2025-01-15 20:31

High winds did not arrive, but extreme fire danger persists Some 6.5 million people under critical fire threat Firefighters battle blazes with international support Critics question city's fire preparation and response LOS ANGELES, Jan 15 (Reuters) - Red Flag warnings advising of extreme wildfire danger expired across the Los Angeles area late on Wednesday, but forecasters warned that dry and windy conditions will persist on Thursday, and that the threat of blazes remained. The National Weather Service added that the respite for fire-ravaged Los Angeles will be short, with high chances for renewed Red Flag warnings - when ideal fire conditions of high winds and low humidity dominate - starting again on Sunday. Some 6.5 million people remained under a critical fire threat, after the fires consumed an area nearly the size of Washington, D.C., resulting in at least 25 deaths so far, authorities said. Firefighters on Wednesday confronted persistently strong and dry winds fueling two giant wildfires that have terrified Los Angeles for eight days, testing the resolve of a city upended by the worst disaster in its history. Officials urged residents to remain vigilant and be prepared to evacuate at a moment's notice with peak wind gusts forecast to last through Thursday afternoon. "We want to reiterate the particularly dangerous situation today. Get ready now and be prepared to leave," County Supervisor Lindsey Horvath told a press conference on Wednesday. Forecasted winds of up to 70 mph (112 kph) did not materialize on Wednesday. Still, firefighters reported winds of 30 to 40 mph (48 to 64 kph) combined with low humidity in a region that has failed to receive any appreciable rain in nine months, meaning fire threats remain. The fires have damaged or destroyed more than 12,000 homes and other structures, and forced as many as 200,000 people from their homes. Some 82,400 people were under evacuation orders and another 90,400 faced evacuation warnings as of Wednesday, County Sheriff Robert Luna said. Entire neighborhoods have been leveled, leaving smoldering ash and rubble. Many homes only have a chimney stack left standing. Some 8,500 firefighters from the western United States, Canada and Mexico have kept the growth of the fires in check for three days. The Palisades Fire on the west edge of the city held steady at 23,713 acres (96 sq km) burned, and containment nudged up to 19% - a measurement of how much of the perimeter was under control. The Eaton Fire in the foothills east of the city stood at 14,117 acres (57 sq km) with containment at 45%. A fleet of air tankers and helicopters dropped water and fire retardant into the rugged hills while ground crews with hand tools and hoses worked to contain the fires. Aerial firefighters - or fire bombers - operate without precision equipment or autopilot, just a pilot's view through the windscreen and his experience. "I call it 'feeling the force,'" said pilot Diego Calderoni, from a New Mexico-based contractor, referring to a mystical energy in the Star Wars films. Hundreds of visiting firefighters and emergency workers are staying outside the Rose Bowl football stadium, a base camp where colleagues build camaraderie in between shifts of 24 hours on followed by 24 hours off. "You're all in it for the same mission," said Martin Macias of the St. Helena Fire Department in Northern California. "We all got into this as service, to make somebody's day better at the worst time." A new fire broke out on Wednesday in San Bernardino County east of Los Angeles, burning 30 acres (12 hectares), Cal Fire reported. Two other fires in Southern California were largely under control. Some Angelenos have been attempting to return to a semblance of normalcy. Students and teachers displaced by wildfire from Palisades Charter Elementary School found a new home on Wednesday at the nearby Brentwood Elementary Science Magnet, where they were welcomed with open arms. "For children who lost homes and also lost their school, it's absolutely devastating. And the way that I can help and the way that I can give back is to make sure that those children have a place to go. And even though we lost the physical building, we still have our community," Palisades Charter Elementary Principal Juliet Herman said. FIRE PREPARATION QUESTIONED While the fires rage on, critics have questioned whether the city properly prepared for fire danger in the face of National Weather Service warnings about hazardous weather, even though firefighters were on alert and able to deploy assets beforehand. Fire Chief Kristin Crowley fielded queries on Wednesday about a Los Angeles Times report that fire officials had opted against ordering 1,000 firefighters to remain on duty for a second shift last Tuesday as fires were beginning to grow out of control. The Times cited critics who said the outgoing shift should have been kept on duty and that as many as 25 additional fire engines should have been moved into hillsides. Crowley defended her department's preparation, saying it was impossible to know exactly where fires might break out and that some firefighters needed to remain in place to field ordinary emergency calls anywhere in the city. "We did everything in our capability to surge where we could," Crowley said. The Times quoted Deputy Chief Richard Fields, who was in charge of staffing and equipment decisions ahead of the fire, as saying the scrutiny was welcome but that critics were too easily second-guessing decisions after the fact. Sign up here. https://www.reuters.com/world/us/wind-gusts-humidity-may-test-firefighters-battling-los-angeles-blazes-2025-01-15/

2025-01-15 20:23

WASHINGTON, Jan 15 (Reuters) - Negotiators reached a phased deal on Wednesday to end the war in Gaza between Israel and Hamas, the U.S. and Qatar said, after 15 months of bloodshed that has killed tens of thousands of Palestinians and inflamed the Middle East. The complex accord outlines a six-week initial ceasefire phase and includes the gradual withdrawal of Israeli forces from the Gaza Strip and release of hostages taken by Hamas in exchange for Palestinian prisoners held by Israel. Here are some investor and analyst reactions to the deal: STEPHEN MASSOCCA, SENIOR VICE PRESIDENT, WEDBUSH SECURITIES, SAN FRANCISCO "It looks like Gaza might be coming to a conclusion, that's bullish. Not much of a reaction, I don't think the market is really focused on it. If we can achieve the same thing in Ukraine, these are all good for the economy, they are good for inflation, they are good for the market, ultimately." PHIL BLANCATO, CHIEF MARKET STRATEGIST, OSAIC WEALTH, NEW YORK "That's a relatively important piece of information. If you think about the incoming administration's commitment, it certainly is to end both wars. But beyond that, turmoil in the Middle East is problematic from the idea of the global price of oil. Stability in the Middle East may takes one of those worries out of the market." ART HOGAN, CHIEF MARKET STRATEGIST, B. RILEY WEALTH, NEW YORK "It's clearly an unambiguous positive for the markets and certainly for global markets. I think it's going to take a bit longer for this to settle in to the news flow, especially in a market that was already up, but this is clearly something that will prove to be an unambiguous positive." "The overarching positive of all of this will likely start settling in the weeks to come, and not necessarily this afternoon." SAM STOVALL, CHIEF INVESTMENT STRATEGIST, CFRA RESEARCH, NEW YORK "Since geopolitical tensions are one of the bricks in this wall of worry that the market is climbing, it's good to have at least one source removed. The only question is whether this can be extended, since tensions always seem to flare up in the Middle East." "Investors now have more than one reason to breathe a sigh of relief today after the CPI data and this news from Gaza. Stock market headwinds are less of a hurricane and more of a gentle breeze." MICHAEL BROWN, SENIOR RESEARCH STRATEGIST, PEPPERSTONE, LONDON "This news was very much expected and had been hinted at quite strongly in recent sessions so shan't have come as a surprise to most participants." "I suppose at the margin it reduces geopolitical risk to a degree, though the question now is how long the ceasefire holds for. The situation in the Middle East, as ever, is a precarious and volatile one, so I doubt anyone will be rushing to buy risk or unwind their safe haven hedges just yet - certainly not with Trump’s inauguration on Monday looming large on the horizon." CHUCK CARLSON, CHIEF EXECUTIVE OFFICER, HORIZON INVESTMENT SERVICES, HAMMOND, INDIANA "Some of it had already been telegraphed in the market, so I don't think it was a complete surprise... If there is any significant impact, it will be an influence on the energy complex." Sign up here. https://www.reuters.com/world/middle-east/quote-box-investor-reactions-gaza-ceasefire-deal-2025-01-15/

2025-01-15 20:11

HOUSTON, Jan 15 (Reuters) - U.S. crude oil stocks excluding the Strategic Petroleum Reserve (SPR) fell last week to their lowest since April 2022 as exports rose and imports fell, the Energy Information Administration (EIA) said on Wednesday. Crude inventories fell by 2 million barrels to 412.7 million barrels in the week ending Jan. 10, the EIA said, compared with analysts' expectations in a Reuters poll for a 992,000-barrel draw. Net U.S. crude imports (USOICI=ECI) , opens new tab fell by 1.3 million barrels per day (bpd), EIA said, to 2.05 million bpd. And weekly crude exports were up 1 million bpd to 4.08 million bpd. "The crude oil draw was largely on import-export dynamics," said Bob Yawger, director of energy futures at Mizuho "The exports are hard to believe, since the WTI/Brent spread was stronger than $3.50 a barrel and all of this happened before the Biden administration's sanctions on Russia," he added. Crude stocks at the Cushing, Oklahoma, delivery hub (USOICC=ECI) , opens new tab rose by 765,000 barrels. "The Cushing build should help with the extreme backwardation. Grim situation but less grim than last week." said Mizuho's Yawger. Brent, U.S. crude futures initially pared gains following the report, then rebounded with Brent futures up $2.28 to $82.20 at 2:44 p.m. EST, while US crude futures were up $2.75 to $80.25. Refinery crude runs (USOICR=ECI) , opens new tab fell by 255,000 bpd in the week, the EIA said. Refinery utilization rates (USOIRU=ECI) , opens new tab fell by 1.6 percentage points 91.7%. U.S. gasoline stocks (USOILG=ECI) , opens new tab rose by 5.9 million barrels in the week to 243.6 million barrels, the EIA said, compared with analysts' expectations for a 2 million-barrel build. U.S. gasoline futures pared gains after the larger-than-expected build in gasoline stocks. Gasoline supplied, a proxy for demand, fell to 8.33 million bpd last week, down from 8.48 million bpd. Distillate stockpiles (USOILD=ECI) , opens new tab, which include diesel and heating oil, rose by 3.1 million barrels to 132 million barrels, their highest since January 2024 and surpassing expectations for an 800,000-barrel rise, the EIA data showed. U.S. heating oil futures extended gains despite the larger-than-expected build in distillate stocks. "A bullish oil draw, a bearish products build, overall looks pretty good for oil bulls considering seasonality," said Josh Young, chief investment officer at Bison Interests. "It is not surprising oil has recovered from the high $60s to the high $70s over the past few weeks. Unless some new supply comes on, or demand falls a lot, prices could be a lot higher this summer," he added. Sign up here. https://www.reuters.com/business/energy/us-crude-oil-stocks-excluding-spr-fall-2-year-low-eia-says-2025-01-15/

2025-01-15 19:19

HOUSTON, Jan 15 (Reuters) - U.S. President-elect Donald Trump plans to make it easier for some producers of liquefied natural gas (LNG) to seek export permit renewals, according to two sources with knowledge of the plan. Trump will likely include the change in an executive order on LNG that he will issue on his first day in office, the sources said. Trump, who takes office on Monday, has said he would issue an LNG order on day one that would end the pause on approvals for new LNG projects that outgoing President Joe Biden put in place in January last year. Several companies have permits to export LNG to countries that are not part of free trade agreements with the U.S. and have yet to build their plants. The companies run the risk of their permits not being renewed, which can endanger their projects. Companies developing LNG plants use preliminary export deals to buyers around the world - and related permits for export - to seek financing for projects. "The move will give them greater certainty and a longer timetable to sell their volumes and raise financing for the project," said Jason Feer, Poten and Partners Global head of business intelligence. The U.S. is the world's largest exporter of the superchilled gas, driven by the shale revolution, and played a key role in providing energy in the wake of Russia's invasion of Europe. In April 2023 the U.S. Department of Energy (DOE) refused to grant export permit extensions to LNG developers that failed to meet a construction deadline. The DOE said it would no longer consider new applications for extensions to seven-year commencement permits, unless companies prove they have physically started construction on an LNG export facility, or faced extenuating circumstances. The decision was made after pipeline company Energy Transfer (ET.N) , opens new tab applied for a three-year extension of its permit to construct an LNG export facility in Lake Charles, Louisiana. The company argued it wanted a second extension due to a variation in the design of the project to include a major carbon capture and sequestration component. Sign up here. https://www.reuters.com/business/energy/trump-end-need-some-lng-export-permit-renewals-sources-say-2025-01-15/

2025-01-15 17:31

LEEDS, England, Jan 15 (Reuters) - Bank of England interest rate setter Alan Taylor said on Wednesday he expected the British central bank to cut interest rates four times in 2025, twice the pace priced into financial markets at the moment. "I think my baseline is close to 100 (basis points)," Taylor said during a question-and-answer session after giving a speech at Leeds University. "I don't think City economic forecasters are missing that. They've mostly got their forecasts in that range." Taylor said a rise in British government bond yields this month represented a headwind for the economy. Sign up here. https://www.reuters.com/markets/rates-bonds/bank-englands-taylor-says-he-expects-four-rate-cuts-2025-2025-01-15/

2025-01-15 17:00

LEEDS, England, Jan 15 (Reuters) - The Bank of England should move quickly to bring down interest rates given signs of a slowdown in Britain's economy, Alan Taylor, the BoE's most recently appointed interest rate setter, said on Wednesday. Taylor, an economics professor, voted to cut rates in November - when Bank Rate was cut to its current level of 4.75% - and again in December when the Monetary Policy Committee majority left it unchanged. "We are in the last half mile on inflation, but with the economy weakening, it’s time to get interest rates back toward normal to sustain a soft landing," Taylor said in the text of a speech he was due deliver at Leeds University. "It is this logic that convinced me to vote for an interest rate cut in December." The BoE has reduced its benchmark Bank Rate twice since August - less than other central banks - and it has stressed it is likely to move gradually on further interest rate cuts, given persistent inflation pressures in Britain's economy. Taylor said he thought the risks around inflation had shifted in the last 12 months, by slowing more quickly than expected over 2024. Sterling fell against the dollar around the time Taylor's speech text was published, losing about a third of a cent. Data published earlier on Wednesday showed Britain's headline rate of inflation slowed to 2.5% in December, down from 2.6% in November, and underlying measures of price growth watched closely by the BoE cooled more quickly. Taylor said that while the risks posed by inflation appeared to be fading, the possibility of a downside scenario for Britain's economy had increased and, even if it was not his base case, it was appropriate to cut rates in response. "Right now, I think it makes sense to cut rates pre-emptively to take out a little insurance against this change in the balance of risks, given that our policy rate is still far above neutral and would still remain very restrictive," he said. Sign up here. https://www.reuters.com/markets/rates-bonds/bank-englands-taylor-says-its-time-cut-interest-rates-2025-01-15/