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Caribbean Islands seek $200 million to push regional biodiversity
Grenada's Climate Ambassador said that a?group of Caribbean nations plan to raise $200m for a bid to?"boost biodiversity" in an effort to gain a?more influential position on international financed environmental projects?to maximize their impact. The 30X30 initiative of the Organisation of Eastern Caribbean States and its 12 member states is part of a broader international drive to achieve targets agreed in 2022. These include protecting 30% of land and ocean by 2030. Safiya sawney stated that she hoped such cross-border projects, which are under government oversight from the beginning, would be more successful as they leveraged the power of multilateral and bilateral funding, as well as philanthropic, private sector, and philanthropic tools, such as debt for nature swaps. CARIBBEAN ISLANDS SEEK ENVIRONMENT?FINANCE PAY While $650 million was raised for conservation in member countries over the next 20 years, the governments had to often consider the 'priorities of multilateral donors before their own. Some donors duplicated?efforts due to a lack of coordination. From the outside, you might say: "Wow, that's quite a bit of money. Why do you want more? In an interview she gave last week, she said that the issue is "that we don't see that impact". In a report by the Back to Blue Initiative, which focuses ocean sustainability policy on regional approaches, such as "OECS 30X30", it was suggested that these regional approaches could be transformative for closing a large funding gap. According to the Global Center on Adaptation, SIDS (Small Island Developing States)?worldwide – which will bear most of the impact of rising sea levels – need $12 billion a yearly to adapt to climate change. They only get $2 billion. Sawney stated that there is a "huge disconnect" between what governments have invested time and effort into planning for their own circumstances and what donors are funding. We're challenging them by saying 'No', 'you need to do better work if you want to make sure that your money is stretched. You must trust us and believe that we will do what we would need to for ourselves. Sawney stated that, in light of the fact that development aid budgets have been 'cut by richer countries,' it is important to scale up projects regionally and attract private investors. "For us, this programme is very, very important, because we have to show non-traditional investors that we are a good investment." (Reporting and editing by Kevin Liffey; Simon Jessop)
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After attacks on Gulf shipping and Iran warnings, oil prices jump, and shares plummet
Global shares fell Thursday, as the attacks on oil tanks in the Gulf and the?warning from Iran dashed hopes of a de-escalation imminent in the Middle East conflict. Oil prices briefly rose to $100 per barrel and inflation concerns were stoked. Wall Street's indexes have fallen. The Dow Jones Industrial Average dropped 1.2% in early trading. The STOXX600 pan-European equity benchmark fell 0.6%. The MSCI All-World Index fell by almost 1%. Investors were not reassured by the International Energy Agency’s announcement on Wednesday that it would release 400 million barrels from its oil reserves. This was the largest move of its kind in its history. Brent crude futures rose as high as 10.4%, to $101.59 per barrel, before trimming their gains. Investors were still unsure if reserve releases would be sufficient to cushion the impact of the Middle East supply crisis. Brent crude was last around $100 per barrel, with U.S. crude futures trading at $94.76. This is an 8.6% increase. "Even though the reserves may be large, it is not known how quickly they will reach markets. Joel Hancock is an energy analyst with Natixis CIB. He said that a market 'balanced' via strategic stock releases would be less efficient logistically. IRAN WARNS ABOUT FRESH ATTEMPTS AS STRIKES ARE CONTINUED ON OIL SHIPMENTS Iran will avenge the blood of its martyrs and keep the Strait of Hormuz shut, said Mojtaba Khmenei, in his first public remarks since succeeding to his father. Iraqi officials reported that two fuel tanks in Iraqi waters had been struck by Iranian boats carrying explosives, and an Iraqi official informed state media of the oil ports' "complete shutdown." The market is still very worried about what's happening in the Strait of Hormuz. And the information we have received in the last 24 hour are not good," said Rodrigo Catril a senior FX Strategist at NAB. Iran had earlier intensified its attacks on merchant vessels in the Strait of Hormuz. The number of ships that have been hit in the area since the fighting began has now reached at least 16 Iran has warned that oil will soon be priced at $200 a barrel. However, U.S. Energy secretary Chris Wright stated on Thursday that this is unlikely to happen. Inflation?RISKS Data released on Wednesday revealed that the?U.S. The consumer price index increased 0.3% in the month of February, which was in line with expectations and higher than January's 0.2% rise. However, the report was not considered particularly relevant, given that inflation has been fueled by the Iran War. Globally, bond yields rose as the threat of inflation outweighed concerns about safe havens. Yields on 10-year Treasury Notes rose 2.8 basis point to 4,234% after a 7-bps jump overnight. According to economists surveyed by, the U.S. Federal Reserve is expected to cut interest rates in June for the first time since last year. Nearly 40%?economists predict only one or no rate reduction this year. This is almost double the number of economists who predicted three or more. Investors were nervous and sought out the dollar's liquidity, while shunning currencies of countries such as Japan and most of Europe that are net importers of energy. The euro fell 0.35%, to $1.152. The dollar was slightly higher at 159.06 Japanese yen. Reporting by Lawrence Delevingne, Niket Nishant, Stella Qiu, and Kirby Donovan in Sydney. Editing by Mark Potter.
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Nepal rations cooking gas in panic over shortage
An official said on Thursday that Nepal would begin rationing cooking gas due to fears of a possible nationwide shortage caused by the Middle East conflict. Chandika Bhatta, executive Director of the state-run Nepal Oil Corporation said that authorities will only refill half of empty cylinders of consumers starting Friday in order to extend the life of its liquefied petrol gas (LPG). The shortage of liquefied petroleum gas (LPG) is due to the U.S. and Israeli war against Iran, and Tehran's response across the region. This has effectively stopped shipping through the Strait of Hormuz. Bhatta said that despite assurances from Nepal that there were enough LPG supplies, consumers are panicking. Bhatta said that rationing would end the rush to hoard and panic. Long queues of consumers with empty cylinders formed outside the?refilling facilities throughout the country. The country is totally?dependent upon?India to supply its fuel supplies, including cooking gas. Officials stated that Nepal requires about 45,000 cylinders containing 14.2 kg of cooking gases every month. There was no disruption in supply. Bhatta stated, "We get regular supplies of fuel including cooking gas in accordance with our needs."
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After attacks on Gulf shipping and Iran warning, oil prices jump, shares fall
Global stocks fell on Thursday, as the attacks on oil tankers and the warning from Iran undermined the prospects for an imminent deescalation of the Middle East conflict. Oil prices briefly rose above $100 per barrel and inflation fears were stoked. The'reaction' shows how quickly bets placed on an early end to the 'war which gained momentum earlier in the week are being unwound. The contradictory messages of U.S. president Donald Trump has left traders fearful that they will be caught off guard, causing them to stay away from the markets or find refuge in safe havens. Wall Street stock indexes fell. Early trading saw the Dow Jones Industrial Average fall 1.26%. The S&P 500 fell 0.82%. And the Nasdaq composite lost 0.77%. The STOXX 600 index, which is a pan-European benchmark for equity prices, fell by 0.5%. The MSCI All-World Index fell by nearly 1%. Investors were not satisfied with the International Energy Agency’s announcement on Wednesday that it would release 400,000,000 barrels of oil from its reserves. This was the largest move in its history. Brent crude futures rose as high as 10.4%, to $101.59 per barrel, before trimming gains as concerns remained over whether the release of reserves would be sufficient to cushion the blow from the Middle East shock. Brent crude was last around $99 per barrel, with U.S. crude futures trading at $93.87. This is 7.6% more than the previous day. "Even though the reserves may be large, it is not known how quickly they will reach markets. Joel Hancock is an energy analyst with Natixis CIB. He said that a market that's balanced by strategic stock releases will be "far less logistically efficient". Attacks on Oil Shipments Continue Iraqi officials reported that two fuel tanks were hit by explosive-laden Iranian boats in Iraqi waters early on Thursday morning. An Iraqi official also told the state media their oil ports had "completely halted operations." Bloomberg News reported Oman had evacuated its main oil export terminal, Mina Al Fahal, as a precautionary move. Rodrigo Catril is a senior FX Strategist at NAB. He said, "The market continues to be very concerned about what's happening in the Strait of Hormuz and the information we have received over the past 24 hours does not make for a good read." It reemphasizes that we should be concerned about this, and that the oil prices are likely to go up from here instead of going down. Iran increased its attacks against merchant ships in Strait of Hormuz. Since the start of the fighting, at least 16 ships have been hit in this region. Tehran has warned the world that oil will soon be priced at $200 per barrel. Inflation Risks The U.S. Consumer Price Index rose 0.3% in February, according to data released on Wednesday. This was above the 0.2% rise seen in January. However, the report was not considered particularly relevant, given that inflation has been fueled by the Iran War. Globally, bond yields rose as the inflation risk outweighed any concerns about safe havens. The yields on 10-year Treasury bills rose by 4.3 basis points on Thursday to 4.206%, after a 7-bps jump overnight. Fed?funds Futures continued to fall as investors worried that higher inflation would make the Federal Reserve's policy more difficult. The markets are betting that the Fed will only make one rate cut this year. The markets speculate that the European Central Bank's next rate move could come as soon as June, due to the threat of energy-driven inflation. Investors on edge sought out the dollar's liquidity, while shunning currencies of countries which are net energy consumers. This includes Japan and most of Europe. The euro fell 0.3% to $1.153. The dollar was slightly higher at 158.96 Japanese yen. (Reporting from Lawrence Delevingne, Niket Nishant, and Stella Qiu, in Boston; editing by Susan Fenton and Keith Weir, and Mark Potter).
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Russell: Crude oil futures are not in line with reality, as the Asia physical market collapses.
Crude oil futures prices'reflect a view of the market that it can successfully navigate through the Iran War, while the prices for physical cargoes or refined products signal an imminent crisis. One of these signals is not the case in the paper oil market. Brent crude futures for the global benchmark ended Wednesday at $91.98 per barrel, an increase of 4.8% over the previous close, but down from the brief spike that occurred on March 9, when they reached $119.50 - the highest price in almost four years. On the physical market, on Wednesday the premium of a physical cargo containing Middle East benchmark Dubai oil over its paper counterpart rose to nearly $38 per barrel, the highest level since Russia's invasion of Ukraine in 2022. The paper oil traders appear to be believing the rhetoric of U.S. president Donald Trump and certain members of his administration, that the campaign against Iran was going well and that there is no threat to oil and products shipments through Strait of Hormuz. The traders also seem to think that the International Energy Agency's record release of 400 million barrels from its stockpiles would help with some supply disruptions. The current problems cannot be resolved by political leaders' comments that are disconnected from reality. As long as the Strait of Hormuz is effectively blocked, the situation will only worsen and accelerate. It is particularly the case that Asia takes the majority of the 18 to 20 million barrels of crude oil and products per day (bpd), which flowed across the Strait before the U.S. launched an aerial campaign on Iran on February 28, 2008. System Breaking Prices for crude and refined products reflect the stress that is already being felt in Asia's supply chains. On Wednesday, the premium for a bar of cash Dubai crude compared to paper swaps rose $4.17, to $37.87, a new high not seen since Russia's invasion of Ukraine. This event also sparked fears of an oil shortage as Western buyers stopped purchasing Moscow's crude. The main difference between the Russian invasion in Ukraine and the conflict in Iran today is that there was not a real shortage of oil in 2022. Instead, the flow of Russian crude was redirected to China and India. The current situation, however, is very different. Even the rerouting of crude oil exports from the Gulf into the Red Sea port of Saudi Arabia and the United Arab Emirates' facility in the Gulf of Oman are not enough to compensate for the effects of the Strait of Hormuz closure. The problem in Asia is not only the crude supply, but also the tightness of refined products. This is quickly becoming a major issue for countries like Australia, Indonesia, and New Zealand that import oil. Some refineries in Asia have cut processing rates, and others, like China, are limiting fuel exports to meet domestic demand. The price of refined products is rising, and the cash difference for diesel is increasing. Singapore hit a new record high of 28.69 dollars a barrel Wednesday. This price reflects a 'premium over paper prices for physical cargoes. It has risen from 84 cents per barrel on February 27th, the day before the U.S. and Israel attack Iran. Jet kerosene is a similar case. Spot prices reached a record high on March 4 of $225.44 per barrel, before falling to $157.12 on the following Wednesday. This price is still 68% higher than $93.45 on February 27. The physical crude markets and product prices in Asia indicate that the supply chain has 'buckled' and will only get worse as more countries begin to hoard fuel and crude. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
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South Korea will cap fuel prices starting Friday in order to ease consumer burden
South Korea announced on Thursday that it would cap the domestic fuel prices starting Friday in order to combat an increase in energy costs resulting from the conflict?in the Middle East. South Korea, Asia's fourth largest economy and a country that relies on imported energy for its needs, is making this move to try to mitigate the impact of the Middle East oil crisis. South Korea has set the maximum wholesale gasoline price at $1.17 per liter. This is below Wednesday's 1,833 won. The price will be adjusted every two weeks in order to reflect the changes in oil prices. The government will introduce a'maximum price' system for petroleum products in order to reduce the?burden to consumers, and to firmly resist attempts to use the crisis as an excuse to raise prices. Finance Minister Koo Yon-cheol stated that. The government stated that the maximum price will be determined by comparing pre-crisis supply prices with global oil prices and taxes. South Korea imports most of its energy. According to Korea International Trade Association data, it buys 70% of its oil from the Middle East and 20% of its LNG. According to the finance ministry, South Korea will also limit the stockpiling petroleum products. Refiners must?release at minimum 90% of the monthly volumes?of petroleum product they released in April and March a year ago. The government has said it will offer financial support to refiners who report losses due to the price cap.
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Aluminum nears four-year peak on Middle East supply concerns
Aluminum prices reached their highest level in almost four years on Thursday, as fears of a tighter supply for 'Europe and other areas' grew. The Middle East conflict is disrupting shipments through the Strait of Hormuz. The benchmark three-month aluminum on the London Metal Exchange increased 0.6% by 1111 GMT to $3,478.50 per metric ton after reaching $3,546.5. This was its highest level since late March 2022. The Middle East war has disrupted the deliveries of alumina and other raw materials to aluminium producers in the region. Norsk Hydro, a Norwegian company, announced on Thursday that its Qatalum aluminum smelter is in Qatar would stop the curtailment begun last week. Production will be maintained at 60% capacity with reduced gas supply. Hydro said it is working to minimize the effects of the curtailment. The rising price of oil is another concern for aluminum producers, as it can account for 40% to 45% in some areas of the cost to melt aluminium. International Energy Agency reported on Thursday that the war in the Middle East has caused the largest oil supply disruption ever. Alastair Muuro, senior base-metals strategist at broker Marex said that the current "short gamma" market profile contributed to the "scale of price movements in aluminium". This is a situation where option dealers sell during market declines, and buy during rallies. He added that "these option?shorts" are also contributing to the violent intraday swings. Copper fell 0.1% among other LME metals to $13,032 per ton. Munro stated that China, the world's largest metal consumer, "has not been active in the copper bid." Nickel added 0.1% and tin 0.8%. Zinc remained at $3,310.50. Lead rose by 0.4% to $2,943.50. Tin gained 0.8%, reaching $49,320. (Reporting and editing by Diti Pjara; Polina Devtt)
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After Gulf Shipping Attacks, oil prices and shares plummet
Attacks on oil tankers in the Gulf have shattered the prospects for an imminent deescalation of the Middle East conflict. Oil prices briefly rose above $100 per barrel, causing inflation fears to rise. The reaction shows 'how quickly bets placed on a quick end to the conflict, which gathered momentum earlier this week are being unraveled. The contradictory messages of U.S. president Donald Trump has left traders fearful that they will be caught off guard, causing them to stay away from the markets or find refuge in safe havens. Investors were not satisfied with the International Energy Agency’s announcement on Wednesday that it would release 400 million barrels from its oil reserves. This was the largest move of its kind in its history. Brent crude futures rose as high as 10.4%, to $101.59 per barrel, before retracing gains as concerns remained over whether the release of reserves would be enough to cushion the blow from the Middle East shock. U.S. Crude Futures traded last at $91,11, up 4.4%. "Even though the reserves may be large, it is not known how quickly they will?be delivered to the markets. Joel Hancock is an energy analyst with Natixis CIB. He said that a market balanced by strategic stock releases would be less efficient logistically. The STOXX 600 - the pan-European equity index – fell 0.4%. Futures for the S&P500 and the tech-heavy Nasdaq100 in the U.S. both fell by 0.5%. The MSCI All-World Index fell by 0.3%. The odds on Polymarket, a prediction market platform, indicated a?25% probability of a truce between the U.S.A. and Iran before March 31. This is down from 45% earlier in the week. Attacks on Oil Shipments Continue Iraqi officials reported that two fuel tanks were hit by Iranian boats laden with explosives in Iraqi waters early Thursday morning. An Iraqi official also told state media the oil ports had "completely stopped operations." Bloomberg News reported Oman had evacuated its main oil export terminal, Mina Al Fahal, as a precautionary move. Rodrigo Catril is a senior FX Strategist at NAB. He said, "The market continues to be very concerned about what's happening in the Strait of Hormuz and the information we have received over the past 24 hours does not make for a good read." It reemphasizes that we should be concerned about this. And the risk is that oil prices will go up from here, rather than come down. Iran increased its attacks against merchant ships in Strait of Hormuz. Since the start of the fighting, at least 16 ships have been hit in this region. Iran has warned that oil will soon be priced at $200 per barrel. Inflation Risks The?U.S. consumer price index rose 0.3% in February, according to data released on Wednesday. This is above the 0.2% increase that was forecasted for January. The consumer price index increased 0.3% in February, which was above the 0.2% rise seen in January. However, the report was not considered particularly relevant, given that inflation has been fueled by the Iran War. Globally, bond yields rose as the threat of rising inflation outweighed concerns about safe havens. On Thursday, yields on 10-year Treasury bills rose by 2.4 basis points at 4.2296% after a 7-bps jump overnight. Fed funds futures continued to fall as investors worried that higher inflation could make it difficult for the Federal Reserve ease policy. Markets bet that the Fed will only cut rates by one more time this year. The markets have speculated that the next rate increase from the European Central Bank may come as soon as June. Investors on edge sought out the dollar's liquidity, while shunning currencies of countries which are net energy consumers. This includes Japan and most of Europe. The euro fell 0.1% to $1.1558. The dollar gained 158.68 Japanese yen. (Reporting and editing by Stella Qiu, Niket Nishant, Edwina Gibbs and Shri Navaratnam; Susan Fenton, Keith Weir, Edwina Gibson and Keith Weir).
The revenue from Russia's biggest oil tax is expected to double in March due to the global price rise
Calculations showed that the proceeds from Russia's mineral extract tax, which is its largest tax item for crude oil production and the country's?largest taxable item, could almost double in March due to the global price rally induced by the conflict in the Middle East.
The global oil benchmarks soared to $119 per barrel on Monday, the highest level since June 2022. This was due to supply cuts from Saudi Arabia and others producers, which stoked fears of a major disruption to global supplies.
The price increase of crude oil, along with the natural gas that it produces, will benefit Russia's state budget.
Calculations show that the mineral tax on oil could bring in 590 billion rubles ($7.43billion) this month, if prices stay at current levels. This is up from an estimated?300 billion last month, and 314 billion in January.
Oil prices rose sharply on Thursday as Iran intensified its attacks against?oil? and transport? facilities in the Middle East. This fueled fears of a long-term conflict and possible disruptions of oil flow through the Strait of Hormuz.
Brent futures rose $6.41 or 7% to $98.45 per barrel at 1235 GMT, after hitting $100 per barrel in earlier trading. U.S. West Texas intermediate crude was up by $5.98 or 6.85% to $93.23.
(source: Reuters)