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Investors look at impact of attacks on Russian energy infrastructure to see if oil gains.
Investors weighed the impact of Ukrainian drone strikes on Russian refineries, which could disrupt Russia's crude and fuel exports. They also looked at U.S. fuel demand growth. Brent crude futures rose 3 cents, to $67.02 per barrel at 0009 GMT. U.S. West Texas intermediate crude crude was up 8 cents at $62.77 per barrel. Both contracts gained more than 1% last week as Ukraine stepped up attacks on Russian oil infrastructure, including the largest oil exporting terminal Primorsk and the Kirishinefteorgsintez refinery, one of the two largest refineries in Russia. In a note referring to the attack in Primorsk, JPMorgan analysts headed by Natasha Kaneva stated that "the attack indicates a growing willingness" to disrupt international oil market, which could add upward pressure to oil prices. Primorsk is the largest port of western Russia and has the capacity to load approximately 1 million barrels of crude oil per day. Surgutneftegaz operates the Kirishi refinery which processes approximately 17.7 million tons of Russian crude per year (355 000 bpd), or 6.4% of its total. Radiy Khabirov, the regional governor of Bashkortostan in Russia, said that despite Saturday's drone attack an oil company will continue to produce at its current levels. As U.S. president Donald Trump reiterated Sunday that he was willing to impose sanction on Russia, Europe must act in a manner commensurate to the United States. "Europe buys oil from Russia." Trump told reporters that he didn't want Europe to buy oil. "I don't want them to buy oil," Trump told reporters on Sunday. Investors will also be watching the U.S. and China trade talks that began in Madrid on Sunday, amid Washington's demand that its allies impose tariffs on imports of Chinese oil due to its purchase by China. The Federal Reserve will likely cut interest rates at its meeting on September 16-17. However, last week's softer data regarding job creation and inflation raised concerns over the economic growth of the U.S. (Reporting and editing by Muralikumar Anantharaman; Florence Tan is the reporter)
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Trump's visit to Britain will see the signing of a nuclear power agreement between the US and Britain
The British government announced that during Donald Trump's visit to the United States this week, Britain and the United States would sign an agreement to boost nuclear power together, which will help secure funding for new plants. The British government has been pushing to expand the use of nuclear energy in recent months. It has pledged to invest 19 billion dollars in a new Sizewell C plant and is advancing plans to have a Rolls-Royce division build Britain's first small-modular reactors. Trump will arrive in Britain on Tuesday for a 2-day visit, where he and Keir starmer, the Prime Minister of Britain, will announce their nuclear power partnership. The collaboration aims at accelerating new projects and investment, including plans that are expected to be announced from U.S. Nuclear reactor company X-Energy (and Britain's Centrica) to build up 12 advanced modular nuclear reactors in Northeast England. The statement also said that a 15 billion-pound project, powered by SMRs, to build advanced data centres in central England, at the former Cottam Coal-fired Power Station, was set to be announced soon by the U.S. firm Holtec International and France's EDF, along with real estate partner Tritax. Starmer stated on Monday that "these major commitments put us on a course for a golden age in nuclear power, which will reduce household bills over the long term." When Trump and Starmer met in Scotland at the U.S. President's golf club in July, they discussed working together more closely on SMRs. In a statement, U.S. Energy Sec. Chris Wright stated that "Today's deals will create a framework for commercial access both in the U.S.A. and UK". The new tie-up covers nuclear regulation. If a reactor passes safety tests in one country then the other can use those findings to support their own checks. This will reduce the licensing time from three to four to two years. Chris O'Shea, Group CEO of Centrica, commented on the new partnership with X-Energy. He said that it would create a low-carbon, resilient energy system. J. Clay Sell, CEO of X-Energy said Hartlepool is the best place to scale up its technology in Britain, given its skilled workforce and local service. Simone Rossi CEO of EDF UK said that the plan will benefit energy security. Holtec CEO Kris Singh stated that the plan will create thousands of jobs in Michigan by leveraging the lessons learned from the Palisades Project in Michigan. Rolls-Royce announced that it has entered the U.S. regulation process for its SMR. This could lead to new jobs and investments in the U.S. Urenco, a UK-based company, is expected to announce a deal to supply uranium of varying levels of enrichment to the U.S. ($1 = 0.7377 pound) (Reporting and editing by Helen Popper; Sarah Young)
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Australia faces cascading climate risks, government report says
A government climate report released on Monday said that Australia would experience extreme climate events more often - and sometimes simultaneously. This will put severe strain on the health and emergency services as well as critical infrastructure, primary industries and other sectors. The National Climate Risk Assessment Report warned that no Australian community would be immune to climate risks, which will cascade, compound and occur simultaneously. In a recent statement, Energy Minister Chris Bowen stated that "while we cannot avoid climate impacts any longer, every action taken today to achieve net zero by the year 2050 will help us avoid the worst effects on Australian businesses and communities." Bowen noted that the report is the first comprehensive assessment on the risks of climate change in Australia. It shows that the northern part of the country, remote areas and the outer suburbs of large cities are particularly vulnerable. Bowen stated that "Australians already live with the effects of climate change but it is clear that every degree of warming prevented now will help future generation avoid the worst impact in years to come." Bowen also announced a national adaptation plan, which would guide Australia's responses to the findings of the report. Bowen said that the plan would provide a framework to help federal, state, and local governments better coordinate their actions. Bowen stated that the government will announce the next step of its plans soon to reduce carbon emissions, and set an "ambitious and achievable target" for 2035. Since its election in 2022 the center-left Labor Government has invested A$3.6 billion (2.39 billion dollars) into climate-adaptation programs. It aims to reduce carbon emissions by 43 percent by 2030, and achieve net-zero emission levels by 2050. Clean energy advocates considered the previous conservative government to be a global laggard in its emission policies. Reporting by Peter Hobson and Renju José in Canberra; editing by Jamie Freed.
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Iraq signs joint operating agreement with France TotalEnergies and QatarEnergy LNG
The Iraqi Prime Minister's Office announced on Sunday that the Iraqi oil ministry had signed a joint operating agreement with France TotalEnergies and QatarEnergy LNG, as well as Iraq's Basra Oil Company. This deal relates to the operation of Artawi Oilfield as part of Gas Growth Integrated Project. The GGIP is an initiative by QatarEnergy and TotalEnergies in collaboration with Basra Oil Company. It aims to improve Iraq’s electricity supply. The GGIP also includes renewable energy project. QatarEnergy released a statement shortly afterwards, stating that the CEO of the company and State Minister for Energy Saad al-Kaabi had met with Iraqi Prime Minster Mohammed Shia al-Sudani on Sunday and TotalEnergies' CEO Patrick Pouyanne to announce the beginning of construction of phase two of the Artawi Oil Field Development Project and the Common Seawater Supply Project. According to a Qatari press release, the CSSP will process and transport up to 5 million barrels per day of seawater to the main oilfields in southern Iraq. TotalEnergies and ENKA Construction, a Turkish company, signed a separate deal to build a central oil-and-gas processing facility in Iraq. The facility will have a daily capacity of 210,000 barrels and 163 millions standard cubic feet. TotalEnergies signed a deal with China's Petroleum Engineering & Construction Corp to build a plant for gas processing in southern Iraq. The plant will have a capacity of 600,000,000 standard cubic feet/day. The French company has also signed a contract with Hyundai Engineering and Construction of South Korea to build a seawater-treatment plant in southern Iraq, with a capacity of 7.5 millions barrels per day. Sudani made a statement at the event to welcome the increase in foreign investment.
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Ukraine is considering limiting mobile services to counter Russian drones
Andriy Hanotov, the chief of the general staff of Ukraine, was quoted on Sunday as saying that Ukraine could intentionally reduce the quality mobile communications when Russian drones attack to prevent the networks from being used to coordinate attacks. In the last few months, Russia, three and a half year into the conflict, has intensified drone attacks against Ukraine, improving its technology and increasing drone deployments to maximize damage to strategic targets. Hnatov said to Ukrainian online video channel Novyny Live that the issue is not one of a disruption in mobile communications but a limitation on communication quality, such as a ban on 4G or 5G. He added: "So the modems that they use on their unmanned aircraft vehicles can't access the internet provided by our communication operators." Local media reports suggest that it makes sense to shut down mobile high-speed internet in order to combat drones with cameras which transmit images, and need a 4G connection for operation. During the war, Russia ordered frequent mobile internet shutdowns in order to stop Ukrainian drone attacks. (Reporting and editing by Helen Popper; Pavel Polityuk)
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U.N. condemns reported Haitian massacre that killed more than 40 people
The Secretary-General of the United Nations condemned Saturday an attack in which armed gangs killed at least forty people in a village of fishermen north of Haiti's Capital. Local media in Haiti reported widely that the attack occurred on Thursday night in Labodrie. This is another sign that gang violence has escalated outside of the capital. The United Nations released a statement saying that the Secretary-General was alarmed at the level of violence in Haiti. He urged the Haitian authorities "to ensure perpetrators of all human rights violations and abuses are brought to trial." A spokesperson from the National Police refused to comment on these alleged murders. Local media reported in Haiti that gangs had set Labodrie ablaze after the death of a local leader by the name Vladimir. He was a part of a gang coalition known as Viv Ansanm, which the U.S. designated a terrorist group in May. The U.S. State Department stated that the Viv Ansanm Alliance is one of the main causes of violence and instability in Haiti. The alliance's members have taken over large areas of Port-au-Prince, and the surrounding area. (Reporting and editing by David Gregorio; Emily Green, Harold Isaac)
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Governor of Bashkortostan, Russia says oil company will continue production after drone attack
Radiy Khabirov, the regional governor of Bashkortostan in Russia, said that a company producing oil will continue to produce despite an attack by drone on Saturday. Ukraine intensified its attacks on Russian energy infrastructure to weaken Moscow's military capability, while peace negotiations are still stuck. The attack caused a fire to break out at an oil refinery operated by Bashneft. Rosneft is Russia's biggest oil producer. Bashneft operates four major oil and petrochemical refineries in the area. Khabirov didn't specify the facility that was targeted. Both drones that were downed fell onto the property of the company. In the first instance, a small flame broke out and was quickly put out. In the second instance, the supply was cut off of technical water," Khabirov stated on Telegram. He said that the plant will continue to function normally and there will be no production reductions or operational stops. In his statement, he did not mention Ukraine. Unverified footage circulated on local Telegram channels, showing an object flying in the facility followed by a fireball. Ufa is approximately 1,400 km (870 miles), or roughly, from the Ukrainian border. Reporting by Lucy Papachristou Editing and Peter Graff
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US Energy Council Chief: Future Offshore Wind Projects Unlikely
U.S. Interior Secretary and Energy Council Chief Doug Burgum has said that it is not likely that there will be future offshore wind projects built in the country under the current Trump administration.During the Gastech conference in Milan, Burgum said the renewable power from offshore wind is ‘just too expensive and not reliable enough’.“We are taking a deep look. There are five projects that are under construction and we’re taking a look at each of those,” Burgum said.When it comes to the solar power, and future projects, Burgum noted that for such projects, solar panels will have be produced by the U.S. itself,He also said during the Gastech conference in Milan that if there was to be a future for solar power in the United States, panels have to be made by the U.S. itself or its allies, and not China, due to reported ‘kill switches’ installed in the equipment supplied by the country.
Brazilian meatpacker JBS states net-zero emissions promise was 'never a guarantee'
The world's largest meatpacker, JBS, became in 2021 the very first of its peers to devote to cutting or balancing out all its emissions by 2040, and to ending prohibited deforestation throughout its long supply chain that starts in the heart of the Brazilian Amazon.
It used terms such as dedication and pledge, and a. slogan that anything less is not an alternative, to explain its. plan on calls with financiers about a sustainable bond issue and. in marketing materials, consisting of for its beef.
Nearly four years later on, Jason Weller, worldwide chief. sustainability officer at the business in which the Batista. family is the biggest investor, informed Reuters in an unusual interview. that its emissions goal was simply an aspiration.
It was never ever a promise that JBS was going to make this. occur, Weller said about the net-zero emissions pledge.
He also stated JBS can not manage how farms. operate, although they are motivating voluntary change. The. business had pledged in 2021 to end unlawful Amazon logging. by its livestock suppliers by 2025.
In a written statement to Reuters after the interview, JBS. said: Our climate aspirations have actually not altered. Any assertion. otherwise is completely false.
Reuters found that investors have achieved little in holding. JBS to its promises in the last five years, with no investor. proposals being put forward about the environment, couple of ballot. versus the Batistas on any problem and barely any concerns about. sustainability on earnings calls. Earnings are skyrocketing on strong meat need, assisting drive JBS'. Sao Paulo-listed stock last month to a record high. Logging by livestock farmers is pushing the Amazon closer to. a tipping point at which the world's biggest rainforest will. gradually stop locking away climate-warming co2.
Brazilian cattle ranchers are responsible for 80% of present. Amazon logging, according to scientists.
The trouble of decreasing the ecological damage related. to JBS and other farming business could weaken President. Luiz Inacio Lula da Silva as he prepares to host global climate. talks in November. Oil majors Shell and BP are also among international business to have. softened their environment promises.
There are far too couple of investors utilizing their shareholder. impact to engage with this concern, stated Vemund Olsen, a. senior analyst for sustainable financial investments at Norway-based. Storebrand Possession Management, which sold its JBS stock in 2017.
It's a problem to which the whole market needs to discover. typical solutions, and which also requires improved regulation. and enforcement of legislation in nations like Brazil.. In October, Brazil's environmental protection agency fined. cattle ranches and meatpackers, including JBS, for raising or purchasing. livestock on unlawfully deforested Amazon land.
SUPPLY CHAIN DIFFICULTY
Ecological activists have actually calculated that 97% of JBS'. emissions originate from greenhouse gases launched through. logging, biodiversity loss and pollution.
In emissions accounting, these are called emissions from. modifications in land usage. JBS has actually called these computations flawed.
While JBS reports indirect emissions throughout its supply. chain, it leaves out emissions connected to modifications in land usage.
There is not an approved format today on how to determine. land-use-change emissions for which we have self-confidence, Weller. stated. JBS rather focuses on emissions from its own operations,. consisting of slaughterhouses.
Other global business, including packaged food business Mars. and grain traders Archer Daniels Midland and Bunge, have actually started. divulging change-of-land-use emissions.
We do not have the capability to mandate or require a modification on. farms, nor do we have the capability to mandate and alter how our. clients use our products, Weller said.
Because of these limits, he said JBS had absolutely no operational,. contractual or legal control of its supply chain.
The executive, however, added that regardless of not having any. mandate, we're acting upon our supply chain, investing, and. driving genuine modification.
LITTLE PRESSURE
Morningstar Sustainalytics, an independent sustainability. ratings firm, places JBS in the 95th percentile among the. companies it evaluates, with a severe-risk score connected to. its environmental efficiency.
Reuters found in interviews with investors and reviews of. company filings that the fast-growing company faced little bit. pressure even as evidence installed that it was on track to miss. sustainability targets. The business's 20 biggest financiers decreased demands to discuss. the business even as demands from European companies to stop. logging mounted.
Morningstar information revealed that 17 funds identified as. sustainable hold JBS stock. All decreased to discuss their. engagement with the company or their investment reasoning, or. did not react to requests for remark.
Weller said JBS is committed to improving transparency and. engagement with investors on sustainability.
The ability of personal financiers to affect the business is. already restricted as the Batistas hold practically half of the. company's stock. Another 21% is owned by Brazilian advancement. bank BNDES, which has sided with management in votes.
Non-public advice to investors in 2015 from proxy consultant. Glass Lewis showed JBS scored low on climate threat mitigation and. board accountability, while proxy consultant ISS likewise raised. concerns over management and egregious governance practices in. the context of corruption.. During the broad anti-corruption investigation referred to as. Operation Automobile Wash, which began in 2014 and included companies. throughout Latin America, a court banned siblings Wesley and Joesley. Batista from holding management positions.
It came after they confessed bribing approximately 2,000. Brazilian regulators, government authorities and politicians,. including a previous president, over a span of ten years.
Last April, the Batista brothers rejoined JBS's board. following an investor vote.
(source: Reuters)