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Wildfires in western Germany force Germany to evacuate 2,000 people
Local authorities reported that 2,000 people were forced to evacuate their homes on Friday in western Germany after a wildfire near the Belgian border spread into a village. Residents in the village of Gey were asked to evacuate their homes at 4:00 am (0200 GMT), and to go to a help centre that was set up in a nearby village. The?instruction was to only carry essential items, such as identification documents and medicines. Mona Neubaur posted on X that "this forest fire threatens to strike the local community very hard." WDR reported that Mayor Stephan Cranen stated?that despite the fact that the evacuation was complete, the situation still remained critical. The flames are now about 300 metres away from the village. Cranen said that one of the wildfires which are still out of control has spread overnight towards an old munitions depot near the town of Dueren. Firefighters were quoted as saying that there was unexploded World war two munitions in the forest surrounding the town of Dueren because of the hilly terrain. Two German army tanks cleared access routes to the difficult-to-reach forest area, allowing firefighters to reach 300 hectares (740 acre) of?fire. There are large swathes in Germany that are battling dry conditions with high fire risks. Reporting by Friederike Hiene in Berlin and Andi KRANZ in Huertgenwald. Editing by Clarence Fernandez, Sharon Singleton and Sharon Singleton.
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After rally, copper prices fall as demand concerns dominate the conversation
Copper prices fell on Friday but have remained higher so far this week, as analysts wondered if global demand would be able to keep up with the recent price rally. Benchmark three-month copper on the London Metal Exchange fell 0.34% to $14,100.5 per metric ton at 0715 GMT. The red metal will likely gain 0.3% this week. This is the longest weekly streak it has had since 2020, when it gained 5.49%. The Shanghai Futures Exchange's most traded copper contract fell?0.12% to 107 690 yuan (15,970.64) per ton. The economic activity could be boosted by the fact that inflationary pressures are easing and concerns about interest rate hikes are receding. Fastmarkets analyst Andy Farida stated that "demand for base metals appears resilient but it's questionable whether?it will be able to maintain the same strong momentum, given how rapidly asset prices have accelerated and wage growth has been somewhat subdued." According to the CME's FedWatch, interest-rate traders have reduced the probability of the Federal Reserve raising rates during its September meeting from 44% on Friday. The LME's aluminium prices fell by 0.75%, and are expected to finish the week 1.19% lower. The price of the light metal fell by 1.14% on the SHFE. The Middle East's supply recovery prospects eased some of the expected tightness. Norsk Hydro said that the Alunorte refinery in Brazil has started to increase its alumina output after temporarily reducing it. Among LME metals, zinc dipped 0.33%, ?lead dipped 0.24%, nickel lost 0.36% ?and tin dipped 0.07%. The SHFE showed that?zinc fell 0.19%; lead dropped 0.88%; nickel declined 1.32%, and tin barely changed, only increasing by 0.04%.
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U.S. TerraPower and South Korea's SK Innovation Sign preliminary agreement on global SMR Projects
The Industry Ministry in Seoul announced that TerraPower and South Korea’s SK Innovation had signed a preliminary agreement on small modular reactors. This will allow the SK Group affiliate to participate in TerraPower's domestic and international projects. According to the ministry, Bill Gates and Chey Tae Won, Chairman of SK Group, signed the agreement at a Seoul meeting with Industry Minister Kim Jung Kwan. According to the ministry, the deal allows SK Innovation (the parent company of South 'Korea's biggest oil refiner) to participate in developing 'TerraPower's SMR project in the United States as well as overseas. The ministry did not disclose the financial terms of any investment or its scope. TerraPower is a company backed by Gates that has developed its sodium-cooled Natrium project in Kemmerer Wyoming. The company has received a permit for construction from the U.S. Nuclear Regulatory Commission and plans to begin commercial operations in 2031. South Korea's?Doosan?Energy said on Friday that it had won a deal with TerraPower for the manufacture of key components, including the reactor vessel, internal structures, and support structures. The?ministry stated that South Korean companies such as SK and HD Hyundai made financial investments?in TerraPower, and also seek roles?in the equipment supply, operation and construction of its U.S. projects and overseas. According to the ministry, global interest in SMRs is increasing due to growing electricity demand from AI infrastructure and data centres. This creates opportunities for Korean suppliers who want access to emerging overseas supply chains. (Reporting and editing by Ed Davies.)
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Nigeria's Dangote refining plans retail-focused IPO; no foreign listing yet
The CEO of Dangote Petroleum Refinery said that the planned October IPO could 'become Africa’s largest' and would allow Nigerians to share 'in its growth. Sources familiar with the issue told the Nigerian Securities and Exchange Commission this month that the refinery had submitted a?application'for a $5 billion IPO, but the size of the IPO is still unknown. David Bird, CEO of David Bird, said in an interview that "we really want to drive the participation." "The IPO's mandate was to be a people's IPO." Bird stated that the company wanted to have at least three years' worth of financial and production performance under its belt before it pursued an overseas listing. This would?support a higher valuation. London was mentioned as a potential venue. Bird refused to comment on?the size of the IPO or refinery's value. Source said that the company would be able to take into consideration the $2.5 billion raised by the company in July's private placement which valued the refinery around $40 billion. Strong INTEREST Aliko Dangote is Africa's richest person. His refinery has benefited from the disruption caused by the Iran War, selling jet-fuel across Africa and to western Europe, as buyers looked for alternative supplies. Bird reported that it became Europe's biggest supplier of jet-fuel in June and Juli. He said that the IPO was on track and that investor interest was high during pre-marketing and July's private placement. Africa Finance Corporation announced on Thursday that it was the leader of a group strategic investors for the private placement. The deal, they said, had been 3.7 times oversubscribed and received strong demand from African institutional investors and international investors. Bird said that the refinery was a better option than U.S. assets due to its strong domestic demand, access to local crude oil supplies and integrated operations. EXPANSION PLANNED Bird confirmed that the company aims at doubling its refining capacity from 1.4 million barrels per day to 1.4 millions barrels per day in three years. This will be funded partially through debt and the IPO. He claimed that the expansion would be much cheaper than the roughly $20 billion originally spent on a refinery. Bird stated that Africa is structurally lacking in refined fuels and petrochemicals. This leaves significant room for expansion. The refinery provides all the jet fuel and most of the gasoline that Nigeria needs. Duncan Miriri contributed additional reporting from Nairobi. (Editing by Silvia Alassi and Mark Potter).
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Asian refiners continue to buy US crude despite the blockade of Hormuz, traders claim
Four Asian refiners purchased U.S. crude oil this week as the Strait?Hormuz was effectively closed. Refiners were looking for alternative supplies to be delivered later this year. The shipping traffic in the 'Strait of Hormuz' fell below average this month at the end of last week, due to the competing claims of Iran and the United States over the control of the waterway. Strong refining margins and tight fuel supplies, coupled with the lack of immediate prospects of free?shipping across the strait have encouraged refiners to secure crude stocks for the coming months beyond the Gulf. Shell's GS Caltex in South Korea purchased two million barrels for delivery in November. The crude was "priced" at around $13-14 a barrel more than the benchmark October Dubai price, traders reported. Eneos Corp., Japan's largest refiner, bought 2 million barrels West Texas Intermediate crude (WTI) from Trafigura. The price was $10 higher than the October WTI. CPC Corp, Taiwan's state owned company, purchased 2 million barrels WTI through a tender for a premium between $8 and $9 per barrel over Dated Brent. CPC Corp. also bought crude oil from West Africa via the tender. Companies rarely comment on business deals. Before the Iran War, Asia got more than half its crude oil supply from the Middle East. According to data from ship tracking firm Kpler, the region imported 2,35 million barrels of crude oil per day from the U.S. in July. This was a record. The state-run refineries in India, Hindustan Petroleum Corp. and Mangalore Refinery & Petrochemicals Ltd. also released tenders this week to purchase crude. Siyi Liu reported from Singapore and Philippa Fletcher edited the story.
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Taiwan's parliament approves three referendums including one on the caning of sex-criminals
Taiwan's opposition-controlled parliament voted on Friday to hold three referendums, including one ?on caning criminals convicted of sex crimes and ?fraud, and another to support nuclear power, which could be held ?later this year. Taiwan holds referendums?every few year,?generally?after?the citizens sign up for specific proposals. However, lawmakers can also approve these, as in the case of these three votes by lawmakers. The measures must be approved formally by the electoral commission, which will determine the date of the vote. There is no guarantee they will become law if they are passed. A relatively high approval threshold has also been a problem in previous referendums. Taiwan will hold local elections on November 28 for county chiefs, city mayors and other officials. The three referendums may also be held at the same time. The Kuomintang, Taiwan's largest opposition party, proposed both the canning referendum and the nuclear referendum. The third referendum, which was proposed by the tiny Taiwan People's Party, (TPP), that generally votes with KMT, concerns the use of traffic fines for road safety improvement. The ruling Democratic Progressive Party has voted against all three referendums. The opposition believes that the key to a successful referendum is the turnout, and wants them held on the same date as local elections. A referendum must pass if at least 25 percent of the roughly 20 million eligible voters on the island vote in favor. There must be at the very least 5 million "yes' votes and they must outnumber "no' votes. In August last year, an opposition-backed stand-alone referendum to reopen Taiwan's final nuclear plant failed because it didn't reach the legal threshold for validity. The Cabinet has three months in theory to submit relevant legislation to the parliament for approval if referendums are successful. Voters in?2018 approved referendums opposing marriage equality. The same-sex marriage was legalised in the year following because Parliament voted to enforce an earlier court ruling that blocking it would be unconstitutional. Ben Blanchard reports.
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France evacuates 525 people as another wildfire strikes southwest pine forests
French authorities evacuated 525 villages after a wildfire broke out in pine woods near an area that was already devastated by major fires this summer. Gilles Clavreul, regional official, told reporters on Friday that the fire had spread within two kilometers (1.2 miles) from the center of Luglon. He said that the situation was "unfavorable" and added?that six aircraft were sent to help. The police have closed the road to the north and the south, putting a stop to traffic in the village. Luglon lies about 100 km (62 mi) south of Arcachon Bay. Two major fires destroyed more than 124,000 acres of land, forcing 220,000 people to evacuate in July. In France's unheard of wildfire season, temperatures will soar to 36° Celsius (97° Fahrenheit) this Friday afternoon. The area burned so far is greater than the previous record of?2022. The Landes region is surrounded by pine forests that are highly flammable once they dry. (Reporting and writing by Stephanie Lecocq, Jean-Stephane Brosse, Inti Landauro; editing by Clarence Fernandez).
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Wildfires in Germany force the evacuation of 1,800 people after reaching a border village
In the early hours of Friday morning, authorities in Germany ordered about 1,800 residents to leave their homes after a wildfire spread from the west to a village near the Belgian border. In a statement issued at 4 am (0200 GMT), officials from the municipality of Strass said that residents should immediately leave the village?of Gey and head to the assistance centre set up in the nearby village Strass. The 'only essentials' were identification documents, medicines and essential belongings. Authorities said that a wildfire in the nearby woods affected about 25 hectares (62 acre) and triggered a major response. The B399 road through the area, which was closed by emergency services and firefighters, was shut down. Weather officials warn that large swathes of Germany face dry conditions with high fire risks. A wetter winter, which fueled growth in vegetation, dried up during rolling heatwaves. (Writing and editing by Clarence Fernandez; Friederike Heine)
Oil prices fall as markets assess return of supply after US-Iran peace agreement
Oil prices continued to fall on Tuesday as markets weighed the prospects of a resumption of oil supply through the 'Strait of Hormuz, against the shaky market conditions and the lack of information from the preliminary agreement to end the Iran War.
Brent crude futures were down 25 cents (0.3%), or $82.92 per barrel, and U.S. West Texas Intermediate was down 9 cents (0.1%), or $80.66 per barrel, by 0436 GMT.
Oil prices dropped nearly 5% on Monday to their lowest level since March 4 after U.S. president Donald Trump announced that a memorandum was signed for the U.S. and Israel to end its war with Iran. Full details, however, have not yet been released.
Before the conflict, the Strait of Hormuz was a major oil transport route that carried a fifth of the world's supply of oil.
Other factors are weighing on the physical market price. Some analysts predict a return of supply via the Strait in a short time.
Morgan Stanley analysts stated in a note to clients that "it will likely take several weeks" for the tanker flow of oil to be restored.
We expect to see 50% of the production returned by September and 80% by December. This is a little faster than previously.
They added that a wide range of indicators indicated weakness on the physical oil market in recent weeks.
In the short-term (i.e. Next weeks, they don't seem to be ending just yet."
China's crude oil imports fell 29% in May, to the lowest level in eight years. This is a continuation of a dramatic drop for the world's largest importer. Its liftings from Saudi Arabia are expected to fall again in July.
Early indications suggest that the U.S. and Iran deal will reopen blockaded Strait of Hormuz, extend a 60-day ceasefire, and allow negotiators the opportunity to address difficult?issues like the future of Iran’s nuclear program.
The Iranian president Masoud Pezeshkian said on Monday that the U.S. and Iran pact was an "important step" towards stopping the fighting, but warned that a final agreement to create a lasting ceasefire "has not yet taken shape".
The overall price decline is limited, but?until full details are revealed and a permanent truce has not been reached.
Suvro Sarkar is the head of DBS Bank’s energy research. He said that the first phase of the deal, which included the signing in Geneva of a 60-day ceasefire extension, was simple, and would buy time, as well as push the “nuclear tin”?down to the future.
The second phase is the reopening of Strait of Hormuz in phases and the gradual winding down of the US naval blocksade against Iranian ports and ships. This will be closely watched by the markets because of its physical impact.
"Anything less than a?simultaneous?unlock will result in renewed volatility of oil prices," said?Sarkar. It will be interesting to see what happens over the next few weeks, given the current trust deficit.
A senior Iranian official announced on Monday that Iran would cease its nuclear activities until there is a final deal, and will not enrich uranium or expand nuclear facilities. Reporting by Pranav Mathur in Bengaluru, and Trixie Yap from Singapore. Editing by Christian Schmollinger & Clarence Fernandez.
(source: Reuters)