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The price of oil continues to rise on fears about supply and trade wars.
The price of oil rose slightly on Tuesday, after U.S. president Donald Trump threatened to impose secondary duties on Russian crude as well as attack Iran. However, concerns about the impact of trade wars on global economic growth limited gains. Brent futures rose by 16 cents or 0.2% to $74.93 a bar at 0330 GMT. U.S. West Texas intermediate crude futures climbed by 13 cents or 0.2% to $71.61. A day earlier, the contracts had settled at a five-week high. Market participants are pricing in the risk of tighter oil supply due to U.S. threats to impose secondary tariffs on Russian oil and Iranian oil, said Yeap Jul Rong, IG's market strategist. Yeap said that the broader themes are still concerns about upcoming tariffs weighing down on global demand as well as prospects for increased supply from OPEC+. In March, a poll of 49 economists & analysts predicted that oil prices will remain under pressure due to U.S. Tariffs and slowdowns in India & China while OPEC+ increases production. Fuel demand could be affected by Trump's threats, but it may not be as severe. After Trump's threats initially increased prices on Monday traders said they saw the president's warnings towards Russia as at least a bluff. Trump told NBC News on Sunday that he is very angry with Russian president Vladimir Putin, and will impose secondary tariffs between 25% and 50% on Russian oil purchasers Moscow tries block efforts to end war in Ukraine. The tariffs on oil buyers from Russia would disrupt the global oil supply and hurt Moscow’s largest customers, China, and India. Trump threatened Iran, too, with bombings and tariffs similar to those he had imposed on the United States if it did not agree with Washington over its nuclear program. "For the time being, it seems to be a threat for Russia and Iran. If it happens, the market will be exposed to a lot of upside risks, given the large volumes of oil exported by both countries. The American Petroleum Institute, a U.S. industry association, will release its weekly inventory figures on Tuesday. Official statistics from the Energy Information Administration are expected on Wednesday. Five analysts interviewed by estimated that U.S. crude stocks fell by an average of 2.1 million barrels during the week ending March 28. A weaker dollar also helped to keep the market afloat on Tuesday. The weaker dollar makes oil cheaper for those who hold other currencies. (Reporting from Jeslyn Lerh in Singapore, Additional reporting by Laila K. Kearney in New York and Editing by Sonali P. Paul and Kim Coghill.
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Gold reaches all-time highs as Trump's tariffs plans cause inflation fears
The gold price reached a new record high on Tuesday as investors sought safe havens amid fears that President Donald Trump’s tariffs could fuel inflationary pressures or impede the economy. As of 0310 GMT spot gold was up 0.6% to $3,142.83 per ounce after reaching an all-time session high of $3145.38. U.S. Gold Futures increased 0.7% to $3171.80. The previous session saw bullion record its strongest quarter in precious metals' history, with one of the biggest upswings ever. "The anticipation of April 2 U.S. mutual tariffs has led the market participants to take a defensive stance. Some de-risk and turn to safe-haven, gold to hedge against impending volatility in portfolios," IG Market Strategist Yeap JunRong said. While technical indicators indicate overextension, the uncertainty around tariffs will likely sustain gold's momentum for the moment, with buyers apparently eyeing a retest at the $3,200 mark next. Trump, who views tariffs as an effective way to protect the U.S. economy from unfair international competition, promised on Wednesday that he would unveil a massive tariff program, which he called "Liberation Day". He will announce reciprocal tariffs that include all countries. The markets are also closely watching the auto tariffs that will come into effect on April 3rd. Bullion is a good hedge against economic and geopolitical instability. It thrives when interest rates are low. John Williams, the New York Federal Reserve president, said that keeping interest rates at their current levels "for a while" would allow officials to analyze data and determine what to do next. This week, U.S. statistics include the ADP Employment Report on Wednesday, and the Non-Farm Payrolls report on the Friday. These reports could give insight into the Fed’s rate-cutting trajectory. Silver spot rose 0.2%, to $34.13, platinum remained flat at $992.70 and palladium rose 0.8%, to $990.34. (Reporting and editing by Anjana Anil in Bengaluru, Anushree mukherjee from Bengaluru)
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Netherlands Looks Into Reintroducing OW Subsidies to Encourage Bidders
The Dutch government is looking to reintroduce subsidies in its tenders for offshore wind farms, as prospective bidders are backing out of the current "zero subsidy" model.The Netherlands has managed to attract builders for its offshore wind farms without offering subsidies on electricity prices since 2017, but interest has waned due to rising construction costs and uncertainty over power prices.Interest for the upcoming tender for three sites in the North Sea is "very low", the Dutch climate ministry said on Monday.Energy firms Eneco and Orsted have already said they will not join the tender in September, as they see no viable business case without subsidies."It is a real difference with the situation of the past three years and gives enough reason for us to see if we can make changes," ministry spokesperson Pieter ten Bruggencate said about the lack of potential bidders."Market circumstances have changed significantly, we are looking for ways to offer bidders more comfort and security."Any changes for the upcoming tender for the three 1-gigawatt (GW) sites will remain relatively small, he said without giving further details.For the longer term, the government is looking at so-called "contracts for difference", which offer a subsidy to companies when electricity prices are low while the government benefits when prices are high.Other forms of price guarantees could also be considered, Ten Bruggencate said.Climate minister Sophie Hermans is expected to present detailed plans by mid-April.The Netherlands last year pushed back plans to increase capacity from 4.7 GW to 21 GW to the end of 2032 instead of 2030, citing costs, supply chain difficulties and "challenges in timely decision-making".(Reuters - Reporting by Bart Meijer; Editing by Vijay Kishore)
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US EPA closes its museum, says administrator
U.S. Environmental Protection Agency administrator Lee Zeldin announced on Monday that the EPA would close a one room museum in the agency's Washington headquarters. He said the museum cost $4 million to construct and $600,000.000 to run each year. The EPA administrator stated that the museum had attracted less than 2,000 people since its opening last year. He called it "another wasteful example" of the Democratic administration of former President Joe Biden. The Biden Administration spent $4 million in tax dollars to build a museum that tells a selective history of the EPA. The museum costs $600K a year to run, even though there were only 1,909 visitors in the past 9 months. Zeldin announced on X that "Today we're closing it". Since taking office in January, Donald Trump, the Republican president, has tried to cut costs, and has gutted many federal agencies and programs. This resulted in the demise of diversity, equality and inclusion initiatives, and the firing of tens and thousands of federal employees. Trump also attacked museums and cultural institutions, becoming chairman of the John F. Kennedy Center for the Performing Arts. He issued an executive order accusing the Smithsonian Institution – the vast museum-research complex that is a premier exhibit space for U.S. culture and history – of spreading 'anti American ideology'.
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Iron ore prices rise on China's demand, but fears of a trade war curb gains
Iron ore prices rose on Tuesday due to a growing demand in China, the world's largest steel-making consumer. However, trade war fears and upcoming U.S. Tariffs limited the gains. As of 0240 GMT, the most traded May iron ore contract at China's Dalian Commodity Exchange was up 0.39% to 780.5 Yuan ($107.47). On the Singapore Exchange, the benchmark May ore was trading at $101.5 per ton. This is a 0.51% increase. Chinese consultancy Mysteel said that a further increase in hot metal production at Chinese steelmakers helped to support the price of iron ore imported last week. Everbright Futures, a broker, reported that hot metal production continued to rise in March by 10,200 tonnes to 2,3728 million tones month-on-month. The daily consumption of ore imported also increased by 13,200 tones. Iron ore demand is usually gauged by the hot metal production. Mysteel said that the recovery of downstream demand will determine whether ore prices can remain strong. A private sector survey revealed on Tuesday that China's factory output expanded at the fastest rate in four months during March. This was boosted by stronger export orders and a higher level of demand. Chinese stocks fell despite this on Monday, as concerns about a trade war heightened and weighed on sentiment. Donald Trump, the U.S. president, said on Sunday that he will announce reciprocal tariffs this week for all nations and not just 10 or 15 countries with large trade imbalances. Trump has promised that he will unveil a massive tariff policy on April 2. Coking coal and coke, the other steelmaking ingredients traded in a mixed manner on the DCE. The Shanghai Futures Exchange has seen a decline in most steel benchmarks. Rebar fell 0.44%. Hot-rolled coils slipped 0.15%. Wire rod fell 0.5%. Stainless steel rose 0.6%.
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Oil prices drop on fears of a trade war, despite Russian supply threats
The oil prices fell slightly on Tuesday, as concerns over the impact of a global trade war on growth trumped fears about the supply being affected by threats from U.S. president Donald Trump to impose second-tier tariffs on Russian crude or bomb Iran. Brent futures fell 10 cents or 0.1% to $74.67 per barrel at 0013 GMT. U.S. West Texas intermediate crude futures dropped 11 cents or 0.1% to settle at $71.37 after reaching five-week highs the day before. In March, a poll of 49 economists & analysts predicted that oil prices will remain under pressure due to U.S. Tariffs and slowdowns in India & China while OPEC+ increases production. A slower global growth could reduce fuel demand and offset any decrease in supply caused by Trump's threats of bombing Iran and imposing secondary tariffs on Russian oil buyers. After Trump's threats initially increased prices on Monday traders said they saw the president's warnings towards Russia at least as a bluff. Trump told NBC News on Sunday that he is very angry with Russian president Vladimir Putin, and will impose secondary tariffs between 25% and 50% on Russian oil purchasers Moscow tries to stop efforts to end war in Ukraine. The tariffs would hurt the biggest oil customers of Moscow, China and India, and disrupt global oil supply. Trump threatened Iran, too, with bombings and tariffs similar to those he had imposed on the United States if it did not agree with Washington over its nuclear program. Tuesday, the American Petroleum Institute will release its weekly inventory figures. These data will be closely watched by the market as they are released before official statistics from Energy Information Administration. Five analysts interviewed by estimated that U.S. crude stocks fell by an average of 2.1 million barrels during the week ending March 28.
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Two Michigan business groups warn that Trump's auto tariffs could cause autoworker hardship.
Two Michigan business groups have urged President Donald Trump not to proceed with plans to impose 25% tariffs on imported cars and parts. They said that this would result in dramatic price increases, disruptions to the supply chain, and pain for Michigan's auto-heavy economy. The Detroit Regional Chamber, along with MichAuto, a mobility and automotive association, wrote in a joint letter that the increased costs could cause disruptions throughout the supply chain, and would, most importantly, result in significant increases for American consumers. The pain of working class citizens in Michigan will be severe. About?$300 Billion? is contributed by the auto industry. Detroit Regional Chamber estimates that the auto sector contributes about?$300 billion annually to Michigan's economic growth. Trump announced last week that he would follow through with his threats to impose new tariffs on imported vehicles. He said a 25% tax on cars not made in the U.S. will be imposed on April 3, on top of existing duties. He may also announce new auto duties as part of the sweeping new tariffs that he will be announcing on Wednesday. The groups claimed that the tariffs would harm the state's auto industry and economy. They noted there were more than 1,000 automotive manufacturers based in Michigan. The letter continued, "The tariff policies will increase prices and drive down consumer demand. This will lower the profitability of the companies. It will directly affect the hardworking Americans that assemble these iconic vehicles." Some owners may decide to keep their old cars longer if the new car price is higher. This could increase used car prices. The letter stated that "these increased vehicle costs would be disproportionately paid by middle-class and working-class families." Kush Desai, White House spokesperson, responded by noting that automakers such as Hyundai had announced new investments in America and arguing that those investments along with Trump's request for a new deduction on interest rates on car loans will "continue to drive historic manufacturing growth and job creation." A group of General Motors, Ford and Toyota representatives, Stellantis, Stellantis, and others, warned that tariffs would increase vehicle costs. Hyundai warned auto dealers that they might need to adjust their prices if tariffs go into effect.
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Greenland strengthens Danish links as it seeks independence
Greenland's new prime minister said on Monday that it will continue to strengthen its relationship with Denmark until the island can become a sovereign country. He noted that the semiautonomous Danish territory eventually wants to be independent. Jens-Frederik Nielsen (33), was sworn-in as Prime Minister of Greenland, Friday. He will lead a coalition government made up of four parties, despite the challenges presented by U.S. president Donald Trump's ambitions for control over the island. Nielsen stated, "We are currently in the Kingdom Denmark and we must continue to strengthen our relationship, our partnership, until we become a sovereign country." He added, "We're building on a strong relationship with Denmark until we become sovereign." He said Greenland was interested in a partnership based on respect for each other with the United States. "Greenland won't ever be part of America... We want trade." We do want to have a strong relationship on national security but in a respectful way. Nielsen stated that "we will never sell ourselves and will never become Americans." Nielsen was asked about the comment made on Friday by U.S. vice president JD Vance that Denmark did not do a good enough job in keeping Greenland secure. "Right Now, we are in the phase of building them up and we need solutions together." Vance, who visited a U.S. base in northern Greenland last Friday, accused Denmark of failing to protect the island. The Danish have controlled Greenland's strategic location since 1721. "We don't wish to be Americans." In the future, we don't want to be Danes either. We want to be independently. Nielsen continued, "But right now, we're part of the kingdom of Denmark. That's what's going on." (Reporting and writing by Tom Little, in Nuuk; editing by Sandra Maler).
Sudan army chief vows to punish RSF and extends control of capital
In a video message released on Saturday, Sudanese Army Chief Abdel Fattah al-Burhan said that he would crush the paramilitary Rapid Support Forces.
He reaffirmed the commitment of the military to restore national unity and stability.
Burhan said that fighters who "repent of the truth" and lay down their weapons, especially those in rebel-held regions, could still receive amnesty if they do so.
On Saturday morning, the army announced that it had taken over a large market in Khartoum’s twin city, Omdurman. The RSF had used the market to launch attacks against civilians during the devastating war of two years ago.
The Sudanese Army has also declared victory in Khartoum over the RSF, claiming to control most of the capital.
The conflict between the RSF and the army has unleashed waves ethnic violence and created the worst humanitarian crisis in the world, according to the United Nations. It also plunged many areas into famine.
In a press release, the army claimed that it had taken control of the market at western Omdurman's Souq Libya after capturing weapons and equipment the RSF left behind when they fled.
Souq Libya, one of Sudan's largest and busiest commercial hubs, is located in the city.
Two large military bases are located in Omdurman. The army has already taken control of most of the city. The army appears to be determined to control the entire capital, consisting of three cities: Khartoum and Omdurman, separated by the branches of the River Nile.
The RSF did not comment on the army's advances in Omdurman where paramilitary groups still control some territory.
The war broke out amid a power battle between the army, RSF and civilians ahead of a planned transfer to civilian rule. The war ravaged Khartoum and forced more than 12,000,000 Sudanese to flee their homes. About half of the 50,000,000 population suffered from acute hunger.
It is difficult to estimate the total number of deaths, but according to a report published last year the death toll could have reached 61,000 people in Khartoum alone during the first 14-months of the conflict.
In recent years, the war in Sudan has caused instability throughout the region. Sudan's neighbours, including Chad, Central African Republic, and South Sudan, have all experienced internal conflicts. Khalid Abdulaziz (Reporting, Menna alaa El-Din, and Mohamed Ezz. Editing by Aidan Lewis & Timothy Heritage).
(source: Reuters)