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Leaders of the BRICS in Rio defend the multilateralism against attacks
Lula draws parallels with the Non-Aligned Movement of Cold War Group condemns attacks against Iran and Gaza, increasing tariffs Xi Jinping skips, Putin online, Modi and Ramaphosa present By Lisandra Paraguassu and Manuela Andreoni RIO DE JANEIRO - On Sunday, the BRICS leaders condemned the attacks in Gaza, Kashmir and Iran during their summit. They portrayed the group as a defender for multilateral diplomacy, while criticizing the U.S. trade and military policy. The expansion of BRICS is a response to the divisions in the G7 and G20 group of major economies and the "America First" policy of U.S. president Donald Trump. In his opening remarks, Brazilian President Luiz inacio Lula da silva drew an analogy with the Non-Aligned Movement of the Cold War, a grouping of developing countries that refused to join either side of the polarized world order. Lula said to leaders that "BRICS was the heir of the Non-Aligned Movement." "Multilateralism is under attack and our autonomy has been weakened once more." Lula warned business leaders on Saturday of the rise of protectionism by pointing out that BRICS countries now account for more than half of the world's total population and 40% its economic output. In 2009, the first BRICS summit brought together leaders from Brazil and India, as well as China. In 2009, the bloc was expanded to include South Africa, and in 2012, Egypt, Ethiopia and Indonesia. Indonesia is the first country to be included in this summit. The BRICS fill the vacuum that others leave almost immediately, said a Brazilian who requested anonymity. The diplomat said that although the G7 still has a lot of power, it doesn't hold the same dominance as before. There are still questions regarding the goals shared by a BRICS group that has become more heterogeneous, as it now includes regional rivals and major emerging economies. Chinese President Xi Jinping sent his Prime Minister in his place to steal some thunder at this year's Summit. Due to an international criminal court arrest warrant, Russian President Vladimir Putin will be attending the summit online. But on Sunday and Monday, several heads of states, including Indian PM Narendra Modi, and South African president Cyril Ramaphosa, gathered at Rio's Museum of Modern Art for discussions. Over 30 countries have expressed an interest in joining the BRICS either as full members, or partners. GROWING COMPLEXITY AND CLOUT The expansion of the BRICS group has given it more diplomatic weight. It aims to represent developing nations in the Global South and strengthens calls for reforming institutions like the United Nations Security Council, the International Monetary Fund, etc. Lula's remarks highlighted the failures of U.S. led wars in the Middle East. In a statement issued on Sunday afternoon the leaders condemned the military attacks against Iran’s “civil infrastructure and peaceful nuclear installations under the full safeguards provided by the International Atomic Energy Agency." The group expressed its "grave concern" over Israeli attacks in Gaza and condemned what it called "a terrorist attack" on Indian-administrated Kashmir. The joint statement on trade warned that the "indiscriminate rise in tariffs" threatened global trade. This continued the group's veiled critique of Trump's U.S. Tariff policies. The group expressed its support for Ethiopian and Iranian to join the World Trade Organization while calling to restore urgently its ability to settle trade disputes. As first reported last week, the leaders' statement backed plans for a pilot BRICS Multilateral Guarantees Initiative within the group's New Development Bank in order to lower financing costs while boosting investment in member countries. Brazil, which is also hosting the United Nations Climate Summit in November, has used both events to show how serious developing nations are about tackling climate changes, while Trump has put the brakes on U.S. initiatives. According to two sources familiar with the discussions regarding funding the conservation of endangered forest around the globe, China and the UAE indicated in their meetings with Brazilian Finance minister Fernando Haddad that they intend to invest in the proposed Tropical Forests Forever Facility. (Reporting and editing by Lisandra Andreoni and Manuela Paraguassu; Will Dunham, Bill Berkrot, David Gregorio and Brad Haynes)
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The FT reports that the German Minister wants to expand the number of companies eligible for electric relief.
The Financial Times, citing sources familiar with the plan, reported that German Economy Minister Katherina Riese would like to expand the availability of planned measures intended to lower the electricity costs for companies. In the first half of this year, Germany’s ruling coalition consisting of conservatives and social democrats agreed to reduce electricity taxes to the European Minimum for all consumers. The Finance Ministry's 2026 framework budget, which was introduced last month, limited the relief planned to the industry, agriculture, and forestry sectors, while excluding many consumers and companies, citing financial problems. Reiche announced last month that Germany would be presenting a concrete idea for an industrial electric price concept before the summer holiday and was aiming to implement it by year's end. According to the FT, Reiche is looking to increase from 350 to 2200 the number of eligible companies for electricity price subsidies. The paper said that people cited by it estimated the cost of the program at 4 billion euro ($4.7 billion). It would also fund up to 50% of the electricity costs for firms over a three-year period. When asked for comment by the Economy Ministry, it said that under recently announced European Union regulations up to 2,200 "energy and trade intensive" companies may receive financial assistance to cover half of their electricity costs. The statement added that "the (German) concept" is being developed, but declined to elaborate. According to The FT, the scheme will aim to provide "quick and reliable" assistance to the glass, plastics, and chemical industries. These industries have "a wide-reaching effect on other sectors via the value chains". The FT reported that the ministry's scheme would aim to deliver "quick and reliable" aid to the chemical, glass and plastics industries which have "a far-reaching impact on other sectors through value chains".
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Putin claims that globalisation has become obsolete and that the future belongs to emerging market
On Sunday, Russian President Vladimir Putin said to BRICS leaders that the era liberal globalisation is obsolete. The future belongs to rapidly growing emerging markets that should increase the use of national currencies in trade. A warrant of arrest issued by the International Criminal Court alleging that Putin is responsible for war crime in Ukraine caused him to speak via video link at the Rio de Janeiro summit. Moscow claims the warrant is unfounded, and has no purpose. BRICS – an idea that was conceived in Goldman Sachs 20 years ago to describe China's growing economic clout and that of other major emerging market countries – now accounts for 45% the world’s population. In a televised statement, Putin stated that "everything indicates the liberal globalisation model is becoming outdated." "The center of business activity is moving towards emerging markets." Putin called on the BRICS nations to intensify their cooperation in a variety of spheres, including natural resources and logistics, as well as trade and finance. According to the International Monetary Fund, the five core BRICS countries - Brazil Russia India China South Africa – account for over $28 trillion of nominal Gross Domestic Products in dollar terms, while the Group of Seven is responsible for over $51 trillion. China is the source of most of the economic clout for BRICS. This group also includes Egypt and Ethiopia as well as Indonesia, Iran, and the United Arab Emirates. China accounts for over 60% of the combined clout among BRICS.
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The search for Texas flood victims continues despite the forecast of more rain
On Sunday, the search for more than two dozen girls missing from a Texas summer camp that was hit by flash flooding entered its third day. Rescuers were facing the threat of further flooding as the death toll reached 43. Teams of search and rescue workers raced to locate 27 missing girls from a camp located near the Guadalupe River. The river flooded after torrential rainfall fell on central Texas, Friday, Independence Day. Independence Day is a holiday. Officials reported that more than 850 people were rescued. Some of them clung to trees after a sudden thunderstorm dumped up 15 inches (38 cm), of rain, across Texas Hill Country. This is about 85 miles (140km) northwest of San Antonio. Uncertainty remained about how many people were still missing in the Texas Hill Country. Experts questioned whether the Trump administration's cuts to federal staff, including the agency overseeing the National Weather Service (NWS), led officials to fail to accurately predict and issue warnings before the storm. Former NOAA director Rick Spinrad said that President Donald Trump and the Trump administration have cut thousands of jobs from the National Weather Service parent agency. This has left many weather offices with a lack of staff. He said that he didn't know if the staff cuts contributed to the lack of advanced warnings for the extreme Texas floods, but they would degrade the ability of the agency to provide accurate and timely predictions. Kristi Noem of Homeland Security, who oversees NOAA said that a "moderate flood watch" issued by the National Weather Service on Thursday had not accurately forecast the extreme rainfall. She said the Trump Administration was working to improve the system. The White House didn't immediately respond to an inquiry for comment. Joaquin Castro is a Democratic Congressman from Texas. He told CNN's "State of the Union" that less personnel in the weather service would be dangerous. Castro stated that "when you have flash floods, there is a risk of tragedy if you do not have the personnel to perform the analysis and make the predictions the right way." On Sunday, more rain is expected to fall in the region. The National Weather Service has issued a flood warning for Kerr County until 1 pm local time. The disaster unfolded rapidly on Friday morning as heavier-than-forecast rain drove river waters rapidly to as high as 29 feet (9 meters). Greg Abbott, the Republican Governor of Texas, said at a Saturday press conference that he had requested Trump to sign a declaration of disaster, which would unlock federal assistance for those affected. Homeland Security Secretary Kristi Nuem confirmed that Trump would honor this request. Trump has already outlined plans for the federal government to reduce its role in dealing with natural disasters and leave it to the states to take on more responsibility. Local officials confirmed that at least 15 of those who died were children. The 27 girls missing were from Camp Mystic, a Christian summer camp that was nearly a century old and had 700 girls residing there at the time of flood. The camp was in ruins a day after the catastrophe. In one cabin, the mud marks that showed how high the water rose were six feet (1.83m) above the floor. Inside, bed frames, mattresses, and other personal items were caked in mud. One building had a wall missing and some buildings had broken glass. (Reporting from Sergio Flores, Hunt, Texas, and Rich McKay, Atlanta; Additional reporting from Marco Bello and Sandra Stojanovic, Comfort, Texas; Deborah Gembara, Washington; Ryan Jones, Bhargavacharya, and Bhargav Asharya, Toronto; Writing and editing by Tim Reid, Bill Berkrot.
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Saudi Arabia increases Aug Arab Light crude oil OSP for Asia to the highest level in four months
Saudi Arabia raised its official selling price of its flagship Arab Light crude to Asia in August by $2.20 over the Oman/Dubai median, according to a pricing document published on Sunday by Saudi oil giant Aramco. The price of Arab Light in August is $1 higher than the price in July and the highest price since April when it was $3.50 more expensive than the average price for Oman/Dubai. Documents show that the Gulf Kingdom set its official August Arab Light selling price for Northwest Europe at $4.65 over ICE Brent, and the U.S. market at $3.90 over ASCI. The price of Arab Extra Light barrels was raised by $1.30 per barrel in August, and the price of Arab Heavy by $.90. These moves follow a decision by eight OPEC+ member countries to increase production in August by 548,000 barrels a day, accelerating the output growth. Fears of disruptions in supply caused oil prices to spike after a 12-day air battle between Iran and Israel. After a ceasefire, prices returned to their previous levels. A survey conducted last week revealed that respondents expected Saudi OSPs to closely track the spot markets.
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Petrobras CEO: Weighing options for Polo Bahia offshore fields, including selling, is one of the options being considered by Petrobras.
Petrobras, Brazil's state oil company, is considering all options, including the sale of its Polo Bahia oil fields. Chief Executive Magda Chambriard announced this on Saturday. She added that any decision would be based on shareholder and return interests. Former President Jair Bolsonaro had listed the Polo Bahia Hub, which consisted of 28 onshore oil fields, for sale as part of his divestment plan. Luiz inacio Lula da So Lula took it off the market when he became president in 2023, ending Bolsonaro’s divestment plan. Chambriard stated that the current operation in Polo Bahia is producing very little oil, but it requires a lot of effort. She added that extracting oil from these onshore fields would be more feasible if oil prices were higher than the current $65 per barrel, when they were $90-$100. We have this on the table, but we are not yet sure what we will do. We may decide to outsource, or sell the asset. We're studying the situation and will do what is best for us and for our shareholders. Chambriard refused to comment on possible divestment plans and stated that Urucu produced "the best oil at the highest value." On Saturday, Brazilian shipyards and Chinese shipyards also signed memoranda of understanding in order to promote technological and commercial cooperations and align with the increased demand for Petrobras ships. (Reporting and writing by Rodrigo Viga Gaier, Editing by David Gregorio).
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Former Olympic champion Chopra wins Gold at His Eponymous Event
Neeraj, the former Olympic javelin champion, won gold on Saturday in Bengaluru at Kanteerava Stadium. He registered a dominant win with a throw measuring 86.18 meters in the first round. Chopra, Germany's Thomas Rohler, and Kenya's Julius Yego were among the elite athletes who competed in India's Neeraj Chopra Classic. Chopra, the winner of the Tokyo Olympics 2021 and the Paris Games 2024, was dominant throughout. He followed his winning throw with throws 84.07m, and 82.22m, in subsequent rounds, as over 14,500 spectators cheered on their favourite. "I did not expect such a large crowd and support during the first season." Chopra thanked AFI (Athletics Federation of India), and World Athletics, for providing a world-class competition. This is a huge thing for our nation. "We were able do well and I hope we can continue adding more events to competition." Yego, the former world champion who won silver in Rio 2016, has now claimed silver at 84.51m. This is a promising performance ahead of the World Athletics Championships scheduled for September in Tokyo. Rumesh Patirage of Sri Lanka won bronze with a toss of 84.34m. He continues his upward trajectory, after joining the 85m club in 2024 at the Asian Throwing Championships held in Korea. Chopra made a dramatic recovery after fouling in the first throw. He recovered to post a winning 86.18m attempt that proved unbeatable during the competition. After three attempts, only eight of the 12 athletes made it to the second round. Former Olympic champion Rohler was shocked to find himself unable to advance after only one valid attempt during the first round. Chopra expressed his hope to host the event next year with more athletes, both domestic and international. (Reporting and editing by Clare Fallon in Bengaluru, with Suramya kaushik from Bengaluru)
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As floodwaters recede in Central Texas, 27 people have been confirmed dead
Authorities confirmed that 27 people including nine children were dead following flash floods across central Texas. Rescuers are still searching for survivors, including the dozens of girls who remain missing from their summer camp. As floodwaters receded around the Guadalupe River in Kerr County in Texas, approximately 85 miles (137 kilometers) northwest of San Antonio, 800 people were evacuated. The majority of the missing people are young girls. Near the camp, river levels rose rapidly by 29 feet. After thunderstorms dumped up to a foot of rainfall early Friday, the U.S. National Weather Service announced that the flash flooding emergency had largely been lifted for Kerr County. This was the epicenter of this flooding. The NWS Weather Prediction Center, College Park, Maryland, has issued a flood watch for the San Antonio and Austin, Texas region until 7 pm on Saturday. Donald Trump, the U.S. president, said that the federal government was working with local and state officials to combat the floods. Melania and I pray for the families affected by this terrible tragedy. "Our Brave First Responders have been on the scene doing what they do best," said he on social media. Dalton Rice, Kerrville's city manager, told reporters that extreme flooding occurred before dawn, with little or no notice, preventing authorities from issuing evacuation orders in advance as the Guadalupe River quickly rose above major flood level. Rice stated that "this happened very rapidly, in a very brief period of time, which could not have been predicted even by radar." "This occurred in less than two hours." Early Thursday, state emergency management officials warned that heavy rains in west and central Texas and flash flooding were possible "in the next few days" citing National Weather Service predictions ahead of the holiday. W. Nim Kidd of the Texas Division of Emergency Management said at a Friday night news conference that the weather forecasts "didn't predict the amount of rainfall we saw". According to the National Weather Service summary of the storm in 1987, the weekend disaster is reminiscent of a devastating flood that occurred along the Guadalupe River almost 40 years earlier. A bus and van trying to leave a church camp were flooded and ten teenagers drowned while trying to get out. It said that hundreds of people had been evacuated.
The price of oil has risen from a multi-year low as rising supply and tariffs weigh.
The oil market rose on Thursday, after heavy selling drove it to a multiyear low. However, tariff uncertainty and an increasing supply outlook limited gains.
Brent futures rose 39 cents or 0.56% to $69.69 a bar by 0416 GMT. U.S. West Texas Intermediate crude futures (WTI) also rose 39 cents or 0.59% to $66.70 a bar.
Brent fell 6.5% over the last four sessions to its lowest level since December 2021, while WTI dropped 5.8% to its lowest level since May 2023.
The sharp drop in oil prices below $70.00 may cause a slight breather today as the technical conditions try to stabilize from oversold terrain," said Yeap Jul Rong, market analyst at trading platform IG.
"However the recovery momentum remains fragile. Unfavourable supply-demand dynamic is a key overhang to bullish sentiment," added he.
Prices dropped after the U.S. enacted a tariff on Canadian and Mexican products, including energy imports. At the same time, major producers decided to increase output quotas.
As the U.S. announced it would exempt automakers of 25% tariffs, optimism grew that the impact of trade disputes could be reduced.
A source familiar with these discussions also said that President Donald Trump could eliminate the 10% tariff for Canadian energy imports such as gasoline and crude oil that are compliant with existing trade agreements.
Trump's trade actions threaten to reduce global demand for energy and disrupt trade on the global oil markets. The rise in U.S. inventories exacerbated the situation, according to Daniel Hynes senior commodity strategist, ANZ.
The market sentiment is still negative due to the double impact of the tariffs, and the decision of OPEC+ (Organisation of Petroleum Exporting Countries) and its allies, including Russia, to increase output.
The Energy Information Administration reported on Wednesday that crude oil stocks in the U.S. - the world's largest oil consumer - rose more than anticipated last week due to seasonal refinery maintenance. Meanwhile, gasoline and distillate stockpiles fell because of a rise in exports.
The EIA reported that crude inventories increased by 3.6 millions barrels, to 433.8 million in the past week. This was far more than analysts expected in a survey, who had predicted a rise of 341,000 barrels.
According to data from ship tracking, there are more signs of weakness among American oil consumers. U.S. crude oil imports dropped to a 4-year low in Feburary, due to a drop in Canadian barrels sent to the East Coast. Refinery maintenance, such as a lengthy turnaround at the biggest plant in the area, also slowed demand.
The United States continues to impose tariffs on imports of Mexican crude. This is a smaller source than Canadian crude, but it is still important for refineries in the Gulf Coast.
(source: Reuters)