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Oil prices rise on EU trade agreement and potential US-China Tariff truce extension
The price of oil rose on Tuesday as investors hoped for improved economic activity following the U.S. EU trade deal and a possible truce in U.S. China tariffs. Also, President Donald Trump's shortened deadline to Russia for ending the Ukraine conflict boosted the market. Brent crude futures rose 24 cents or 0.34% to $70.28 a bar by 0000 GMT. U.S. West Texas Intermediate Crude was up 22 cents or 0.33% at $66.93 a bar. Brent reached its highest level in over two years on Monday, surpassing the previous session by more than two percent. The United States-European Union trade agreement, which imposed a 15% tariff on the majority of EU goods, avoided a full-blown war in trade between the two allies, which would have affected nearly a third the global trade, and dimmed the outlook regarding fuel demand. The news that top economic officials of both the U.S.A. and China met on Monday in Stockholm for over five hours of discussions also helped to support oil prices. The discussions will resume on Tuesday. Trump also set a deadline of "10-12 days" on Monday for Russia to end the war in Ukraine, or face sanctions. Trump has threatened sanctions against both Russia and its buyers if progress is not made. Daniel Hynes, senior commodity strategist at ANZ, wrote in a report that Trump's remarks reignited concerns about the impact of Russian oil flow. Hynes continued, "This comes also on the backs of the latest EU sanctions package against Russia. This includes a lower cap on the price of Russia's crude oil and the importation of refined products that are made from Moscow's Oil in other countries." (Reporting by Anjana Anil in Bengaluru; Editing by Jamie Freed)
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Xinhua reports that 30 people have died in Beijing after heavy rain.
The official Xinhua News Agency reported that 30 people had died in Beijing by midnight on Monday, as heavy rains hit the Chinese capital. Xinhua reported that heavy rains continued to fall in Beijing and the surrounding provinces, with rainfall reaching up to 543.4 mm at its northern districts. The 28 deaths in Miyun, and the two in Yanqing were all in Beijing's northern mountainous districts. Xinhua reports that Beijing has also relocated 80.322 residents due to the heavy rains. On Monday night, Chinese President Xi Jinping called for "all-out" rescue and search efforts to minimize casualties. Xi, according to Xinhua, said that the recent floods and natural disasters had resulted "in significant casualties and losses of property" in places like Beijing and provinces such as Hebei, Jilin, and Shandong. (Reporting and editing by Tom Hogue; Xiuhao Chan, Ryan Woo)
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Three people are killed and two critically injured in a shooting outside a casino in Reno Nevada
Authorities said that a gunman with a pistol fired outside a Reno casino on Monday. He killed three people, critically injured two others, and was then shot by police. According to police, the shooting occurred shortly before 7:30 am local time in the parking area of the Grand Sierra Resort. This is a casino and hotel complex with a tall building in Nevada's 3rd most populous city. Police described the suspect as a male adult, but did not identify him. The victims appeared to have been shot at random. Chris Crawforth is the chief of police in Sparks. His department, which is cooperating with the Reno Police Department, is leading the investigation. Crawforth told reporters in an afternoon press briefing that the suspect had been seen walking around the parking lot. He drew his handgun and pointed it at a group people as he approached a valet. The gun jammed initially, but after resetting it, the suspect opened fire and shot five people. He then fled through the parking area and traded gunfire with a security guard hired by the casino. After shooting a sixth victim, the gunman shot another driver who was passing through the parking area. Police officers then arrived and engaged in a gunfight with the suspect. They wounded him and brought an end to the violence. Crawforth stated that two victims who were shot in the valet area and the motorist who was shot as he drove through the parking lot both died. Two other victims hospitalized with gunshot wounds from the valet area are listed in critical condition. The suspect was also listed in critical condition. Reno Police Chief Kathryn Nance confirmed that a Reno officer had suffered a minor wound caused by glass particles. Steve Gorman reported from Los Angeles. Additional reporting was provided by Bhargavacharya in Toronto and Rich McKay and Jonathan Allen in New York. Editing was done by Doina and Matthew Lewis.
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Trump team listens to pitches on Myanmar's rare Earths
Four people who were directly involved in the discussions confirmed that the Trump administration had heard competing proposals to change the longstanding U.S. foreign policy towards Myanmar. The goal was to divert its huge supplies of rare earth mineral reserves away from China, the strategic rival. Experts say that there are many logistical challenges and nothing has been decided. If the proposals are implemented, Washington will need to make a deal with ethnic rebels who control most of Myanmar's heavy rare earth deposits. One proposal calls for talks with Myanmar's ruling junta in order to reach a peace agreement with the Kachin Independence Army (KIA) rebels. Another proposes that the U.S. work directly with KIA, without engaging with the junta. Washington avoided direct talks after the military overthrew the democratically-elected government of Myanmar in 2021. Sources said that a U.S. lobbyist for business, a former advisor to Aung San Suu Kyi and a few outside experts had proposed the ideas to the administration officials in indirect discussions with the KIA. Conversations that have never been reported before Rare earths is a grouping of 17 metals which are used to produce magnets, which turn energy into motion. The so-called heavy rare Earths are used in the construction of fighter jets, as well as other high-performance weapons. The U.S. is dependent on imports of heavy rare Earths, as it produces very little. The Trump administration is focused on securing the supply of these minerals in order to compete with China. According to the International Energy Agency, China is responsible for almost 90% of global processing capability. The United States would make a radical change if they engaged the junta, especially given the sanctions Washington has placed on military leaders as well as the violence perpetrated against the Rohingya minority that Washington describes in its report of genocide and crimes committed against humanity. The Trump administration lifted sanctions on several junta ally last week. However, U.S. officials stated that this did not reflect a change in U.S. policies toward Myanmar. People familiar with the matter say that the ideas presented to the U.S. government include the following: easing President Donald Trump's threat of 40% tariffs against Myanmar; reversing sanctions against the junta, as well as its allies; working with India to process heavy rare earths exports from Myanmar and appointing an envoy for these tasks. A person in Vance’s office confirmed that some of these suggestions were discussed at a meeting held on July 17 in Vice President JD Vance’s offices. Adam Castillo was present, who is the former director of the American Chamber of Commerce of Myanmar and runs a security company in the country. Vance's advisers on Asian trade and affairs were present. Vance was not present, according to the source. Castillo said he suggested that U.S. officials play a role as peace broker in Myanmar. He also urged Washington, to take a leaf out of China's book by first brokering a bi-lateral self-governance agreement between the Myanmar military KIA. The ruling junta of Myanmar and the KIA have not responded to a comment request. Vance's Office declined to comment on Castillo’s visit to White House. However, a person familiar with the matter said that the Trump Administration has been reviewing its policy on Myanmar (also known as Burma) since Trump's inauguration in January and had considered direct discussions with junta regarding trade and tariffs. The White House refused to comment. REVIEWING MYANMAR POLITICS People familiar with the discussions described them as exploratory, in their early stages, and added that the talks could result in Trump not changing his strategy, given his reluctance to intervene in foreign conflicts or in Myanmar's complicated crisis. When asked about the meeting on July 17, a senior official in the administration said, "The officials met as a favor to the American business community to support President Trump’s efforts to reduce the U.S. trade deficit of $579 million with Burma." Castillo, who described Myanmar's rare-earth deposits as China's 'golden goose', said he told U.S. official that key ethnic armed group - especially the KIA – were tired of being exploited and wanted to collaborate with the United States. Heavy rare earths are produced in large quantities by mines in Myanmar's Kachin Region and exported to China. He said he repeatedly urged Washington officials to pursue a deal that included cooperation with U.S. Partners in the Quad Grouping - India - to process resources and eventually supply heavy rare earths to the United States. The United States, India, Australia and Japan are all part of the so-called Quad Grouping. The Indian Ministry of Mines has not responded to an email seeking comment. Unknown to the public, an Indian government official said that he did not know if Trump's administration had informed India of any such plan. However, he stressed that it would take several more years for such a move to become a reality, as infrastructure would need to be constructed to process rare earths. One pitch was in line with former president Joe Biden's Myanmar policy. Sean Turnell is an Australian economist who was a former advisor to Suu Kyi's government, which the junta overthrew in 2021. He said that his proposal for rare earths was meant to encourage the Trump Administration to continue to support Myanmar's democratic movements. Turnell met with officials of the State Department, White House National Security Council, and Congress during a trip to Washington in the early part of this year. He urged them to continue their support for the opposition. He said that KIA, for example, could provide rare earths to the U.S. In recent months there have been several discussions on rare earths between U.S. government officials and the Kachin Rebel Group through intermediaries, according to a source with knowledge of these talks. These discussions were not previously reported. OBSTACLES Since the coup, Myanmar is wracked by civil war. The junta, along with its allies, has been pushed from much of the borderlands of the country, including the rare-earths mining belt, which the KIA currently controls. According to a source in the rare earths sector, U.S. officials contacted the Kachin rare Earths mining industry around three months after the Kachin tookover of the Chipwe Pangwa mining belt. A person said that a new major supply chain for rare earths, which would involve moving minerals from remote, mountainous Kachin State to India and beyond, might not be feasible. Bertil Lintner is a Swedish author and expert in Kachin State. He said that the idea of China stealing rare earths out of Myanmar was "totally insane" due to the mountainous terrain. Lintner stated that there was only one way to get the rare earths out of these mines on the Chinese border to India. "And the Chinese will certainly stop it." The junta, for its part appears eager to engage Washington after years in isolation. Trump, as part of his trade offensive against the world, threatened to impose new tariffs on Myanmar exports bound for the United States this month. He did so personally in a letter signed by Min Aung Hlaing, chief of the junta. Min Aung Hlaing, in response, praised Trump's "strong leadership", while also asking for lower rates and a lifting of sanctions. He stated that he would be willing to send a negotiation team to Washington if necessary. Senior Trump administration officials claimed that the decision to lift certain sanctions had nothing to do with the general's email.
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In 2024, Vitol bought back shares for $10.6 billion from shareholders.
The company's filings show that the global commodity trading company Vitol Group will pay $10.6 billion in 2024 to its employees who hold shares of the company through an annual share purchase scheme. Vitol paid $10.6 billion for buybacks in 2023, up from $6.4 billion. This was the highest amount ever. In 2024, buybacks increased as earnings continued to rise despite a drop in profits from their previous highs. Vitol's net profit was between $8 and 8.5 billion dollars last year. This is down from $15 billion and $13 billion the previous years. Vitol, Trafigura, and Gunvor are global commodity traders that have made lower profits in the 2024 financial year. This is because markets stabilized after a turbulent period in 2022-2023 when trading houses had made record earnings due to Europe's Energy Crisis and Russia's invasion in Ukraine. Vitol's record earnings have been used to fund its share buybacks and invest in assets upstream and downstream around the world. Vitol purchased the Italian refinery company Saras in 2024. The company has also diversified its portfolio from its traditional oil-centric focus, expanding its activities into the natural gas, coal, and metals trading businesses. According to the earnings report, the total equity attributable by company owners in the financial year 2024 was $30.6 billion. This is down from $32.4 million in 2023. (Reporting and editing by David Gregorio; Robert Harvey is the reporter)
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Caribbean trade with Africa is booming as the traditional routes are eroding
The secretary-general of the Caribbean bloc, who spoke on Monday in light of the looming uncertainty surrounding its traditional trading partners, said that Caribbean nations were looking to "decisively expand" opportunities for trade with Africa. Why it's important In a time of increasing protectionism, stronger trade ties would be a major economic shift for a region that relies heavily upon trade with the U.S.A., Canada, and Europe. Washington imposed an initial 10% tariff in April on almost all of its trading partners. It has been levying its power to influence domestic Caribbean policies on issues such as Cuban medical services and citizen-by-investment programs. KEY QUOTE Carla Barnett, Secretary-General of Caribbean Community (CARICOM), said that "we must open the doors to greater trade and investment between our regions" at the opening ceremony of the AfriCaribbean Trade and Investment Forum held in Grenada. "CARICOM's trade with the Continent needs to grow beyond its current levels, which are less than 3%. This is especially true given the uncertainty surrounding trade with our traditional partners." By the Numbers According to the latest data of the Observatory of Economic Complexity, CARICOM's biggest trading partner is the United States. According to OEC figures, the U.S. purchased a quarter ($38.8 billion) of the $33.4 billion in goods shipped by the bloc throughout 2023 and sold 39% of the $43.4 billion of goods imported. CONTEXT Caribbean nations are particularly vulnerable to global shocks like inflation and pandemics due to their dependence on tourism, imported fuel and food, and their exposure climate-related disasters. Barnett noted that the region had already worked with Africa in unsuccessful campaigns to demand slavery reparations and compensation for climate change from wealthy nations. (Reporting and editing by David Gregorio; Sarah Morland)
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Angola fuel hike protests turn violent, local media report
Angola’s capital, Luanda, saw protests over the hike in diesel prices turn violent on Monday. Local media reported that looting and clashes between police and protesters led to several deaths and arrests. In a bid to reduce costly subsidies and strengthen public finances, the oil-producing nation in Southern Africa raised diesel prices by a third this month. The minibus taxi associations increased fares up to 50%, and began a 3-day strike on Monday. On its website, the Novo Jornal reported that three people were killed during the protests. One of them was a policeman. Novo Jornal reported that the police fired tear gas, smoke grenades and shots in the air, all to try and restore calm. In a press release, the police reported that shops had been looted in Luanda. The statement stated that police made arrests, but did not provide the number. Angola’s finance minister said in October that fuel subsides amounted to 4% of the country’s economic output in last year. The government will continue to remove them in stages. The protests were also deadly when the price of petrol was raised in 2023.
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President of Peru says that he is considering approving $6 billion in mining projects
Dina Boluarte, the president of Peru, said that her government is looking at approving 134 projects for mining exploration and exploitation worth an estimated $6 billion. Boluarte stated in an address before Congress that she expects the formal small-scale mine sector to generate over $5 billion in sales annually by the end this year, and that $4.7 Billion in formal projects are expected to have begun construction by 2026. Officials from Peru, third largest copper producer in the world, are in discussions with informal miners. They launched protests at the end of June, which blocked a major transport corridor used by MMG and Glencore. After over 50,000 miners informally removed from the formalization scheme by the government, the tensions escalated. The government now only wants to bring 31,000 of them into compliance with the regulations before the end this year. Boluarte stated that the government is working to establish a private mining funds which would provide small miners with better access to financing. (Reporting and writing by Marco Aquino, Sarah Morland and Natalia Siniawski).
Iraq's State Oil Marketer identifies illegal loading of tankers at key ports
According to an official note dated Sunday, Iraq's state oil marketing company SOMO has identified a number of tankers that are suspected of illegally loading petroleum products from the ports at Umm Qasr or Khor al-Zubair.
The tankers used advanced techniques, such as Automatic Identification System (AIS) spoofing, to hide their location or change their route. SOMO stated that the ships were not included in its official load schedules. This raised concerns about unauthorised shipments.
In a letter to Iraq's National Security Agency, SOMO stated that "These activities have been classified as high risk and may involve illegal practices like tampering tracking systems or performing unauthorized transfers."
In an annex of the letter, 11 tankers were listed as suspects: Flora Dolce (Mackerel), Chandrama (Padmanabh), Pontus (Ocean Guardian), Al Safa (Al Safa), Hulda(Hulda), Ultostratos (“Invictus”), Invictus (“Invictus”), Lanikai („Lanikai“) and Lanikai („Lanikai“).
The authenticity of the letter was confirmed by two officials from the Oil Ministry, and one official from the SOMO. The warning comes as illicit oil flows are being closely monitored in the region. The U.S. Treasury announced new sanctions against entities that are involved in the Iranian oil trade earlier this month. These include firms that have been accused of assisting Tehran to move sanctioned crude by using deceptive shipping methods such as ship-toship transfers and falsified documents.
SOMO called upon Iraqi authorities take the appropriate measures to protect Iraq's oil reserves.
SOMO did not respond to a request for comment. (Reporting and Editing by Rod Nickel. Ahmed Rasheed)
(source: Reuters)