2025-07-04 00:43

HOUSTON, July 3 (Reuters) - The arbitrators in a legal dispute between Exxon Mobil (XOM.N) , opens new tab and Hess (HES.N) , opens new tab have reached a decision related to a major oilfield project in Guyana, according to two sources familiar with the matter. The ruling will determine whether Chevron (CVX.N) , opens new tab can move forward with its $53 billion planned acquisition of Hess. Sign up here. The Paris-based International Chamber of Commerce, which is overseeing the arbitration case, is now reviewing the decision before it is released to the parties. It is unclear what the arbitrators decided or when the decision will be released. "We remain confident in our position and appreciate the arbitration panel giving this issue the due consideration it deserves," an Exxon spokesperson said in a statement. Hess, Chevron and the ICC did not immediately respond to requests for comment. Chevron struck its deal to acquire smaller U.S. oil producer Hess in October 2023, with the prize being the latter's 30% stake in the prolific Stabroek block in Guyana that is operated by Exxon with a 45% interest. The closing of the acquisition has been delayed due to arbitration claims from Exxon and CNOOC (600938.SS) , opens new tab, the other minority partner in the joint venture, who argue that they have a contractual right of first refusal to purchase Hess' stake in the Stabroek block. CNOOC did not immediately respond to request for comment. Chevron and Hess argue the clause does not apply to the sale of the whole company. If they lose the arbitration or are unable to agree on an acceptable resolution with Exxon and CNOOC, the acquisition would fail, according to the terms of the deal. The stakes are high for Chevron. Acquiring Hess is key to Chevron CEO Mike Wirth's strategy to improve the company's performance. Gaining access to the Stabroek block would provide a valuable addition to Chevron's declining oil and gas reserves. https://www.reuters.com/business/energy/arbitrators-exxon-hess-dispute-over-chevron-deal-have-reached-decision-sources-2025-07-04/

2025-07-04 00:29

July 4 (Reuters) - AGL Energy (AGL.AX) , opens new tab said on Friday it had acquired South Australia's Virtual Power Plant (SAVPP) from Tesla (TSLA.O) , opens new tab, as the Australian power retailer looks to ramp up its battery storage capacity to drive green energy transition. The deal comes as AGL seeks to fulfil its promise of exiting coal-fired generation and achieve net zero carbon emissions by 2035, targeting 1.4 gigawatts of grid-scale battery storage projects in the next year. Sign up here. The acquisition of SAVPP, one of the largest virtual power plants in Australia, will allow AGL to access a network of residential solar and battery systems comprising of about 7,000 Powerwall home batteries, with more expected to be installed this year. SAVPP is a network of solar and Powerwall home battery systems, installed on South Australian social and community housing which will now be owned by AGL. Under the program, customers will receive significantly discounted energy prices and the company will be exploring ways to expand the program to more users, it said in a statement. "We know that upfront costs of installing solar and batteries can be a significant barrier for many, and we are focused on how we can make these more accessible," AGL Chief Customer Officer Jo Egan said. The solar and battery assets under the program will be coordinated to work together, and also used to help stabilise the electricity grid where required, the company said. The company did not disclose the value of the deal, while electric vehicle maker Tesla did not immediately respond to a Reuters request for comments on the deal value. https://www.reuters.com/business/energy/agl-energy-buys-south-australias-virtual-power-plant-tesla-2025-07-04/

2025-07-04 00:09

BENGALURU, July 4 (Reuters) - Easing inflation and a slowing economy will prompt the Reserve Bank of Australia to ease policy more than predicted in May, according to a Reuters poll of economists who expect the central bank to deliver a third 25 basis point rate cut on Tuesday. Financial markets and economists had previously forecast three RBA rate cuts this year but then in May raised their projections to four and now see five, a shift driven by inflation falling faster than expected and a weakening growth outlook. Sign up here. A strong majority of economists, 31 of 37, predicted the RBA will cut its official cash rate (AUCBIR=ECI) , opens new tab by 25 basis points to 3.60% at the end of its two-day meeting on July 8. Six expected no change, the survey showed. "The May meeting was notably more dovish in the outlook and that's going to manifest in cutting in July. I suspect the RBA will keep the option open for further easing and that's why there will be a follow-up cut in August," said Philip O'Donaghoe, chief economist for Australia and New Zealand at Deutsche Bank. "The post-COVID inflation surge is pretty much entirely out of the economy. And so the RBA's task now is to make sure we can get the growth that will keep the labour market strong...(so) the risk is we see more cuts." Over 60% of respondents in the June 30-July 3 Reuters poll, 23 of 36, forecast another quarter-point cut this quarter, taking the cash rate to 3.35%. While the median forecast pointed to a year-end cash rate of 3.10%, there was no clear consensus among economists on where the rate would end 2025: 16 of 33 projected 3.10%, 15 expected 3.35%, one each saw 3.60% and 2.85%. Australia's major banks - ANZ, CBA, NAB and Westpac - were similarly split, underscoring the uncertainty around the final leg of the RBA's easing cycle. The economy is forecast to grow 1.6% this year and 2.3% in 2026, a downgrade from 2.0% and 2.4% from the April poll, the poll predicted. Official data showed the economy expanded just 0.2% in Q1 2025, a slowdown from 0.6% in Q4 2024. "A large part of the reason why the RBA has now found itself on a rate-cutting path that's steeper than what it would have thought at the beginning of the year is because...consumption has been softer than the RBA anticipated," said Luci Ellis, chief economist at Westpac. Some economists flagged the lack of a trade deal ahead of the July 9 expiry of a 90-day pause on U.S. President Donald Trump's sweeping tariffs on trading partners announced in April as a downside risk to the economy and RBA rates. "If some of those global headwinds...feed through into more precautionary saving from households, then that could spur the RBA to deliver a little bit more support," said Taylor Nugent, senior economist at NAB. Inflation, which cooled to 2.1% in May from 2.5% at the start of the year, was expected to average 2.6% in 2025 and 2.7% in 2026. That is within the RBA's 2-3% target band but near the upper bound. Despite deeper rate cut expectations, the Australian dollar has gained over 6% so far this year, lifted by broad U.S. dollar weakness, and was forecast to strengthen about 2% over the next six months, a separate Reuters poll found. (Other stories from the July Reuters global economic poll) https://www.reuters.com/world/asia-pacific/rba-expected-cut-rates-third-time-july-8-economy-slows-2025-07-04/

2025-07-03 23:32

CAMPINAS, Brazil, July 3 (Reuters) - Global coffee supply could improve in three years as new plantations spurred by record high prices start producing, International Coffee Organization (ICO) Executive Director Vanusia Nogueira said on Thursday at an event in Brazil. The outlook, however, depends on market conditions remaining favorable enough for farmers to maintain their crops, Nogueira told journalists at an event organized by the Brazilian coffee exporters group Cecafe. Sign up here. WHY IT'S IMPORTANT Global coffee supply is tight as several years of production deficits, impacted by extreme weather in key producing regions, push prices up. KEY QUOTES Nogueira said it could take about three years for new coffee plantings to ease supply pressures. "These are plantations that will start producing in about three years, so then, in three years, we should have some additional supply." WHAT'S NEXT Nogueira said the end of successive deficits in the global coffee market could happen in 2026, depending on the weather in the main producing countries, such as Brazil, Colombia and Vietnam. "I think (the end of the deficits) will depend a lot on this climate issue," said Nogueira, noting that there is still some risk of frost for Brazil's crop in July. https://www.reuters.com/world/americas/global-coffee-supply-relief-possible-three-years-ico-head-says-2025-07-03/

2025-07-03 23:32

LONDON, July 4 (Reuters) - Britain is launching its first ever onshore wind strategy, designed to boost renewable power capacity and increase jobs in the sector, the government said on Friday. Britain is aiming to largely decarbonise its electricity sector by 2030 as part of efforts to meet its climate goals, boost energy security and reduce power costs by curbing its reliance on expensive fossil fuels. Sign up here. “Rolling out more onshore wind is a no-brainer – it’s one of our cheapest technologies, quick to build, supports thousands of skilled jobs and can provide clean energy directly to the communities hosting it,” Energy Minister Michael Shanks said in a statement from the Department for Energy Security and Net Zero. The government said the move could help create around 45,000 jobs. Under the strategy it is launching 40 actions to help boost onshore wind projects such as offering funding for things like football pitches or libraries in communities hosting the projects, working to repower existing wind turbines coming to the end of their lifespans and improving the planning process for new projects. “The measures outlined will increase confidence among investors and developers, so that we can attract billions in private investment and create thousands of highly-skilled jobs and new supply chains all over the country,” James Robottom, Head of Onshore Wind Delivery at industry group RenewableUK said in the government statement. Britain currently has around 16 gigawatts (GW) of onshore wind power but is targeting 27-29 GW by 2030. https://www.reuters.com/sustainability/boards-policy-regulation/britain-launches-strategy-expand-onshore-wind-create-jobs-2025-07-03/

2025-07-03 23:27

QUITO, July 3 (Reuters) - Ecuadorean state oil company Petroecuador declared force majeure on all operations, including crude exports, after two key pipelines suspended pumping, the firm's head said on Thursday. The state-owned SOTE and OCP oil pipelines suspended pumping earlier this week to protect infrastructure threatened by heavy rains, which sped up erosion in the Amazonian province of Napo. Sign up here. "Force majeure has been declared so that (Petroecuador) can act with all the tools necessary," Petroecuador chief Leonard Bruns said. The company also said it had begun shutting down oil wells in the region due to the pause in transport operations. Ecuador's crude production fell some 133,000 barrels per day (bpd) since the operations were paused, according to a report published on Thursday by the nation's Hydrocarbons Regulation and Control Agency. The erosion, which began along the Coca River in 2020, has since expanded, damaging oil infrastructure and roadways and now threatening the Coca Codo Sinclair hydroelectric plant, the largest in Ecuador. Authorities said temporary bypasses are under construction on both pipelines to resume operations, while studies have been authorized for permanent rerouting to avoid the impacted area. https://www.reuters.com/business/energy/ecuadors-state-oil-company-petroecuador-declares-force-majeure-its-operations-2025-07-03/