Latest News
-
US Supreme Court limits EPA's power to regulate water pollution discharge
The U.S. Supreme Court delivered a major blow to the Environmental Protection Agency on Tuesday in a case involving a wastewater-treatment facility owned by San Francisco. This ruling could make it more difficult for regulators and law enforcement to monitor water pollution. In a decision of 5-4, the justices ruled that the EPA had exceeded its authority in a landmark antipollution act by including vague restrictions on a permit for the wastewater treatment plant, which empties directly into the Pacific Ocean. The city sued the EPA to challenge its restrictions. The decision, written by conservative Justice Samuel Alito in San Francisco, overturned a ruling by the 9th U.S. Circuit Court of Appeals. Circuit Court of Appeals had previously upheld the permit. Alito wrote in his letter that the EPA had exceeded its authority under the landmark Clean Water Act (1972) by imposing on permit holders undefined standards for water quality within the receiving water body. Alito wrote: "This case involves provisions which do not specify what a permittee is required to do or refrain from; they instead make the permittee accountable for the quality in the water of the body of water that the permittee discharges contaminants into." Alito said that "when a permit has such requirements, the permittee who follows the permit to the letter may still face crushing penalties" if the water quality in the receiving waters is below the standards. State water quality standards must be approved by the federal government. Amy Coney Barrett, a conservative justice on the court, wrote a dissent to which three members of the liberal court also signed. Barrett wrote that "EPA must issue the limits necessary to ensure the water quality standards have been met." If EPA is denied a tool, it may be harder for them to issue permits to municipalities and businesses to ensure that their discharges are legal. In recent years, the Supreme Court has weakened the EPA’s power as part of a number of rulings that have lowered the federal regulatory agencies’ authority.
-
Venezuelan oil exports increased in February ahead of Chevron’s license termination
Data from vessel monitoring showed that Venezuelan crude and fuel exports rose to their highest level since November. The U.S. was preparing to cancel a license which allows the oil giant Chevron, to ship and operate crude out of the country. Since Chevron received the license late in 2022, Venezuela's oil production and exports are on the rise. This is a source of reliable revenue for President Nicolas Maduro. In January, the company shipped more than 30% the South American nation’s total exports to the U.S. The U.S. Treasury Department announced on Tuesday that Chevron will wind down its activities in Venezuela over the next 30 day after President Trump claimed Maduro had not made progress in electoral reforms or migrant return. Last month, the state-owned energy company PDVSA of Venezuela and its joint venture partners exported an average 934 465 barrels of fuel and crude oil per day. According to data, China was the biggest market for Venezuelan oil, with an average of 503,000 barrels per day. The U.S. ranked second with 239,000 bpd. Europe was third with 69.200 bpd. India was fourth with 68,000. Chevron’s exports from its joint ventures to the U.S., and other destinations, fell from 294,000 bpd to 252,000 in February. Cuba, Venezuela's political partner, is receiving 42,000 bpd in crude oil and fuel. Cuba is currently struggling to maintain the lights during a severe crisis of energy. Venezuela exported 315,000 tons of petrochemicals and oil byproducts including methanol, which is a decrease from the 360,000 tonnes shipped in January. Data showed that the country imported fuel at a rate of 86,000 bpd through swaps with PDVSA partners. This is down from 132,000 bpd in January. Since Washington imposed the first oil sanctions against Venezuela in 2019, PDVSA relies on little-known intermediaries who buy its oil for a discount and supply it to China. The intermediaries charge PDVSA high fees for shipping, ship-toship transfers and discharge. Analysts have predicted that PDVSA will send more oil through these intermediaries to China in the next few months, as there are no incentives for them to continue to deliver cargoes under the terms of the new license, which the U.S. Treasury has yet to detail. The license withdrawal is expected to have a negative impact on U.S. refiners of crude oil, especially those in the Gulf of Mexico. This comes at the same moment that Trump imposes tariffs against Canada and Mexico, who are the U.S.'s top oil suppliers.
-
US pump prices to rise as Trump tariffs take effect
Analysts and traders predict that U.S. gasoline retail prices will rise in the next few weeks due to new tariffs implemented by President Donald Trump's administration, which increase the cost of imported energy. The outlook highlights a potential unintended consequence to Trump's protectionist policies. They are intended to boost the U.S. economic but could lead to higher bills for consumers. On Tuesday, the Trump administration imposed a 25% tariff on all Mexican imports, a 10% tax on Canadian energy and doubled duties on Chinese products to 20%. The Trump administration also imposed tariffs of 25% on all Canadian imports. According to fuel distributor TACenergy, this has already caused a spike in wholesale gasoline in the U.S. Northeast. This region relies heavily upon Canadian shipments for gasoline, heating oil, and diesel. Retail fuel experts say that this hike could increase the price of a gallon by 20-40 cents. The Energy Information Administration reports that New England gasoline retail prices hovered around $3 per gallon last week. GasBuddy analyst Patrick De Haan wrote in a Tuesday blog that "if you fill up in the Northeast you will see prices increase first and most significantly." De Haan, a spokesperson for Irving Oil Canada, which is the largest refiner of fuels in the Northeast, said that the company increased its fuel prices on Tuesday, to reflect the new tariff costs. A representative from Irving Oil was not available for comment. Irving Oil has said that tariffs will increase its prices for U.S. consumers. Irving's 320,000-barrel-per-day refinery in Saint John, New Brunswick, exports more than half its finished fuels to the Northeast, the company's website shows. There is no easy replacement for the products that are shipped out of Irving Oil's Refinery. TACenergy stated in a Tuesday morning market commentary that this is the primary supply source for the multiple terminals located in the area. Consumers will likely pay the increased cost of imported materials if inland refiners continue to use Canadian crude. The price of Brent crude and West Texas Intermediate crude futures, benchmarks for the United States, could rise if refiners switch from Canadian crude to light sweet crude. Both benchmarks are light-sweet grades. Experts predict that fuel prices will soon rise in other regions, too. These areas rely heavily upon crude oil imported from Canada and Mexico. The U.S. imports about 4 million barrels of Canadian oil per day, of which 70% is processed in Midwest refineries that are specially designed to run Canadian grades. U.S. refiners around the Gulf Coast of the U.S. import over 450,000 barrels per day (bpd) of Mexican oil. De Haan stated that the impact of crude oil on fuel prices could take longer in these regions as crude oil first has to be refined into fuel. Alex Ryan, Energy Director at Kansas-based Oasis, said that parts of the Midwest may see a 10 to 15 cent increase in the price of gasoline over the next couple weeks. As of Tuesday, the average U.S. gas pump price was $3.099 per gallon. This is unchanged from Monday's $3.097 per gallon. The American Automobile Association reported that they were still about 8% less than they were a year earlier. AAA's spokesperson stated that it was difficult to predict the impact of tariffs in the future on gas prices. Other factors could also have an effect. She said that "Tariffs play a part in the gas price, but other factors such as the crude oil prices are also important." The oil industry has said that it is against the tariffs as they increase the costs for the industry. Chet Thompson of American Fuel and Petrochemical Manufacturers said, "Imposing tariffs to energy, refined products and imports of petrochemicals will not increase our energy security or lower the costs for consumers... We continue to hope that a quick resolution can be reached with our North American neighbours," in a Tuesday statement. (Reporting from Nicole Jao, New York; Additional Reporting by Shariq KHan; Editing by Nia Zieminski and Nick Zieminski).
-
Euro gains from German investments; stock losses reduced
The Nasdaq index turned positive and major stock indexes reduced losses. Meanwhile, the euro rose after German political parties agreed on a 500 billion-euro infrastructure fund. It also gained momentum following news that the U.S. administration of President Donald Trump and Ukraine planned to sign a mineral deal. According to people familiar with the matter, the Trump administration and Ukraine are planning to sign a controversial minerals deal after a disastrous Oval Office Meeting on Friday. The conservatives and social democrats in Germany announced plans to create a 500-billion-euro fund for infrastructure, and change borrowing rules with the aim of increasing defense spending. The euro reached a new three-month record of $1,0599. The last 1% increase was at $1.0593. The euro rose 0.4% against sterling. The German Bund futures plunged sharply after the European markets closed due to the news about Germany. Last time, they were down 1%. German and European stocks futures rose after falling earlier on the day due to U.S. Tariff worries. German Dax futures fell by 1.5% in the last hour of trading after the benchmark Dax closed the day down 3.5%. Investors were worried about the economic impact of the United States' tariffs on Canada, Mexico, and China, which led to a sharp drop in stock indexes such as the S&P 500. Jake Dollarhide of Longbow Asset Management, Tulsa in Oklahoma, stated that tariffs are a factor contributing to consumer concerns over higher prices. The consumer has driven and saved this economy. He said that the increase in grocery costs was a concern for consumers. The Dow Jones Industrial Average dropped 244.06 points or 0.57% to 42,945.28, while the S&P 500 declined 10.27 points or 0.19% to 5,838.61. Meanwhile, the Nasdaq Composite grew 128.78 or 0.68% to 18,478.97. The MSCI index of global stocks fell by 3.05 points or 0.36% to 852.76. Trump's new tariffs of 25% on imports from Mexico, Canada and China and the doubling in duties on Chinese imports may cause a ruckus with nearly $2.2 trillion of annual trade between the U.S. and its three biggest trading partners. China responded immediately with 10%-15% of tariffs on some U.S. exports starting March 10, and a number of new restrictions on the export of certain U.S. entities. Meanwhile, Justin Trudeau, Canadian Prime Minister announced that Ottawa would impose 25% of tariffs on C$30 Billion ($20.72 Billion) of U.S. imported goods. The yield on the benchmark 10-year U.S. notes increased 3.4 basis points, to 4.214% from 4.18% at late Monday. (Reporting and editing by Jan Harvey, Lisa Shumaker, and Lisa Harvey; Additional reporting in London by Alun John; Additional reporting from Iain Withers.
-
US pump prices to rise as Trump tariffs take effect
According to traders and analysts, the price of gasoline in the United States is set to rise as a result of new tariffs that President Donald Trump's administration has imposed. These tariffs will increase the cost of imported energy. This outlook highlights a potential unintended result of Trump's trade protectionist policies. They are intended to boost the U.S. economic growth, but instead could lead to higher bills for consumers. On Tuesday, the Trump administration imposed a 25% tariff on all Mexican imports, a 10% tax on Canadian energy and doubled duties on Chinese products to 20%. The Trump administration has also imposed tariffs of 25% on all Canadian imports. According to fuel distributor TACenergy, this has already caused a spike in wholesale gasoline in the U.S. Northeast. This region relies heavily upon Canadian shipments of heating oil, gasoline and diesel. Retail fuel experts say that this hike could increase New England's gas prices by 20-40 cents per gallon. GasBuddy analyst Patrick De Haan wrote in a Tuesday blog that "if you fill up in the Northeast you will see prices increase first and most significantly." De Haan stated that Irving Oil, Canada's largest refiner of refined fuels in the Northeast, raised prices on fuels on Tuesday, to reflect tariff costs. A representative from Irving Oil was not available for comment. Irving Oil has said that tariffs will increase its prices for U.S. consumers. Irving's 320,000-barrel-per-day refinery in Saint John, New Brunswick, exports more than half its finished fuels to the Northeast, the company's website shows. There is no easy replacement for the products that Irving Oil refinery ships. TACenergy stated in a Tuesday morning market commentary that this is the primary supply source for the multiple terminals located in the area. Experts predict that fuel prices will soon rise in other regions who rely heavily upon crude oil imported from Canada and Mexico. The U.S. imports about 4 million barrels of Canadian crude oil per day, of which 70% is processed in Midwest refineries that are designed specifically to process Canadian grades. U.S. refiners around the Gulf Coast of the U.S. import over 450,000 barrels per day (bpd) of Mexican oil. De Haan stated that the impact of crude oil on fuel prices could take longer in these regions as crude oil first has to be refined into fuel. Alex Ryan, Energy Director at Kansas-based Oasis, said that parts of the Midwest may see a 10 to 15 cent increase in the price of gasoline over the next couple weeks. As of Tuesday, the average U.S. gas pump price was $3.099 per gallon. This is unchanged from Monday's $3.097. The American Automobile Association reported that they were still about 8% less than a year earlier. AAA's spokesperson stated that it was difficult to predict the impact of tariffs in the future on gas prices. Other factors could also have an effect. She said that "tariffs can have an impact on gas prices but other factors, such as the price of crude, are also important. Right now, the price is low." Representatives of the oil industry have stated that they are against the tariffs as they increase costs for the industry. Imposing tariffs to energy, refined products and petroleum chemical imports won't make us more secure in our energy supply or reduce costs for consumers. (Reporting from Nicole Jao, New York; Additional reporting by Shariq Khan; Editing by Nia W. Williams)
-
Glass Lewis, a proxy adviser, sticks to diversity advice and will flag up risks
Glass Lewis, a proxy adviser in the United States, will continue to take boardroom diversity into account when advising clients how to vote during annual meetings of U.S. companies. However, Glass Lewis plans to make it clearer what the opposing argument is for crucial vote recommendations so that clients can avoid increasing political risks. Under threat of legal action from the U.S. Justice Department, corporations in the United States have been retreating from their efforts to promote diversity, equity, and inclusion. Glass Lewis' decision to stay largely committed in its commitment to diversity comes after a review of their policies, and Institutional Shareholder Services, a rival proxy advisor firm that made boardroom recommendations last month, announced it would not consider diversity anymore. Glass Lewis, in an email to clients, said that it would stand by the benchmark guidelines 2025 for U.S. Companies, including voting against directors of some of the biggest U.S. firms whose boards do not have gender, racial, or LGBTQ diversity. Glass Lewis says that when it recommends voting against a director for any reason related to diversity it will also provide information which could be used by a client as a basis for recommending he vote differently. Glass Lewis said that "this approach allows Glass Lewis the deliver the vote recommendations clients expect while also clearly flagging potential risks that may result from a vote AGAINST decision and providing a path for some clients to choose to vote FOR this proposal." Glass Lewis' spokeswoman stated that it will also likely provide more context in its recommendations regarding diversity-related shareholder proposal. Glass Lewis and ISS are the two companies that dominate the U.S. marketplace for recommending how investors should vote in corporate meetings, such as on boardroom elections or executive compensation. Glass Lewis has 1,300 clients worldwide, including pension funds, mutual funds, and asset managers who collectively manage more than $40 trillion. Investors, including pension funds and mutual funds that may not have resources to perform due diligence on each company in their portfolio, use these policies. Glass Lewis's note stated that "certainly, we would not have preferred to have to deliberate over long-standing policies on board diversity and DEI shareholders proposals. However, the U.S. Administration’s opposition to DEI forces companies, institutional investors, and their proxy advisers to consider changing, either now or in future." This move is similar to the steps taken by asset managers such as BlackRock and Vanguard who faced criticism over their voting choices and sought to give their clients more control. (Editing by Simon Jessop & Chizu Nomiyama).
-
Israeli forces kill West Bank Hamas leader
Israeli forces killed Hamas leader in Jenin, a West Bank city in Jenin, on Tuesday. They were continuing a week-long offensive against militant groups that had forced tens and thousands of Palestinians to flee their homes. In a gunfight that also saw the death of another Hamas agent, the military claimed to have conducted a raid in order to arrest Aysar Al-Saadi. It said that three other Hamas members had been arrested. The militant group based in Gaza, which also has a strong presence in the West Bank occupied, confirmed al-Saadi's death, but stated that it wouldn't affect their commitment to fighting Israel. The West Bank Operation, which began January, as the fighting in Gaza was stopped following a ceasefire deal brokered by Qatari and Egyptian mediators, is one of the largest operations in the region in recent years. It followed an increase in violence in the area since the beginning of the Gaza war in 2023. Israeli troops demolished houses and infrastructure in refugee camps located in Jenin, Tulkarm, and Tubas in the northern West Bank. Tens of thousands of people were forced to flee, taking with them only the things they could carry. The military cut off the power and dug up roads in eastern parts of Jenin on Tuesday. The military has said that it does not forcefully evacuate Palestinians, but allows residents who wish to leave the combat zones to do so through designated crossings. Palestinians claim that Israeli operations have forced them to leave their homes after they cut off water and electricity and destroyed dozens of houses.
-
Canada strikes back at Trudeau's remarks that Trump's tariffs are "very stupid"
On Tuesday, Prime Minister Justin Trudeau said that President Donald Trump's new tariffs against Canadian imports was "a very stupid thing to do", and Ottawa would strike back immediately. Trudeau said that Canada would impose immediate 25% tariffs against C$30 billion of U.S. imported goods and, if necessary, another C$125 Billion in 21 days. Trudeau said to reporters that there was no need for the tariffs and Canada would contest them at the World Trade Organization as well as through the U.S. Mexico-Canada Trade Agreement. Trump claimed Canada failed to do enough in order to stop the flow of deadly fentanyl and its precursor chemicals to the U.S. Trudeau referred to this argument as "completely false, completely bogus". Trudeau warned Canadians of the coming tough times. He will step down from his position as Prime Minister after Sunday's election for a new leader by the ruling Liberal Party. Economists believe that Canada, which exports 75% of its goods to the United States will be thrown into recession if the tariffs on those products are not lifted. They also claim that Americans will suffer, due to the tight connection between the two economies. The Wall Street Journal stated in late January that if Trump went ahead, he would launch "the dumbest war of trade history." Trudeau stated, "It is not my habit to agree, but the Wall Street Journal points out that, even though you are a smart guy, it's a dumb thing to say." Trump's actions were unprecedented and could severely harm the relationships between the three trading partners. Canada's largest provinces, Quebec, and Ontario, have removed U.S.-made alcohol from their provincially owned liquor stores. Canadian sports fans are now booing U.S. team players. We're going try to buy Canadian goods and will forgo bourbon, and other classic American items. Trudeau added, "And yeah, we will probably continue to boo the American anthem." "But let's tell Americans that we are not booing them, their teams, or players. We are booing an anti-American policy. We're angry and insulted... and we will fight to win. (Reporting and editing by Andrea Ricci, Nia Williams and David Ljunggren)
Sources say that Kazakh overproduction influenced OPEC+ to approve a production increase.
Sources said that as OPEC+ debated if they should keep oil production steady because of weak global demand, or increase it in response to pressure from the U.S. president Donald Trump and internal pressure, a record output from Kazakhstan helped sway their decision.
OPEC, along with its allies, including Russia, a collective known as OPEC+ decided to increase production for the first since 2022. It stated that its decision was based on a healthy market and positive market prospects, without mentioning Kazakhstan.
The group plans to increase production by 138,000 barrels a day starting in April. This is the first of planned monthly increases that will unwind nearly 6 million barrels a day of reductions, which equals nearly 6% global demand.
OPEC+ Member Kazakhstan has reached a new record of production, far exceeding its original target. This was agreed upon with the producer group following the completion of a major expansion by U.S. oil giant Chevron at Kazakhstan's Tengiz Oilfield.
Three OPEC+ members told us that several other members, including Saudi Arabia as the top producer in the group, were upset by the increasing output from Kazakhstan. Three OPEC+ sources refused to identify themselves due to the sensitive nature of the issue.
OPEC headquarters, the Saudi government's communications office and Alexander Novak's office as Russian Deputy Premier did not respond immediately to comments.
Three sources told us that the argument within OPEC+ is that it doesn't make sense to keep limiting production if OPEC+ members themselves are overproducing.
One source said, "This is a very bad thing for the discipline within OPEC+. They (OPEC+), will push Kazakhstan hard to compensate."
The compliance of OPEC+ member countries with their individual production targets under the collective agreement has deteriorated in the last year.
Saudi Arabia's de-facto leader in OPEC, Saudi Arabia has been irritated by the oversupply of oil from Kazakhstan, Iraq and Russia. Saudi Arabia has adhered to its production target and has made the most drastic cuts.
OPEC+ has been able to meet its targets since 2022. The group has asked those members who have produced too much to make deeper cuts over the next few months.
On Monday, OPEC+ announced that its members had pledged to better comply with the agreement and compensate for excess production.
In February, Kazakhstan's crude and condensate production reached a new record of 2,12 million bpd. The OPEC+ quota does not regulate condensate and the quota set for crude production is 1.468million bpd.
OPEC+ named Kazakhstan as one of the countries that consistently produce more crude oil than their quota.
Chevron, Exxon Mobil and BP are the two largest oil companies in Kazakhstan. The government decides the export volumes.
TRUMP FACTOR
Trump's renewed pressure on OPEC to lower prices led to OPEC+'s decision. In his campaign for president, he pledged to lower pump prices in the United States.
Sources said that Trump's public call for more oil to be supplied by OPEC+ did not play a role in the discussions of the group.
Sources said that the production increase suited certain members, such as the United Arab Emirates (UAE) and Russia.
UAE is pushing for an increase in the last two years, as it wants to make use of its increasing spare production capacity.
Two sources stated that Russia believed the OPEC+ would improve its relationship with the U.S. by allowing the increase to go forward.
Helima Crockt, RBC Capital Markets, said that Moscow can appear to be aligned with Washington without fundamentally breaking ranks from OPEC.
Trump changed the U.S. foreign policy towards Ukraine and Russia when he took office in January. He began talks with Moscow to end the war.
If Trump eased sanctions against Moscow as part of the peace process, Russia could benefit from increased revenue and possible exports. (Reporting and editing by Dmitri Zohdannikov and Simon Webb, with additional reporting and editing by Ahmad Ghaddar. Additional reporting and editing by Olesya Almakhova, Vladimir Soldatkin and Maha El Dahan.
(source: Reuters)