Latest News
-
Why is a Peruvian farm taking RWE in Germany to court for climate change?
A Peruvian farm gets his day in court as part of a landmark climate lawsuit against German energy giant RWE. The case could change the way that companies' emissions effects are litigated. On Monday, the Higher Regional Court of Hamm is scheduled to begin hearings between RWE and farmer Saul Luciano Lliuya. Lliuya has filed a lawsuit against RWE, seeking 21,000 euros. He claims that the company's emissions contributed to the melting andean glaciers which caused a lake to rise dangerously above his home. What is the nature of the case? What is the legal basis? What does this mean for future climate litigation? What is the case about? Lliuya filed a lawsuit in 2015 with the support of the activist group Germanwatch. He claimed that RWE's greenhouse gases had contributed to the melting an Andean Glacier, which raised the water levels at Laguna Pacacocha. This created a flood risk for his home, located near the town of Huaraz. Lliuya wants RWE to contribute 21,000 euros towards the estimated cost of $3.5 million for a flood-defence project. He claims that the company is responsible for nearly 0.5% global greenhouse gas emissions caused by man since the Industrial Revolution, and therefore should be paying the equivalent of the flood protection costs. Why did it take 10 years to have a hearing? The first court to hear the case was in Essen, Germany, where RWE has its headquarters. The court rejected the claims saying that there are countless carbon dioxide emitters worldwide and any potential flood risks as a result from the melting glacial ice cannot be attributed solely to RWE. Lliuya filed an appeal against the Hamm higher regional court's decision in 2017. The court admitted the case and stated that it would be seeking evidence. The COVID-19 pandemic delayed a visit by experts appointed by the court to study flood risk around the glacier until 2022. A 200-page expert report was made available over a year after the COVID-19 pandemic. The two parties had to review it. What is the legal basis of the case? The case is based upon section 1004 (Civil Law Code) which states that the owner can require the disturber remove the interference if it is done to their property. If the court finds that the flood threat claimed by the plaintiff was real, it will then determine in the second phase the extent to which RWE's emissions of CO2 have contributed to a risk of a flood from a glacial outburst lake. The next hearing will be a preliminary step that will include the evaluation of the experts appointed by the court. Why has the case attracted so much interest? If the court holds RWE legally responsible for climate change and finds that glacier melt poses a flood threat, this would be a precedent to hold companies accountable for climate changes. The amount in dispute is less than 20,000 Euros, but it's clear that the potential to set precedents in this case is huge," says the website of Freshfields Bruckhaus Deringer, the law firm which represents RWE. Roda Verheyen said that even if the court did not find there to be a flood threat, its decision would serve as a basis for future cases. What does science say about this? Scientists at the University of Washington and Oxford University proved in 2021 that global warming caused the melting of the glacier of the Peruvian Andes, increasing flooding risks to nearby residents. Friederike Otto is a climate scientist with the Grantham Institute for Climate Change and the Environment. She said: "There are plenty of proofs that the science applies in the Andes. We have no evidence to the contra." What does RWE say about the case? RWE claims that Lliuya’s complaint is unfounded. It argues that a single emitter can't be held accountable for global warming. It has made a transition from coal to gas, but it still runs 7 lignite power plants or brown coal plants. These plants account for 26,7% of the company's total electricity generation. In 2020, there were 20 plants. It also operates 21 gas-fired power plants in Germany, the Netherlands and the UK. RWE said that its CO2 emissions will be reduced by almost half to 60,6 million tons from 118 millions tons in 2018. Further reductions are expected. The company aims to phase out lignite completely by 2030. (Reporting and editing by Adam Jourdan, Christina Fincher and Riham Alkousaa)
-
Brazil's CSN reports Q4 loss, but core earnings exceed forecasts
Brazilian steelmaker CSN posted a net loss for the fourth quarter due to "still high financial expenses," however, core earnings and revenue exceeded market expectations. Why it's important CSN is one the largest Brazilian steelmakers and miner. By the Numbers CSN reported a loss of $ 14.66 million in the quarter October-December, according to a filing with the Securities Commission. This is a significant drop from the $851 million profit it had posted a year ago. According to an LSEG survey, the company reported adjusted earnings before taxes, interest, depreciation, and amortization of 3.33 billion reais. This is down 8% from last year, but still beats analysts' expectations, which were 2.87 billion reais. Analysts had predicted 11.8 billion reais. Sales of steel increased 10.4% compared to last year, while iron ore sales fell 3.7%. KEY QUOTES CSN reported that the steelmaking operation had taken another step towards normalizing operations and regaining profitability. It added that it achieved higher volumes and prices due to the domestic market despite the weaker seasonality. CSN reported that the mining industry's volumes were affected by the beginning of the rainy seasons, but they "maintained a steady production pace and managed... to benefit from an upward trajectory in iron ore prices." MARKET COMMENTS JPMorgan analysts said that CSN Mineracao and CSN, its publicly-traded mining division, both exceeded their expectations for the quarter due to lower costs than expected. They expressed a positive outlook. JPMorgan stated that "the beat was driven primarily by strong performances in its key business areas, namely steel, mining, and cement." A revision upward of the consensus estimate is expected. ($1 = 5,7989 reais). (Reporting and Editing by Louise Heavens, Andre Romani & Gabriel Araujo)
-
Bankers: Jio Finance, India's Jio Finance, taps the debt market before bond sales with its debut commercial paper issue
Three merchant bankers confirmed on Thursday that India's Jio Finance (a unit wholly owned by Jio Financial Services) has tapped into the debt market through its first commercial paper (CP), ahead of its debut Bond sale later this month. Bankers with direct knowledge of the situation said that the non-banking financial company issued three-month CPs for a 7.80% yield and accepted bids totaling 10 billion rupees (114.95 millions). They all requested anonymity because they were not authorized to speak with the media. One of the bankers stated that "as expected, Jio Finance started its funding by issuing CP bonds of shorter duration. We expect its bond issuance in the next fifteen days before the end of the financial year, which will be March 31st." Bankers estimate that Jio Finance can raise 30 billion rupees by selling bonds for five years. The bankers have also offered a 7.75% coupon. One of them said, "The company will talk to investors and when it has enough commitments it will launch the issue." Jio Finance didn't immediately respond to an email for a comment. Crisil and Care have rated the bonds of the firm as 'AAA,' while the CPs were rated at 'A1+. The ratings for both instruments are the highest possible. In a note on ratings, Crisil said that the group's capital structure is healthy, its liquidity is robust, including its 6.1% stake in RIL (Reliance Industries), and its management team has experience. Care also said that the ratings take into consideration the company's capital buffers, which allow it to expand operations, as well as its strong liquidity framework and management's expertise.
-
Copper falls from a five-month high amid concerns over a trade war
The copper price fell on Thursday, after reaching a five-month high. Worries about the global economy overshadowed U.S. Tariffs' impact on metals prices. The price of three-month copper at the London Metal Exchange was down by 0.2% to $9,755 per metric tonne at 1045 GMT, after reaching its highest level since October 11, at $9.811. U.S. Comex Copper Futures dropped 0.1% to $4.85 a lb. Metals prices have risen due to the campaign of U.S. president Donald Trump to impose tariffs on countries to boost U.S. manufacturing. LME copper prices have risen by 11% in 2025. The U.S. 25% tariffs on steel and aluminum products went into effect on Wednesday. Trump also ordered an investigation to determine if there are any new tariffs for copper. Prices have been rising, but not for the right reasons. "It's not that demand is good, but because there's an ongoing adjustment on the metal markets," said Tom Price. He added that "people who buy copper, aluminum, and steel have no other choice but to pay for it in the short-term, but over time, they reduce their consumption or simply defer consumption." There's a great deal of confusion on the market about what type of risk they are managing. The global share market fell on Thursday amid fears that a escalating tariff war would slow down the growth of the world economy after Trump threatened to impose further tariffs on European Union products. LME zinc rose 0.4% to $2.936 per ton, after reaching a seven-week peak on Wednesday, following Nyrstar's announcement of 25% production cuts in Australia at its Hobart Zinc operations from April. Other metals include LME aluminium, which fell by 0.8% to 2,680 dollars a ton. Nickel fell 1.3% to 16,425, lead dropped 0.3% to $2,000, and tin rose 0.1% to 33,445. (Reporting and editing by Shounak dasgupta; Eric Onstad)
-
Sources say that the supply of Saudi crude oil to China will fall in April.
Trade sources reported on Thursday that Saudi Arabia's crude shipments to China, its largest customer, will drop to the lowest level for more than a full year in April. This is partly due to maintenance programs at Sinopec-owned Chinese refineries. Data shows that the OPEC producer, Saudi Arabia, allocated 34 million barrels to its Chinese clients in April, down from 41 millions barrels the previous month. China's drop in demand for Saudi crude oil is despite the Organization of the Petroleum Exporting Countries (OPEC+) and its allies agreeing to continue with their plan to increase production in April. Sinopec intends to close at least 700,000.00 barrels of crude processing capacity per day (bpd), at subsidiaries such as the Yangzi Jiujiang Gaoqiao Refineries from mid-March to May, based on data compiled based on trade and industry sources. Saudi Aramco, and Sinopec, did not respond immediately to requests for comment. The crude oil market in Asia is also stabilizing after U.S. sanctions against Russia and Iranian oil disrupted the trade in late 2024 or early 2025. Analysts and trade sources said that China's imports from the Russian Far East and Iranian crude oil will rebound in March, as tankers attracted by lucrative rewards, replaced vessels subject to U.S. sanctions. This month, Russian oil supplies have recovered to India, which is the third largest oil consumer in the world.
-
Palm firms worried about low production but demand is weak.
Malaysian palm futures rose on Thursday, supported by lower production levels but capped by persistent concerns about demand from key import countries. At the close, the benchmark May palm oil contract on Bursa Derivatives Exchange rose 52 ringgit or 1.16% to 4,533 Ringgit ($1,022.10) per metric ton. The contract fell by 2.98% over the last three sessions. The palm oil market is resilient, despite the recent sell-offs due to uncertainty in global markets over tariffs. Production hasn't picked up since March and demand remains a concern, said Paramalingam Supramaniam of Selangor brokerage Pelindung Bestari. "Even if the production picks up in the second part of the year, there won't be any big jumps. It will likely be gradual." The Malaysian Meteorological Department also issued an advisory next week that heavy rains are expected, which could continue to disrupt production", Supramaniam explained. Dalian's palm oil contract, which is the most active contract, rose by 1.18%. The Chicago Board of Trade's (CBOT), soyoil price rose by 0.19%. As palm oil competes to gain a share in the global vegetable oil market, it tracks the prices of competing edible oils. The oil prices remained largely unchanged on Thursday, after a sharp rise in the previous session due to a bigger-than-expected drop in U.S. gasoil stocks. Markets weighed macroeconomic worries against strong near-term expectations. Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger. The palm ringgit's currency has weakened by 0.2% in relation to the dollar. This makes the commodity more affordable for buyers who hold foreign currencies. ($1 = 4.4350 ringgit)
-
IEA predicts a global oil surplus in 2025, as demand falls.
The International Energy Agency reported in its monthly report on the oil market that global oil supply may exceed demand this year by 600,000 barrels a day. This follows a downward revision of its demand growth forecast for 2025. The Paris-based agency stated that the surplus could increase by 400,000 bpd if OPEC+ continues to unwind its output cuts and fails in reining in overproduction against quotas. Calculations based on IEA figures show that the IEA’s February oil report suggested a slightly smaller surplus of about 500,000 bpd. The IEA has revised its forecast for oil demand growth in 2025 by 70,000 bpd. This growth is largely driven by Asia, and specifically China's petrochemical sector. After the publication of the report, oil prices fell. Brent oil futures were trading at $70.85 as of 0926 GMT compared to $71.01 when the report was released. The data shows the challenge that OPEC+ producers face in balancing this year's oil market, given the growing trade tensions around the world and the robust growth of supply. The IEA stated that "the macroeconomic conditions which underpin our oil consumption projections deteriorated in the last month as trade tensions increased between the U.S.A. and other countries." This led the IEA to lower its estimates of demand growth for the fourth quarter 2024 and first quarter this year. The IEA predicts that global oil supply will double in 2025 compared to 2024, reaching 1.5 million bpd if OPEC+ continues to cut production after the planned unwinding of April. The report said that OPEC's April oil cut from Saudi Arabia and Algeria may only have added around 40,000 bpd to the market, as continued overproduction by other member countries leaves no room for further opening of taps. The global oil supply has already increased, even though the actual increase in supply from the gradual unwinding OPEC+ production cutbacks in April is likely to be less than the nominal increase of 138,000 bpd.
-
Musk's layoffs reduce workforce required to realize Trump's energy dominance plan
According to state officials and representatives of agencies, the Trump administration's mass firings have caused a slowdown in government approvals for new energy projects, which could be a setback for President Donald Trump's "drill baby, drill" agenda. This is one of the unintended effects of Elon Musk's Department of Government Efficiency's mass firings, which were intended to cut wasteful spending. However, current and former officials claim that this runs counter to Trump’s pledge to increase production of oil and gas as well as power generation and electrical transmission. This strategy was partly outlined in a series executive orders signed by President Trump to open up vast new areas for drilling off the coast of Alaska. Since mid-February, cuts have affected employees in agencies that are crucial to the process of issuing permits for new federal or tribal energy production. These include the Bureau of Land Management (BLM), the Bureau of Indian Affairs (BIA), and the Bureau of Ocean Energy Management. Harrison Fields, spokesperson for the White House, said that "streamlining organization charts to improve government efficiency will not affect President Obama's Drill Baby Drill initiative, and hyperventilating over cutting fraud, waste and abuse is irresponsible." Reporting showed that permitting has slowed down in the nation's most productive oil and gas producing states like New Mexico and Alaska as well as Native American tribes who rely on fossil-fuel extraction to fund public services such as schools. Federal lands and waters are responsible for almost a quarter (25%) of the total U.S. output of oil and provide public revenue through production royalties. However, it's not clear to what extent the job cuts have affected new production. According to the Energy Information Administration, the U.S. will produce an average of 13,23 million barrels a day (bpd). "I don’t understand these wide cuts," said Mike Celata who was BOEM's Gulf of Mexico regional director for seven years. This included during Trump's initial term. "You're essentially talking about an organization that has brought billions in revenue to the Treasury." Celata said that the process of rigorous environmental review is crucial to protect government oil and natural gas auctions, and drilling programs against litigation which can derail plans by fuel producers. In recent years, environmental groups' lawsuits have caused many energy projects to be delayed or cancelled. He said, "You have to follow this process." Loss of people is a serious problem. The 'proper staffing' of agencies is a must Over 20,000 federal workers have been estimated to have lost jobs, with almost all being probationary employees who have worked in their current role for less than one year. Another 75,000 of the 2.3 millions federal civil servants have accepted a buyout. In the next few weeks, more cuts are expected. Over 2,000 employees are affected, including those in the Interior Department which oversees the Bureau of Land Management and Bureau of Indian Affairs. According to the National Treasury Employees Union, who represents BLM employees, at least 250 employees of the Bureau of Land Management have lost their job. The Bureau of Land Management oversees energy production and mineral production over 245 million acres. A spokesperson for the Interior Department said that they did not expect any negative impacts. By streamlining our operations, we strengthen our ability to serve public and make government more efficient and accountable. The American Exploration & Production Council, a trade group that represents independent U.S. producers of energy, declined to comment about the job cuts. However they said it is crucial that permits offices are adequately staffed. Wendy Kirchoff is AXPC's senior vice president for policy. She said that maintaining key personnel was essential to unleashing American energy dominance. This week, the CERAWeek conference on energy in Houston echoed the need for staffing to ensure a smooth permitting process. Matt Schatzman is the CEO of NextDecade LNG, whose projects are dependent on approvals by the Department of Energy, and the Federal Energy Regulatory Commission. He said he supported cutting wasteful federal expenditures, but warned against indiscriminate cuts to job positions in the permitting agencies. We need to ensure that these agencies have the right staffing. "I cannot stress this enough," he said. "WE CAN'T ALLOW PROJECTS" The United States was already dealing with an increasing backlog of drilling permits. According to a budget document from the Interior Department published in March 2024, pending permits at BLM increased from 2,552 applications in 2017 to 5,500 in 2025. Both political parties have called for reforms in the permitting process because of the massive queues that exist for energy infrastructure projects such as transmission lines, critical minerals mining and transmission lines. The Biden administration hired more staff to help with the permitting backlog using money from the Inflation Reduction Act, a bipartisan infrastructure bill and the Inflation Reduction Act. Laura Daniel-Davis was the former acting deputy Secretary of Interior under Biden. She said, "We really pushed to follow Congress' directions and staff up for energy-related permits." Oil producing state officials say that the job cuts at DOGE are slowing down permitting. Alaskan Republican Senator Lisa Murkowski wrote in a recent Facebook post that "we can't achieve our potential for responsible mineral and energy development if we don't have the ability to permit projects." She added that 60% of Alaska was federal land. Murkowski's spokesperson Joe Plesha said that the disruption of workers is affecting projects waiting for permits, but refused to provide specifics. The American Federation of Government Employees (AFE), a union representing federal employees, reported that nearly 1,300 federal probationary employees may have been terminated in Alaska, including 300 at the Interior Department - the parent agency of BLM, BOEM, and BLM. According to a letter from the state's Congressional delegation, the BLM offices in New Mexico, which manage drilling permits for the state portion of the Permian Basin – the primary driver of record U.S. production of oil and gas – have also been affected. More than a third of New Mexico's general fund comes from revenue generated by drilling on federal lands. New Mexico Dem. "Cutting the BLM workforce could put at risk its efforts in managing our public land, including their role to safely and responsibly manage oil and gas production", said New Mexico Dem. Senator Ben Ray Lujan. According to Lauren Leib of the National Treasury Employees Union, who represents New Mexico BLM workers, permitting and preparation for new leasing sales has already slowed. After layoffs and lease sales, she said, the agency would struggle to hire staff to fulfill its mandate, which includes processing applications for drilling permits, carrying out lease sales, and ensuring environmental protection. She said that in New Mexico, a large part of the economy is dependent on oil and natural gas production. A slowdown has a ripple affect on local economies. Tribal lands also affected The Osage Minerals Council which oversees mineral affairs of Oklahoma's oil producing Osage Tribe said DOGE's plans to close Bureau of Indian Affairs Osage Agency Offices and terminate their administrator would threaten to put its oil and natural gas permits to a halt. According to BIA data, Osage lands could hold between 1.5 and 13 billion barrels in crude oil reserves. Production is expected to be around 1,000 barrels a day by 2020. The council stated in a recent statement that it would insist the Secretary of Interior explain to them how the closing of our Agency and displacing BIA staff will improve oil and natural gas permits. (Reporting and editing by Richard Valdmanis, Anna Driver and Georgina McCartney. Additional reporting by Valerie Volcovici.
Metals prices are mixed, with zinc reaching a record high after Nyrstar's production cut.
London metals were mixed on Thursday, as expectations of rate cuts rose after a U.S. inflation report that was lower than expected. Zinc surged higher by more than seven weeks on Nyrstar's decision to cut production in Australia.
The U.S. Consumer Price Index in February decreased less than anticipated, but this improvement is most likely temporary due to aggressive tariffs against imports.
The U.S. president Donald Trump retaliated against Canada on Tuesday for its retaliation to his previous tariffs. He doubled the import duty for Canadian steel and aluminium, and kept rates at 25% for all other nations, and removed prior exemptions, exclusions, and quotas.
As of 0234 GMT, the price for three-month zinc at the London Metal Exchange increased by 0.8% to $2946.5 per metric ton.
The price of zinc reached a seven-week high earlier in the session, after Nyrstar announced on Wednesday that it would be cutting 25% from its Hobart Zinc operations in Australia starting in April.
The company, owned by commodity traders Trafigura, said that its Australian assets are still facing significant financial challenges because of the worsening market conditions for raw materials, increased costs and negative treatment charges.
In an email, Nyrstar said that the zinc smelter at Hobart is one of the largest in the world. It has a capacity of 260,000 metric tonnes per year. The company did not provide the most recent output figures.
LME copper rose 0.5% to $9.805 per ton. LME aluminium was flat at $2.702.5, while lead fell 0.1% to $2.079, tin slipped 0.1% to $33,380, and nickel remained unchanged at $16,635.
The price of SHFE copper rose 1.25%, to 78.760 yuan. ($10,892.44) per metric ton. SHFE aluminium increased 0.1%, to 20,960 yuan. Zinc grew 0.9%, to 24,155. $1 = 7.2307 Chinese Yuan Renminbi (Reporting and editing by Sumana Niandy).
(source: Reuters)