Latest News
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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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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".
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Ivanhoe CEO: Ivanhoe has a captive audience on Congo's sulphuric market
Ivanhoe Mines' sulphuric-acid?has a captive audience in the Democratic Republic of Congo. The chemical is soaring due to limited supplies caused by the conflict with Iran. Ivanhoe, a Vancouver-based company, began selling sulphuric acids as a by-product of copper smelting on its Kamoa Kakula project this year to other mine operators in the DRC copper belt who need acid to dissolve ore copper using a process known as leaching. The Middle East has struggled to supply?world markets', causing fears about a global sulphuric-acid shortage. Ivanhoe CEO Marna cloete told a copper industry gathering in Santiago that the DRC alone has an acid market of 2 million metric tonnes per year. "We only produced just over 100,000 tonnes in the first quarter. But that's going out to Glencore and ERG (Eurasian Resources Group)... so it's local," she said. She added that the annual acid production would reach 600,000.00 to 700,000.00 tons when its smelter is running at full capacity. She?added that the local market was more than enough for us to sell. This is because restrictions on exporting Zambian sulphur had prevented?DRC firms from producing their own acid. Cloete said, "Our distribution is captive." Ivanhoe stated in a Monday statement that the Kamoa-Kakula Smelter has ramped up its capacity to 60%, and further expansion is constrained by "a lack of concentrate feed". Ivanhoe stated that the company's high-strength?sulphuric acids were priced at around $500 per ton during the first quarter. Spot prices increased over the course of the three month period.
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Bessent: The U.S. will not renew waivers for Iranian oil and Russian oil
Treasury Secretary Scott Bessent said to reporters that the United States would not be renewing waivers which allowed some Iranian and Russian oil to be purchased without facing U.S. sanctions. Reports on Tuesday stated that Washington will not renew the 30-day waiver for sanctions against 'Iranian Oil at Sea' that expires in this week and that a similar waiver would expire on sanctions against Russian oil over the weekend. We will not renew the general license for?Russian oil and we won't be renewing the?general?license for Iranian oil. This was oil which was in the water before March 11. All of that oil has been used", Bessent told a White House press briefing. The Trump administration has ceased to try to lower global energy prices by using sanctions waivers to increase oil supply. Bessent stated a month ago that the waiver issued by the Treasury Department on March 20 allowed 140 million barrels of oil to be sold globally and relieved pressure during the war. The waiver expires on April 19, 2019. Reporting by Steve Holland, Humeyra Pamuk and David Ljunggren; editing by David Ljunggren
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Gold prices fall as attention turns to US-Iran developments
Investors analyzed the latest signals regarding the 'U.S.-Iran' situation and their potential impact on interest rates. As of 1:31 pm, spot gold was down by 0.9% to $4,798.89 an ounce. ET (1731 GMT) after reaching its highest level since March 18, earlier in the day. U.S. Gold futures ended the session 0.5% lower, at $4.823.60. Kitco Metals' senior analyst Jim Wyckoff said, "Gold and silver are only experiencing some mild and normal profit-taking following overnight highs." Gold prices are rising on the back of increased risk appetite, and a selling off during periods of risk aversion. This is contrary to gold's role as a safe haven. He added that traders are "currently focused more on the implications and pressures of inflation" than tighter monetary policies. U.S. president Donald Trump declared that the war with Iran he started in conjunction with Israel was nearing its end, while the chief of the Pakistani army who is the mediator arrived in Tehran. As shipping restrictions continued through the Strait of Hormuz, oil prices rose. Transit through the waterway is still uncertain 45 days after the Revolutionary Guards of Iran declared the Strait closed. This is despite a 2-week ceasefire. Chicago Fed President Austan Goolsbee stated on Tuesday that the Federal Reserve could have to wait until 2027 before cutting interest rates, if the Iran War's prolonged high oil prices delay inflation's progress toward the 2% target set by the U.S. Central Bank. Markets currently predict a 32% chance of a U.S. interest rate cut in this year. Gold's appeal as an inflation hedge is diminished by higher interest rates. Silver fell by 0.2% at $79.40 an ounce. Platinum rose by 0.8% to 2,119.52. Palladium fell 1.1% to $1,570.10. Ashitha Shivprasad reported from Bengaluru, and Jan Harvey edited the story.
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Heavy rains reported to have killed at least 16 people in Hispaniola
According to civil protection and?local media?on Wednesday, days of torrential rain over northwest?Haiti have killed 16 people. Local newspaper Le Nouvelliste reported that at least 12 people died in floods in northern Haiti, including in Port-de-Paix and Saint-Louis du Nord, as well as Anse-a-Foleur. Listin Diario, a local newspaper in the Dominican Republic (which shares the Caribbean island Hispaniola, with Haiti), reported on Monday that four people were killed, including some who had been swept away by swollen riverbeds, and an infant girl who was killed when a wall fell onto her at home. The Dominican authorities reported on Monday that over 30,000 people had been forced to leave their homes. They also said the rains would intensify again this weekend. Puerto Rico, a U.S. Authorities in Puerto Rico warned residents to avoid the flooded roads as rain is expected to continue until?the afternoon. A'stampede' at the UNESCO-listed Laferriere Citadel in northern Haiti, which is a World Heritage Site, had killed 25 people just days before. People began rushing onto the site as rain started falling during an annual event. (Reporting from Sarah Morland).
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IMF chief: 12 or more countries are seeking loans to deal with Middle East war energy shock
The International Monetary Fund (IMF) expects that at least 12 countries will?seek out new loan programs? to deal with the surging 'energy prices? and supply chain disruptions caused by the Middle East?war?,? the head of global crisis lender, said on Wednesday. Kristalina Georgeeva, IMF's Managing Director, warned of further supply disruptions if the Strait of Hormuz is closed even if it ends quickly. She also urged nations to reduce fuel consumption. At a press briefing during the IMF/World Bank spring meetings, Georgieva reiterated her estimation that the disruptions caused by the war would trigger a new demand for financial support of $20 to $50 billion. This could include new loans and the augmentation of 39 existing country finance programs of the global lender. She did not mention specific countries who have requested assistance, but she said that the IMF is?not currently examining an augmentation to Egypt's 8 billion loan program in spite of the war's effect on its economy. Georgieva expressed concern about the breakdown in supply chains, particularly for Asian countries that depend on Gulf oil, natural gases, naphtha and helium, as well as fertilizer, other inputs, and other inputs. She stated that such disruptions "will not disappear overnight, even if war ends tomorrow. Why? A tanker, which is a "slow-moving vessel", would take forty days to reach Fiji. We need to prepare for the fact that the impact of the supply disruptions will be greater in the coming weeks. IMF has already stated that the global economic conditions have worsened beyond what was projected in its World Economic Outlook, which was updated on Tuesday. The IMF's forecast of 3.1% growth for 2026 is based on the end of the conflict as well as a drop in oil prices. Pierre-Olivier Gourinchas is the IMF chief economist. He said that the global economy had "drifted" beyond the forecast and was heading towards a more negative scenario, as outlined in the IMF World Economic Outlook. The IMF predicts that growth will fall to 2.5% by 2026, while oil prices are expected to average around $100 a barrel. In the worst case, "severe scenarios"?of a longer and deeper conflict, global economic growth drops to 2%, bringing it to the edge of global recession. Georgieva stated that more shortages are looming and countries should take steps to conserve energy. She also suggested creating incentives to reduce oil intensity in their economies. For example, temporarily freeing public transport. She reiterated the IMF's warnings that countries should not take untargeted measures such as energy subsidies in order to offset the impact on higher prices. IMF Fiscal Monitor released on Tuesday urged all countries to avoid subsidies, and instead provide temporary cash transfers that are targeted at the most vulnerable citizens, but do not mask higher fuel prices or stoke up demand. Rodrigo Valdes, Director of Fiscal Affairs at the IMF, said that broad fuel subsidies could do this and shift supplies away from poorer nations. He told a press conference, "If you try undoing a supply shock by trying?to prop up demand, you'll end up with even more inflation." The IMF has urged central banks to be vigilant and watch for signs of wage-price spirals, but to not tighten the monetary policy or cool the demand immediately. Georgieva stated that central banks should not rush to act if they have high credibility. "Wait and see what the conditions are. She added that central banks with less credibility in controlling inflation might need to take stronger steps, without naming any specific countries. (Reporting and editing by Andrea Shalal, David Lawder)
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.
(source: Reuters)