Latest News
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TotalEnergies Secures Four Exploration Permits Offshore Liberia
TotalEnergies has signed four Production Sharing Contracts (PSCs) for exploration blocks offshore Liberia, which were awarded following the 2024 Direct Negotiation Licensing Round organized by the Liberia Petroleum Regulatory Agency.The agreements were signed for the blocks LB-6, LB-11, LB-17 and LB-29, covering an area of approximately 12,700 square kilometers.The blocks are located in the south of the Liberia Basin. The work program includes acquiring one firm 3D seismic survey.“TotalEnergies is enthusiastic to be part of the resumption of exploration activities in offshore Liberia. Entering these blocks aligns with our strategy of diversifying our Exploration portfolio in high-potential new oil-prone basins.“These areas hold significant potential for prospects that have the potential for large-scale discoveries that lead to cost-effective, low-emission developments, leveraging the company’s proven expertise in deepwater operations,” said Kevin McLachlan, Senior Vice-President Exploration at TotalEnergies.
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Australia's 2035 emission reduction target is lower than expected at 62%-72%
Australia set a target for 2035 to reduce emissions by 62%-70% compared to 2005, which is lower than the figure initially suggested by Australia's climate authority. The United Nations has requested that countries It is important that all countries submit their Nationally Determined Contributions (NDCs) before the end September to allow their efforts to be evaluated before the COP30 Summit in Brazil in November. Australia's resources industry is largely responsible for its high pollution levels per capita. The target is below the range of 65-75% suggested initially by the Climate Change Authority (an independent body that advises government policy on climate change) and modelled by Treasury. "The target should be both ambitious and realistic." "A target above 70% is not feasible, this advice is clear. We have chosen the highest level of ambition possible," Minister for Climate Change and Energy Chris Bowen said at a Thursday news conference. The Australian Prime Minister Anthony Albanese announced A$5 Billion ($3.32 Billion) in funding for industrial facilities to decarbonise as well as A$2 Billion for the Clean Energy Finance Corporation of Australia to continue to push down electricity prices. Albanese stated in a press release that "we are not the largest polluter nor the biggest economy, but our commitment to climate change action matters." It matters to us, to our neighbors, to our economy and to the country we leave to our children. The United Kingdom announced that it would be the most ambitious country in terms of climate targets, with a reduction of 78% compared to 2005. (1 Australian dollar = $1) (Reporting and editing by Kim Coghill, Christian Schmollinger, and Alasdair Pala in Sydney)
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As traders evaluate Fed outlook after rate cut, stocks rumble
The global stock markets were choppy Thursday, after the Federal Reserve announced its first rate reduction this year. However, the Fed signaled a measured approach for further monetary policy ease. This left investors uncertain about the pace of future movements. MSCI's broadest Asia-Pacific share index outside Japan fell 0.1%, as the benchmark was impacted by declines in New Zealand and Australia markets. Chinese stocks fluctuated between gains and losses. However, there were signs of strength on some markets. U.S. stock futures rose 0.4% following a mixed session overnight on Wall Street, while South Korean shares soared by 0.8%, and Taiwanese stocks climbed 0.4%. Japan's Nikkei 225 tacked on 1%. The global stock market fell on Wednesday, after reaching a record-high in response to the Fed's quarter point rate cut. It also indicated that it would continue to lower borrowing costs throughout the remainder of this year. In his post-meeting remarks, Fed chair Jerome Powell temperated the more aggressive expectations of easing in the markets. He said that Wednesday's action was a risk management cut, and the central banks did not have to act quickly on rates. ANZ analysts wrote in a report that the decision made and the tone of the press briefing were both balanced and restrained. They weren't at all dovish. Investors were sceptical about Powell's projections of higher inflation and stronger U.S. growth. These doubts fueled overnight trading in the U.S., as the S&P 500 closed down and the Nasdaq Composite fell. Only Stephen Miran, the new Fed Governor who joined on Tuesday, voted against a 50-basis-point cut. The currency markets are also indecisive. After the rate announcement, the U.S. Dollar fell to its lowest level since February 2022 against a basket major counterparts at 96.224. However, it rose 0.1% on Thursday to reach 97.089. The euro was stable at $1.181, after an immediate reaction to the Fed's announcement caused it to rise to its highest level since June 2021. The Chinese Yuan was unchanged at 7,103 on Thursday after China's central banks left the borrowing costs of its reverse repurchase agreements for seven-day periods unchanged, refusing to follow the Fed. The pound fell 0.1% to $1.3621 after briefly reaching its highest level since July 2, at $1.3726, on Wednesday. It is expected that the Bank of England's policy decision will be announced later on Thursday. Rates are likely to remain at 4%. According to CME Group’s FedWatch tool, traders are pricing in an 87.7% probability of another 25-bp reduction at the Fed’s next meeting in November, compared with a 74.3% likelihood a day before. Shane Oliver is the chief economist at AMP and head of investment strategies in Sydney. He said that while "the Fed continues to signal more rate cuts", it still expects a good growth. This is a combination which is positive for share markets. He added, "I think the gains are going to be limited as the markets already rallied in anticipation of a Fed rate cut and they're due for a pause or a near-term corrective." Bank of Canada reduced its key rate on Wednesday by 25 basis points to a low of 2,5%, a level not seen in three years. This was the first time in six months that the Bank had cut the rate. The Bank said it would cut the rate again if the risks to the economy increased over the next few months. GROWTH CONCERNS S&P/NZX50 dropped by 0.9% in New Zealand after data revealed a worse than expected economic contraction for the second quarter. The kiwi currency fell 0.7% against greenback. The Australian market did not fare much better. It fell 0.6%, led by a drop of up to 13.6% in the shares of gas producer Santos after a consortium headed by Abu Dhabi’s ADNOC canceled its $18.7-billion bid for the firm, claiming that commercial terms couldn’t be agreed. After the release of softer-than-expected August labour market data, the Australian dollar fell 0.2%. Full-time employment dropped unexpectedly after a sharp increase the previous month. The unemployment rate remained at 4.2%. Kerry Craig, global strategist at J.P. Morgan Asset Management, Melbourne, says that the data could cause a weakness in the Australian Dollar, which recently gained strength due to hawkish remarks from the Reserve Bank of Australia. He said that the bank was still expecting a rate reduction in November. After a slight pullback on Tuesday, bond markets rallied. The yield on the benchmark 10-year Treasury note fell to 4.0718% from its U.S. closing of 4.076%. The yield on the two-year Treasury note, which increases with traders' expectation of higher Fed Funds rates, increased a bit to 3.5385%. Gold prices rose 0.1%, to $3662.33 an ounce. This is a recovery from the dip that occurred after Wednesday's record high. Brent crude oil prices fell by 0.5% to $67.62 a barrel.
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Shanghai copper falls to a new low after Fed rate cut
Shanghai copper futures fell for the third consecutive session on Thursday after a 25 basis-point rate cut from the U.S. Federal Reserve, and a higher supply of the top consumer China. In line with expectations, the U.S. Central Bank cut its benchmark interest rate on Wednesday by a quarter-point. At its October and December meetings, the Fed indicated that it would also make further cuts. The traders closed long positions in order to take profits from bets on the rate drop. This wave of profit taking continued even after the rate decrease, which weighed on the prices of red metals used in construction and power. As of 0238 GMT, the most traded copper contract on Shanghai Futures Exchange fell below the psychologically important level of 80,000 Yuan ($11252.23) for a metric ton. The price was down by 1.05%, to 79.870 yuan per ton. Earlier in the session, the contract reached its lowest level since September 10, at 79.690 yuan. The benchmark three-month copper price on the London Metal Exchange fell 0.25% to $9,971.5 per tonne after hitting its lowest level in a week at $9925 on Wednesday. ANZ analysts also said that the higher metals production in China weighed on the sentiment in a recent note. China's refined output of copper in August increased 15% on an annual basis, reaching a near-record high level. SHFE aluminium fell by 1.05%. Nickel dropped by 0.29%. Tin declined 1.04%. Zinc shed 1.1%. Lead added 0.26%. Aluminium, nickel, lead, tin, and zinc all fell in the LME.
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Powell's comments and Fed meeting have led to a strengthening of the dollar, lowering gold.
Gold prices continued to decline on Thursday, while the dollar strengthened after the U.S. Federal Reserve, as anticipated, cut interest rates a quarter percentage point and used a measured tone on future policy easing. As of 0156 GMT spot gold fell 0.2%, to $3,654.29 an ounce. It had hit a record-high of $3,707.40 per ounce on Wednesday. U.S. Gold Futures for December Delivery fell 0.8% to $3.690. Edward Meir, Marex analyst, said that the Fed's general message was a little hawkish on interest rates. They didn't endorse lower rates with enthusiasm. "As a consequence, we saw the Dollar firm up after Fed meeting and Treasury rates also moved upwards... I believe that in the short-term, we may be a little overbought and could possibly retrace further to the $3600 mark. Gold is now more expensive for holders of other currencies due to the dollar's 0.2% rise. The Fed cut rates by 25 basis point on Wednesday, and said it would continue to lower borrowing costs throughout the remainder of this year. Fed Chair Jerome Powell described the policy as a risk management cut in response the weakening of the labour market. The central bank is currently in a situation where it has to "meet by meeting" in order to determine the future interest rate outlook. The SPDR Gold Trust is the largest gold-backed ETF in the world. Its holdings dropped 0.44% on Wednesday to 975.66 tons from 979.95 on Tuesday. The gold price has risen by 39% this year after a 27% increase in 2024. This is due to expectations of monetary policy ease by the Fed and lingering geopolitical conflicts, as well as strong central bank purchases. The price of palladium remained unchanged at $1,153.87. Platinum rose 0.4% to 1,366.75 per ounce and silver fell 0.3% to $41.53 an ounce. (Reporting and editing by Rashmi aich in Bengaluru, Brijesh patel from Bengaluru)
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Investors assess Fed's outlook after rate cut and are cautious about stocks, the dollar
The global stock markets rose on Thursday, after the Federal Reserve lowered interest rates. However, investors were cautious after the world's largest central bank indicated a measured approach towards further monetary policy ease. U.S. equity contracts advanced by 0.3% after an uneven session overnight on Wall Street. Shares in Korea and Taiwan, which opened around 0.7% higher, led the gains in Asia. Japan's Nikkei 225 tacked on 0.3%. The MSCI broadest Asia-Pacific share index outside Japan edged down 0.1% as the declines in Australian markets and New Zealand weighed on this benchmark. The global stock market fell on Wednesday, after reaching a record-high in response to the Fed's quarter-point rate cut. It also indicated that it would continue to lower borrowing costs throughout the remainder of the year. In his post-meeting remarks, Fed Chair Jerome Powell temperated the more aggressive expectations of easing in the markets. He said that Wednesday's action was a risk management cut, and the central bank did not have to act quickly on rates. ANZ analysts wrote in a report that the decision made and the tone of the press briefing were both balanced and restrained. They weren't at all dovish. Investors were sceptical about Powell's projections of higher inflation and stronger U.S. growth. These doubts fueled the U.S. trade overnight. The S&P 500, and Nasdaq Composite closed down. Only Stephen Miran, the new Fed Governor who joined on Tuesday, was against a 50-bp increase. The currency markets are also indecisive. After the rate announcement, the U.S. Dollar Index fell to its lowest level since February 2022. It was 96.224. However, it recovered to 97.074 to end the day higher. After a knee-jerk response to the Fed's announcement, the euro remained at $1.1821. It had previously reached its highest level since June 2021 of $1.19185. Sterling is flat at $1.3626 after briefly reaching its highest level since July 2, at $1.3726, on Wednesday. It is expected that the Bank of England will announce its own policy later on Thursday and keep rates at 4%. According to CME Group’s FedWatch tool, traders are pricing in an 87.7% probability of another 25 bp cut during the Fed's October meeting, up from a 74.3% likelihood a day before. Shane Oliver is the chief economist at AMP and head of investment strategies in Sydney. He said that while "the Fed continues to signal more rate cuts", it still expects a good growth. This is a combination which is positive for share markets. He added, "I think the gains are going to be limited as the markets already rallied in anticipation of Fed rate cuts and therefore they're due for a pause or a near-term corrective." Bank of Canada reduced its key rate on Wednesday by 25 basis points to a low of 2,5%, a level not seen in three years. This was the first time in six months that the Bank had cut the rate. The Bank said it would cut the rate again if the risks to the economy grew in the coming months. S&P/NZX50 dropped 0.6% in New Zealand after data revealed a worse than expected economic contraction for the second quarter. The kiwi currency fell 0.6% against the dollar. The Australian market did not fare much better. It fell 0.8%, led by a drop of up to 13.6% in the shares of gas producer Santos after a consortium headed by Abu Dhabi’s ADNOC canceled its $18,7 billion bid, claiming that commercial terms couldn't be agreed. The yield on the benchmark 10-year Treasury note rose to 4.0872% on the bond market from its U.S. closing of 4.076% Wednesday. The yield on the two-year bond, which increases with traders' expectation of higher Fed fund rates, increased a bit to 3.5552%. Gold prices increased 0.3%, to $3670.19 an ounce. This is a recovery from the dip that occurred after Wednesday's record high. Brent crude oil prices remained steady at $67.95 a barrel.
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Oil prices barely changed after Fed rate reduction
The oil prices were not much changed Thursday, after the U.S. Central Bank lowered its main interest rate. This was widely expected. However, an indication that more rate reductions will be made before the end of the year raised the possibility of a surge in demand due to falling borrowing costs. Brent crude futures fell 8 cents or 0.12% to $67.87 per barrel at 0042 GMT. U.S. West Texas Intermediate Futures were down by 10 cents or 0.16% at $63.95. Federal Reserve policymakers responded in part to the signs of weakness on the job market by cutting their policy rate by one quarter of a percent point. They also said they would continue to lower borrowing costs throughout the rest of this year. Low borrowing costs usually boost oil demand. Claudio Galimberti is the chief economist at Rystad and the global director of the market analysis. He said that the Fed's decision to continue cutting rates indicates the Fed believes the risk of inflation to the economy is higher than the risk of unemployment. "For Brent, in particular,... the cuts and the two expected to be made by the end of the calendar year will be a positive factor that will counter the negative OPEC+ strategy of unwinding," he added, referring the increased oil supply coming from the Organization of the Petroleum Exporting Countries (OPEC) and its allies. The Energy Information Administration reported that the U.S. crude stockpiles declined sharply on the demand side last week, as net imports plunged to a new record low, while exports rose to a nearly two-year high. The world's largest oil consumer was concerned about the demand for distillate, and prices were pushed up by a 4 million barrel increase in stockpiles, as opposed to 1 million barrels expected by the market. JP Morgan stated in a note to clients that the global average oil demand was 104.4 million barrels of crude per day through September 17. This represents an increase from last year of 0.520 million barrels. The demand for oil has been up by 0.8 million barrels per day (mpd) so far this year, which is just a little bit less than the 0.83 mbd that was projected by JP Morgan. JP Morgan stated that "While flight volume in the U.S., China, and Latin America is easing, as summer travel season ends, activity continues to grow in Europe, Middle East and Latin America." (Reporting and editing by Christopher Cushing; Katya Golubkova)
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Mariah Carey's floating concert brings star power to Amazon ahead of COP30
On Wednesday night, less than two months before Belem welcomes heads of state to the U.N. Climate Summit COP30 in the Brazilian city, pop star Mariah Carey performed with a cast local artists at a floating concert for the Amazon rainforest. The concert was part of the two-day "Amazon Live Today and Forever" event, organized by Rock World. The company that organizes the music festivals Rock in Rio and The Town. Carey, 56 years old, was able to captivate more than 70,000 Sao Paulo fans on Saturday when she appeared at The Town. Fans watched from another location as the singer performed on a stage that resembled an enormous waterlily floating on the Guama River for a half-hour on Wednesday. "We are here tonight to raise awareness about the protection of the rainforest." Let's start with something tropical," she said, before singing "Sugar Sweet", the first song of the evening. Carey made her sixth visit to Brazil after performing in Sao Paulo last year and Rio de Janeiro the previous year. The Amazon concert was broadcast on Brazilian TV, and it was preceded by a showcase of Amazon-born female performers. Belem, Brazil, will host COP30 in November. This event, the first U.N. Climate Summit to be held within the Amazon, will bring together business leaders, climate activists, and foreign leaders. (Reporting and writing by Wagner Santana, Fernando Cardoso, Jamie Freed).
COP29: What is a carbon credit? What is Post 6?
Nations at the U.N. COP29 climate top in Azerbaijan will attempt to concur rules for a. global system for trading carbon balanced out credits.
Here's what you should know:
WHAT ARE CARBON OFFSETS?
Some federal governments and business might struggle to minimize their. planet-warming greenhouse gas emissions to satisfy their environment. targets. Fans of carbon offsets see them as a crucial means to. aid fulfill these goals.
These offsets enable one nation or business to balance out a few of. their emissions by paying for actions to cut emissions. somewhere else. These actions might consist of rural solar panel. installations or converting a fleet of fuel buses to electric.
WHAT IS POST 6?
Article 6 of the Paris Contract assists nations work. together to lower their carbon emissions. It sets out two. alternatives for nations and business to trade offsets, helping. them fulfill the objectives they set to reduce planetary-warming gases. in their climate action plans, called nationally figured out. contributions (NDCs).
One permits 2 nations to set their own terms for a. bilateral carbon trading arrangement, this is known as Article. 6.2. The second aims to develop a central, UN-managed system for. nations and business to start offsetting their carbon. emissions and trading those offsets, known as Post 6.4.
Article 6 is seen an essential system for providing. climate finance to establishing nations, and a Paris Contract. carbon market, if introduced, could continue operating even if the. United States under Donald Trump withdraws support for the Paris. Contract.
WHAT'S BEEN CHOSE SO FAR?
At the COP26 environment top in Glasgow, negotiators reached. a breakthrough arrangement that established a broad rulebook to. regulate trading of carbon credits.
But after 2 weeks of talks at COP28 in Dubai, nations. stopped working to seal an offer on necessary information to operationalise a. main carbon trading system or to clarify rules for countries. wanting to make bilateral arrangements.
Some countries like Japan and Indonesia have actually decided to. press ahead with bilateral agreements without those. clarifications and are currently preparing to trade carbon. credits, known as globally transferable mitigation. results (ITMOs). The UN says 91 arrangements had actually been made. between 56 countries since October this year. Thailand and. Switzerland finished the first sale in January, and the marketplace. for bilateral trade contracts is still quite little.
Some purchasers are stressed there are not sufficient rules to stop. nations altering the regards to the contracts, or withdrawing. them, and that there is not a robust system to guarantee that. credits bought and sold are not being counted by both the purchasing. and selling nations.
WHAT WILL BE DECIDED AT COP29?
Authorities are keen to secure an early win on Short article 6 at. this year's environment conference.
Market watchers are confident a contract can be reached to. set guardrails for the bilateral agreements and to. operationalise the UN-backed centralised market.
Guardrails consist of checks and balances to supply assurance. countries are buying and offering real emissions reductions. Some countries for instance desire methods countries use to produce. credits to be checked globally.
Countries will likewise negotiate whether the UN's main. pc registry can itself house credits that can be transacted and. retired or whether it must run simply for accounting. purposes.
A professional group elected under United Nations rules has. already hammered out a framework for the multilateral trading. system to ensure credits fulfill fundamental quality requirements. But. nations at COP29 can choose to either approve this. requirement, open additional conversations, or reject it.
After COP29, the technical expert group will reunite to. agree which methodologies for generating carbon credits through. cookstoves tasks or reforestation for example can provide. credits into the new Paris Aligned system.
If the key points are fixed this year, the system could. launch as soon as 2025.
WHAT DOES THIS MEAN FOR THE VOLUNTARY CARBON MARKET?
Some companies that are under no legal responsibility to cut. their emissions have actually set voluntary targets, which they can fulfill. partially through buying credits on a voluntary carbon market. In 2022, the voluntary market was valued at about $2 billion. worldwide. But the marketplace worth plummeted to $723 million last. year after being shaken by duplicated scandals.
Linking carbon projects presently in the voluntary market. with the Paris Agreement system might enhance confidence.
Developers of jobs like mangrove remediation to. regenerative farming can use to have their credits sold. under the UN system, indicating that if approved, they might offer. in either that system or on the voluntary market. Specialists anticipate. UN-approved credits to carry a higher cost.
WHAT ARE CARBON OFFSETS?
Some federal governments and business may have a hard time to reduce their. planet-warming greenhouse gas emissions to meet their environment. targets. Advocates of carbon offsets see them as a crucial ways to. assistance meet these objectives.
These offsets permit one nation or business to offset a few of. their emissions by paying for actions to cut emissions. elsewhere. These actions might consist of rural solar panel. setups or transforming a fleet of fuel buses to electrical.
WHAT IS ARTICLE 6?
Post 6 of the Paris Arrangement assists countries work. together to reduce their carbon emissions. It sets out 2. options for nations and companies to trade offsets, assisting. them satisfy the goals they set to reduce planetary-warming gases. in their climate action plans, called nationally determined. contributions (NDCs).
One permits 2 countries to set their own terms for a. bilateral carbon trading agreement, this is called Article. 6.2. The 2nd aims to develop a central, UN-managed system for. countries and companies to start offsetting their carbon. emissions and trading those offsets, known as Article 6.4.
Short article 6 is seen an important mechanism for delivering. environment financing to developing countries, and a Paris Arrangement. carbon market, if introduced, might continue operating even if the. United States under Donald Trump withdraws support for the Paris. Contract.
WHAT'S BEEN DECIDED UP UNTIL NOW?
At the COP26 climate top in Glasgow, arbitrators reached. an advancement agreement that developed a broad rulebook to. control trading of carbon credits.
However after two weeks of talks at COP28 in Dubai, countries. stopped working to seal an offer on necessary details to operationalise a. main carbon trading system or to clarify guidelines for countries. wanting to make bilateral plans.
Some nations like Japan and Indonesia have decided to. press ahead with bilateral arrangements without those. clarifications and are already preparing to trade carbon. credits, called internationally transferable mitigation. results (ITMOs). The UN states 91 arrangements had actually been made. in between 56 countries as of October this year. Thailand and. Switzerland completed the very first sale in January, and the market. for bilateral trade agreements is still rather little.
Some purchasers are worried there are not adequate guidelines to stop. countries altering the regards to the arrangements, or withdrawing. them, which there is not a robust system to make sure that. credits purchased and sold are not being counted by both the buying. and selling countries.
WHAT WILL BE DECIDED AT COP29?
Authorities are eager to secure an early win on Article 6 at. this year's climate conference.
Market watchers are confident an agreement can be reached to. set guardrails for the bilateral contracts and to. operationalise the UN-backed centralised marketplace.
Guardrails include checks and balances to offer assurance. nations are buying and selling real emissions reductions. Some countries for example desires methods countries utilize to create. credits to be examined internationally.
Nations will likewise work out whether the UN's central. computer registry can itself house credits that can be transacted and. retired or whether it must run simply for accounting. purposes.
An expert group elected under United Nations guidelines has. currently worked out a structure for the multilateral trading. system to make sure credits fulfill standard quality requirements. However. countries at COP29 can choose to either approve this. standard, open up additional conversations, or decline it.
After COP29, the technical expert group will meet again to. concur which methods for creating carbon credits through. cookstoves tasks or reforestation for example can provide. credits into the brand-new Paris Aligned system.
If the bottom lines are solved this year, the system could. launch as quickly as 2025.
WHAT DOES THIS MEAN FOR THE VOLUNTARY CARBON MARKET?
Some business that are under no legal commitment to cut. their emissions have set voluntary targets, which they can satisfy. partially through purchasing credits on a voluntary carbon market. In 2022, the voluntary market was valued at about $2 billion. worldwide. However the market worth dropped to $723 million last. year after being shaken by repeated scandals.
Linking up carbon jobs currently in the voluntary market. with the Paris Contract system could increase confidence. Designers of jobs like mangrove repair to regenerative. agriculture can use to have their credits offered under the UN. system, indicating that if approved, they might offer in either that. system or on the voluntary market. Experts anticipate UN-approved. credits to bring a higher cost.
(source: Reuters)