum is already a fairly diverse metal, whereas palladium has always been?overwhelmingly linked to autocatalysts." The company sees a?near term demand?in electrochemistry for 0.2-0.3million ounces palladium that could be used as anodes for water treatment, among other things. Nornickel, a company that?produces about 2.7 million ounces palladium per year, expects a broadly balanced market in 2026, and in the medium-term, with slowed growth of?electric cars and an increasing share of hybrids. The spot price of platinum has risen?127% by 2025. However, palladium is still trading higher, despite both metals falling 13-14% this year, to $1,780 an ounce and $1,370. (Reporting and editing by Susan Fenton; Anastasia Lyrchikova)
Copper giant Peru sees economy expand for eighth straight month
Peru's gross domestic product broadened 3.93% in November compared with the very same month of 2023, marking the eighthconsecutive month of financial growth, the South American federal government's INEI data firm stated on Wednesday.
November's financial expansion on the planet's second-largest copper-exporting nation landed conveniently above the 3.1%. projection of experts surveyed , and topped October's. development rate of 3.38%.
Peru saw double-digit development in its farming and fishing. sectors, growing 12.4% and 17.6% respectively. Peru is a top. manufacturer of fishmeal, a fertilizer made using anchovies. The. producing sector also grew 6.7%.
Peru's key mining and hydrocarbon sector, nevertheless,. dipped 2.2% while its construction sector shrunk 2.4%.
INEI associated the lower mining output to less. production of metals such as copper, zinc, gold, lead and. molybdenum, even as Peru increased its hydrocarbon output.
November's GDP growth marks the greatest month-to-month. expansion because July.
Peru's reserve bank has anticipated
development of 3.2%
through 2024, after the country fell under a recession the. previous year due to challenging environment, lower private. financial investment and sticking around effects from anti-government protests.
For 2025, the reserve bank projections GDP growth of 3.0%.
(source: Reuters)