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Venezuelan oil exports are on the increase as more cargoes go to China
According to shipping documents and data, Venezuela exported 844,000 barrels of crude oil and fuel per day in June. This is an 8% rise from the previous months, as more cargoes were sent to China to offset the loss of U.S. markets and European ones. Washington terminated in late May a grouping of licenses which had authorized partners, such as Chevron and Repsol of the oil company PDVSA to transport Venezuelan crude for U.S. or European refineries. Since then, the state-owned firm has increased its exports to Asia. It sells its crude oil and fuels through little-known middlemen who make deals with independent Chinese refiners. According to PDVSA internal documents, the cargoes included shipments of Boscan crude oil, which had previously been exported to the U.S. by Chevron. The data revealed that 27 tankers left Venezuelan waters during June. They carried an average of 844,000 barrels per day (bpd) of crude oil and refined products, and 233,000 tons of petrochemicals and byproducts. In May, oil exports averaged 779 000 bpd. In May, the country exported 329,000 metric tonnes of petrochemicals and byproducts. According to data and documents, exports to China were 90% of June's total. In May, it was 75%. PDVSA shipped 8,000 bpd of petroleum coke and methanol to Europe and India, as well as a few cargoes to Cuba. Three cargoes of heavy grade Boscan crude used in asphalt production were shipped to Asia, boosting June's exports. These exports are crucial for PDVSA in order to avoid a production cutback at the Boscan oilfield. It is one of the largest oilfields in Venezuela. PDVSA did not import diluents during June, despite having filled its tanks with imported refined product ahead of the cancellation of licenses.
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EU adds international CO2 credits as part of next climate goal
The European Commission proposed a climate target for the EU for 2040 on Wednesday. For the first time, countries will be able to use credits for carbon from developing nations in order to reach a small portion of their emission goal. The European Union executive has proposed a legally binding target of cutting net greenhouse gas emission by 90% by 2040 from 1990 levels. This is to keep the EU on track to achieve its core climate goal to reach zero net emissions by 2050. The Commission, however, after facing opposition from France, Germany and other governments, including Italy, Poland, the Czech Republic and France, proposed flexibility to the 90 percent emissions target for European industry. The EU has some of the most ambitious climate goals among major economies. EU emission targets are based on only domestic emissions reductions. Carbon credits purchased from other countries via a U.N. supported market can cover up to three percentage points of Germany's 2040 target, reducing the amount of effort needed by the domestic industry. Carbon credits will be phased-in from 2036. The EU will propose legislation in the next year that will establish the quality standards for the credits and who can buy them. Wopke Höstra, EU Climate Commissioner, said that the new climate targets would provide investment certainty to industries and governments. He also stated that purchasing foreign carbon credits can help EU diplomacy. "We will continue to pursue a clean transition." Hoestra stated in a press release that we know the reasons for our clean transition - economic, geopolitical and security. A draft of the proposal was previously published. The countries would also have more flexibility in choosing the sectors of their economy that contribute most to the 2040 target. Climate change has made Europe one of the fastest-warming continents in the world. A severe heatwave last week caused wildfires, disruption and chaos across the continent. But Europe's aggressive policies to combat the temperature rise has stoked tensions among the 27 member bloc. The European Commission's climate agenda is marketed as a means to increase Europe's security and competitiveness. However, certain governments and legislators say that industries already struggling with high energy prices and U.S. tariffs cannot afford stricter emission rules. Climate science advisors from the EU warned against counting foreign carbon credits towards the 2040 goal, saying that spending money on them would divert investment away from local industries. Carbon credits can be generated through projects that reduce CO2 emission abroad, such as forest restoration projects in Brazil. These carbon credits then raise money for these projects. Investigations have revealed that some credits did not deliver the claimed environmental benefits. EU legislators and countries must agree on the 2040 target. This lawmaking process may take many years, but by mid-September the EU must submit to the U.N. its new 2035 climate goal - which should be derived directly from the current 2040 target - as the Commission had stated. (Reporting and editing by Barbara Lewis; Kate Abnett)
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Malaysia reduces green electricity tariff premium rates up to 80% starting July 1
Malaysia has reduced its green energy tariff premium rates up to 80% starting July 1, in an attempt to diversify the green electricity supply options available to companies so they can meet their ESG obligations. In a Wednesday statement, the Energy Transition and Water Transformation Ministry announced that premium rates previously set according to user categories would now be combined in one single pricing tier. Users will pay 5 cents a kilowatt-hour for contracts lasting one year, 4 cents a kWh for agreements lasting two years, and 3 cents a kWh for commitments lasting three years. Green electricity tariff (GET), a programme to offer renewable energy to Tenaga Nasional Berhad customers who wish to reduce their carbon footprint, was launched in 2021. The government set a quota for the 2025 GET Programme of at least 6,600 gigawatt-hours, with premium rates as low as 10 cents/kWh for domestic users and non-domestic users of low voltage and medium voltage and 20 cents/kWh for non-domestic users of high voltage and medium voltage. The Ministry stated that as these new provisions include structural changes and costs implications, users will be able to cancel existing subscriptions until August 31, without penalty. In response to the demand of data center operators, industrial and commercial users as well as the Ministry itself, the GET GreenPath Programme was launched to provide "tenant accounts" with formal recognition for their green electricity consumption through Renewable Energy Certificates. TNB will implement this enhanced version of its existing GET program and open subscriptions on August 1.
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Citicore CEO expects nine-fold growth in solar power by 2026.
Oliver Tan, the Chief Executive Officer of Citicore Renewable Energy Corp in the Philippines, said in an interview with The Philippine Star on Wednesday that he expects to see a nearly ninefold increase in solar installed capacity by 2026. This will amount to approximately 2,56 gigawatts. Tan, one of the Philippines’ largest solar power producers, behind ACEN Corp., said that Citicore would add 1 GW by the end this year and another 1.17 GW by 2026. The company has 0.29 GW installed solar capacity. This is the result of a 20% stake purchased by the renewable energy division of Indonesian state-owned oil company PT Pertamina this year. Citicore's plans to expand solar power are in line the Philippines' efforts to decarbonise their grid after years of slow progress, which made the Southeast Asian nation the most coal-dependent grid in the region in 2023. Government data revealed that the Philippines' renewable energy capacity increased to 9.2GW by 2024. This is a record increase of 0.8GW or almost 10%. The installations made in the past year exceeded the green capacity installed in the previous three years. Tan said that six of Citicore’s solar projects will come on line this year, south of Manila. Three will be located in the north of the country, and one will supply the high demand Visayas Region. By 2024, the Philippines will have nearly doubled its installed solar capacity. Data from the energy think tank Ember revealed that solar currently generates about 3% (or 115,000,000) of the power in the country. The country wants this to rise to 5.6% by the year 2030. Tan stated that the 2,17 GW additions between now and 2026 will put the company in a position to reach its 2030 solar capacity goal of 5 GW. The company also aims to add 0.36 GW in wind capacity by 2027. Tan stated that the aggressive state push will likely crowd out private energy supply deals with companies in the renewable sector during this decade. He said that the government would increase the number of tenders for grid projects, which will likely lead to a decline in the corporate power purchase agreement share this year. Mark Potter edited the report by Sudarshan Varadahan.
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Gold prices fall as traders wait for US jobs data to see if they can cut rates
The gold price fell on Wednesday, as investors resisted placing large bets before the U.S. employment data which is expected to provide more information on Federal Reserve policy. At 0901 GMT, spot gold was down by 0.2% to $3333.45 an ounce. U.S. Gold Futures were down 0.2% at $3,344.10. Analyst Giovanni Staunovo at UBS said that market participants had not changed their expectations for more rate reductions this year in the U.S. over the past few weeks. Gold will continue to rise in price as long as debt levels, the Fed's continued pressure to lower rates and the weakening of U.S. data are considered. The data released on Tuesday revealed that U.S. employment opportunities unexpectedly increased in the month of May. However, a drop in hiring has added to the signs that labour markets have slowed down. Fed Chair Jerome Powell said that the U.S. Central Bank plans to "wait" and "learn more" about the impact tariffs have on inflation before it lowers rates. He again ignored U.S. president Donald Trump's demand for an immediate and steep rate cut. The focus now shifts towards the U.S. ADP Employment data, due later that day. This will be followed by June Non-Farm Payroll figures on Thursday to gain further insight into the labour market. Analysts at BMI wrote in a report that they believe it will either take a war in the Middle East, which is a low probability, or a significant interest rate reduction by the Fed to push gold past the historical high reached in April. The U.S. Senate Republicans passed Trump's tax-and-spending bill by a narrow margin on Tuesday. It is a package that cuts taxes, reduces social safety net programs, and boosts military spending while adding $3.3 trillion in debt. Silver spot rose 0.2%, to $36.12 an ounce. Platinum increased 0.5%, to $1356.96. Palladium also increased 0.5%, to $1105.68. (Reporting by Brijesh Patel in Bengaluru. Mark Potter edited the article.
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Iron ore futures are rising on a dip in supply and firming demand
All benchmarks of iron ore futures rose on Wednesday, as top exporters Australia & Brazil saw their shipments drop. Meanwhile, an increase in the hot metal production boosted investor sentiment. The daytime trading price of the most traded September iron ore contract at China's Dalian Commodity Exchange was 722.5 yuan (US$100.81). As of 0806 GMT, the benchmark August iron ore traded on Singapore Exchange was up by 1.82% to $94.9 per ton. Everbright Futures, a broker, said that iron ore exports from Australia and Brazil, two of the world's top iron ore producers, have decreased, while global iron ore shipment has also declined. Everbright reported that hot metal production, which is a measure of iron ore consumption, has continued to rise month-on-month. China's factory output has increased since November 2024, according to official PMI and Caixin PMI. Still, the resale prices of homes in China dropped at a faster rate in June. Meanwhile, new home price growth slowed down, underscoring the persistent weakness of China's real estate market. Analysts at ANZ also noted that a proposed by the China Iron & Steel Association restricting exports of some steel products may keep more supplies within the country and potentially pressure prices. Coking coal and coke, which are used in the steelmaking process, have both gained in value, rising by 3.18% and 3.15 percent, respectively. The benchmark steel prices on the Shanghai Futures Exchange have risen. Rebar climbed 2.61%; hot-rolled coil grew 2.24%; wire rod climbed 1.03% and stainless steel jumped 1.08%.
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Volvo Cars sales drop 12% in June; fully electric cars fall 26%
Volvo Cars, based in Sweden, reported Wednesday that sales volume had fallen for the fourth consecutive month due to trade tariffs as well as a weaker demand for electric vehicles. Volvo Cars, owned by China's Geely in majority, announced in a press release that it had sold 62 858 cars in the month of June, down 12% from a year ago. In April, the group, in response to tariffs, retracted its earnings forecasts for the next two-year period. The sales of electric vehicles fell by 26%, accounting for 22% in total sales. The sales of all electrified vehicles, including plug-in hybrids and electric cars, fell by 19%, accounting for 44%. Volvo Cars In May, it announced that it would be cutting 3,000 jobs - mostly in the white collar sector - as it battles with rising costs, a decline in demand for electric vehicles and uncertainty in global trade. Sales volumes were down by 14% in Europe, while they were down by 7% in the U.S. Early trade saw shares of the company rise 1%, bringing their year-to date fall to 27%. Volvo Cars didn't comment on sales figures. (Reporting and editing by Anna Ringstrom, Louise Heavens and Jagoda darlak)
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India's palm oil imports in June jump by 61%, reaching an 11-month high
Five dealers report that India's imports of palm oil reached an 11-month peak in June. This was due to lower domestic stocks and a discount on rivals such as soyoil or sunflower oil, which encouraged refiners and retailers to increase their purchases. India's increased palm oil imports, as the world's largest buyer of vegetable oil, will help to reduce stocks in top producers Indonesia, and Malaysia, and support benchmark Malaysian Palm Oil futures. According to estimates by dealers, palm oil imports increased 61% in June compared to the previous month, reaching 953,000 metric tonnes, which is the highest level since July 2024. Since last month, palm oil has gained lost market share. Sandeep Bajoria is the CEO of Sunvin Group and a vegetable oil broker. He said that palm oil was now $100 cheaper per ton than other oils. According to the Solvent Extractors' Association of India (SEAI), which will publish its June import figures by mid-July, India imported an average of 475,699 tonnes of palm oil per month in the first seven months of this current marketing year, ending October 2025. India imported more than 750,000 tonnes of palm oil per month in the last marketing period. Dealers estimated that soyoil imports fell by 9% in June, to 363,000 tonnes, while imports of sunflower oil rose 18%, to 216,000 tonnes. Dealers estimate that the increase in palm oil and sunflower oils imports to India increased the country's total edible imports by 30% from June to 1,53 million tonnes, the highest level since November. According to Rajesh Patel of GGN Research (an edible oil trader), palm oil imports will remain strong in the months ahead due to its attractive prices and a rise in production in major producing countries. India imports mainly palm oil from Indonesia and Malaysia. It also imports sunflower oil and soyoil from Argentina, Brazil and Ukraine. GGN Research estimates that Nepal's edible oils imports fell to 75,000 tonnes in June from 155,000 tons a month earlier. (Reporting by Rajendra Jadhav. Mark Potter edited the story.
Post-COVID, China is back in Africa and doubling down on minerals
China's. flagship financial cooperation program is recuperating after a. lull during the international pandemic, with Africa a primary focus,. according to a analysis of loaning, financial investment and trade. information.
Chinese leaders have been citing the billions of dollars. devoted to brand-new building and construction jobs and record two-way trade. as proof of their commitment to assist with the continent's. modernisation and foster win-win cooperation.
But the information exposes a more intricate relationship, one that. is still mostly extractive and has actually up until now failed to live up to. a few of Beijing's rhetoric about the Belt and Roadway Initiative,. President Xi Jinping's method to develop a facilities. network connecting China to the world.
While new Chinese investment in Africa increased 114% last. year, according to the Griffith Asia Institute at Australia's. Griffith University, it was greatly focused on minerals. necessary to the international energy transition and China's plans to. revive its own flagging economy.
Those minerals and oil likewise controlled trade. As efforts. falter to improve other imports from Africa, including. agricultural items and made products, the continent's. trade deficit with China has ballooned.
Chinese sovereign loaning, once the main source of funding. for Africa's infrastructure, is at its least expensive level in 2. years. And public-private collaborations (PPPs), which China has. touted as its new favored financial investment lorry internationally, have. yet to gain traction in Africa.
The result is a more one-sided relationship than China. states it wants, one that is dominated by imports of Africa's raw. products and that some analysts argue contains echoes of. colonial-era Europe's economic relations with the continent.
This is something late-19th century Britain would. identify, stated Eric Olander, co-founder of the China-Global. South Project site and podcast.
China rejects such assertions.
Africa has the right, capability and knowledge to establish its. external relations and pick its partners, China's foreign. ministry wrote in action to ' concerns.
China's useful assistance for Africa's course of. modernisation in accordance with its own characteristics has. been welcomed by an increasing number of African countries.
A PIVOT WITH CAPACITY?
China's engagement in Africa, a focus of the Belt and Roadway. Effort (BRI), proliferated in the 2 years before the. COVID-19 pandemic. Chinese business constructed ports, hydropower. plants and railways throughout the continent, financed generally. through sovereign loans. Annual financing dedications peaked at. $ 28.4 billion in 2016, according to the Global China Effort. at Boston University.
However numerous tasks proved unprofitable. As some federal governments. had a hard time to pay back loans, China cut lending. COVID-19 then. pressed it to turn inward, and Chinese building tasks in. Africa fell.
A rebound in sovereign lending is not expected.
Policymakers in Beijing have actually instead been pressing Chinese. business to take equity stakes and run infrastructure they. construct for foreign governments. The goal, China experts say, is. to assist companies win higher-value contracts and, by giving them. skin in the game, guarantee the tasks are financially feasible.
Providing to Unique Function Vehicles (SPVs), possibly the most. typical methods of PPP facilities financial investment, has actually been growing. as a percentage of China's overseas loans, according to figures. shared solely with by AidData, a research study centre at. U.S. university William & & Mary.
The $668-million Nairobi Expressway, a public-private. collaboration developed and run by the state-owned China Roadway and. Bridge Corporation (CRBC), could be evidence of concept for the. model in Africa. Since it opened in August 2022, the toll road. has actually been enabling commuters to speed above the Kenyan capital's. notorious traffic snarls, beating profits and use targets.
Day-to-day average use in March was currently 57,000 vehicles,. surpassing a 2049 target of around 55,000 set by CRBC in a 2019. presentation on the job's financial viability seen by. .
However couple of business are following CRBC's example in Africa. While worldwide some 45% of Chinese non-emergency lending was to. SPVs from 2018 to 2021, the most current year for which AidData. figures are offered, the figure was only 27% for Africa.
Analysts point to a variety of likely reasons, consisting of a. lack of legal structures for PPPs in many African countries and. the view among some Chinese companies - many of them relative. newbies to PPPs - that African markets are dangerous.
China's foreign ministry did not straight attend to a request. for discuss the lower SPV figures for Africa. But it said the. federal government motivates Chinese business to actively establish new. modes of cooperation such as PPPs to bring more personal. financial investment to Africa.
GROWING ENGAGEMENT
The Griffith Asia Institute put China's overall engagement in. Africa - a mix of construction contracts and financial investment. commitments - at $21.7 billion in 2015, making it the biggest. regional recipient.
Information from the American Enterprise Institute, a. Washington-based think tank, showed financial investments hitting nearly. $ 11 billion in 2023, the highest level considering that it started tracking. Chinese financial activity in Africa in 2005.
Some $7.8 billion of that went to mining, like Botswana's. Khoemacau copper mine, which China's MMG Ltd purchased for $1.9. billion, and cobalt and lithium mines in countries including. Namibia, Zambia and Zimbabwe.
The hunt for important minerals is driving facilities. building and construction too. In January, for example, Chinese business. pledged up to $7 billion in facilities financial investment under a. modification of their copper and cobalt joint venture arrangement with. Democratic Republic of Congo.
Western and Gulf powers are also racing to lead the world's. energy shift, with the United States and European. federal governments backing the Lobito Passage, a rail link to bring. metals from Zambia and Congo to Africa's Atlantic coast.
African leaders have actually struggled, nevertheless, to raise financing. for some other priority projects.
In spite of the success of the Nairobi Expressway, for instance,. deal with several Kenyan roadways stalled when the federal government ran out. of cash to pay the Chinese construction companies.
During a visit to Beijing last October, President William. Ruto requested for a $1 billion loan to finish the jobs.
A Chinese foreign ministry spokesman, Wang Wenbin, stated. conversations about the demand were ongoing. Kenya's finance. ministry did not react to an ask for comment.
The last phase of a train line intended to traverse Kenya. from its main port to the border with Uganda has been in similar. limbo since Chinese financing dried up in 2019. Uganda cancelled. the contract for its portion of the line in 2022, after Chinese. backers pulled out.
When inquired about the decline in loaning for African. facilities, Chinese authorities indicate a pivot to trade and. investment, arguing that BRI-generated trade increases Africa's. wealth and development.
Two-way trade reached a record $282 billion in 2015,. according to Chinese customs information. But at the very same time, the. value of Africa's exports to China fell 7%, mainly due to a. decrease in oil rates, and its trade deficit expanded 46%.
Chinese officials have actually sought to lighten the issues of. some African leaders.
At a summit in Johannesburg last August, Xi stated Beijing. would introduce efforts to support the continent's. manufacturing and agricultural modernisation - sectors African. policymakers consider key to closing trade spaces, diversifying. their economies and developing jobs.
China has likewise vowed to increase farming imports from. Africa.
Such efforts, for now, are coming up short.
With among Africa's largest trade deficits to China, Kenya. has actually been pushing to increase access to the world's. second-largest consumer market, just recently acquiring it for avocados. and seafood. But cumbersome health and health policies suggest. Chinese customers remain out of reach for lots of producers.
The Chinese market is a new one, stated Ernest Muthomi, CEO. of the Avocado Society of Kenya. It was a challenge due to the fact that you. need to set up the devices for fumigation.
Of 20 billion shillings ($ 150.94 million) worth of avocados. exported in 2015, simply 10% went to China.
In general, Kenyan exports to China tipped over 15% to $228. million, Chinese customizeds data showed, as a decrease in titanium. production led to a drop in shipments of the metal - a key. export to China.
But Chinese produced items kept coming.
That's not sustainable, stated Francis Mangeni, an advisor at. the Secretariat of the African Continental Free Trade Area.
Unless African countries can include value to their exports. through increased processing and production, he stated, we are. simply exporting raw minerals to fuel their economy.
(source: Reuters)