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Trump names envoy to Greenland and stirs up backlash
U.S. president Donald?Trump appointed Louisiana Governor Jeff Landry as his special ambassador to Greenland on Sunday, drawing renewed criticism from Denmark and Greenland about Washington's interests in the mineral rich Arctic island. Trump has argued that Greenland should become a part of the United States. He cites its strategic importance as well as its mineral resources. Landry, the governor who assumed office in January 2024 publicly supports this idea. You cannot annex a country. In a joint press release, Danish Prime Minister Mette Fredericksen and Greenland Prime Minister Jens Frederik Nielsen stated that they would not annex another country. "Greenland is owned by the Greenlanders, and the U.S. will not take it over." Trump said in a post at Truth?Social: "Jeff knows how important Greenland to our National Security is, and will work hard to advance our Country's interests for the safety, security, and survival?of allies and the world." The White House didn't immediately respond to comments. Landry thanked Trump in a post he made on X: "It is an honor... to serve... as a volunteer in this position in order to make Greenland a member of the U.S." This does not affect my position as the Governor of Louisiana! The Trump administration increased pressure on Copenhagen on Monday when it suspended the leases of five large offshore projects that were being built off the East Coast in the United States, including two developed by Denmark's state-controlled Orsted. GREENLANDS STRATEGIC VALUE Greenland is a former Danish Colony with 57,000 people. A 2009 agreement gives it the right to declare its independence, but the country remains heavily dependent on Danish subsidies and fishing. The strategic location of the country between Europe and North America is a major site for U.S. missile defence systems, while its rich mineral resources have increased U.S. interests in reducing their reliance on Chinese imports. Greenland's Nielsen posted on Facebook that "we have woken again with a new statement from the U.S. President." This may sound important, but for us it doesn't change anything. "We decide our future." DIPLOMATIC TENSIONS ESCALATE Lars Lokke Rasmussen, the Danish Foreign Minister, said on Monday that he will summon U.S. The U.S. Ambassador Kenneth Howery had pledged "mutual" respect during his recent visit to Greenland. "At the drop of a hat, there's now a U.S. special presidential representative who is, according to him,?tasked with assuming control over Greenland. Rasmussen said on TV2 that this was, "of course, totally unacceptable". Denmark has been trying to mend strained relations with Greenland in the last year. It also tries to ease tensions with the Trump Administration by investing in Arctic defense to respond to U.S. critics of inadequate security. In an Instagram post, Prime Minister Frederiksen stated: "It's a difficult situation our lifetime allies put us in." Mikkel Vedby, a professor of political science at the University of Copenhagen, said: "This appointment proves that all the money Denmark invested in Greenland and in the defense of the Arctic as well as all the nice things we've said to Americans have had no impact at all." Reporting by Siddharth Cavale in New York, Arathy Sommesekhar, in Houston, and Jacob GronholtPedersen, in Copenhagen. Additional reporting by Anusha Shah in Bengaluru; SOren Sirich Jenppesen, Stine Jacobsen, in Copenhagen. Editing by Saad, Gareth, and Ros Russell.
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Pension dispute may prolong the strike at Brazil's Petrobras
Union leaders and executives have said that a dispute over payment deductions involving about 50,000 retired Petrobras workers may prolong the strike at Brazil's state-owned oil company. The central issue in the strike that has now lasted a week is resolving the deduction of around 20% from 'pensioners' pay slips by the largest pension funds of the company. A company source who spoke on condition of anonymity said that the solution was neither simple nor cheap. The impact, he added, would be in the billions. Union leaders say that deductions are due to a shortfall on the accounts of the funds. Negotiations about how to cover this have been going on for over two years. The amount Petrobras will need to pay to cover the shortfall was not disclosed by either side. The strike affected oil platforms in the Santos-Campos basins as well as refineries and biodiesel plants. Petrobras said that the strike "has not affected production" despite the two accidents that occurred on platforms, which union leaders blamed on the use of contingency teams by the company. Letter of Commitment Even if Petrobras and the unions reach an agreement, it would still be necessary to have the matter approved by oversight agencies, which could take several months. To end the strike, union leaders only want a letter from Petrobras stating that it will reduce payment deductions substantially. Union leaders decided to strike to pressure the firm ahead of Brazil's presidential election in 2026. They feared that talks could stall and that if leftist president Luiz Inacio Lula Da Silva, who is sympathetic to workers' demands, loses his re-election campaign, it would undo years' worth of work. Paulo Cesar Martin is a director of the FUP union. Petros, the company that manages Petrobras’ pension funds, has said this issue is being given priority. According to union leaders, in addition to pension issues, higher wages are on the table for negotiation.
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German Engineers are Building Future-Proof Forests
Forest engineers use biodiversity for future-proofing forests Plantations of Spruce are vulnerable to pests and climate change Long-term forest restoration is hindered by financial challenges Joanna Gill From the 35-metre tower, all that is visible now is a flattened plateau. The trees are gone after being wiped out by a bark beetle infestation in 2018. Experts call this "calamity" that happened so quickly, 60-year-old oak trees fell in a matter of weeks in this forest in North Rhine-Westphalia along Germany's border to the Netherlands and Belgium. Petra Trompeter of Arnsberg's city forestry department said, "It is shocking for me, and for every forester." She was squinting in the low winter sunlight from the base the tower. Over many years, storms and droughts created conditions that allowed bark beetles the opportunity to consume rows upon rows of spruce. According to the World Meteorological Organization, 2024 will be the first year that global warming exceeds 1.5 degrees Celsius (2.7 Fahrenheit). Climate change disasters will increase in intensity and frequency in a warmer world. They could also threaten the ability of forests to absorb carbon and thousands of jobs in the tourism and wood sectors. The independent Expert Council on Climate Issues in Germany warned that the country may miss its climate targets after 2030 as forests and wetlands, which were previously carbon sinks, are now becoming sources of emissions as a result of forest degradation. Forest engineers in North Rhine-Westphalia are now working to create resilient forests by combining tree species. This is part of a European Union-funded program. Trompeter said that even before the disaster we had been working to make the forest more diverse and structurally rich. The calamity forced us to act more quickly. Future Forests After World War Two, Germany planted spruce trees to harvest timber to pay reparations owed by the Allies. The species is favored by timber producers for its rapid uniform growth. These single-species plantations make?North Rhine-Westphalia’s forests vulnerable to heat, pests and drought. When everything is going well, the returns are positive, but when extreme weather causes mass tree losses, these are seen as "inevitable". Monoculture plantations may also be partly responsible for Germany's forests being unable to absorb carbon. He said that "natural forests can hold a lot more carbon." Diversification has been identified as a possible solution and is currently being tested across Europe. The 20 million-euro SUPERB Project, led by the European Forest Institute, and funded through the EU Green Deal, has seen forestry experts from Sweden to Spain set up twelve demonstration sites, including Arnsberg, in order to restore habitats, and transform monocultures. The Arnsberg area is 34 hectares and includes both public and private land. Forestry experts carefully selected four conifers and broad-leaf trees they believed could adapt to altitude and climate, and withstand hotter and dryer conditions in the future. Marcus Lindner is the head of resilience at the European Forest Institute. While the majority of forestry experts agree that variety is important, there are differing opinions on how to achieve it. Others prefer curated plantings of local species while others want to experiment with nonnative trees. Trompeter explained that this is not possible because nature protection laws in North Rhine-Westphalia only allow for local species. "And there we reached our limit." Banning on Biodiversity According to the German Agriculture Ministry, trees?play a critical role in the economic system, providing 76 million cubic meters of timber each year, 750,000 employment opportunities in forestry and wood, as well as boosting the rural economy through eco-tourism. Rouven Soyka is the press officer of the Sauerland Tourism Board. The Sauerland region in?North Rhine-Westphalia has a hilly terrain that's a popular hiking destination. However, the massive dieback caused the area to be unrecognisable to some visitors. Nature tourism is affected by all means. It's very important that nature is preserved in our classic outdoor region. Many forest owners cannot afford to reforest without state subsidies that do not cover the entire cost. Peter Jungermann says that he must think twice about investing in high-maintenance broad leaf varieties, rather than market-friendly conifers. This is especially true given the financial pressures on forest owners. It can be a "existential threat" to the nursery if he makes the wrong decision about which tree he should plant. The shifting political winds can also complicate planning for the future. Due to the backlash of businesses and farmers, key laws that were meant to be part the EU's Green Deal have been watered-down in the last year. It is still unclear how much money the EU budget for 2028-2034, which amounts to 2 trillion euros (2.35 trillion dollars), will allocate to forest restoration. Negotiations are expected to take place over the next two-year period. The German budget for 2026 prioritizes defence and infrastructure as the government tries to revive a sluggish economic. Trompeter said that forests are essential to human life and the health of the planet. "Where else can we spend it than on preserving nature and making it climate resilient?"
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Bonds and world stocks are tumbling, but the yen is not helping.
Wall Street opened higher, while the yen fell to near-all-time lows versus the euro. Higher interest rates put pressure on Japanese government bonds. S&P 500 futures rose 0.4%. Nasdaq futures gained 0.1%. MSCI's broadest world share index added 0.2%. Due to the fact that the?U.S. The?U.S. Investors are primarily focused on closing the year before January's inflation and labour market releases," he said. Even though it was a holiday-shortened weekend for most of the world, momentum funds continued to flow to equities and precious metals ahead of delayed data which is expected to show that the U.S. economic growth has been strong in the third quarter. Median estimates predict an annualised increase of 3.2%. This is due to a steep drop in imports following a surge earlier in the year in anticipation of tariffs. Analysts at BofA cautioned that their measure of investor confidence had moved to extreme bullish territory, at 8.5. This is often the prelude to an eventual reversal. The Fund Manager Survey reveals the most positive sentiment in three-and-a half years. This is due to expectations of tariff and tax cuts, as well as rate reductions. European shares dithered 0.2% lower Monday in thin markets as investors began a week shortened by holidays on a tepid tone following the previous session’s record high close. The Nikkei 225 index of Japan closed up 1.8%. This was a continuation of Friday's gains, as the sharp decline in yen is expected to boost Japanese export earnings. Chinese blue-chip stocks closed almost 1% higher. The Bank of Japan increased rates to a 30 year high of 0.75 percent and warned that more would be raised, which would have a devastating effect on government debt. The yields on 10-year government bonds soared another 6 basis points, to 2.08%. This is the highest level since 1999. The minutes of the BOJ's meeting are due Wednesday. On Christmas Day, the head is scheduled to speak at a Japanese business group. On Interception Watch The yen reached a new record low against the euro of 184.92. The dollar gained 0.3% to 157.37. Investors were wary about testing the November high of 157.90, in case Tokyo intervened. Japanese officials have expressed their concern about the one-way movement and warned against excessive decline. Analysts at TD Securities reported that equity markets saw their largest weekly inflows ever at $98 billion, with U.S. equity fund leading the way. Chinese equity funds recorded their third-largest weekly inflow since 2025. Emerging markets also saw their biggest inflow since April. The fourth consecutive week saw a slowdown in the flow of?tobonds. The yields on U.S. 10 year bonds increased by 2 basis points, to about 4.169%. On Monday, gold jumped above the $4,400 per ounce mark for the first-time, fueled by a combination of growing expectations about further U.S. interest rate cuts, and strong demand from safe-haven investors. Silver has also reached a new record high of $69.44. This brings the gains for this year up to nearly 140%. Oil prices rose after the U.S. intercepted an oil tanker from Venezuela over the weekend and were pursuing another in what would have been the third such operation within two weeks. Brent crude oil jumped $1.13 cents, to $61.60 per barrel. U.S. crude oil rose $0.06 cents, to $57.56 a barrel. (Reporting and editing by Stephen Coates, Toby Chopra and Wayne Cole)
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After a zero-fee processing deal, copper reaches new highs
The copper price reached a new record high on Monday. This was largely due to speculation and news of a Chinese smelter's zero-fees processing agreement. Benchmark - three-month copper at the London Metal Exchange rose 0.6% to $11,955 per metric tonne by 1100 GMT after touching a record high of $11,996. LME copper prices have risen 36% in the past year. This is largely due to fears of mine problems causing deficits for next year. Sources said that the supply concerns were highlighted 'on Friday, when Antofagasta Chilean miner and a Chinese Smelter agreed to a 'zero processing fee in 2026 for copper concentrate. This was the lowest amount ever agreed upon during annual negotiations. When supply is restricted, processing fees will decline. Commodity Market Analytics' managing director, Dan Smith, said that the markets are generally buoyant. This shows there is a lot of liquid in the system. Gold and silver reached record levels, as oil prices soared. Smith said that although copper prices were still high, the demand for it was waning. "It seems like the demand is slowing down." "EV sales have slowed down and the consumer economy in China is showing signs of weakness." The most active copper contract at the Shanghai Futures Exchange ended daytime trading with a 1.7% increase to?94320 yuan (about $13,397.92 per ton). Nickel, the top performer at the LME, rose 1.6% to $15.040 per ton following reports last week that the country would reduce its mine production in 2026. SHFE nickel climbed for the fourth session in a row, reaching a record high of more than 121 360 yuan, which is the highest level seen in over a month. ($1 = 7.0399 Chinese yuan renminbi) (Reporting by Eric Onstad; Additional reporting by Lewis Jackson and Dylan Duan in China; Editing by Emelia Sithole-Matarise) $1 = 7.0399 Chinese Yuan Renminbi (Reporting and editing by Emelia Sithole Matarise; Additional reporting in China by Lewis Jackson, Dylan Duan and Emelia Sithole Matarise).
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Swiss court admits Indonesian Islanders climate case against Holcim
A Swiss court said Monday that it would accept a lawsuit against Holcim, a Swiss cement manufacturer. The complaint alleged the company was doing too little in order to reduce carbon emissions. Four residents from the low-lying Indonesian Island of Pari who have been repeatedly flooded by warmer temperatures?pushing up sea levels?, filed a legal complaint to the cantonal Court in?Zug in Switzerland in January 2023. The court admitted the case, but said that it could be reversed in a subsequent appeal if it found that the procedural requirements were not met. Holcim has announced that it will appeal the ruling and that the issue of "who can emit how much CO2?" should be decided by lawmakers, not a civil court. Swiss Church Aid, a non-profit organization that is supporting the Pari case, stated in a press release that this was the first time a Swiss court had admitted climate litigation against a large company. We are delighted. This decision gives me the strength to fight on," Ibu Asmania said in a statement by Swiss Church Aid. Ibu is one of four Pari residents who are pursuing this case. This is great news for our family and us. The NGOs that backed the complainants said they chose Holcim as it is one of the largest carbon dioxide emitters in the world and "a so-called Carbon Major" in Switzerland. Holcim has stated that it is committed to achieving net zero by the year 2050, and follows a 'rigorous, science-based' approach to reach this goal. The company also claims to have reduced CO2 emissions directly from its operations more than 50% in the last five years. The plaintiffs want compensation from Holcim, for the climate damage that they have experienced. They also want financial support in flood prevention measures and a reduction in CO2 emissions. Global Cement and Concrete Association reports that cement production is responsible for about 7% CO2 emissions worldwide. (Reporting and editing by Dave Graham, Denis Balibouse)
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EU investigates Czech State Support for Two New Nuclear Units
The European Commission announced on Monday that it had opened an investigation to determine whether the public support that Czech Republic plans to provide for?the construction and operation of two new nucleonic units is in compliance with EU State Aid rules. After EDF France's appeals were rejected, the Czech Republic's Competition Authority in April cleared the path for the signing of contracts with South Korea for two units in Dukovany worth at least $400 billion Czech crowns ($19.30billion) after they?rejected their appeals. In a press release, the Commission stated that it had "doubts" about the 'appropriateness' and 'proportionality? of the aid package provided by the Czech government. The Commission also questioned the impact on the market of the aid package and whether it was in compliance with EU law. According to the Commission, The Czech Republic intends to provide a low interest repayable state loan with an initial amount between $26.99 billion and $30 billion, as well as two-way contract of difference for a duration of up to 40 years. The Commission also plans to create a mechanism that will protect?the beneficiary of the EDU II support, which is owned 80% by the Czech government?, from any policy changes or adverse effects.
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Dalian Iron Ore continues to gain on tight BHP supplies and firmer hot metal production
On Monday, Dalian iron ore futures gained for a fifth session due to the tight supply of BHP’s?Jimblebar fines and Jingbao's fines. The May contract for iron ore on China's Dalian Commodity Exchange(DCE) rose 0.58%, to 781.5 Yuan ($111.01) per metric ton. As of 0710 GMT, the benchmark January iron ore price on the Singapore Exchange had fallen 0.05% to $104.65 per ton. Atilla Widnell, managing Director at Navigate Commodities, Singapore, stated that prices rose due to a limited supply of BHP's Jimblebar & Jingbao Fines. This left most Chinese mills represented state-owned China Mineral Resources Group with no choice but to purchase larger volumes of Rio Tinto’s Pilbara Fines. Widnell stated that the Pilbara fines were a key component of the underlying index for iron ore futures, which is used to benchmark them. This pushed up prices across the board, Widnell added. Navigate Commodities data showed that hot metal production in China, which is a measure of iron ore consumption, has been increasing since mid-September, 2025. Everbright Futures, a Chinese broker, reported that steel mill profitability had gradually recovered, with some mills having resumed production. According to Mysteel, the increased iron ore price in recent years has accelerated investment?into new mining capacities, pushing global iron ore markets into a?decisive expansion phase, according to Mysteel. SteelHome data shows that total iron ore stocks across Chinese ports increased by 1.19% week-on-week, to 145.5 million tonnes as of December 19. Coking coal and coke, which are used to make steel, have gained in popularity. The benchmarks for steel on the Shanghai Futures Exchange have risen. Rebar climbed 0.39%; hot-rolled coil 0.28%; wire rod 2.94%; and stainless steel 1.82%. ($1 = 7.0400 Chinese yuan) (Reporting by Lucas Liew; Editing by Subhranshu Sahu)
OPEC+ most likely to extend production cuts in June: Kemp
Saudi Arabia and its allies in OPEC+ are most likely to keep oil production unchanged for a further three months when ministers examine output allotments on June 1.
The tightening up of petroleum materials and deficiency of stocks widely prepared for at the start of the year has failed to materialise up until now.
If OPEC+ (Organization of the Petroleum Exporting Countries and allies) authorities had hoped to increase production into a. tightening market characterised by rising oil prices they are. likely to be irritated.
Crude stocks, futures costs and calendar spreads are all at. comparable levels to a year ago, making a significant boost in. output unlikely.
The group might nevertheless choose it needs to rescind a few of. in 2015's output cuts to pre-empt an additional increase in production. from the United States, Canada, Brazil and Guyana and prevent. yielding more market share.
However current market conditions suggest any increase is likely to. be symbolic, in the lack of a wholesale shift in method to. boost volumes and accept lower prices.
PRICES AND SPREADS
Front-month Brent futures have averaged $84 per barrel so. far in May putting them precisely in line with the average since. the start of the century after changing for inflation.
Costs have increased by just $6 per barrel, or 7%, compared. with a year ago when the group was preparing production cuts to. increase them.
Brent's six-month calendar spread has actually sold an average. backwardation of $3.54 (86th percentile for all months since. 2000) so far in May compared with $1.81 (60th percentile) this. month in 2023.
The increased backwardation indicates traders see the marketplace. somewhat tighter than in 2023 with a greater likelihood. inventories will diminish over the rest of 2024.
But the backwardation has been breaking down in current weeks. and has actually already narrowed from approximately $4.86 (95th. percentile) in April.
Chartbook: Oil costs and stocks
Despite a boost in stress across the Middle East,. causing a temporary rise in the war risk price premium, there. has been no real effect on oil products, and the premium has. mostly faded.
Diplomatic efforts have consisted of dispute in between Iran and. Israel, with no impact on either oil production or tanker. exports from the Persian Gulf.
Tanker traffic has been re-routed from the Red Sea and the. Gulf of Aden around the Cape of Good Want to prevent drone and. rocket attacks from Houthi fighters based in Yemen.
US OIL INVENTORIES
In the United States, business crude stocks are at. nearly the very same level as this time last year and near to the. prior 10-year seasonal average.
Commercial crude stocks amounted to 461 million barrels in. April 26 compared with 460 million barrels a year earlier.
Unrefined stocks were simply 5 million barrels (-1% or -0.11. standard variances) listed below the prior 10-year seasonal average.
There have been no indications of a substantial and sustained draw. down of inventories that would suggest the marketplace has been. under-supplied.
The majority of U.S. crude stocks are held at coastal refineries. and tank farms along the Gulf of Mexico, which is also the. area most closely incorporated with the international sea-borne market.
Gulf of Mexico stocks totaled up to 262 million barrels on. April 26, just 6 million barrels above the same time last year. and 15 million barrels (+6% or +0.57 standard deviations) above. the 10-year seasonal average.
The United States is not the whole international market however given. the effectiveness with which traders move barrels to make use of regional. disparities in between production and usage, it is a great. marker for the global balance.
U.S. crude inventories, global futures costs and to some. level softening calendar spreads all indicate a market relatively. near balance.
Portfolio financiers definitely appear to think so, with approximately. equal advantage and disadvantage dangers to costs.
On April 23, hedge funds and other money supervisors held a net. long position in futures and alternatives connected to crude rates. equivalent to 453 million barrels (46th percentile for all weeks. since 2013).
The position was an increase from 388 million barrels (29th. percentile) at the exact same point in 2023 however was essentially neutral.
Neither fund supervisors nor physical traders are signalling. the need for a boost in production from Saudi Arabia and its. OPEC+ allies in the third quarter.
PRODUCTION POLICY
Senior OPEC ministers and authorities worry the group's. policy is to be proactive and positive.
That may be true when it comes to lowering production to. avert an increase in excess stocks and stabilise prices.
When it comes to increasing production, nevertheless, the group. has actually usually waited till stocks have actually fallen and rates have. already increased considerably.
In this circumstances, stocks and costs close to the. long-lasting average suggest ministers are most likely to decide to keep. output unchanged, based on their behaviour in the past.
In the last years, OPEC+ production cuts have actually propped up. costs and supported continued growth in output from outside the. group specifically in the western hemisphere.
Some members of the organisation have expressed issues. about the loss of market share and pushed to increase. production.
Up until now, Saudi Arabia has led OPEC+ in cutting production to. reduce stocks and boost prices at the cost of volumes.
There are concerns about the long-lasting sustainability of. this method, but so far there's no indication of a fundamental. reconsider.
If ministers ultimately choose the loss of market share has. gone too far, they might cite more powerful projection demand and a. forecasted future decrease in inventories to validate improving. production.
That would expose a major modification in strategy to prioritise. volume over rates and there is no sign of it yet. If OPEC+. nonetheless chooses to reveal an output boost, it is most likely. to be little and symbolic.
Related columns:
- U.S. oil and gas production rebounds after winter season storm. ( May 1, 2024)
- Record U.S. oil and gas production keeps prices under. pressure (March 1, 2024)
- Western Hemisphere oil output rises, with a helping hand. from OPEC (February 21, 2024)
John Kemp is a market analyst. The views expressed. are his own. Follow his commentary on X https://twitter.com/JKempEnergy.
(source: Reuters)