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Trump's proposal will lift Biden's limits on Alaskan oil drilling
On Monday, the administration of U.S. president Donald Trump proposed rolling back Biden's limits on oil drilling in Alaska. This area is the largest undeveloped public land tract in America. This move is in line with Trump's energy agenda, which includes reducing regulations on oil and gas production and increasing domestic fuels. The Alaska National Petroleum Reserve is made up of 10.6 million acres (4.39 million hectares). NPR-A is the name given to a 23 million-acre (9,3 million-hectare) area of Alaska's North Slope, which was designated in 1923 for emergency oil supplies by the U.S. Navy. In the 1970s, the land was made available for commercial development. It is now administered by the Interior Department Bureau of Land Management. The Interior Department stated that the Biden-era regulation was in conflict with the 1976 Naval Petroleum Reserves Production Act which authorized oil and natural gas leasing. Interior Secretary Doug Burgum stated in a press release that Congress was clear in its intent to create the National Petroleum Reserve (NPR) in Alaska for responsible development in support of America's energy independence. The 2024 rule did not follow this mandate. It prioritized obstruction over production, and undermined our ability to harness American resources at a critical time for energy independence. It was reported that the Interior Department of the Biden administration had finalized a regulation in April last year to prevent oil and gas development within 40% of Alaska’s National Petroleum Preserve. This would protect the habitats of polar bears and caribou, as well as the way of living of Indigenous communities. Environmental groups praised the Biden Rule for protecting habitats, cultural resources and the U.S. economy. But Alaska officials claimed that the restrictions would result in job losses and increase the U.S.'s dependence on foreign resources. According to the U.S. Energy Information Administration, Alaska's North Slope is responsible for just under 3% of U.S. crude oil production. (Reporting and editing by Nichola Gardner and Timothy Gardner)
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Petrobras Brazil has cut gasoline prices for first time since 2023
Petrobras, the state-owned oil company of Brazil, has announced that it will lower gasoline prices for distributors starting Tuesday. This is the first time since October 2023 that the price of the fuel has been reduced. Petrobras announced in a Monday statement that gasoline prices would drop by 5.6%, to an average of 2.85 reais ($0.5005)/litre. This represents a 0.17-reais reduction per litre. According to ANP data, gasoline sales in Brazil increased 4.6% from April of last year, and reached 3.81 billion litres. Gasoline sales in the first four months of the year totaled 14.74 billion litres. This is a 3.5% increase compared to 2024. Last year, sales declined compared to the previous year. Petrobras, since 2023 has implemented a new price policy to prevent the transfer of international volatility to the domestic market. Petrobras' last price adjustment occurred in July 2024 when it raised gasoline prices 7%. Petrobras will reduce its prices, but it won't be immediately felt by consumers. This is because the price reduction will be dependent on factors like tax collection, ethanol blends, and margins for distribution and retail. $1 = 5.6939 Reais (Reporting and writing by Marta Nogueira, Editing by Aida Pelaez-Fernandez, Susan Fenton).
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Botswana will cut its growth forecast due to the prolonged downturn in the diamond market
A senior official in the financial ministry said that Botswana's economic growth projection for 2025 will be cut to zero because of a prolonged decline in the diamond industry. The budget deficit is also expected to increase due to the reduced diamond revenues. Botswana has the highest value of diamonds in the world. Its economy is heavily dependent on diamond exports which contribute to around 30% of its national revenue and 75% of its foreign exchange earnings. Ndaba Gaolathe, the finance minister, had forecasted a 3.3% increase in this year's budget in the 2025 Budget announced in February. This was based on the expected recovery in the diamond industry. He had predicted a budget deficit of 7.56 % of the gross domestic product for the financial year 2025/26, which runs from April to march. This was lower than his previous estimate of 9% GDP. Tshokologo Alex Kganetsano, permanent secretary at the Ministry of Finance, told a meeting of the Parliamentary Audit Committee on Monday that these estimates are no longer achievable. Kganetsano stated that "in view of the events since...February, we will revise downwards this growth projection." We have a preliminary number of almost zero percent. However, this figure must be vetted internally before it can be made public. The International Monetary Fund predicts that Botswana’s economy will contract by 0.4% in this year. The Botswana economy is expected to contract by 3% this year, mainly due to the downturn in the diamond markets. However, the government was expecting mineral revenues to increase significantly, including diamonds. This would have helped it avoid another recession. Kganetsano stated that "the trend does not seem to be improving, but rather it is a deteriorating." He added, "As a result of the slowdown in inflows, we are sitting on unpaid invoices for government suppliers." He said that a significant drop in revenue has led to massive liquidity issues, which threaten the financial sustainability and viability of government operations. (Reporting and editing by Alessandro Parodi, Susan Fenton and Brian Benza)
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A man convicted of burning Koran in front of London's Turkish Consulate
The man who burned a Koran in front of the Turkish Consulate in London on Monday was found guilty of a religiously aggravating public order offense. Critics said that the verdict effectively reinstated the abolished law of blasphemy. Hamit Coskun was fined $325 at London's Westminster Magistrates' Court for being disorderly after he shouted "Fuck Islam!" while holding aloft a burning book in front of the consulate near central London's in February. The lawyer for Coskun whose father is Kurdish, and his mother Armenian, and who lives in central England had argued the prosecution amounted a return of a blasphemy act that was abolished by England in 2008. Coskun denied the charges and claimed on social media that he was protesting against the Turkish Government. He was attacked while holding the book up by a man who had a knife and spit at him. "Burning religious books, while offensive to some, is not necessarily disorderly," stated Judge John McGarva. The timing and place of his behavior, as well as the abusive language that accompanied it, made him a disorderly person. It was unnecessary for him to direct the "F-word" at Islam." The National Secular Society, which paid his legal fees and echoed the Conservative Party's main opposition, called the prosecution "a significant blow" to freedom of speech. "Britain does not have a blasphemy law." This verdict, however, creates a blasphemy law de facto," posted the party on X. "Parliament has never voted in favor of it. The British people don't want it. This decision is wrong." This decision is wrong."
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Trump Budget proposes closing Northeast Heating Oil Reserve
The budget of President Donald Trump proposes that the Northeast Home Heating Oil Reserve be closed as soon as a few weeks. This reserve, which contains 1 million barrels and was created to protect consumers, stores diesel. The reserve created by the former president Bill Clinton in 2000 is enough to heat homes for approximately 10 days. The reserve hasn't been used since 2012 when emergency responders were provided with fuel in the wake of Hurricane Sandy. According to the proposal, proceeds from the sale of ultra-low sulfur fuel in fiscal year 2020 would be used for deficit reduction. The proposal said that at current prices the proceeds from a sale of ultra-low sulfur diesel would amount to $86 million. However, closing the plant could reduce maintenance costs. The U.S. Budget proposals outline an administration's policy, but what legislators ultimately adopt can differ from the White House requests. Former President Joe Biden had proposed to increase the reserve in November 2022 as a way to protect against inflation and spikes in heating oil costs after Russia's invasion of Ukraine. This plan was never implemented, but it would have funded the purchase of the reserve with revenue from the sale of the Strategic Petroleum Reserve (the world's largest stockpile for emergency crude oil). The Department of Energy didn't immediately respond to an inquiry about the proposed closure of the heating oil reserves. (Reporting and editing by Timothy Gardner)
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Mali court adjourns the hearing on whether Barrick's Gold Mines should be placed under provisional management
The registry office of a Malian court and one of the lawyers concerned told reporters on Monday that the hearing to determine whether Barrick Mining's Loulo-Gounkoto Gold Complex should be placed under temporary administration has been adjourned until Thursday. If granted, this would be a significant escalation in the dispute between the West African nation and the Canadian miner. Operations at the complex had been suspended in January due to a disagreement over taxes and ownership. Barrick Mining (formerly Barrick Gold) and Mali’s military-led Government have been at odds over the implementation of the new mining code since 2023. The code raises taxes, while giving Mali’s government a larger share of the gold mines. The government seized 3 metric tonnes of gold in January, accusing Barrick of failing to meet its tax obligations. Barrick's exports of gold had been blocked by the government since early November. Barrick says it will only restart operations once the Malian government lifts its restrictions on gold exports. The gold price has risen by 28.5% this year, after gaining 27% last year. On April 22, the market reached a new record of $3,500.05 an ounce. Mali, as a shareholder of the complex, asked last month the Bamako Commercial Court for a temporary administrator to run the mines while negotiations continued between the two parties. Two people familiar with the matter said that the main sticking point in negotiations is Mali's request that Barrick move to the 2023 Mining Code. Under the new mining laws, the government has renegotiated contracts with other multinational miner companies. Four Barrick employees were detained in November 2024, and an arrest warrant for the Chief Executive Mark Bristow was issued in December 2024. Barrick has publicly denied the allegations against its employees without specifying exactly what they are. A court document reviewed revealed that they included money laundering and funding of terrorism. (Additional reporting by Divyarajagopal, Toronto; Editing and proofreading by Bernadettebaum)
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Goldman Sachs raises its second-half 2025 aluminum forecast to $2.280/t
Goldman Sachs raised its forecast of aluminium prices for the second half 2025 from $140 per metric tonne to $2,280, citing smaller than expected surpluses on the market. However, they expect prices to fall in early 2026. The bank stated that the impact of trade wars on global activity was less than expected. This led it to increase its global aluminium growth forecast for 2025 from 1.1% to 1.8%. Donald Trump, the U.S. president, announced on Friday that he would increase import tariffs from 25% to 50%. Around half of the aluminium used for packaging, construction and transport in the United States is imported. As of 1421 GMT, the benchmark three-month aluminum on London Metal Exchange had increased by 0.8% to $2,463 per ton. Goldman Sachs predicts that aluminium prices will fall to a minimum of $2,100 a ton by early 2026. It forecasts that prices will average $2230 in 2026, and $2,500 by 2027. This is down from previous estimates of $2540 and $2800. Goldman Sachs has announced that three 0.5 MTPA smelters are expected to be operational in Indonesia by mid-2026. This is earlier than originally anticipated. The company expects a stronger production will result in the biggest surplus since 2020, a surplus of 1 million tons in 2026. The bank stated that "Cost deflation" will also put downward pressure on the price of aluminium through 2026 as the alumina and the energy prices continue to be weak and limit the sustained rise in aluminium prices. The bank's 2026 forecast was maintained, but its 2027 projection was lowered to reflect a slower growth of solar installations in China following recent policy adjustments. (Reporting by Anushree Mukherjee in Bengaluru. (Editing by Tomasz Janowski and Mark Potter).
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The US construction sector's spending fell in April due to a decline in single-family housing.
The U.S. Construction spending fell unexpectedly in April. This was due to a decrease in expenditures on single-family projects, as well as higher borrowing costs. Census Bureau of the Commerce Department reported on Monday that construction expenditures dropped by 0.4% following a 0.8% decrease in March, which had been downwardly revised. The economists polled had predicted that construction spending would rebound by 0.3% following a previous 0.5% decline reported in March. In April, spending decreased by 0.5% on an annual basis. Spending on private construction fell by 0.7%. Residential construction investment fell by 0.9%. Outlays for new single-family homes declined by 1.1%. The economic uncertainty caused by President Donald Trump’s aggressive trade policies, such as the recent doubled of steel and aluminium duties from 25% to 50%, is also limiting home construction. The new housing stock is at levels not seen since 2007, and the supply of pre-owned homes is at its highest level in over four years. This leaves builders with little room to start building. In April, the expenditure on multi-family housing decreased by 0.1%. Investments in non-residential private structures such as offices and factories decreased by 0.5%. Spending on public construction projects increased by 0.4%. Spending by state and local governments increased 0.3% while federal spending jumped 2.7%. Lucia Mutikani, reporting; Andrea Ricci, editing
The death toll from the Indonesia quarry collapse is now 17.
The search and rescue agency Basarnas announced that Indonesian authorities would continue their search on Sunday for the eight people who are trapped in the rock collapse of a West Java quarry, where 17 have died, with six others injured.
In a late-night statement, the agency stated that the toll reported by victims' families is only provisional.
West Java Governor Dedi Mullyadi wrote on Instagram that the site of the Friday's collapse is dangerous, and "doesn't meet safety standards for employees".
In a press release, the Energy and Mineral Resources Ministry stated that it would investigate the cause and assess the potential for further landslides.
Muhammad Wafid said that Cirebon Regency was prone to soil movements, particularly when rainfall is above average. The area where the collapse occurred also has a steep slope.
Wafid stated that the steep slope and undercutting technique used in the open mine area may have also played a part in the collapse.
Wafid stated that "rescuers" should pay attention to weather conditions and steep slopes and avoid carrying out any activities in the area during or after heavy rain because the area is still prone to further landslides, which could hit and bury officers. (Reporting and editing by William Mallard in Jakarta, Bernadette Cristina in Jakarta)
(source: Reuters)