Latest News
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Attorney General: Three suspects arrested for raiding Libya's oil company
The Attorney General of Libya said that three suspects were detained after allegedly storming Tripoli's state oil company's headquarters. This comes a day before the rival government to the east had threatened to declare force majeure for oil fields and ports due to the assaults. The National Oil Corporation is based in Tripoli under the control of the internationally-recognized Government of National Unity. Although the parallel government in Benghazi, in the east, is not recognised internationally by the international community the majority of oilfields are controlled by Khalifa haftar. The NOC denied that its corporate headquarters were stormed. It called it "completely untrue" and quoted the acting chief of its corporation as saying it was "nothing but a small personal dispute which occurred in reception." The eastern-based government also threatened to temporarily relocate NOC's HQ to "safe cities", such as Ras Lanuf or Brega which they control. The Attorney General said that the public prosecution had reviewed all the evidence, examined the scene and reviewed video footage taken at the time of incident, as well as heard testimonies from those who were present. Attorney General said that the three suspects had been handed over to the Defence Ministry, who was instructed "to arrest any remaining participants in the incident". NOC reported on Wednesday that the national crude oil production in the last 24 hours was 1,389,055 barils per day. This is normal. Libya's oil production has been interrupted repeatedly over the past decade, since the chaos began in 2014 after the country was split between rival authorities east and west in response to the NATO-backed revolt that ousted Muammar Gadhafi in 2011. Ahmed Elumami, Ahmed Tolba and Deepa Babington (Reporting).
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Sources: Creditors of Brazil Braskem are skeptical about Tanure's bid
According to two sources familiar with the situation, the government of Brazil and the major banks that are Braskem's key creditors have so far been skeptical about the bid of businessman Nelson Tanure for a controlling interest in the petrochemical company. Sources who requested anonymity in order to discuss private discussions said that for now, lenders prefer to have a plan to restructure a company, and eventually sell the shares used as collateral to repay outstanding loans. Sources said that the banks were shocked by Tanure’s formal offer to buy a controlling interest in Braskem made on Friday and had yet to meet him to discuss this. Third source said that Tanure was visiting the heads of these banks but had not provided any details about his bid. Financial details of the plan are still being kept under wraps. Tanure stated in a press release that he was committed to Braskem's long-term growth. Sources said that before the proposal was made, banks including Brazil's state-owned development bank BNDES had held discussions with specialized firms such as Geriba Investimentos or IG4 Capital which specialize in alternative investments and special situations. BNDES and IG4 Capital declined comment. Geriba has not responded to requests for comment. The plan was for an investment firm, Braskem, to restructure the company, in order to increase its value, and to allow Novonor's creditors to gradually sell their shares over time. Sources claim that the banks have not finalized any contracts with the investment firms with whom they have been in contact. Sources also said that Brazilian banks are still willing to explore other options and may engage with partners they have not yet approached. After a major scandal involving corruption about a decade back, Novonor (formerly Odebrecht) has been unsuccessfully seeking a buyer for Braskem. It pledged Braskem shares as collateral for 15 billion reais (2.65 billion dollars) in bank loan. Since then, the value of these shares have plummeted. They are now worth less than one-third of the outstanding debt. Novonor confirmed on Friday that it had received a nonbinding proposal by an investment fund connected to Tanure, and signed an agreement. The proposal also stated that it was subject to conditions including completion of negotiations with creditors banks and Novonor fulfilling its obligations to Petrobras, Braskem’s second largest shareholder. Luciana Magnhaes, Luciana Magalhaes and David Gregorio (Editing)
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Sempra Port Arthur Phase 2 receives US approval for LNG export
The Department of Energy announced on Thursday that Sempra’s Port Arthur Phase 2 Project in Texas had won U.S. approval for exporting liquefied gas to Europe and Asia. The first final LNG export approval was given by President Donald Trump, reversing a pause in the approvals ordered by former President Biden to study the environmental and economic impacts of this booming industry. According to U.S. Secretary of Energy Chris Wright, the project is "a significant expansion of a first phase that was already under construction – turning more liquid gold underneath our feet into energy for the American public." Port Arthur LNG Phase II is still awaiting a final investment determination (FID) but will export 1,91 billion cubic feet of gas per day when completed. Port Arthur Phase 1 has begun construction and will begin exporting LNG by 2027. Sempra operates Cameron LNG Export Terminal in Louisiana which exports LNG since 2019. It is also building the Energia Costa Azul Terminal in Mexico which will start commercial export operations for U.S. gas as LNG by 2026. In a recent earnings call, Sempra stated that it expected to have a final investment decision (FID) by the end the year. However, "uncertainty regarding the macroeconomic climate may impact the timing of product developments." (Reporting and editing by Lisa Shumaker; Additional reporting by Curtis Williams, Houston)
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Nikkei reports that China will resume seafood imports to Japan once the fears over Fukushima thaw.
The Nikkei reported Friday that China and Japan had agreed on procedures for resuming imports of Japanese fisheries products. This could be a sign that a trade embargo is ending, according to a source in Japan's ruling political party. The agreement was reached at a bilateral meeting between officials on Wednesday in Beijing. Both governments are working to reduce tensions resulting from the release of treated wastewater by Fukushima Daiichi Nuclear Power Plant in 2023. The report stated that under the agreed-upon measures, Japan would register its fishery processing plants with Chinese authorities and export shipments would include certificates of inspection confirming the lack of radioactive substances, such as Cesium-137. Nikkei reported that China will likely announce in the near term the resume of imports of seafood from prefectures in Japan outside the Fukushima area. China banned Japanese seafood imports from 2023. This ban came shortly after Tokyo started releasing treated wastewater to the plant that was affected by the disaster. The move triggered a diplomatic and economic backlash. The Japanese and Chinese embassies did not respond immediately to a comment request. (Reporting from Rishav Chaterjee, Bengaluru. Editing by Vijay Kishore.
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Drought declared in northwest England despite sunniest spring ever
Britain announced on Thursday that the northwest part of England is now officially in a drought after the driest spring start in decades led to a decline in water levels in reservoirs and rivers. According to the Met Office, Britain enjoyed its sunniest spring in history from March through May. However, the lack of rain has caused some concern about water conservation. The Environment Agency (EA), said that reservoir storage levels in north-west England, home to the beautiful Lake District and the cities of Manchester & Liverpool, were lower than in 1984-1995 and 2022. Scientists claim climate change makes droughts and summers drier more common. The EA stated that it would make sure water companies, such as United Utilities in the northwest, were ready to help customers reduce demand, if necessary. Emma Hardy, Water Minister, said that she was doing all in her power to hold United Utilities accountable to ensure the supply of water needed in the region is regular. The agency reported that ministers will convene the National Drought Group meeting on Thursday, to assess the current situation in the country. (Reporting and editing by Leslie Adler; Sachin Ravikumar)
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State Department overhaul will eliminate thousands of jobs and push for 'Western Values'
The Trump administration notified Congress on Thursday of its plans to overhaul the State Department. This will result in the elimination of thousands of jobs and the reorientation of the human rights bureau of the agency towards "Western Values" as well as the reorientation of the refugee bureau for the return of migrants back to their country of origin. The shake-up is part of a historic push by Donald Trump to shrink federal bureaucracy, and align the remaining staff with his "America First' priorities. Secretary of State Marco Rubio announced the reorganization plan in April. He said that the State Department took into consideration the feedback from lawmakers. The plan was designed to reduce the bureaucracy of a department, which he claimed had grown without producing results. Rubio stated in a press release that the reorganization will lead to a Department more agile, and better equipped to protect Americans around the globe while promoting America's interests. According to the notification sent by the Congress, the review of which has been conducted, more than 300 of 734 offices and bureaus will be streamlined or eliminated. In a notification, it was stated that the department planned to reduce its domestic civil service and Foreign Service workforce by 3,448 employees, from 18,780 workers employed on May 4, according to the notification. The notification said that the department plans to cut thousands of U.S.-based workers, reducing its civil service and foreign service domestic workforce by 3,448 people out of 18,780 employees employed as at May 4. On Thursday, no job cuts were announced for local employees or U.S. personnel stationed overseas. "NATURAL RIGHTS" AND "FREE LABOR" Along with offices that monitor war crimes and conflicts in the world, the role of the top official responsible for civil security, democracy and human rights, will be eliminated. The new undersecretary for foreign aid and humanitarian affairs, confirmed by the Senate, will supervise the Bureau of Democracy, Human Rights and Labor, reorganized in order to "ground Department's values based diplomacy on traditional Western conceptions of freedoms core." It is headed by the deputy assistant secretary of "Democracy and Western Values." A summary of the notification stated that the new position of undersecretary will "ensure the efficiency and oversight of the delivery of foreign aid in an era post-USAID." Trump officials began with the Department of Government Efficiency, overseen by Elon Musk. Dismantling The U.S. Agency for International Development was established shortly after Trump's inauguration in January. The new bureau will have an Office of Free Markets and Free Labor that will promote the free-market and an Office of Natural Rights which will focus on what Trump sees as a "freedom of speech backsliding" in Europe and other advanced nations. Rubio said on Wednesday that foreign officials whom the Trump administration believes to be involved with censorship would be punished. Ban on visiting the U.S. The summary stated that the Bureau for Population, Refugees and Migration would also "substantially be reorganized" to support the Administration's efforts in returning illegal aliens back to their countries of origin or legal status. As we reported earlier in the month, the Refugee Bureau will also be responsible for U.S. responses to major disasters abroad. The notification from Congress also confirms that the Bureau of Energy Resources is to be renamed. absorbed The Bureau of Economic, Energy and Business Affairs will be merged. The notification also stated that offices working on climate change policies will be eliminated. The officials have stated that closing offices doesn't necessarily mean that an issue has been dropped as a priority. Some functions will now be performed by other departmental officials. (Reporting and editing by Doinachiacu, Philippa Adler, Leslie Adler, Doina Chiacu and Humeyra Pamuk; Reporting by Simon Lewis and Humeyra Pamuk)
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Los Angeles rebuilding is complicated by rising seas
Los Angeles wildfire survivors debate rebuilding Climate change adaptation and rising sea levels are key issues City of Malibu does not plan a'managed retreat' Rachel Parsons Joan is planning to rebuild her Malibu house, located just outside Los Angeles. Laurie, citing the climate change, doesn't. The conflicting views of the siblings reflect a wider conflict that is affecting communities all along the scenic California coast. Communities are debating whether to rebuild along the sandy coastline or not. Climate change is linked with rising sea levels, more frequent and severe flooding and storms. The City of Malibu has pledged to help fire victims rebuild quickly and to protect the multi-billion-dollar shoreline of its city from climate change. Its plans exclude the so-called "managed retreat", which helps residents to move away from shore. Experts in planning and policy say Malibu may be missing an important window to adapting to the rising seas. Climate change adaptation can be complicated by the conflicting laws and regulations of cities, counties and states that affect private property rights. Anne Guerry is a scientist at Stanford University in California and the lead scientist for the Natural Capital Project. She said that while it might sound like a great idea, it is difficult to talk about people's homes and life savings. The numbers speak for themselves. In 2020, a nonpartisan state analysis found that between $8 and $10 billion in California coastal property "is expected to be under water" within 30 years. The report stated that if the highest projections of sea levels manifested, "up to two thirds of Southern California's beaches could become completely eroded before 2100." According to the World Meteorological Organization (a U.N. agency), global sea levels have risen at a rate more than twice as fast as they did during the first decade of measurements between 1993 and 2002. They will reach a record-high in 2023. Sea levels rose 4.62mm per year on average between 2013-2022 due to extreme glacier melting and ocean heat records. At the center of the controversy is the land left by the Zoloth sisters to their parents. Laurie Zoloth is an ethicist from the University of Chicago who has written about climate change and its ethical implications. Joan Zoloth knows the risks of climate change, and three generations in her family have lost their homes to the Palisades Fire. She wants to give her children a Malibu home. Zoloth, an ex-journalist, said: "I'm afraid of it." "I have talked about it with my children, and they are aware of it. They believe in science. They still mention wanting to rebuild. Laurie Zoloth said it's one thing to write about disasters in theory, but "it is quite another to have to sift through the ashes from one's childhood." She thinks that they should still sell. COASTLINES ARE CHANGING Matt Myerhoff said that even if Malibu were to purchase destroyed properties, there was no plan for this. "Where would the money come?" he asked. The price of intact homes on the Malibu coast ranges from $5 million to $10 million. Wildfires destroyed hundreds of homes, but the lots are still worth millions. The total revenue of the city for fiscal years 2024-2025 is $85,9 million. California Gov. Gavin Newsom vetoed a 2022 bill that offered low-interest loans for municipalities to purchase vulnerable properties and rent them back to residents. He acknowledged that the plan could be useful for dealing with an ever-changing coastline but said it was lacking a "statewide context". Officials in Malibu declined an interview request but wrote that they are "rebuilding the city with resilience, safety and sustainability," which includes ensuring that coastal reconstruction will meet Federal Emergency Management Agency's (FEMA's) projections of sea level rise requirements. RETREAT COMMUNITIES Financial options are available for communities who choose to retreat. FEMA offers a grant to help municipalities purchase at-risk properties from their owners. Zachary Lamb is a professor at the Department of City and Regional Planning at University of California Berkeley. He said that rolling easements were another long-term solution. Lamb explained that an easement is a way for a land trust or city to purchase a property right that will be triggered by certain physical thresholds, such as a sea level rise insurmountable. He said, "You could purchase it in advance." This easement allows the owner to use some capital elsewhere. Lamb explained that buy-and-leaseback schemes are controversial because the cities rely on property taxes. "There's therefore a real incentive to not reduce their property tax roll" by becoming landlords. He said, however, that the retreat from Malibu, and other coastal communities is "inevitable," whether it's managed or not. Guerry stated that the insurance industry would eventually force a retreat by refusing beachfront property to be insured as sea levels rise.
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As US court blocks Trump's tariffs, oil prices drop on concerns about demand in volatile session.
The oil prices dropped on Thursday after the director of the International Energy Agency warned about weaker Chinese demand. Market participants also awaited potential new U.S. sanction to curb Russian crude flow and an OPEC+ announcement on increasing output in July. Prices rose after a U.S. Court ruled on Wednesday that President Donald Trump had overstepped his powers by imposing duties across the board on imports coming from U.S. Trading Partners. The court wasn't asked to deal with some of the industry-specific tariffs Trump imposed on automobiles and steel, using a different statute. Analysts say that the Trump administration's announcement to appeal the ruling may only provide temporary relief, as it has already said they will appeal. Brent crude futures fell 60 cents or 0.9% to $64.30 per barrel at 12:12 pm EDT (1612 GMT). U.S. West Texas Intermediate Crude fell 67 cents or 1.1% to $61.17 per barrel at 12:12 p.m. EDT (1612 GMT). Futures prices fell after IEA Director Fatih Birol told Bloomberg in an interview that the demand for oil in China was weak and developments in Russia, Iran and other countries were "questionable" for oil price. The U.S. is holding talks with Iran to curb Iranian nuclear activities, which have accelerated rapidly since Trump withdrew Washington from a 2015 agreement between Iran and major power that limited these activities. Phil Flynn is a senior analyst at Price Futures Group. He said, "We've heard a lot about Iran, and whether or not we are getting closer to conflict or peace." We're moving both technically and emotionally in many of these markets. OPEC+ (Organization of the Petroleum Exporting Countries) and its allies could agree to increase oil production in July on the front of oil supply. We assume the group will agree to another large increase in supply of 411,000 barrels a day. As the group intensifies its efforts to defend market share, we expect similar increases until the end third quarter. There are concerns over possible new sanctions against Russian crude. Chevron, which had its license revoked in March by the Trump Administration, has now stopped its oil production in Venezuela and other activities. Venezuela cancelled in April cargoes that were scheduled for Chevron citing payment uncertainty related to U.S. Sanctions. Chevron exported 290,000 barrels per day of Venezuelan crude oil before then, which was over a third the total. In a recent note, Mukesh S. Sahdev, Rystad's global head of commodities markets, predicted that demand would grow faster than supply by 600,000-700,000 bpd. The price of oil futures recovered some losses on Thursday after Energy Information Administration (EIA) data revealed that U.S. crude stocks fell by 2.8 millions barrels in the last week to 440.4million barrels. Analysts expected an increase of 118,000 barrels. A wildfire in Alberta, Canada forced the evacuation of residents from a small community and led to a temporary shut down of oil and gas production. This could affect supply. Reporting by Stephanie Kelly, Anna Hirtenstein, Katya Golubkova, and Emily Chow, in New York; London; Tokyo; and Singapore. Mark Potter, Nick Zieminski, and Nia William edited the story.
Shares of Brazilian steel companies fall after the government renews tariff system
The stocks of Brazilian steel companies dropped on Wednesday, after the government announced that it would extend for another 12 months the system designed to protect the steel industry in Brazil. However, steelmakers said the system was ineffective.
Why it's important
Steel industry criticised the quotas almost immediately after they were introduced last year. They claimed that it did not control the imports, mostly from China.
Steel products are allowed to enter the country as long as they do not exceed the import quota. They will have to pay an import tax between 9% and 16 %. Agencia Brasil, the Brazilian government's news outlet, said that if the cap is exceeded a 25% tax will be applied.
MARKET REACTION
CSN fell 4.4% on the first trading day following the announcement. Usiminas was down 3.6%, and Gerdau was down 1.2%. Brazil's benchmark index Bovespa dropped only 0.5%.
CONTEXT
Sector critics had already complained that the system was too broad.
The government's announcement on Tuesday retained the exclusion of imports that come from countries with which Brazil has signed trade agreements or special conditions.
Steel industry has asked the government to extend the scheme and include all steel products under the 25% tariff as done by the European Union (EU) and the United States.
By the Numbers
Aco Brasil did not make any comment on this matter on Wednesday. (By Alberto Alerigi Jr.; Writing by Isabel Teles, Editing by Barbara Lewis.)
(source: Reuters)