Latest News
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Budget proposal by the US House of Representatives targets climate and clean energy cuts
U.S. House lawmakers laid out plans on Sunday to phase out key clean energy tax credits, as well as slash billions in spending related to electric vehicles and renewable energy, fast-track gas exports and claw back unspent climate-related funds as part of the Republicans' attempt to pass a multi-trillion-dollar budget to carry out President Donald Trump's agenda. The House Committee on Energy and Commerce has drafted a proposal that will be voted on on Tuesday. It would generate $6.5 billion by repealing climate-related portions of the massive Inflation Reduction Act legislation of the Biden Administration. The bill would repeal important rules of the Biden administration Environmental Protection Agency, such as one which would reduce emissions allowed for light and medium duty vehicles beginning with model year 2027. The Energy Department would also receive $2 billion to replenish the Strategic Petroleum Reserve. The proposal was announced in an op-ed published by the Wall Street Journal on Sunday. The bill would rescind any remaining money that has not been spent from the $27 billion fund for greenhouse gas reduction. This money had been a target of EPA Administrator Lee Zeldin who alleged in court cases that it was being used fraudulently. The Energy Department would also remove all unspent IRA funding from its loan office, including tribal energy loan guarantee programs and financing for transmission facilities. The IRA would revoke all unspent funds made available for the reduction of methane at oil and gas installations and greenhouse gas reporting. It would also revoke funds allocated to reduce air pollution at ports, manufacturing facilities and in schools. Lena Moffitt, Executive Director of Evergreen Action, said, "Their plan guts investments which are cutting energy costs and powering a manufacturing boom in the United States, as well as delivering healthcare to communities who need it most." (Reporting and editing by Andrea Ricci; Valerie Volcovici)
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Roche expands its US presence by $700 Million in North Carolina
Roche Group announced on Monday it will invest over $700 million into a new manufacturing facility in North Carolina. The company is the latest to expand their presence in the United States in response to President Donald Trump’s tariff policies. The new facility in Holly Springs, North Carolina will support Roche's and Genentech’s future portfolio of obesity drugs. In March, Roche acquired the rights to petrelintide from Zealand Pharma of Denmark. This therapy is currently in mid-stage clinical trial. Roche's obesity pipeline includes drugs that treat obesity and diabetes from Carmot Therapeutics, which it acquired in 2023. The company stated that "this initial investment may expand in the future based on the business needs and U.S. policies." Roche announced in April that it will invest $50 billion over the next five-years in the United States, and plans to create 12,000 new jobs. This announcement is part a broader trend in which drugmakers like Eli Lilly and Johnson & Johnson have made massive investments. Gilead has also pledged to increase its domestic production as a response to President Trump’s tariff policies. The Trump administration is pressuring U.S. pharmaceutical companies to move production in-house. Last week, the President signed an executive directive to speed up approvals for pharmaceutical plants, encouraging U.S. manufacturing. Trump has also stated that he Plans to Sign He said that the executive order aimed to align US drug prices with those of other countries. This move, he claimed on social media, could lead to a 59% drop in drug costs. (Reporting and editing by Tasim Zaid and Shailesh Kuber in Bengaluru)
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Official: Iraq will reduce crude oil exports to the United States in May and June
Iraq will export 3.2m barrels of crude oil per day in May and in June, according to an Iraqi official who is familiar with the situation. This would be a substantial reduction compared to previous months. The official, who declined to give his name because the matter was confidential, added that the lower export plan is part Iraq's efforts in order to meet its schedule of compensation reductions pledged to OPEC+. Iraq's oil minister reported a rate of 3.42 million barrels per day in March. This would indicate a lower level of exports. Baghdad is yet to report April exports. However, Kpler, an intelligence data firm, reports that the country shipped a total of 3.3 millions bpd. OPEC+ (which includes OPEC, Russia, and other allies) has agreed to a series production cuts starting in 2022. The compensation plan, which was updated last month to reflect the latest reductions, is intended to encourage members who are unable or unwilling make full cuts, implement additional reductions. If the latest cuts are made fully, the compensation plan will offset a planned increase in output of 411,000 bpd by other members in OPEC+ for May and June. This would provide additional support to the oil market. (Reporting and editing by Susan Fenton; Alex Lawler)
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Gold drops over 2% after US and China strike tariff agreement
Gold, the safe-haven asset, fell by more than 2% Monday after a risky sentiment took hold following the announcement of the temporary tariff reduction agreement between the United States (US) and China. As of 0941 ET, spot gold was down by 2.5% to $3,239.54 per ounce. Bullion, a hedge for economic and geopolitical instability, reached a new record of $3,500.05 in the last month due to increased tariff uncertainty. U.S. Gold Futures fell 3% to $3244.20. BullionVault's director of research, Adrian Ash, said that gold's reaction to the chaotic headlines last month from the White House left the precious metal open to a Trump backtracking. Gold is likely to see upside potential if the optimism is shattered. Both sides announced that the U.S. would reduce its extra tariffs on Chinese imports, which it imposed in April of this year, to 30% (from 145%), and Chinese duties on U.S. imported goods will drop to 10% (from 125%), they said. The new measures will be in effect for 90 days. Following the agreement, the U.S. Dollar surged over a month high and global stocks rallied. A stronger greenback makes gold more expensive for foreign investors. The bulls of June gold futures have lost the technical edge they had in the near term. Bulls' next price target is a close over solid resistance at $3350. The first resistance is at $3.250, and then $3.275", said Jim Wyckoff. Senior analyst at Kitco Metals. Traders are now awaiting the U.S. Consumer Price Index, which is due on Tuesday, for direction on the Federal Reserve’s policy. The Producer Price Index, retail sales and the Retail Sales Index are also important data due this week. Low interest rates make non-yielding gold more appealing. Silver spot fell 0.2%, to $32.64 per ounce. Platinum dropped 1.7%, to $977.77. Palladium dropped 1.6% to $960. (Reporting and editing by Vijay Kishore in Bengaluru, Ashitha Shivaprasad from Bengaluru)
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While Brazilian President visits China, a $1 billion sustainable fuels deal is announced
Brazil announced two Chinese partnership on Monday. One of them was a $1 billion investment from China's Envision Energy in the production of sustainable aviation fuel. This announcement came as Brazil's president visited China. The President Luiz inacio Lula da Silva met with the energy industry, as well as GAC and Norinco, a Chinese defense company. Alexandre Silveira, Minister of Mines and Energy in Brazil, told journalists in China that the Brazilian government will also try to secure Chinese investment in data centers in Brazil and will be meeting TikTok Tuesday. Last month, it was reported that ByteDance (the owner of TikTok) is looking into installing data centres in the port city of Pecem, in the Brazilian state Ceara. TikTok refused to comment. Silveira, in a statement issued on Monday by the Brazilian government, told journalists that the government "was making every effort" to upgrade infrastructure around the TikTok port. The company has "a planned investment amounting to 50 billion reais (8.82 billion dollars). Envision Energy, according to the Brazilian Presidential Palace, will invest in the production in Brazil of sustainable aviation fuel using sugarcane. Brazil's Ministry of Mines and Energy announced in a separate press release that the state-owned Chinese firm Windey Energy Technology and Brazilian University Senai Cimatec will work together on developing renewable solutions including energy storage.
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The Russian central bank believes that oil prices will stabilize at $60 per barrel
The minutes of the April 25th board meeting published by the Russian central bank on Monday show that it believes oil prices will stabilize at $60 per barrel in future, as global demand is expected to increase as trade restrictions are eased. At the April meeting, the central bank held its main interest rate at 21%. The minutes of each board meeting are published two weeks after the meeting. They provide an insight into what factors influenced the decision. The bank stated that "global demand will recover when trade restrictions and tariffs have been reduced and government support measures are implemented." Brent crude LCOc1 Futures rose $2.43 or 3.8% to $66.34 per barrel on Monday after the U.S. said it would ease some tariffs. This raised hopes that the trade war will end between the two world's largest crude oil consumers. Oil prices have fallen about 20% since the January 15th peak of $82 per barrel, which was set for 2025. According to the central bank, the new trade tariffs on the global economy will have a limited impact on Russia. This is mainly reflected in lower oil prices. It warned, however, that there are serious risks associated with a further escalation in global trade wars. The central bank stated that "prolonged enforcement of restrictions could affect the dynamics of the oil price". (Reporting and writing by Elena Fabrichnaya; editing by Susan Fenton).
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China Minmetals unit bids for Australian miner to target global potash assets
Yankuang Energy, a coal miner owned by China Minmetals, announced on Monday that a unit of the state-owned company plans to invest $300m to purchase Australian potash miner Highfield Resources. The aim is to expand into potash projects across Canada and Spain. Highfield Resources announced in September that it would raise $220 from Yankuang Energy, among other parties. This deal would make the Chinese coal mining company its majority shareholder. If the agreement is completed, Qinghai Salt Lake Industry, owned by Minmetals, Yankuang and Highfield's largest shareholder EMR Capital would gain control of Highfield. Qinghai will also purchase Yankuang's Yancoal Canada operation, which includes its Southey Potash Project and Highfields' Muga Project in Spain that is ready for construction. Potash is an essential component of agricultural fertilisers and vital for food production. Qinghai Salt Lake Industry is the largest lithium and potassium producer in China. Qinghai, known for its mining operations focusing on metals such as copper and zinc, and Minmetals are developing together a lithium and potassium production center in northwest China worth 10 billion yuan (1,39 billion dollars). Yankuang's investment in Highfield was approved by Australia's Foreign Investment Review Board on April 1. Qinghai will also have to comply with this requirement if a binding deal is reached. This would include approvals for the deal from Spanish and Canadian authorities on foreign investment. Highfield Resources and Qinghai Salt Lake Industry didn't immediately respond to requests for comments.
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Oil jumps and soy increases as US-China tariffs pause brings relief
Oil prices rose more than 3% Monday, while soybeans were trading at their highest level in three months. This was after the United States paused tariffs on trade for 90 days. Two of the world's largest economies have agreed to temporarily reduce their reciprocal tariffs while they negotiate to stop a damaging trade conflict that has caused financial markets to rumble and raised fears of a recession. The U.S. is reducing the extra tariffs on Chinese imports from 145% to 30% and Chinese duties on U.S. imported goods will drop to 10% from 125%. The new tariff rates are lower than expected and return tariffs back to levels before Liberation Day. This was the day on April 2, when U.S. president Donald Trump announced a slew levies against trading partners. Brent and U.S. WTI futures have risen more than 3% following the agreement between the two world's biggest oil consumers. This is on top of gains last week of about 4%. Ole Hansen, analyst at Saxo Bank, said that crude oil was initially the biggest winner. The news helped to stabilize the demand outlook. The benchmark Dutch front-month gas contract, based on data provided by LSEG at 1229 GMT, rose to 36.18 Euros per megawatt hour or $11.79/mmBtu. This is the highest level since April 16. The U.S. soybean crop has been hit the hardest by the trade dispute, with China, the top soy importer in the world, shifting its purchases from the U.S. to Brazil, the second largest exporter. The Chicago Board of Trade’s most active soybean contract rose by 1.7% to $10.69 per bushel. This is close to the highest price since early February. Gold prices dropped to $3,207.3 per ounce, and last fell 2.85%, at $3,229.88. The price of industrial metals rose, as fears about growth and demand eased. However, traders noted that the market was still cautious. Aluminium gained 2.9%, to $2,488 per metric ton, while benchmark copper was up 0.9% at the London Metal Exchange. Callum Macpherson, Investec's head of commodities, said: "We don't know what happens after this period and whether the U.S. will be able reach a lasting deal." The longer the uncertainty continues, the more it will impact the economy. Reporting by Seher Daeden and Robert Harvey, London; Additional reporting by Nora Buli, Oslo; Brijesh Patel, Bengaluru, London; Kirby Donovan, editing.
Israel aims to boost Red Sea oil deliveries despite ecological dangers
Israel plans to permit more oil tankers to dock at a Red Sea port in Eilat despite environmental threats, as it makes every effort to preserve energy security amidst dispute on numerous fronts, according to Israeli authorities and government documents.
Prime Minister Benjamin Netanyahu's workplace wishes to withdraw limitations on the quantity of oil that can be unloaded at a. jetty in the city, which sits in the middle of a string of. resorts and beaches and is surrounding to a fragile reef.
The curbs enforced in 2021 by the Environmental Protection. Ministry and which efficiently halted an oil supply handle. the United Arab Emirates, were relieved momentarily late last year. at the start of the Gaza war.
The jetty comes from state-owned Europe Asia Pipeline Co. ( EAPC), which runs a pipeline across Israel linking the. Red and Mediterranean seas as an option for tankers. crossing the Suez Canal.
EAPC wishes to get more oil but ecological regulators. and Eilat's mayor oppose the plan.
With the war versus Hamas triggering battling with. Hezbollah in Lebanon and drawing attacks from other Iranian. proxies in Yemen, Iraq and even by Iran itself, Israel is. pushing to guarantee it can keep its economy running efficiently.
When its primary energy source, the offshore Tamar gas field,. was briefly shut at the beginning of the war with Hamas, the. country turned to products allocated for export.
With Yemeni Houthis interfering with trade in the Red Sea, ships. have diverted to Mediterranean ports. Utilities have developed their. own backup networks.
EAPC signed an offer to transfer large amounts of oil from the. UAE to Europe through its pipeline in 2020, soon after Israel. and the UAE stabilized ties, in one of the most significant. collaborations to emerge from the U.S.-brokered Abraham Accords.
The deal was anticipated to move tens of millions of loads. of oil, meaning about 50 tankers docking at the congested Eilat. coastline yearly, the Environmental Protection Ministry said. The previous average was two.
The environment ministry took a hardline policy of no. additional risk and set a limitation of 2 million tons of oil,. successfully blocking the offer.
Eilat's reef is unique in having proved more resilient. to environment change, when numerous reefs around the globe are dying. It is also a huge tourist draw. Its proximity to the jetty leaves. it vulnerable to even the tiniest leakage from one tanker.
Despite those threats, Netanyahu's office advised this. month that the easing of constraints be extended and broadened. to consist of fuel for trade in addition to domestic usage, and even for. capacity to unload oil products in Eilat to be broadened, an. internal report seen showed.
The federal government of Israel does not take an approach of. total risk avoidance - not in security, not in energy and not. in the environment, a ministerial committee formed by Yossi. Shelley, director general of Netanyahu's office, stated in the. report which has not been made public.
Not canceling the constraint of the 'no additional risk'. policy, without managing the danger, and not broadening the. distillates port may cause the closure of the Eilat terminal. and not permit the necessary response in times of emergency.
The committee advised the environment ministry to come up. with a strategy to minimize risks from more oil deliveries.
The Environmental Protection Ministry composed to Netanyahu's. workplace on April 16 after receiving the report, and in its letter. seen said its issues were ignored, the report's. suggestions were undesirable, and that it did not have the. resources to control the proposed increase in shipments.
In arguing its case, the ministry has actually cited past accidents,. like in 2014 when EAPC's pipeline burst, spilling countless. litres of oil into a nature preserve.
It was uncertain whether eliminating the Eilat constraints would. revive the UAE oil deal. Petromal, a system of Abu Dhabi-based. National Holding and among the owners of the company that. signed the handle EAPC, did not instantly react to a. ask for comment.
KEEPING THE OIL FLOWING
EAPC Chairman Erez Halfon invited the government's U-turn. in a statement in which he said the war has actually made clear the. strategic, security and energy importance of EAPC's facility in. Eilat.
Without consistent oil deliveries, the Eilat center will. degenerate and end up being unreliable, EAPC stated.
Nearly all Israel's trade, consisting of energy deliveries, is. seaborne and most takes place along the Mediterranean coast in ports. at Haifa, Ashdod and Ashkelon.
In 2023 Israel imported 267,000 barrels per day of crude. oil, according to data from delivering analytics firm Kpler,. mostly from Kazakhstan, Azerbaijan and Kurdistan.
The Emirati oil offer might be worth about $50 million a year. for EAPC, according to the internal report.
Israel's Energy Ministry informed that oil shipments. need to be enough to economically sustain the terminal however require. to be managed appropriately vis a vis the environment.
One government main dismissed an argument by the. director general of the Environmental Protection Ministry that. there were other ways to keep the jetty functioning.
The professional position was clearly specified that any methods. aside from functional activity will not be sufficient to keep. that channel performance, the official told .
The committee, the official highlighted, did not tell the. Environmental management Ministry exactly how much oil should be. allowed or how to conduct the survey, only that it be brought. out. It offered the ministry 3 months to comply.
(source: Reuters)