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Russian city suffers toxic aftereffects of refinery attack
Residents of Tuapse, a Russian port city, were told not to drink the tap water on Thursday. Schools remained closed as officials dealt with the aftermath following the third Ukrainian drone strike against its oil refinery in the last month. Since Tuesday, the area has been under a state of?emergency? after an attack caused a massive fire to break out at the facility. This cut off production, and released slicks o oil into the water off the Black Sea Coast. The fire was out by Thursday morning. However, oil-stained beaches, polluted waterways and air in Tuapse show just how painful Ukraine's attacks on Russian energy infrastructure can be. The regional task force reported that emergency workers were sent out?on Friday to clean up five newly discovered oily parts of the coastline. The regional task force said that they had'scrubbed up 12600 cubic metres of contaminated materials in Tuapse. The consumer safety watchdog Rospotrebnadzor warned residents that the high levels of benzene in the air should be avoided. The local health authority advised residents on?Thursday? to only drink bottled water, and not to drink from natural springs or taps. This was a precautionary measure. The May holidays have been cancelled. Concerned Locals Some residents have expressed their concern and questioned the assurances of the authorities regarding the situation. "Why not come and try our fresh air?" One person commented Wednesday on a clip from Rospotrebnadzor chief Anna Popova, who said that the situation in Tuapse did not pose any health risks. "Everything's safe and under control!" Another person commented on a blog post that all large-scale outdoor events had been cancelled. Ukraine drones attacked an oil refinery in Perm, Russia, on Wednesday. This was the second attack in as many days on oil facilities located in that area of the Ural Mountains. These strikes are part of Kyiv’s strategy to increase?pressure on Russia over the past few weeks. The aim is to cripple Moscow’s main source of funding for its war in Ukraine as prices around the world have increased due to?the Iran _war. Ukraine claims that Russian forces have been attacking Ukrainian energy sites since many months. This has caused many casualties, and cut off power and heat for thousands of residents in the winter. (Reporting and editing by Keith Weir. Alessandra Prente)
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Italy extends the reduction in fuel excise duties by three weeks
Italy extended for three weeks the reduction in acquisition duties on fuels to help families, firms and individuals cope with rising energy costs. The government has announced that it will maintain a diesel duty reduction of 0.2 euros per litre, but the petrol duty reduction will be reduced to 0.05 euros. Meloni said at a press conference that diesel prices had risen 24% and petrol by 6% after the cabinet meeting. Italy has spent over 800 million euros to reduce excise 'duties' on both fuels from February 28 until May 1. The economy is struggling with the fallout -of the U.S. and Israel war against Iran. The preliminary figures released by the statistics bureau ISTAT on Thursday showed that Italian consumer prices?inflation increased by almost 3% in April compared to last year. The cabinet approved another package of measures aimed at investing up to 10 billion Euros in real estate projects over the next decade for people with low incomes, with a goal to provide 100,000 homes. BUDGET LEEEWAY Giancarlo Giorgetti, the Economy Minister of Italy, reiterated Italy's call for greater budget flexibility in energy-related expenditures during a discussion on the multi-year financial plans earlier on Thursday. He said that it was "very difficult to defend" (an EU clause) which allowed for budget flexibility for defence and excluded aid measures for the energy crisis. Italy wants to see the European Commission allow member states to reduce energy costs by using budget flexibility that is specifically intended for defence and security spending. In the case of a particularly adverse economic situation, the EU will allow countries to exceed their budget deficit limit or increase their defense spending. The budget flexibility for defence expenditures is available between 2025-2028. However, an increase in deficit cannot exceed 1.5% per year.
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The US-Iran conflict is heading towards a pivotal deadline with no end in sight
U.S. president Donald Trump faces a Friday deadline to either end the Iran War or convince Congress to extend it. But the deadline is unlikely to change the course of the conflict, which has descended into a standoff about shipping routes. It is highly unlikely that the war will be ended. Analysts and congressional aides say they expect Trump to either notify Congress of his plans for a 30-day delay or ignore the deadline, with the administration arguing that the current ceasefire agreement with Tehran marks the end of the conflict. War powers are deeply partisan. Like many policies in an acrimonious divided Congress, opposition Democrats have called for Congress to assert its constitutional right of declaring war, while Republicans accuse Democrats of trying use War Powers Law to weaken Trump. Since the beginning of the war on February 28, Democrats have repeatedly tried to pass resolutions that would force Trump to withdraw U.S. troops or get congressional approval. Trump's Republicans in the Senate, and House of Representatives who have slim majorities, voted against them almost unanimously. According to the 1973 War Powers Resolution?the U.S. President can only wage military action for 60 days before it ends. He must then come to Congress to seek authorization, or request a 30-day extension if "unavoidable" military necessity is a factor. The Iran conflict began on February 28 when Israel and the United States launched airstrikes against Iran. Trump officially notified Congress 48 hours after the start of the conflict, as required by law, and started the 60-day clock ending May 1. FIRE FRAIL CEASEFIRE A U.S. official said that Trump will receive a briefing Thursday about plans to launch new military strikes against Iran in order to force it to negotiate a resolution to the conflict. Trump could tell lawmakers if fighting continues that he's started a 60-day countdown. This is something presidents of both parties have done many times since Congress passed the War Powers law over Richard Nixon's then-veto in response to Vietnam War. This conflict was also not authorized by the Congress. Iran warned that it would respond to any new attacks by Washington with "long, painful strikes" against U.S. positions. This could complicate Washington's hopes of an international coalition opening the Strait of Hormuz. Six months before the November elections, which will determine who controls Congress in next year's Congress, opinion polls reveal that Americans are unpopular with the Iran War. Trump's approval rating fell to its lowest level in his current term, this month. Americans blamed higher prices on the war and the rising cost of living. Trump still controls his party, and very few Republicans are opposed to his policies. Republicans also strongly support Israel which is also attacking Iran and welcome the weakening Iran as a bitter American enemy. Christopher Preble, senior fellow at the Stimson Center in Washington, said: "It is partisanship plain and simply." "Republicans will not defy President Obama, that's it." 'ACTIVE CONVERSATIONS' The White House is yet to announce its plans or whether it will request that Congress approve an Authorization for the Use of Military Force Against Iran. The administration is actively in conversation with the Hill about this topic. Members of Congress that try to score points by usurping Commander-in Chief's authority will only undermine the United States Military overseas, which is something no elected official would want to do," said a White House Official on condition of anonymity. Only Congress and not the President can declare war in the U.S. Constitution, but this restriction does not apply to short-term operations, or countering an immediate threat. Some Republicans who have previously voted against war power resolutions said they might reconsider after May 1. John Curtis, a Republican senator from Utah, wrote an article in which he said he supported Trump’s actions but that he would not continue military action past the deadline without congressional approval. Others, however, said that they would wait. John Thune, South Dakota's Republican majority Leader, said that it would be ideal if Washington, Tehran and other countries could come to a peaceful agreement. He told reporters, however, that he had not ruled out the possibility of a vote on authorizing war. "We are listening and trying to stay dialed in, getting regular updates from administration on forward progress," Thune told reporters. Chuck Schumer, the Democratic Senate leader from New York, has sponsored resolutions to end war. "Republicans are aware that Trump's handling this war was a disaster. "They see how much American people are suffering right now," he stated in a Senate address, referring the sharp rises in gasoline prices and other costs. How many War Powers Resolutions must Democrats introduce before Senate Republicans act? Schumer asked. (Reporting and additional reporting by Steve Holland, Alistair Bell and Don Durfee; edited by Don Durfee)
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ArcelorMittal expects EU steel imports to remain high
ArcelorMittal’s chief financial officer said that steel imports into the European Union will remain high during the second quarter as buyers rush to get material into the bloc before tighter safety measures are implemented. GenuinoChristino stated that imports were still high at the beginning of the second quarter, even after they had dipped in the first. He said that despite the fact that imports were down in the first quarter, evidence indicates?that they are still high at least for the start of quarter 2. In July, the?EU will implement a new policy that will reduce steel import quotas by half. Christino stated that higher freight rates and shipping times, 'linked to disruptions from the Middle East war' were unlikely to delay arrivals. The European Steel Association (also known as 'Eurofer') warned in March of an import share of 29% of the EU steel market by?the third-quarter of 2025. According to LSEG, the Luxembourg-based firm posted a first-quarter 'core earning' of $1.68billion, which was just a little bit higher than analysts' estimates of $1.65billion. (Reporting from Gdansk by Javi Larranaga; editing by Matt Scuffham).
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CEO Repsol says that the company is not in a rush to list its upstream unit on US stock exchange.
Josu Imaz, the chief executive of Repsol, said that the company is not in a hurry to list the oil and gas production unit it has in the United States. This will temper expectations for a 'initial public offering' or reverse merger. Imaz said in late 2018 that its upstream unit is preparing for a liquidity event by 2026. This could be an IPO, or a reverse merge with a listed company?in the U.S. He said that while the unit is technically "ready to go to the American market", it would be better if the fundamentals of the upstream sector improve in the next few months. He said, "We're comfortable with the current situation. We won't jump into a liquid event in the near future." When asked if he was interested in a possible IPO or the alternative to going public - a reverse merger. Imaz spoke after Spain's largest refinery operator, Imaz, reported strong quarterly results. Imaz said that Repsol, and its partner, U.S. Private Equity Fund EIG, who has a 25% stake in the upstream unit "are fully on board with this view". In 2022 Repsol sold its stake in an agreement that valued the entire business at $19 billion including debt. The deal contemplated the?potential U.S. IPO? from 2026, depending on market conditions. The unit has assets in several countries including the United States - namely, the Pikka oil development in Alaska, which is one of?group?s key growth developments - as well as Brazil Mexico Libya and Venezuela. Imaz stated that Repsol's upstream businesses was showing a broad overall progress. He cited developments in Venezuela, "where production is growing with the support of both Venezuelan authorities and U.S. Authorities", as well as advancements in Alaska and Libya.
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Austrian parties ask for last-minute extension to the fuel price "brake"
After initial reports of failure, last-minute discussions between Austria's three ruling parties continued on Thursday. The government must set the amount of the two elements. Austrian media reported that the parties were discussing a lower level but one potential sticking point was that the smallest of three, liberal and fiscally conservative Neos, had been?seeking a guarantee that this mechanism would not be extended beyond May. Austrian media reported that parties were discussing a lowered level. However, one sticking point could be that the smallest party, the liberal fiscally conservative Neos had asked for a guarantee the mechanism wouldn't be extended past May. Some media reported initially?on Friday that the talks failed, but later said they were 'continuing but on a razor edge. Politicians may be more concerned about the political consequences of not reaching an agreement than they are with the financial costs. The cost of living has been ranked as the top concern by voters in polls. Statistik Austria's national statistics office released a?flash estimate on Thursday that put the inflation rate at 3.3% for April, up from 2.3% in January.
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Argentina will increase fuel taxes by May
According to a Thursday decree published in Argentina's official gazette, the government will increase fuel taxes by a portion starting May 1. Further increases will be delayed until June. The aim of this measure is to reduce the impact on prices and inflation caused by the increase in global oil prices due to the conflict in the Middle East. In May, gasoline will be taxed by 10.398 Pesos for a liquid fuel tax and by 0.6377 Pesos due to an environmental tax. The tax on diesel is also going up by 9.269 Pesos due to the liquid fuel taxes, with a rate a 5.019 Pesos in the "Patagonian" regions and a 1.056 Pesos tax for carbon dioxide. In March, the monthly inflation rate in Argentina rose to 3.4%. This was a result of a rise in crude oil price on a global scale. The global oil price reached a four-year peak on Thursday. It was above $126 per barrel amid fears the conflict between Iran and the United States could escalate and cause a long-term disruption of crude oil supplies throughout the Middle East. (Reporting and editing by Sarah Morland; Walter Bianchi)
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Israeli strikes kill four Palestinians, say medics, amid new ceasefire effort
Health officials reported that Israeli strikes had killed four Palestinians on Thursday in the Gaza Strip. Hamas leaders were meeting mediators in Cairo to discuss ways to'reinvigorate' a fragile six-month-old truce brokered by the U.S. Medical personnel?said that an Israeli strike near the Salahudeen Road in central Gaza Strip killed at least three persons, while another struck near a hospital near Deir Al-Balah in further south. The Israeli military has not yet commented on the reports. Israel and Hamas blame each other for violations of the truce. Local medics claim that at least 800 Palestinians were killed since the ceasefire came into effect. Israel claims that militant attacks killed 'four' of its soldiers during the same time period. Hamas told reporters on Thursday that a Hamas delegation had arrived in Cairo just two days before for talks with mediators about the Gaza plan of U.S. president Donald Trump. Sources familiar with the talks stated that?efforts made to force Israel and Hamas to implement a second stage have not been successful. Israel will 'further pull back in the second phase, according to 'the plan. A transitional authority will take control of Gaza in this phase and a multinational force is deployed. Hamas should be disarmed as part of the plan. Gaza's health authorities report that more than 72,500 Palestinians were killed in the Gaza war since it began on October 22, 2023. According to Israeli statistics, Hamas' attacks on Israel in October 2023 - the events that precipitated Gaza war – killed 1,200 Palestinians. (Reporting and editing by Andrew Heavens; Nidal al Mughrabi)
The US wants to borrow about 92.5 millions barrels of Strategic Petroleum Reserve
The Trump administration wants to lend up to 92.5 million barrels of oil from the Strategic Petroleum Reserve to energy companies to help calm down oil markets which have risen due to the war against Iran.
In March, the U.S. agreed to lend 172 million barrels of oil from the SPR. This was part of a larger agreement?with over 30 countries that are members of the International Energy Agency. The agreement also included the release?of about 400 million 'barrels? to relieve the markets. Fatih Birol is the head of IEA and he has stated that the 'war has caused the worst supply disruptions in history. The U.S. had offered 126,000,000 barrels of crude in three batches until Thursday, but the oil companies took only less than 80,000,000 barrels.
If all oil companies accept the new offer, it would meet U.S. goals of lending 172 million barrels.
The rising oil prices pose a threat to the fellow Republicans of President Donald Trump in November's midterm elections.
Prices have increased despite the use of reserves. On Thursday, global oil prices briefly reached a four-year peak of $126 per barrel on fears that the Middle East could be subjected to prolonged disruptions in supply.
The Department of Energy claims that the system will help stabilize the markets at no cost to American tax payers.
The SPR is a collection of salt 'caverns' located at four locations on the coasts of Texas and Louisiana. It holds 398 million barrels or roughly what the entire world consumes in four days. (Reporting and editing by Timothy Gardner and Katharine Jones; Caitlin Weir, Franklin Paul, and Keith Weir).
(source: Reuters)