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Two people killed in New Jersey floods by severe storms near New York City
As severe storms ravaged the New York City region on Monday and Tuesday night, flooding cars and subway stations submerged in New Jersey. Intense rainfall has caused travel disruptions across airports, highways, and railways in the region. According to Mayor Eric Adams, more than 2 inches (5cm) of rain fell in Manhattan's Central Park in just one hour, making it the second-most rainfall in 60 minutes in history. On Monday night, videos showed flooding at several subway stations. One station in Manhattan's West Side had a geyser-like water stream. The subway system, according to officials, was overwhelmed by the rain in a very short time. Rohit Aggarwala said that the antiquated sewer network can only handle about 1.75 inches (4.44cm) of rainfall per hour. This is compared to a rate exceeding 4 inches per hour during the storm. Adams stated, "I don't think I can remember seeing such a level of rainfall before." New Jersey Governor Phil Murphy has declared a state-of-emergency and announced that two people have died in Plainfield after their vehicle was washed away by floodwaters. Murphy, a reporter, said that the victims were discovered in a car submerged. Murphy stated that some locations had experienced flooding for the very first time. The governor blamed climate changes for the increased frequency and intensity extreme weather events. He said, "That's a new reality." Authorities in Westchester County north of the city conducted numerous water rescues, as cars submerged under floodwaters and highways were closed due to flooding. According to the National Weather Service, Nanuet, a suburb in Rockland County near New York City, recorded over 5 inches (12.7cm) of rainfall. (Reporting by Joseph Ax; Editing by Sandra Maler)
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Blackstone and US utility PPL will build gas power stations in a JV partnership
The companies announced on Tuesday that they have formed a joint-venture to build natural gas power stations for data centers, under long-term agreements to provide energy services. Vincent Sorgi, President and CEO of PPL, said in a press release that he was excited to use the expertise PPL and Blackstone Infrastructure have to bring new dispatchable generation to Pennsylvania in order to meet new data center loads. The announcement was made at the Pennsylvania Energy and Innovation Summit, held in Pittsburgh. Government, technology and energy officials announced investments of approximately $90 billion to advance data centers and other aspects in the artificial intelligence boom. The U.S. president Donald Trump was expected in attendance. According to the companies, PPL and Blackstone Infrastructure, which own 51% of the joint venture, will sign long-term agreements for energy services with large data centers companies. There has not yet been any agreement of this nature. The joint venture has engaged in active engagement with landowners and natural gas pipeline companies, as well as turbine manufacturers and secured multiple land parcels for this new generation buildout, according to the announcement.
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Trump's AI and tech summit announces major US investments
On Tuesday, American companies announced a series big-ticket AI investments and energy pledges as part of President Donald Trump's push to maintain the nation's advantage in the booming tech sector. Here are the most important announcements made around the Energy and Innovation Summit, held at Carnegie Mellon University. The summit is expected to bring $90 billion of investments into and around Pennsylvania. Google, owned by Alphabet, has signed a deal worth $3 billion with Brookfield Asset Management to purchase electricity produced from two hydropower plants in Pennsylvania. Google will invest $25 billion over the next two-years in data centers throughout Pennsylvania and its neighboring states, according to a report by Semafor. Jon Gray, the president and chief operating office of Blackstone Asset Management, said at a panel discussion that it plans to invest $25 billion in data centers and energy infrastructures in Pennsylvania. Blackstone also announced a joint venture for power generation with PPL Corp. First Energy is investing $15 billion in expanding power distribution and strengthening grid infrastructure. They will also operate an enhanced grid for 56 Pennsylvania counties. This was announced by the Pennsylvania office of Senator Dave McCormick. Mark Zuckerberg, the chief executive of Meta Platforms, said on Monday that his company will spend hundreds of millions of dollars building several AI data centers. One of these is a data center with a capacity of more than one gigawatt, dubbed Prometheus. It's planned to be built in Ohio. CoreWeave, a cloud infrastructure technology company, plans to invest up to $6 billion in building a new artificial-intelligence data center in Pennsylvania. The company announced this on Tuesday. Senator McCormick’s office announced that Constellation Energy would invest $2.4 billion in upgrading the Limerick Nuclear Power Plant. Energy Capital Partners has announced a plan of $5 billion to build a datacenter at the York II Energy Center. PitchBook's report on Tuesday revealed that AI-related startups have seen a rise in investment, which is a sign of the continued growth of this field, even though venture capital firms struggle to raise funds. Reporting by Raphael Satter, Editing by Chizu nomiyama and Leslie Adler
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Pentagon will continue to work with US rare-earths projects, US Defense official says
A defense official said on Tuesday that the U.S. Department of Defense will continue to work with rare earths firms to ensure a diverse American supply of these critical minerals, which are used throughout the economy. Pentagon signed multi-billion dollar deal last week to become largest shareholder of rare earths producer MP Materials. It also agreed on several financial backstop measures. Defense official stated that the move was made to "share risk" in a vital minerals project. The U.S. Mining sector questioned whether similar investments could be made by the U.S. Military. Official: The Pentagon is "looking forward to continuing to work with companies throughout the (rare earths supply chain) to ensure that DoD, and the nation, have the secure and robust supply chains necessary to protect national and economic security in the future." The official said that the MP deal structure is a "unique" approach by the government in order to "account [for] the difficulties of establishing and maintaining production of rare earth magnets within a market where China controls a large part of the supply chain." Officials said that the Pentagon's investment in MP came through a Cold War law called the Defense Production Act and its Office of Strategic Capital. (Reporting and editing by Chris Reese, Sandra Maler, and Ernest Scheyder)
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Trump expects to meet Starmer during his visit to Scotland
Donald Trump announced on Tuesday that he will meet with British Premier Keir starmer in Aberdeen, Scotland later this month, to finalize a U.S. - British trade agreement. An official at the White House said that Trump will visit his golf properties on Scotland's west coast in late August, recreating his 2016 trip to Scotland during his first presidential run. The official, who spoke on condition of anonymity, said that Trump planned to visit his Turnberry and Aberdeen properties during a trip scheduled to last between July 25-29. When asked by reporters about his trip, Trump replied that he was going to meet Starmer. He and Starmer Deal announced On June 16, on the sidelines the G7 Summit, in Canada, that reaffirmed the quotas for British automobiles. They also eliminated tariffs against the U.K. Aerospace sector. The issue of aluminum and steel remains unresolved. "We will have a meeting, most likely in Aberdeen." Trump said that they would do many different things and refine the deal we have made. Trump visited both courses in 2016 during his successful first term, using the occasion to praise Britain's vote for "Brexit", to leave the European Union. When he visited Turnberry, bagpipers dressed in kilts accompanied him. Turnberry, on the west coast in Scotland, has hosted the Open Championships four times. The last time was in 2009. Trump purchased it in 2014. The Republican President will be a guest of King Charles in Windsor Castle from September 17-19. In June 2019, during Trump's first term, the late Queen Elizabeth welcomed him to Buckingham Palace. He had a private dinner with her and tea with Charles. (Reporting by Steve Holland; editing by Chizu Nomiyama & Leslie Adler).
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Britain abandons its 'taxonomy plan' for green investments
The UK has canceled plans to create a "taxonomy", which would guide companies and investors in determining what constitutes a green investment. This is the latest indication that governments are delaying reporting sustainability requirements for businesses. Taxonomies define criteria for a sustainable activity to assist economies in achieving net zero targets. The taxonomies were created to encourage more investment in green projects, but critics claim they are difficult to follow and not very useful. After determining that the taxonomy was "not the most effective tool for delivering the green transition, and should not be included in our sustainable financial framework," the finance ministry stated it would instead focus on other green policy to drive investments. The decision is made as Europe overhauls its own sustainability reporting regulations for companies to reduce red tape and boost competitiveness. The government stated that its consultation revealed the taxonomy wouldn't deliver "in a reasonable way" its goals of channeling capital, and reducing greenwashing. The UK Sustainable Investment and Finance Association called it "disappointing", that the government concluded that a taxonomy of green investments had no place within the UK's sustainable financial framework. Oscar Warwick Thompson, UKSIF's head of policy and regulation affairs, said: "We want to see rapid delivery of commitments regarding transition plans and sustainability reporting standards." The British government first proposed a taxonomy for the UK in 2020. However, the work was stopped in December 2022 because it was considered a complex task that involved multiple sectors in the economy. Gemma Woodward is the head of responsible investments at Quilter Cheviot. She welcomed the decision and said that the industry already had to deal with other regulations. Virginia Furness, Tommy Reggiori Wilkes and Alexandra Hudson edited the story.
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NOPA US soybean crush in June exceeds expectations with 185.709 millions bushels
According to data released by the National Oilseed Processors Association on Tuesday, the U.S. soy crush exceeded the average trade expectations for June, and reached its highest level ever. Soyoil stock levels dropped to their lowest point in five months. NOPA members, who account for at least 95 percent of soybeans crushed by the United States, crushed 185.709 millions bushels last month. This is down 3.7% compared to the 192.829million bushels crushed in may, but up 5.8% compared to the 175.599million bushels crushed back in June 2024. That was the previous monthly record. According to an average estimate of eight analysts, the crush was predicted to drop to 185.195 millions bushels. Estimates ranged between 182.000 million and 188.000 millions bushels with a median estimate of 185.175million bushels. The June crush exceeded expectations despite the second consecutive monthly decline in daily processing pace which dropped to 6,190 million bushels. According to NOPA, this was a decrease from the 6.220 bushels per day of May. It is also the lowest daily crush rate recorded since September. U.S. crushing capacity has reached record levels due to recent processing plant expansions, new plant openings, and a soaring demand of soyoil. Analysts said that this capacity was underutilized in some cases as the glut of soymeal prevented plants from operating at full speed. As of June 30, soyoil stock levels among NOPA member companies fell to 1.366 bn pounds. This is a decrease of 0.5% compared with the stocks at the end May, which were 1.373 bn pounds. It also represents a 15.8% drop from the stocks in place a year ago of 1.622 bn pounds. Six analysts estimated that stocks would rise by a modest amount to 1.374 trillion pounds. The estimates ranged between 1.275 billion and 1.525 billion pounds with a median estimate of 1.342 million pounds.
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The US Court of Appeals temporarily suspends Argentina's 51% stake in YPF
The U.S. Court of Appeals on Tuesday temporarily suspended an order by a judge that Argentina hand over its 51% share in the oil and gas company YPF as partial satisfaction for a $16.1-billion judgment. The 2nd U.S. The 2nd U.S. The appeals court stated that Argentina had until July 22nd to respond. The dispute arose from Argentina's 2012 acquisition of the YPF stake by Repsol, a Spanish company, without making a bid to Petersen or Eton Park. Both were minority shareholders. Burford Capital is representing these shareholders. Burford Capital has stated that it expects to receive between 35% and 73% respectively of Petersen and Eton Park’s damages. Argentina warned that its economy would be unstable if it sold its majority stake in YPF - the largest energy company in the country. The country was given a deadline of July 14 for the turn-over, but U.S. district judge Loretta Preska agreed to defer enforcement until Argentina could appeal the decision.
China boosts petroleum storage amid soft refinery processing: Russell
The pace at which crude oil flowed into China's stockpiles increased in April as slower refinery processing exceeded a decrease in imports.
An overall of 830,000 barrels per day (bpd) was contributed to China's industrial or strategic stockpiles in April, up from 790,000 bpd in March, according to computations based upon main data.
Over the first four months of the year, China, the world's. greatest crude importer, added 700,000 bpd to storages, a. considerable volume that goes some way to weakening the market. view that oil consumption is robust amid a recovering economy.
China does not reveal the volumes of crude streaming into or. out of strategic and commercial stockpiles, however a price quote can. be made by subtracting the quantity of unrefined processed from the. total of unrefined offered from imports and domestic output.
The total crude readily available to refiners in April was 15.13. million bpd, including imports of 10.88 million bpd and. domestic output of 4.25 million bpd.
The volume of unrefined processed by refiners was 14.3 million. bpd, leaving a surplus of 830,000 bpd to be added to storage. tanks.
For the first 4 months of 2024, the total crude offered. was 15.26 million bpd, while refinery throughput was 14.56. million bpd, leaving a surplus of 700,000 bpd.
Refinery processing dropped 3.3% in April from the exact same. month in 2023, the first annual decrease in 20 months, as large. oil companies performed arranged upkeep, while smaller sized. refiners curbed output since of weak profit margins.
It's most likely that refinery throughput will recuperate in May as. plants increase for the peak summertime need season, although the. circumstance is complicated by robust need for some refined. fuels, such as jet fuel and fuel, but softer intake for. others such as diesel.
The concern for the market then becomes whether any increase in. refining will cause increasing need for crude oil imports, or. whether refiners will select to dip into the stockpiles they. have been developing so far this year.
PRICE ASPECT
Much depends upon oil prices, and recent history suggests that. when international costs increase rapidly, or to levels China's refiners. consider expensive, the result is a pullback in imports, permitting. for the lag of around two months to account for when cargoes are. organized to when they are provided.
April's crude oil imports were the weakest considering that January and. came 2 months after rates beginning rallying greatly from. early February onwards, after members of the OPEC+ group of. exporters extended and deepened output cuts.
Global benchmark Brent crude futures surged from a. low of $76.85 a barrel on Feb. 2 to a current peak of $92.18 on. April 12.
This recommends that price pressures may cap the need for. crude by Chinese refiners, and any gains in volumes are most likely. to be focused in reduced oil from Russia and Iran, whose. exports go through Western sanctions, which effectively. limits the number of readily available purchasers.
The increase in main selling prices (OSPs) to a five-month. high by leading exporter Saudi Arabia for cargoes filling in. June may also curb China's oil demand from the kingdom, with. sources pointing to a decrease of 5.8 million barrels in June. freights from May's 45 million barrels.
China's crude imports rose 2.0% in the very first four months of. the year, according to customs information.
Nevertheless, in barrels each day terms this corresponds to a gain of. just 100,000 bpd.
This is well short of the 710,000 bpd rise in demand that. OPEC+ forecast for China for 2024 as a whole in its latest. monthly report, released on May 14.
There is a difference between imports and general need, as. need can be satisfied from stocks or an increase in domestic. crude output.
While domestic oil production is somewhat greater, increasing. 2.1% in the very first 4 months of 2024, it seems that China is. contributing to inventories at a faster speed up until now this year than it. performed in 2023.
The excess of crude readily available over refinery processing in. the first 4 months of 2024 was 830,000 bpd, compared to. 480,000 bpd for the exact same period last year.
The general image that emerges is that China's oil import. development is modest up until now in 2024, and more of those imports are. heading into storage than they carried out in 2023.
The viewpoints revealed here are those of the author, a writer. .
(source: Reuters)