2025-01-21 05:27

Jan 20 (Reuters) - U.S. President Donald Trump issued a flurry of orders within hours of his inauguration on Monday intended to boost the nation's already record-high oil and gas production and unwind former President Joe Biden's climate agenda. Here are some of the actions Trump took on his first day: ENERGY EMERGENCY Trump declared a national energy emergency, intended to provide him with the authority to reduce environmental restrictions on energy infrastructure and projects and ease permitting for new transmission and pipeline infrastructure. "It allows you to do whatever you’ve got to do to get ahead of that problem," Trump told reporters while signing the order. "And we do have that kind of an emergency." Earlier in the day, he explained the reason for the declaration: "The inflation crisis was caused by massive overspending and escalating energy prices, and that is why today I will also declare a national energy emergency. We will drill baby, drill." He has previously said that surging electricity demand from the technology industry, mainly to fuel artificial intelligence, required a big grid overhaul. LNG PERMITS Trump issued an order for the U.S. to resume processing export permit applications from new liquefied natural gas projects supplying Asia and Europe, effectively reversing a pause Biden put in place in early 2024 to study the environmental and economic effects of the booming exports. U.S. exports of the super-chilled fuel set a record in 2023 and the country is the world's largest exporter of the product. But the pause in new export permits created uncertainty for a slew of projects in the works. Plants in Louisiana awaiting approvals include Commonwealth LNG, Venture Global's CP2, Cheniere Energy's (LNG.N) , opens new tab expansion to its Sabine Pass facility and Energy Transfer's (ET.N) , opens new tab Lake Charles terminal. In Texas, a second phase of Sempra's (SRE.N) , opens new tab project Port Arthur LNG, awaits approval. GOODBYE PARIS Trump ordered the U.S. withdrawal from the Paris climate deal, an international agreement to fight climate change, repeating a move he made in his first term. Trump has called climate change a hoax, and says the accord puts the United States at a competitive disadvantage to geopolitical rivals like China. "I'm immediately withdrawing from the unfair, one-sided Paris climate accord rip off," he said. "The United States will not sabotage our own industries while China pollutes with impunity." OFFSHORE WIND Trump suspended new federal offshore wind leasing pending an environmental and economic review, saying wind mills are ugly, expensive and harm wildlife. "We're not going to do the wind thing," he said. A White House press release said Trump issued an executive action suspending offshore wind leasing from all areas of the U.S. outer continental shelf pending an environmental and economic review. The order is not expected to impact existing U.S. offshore wind projects being advanced by companies including Orsted (ORSTED.CO) , opens new tab, Avangrid, Copenhagen Infrastructure Partners, and Dominion (D.N) , opens new tab. Biden saw wind power as a vital part of his strategy to decarbonize the power sector. EV TARGETS Trump took aim at electric vehicles, revoking a 2021 executive order signed by Biden that sought to ensure half of all new vehicles sold in the United States by 2030 were electric. Biden's 50% target, which was not legally binding, had won the support of U.S. and foreign automakers. Trump said in an executive order he was halting distribution of unspent government funds for vehicle charging stations from a $5 billion fund, called for ending a waiver for states to adopt zero-emission vehicle rules by 2035 and said his administration would consider ending EV tax credits. DRILL, BABY, DRILL Trump signed an executive order repealing Biden's efforts to block oil drilling in the Arctic and along large areas of the U.S. coasts, according to the White House. Trump also repealed a 2023 memo that barred oil drilling in some 16 million acres (6.5 million hectares) in the Arctic, the White House announced. It's unclear if the moves would be sufficient to attract big drillers, who have shied away from the region in recent years due to relatively high costs of development. Biden this month banned new offshore oil and gas development along most U.S. coastlines ahead of Trump taking office. REFILL THE STOCKPILE Trump said he intends to fill strategic reserves "right to the top". That's likely a reference to the U.S. Strategic Petroleum Reserve, the nation's stockpile of crude oil, designed as a buffer against supply shocks. After the invasion of Ukraine, Biden had sold more than 180 million barrels of crude oil from the reserve, a record amount. The sales helped keep gasoline prices in check, but sank the reserve to the lowest level in 40 years. "We will bring prices down, fill our strategic reserves up again, right to the top, and export American energy all over the world," Trump said. He will likely look to Republican lawmakers to give him the money for the oil purchases in the coming weeks. Sign up here. https://www.reuters.com/business/energy/trumps-energy-actions-his-first-day-2025-01-21/

2025-01-21 04:55

Average price seen at 4,350 ringgit/MT in 2025, up 5.4% y/y Malaysia output estimated at 19.5 mln MT Indonesia production projected at 49.8 mln MT KUALA LUMPUR, Jan 21 (Reuters) - Malaysian crude palm oil (CPO) futures are expected to average higher in 2025 than last year, as top producer Indonesia boosts palm oil-based biodiesel consumption, although competition from cheaper rivals is expected to limit the upside, a Reuters poll showed. Benchmark palm oil prices will average 4,350 ringgit ($972.07) a metric ton this year, up 5.4% from 2024, according to a median estimate of 11 traders, analysts and industry participants. The average CPO closing price of 4,128 ringgit in 2024 was 8.7% higher than the previous year, as adverse weather disrupted supply, sending the market to a 2-1/2-year high in November. Indonesia's B40 biodiesel mandate would result in reduced export availability, in return favouring Malaysian palm oil exports, said Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group. "Indonesia's planned increase in the biodiesel blend rate to 40% in 2025 is expected to absorb an additional 1.2 to 1.7 million metric tonnes of CPO," said Malaysian Palm Oil Association CEO Roslin Azmy Hassan. "Reduced palm oil exports from Indonesia, coupled with adverse weather in Southeast Asia, will likely also support higher prices." Roslin Azmy said the market could get an additional boost if Indonesia raises export levy to support its biodiesel policy. To help finance its ambitious biodiesel mandates, Indonesia plans to increase export levy on CPO to 10% from 7.5%, but a regulation is required for that to happen, according to Indonesian officials. Gains in palm oil prices are however likely to be capped by rising supplies of rival soyoil from South America, which has recently been available at a discount to the tropical oil, said a New Delhi-based dealer with a global trade house. Indonesia and Malaysia are expected to see a modest rise in palm oil output in 2025. Indonesia's output is projected to rise 1.9% from last year to 49.8 million tons in 2025, the poll showed. Malaysia, the world's second-largest producer, is forecast to produce 19.5 million tons, up 0.83% from last year and the highest since 2019. Adverse weather, persistent labour shortages and low replanting rates continue to weigh on Malaysia's palm oil output growth potential, industry officials say. ($1 = 4.4750 ringgit) Sign up here. https://www.reuters.com/markets/commodities/palm-oil-prices-average-higher-2025-indonesia-biodiesel-demand-2025-01-21/

2025-01-21 04:51

Jan 20 (Reuters) - Texas ports and pilots, who assist in moving vessels around ports, suspended some operations on Monday as frigid weather conditions hit the state. All of Port Houston's eight public facilities will be closed on Tuesday, Jan. 21, the port said, adding that vessel operations were suspended on Monday and container terminal truck gates were closed from Monday evening. The Brazos Santiago Pilots, who help move ships to the Port of Brownsville and Port Isabel in Texas, were scheduled to halt ship movements just before midnight on Monday as offshore conditions worsened, according to a notice from a shipping agent. The Lake Charles Pilots said they halted operations on Monday evening and will reassess conditions on Wednesday for resumption. The Brazos Santiago did not immediately reply to Reuters request for comment. A winter storm warning is in effect from Monday evening until Tuesday evening for parts of the U.S. Gulf Coast, according to the National Weather Service, with as much as 4 inches to 6 inches of snow anticipated around the Houston area. Sign up here. https://www.reuters.com/world/us/texas-ports-pilots-suspend-some-operations-winter-storm-hits-2025-01-21/

2025-01-21 04:30

MUMBAI, Jan 21 (Reuters) - The Indian rupee strengthened on Tuesday after Donald Trump held off on implementing trade tariffs on his first day as U.S. President but said he is considering levies on imports from Canada and Mexico, prompting the dollar to pare initial losses. The rupee was at 86.4150 against the U.S. dollar as of 09:50 a.m. IST, up 0.2% on the day. While the dollar slumped on Monday after trade tariffs did not feature prominently in Trump's inaugural speech, it bounced back when Trump later said he was thinking of a 25% tariff on goods from Canada and Mexico from Feb. 1. In a presidential memo, Trump directed U.S. federal agencies to probe the risks of large trade deficits "and recommend appropriate measures, such as a global supplemental tariff, or other policies." The dollar index was last at 108.3, up 0.3% on the day, while Asian currencies were mostly stronger. The offshore Chinese yuan rose to an over one-month peak but eventually pared gains to trade at 7.27. "With long U.S. dollar positioning looking stretched, the US dollar is vulnerable to a less aggressive pace of tariff hikes from the Trump administration," MUFG Bank said in a note. Trump, in his election campaign, had proposed tariffs of up to 10% on global imports, 60% on Chinese goods and a 25% import surcharge on Canadian and Mexican products. Traders reckon that the rupee will stay sensitive to moves in the yuan and other regional peers, with the focus squarely on how trade policy shakes out under Trump. Despite some near-term relief for the rupee, persistent foreign portfolio outflows could keep the currency under pressure, a trader at a mid-sized private bank said. Foreign investors have withdrawn over $6.5 billion from local stocks and bonds so far in January, the most in any month since last October. Sign up here. https://www.reuters.com/markets/currencies/rupee-finds-breathing-room-choppy-dollar-obstructs-rally-2025-01-21/

2025-01-21 03:53

WASHINGTON, Jan 20 (Reuters) - President Donald Trump issued an order on Monday for the U.S. to resume processing export permit applications for new liquefied natural gas (LNG) projects, part of an effort to raise U.S. energy output and dismantle his predecessor's climate policies. The Republican's executive order, which was expected, effectively reverses a pause on permits for new projects that former President Joe Biden put in place in early 2024. Biden, a Democrat, paused the approvals so U.S. national laboratories could study the environmental and economic effects of the booming export industry. U.S. shipments of LNG set a record in 2023 and the country is the world's largest exporter of the product. Exports are expected to double by the end of the decade and could double again under existing authorizations, the Energy Department has said. But the pause in new export permits had created uncertainty for a slew of projects in the works, many supplying Asia and Europe. Plants in Louisiana awaiting approvals include Commonwealth LNG, Venture Global's CP2, Cheniere Energy's (LNG.N) , opens new tab expansion to its Sabine Pass facility and Energy Transfer's (ET.N) , opens new tab Lake Charles terminal. In Texas, a second phase of Sempra's (SRE.N) , opens new tab project Port Arthur LNG, awaits approval. Trump's incoming energy team will be tasked with executing his pledge to boost U.S. oil and gas output. Chris Wright, his choice to run the Energy Department which would issue the LNG export permits, led oilfield service company Liberty Energy (LBRT.N) , opens new tab and told senators in his nomination hearing last week that his first priority is to expand domestic energy production including LNG and nuclear power. Doug Burgum, former governor of oil producing state North Dakota and Trump's pick for Interior Secretary, is expected to clear the way for more oil and gas leasing on federal lands. Burgum will head a national energy council to find ways to boost energy output. Sign up here. https://www.reuters.com/business/energy/trump-signs-order-review-applications-approval-lng-export-projects-2025-01-21/

2025-01-21 03:37

BEIJING, Jan 21 (Reuters) - U.S. President Donald Trump has directed federal agencies to assess China's performance under the Phase 1 trade deal that he signed with Beijing in 2020 during his first term at the White House. DETAILS OF 2020 DEAL The deal had required China to increase purchases of U.S. exports by $200 billion over a two-year period, but Beijing failed to meet its targets when the COVID-19 pandemic struck. As part of the deal, the United States cut by half the tariff rate it imposed in September 2019 on a $120 billion list of Chinese goods, to 7.5%. Tariffs originally scheduled for December 2019 on nearly $160 billion worth of Chinese goods, including cellphones, laptop computers, toys and clothing, were suspended. But U.S. tariffs of 25% on $250 billion worth of Chinese goods put in place earlier remained unchanged. Below are details of the deal according to the text of the Phase 1 agreement released by the office of the U.S. Trade Representative. CHINA PURCHASES China agreed to increase purchases of American products and services by at least $200 billion over two years, over a baseline established in 2017, with increased imports of U.S. goods and services to "continue on this same trajectory for several years after 2021." China bought $130 billion in U.S. goods in 2017, before the trade war began, and $56 billion in services, U.S. data show. In 2020, China imported $135 billion of U.S. goods, and a year later, it bought $178 billion, according to data from Chinese customs. INTELLECTUAL PROPERTY The deal included stronger Chinese legal protections for patents, trademarks, copyrights. It contained commitments by China to follow through on previous pledges to eliminate any pressure for foreign companies to transfer technology to Chinese firms as a condition of market access, licensing or administrative approvals and to eliminate any government advantages for such transfers. China also agreed to refrain from directly supporting outbound investment aimed at acquiring foreign technology to meet its industrial plans - transactions already restricted by stronger U.S. security reviews. CURRENCY The currency agreement contains pledges by China to refrain from competitive currency devaluations and to avoid manipulating exchange rates for competitive advantage. Any violations would be subject to the enforcement mechanism for the overall deal, and could trigger tariffs. Both countries also agreed to publish relevant data on exchange rates and external balances on a prescribed schedule. Sign up here. https://www.reuters.com/world/whats-us-china-phase-1-trade-deal-signed-2020-2025-01-21/