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Thailand's central bank reduces growth for 2026, but says there are no limits to the worst-case scenario if war continues
Thailand's growth will be slower this year due to the Iran conflict and there are "nearly no limits" in worst-case scenarios if the conflict continues. A senior central bank official said. The Assistant Governor Chayawadee Chaianant stated that the growth of the Southeast Asian nation was slowing. This is because the country's economy, which is highly exposed to global economic conditions due to its high dependence on imported energy imports, has a low rate of growth. The U.S./Israeli war against Iran has led to a decline in tourism and an increase in import costs. Chai-anant, on the sidelines at the IMF/World Bank spring meeting in Washington, said: "It will be the downward trend of a lot of things." She said that tourism from Gulf countries fell to almost zero in March as Iranian attacks closed regional airports. These numbers are still not fully recovered, and their wealthy visitors account for about 7% of the total tourism expenditure in Thailand. As fuel prices rise, the number of tourists driving from Malaysia to Thailand is also decreasing. The central bank has revised its baseline GDP growth forecasts to 1.3% for 2026, if the war ends by the second half this year. In December, the central bank had predicted a growth rate of 1.9%. However, in February the government raised its forecast to between 1.5% and 2.5%. In this scenario, inflation is expected to reach 3.5%. She said that Thailand's position as a country at the beginning of the crisis helped it to absorb the shock. However, the economy was under severe pressure. There are no limits when it comes to the "worst case scenarios". She said, "It's really bad." She said policymakers expected a current account positive of about $12 billion for the entire year. However, that figure would need to be revised downward. She didn't rule out that the account could go negative. Even then, the bank governor said, a rate increase would not be enough to combat supply-driven inflation. Chai-anant stated that the sharp outflows of equity and debt in Thailand between February and March could be managed and have already returned to positive territory in April. She said that the Fund’s autumn meetings in Bangkok, which will be held in October, would give global officials the chance to meet those who are “severely affected by the conflict,” but that she was confident the economy would find a way forward by that time. She said: "We can show that Asian countries have very strong fundamentals and are agile when it comes to adaptation." (Reporting and editing by Lisa Shumaker; Libby George)
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Duke Energy wants to increase prices in North Carolina for winter power costs
Duke Energy is seeking approval from North Carolina regulators for an increase in 'its prices' and to recover $800 million more from its customers due to a?higher cost of fuel and power during a severe winter cold snap. On Wednesday, the company said it was attempting to recover winter power and fuel costs of about $500 million for Duke Energy Carolinas and $309 million for Duke Energy Progress. If approved, this would increase monthly bills from June 1 by approximately $6.90 or $7.88. Duke Energy Carolinas supplies approximately 2.3 million customers throughout central and western North Carolina, while Duke Energy Progress serves about 1.6 millions in the eastern and central parts of the state. The company stated that the extreme cold of late January and early Februar drove the demand for power beyond the existing 'generation and storage capacity. It forced it to purchase additional power at high market rates from neighboring utilities. Duke Energy has proposed spreading recovery over a 19-month period instead of the usual?12 months to minimize the immediate impact on customers. The company said that electricity demand reached a new "winter high" of 37,308 Megawatt-hours on January 27. This was the highest ever recorded level across Duke Energy's Carolinas System. Varun Sahay, Bengaluru. Pooja Deai, editing.
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US warns Iranian oil buyers that sanctions could be imposed
The United States on Wednesday warned that it would sanction any buyers of Iranian Oil and stated its belief that China will stop such purchases if Washington enforces the maritime blockade against Iran. Scott Bessent, U.S. Treasury Secretary, told reporters at White House that "we have informed countries that we will apply secondary sanctions if they are buying Iranian oil or if Iranian money sits in their banks." As the Iran War entered its seventh week, the U.S. began a maritime blockade against Iran on Monday. China had previously purchased more than 80% Iran's oil. Bessent stated, "We are confident that this 'blockade' will cause a halt in Chinese purchases." He added that the U.S. Treasury had also written two Chinese banks, telling them "that if we could prove that Iranian money was flowing through their accounts, we would be willing to impose secondary sanctions." The Chinese embassy in the United States has not responded to a comment request on Bessent’s remarks. The Trump administration has said for years that it will apply "maximum" pressure on Iran regarding its nuclear program and support of militants in the Middle East. However, sanctioned crude oil continues to reach China. On Wednesday, the U.S. Treasury Department imposed?sanctions' on over two dozen individuals and companies, as well as vessels, to target Iran's oil transport infrastructure. Bessent stated that last month, Washington had issued a waiver of 30 days on sanctions against Iranian oil on the sea. This allowed 140 million barrels of Iranian oil to reach global markets to'relieve global pressure on energy supplies caused by war. Bessent confirmed Wednesday that the waiver issued on March 20, which was set to expire on April 19, will not be renewed. This news was reported on Tuesday. The U.S. has also not renewed waivers on Russian oil on the sea that expired on Saturday. The U.S. Treasury also reportedly sent letters to China and Hong Kong as well as the UAE and Oman warning them that if they continue with their illicit Iranian activity, punitive U.S. sanctions will be taken against them.
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The Fletcher Building in New Zealand flags the fuel-related impacts of the Iran war
Fletcher Building, New Zealand, said Thursday that fuel costs remain a major concern, especially diesel. The conflict in the Middle East has jolted the energy markets and caused fuel prices to rise across all divisions. Auckland-based construction material maker says it partially mitigates volatility in fuel costs - which is a major cost driver for materials - by bulk buying, hedging and passing-through pricing mechanisms. The price of oil has risen over $100 per barrel. This is due to the Middle East conflict which has disrupted shipping lanes, raised concerns about supply, and increased fuel, freight, and raw material prices. The company claims that the group uses 'nearly 36 millions litres of fuel per year, with diesel accounting for 94% of total consumption. The company said that its heavy building materials division accounted for over half of the total consumption and the construction division accounted for almost a third. Fletcher Building reported that "price increases in all divisions are modest (1-5%) but more significant (up to 36%) for plastics and include fuel surcharges reflecting the pressure on input costs." Fletcher Building, which has no direct operations within Iran, says it is exposed indirectly through supply chains and freight routes. It also said that macroeconomic factors have an impact on the construction demand in Australasia. Plastics is the area where the company has the greatest?immediate impact, with its unit Iplex in Australia and New Zealand being the most impacted. The company also said that urea used in Fletcher Insulation and its?Laminex business in Australia and New Zealand, as well as in Fletcher Insulation's?Laminex products in Australia and New Zealand are exposed. Sherin Sunny, Bengaluru (Reporting) Maju Samuel (Editing).
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World Bank launches "Water Forward" programme to combat global water stress
Water Forward, a new global initiative launched by the World Bank and top development lenders on Wednesday, is aimed at ensuring that a billion people have access to safe water within four years. The program aims to increase?investment into?water management, while encouraging governments not to view water as an inexpensive public utility but rather a strategic resource. The World Bank stated that it will concentrate on mobilizing private capital, philanthropic funding and public funding. Ajay Banaga, the head of the World Bank said that "water is fundamental to how economies operate" in a press release. He added that "delivering reliable water services on a large scale was the task now." The World Bank estimates that global demand for freshwater will outstrip the supply by as much as 40% by the end decade. Water-related shocks have already cost some countries a number of percentage points in annual economic growth. Climate change intensifies both droughts and flooding, putting pressure on the public finances and vulnerable populations, especially in rapidly-growing cities. In a report published last year, it was estimated that more than 2.1 billion people do not have access to safe drinking water and over 3.4 billion are without adequate sanitation. Water Forward will focus initially on 14 countries that are water-stressed - in Africa, the Middle East, and South Asia - and prioritize projects to reduce leakage, modernise irrigation systems, improve wastewater reuse, and expand data-driven plans. The New Development Bank, Asian Development Bank, European Investment Bank, and Inter-American Development Bank are also involved. The BRICS nations of Brazil,?Russia, India, China, and South Africa established the New Development Bank. World Bank: 'It estimates that 4 billion people suffer from water scarcity as a result of a combination of unclear government policies and weak regulations, coupled with financially unsustainable utilities. The Water Forward programme aims to reach more than a billion people with its commitment to provide water security by 2030. (Reporting and editing by Matthew Lewis in London)
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Trafigura signs $1 Billion Oil Prepayment Deal with Gabon
Commodities trader Trafigura announced on Wednesday that it had signed a $1 Billion?prepayment contract with the Republic of Gabon. Under this agreement, Trafigura will receive crude oil deliveries over a period of seven years. Trafigura said that under the agreement it will provide upfront funding to the African nation in exchange for future crude deliveries. It will also act as the "exclusive offtaker" of Gabon’s profit during the term of the deal. Profit oil is the government's portion of oil production, after companies recover their costs. Trafigura stated that the?oil used to support the prepayment would be sourced from multiple petroleum sharing contracts, as well as a variety of assets and operators. In a statement, Dave Gallagher said, "We are delighted to have signed this contract with the Republic of Gabon. This agreement continues our long-standing trading relationship, and contributes to the development agenda of the country." Trafigura also began syndicating part of its exposure to international financial institutions. The agreement aims to "optimise?country oil resources, strengthen foreign?exchange?reserves of the Central Bank,?and facilitate proactive management of the nation's treasury," stated Thierry 'Minko, Minister of 'Economy, Finance, Debt & State Holdings' for the Republic of Gabon. Anmol Choubey in Bengaluru and Anushree?Mukherjee, Editor Nick Zieminski
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A'significant' fire breaks at Viva Energy Refinery in Australia
According to local fire authorities, firefighters have responded to a "significant", "serious"?fire that has occurred at the Viva Energy Group's Geelong Refinery in southern Australia. It was not clear how much damage had been done. The fire was reported around 11 pm local time on the night of Wednesday. Fire?Rescue Vic said that it wasn't yet under control, but that all staff were present. It said that multiple calls reported?explosions or flames?. According to the website of the company, the refinery is capable of processing 'up to 120,000 barrels?of oil each day. The website said that it is one of only two remaining refineries in Australia, employing over 1,100 workers, and supplying more than 50 percent of Victoria and 10 percent for Australia's fuel. Viva Energy Group didn't immediately respond to a comment request. Since the U.S., Israel and Iran attacked Iran in the Strait of Hormuz, Australia has been faced with a fuel security concern. Anthony Albanese, the Australian Prime Minister, said that the government will halve excise taxes on diesel and fuel for three months. This is to help Australian households cope with the cost increase caused by the Iran War. Reporting by Hyunsu Yaim in Barcelona, Preetika Parshuraman and Nick Zieminski. Editing by Chizu Niyama and Nick Zieminski.
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Source: US investigates suspicious oil transactions made before Trump Iran pivot
A person with knowledge of the matter told me on Wednesday that the U.S. Commodity Futures Trading Commission was investigating a number of 'oil futures' trades made shortly before Donald Trump announced a reversal in policy regarding the war in Iran. Source: The CFTC investigation is centered on the trading of oil contracts on platforms owned by CME Group and Intercontinental Exchange. Investigators are examining two 'instances' of oil trades that took place on March 23rd and April 7th, according to this source. The exchanges will provide the data, including the Tag 50 identifications for the entities?behind trades. A spokesperson from the CFTC refused to comment on this matter. Neither ICE nor CME responded to our requests for comment. Experts and legislators are calling for an investigation into the possibility that government information was leaked ahead of time. The 'White House' has warned its staff not to improperly leverage their positions in order to make bets on futures markets in the context of the "ongoing war" in Iran. Investors bet $950 million on oil prices just hours before U.S. announced ceasefire with Iran last week. Last month, the enforcement director of the agency said that they are focused on policing market manipulation and misconduct. This is especially true in energy markets. He said at the time that he was aware of recent'speculations regarding insider trading' in CFTC-regulated market and was "watching".
KGHM, a Polish copper miner, is looking to locate its copper mines nearer to home in order to reduce logistic costs
The CEO of KGHM said that the company is 'looking to invest in mining in Europe and Morocco in order to secure ore supplies closer to its smelting base and reduce logistics costs.
KGHM operates the Robinson Mine in the U.S. and has 55% of Sierra Gorda, Chile, on top of their Polish assets. Last month, they signed a Memorandum of Understanding with Morocco's National Office of Hydrocarbons and Mines and Moroccan Mining Firm Managem Group?on the cooperation in raw materials.
In an interview with the Chilean branch of KGHM in 'Santiago,' CEO Remigiusz Pazkiewicz said: "We are seeking opportunities to have resources closer to our smelting plants in Poland."
"Morocco's a good country." We have an opportunity in Europe. He declined to name the?European firm KGHM that KGHM is looking at.
Paszkiewicz stated that KGHM had dispatched geologists in Morocco to gather an initial report. The results could be available within the next two weeks.
He explained that the Moroccan mine would be a source of supplies for the global market and KGHM as they want to remain active in the trading of concentrates. Just under half of KGHM's copper production of 710,000 metric tonnes in 2025 will come from its own concentrats, he explained.
KGHM, a state-backed company, plans to continue investing?in Polish mines, while also looking at other opportunities in Chile?and Argentina.
He added that "but we see the world still changing", raising the possibility of converting KGHM Legnica Copper Smelter into a recycling plant.
Paszkiewicz stated that "probably it's... written in the draft of our strategy that we will move in the direction where Legnica is recycling, and Glogow is?our main melting factory."
KGHM 'will unveil its new strategic direction at the end of a quarter.
Paszkiewicz added that the company was also interested in extending its "production chains" in the United States. He stressed, however, that this does not necessarily mean building copper smelters there. (Reporting and editing by Tom Daly.)
(source: Reuters)