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Ecuador: upfront payment required for Sacha Oil Deal
The deadline for the Chinese-Canadian group to pay an upfront payment of $1.5 billion to Ecuador to develop the most productive oil block in the country has passed, said the energy minister on Wednesday. This appears to have scuttled the deal. The consortium, which is made up of subsidiaries from the Chinese state energy giant Sinopec, and Canada's New Stratus Energy had until Tuesday evening to pay the money and the deal wouldn't go through without it. The Energy Ministry has awarded the Contract for 20 years The northeastern Sacha Field, which produced 77,000 barrels of oil per day last year, was awarded without any public bidding. The awarding of this contract has been criticized by unions, indigenous organizations, and opposition politicians. They have questioned whether Amodaimi Oil Company S.L. (the Sinopec subsidiary) and Petrolia Ecuador (the New Stratus affiliate) have the technical and operating capacity to operate the Block. Ines Manzano, the energy minister, told Ecuavisa local television on Wednesday that there was nothing more to say than that the deadline had expired. If this contract does not proceed, the president has stated that he will consider other options. The government said that it did not have the money or technology to increase production in Sacha. Petrolia is the only member of this consortium to have publicly commented on the deal. However, it did not respond immediately to a comment request. The contract included a $1.7 billion investment plan and a plan for increasing production from the field by 100,000 barrels per d ay within the first three year. Authorities had stated that, despite clauses which determined production distribution on the basis of the price of crude oil and the levels of extraction, the government's take, including upfront payment, taxes, and charges for transportation, would be about 82%. Reporting by Alexandra Valencia, Writing by Julia Symmes Cobb
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Nyrstar will reduce production by 25% at Hobart Zinc operations in Australia
Nyrstar, owned by commodity traders Trafigura, announced on Wednesday that it will reduce production at its Hobart Zinc operations by 25% from April. This news sent prices up. A statement stated that "This decision is the result of a thorough, extensive review. It is a response to the deteriorating conditions on the market and financial losses suffered by Nyrstar Australia." In an email, Nyrstar said that the zinc smelter at Hobart is one of the largest in the world. It has a production capacity of 260,000 metric tonnes per year. However, it did not provide the most recent figures. Nyrstar has said that its Australian assets face significant financial challenges as a result of the worsening raw material market conditions, increased costs, and negative treatment charges. Hobart's General Manager Todd Milne stated that "we remain optimistic about our future and are flexible to increase production levels if operating conditions improve". According to a January poll, analysts expect the global market to be in surplus this year by 147,000 tons of the metal used primarily for galvanizing the steel. This is partly due to new mines being opened. The benchmark zinc price on the London Metal Exchange fell last month, to $2,706.50 per ton. This was their lowest level in almost four months, before recovering. LME prices rose on Wednesday after Nyrstar's announcement. They gained 1.9%, reaching $2,967 per ton at 1200 GMT. This was their highest level in almost three months. (Reporting and Editing by Louise Heavens, Eric Onstad)
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After a decade, oil production returns to Libya's Mabruk Field
Libya's Mabruk Oil Operations resumed production on the Mabruk Oilfield following a decade long shutdown, said the Government of National Unity in Tripoli. According to the statement, production officially resumed on Sunday, initially at a rate of 5,000 barrels a day. The statement plans to increase this to 7,000 bpd before the end of the month and to 25,000 bpd in July. As part of efforts to improve efficiency in the country's oil operations and infrastructure, crude began to be transported to the nearby Al-Bahi fields on Tuesday. Libya's National Oil Corporation had announced that it would reopen Mabruk Oilfield in the first three months of 2023, with a production capacity up to 25,000 barrels a day. In 2015, the field was closed after a terrorist attack which NOC described. The company lost $575 million on field equipment. Libya, Africa's largest oil reserve, has struggled since 2011 to maintain consistent production levels due to internal conflict and infrastructure damage. The statement on Wednesday said: "This is a significant leap forward for Libya's oil industry, reflecting improved stabilization and confidence in our ability to rebuild and boost national economy." (Reporting and editing by Kirsten Doovan; Tala Ramadan)
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Blackstone supports Trump's tariffs, saying it will boost US Manufacturing
Stephen Schwarzman, Blackstone's chief executive officer, backed U.S. president Donald Trump's tariffs on Wednesday. He said they would boost manufacturing in the United States as well as spur growth in the largest economy in the world. Since Trump took office in January, his focus on tariffs has rattled investors and consumers around the world. Economists have also warned of the possibility of a U.S. economic recession and the drag it would cause on the global economy. Schwarzman told reporters at Blackstone’s 20th Anniversary in India in Mumbai that he expected India-U.S. Tariff Negotiations to go relatively smoothly in comparison with other countries, following a recent meet between Prime Minister Narendra Modi, and Trump. He said that U.S. Tariffs "will result in a significant rise in manufacturing activity within the United States." Schwarzman stated that "given the size and scope of the U.S. this tends to be good for the rest of the world." Trump imposed a 25 percent tariff on steel and aluminum imports into the U.S., and plans to take similar measures with other goods. Amit Dixit (head of Asia Private Equity at Blackstone) said that the private equity giant plans to double the assets it manages in India from the current level of $50 billion in the next few year. This US investment company counts India as one of its top markets. It is also the largest owner of office buildings and shopping malls, and of logistics parks. The company has invested in electric vehicle components and IT services, and built one of India's top three hospital chains. Dixit stated that the U.S.-based company, which has around $60 billion in infrastructure assets worldwide, will also deploy funds to India's infrastructure, such as data centers, towers for telecoms, renewable energy, airports and ports. Schwarzman stated that "India is in need of infrastructure, and we would like to work towards this goal." Reporting by Dhwani Paandya, Mumbai; editing by Aditya K. Kalra and Chizu Nomiyama
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EU legislator group will challenge the combustion engine ban in this year
The European Parliament's largest lawmaker group announced on Wednesday that it would attempt to overturn the European Union’s main climate policy for vehicles – a 2035 prohibition on the sales of new CO2-emitting cars – during a review this year. Supporters of the ban say that it is vital to Europe's green goals and for guiding automotive industry's low carbon transformation. Critics say the ban will hurt European automakers who are already facing a weak market, Chinese competition, and disappointing sales of electric vehicles. Jens Gieseke is the European People's Party (EPP)'s negotiator for car policies. He told the group that a review of the policy planned in the third quarter or fourth would be used to make amendments. The report will include proposals for changes, such as the sale of cars powered by combustion engines that run on biofuels and synthetic fuels beyond 2035. Gieseke said, "It would have been a mistake to prohibit the combustion engine." "If fuels have a lower carbon footprint, then this should be acknowledged." Ursula von der Leyen is the president of the European Commission and belongs to the EPP. She has, so far, resisted the pressure to weaken 2035, which she says offers investment certainty. The Commission, however, last week accelerated the review of 2026 policy for this year and gave in to the pressure of automakers, giving them three instead one year to meet the 2025 emission limit. Gieseke stated that if the other EU legislators agreed, then the 2035 goal could be included in the negotiations for the 2025 limit as soon as next month. Any changes to car policies must be approved by a majority in the European Parliament, and by a consolidated majority of EU member countries. Italy, the Czech Republic and Friedrich Merz's party, the likely successor to the German chancellor, have all pledged to revise 2035 as a target. A senior EU diplomat, however, said that for the time being, most countries do not support changing the 2035 target. The EPP currently holds 188 out of 720 seats at the European Parliament, but any change would require the support of other groups. Right-wing EU legislators favor changing the policy for 2035. Socialists, Greens and other EU lawmakers oppose lowering emissions targets and say that the focus should instead be on supporting carmakers in their transition to electric cars and catching up with Chinese rivals. Mohammed Chahim, a socialist EU legislator, warned that the "nostalgia for traditional vehicles" could stifle innovation during a debate in the European Parliament on Wednesday. He said, "I feel as if I was in the Nokia boardroom when the iPhone first came out." (Reporting and editing by Kate Abnett)
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Russell: Coking coal imports to Asia fell in February but recovery is imminent
In February, Asia's seaborne imports fell to their lowest level in three years due to a drop in demand by top buyers China and India. The factors that are causing the decline in demand for coal, which is used to produce steel, appear to be temporary. It's possible that imports of this type of coal will begin to increase from April. According to commodity analysts Kpler, Asia's seaborne exports of coking coal (also known as fuel) dropped to 15,85 million metric tonnes in February from 20,42 million in the previous month. This is the lowest level since February 2022. India, the largest buyer, saw its imports fall to 4,56 million tons, from 6,26 million tons in January. This is the lowest since December 2021. India's steel output has increased modestly in the fiscal period that began in April 2024. 124.8 million tonnes were reported for the ten months ending in January, an increase of about 4.5% compared to the previous fiscal period. The industry has been struggling with two problems, including higher imports, and government restrictions on the import of coke, which is one of the raw materials that are used to convert ore to steel. India, which is the second largest producer of crude iron and steel in the world, implemented quantitative restrictions with country-specific quotas for the import of low-ash metcoke. The total amount of overseas purchases was limited to 1.4 millions tons between January and June. The government aimed to encourage domestic steelmakers to use domestically-produced coke, but some companies have said the local product doesn't meet quality standards, with at least one producer saying it would be forced to curtail output from April onwards. Second, India's imports of steel reached a record in the first ten months of fiscal year. They were 8.3 million tonnes, up by 20.3% compared to the same period last year. The government has proposed introducing a temporary tax or safeguard duty of 15 to 25 percent on imports of steel due to the high volume of imports. South Korea was the largest supplier of steel in India, with 2.4 millions tons, from April to January. China, with 2.3, and Japan, with 1.8, were close behind. The details of the tariffs will be released within a week. According to the Mint newspaper, 15% would be likely recommended. It would only be applicable to steel products that fall below a certain price. Imposing tariffs on imports of steel should increase domestic steel production and boost demand for coking-coal imports. The demand could increase if Indian producers of coke can convince domestic producers of steel that their product is appropriate. In a furnace, coking coal can be converted into coke. CHINA TARIFFS Kpler data shows that China, which is the world's second largest seaborne coking coal importer, saw its imports fall to an 18-month-low in February, with 2,88 million tons arriving, compared to 4,60 million tons in January. China's coking coal imports tend to be lower at the end the northern winter, as steel mills reduce output to meet the lower demand and to cut air pollution. According to S&P Global Commodity Insights, the demand for seaborne coal was also reduced by increased overland imports, which increased 5% to 56,8 million tons in 2024. China's State Planner has stated that steel production in this year will be lower than 1.003 billion tonnes recorded in 2024. This is a pretty bad sign for coking coal exports. China imposed a tariff of 15% on the import of U.S. coal as a retaliatory measure against a U.S. 10% tariff on all imports to China. This was later raised by President Donald Trump to 20%. China's trade with the United States will be virtually halted by the duty on imports of coking coal from the United States. In 2024, China is expected to buy 5.75 million tonnes of this fuel, or 11.6% of all seaborne arrivals. China may have to look for alternative suppliers in order to meet its coking coal requirements. The top exporters Australia and Canada are the most realistic options. Seaborne prices are expected to be supported by the adjustments in trade flows that China's tariff has caused on U.S. Coking coal, despite February's weak volume. Singapore Exchange contracts for Australian coal coking ended at $181 per ton on February 2, and are down by 12% from the highest price so far this year of $206 in January. These are the views of the columnist, an author for.
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Health Rounds - Microplastics can contribute to drug resistant bacteria
According to new research, microplastics can cause bacteria to become resistant. Researchers from Boston University said that E. coli bacteria exposed in test tubes to microplastics became resistant to several types of antibiotics commonly used. The report was published on Tuesday in Applied and Environmental Microbiology. In a press release, Neila Gross, the study leader explained that these tiny bits of plastic provide a surface to which bacteria can attach and colonize. They create a biofilm, a sticky substance which acts as a shield to protect the bacteria and keep them firmly affixed. Gross stated that "we found the biofilms on the microplastics are thicker and stronger than other surfaces, such as glass," which prevents antibiotics from penetrating through the shield. Researchers found that even after removing the microplastics from the test tubes the bacteria still retained their ability to form biofilms. In a press release, coauthor Muhammad Zaman stated that plastics do more than provide a surface on which bacteria can adhere. They also lead to the development and spread of resistant organisms. Researchers said that the findings were especially alarming for those living in areas of high density and poverty, such as refugee camps, where plastic waste accumulates and bacterial infection spreads easily. The researchers said that such environments should be checked for antibiotic-resistant bacteria, viruses and microplastics. Less dietary butter leads to fewer deaths According to data from an extensive study, adults who use plant-based oils in place of butter are less likely to die from cancer, heart diseases, or other causes. Researchers tracked 221,000 health professionals over a period of 33 years. All participants were healthy when the study began. They found that those with the highest butter consumption had a higher mortality rate of 15% compared to those with the lowest intake. Researchers reported that those who consumed the most total plant-based oil had a lower risk of death from any cause, during the study. This was presented at the American Heart Association's EPI/Lifestyle scientific sessions in New Orleans. In an email, Dr. Yu Zhang of the Harvard T.H. Chan School of Public Health, Boston, said via email. "Instead of reducing butter consumption even modestly and replacing it with oil-based plant products, can provide significant health benefits over the long term." Each 10-gram reduction in butter consumption and each increase in plant-based oil was associated with a significant decrease in the risk of dying from cancer, heart disease or any other cause. These data were also published in the Journal of the American Medical Association. The study is not a randomised trial, and therefore cannot prove that deaths are due to diet choices. An accompanying editorial points out that, even for participants with poor diets, butter and plant-based oils are associated with lower mortality. The editorial stated that "this suggests that substituting butter with plant-based oil may offer meaningful benefits to health even when dietary patterns are less than optimal." WILDFIRE SMOKE CAN IMPAIR SKIN PROBLEMS Doctors from San Francisco reported that short-term exposure to wildfire pollution was associated with an increase in acne clinic visits and prescriptions of acne medication by pediatric patients. This finding was presented at the American Academy of Dermatology's annual meeting held in Orlando. After the Camp Fire of 2018, researchers tracked California residents to see if they had increased their doctor visits for acne vulgaris or acne rosacea. They found that the increase began five weeks after it started. Three weeks after the fire began, the number of adult acne clinic visits increased, but this increase was not statistically significant. The same team of researchers had found previously that short-term air pollution associated with wildfires was linked to an increase in clinic visits due to atopic skin dermatitis or psoriasis. They concluded that the current study, which shows a similar effect on acne, supports their hypotheses that wildfire smoke is likely to affect most, if no all, inflammatory diseases of the skin. (Reporting and editing by Bill Berkrot; Additional reporting by Shawana Allyne Morris; Reporting by Nancy Lapid)
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European stocks are boosted by optimism about Ukraine, but trade tensions persist
The euro was near its five-month high in the early European trading of Wednesday, with news that Ukraine will support a U.S. plan for a 30 day ceasefire. However, traders were cautious due to fears over U.S. tariffs. Wall Street was left in a state of confusion on Tuesday, after U.S. president Donald Trump had threatened to double the steel and aluminum tariffs against Canada to 50%. He then reversed his decision. The U.S. indexes recovered a portion of their losses in the later session, and European futures rose after Kyiv announced it would accept the U.S. ceasefire offer and the U.S. stated it would resume military aid to Ukraine and intelligence sharing. At 1032 GMT on Tuesday, Europe's STOXX 600 index was up 0.8% for the day. This is a turnaround from four days in a row of losses. The DAX in Germany and the FTSE 100 in London both rose by 1.4%. The MSCI World Equity Index, which had lost 4.1% this month so far, rose 0.1% for the day. The stock market has been hit by its worst selling in many months as Trump's tariff focus since taking office, in January, has hurt consumer confidence and businesses. It also sparked fears of an upcoming U.S. economic recession. Trump's tariffs against all U.S. imports of steel and aluminum took effect on March 1. The European Commission responded by announcing that it would implement counter-tariffs for U.S. products worth 28.40 billion euros (26 billion dollars) starting next month. Amelie Derambure is the senior multi-assets manager at Amundi. It's Europe's largest asset manager. The news is a bit painful for the markets, because tariffs are the main topic. We know that they're bad for growth, not only for the U.S. but also the rest of the globe. EURO NEAR FIVE MONTH HIGH The U.S. Dollar Index was barely changed at 103.52, while the euro reached its highest level in five months, $1.0913. This was aided by the Ukraine-related news. The Russian rouble hit a six-month high Tuesday but fell back on Wednesday. Derambure, Amundi's Derambure, said that the risk premia embedded in the euro currency due to low growth, political unrest, etc., has been declining very quickly. The yields on government bonds in the euro zone rose. The benchmark German Bund yield was near a 17 month high, as Germany's next likely chancellor Friedrich Merz worked to gain support for an increase in state borrowing. Germany's plans to overhaul borrowing rules and create a 500-billion euro infrastructure fund are expected to lead to structurally higher yields on its bonds. The German 10-year bond yield has increased by 5 basis points to 2.924%. Oil prices rose due to a weaker dollar. However, gains were limited because of fears about a U.S. slowdown, and the impact of tariffs on global growth. Brent futures rose 1.1% to $70.31 a barrel, while U.S. West Texas intermediate crude futures increased 1.2% to $67.02 a barrel. The markets are awaiting the U.S. CPI report due at 1230 GMT. It is expected that inflation will be cooling. The Canadian central bank's meeting will also be watched by traders, as markets expect a seventh consecutive cut in interest rates. ($1 = 0.9215 euros) (Reporting from Elizabeth Howcroft in Paris; additional reporting by Tom Westbrook, Singapore; editing by Alex Richardson).
South Korean steelmakers are looking to U.S.-made products with higher value as Trump tariffs begin.
As major producers around the world prepare for Wednesday's increased tariffs, two major South Korean steelmakers have been evaluating their options to invest in new facilities.
They said that the options included investing in operations in the U.S.
The U.S. President Donald Trump’s decision to increase protection for American producers of steel and aluminum restores global tariffs that are effective at 25% on all metal imports. It also extends these duties to hundreds downstream products, such as nuts and bolts, bulldozers blades and cans.
Canada, the largest foreign supplier of aluminium and steel to the U.S.A., Brazil, Mexico, and South Korea are the countries most affected. All of these countries have received some form of exemption or quota.
A spokesperson for South Korean steelmaker POSCO said, "We will focus on products with high value-added and improve our technological capabilities in order to produce existing products at a more economical price."
The spokesperson stated that "we are also reviewing investment proposals for upstream processes of steel in the U.S. and India but there has not been a final decision made yet."
A spokesperson for local rival Hyundai Steel said that the company is considering building a new steel plant in the Southeastern region of the U.S., but no decision has been made. The increased tariffs by the U.S. would negatively impact the Korean steel industry.
South Korea had previously enjoyed a duty-free quota on steel under an agreement reached in 2018, during Trump's inaugural term as president.
The trade ministry announced on Wednesday that the government would prepare measures to support domestic firms in their expansion overseas and investment into new markets.
The increased tariffs were also hoped for by firms that had a major presence in the U.S. or less exposure.
A spokesperson for Australia's BlueScope, a steelmaker listed on the Australian stock exchange, said that the company expected to see a positive impact as the U.S. Tariffs came into effect.
The company exports only 300,000 tonnes per year from its Delta, Ohio plant, despite producing more than 3 million tonnes of steel annually. The spokesperson said that the company is disappointed that Australia has not been granted an exemption.
Anthony Albanese, Australia's prime minister, said that his country would not impose reciprocal duties on the U.S. because of the potential impact on inflation. He also stated that he will continue to lobby for a respite from the U.S. government.
BlueScope's spokesperson stated that the company works closely with "the Australian diplomatic and trade staff in Canberra, Washington DC and a variety of senior representatives within Congress to ensure that the BlueScope Investment proposition is understood."
The new tariffs could benefit Vietnamese companies as they were hit with levies of 25% in 2018.
A steel trader in Hanoi said: "I believe Vietnam steel could benefit from this tariff." He declined to give his name because he wasn't authorised to talk to the media.
(source: Reuters)