Latest News
-
Payment networks highlight spending resilience in upbeat quarter
Mastercard, along with Visa and American Express, posted a quarterly profit that was higher than expected on Thursday. This highlights the resilience of consumers' spending as well as allaying fears of a?slowdown due to growing pressures. Payment processors are the first to provide a window on consumer spending, given their massive market share in facilitating transactions through their networks. The spending has held up despite the concerns about economic uncertainty caused by the Iran War and U.S. Tariffs. Consumer confidence has also weakened in an unproductive labor market. American Express, which is known for having affluent customers, exceeded first-quarter profits expectations last week. Visa posted a quarterly profit on Tuesday. Michael Ashley Schulman is a Partner at Cerity Partners. All three companies' executives aimed to instill confidence in consumers, highlighting that consumer spending has remained resilient even under economic pressures. However, there are growing concerns that the resilience of the economy may be compromised by the rapid rise in energy prices, which is clouding economic forecasts and complicating policy decisions. Spending still resolute Wealthier households continue to spend on discretionary items, while families with lower incomes cut back on non essentials. Experts are increasingly highlighting this bifurcation, as the "K-shaped economy" continues to drive consumer trends and cushion industries like travel and entertainment. Stock markets were initially impacted by the war in Iran, but those losses have been recovered in part in the hope that it will be a short-lived conflict. Market declines usually temper the spending of wealthy consumers. Brian Jacobsen is the chief economist at Annex Wealth Management. Most of the major U.S. banks reported an increase in consumer loan balances earlier this month. This indicates that borrowing is continuing despite macroeconomic pressures which would normally prompt caution. Adam Frisch, Evercore ISI analyst, said that despite the growth in spending, credit quality has not declined. He also noted that delinquency levels have remained fairly stable. Wall Street executives and analysts?have stated that although spending trends are largely stable, the higher gasoline prices prompted?by war could begin to impact some categories. As the Middle East crisis forced closures of airspace and disruptions to key flight routes, it has also impacted travel demand.
-
The top cases in the US Supreme Court docket
The U.S. Supreme Court has been deciding on a number of important cases in its current term. These include voting rights, presidential power, tariffs and birthright citizenship. Other issues are race, transgender sportspeople, campaign finance laws, LGBT "conversion therapies" and federal agency authority. The term began in October, and will run through June. Separately, the court has also acted in emergency cases involving challenges against President Donald Trump's policy. VOTING RIGHTS ACT On April 29, the court gutted a crucial provision of?the Voting Act, making minorities less likely to challenge electoral maps under this landmark civil rights act as racially biased. The court blocked a map that would have given Louisiana a U.S. Congress district with primarily Black constituents. The court's ruling undermined Section 2 in the Voting Rights Act. Congress passed it to prevent electoral maps from diluting the power of "minority" voters. After the Supreme Court gutted another part of the Voting Right Act in 2013, Section 2 gained more importance as a barrier against racial bias in voting. Black voters are more likely to vote for Democratic candidates. Birthright Citizenship The court expressed skepticism about the legality of Trump’s directive on April 1, to restrict the birthright citizenship of Americans. Justices asked the lawyer for the Trump administration questions regarding the legal validity and practical implications of Trump's order. A lower court blocked Trump's executive order that instructed U.S. agencies to not recognize citizenship for children born in the U.S. when neither parent was an American citizen, or a?legal resident (also called "green card") holder. The court found that Trump's policy was in violation of the 14th Amendment to the U.S. Constitution and federal laws codifying birthright citizenship. The Supreme Court will likely rule by the end June. TRUMP'S TARIFS The judges on February 20, 2018 struck down Trump's "sweeping tariffs" that he pursued in accordance with a law intended for national emergencies. This ruling has major implications for global economics. The ruling, which was 6-3 in favor of the lower court decision that Trump had exceeded his legal authority by using this 1977 law, upheld that decision. The court ruled that Trump's claim to have the authority to impose tariffs was not supported by the law in question, the International Emergency Economic Powers Act (IEEPA). Congress has the power to impose taxes and tariffs, not the President, according to the U.S. Constitution. Tariffs are at the heart of a global trade conflict that Trump started after he entered his second term in office. This war has alienated trading partner, affected financial markets, and created global economic uncertainty. TRUMP'S FIRE OF FED OFFICIAL The Justices expressed skepticism about Trump's attempt to fire Federal Reserve Governor Lisa Cook, a move that could threaten the independence of the central bank. The justices said they would not grant Trump's request for a judge to overturn a decision that prevented him from firing Cook immediately while her legal case is being resolved. Congress created the Fed by passing a law, the Federal Reserve Act, that contained provisions designed to protect the central bank against political interference. The law stipulated that governors could only be removed "for cause" and did not specify the procedure for removal. Trump claimed that Cook's firing was due to unproven allegations of mortgage fraud, which she has denied. Cook, who is still in her position for now, said that the allegations were a pretext used to fire Cook over differences of monetary policy, as Trump pressures the Fed to reduce interest rates. The ruling is expected to be made by the end June. PROTECTED STATUS OF IMMIGRANTS On April 29, the justices heard arguments examining Trump's administration's actions to strip humanitarian benefits from hundreds of thousands Haitian and Syrian migrants, as part of his signature crackdown on immigration. The Trump administration appealed two federal judge's rulings that halted its efforts to terminate Temporary Protected Status (TPS), which the U.S. Government had previously granted to over?350,000 Haitians and 6,100 Syrians. Some conservative justices seemed to agree with the administration that courts could not second-guess the decision of the government to end TPS. Some justices questioned also the claim made by the challengers, that the administration had not followed mandatory protocols when making decisions in accordance with the law governing TPS. The ruling is expected to be made by the end June. FEDERAL COMMISSION FIREING The conservative justices of the court have signaled that they will uphold Trump's legality in firing a Federal Trade Commission Member and also give a historical boost to president power, while also putting at risk a 90-year old legal precedent. On December 8, the court heard arguments in the Justice Department appeal of the lower?court decision that the Republican President exceeded his authority by dismissing Democratic FTC member Rebecca Slaughter before her term expired in March. The conservative justices seemed sympathetic to the Trump Administration's argument that tenure protections granted by Congress to independent agency heads unlawfully infringed on presidential powers under the U.S. Constitution. Trump was allowed to remove Slaughter until the case concluded. The court is expected to make a decision by the end June. TRANSGENDER SPORTS PARTIcipation The conservative justices seemed ready to uphold the state laws that ban transgender athletes to female sports teams, amid an escalating nationwide effort to restrict transgender rights. On January 13, the court heard arguments from Idaho and West Virginia in appeals of lower court decisions siding with transgender students. The bans were challenged by the students as being in violation of the U.S. Constitution, and a federal antidiscrimination act. 25 other states also have laws similar to Idaho's. The conservative justices expressed concerns over imposing a uniform law on the whole country, amid a sharp disagreement and uncertainty about whether medications such as puberty-blocking hormones or gender affirming hormones remove male physiological advantages in sport. The ruling is expected to be made by the end June. LGBT 'CONVERSION THERAPEUTY' On March 31, the court rejected a Democratic-backed Colorado Law that prohibited psychotherapists from utilizing "conversion talk therapy" intended to change a LGBT minor's gender identity or sexual orientation. The 8-1 decision sided with the Christian licensed counselor and deemed that the law was an intrusion into free speech rights. The court rejected Colorado’s argument that the law only protected speech, but regulated professional conduct. The court reversed a lower-court's?decision which had upheld a law brought by Kaley Chiles who argued it violated U.S. Constitution protections against government abridgment. HAWAII GUNS LAW The conservatives expressed skepticism about a Hawaii gun law which restricts the carry of handguns in public places, such as businesses. They appeared ready to expand the right to own a firearm again. On January 20, the court heard arguments in an appeal filed by opponents of the law, backed by Trump's administration. The challengers were appealing a ruling by a judge that Hawaii's Democratic backed measure likely conforms to the U.S. Constitution’s Second Amendment right to bear arms. Hawaii's law demands that a property owner "expressly authorize" the bringing of a handgun on private property. Similar laws exist in four other U.S. states. A decision is expected to be made by the end June. Drug Users and Guns On March 2, the justices heard arguments in the Trump Administration's bid to defend a federal statute that prohibits users of illegal drugs in Texas from owning firearms. Hunter Biden, son of former president Joe Biden, was charged under this law in 2023. The Justice Department appealed a ruling by a lower court that the gun restrictions were in violation of the Second Amendment rights to "keep and carry arms" guaranteed under the U.S. Constitution. Gun Control Act 1968 included a prohibition against gun ownership by illegal drug users. The decision is expected to be made by the end June. CAMPAIGN-FINANCE On December 9, the court heard arguments in a Republican led bid to overturn federal spending limits by political parties coordinated with candidates. The case involved Vice President JDVance. The conservative justices seemed to be sympathetic towards the challenge. However, the three liberal members of the court appeared inclined to maintain the spending limits. The debate centers around whether federal limits on campaign spending coordinated with candidates' input violate First Amendment protections against government abridgment. Vance and Republican challengers have appealed the ruling of a lower court that restricted how much money political parties could spend on campaigns, with input from candidates who they support. This type of spending is called coordinated party expenses. The ruling is expected to be made by the end June. MAIL-IN BALLOTS Conservative justices expressed skepticism in a March 23 case against a Mississippi law that allowed a five-day period of grace for mail-in votes received after Election Day. This could lead to tighter voting laws across the country. The Trump administration supported the challenge against Mississippi's law that allows mail-in votes sent by certain voters be counted as long as they are postmarked before Election Day and received within five business days of a federal election. In Mississippi, absentee voting is only available to certain categories of voters. These include the elderly, disabled and those who live away from home. A lower court ruled that the law was unconstitutional. The court is expected to rule by the end June. U.S. ASYLUM - PROCESSING: The court seemed likely to rule in favor?of the Trump administration's defense of its authority to reject asylum seekers when officials deem U.S. - Mexico border crossings to be too overloaded to handle more claims. On March 24, the court heard arguments in a dispute over a policy known as "metering", which Biden's administration dropped in 2021. The Republican president may want to reinstate it. It allowed U.S. Immigration officials to stop asylum seekers and refuse to process their applications indefinitely. The decision is expected to be made by the end June. WEEDKILLER CAUSES CANCER The court seemed divided on Bayer AG’s efforts to stop thousands of lawsuits alleging that the German company failed to warn users of the dangers of the active ingredient of its Roundup weedkiller. On April 27, the court heard arguments in Bayer’s appeal of a Missouri state court jury verdict awarding $1.25million to a man called John Durnell, who claimed he had been diagnosed with non-Hodgkin's lymphoma following years of exposure. The lower court rejected Bayer's argument that U.S. pesticide law bars lawsuits based on claims made under state laws. The ruling is expected to be made by the end June. Human Rights Abuses Around the World The court heard arguments in April 28 on a case that has broad implications for American human rights litigation. Members of the Falun-Gong spiritual movement have accused Cisco Systems, of facilitating religious persecusion in China. Cisco appealed the 2023 ruling of a lower court that gave new life to the 2011 lawsuit brought under the?Alien Tort Statute of 1789. The case accused Cisco of developing technology which allowed China's Government to monitor and persecute Falun Gong Members. Cisco asked the court to limit the scope and application of the Alien Tort Statute which allows non-U.S. Citizens to sue in American courts over violations of international law. The court is expected to make a ruling by the end June. SEC'S DISGORGEMENT POWER The Justices appeared to be inclined to support the U.S. Securities and Exchange Commission (SEC) in a case that tested the limits of one of its key powers. A financial remedy known as disgorgement, it seeks the recovery of profits from illegal activities. On April 20, the majority of justices seemed to be receptive of the Trump administration's defense of the SEC’s disgorgement powers. The ruling is expected to be made by the end June. FCC fines wireless carriers In response to a challenge to the Federal Communications Commission’s regulatory powers by major wireless carriers, the justices seemed inclined to maintain the Federal Communications Commission’s system of levying fines. During the April 21st arguments, the majority of justices appeared to be skeptical about the claim made by a Verizon Communications and AT&T lawyer that the in-house procedures of the Federal Communications Commission deprived them of their constitutional right to a trial by jury. The ruling is expected to be made by the end June. 'GEOFENCE" WARRANTS On April 27, the court heard arguments in a Virginia case over whether law enforcement using a "geofence warrant" to identify suspects based on data from mobile phones near crime scenes is a violation of the Fourth Amendment's bar against unreasonable searches. Geofence warrants approved by the court compel companies, such as Alphabet’s Google in this instance, to search mobile device location data of customers who were close to the crime scene at the time the crime was committed. In this case, a defendant pleaded conditionally guilty to robbing an institution of higher learning while reserving the right to argue against evidence obtained from what he believes was an illegal search. The ruling is expected to be made by the end June. CRISIS PREGNANCY COUNTER The court sided on April 29, with the operator in New Jersey of Christian faith based anti-abortion crisis pregnancy centers that are trying to impede an investigation by the state into whether these facilities engage in misleading practices. First?Choice women's resource centers brought a lawsuit against a subpoena issued by the state attorney general in 2023 seeking information about the organization's doctors and donors. The lawsuit had been dismissed by a lower court. First?Choice is a group of facilities that aims to discourage women from getting abortions. RASTAFARIAN INMAT The conservative justices seemed inclined to reject the Rastafarian inmate's attempt to sue Louisiana state prison officials after they shaved his head in violation of religious beliefs. The case was brought before the court on November 10 under a federal statute protecting people incarcerated from religious discrimination. Plaintiff Damon Landor's religion requires that he let his hair grow. He appealed the decision of a lower court to dismiss his lawsuit, because they found that the statute in question did not allow for him to sue officials individually for monetary damages. The ruling is expected to be made by the end June. DEATH ROW INMATE The court heard arguments in December in an attempt by Alabama officials in order to pursue the execution for an inmate who was convicted of a murder in 1997 after a lower judge found him intellectually disabled, and therefore ineligible to receive the death penalty. The Republican-led state has appealed a lower court ruling that Joseph Clifton Smith was intellectually disabled based upon his intelligence quotient (IQ), test scores, and expert testimony. In a 2002 Supreme Court decision, the court ruled that executing a person intellectually challenged violated the Eighth Amendment of the U.S. Constitution prohibiting cruel and unusual punishment. The ruling is expected to be made by the end June. COX COPYRIGHT DISSENSION On March 25, the court ruled that Cox Communications could not be held responsible for the piracy of songs by its subscribers, owned by Sony Music Group, Warner Music Group, Universal Music Group, and other labels. This ended their multi-billion dollar music copyright suit. The ruling of 9-0 overturned the decision by a lower court to order a trial to determine the amount the internet service provider was liable for the record labels under a form liability known as contributory copyright violation. Cox said that a retrial would have resulted in a verdict of up to $1.5 billion against the Atlanta ISP.
-
Valero will run refineries at 95% capacity by Q2 2026. Conf call
Valero Energy Corporation runs its 13 refineries in the United States and Britain up to 95% their combined throughput capacity of three million barrels per days (bpd). In a conference call held on Thursday, the company revealed that refineries would 'operate between 92% and 95% of their capacity in the second quarter. After a fire and explosion on March 23, the company's Port Arthur, Texas refinery, which produces 380,000 bpd, is reopening its large crude distillation (CDU). The refinery expects to be back to "normal" production by May 1. The small CDU was restarted in April, and several other units were returned to production. Valero stated that the refinery will operate at reduced levels until the large CDU restarts. Valero’s second-quarter levels of throughput reflect not only the restarted refinery at Port Arthur, but also the closure permanent this month of Valero’s refinery in Benicia. The company anticipates that the high refining margins it has gained due to the closure of the Strait of Hormuz during the Iran conflict will continue for at least six months, if not a full year, after the Strait is reopened. Valero estimates that it will take this time to return refined products inventories to their pre-conflict level. Valero has said that the Port Arthur explosion and fire at the hydrotreater could result in higher capital expenditures by 2026. It will also update its guidance when costs and repair timelines become clear. Valero has also made progress with the optimization of the gasoline producing fluid catalytic cracked?at the St. Charles Refinery, Norco in Louisiana. The $230 million project will begin in the third quarter. Refining profits for the company were $1.8 billion compared to a loss of $500 million in 2011. The refining margin per barrel increased from $9.78 to $14.90, while the throughput volume increased by 3.6%. Valero’s renewable diesel saw a profit swing of $139 millions, while ethanol revenue rose to $90 million. Analysts at UBS said: "We think the bear case for Valero ignores the impact of global supply disruptions, and product shortages that resulted on what we consider to be a top-of-class refiner." Phillips 66, a rival company, posted a'surprise first-quarter profit' due to higher refinery margins and capacity utilization. According to LSEG data, Valero, based in San Antonio, Texas, reported an adjusted profit per share of $4.22 for the three-month period ended March 31. This compares with analyst expectations of $3.16, according LSEG.
-
Russian city suffers toxic aftereffects of refinery attack
Residents of Tuapse, a Russian port city, were told not to drink the tap water on Thursday. Schools remained closed as officials dealt with the aftermath following the third Ukrainian drone strike against its oil refinery in the last month. Since Tuesday, the area has been under a state of?emergency? after an attack caused a massive fire to break out at the facility. This cut off production, and released slicks o oil into the water off the Black Sea Coast. The fire was out by Thursday morning. However, oil-stained beaches, polluted waterways and air in Tuapse show just how painful Ukraine's attacks on Russian energy infrastructure can be. The regional task force reported that emergency workers were sent out?on Friday to clean up five newly discovered oily parts of the coastline. The regional task force said that they had'scrubbed up 12600 cubic metres of contaminated materials in Tuapse. The consumer safety watchdog Rospotrebnadzor warned residents that the high levels of benzene in the air should be avoided. The local health authority advised residents on?Thursday? to only drink bottled water, and not to drink from natural springs or taps. This was a precautionary measure. The May holidays have been cancelled. Concerned Locals Some residents have expressed their concern and questioned the assurances of the authorities regarding the situation. "Why not come and try our fresh air?" One person commented Wednesday on a clip from Rospotrebnadzor chief Anna Popova, who said that the situation in Tuapse did not pose any health risks. "Everything's safe and under control!" Another person commented on a blog post that all large-scale outdoor events had been cancelled. Ukraine drones attacked an oil refinery in Perm, Russia, on Wednesday. This was the second attack in as many days on oil facilities located in that area of the Ural Mountains. These strikes are part of Kyiv’s strategy to increase?pressure on Russia over the past few weeks. The aim is to cripple Moscow’s main source of funding for its war in Ukraine as prices around the world have increased due to?the Iran _war. Ukraine claims that Russian forces have been attacking Ukrainian energy sites since many months. This has caused many casualties, and cut off power and heat for thousands of residents in the winter. (Reporting and editing by Keith Weir. Alessandra Prente)
-
Italy extends the reduction in fuel excise duties by three weeks
Italy extended for three weeks the reduction in acquisition duties on fuels to help families, firms and individuals cope with rising energy costs. The government has announced that it will maintain a diesel duty reduction of 0.2 euros per litre, but the petrol duty reduction will be reduced to 0.05 euros. Meloni said at a press conference that diesel prices had risen 24% and petrol by 6% after the cabinet meeting. Italy has spent over 800 million euros to reduce excise 'duties' on both fuels from February 28 until May 1. The economy is struggling with the fallout -of the U.S. and Israel war against Iran. The preliminary figures released by the statistics bureau ISTAT on Thursday showed that Italian consumer prices?inflation increased by almost 3% in April compared to last year. The cabinet approved another package of measures aimed at investing up to 10 billion Euros in real estate projects over the next decade for people with low incomes, with a goal to provide 100,000 homes. BUDGET LEEEWAY Giancarlo Giorgetti, the Economy Minister of Italy, reiterated Italy's call for greater budget flexibility in energy-related expenditures during a discussion on the multi-year financial plans earlier on Thursday. He said that it was "very difficult to defend" (an EU clause) which allowed for budget flexibility for defence and excluded aid measures for the energy crisis. Italy wants to see the European Commission allow member states to reduce energy costs by using budget flexibility that is specifically intended for defence and security spending. In the case of a particularly adverse economic situation, the EU will allow countries to exceed their budget deficit limit or increase their defense spending. The budget flexibility for defence expenditures is available between 2025-2028. However, an increase in deficit cannot exceed 1.5% per year.
-
The US-Iran conflict is heading towards a pivotal deadline with no end in sight
U.S. president Donald Trump faces a Friday deadline to either end the Iran War or convince Congress to extend it. But the deadline is unlikely to change the course of the conflict, which has descended into a standoff about shipping routes. It is highly unlikely that the war will be ended. Analysts and congressional aides say they expect Trump to either notify Congress of his plans for a 30-day delay or ignore the deadline, with the administration arguing that the current ceasefire agreement with Tehran marks the end of the conflict. War powers are deeply partisan. Like many policies in an acrimonious divided Congress, opposition Democrats have called for Congress to assert its constitutional right of declaring war, while Republicans accuse Democrats of trying use War Powers Law to weaken Trump. Since the beginning of the war on February 28, Democrats have repeatedly tried to pass resolutions that would force Trump to withdraw U.S. troops or get congressional approval. Trump's Republicans in the Senate, and House of Representatives who have slim majorities, voted against them almost unanimously. According to the 1973 War Powers Resolution?the U.S. President can only wage military action for 60 days before it ends. He must then come to Congress to seek authorization, or request a 30-day extension if "unavoidable" military necessity is a factor. The Iran conflict began on February 28 when Israel and the United States launched airstrikes against Iran. Trump officially notified Congress 48 hours after the start of the conflict, as required by law, and started the 60-day clock ending May 1. FIRE FRAIL CEASEFIRE A U.S. official said that Trump will receive a briefing Thursday about plans to launch new military strikes against Iran in order to force it to negotiate a resolution to the conflict. Trump could tell lawmakers if fighting continues that he's started a 60-day countdown. This is something presidents of both parties have done many times since Congress passed the War Powers law over Richard Nixon's then-veto in response to Vietnam War. This conflict was also not authorized by the Congress. Iran warned that it would respond to any new attacks by Washington with "long, painful strikes" against U.S. positions. This could complicate Washington's hopes of an international coalition opening the Strait of Hormuz. Six months before the November elections, which will determine who controls Congress in next year's Congress, opinion polls reveal that Americans are unpopular with the Iran War. Trump's approval rating fell to its lowest level in his current term, this month. Americans blamed higher prices on the war and the rising cost of living. Trump still controls his party, and very few Republicans are opposed to his policies. Republicans also strongly support Israel which is also attacking Iran and welcome the weakening Iran as a bitter American enemy. Christopher Preble, senior fellow at the Stimson Center in Washington, said: "It is partisanship plain and simply." "Republicans will not defy President Obama, that's it." 'ACTIVE CONVERSATIONS' The White House is yet to announce its plans or whether it will request that Congress approve an Authorization for the Use of Military Force Against Iran. The administration is actively in conversation with the Hill about this topic. Members of Congress that try to score points by usurping Commander-in Chief's authority will only undermine the United States Military overseas, which is something no elected official would want to do," said a White House Official on condition of anonymity. Only Congress and not the President can declare war in the U.S. Constitution, but this restriction does not apply to short-term operations, or countering an immediate threat. Some Republicans who have previously voted against war power resolutions said they might reconsider after May 1. John Curtis, a Republican senator from Utah, wrote an article in which he said he supported Trump’s actions but that he would not continue military action past the deadline without congressional approval. Others, however, said that they would wait. John Thune, South Dakota's Republican majority Leader, said that it would be ideal if Washington, Tehran and other countries could come to a peaceful agreement. He told reporters, however, that he had not ruled out the possibility of a vote on authorizing war. "We are listening and trying to stay dialed in, getting regular updates from administration on forward progress," Thune told reporters. Chuck Schumer, the Democratic Senate leader from New York, has sponsored resolutions to end war. "Republicans are aware that Trump's handling this war was a disaster. "They see how much American people are suffering right now," he stated in a Senate address, referring the sharp rises in gasoline prices and other costs. How many War Powers Resolutions must Democrats introduce before Senate Republicans act? Schumer asked. (Reporting and additional reporting by Steve Holland, Alistair Bell and Don Durfee; edited by Don Durfee)
-
The US wants to borrow about 92.5 millions barrels of Strategic Petroleum Reserve
The Trump administration wants to lend up to 92.5 million barrels of oil from the Strategic Petroleum Reserve to energy companies to help calm down oil markets which have risen due to the war against Iran. In March, the U.S. agreed to lend 172 million barrels of oil from the SPR. This was part of a larger agreement?with over 30 countries that are members of the International Energy Agency. The agreement also included the release?of about 400 million 'barrels? to relieve the markets. Fatih Birol is the head of IEA and he has stated that the 'war has caused the worst supply disruptions in history. The U.S. had offered 126,000,000 barrels of crude in three batches until Thursday, but the oil companies took only less than 80,000,000 barrels. If all oil companies accept the new offer, it would meet U.S. goals of lending 172 million barrels. The rising oil prices pose a threat to the fellow Republicans of President Donald Trump in November's midterm elections. Prices have increased despite the use of reserves. On Thursday, global oil prices briefly reached a four-year peak of $126 per barrel on fears that the Middle East could be subjected to prolonged disruptions in supply. The Department of Energy claims that the system will help stabilize the markets at no cost to American tax payers. The SPR is a collection of salt 'caverns' located at four locations on the coasts of Texas and Louisiana. It holds 398 million barrels or roughly what the entire world consumes in four days. (Reporting and editing by Timothy Gardner and Katharine Jones; Caitlin Weir, Franklin Paul, and Keith Weir).
-
ArcelorMittal expects EU steel imports to remain high
ArcelorMittal’s chief financial officer said that steel imports into the European Union will remain high during the second quarter as buyers rush to get material into the bloc before tighter safety measures are implemented. GenuinoChristino stated that imports were still high at the beginning of the second quarter, even after they had dipped in the first. He said that despite the fact that imports were down in the first quarter, evidence indicates?that they are still high at least for the start of quarter 2. In July, the?EU will implement a new policy that will reduce steel import quotas by half. Christino stated that higher freight rates and shipping times, 'linked to disruptions from the Middle East war' were unlikely to delay arrivals. The European Steel Association (also known as 'Eurofer') warned in March of an import share of 29% of the EU steel market by?the third-quarter of 2025. According to LSEG, the Luxembourg-based firm posted a first-quarter 'core earning' of $1.68billion, which was just a little bit higher than analysts' estimates of $1.65billion. (Reporting from Gdansk by Javi Larranaga; editing by Matt Scuffham).
Russian city suffers toxic aftereffects of refinery attack
Residents of the Russian city of Tuapse were ordered to not drink the tap water on Thursday as the authorities dealt with the aftermath following the third Ukrainian drone strike on the oil refinery in the port. Since Tuesday, the area has been under a state-of-emergency after the attack caused a massive fire to break out at the oil refinery, which cut off production and released slicks into the Black Sea.
The fire was out by Thursday morning. However, oil-stained beaches, polluted waterways and air in Tuapse show how the escalating Ukrainian attacks on Russian energy installations can have a devastating impact.
Regional task force reported that emergency workers were deployed on Thursday to clean up five newly discovered oil-hit areas of the coast. The regional task force said that they had cleaned up an estimated 12,600 cubic meters of oil-contaminated material at Tuapse.
Rospotrebnadzor, a consumer safety watchdog, advised residents to limit their time outside and close windows due to elevated levels of benzene in the air. As a precaution, the local health authority advised residents to only drink bottled water. The May holidays have been cancelled.
Concerned Locals
Some residents have expressed their concern and questioned the assurances of the authorities regarding the situation.
"Why not come and try our "fresh air?"?" One person commented Wednesday on a clip in which Rospotrebnadzor chief Anna Popova said that the situation in Tuapse did not pose any health risks.
"Everything's safe?and under control!" Another person posted on a blog about the cancellations of all large-scale outdoor events. Ukrainian drones attacked an oil refinery in Perm, Russia, on Wednesday. This was the second attack in as many days on oil facilities near the Ural Mountains.
These strikes are part of Kyiv’s strategy to increase?pressure on Russia over the past few weeks. The aim is to cripple Moscow’s main source of funding for its war in Ukraine as prices around the world have increased due to?the Iran _war. Ukraine claims that Russian forces have been attacking Ukrainian energy sites since many months. This has caused many casualties, and cut off power and heat for thousands of residents in the winter. (Reporting and editing by Keith Weir. Alessandra Prente)
(source: Reuters)