2025-01-13 22:58
Separatist region says imports, exports hit by energy crisis Region hit by daily blackouts, shutdown of industry Moldova's pro-European president calls meeting on energy issues CHISINAU, Jan 13 (Reuters) - The prime minister of Moldova's separatist Transdniestria region said on Monday that the abrupt curtailment of Russian gas supplies that plunged the region into an energy crisis has also shattered both its exports and imports. The cutoff, prompted by Ukraine's refusal to renew an agreement allowing Russian gas to transit through Ukraine, has led to daily blackouts in the pro-Russian region of some 350,000 people and disruptions in heating and water supplies. Prime Minister Alexander Rozenberg told local media that the New Year cutoff had triggered a 43% decline in imports and a 60% plunge in exports in the region, which split from Moldova in the final days of Soviet rule. "The steepest drop in the volume of export operations... has been registered in the metals sector, in manufacture of machines and in the chemical industry," he said. "Exports of cement have been completely stopped." Transdniestria depends heavily on assistance from Moscow and its leaders acknowledge that the Russian gas it has long received was provided free of charge as "humanitarian assistance". The gas cutoff affects operations at a thermal plant that provides electricity both for Transdniestria and much of the area controlled by the central Moldovan government. Its operations have been switched to coal, and Ukraine, Moldova's eastern neighbour, has offered to provide supplies. Moldovan President Maia Sandu, who has spearheaded the country's drive to join the EU, called a meeting of Moldova's Supreme Security Council on Tuesday to discuss energy. Both Moldova and Transdniestria have proclaimed states of emergency. Much of Transdniestria's industry has been forced to close or obliged to operate at night, when there is less strain on the power grid. Among the factories closed are a cement plant and a steel mill in the town of Rybnita, with the latter accounting for 35% of the region's budget revenue. The region's separatist authorities last week said energy savings had enabled them to reduce rolling blackouts from eight hours a day to three by the weekend. But a blackout of five hours had been announced for Monday. Moldova, which denounces Russia's invasion of Ukraine, says Moscow fomented the crisis and has suggested shipping gas on a route through Turkey, Bulgaria and Romania. Russian gas giant Gazprom (GAZP.MM) , opens new tab said it will provide no supplies until Moldova settles arrears it estimates at $709 million, a figure disputed by Moldovan authorities. Transdniestria's leaders say Moldova has done nothing to ease the crisis and reject any notion that Moldova's government has offered to help purchase power from Western Europe. More than 30 years after Transdniestria waged a brief war against the newly independent Moldovan state, the region continues to exist alongside Moldova with little turmoil. But 1,500 Russian "peacekeepers" remain in the territory and efforts to resolve the separatist dispute have made little headway. Sign up here. https://www.reuters.com/world/europe/premier-separatist-moldova-region-says-gas-cutoff-shattered-foreign-trade-2025-01-13/
2025-01-13 22:57
BRUSSELS, Jan 13 (Reuters) - Six European Union countries on Monday called on the European Commission to lower the $60 per barrel price cap put on Russian oil by G7 countries, arguing it would reduce Moscow's revenues to continue the war in Ukraine while not causing a market shock. Price caps on Russian seaborne crude as well as refined petroleum products were set by G7 countries to curb Moscow's revenues from oil trade and in this way limit the country's ability to finance its invasion of Ukraine. "Measures that target revenues from the export of oil are crucial since they reduce Russia's single most important income source," Sweden, Denmark, Finland, Latvia, Lithuania and Estonia said in a letter to the EU executive arm. "We believe now is the time to further increase the impact of our sanctions by lowering the G7 oil price cap," it said. The G7 price cap was set at $60 per barrel of Russian crude and for petroleum products at a maximum of $100 per barrel of premium-to-crude products and $45 per barrel for discount-to-crude products. Andriy Yermak, Ukrainian President Volodymyr Zelenskiy's chief of staff, said imposing and enforcing price caps were a critical factor in dealing with Russia. "There is a clear correlation between the price of energy carriers and the level of Russian belligerence," Yermak wrote on the Telegram messaging app. "The export of energy is the main source of war financing for the Kremlin. The higher the price of oil, the greater the number of weapons and aggressive intentions in Russia. The lower the price of oil is, the closer peace will be." The price cap maximum prices have not changed since December 2022 and February 2023 when they were introduced while Russian crude prices on the market were below that level on average in 2023 and 2024. "The international oil market is better supplied today than in 2022, reducing the risk a lower price cap will cause a supply shock," the letter of the six countries said. "In view of limited storage capacity and its outsized dependence on energy exports for revenue Russia has no alternative to continue oil exports even at a substantially lower price," the letter said. Sign up here. https://www.reuters.com/world/europe/six-eu-countries-call-lowering-g7-price-cap-russian-oil-2025-01-13/
2025-01-13 22:32
NEW YORK, Jan 13 (Reuters) - As multiple wildfires devour tens of thousands of acres across Los Angeles in what is expected to be the most costly natural disaster in U.S. history, the area's electric utilities have come under increasing scrutiny. While officials have not released causes for the more than half-dozen blazes around the city, a series of lawsuits were filed on Monday on claims that Southern California Edison's equipment was at fault for the Eaton Fire, a deadly blaze near Pasadena. Equipment owned by Southern California Edison has been preserved in two fire investigations. Shares of parent company Edison International (EIX.N) , opens new tab have fallen about 25% since the Jan. 7 start of the disaster. The Los Angeles Department of Water and Power (LADWP), which runs the biggest publicly owned utility in the country, has also been criticized for its water and power management during the failed fights against the flames that decimated the wealthy coastal community of Pacific Palisades. At least two dozen people have died in the fires that began burning on Tuesday and more than 12,000 structures have been destroyed. Here's a look at the quickly evolving situation surrounding LA-area utilities in the face of the ongoing wildfires: SOUTHERN CALIFORNIA EDISON On Jan. 9, two days after the fires first began, Southern California Edison released its first "safety incident" , opens new tab report to investors. In it, the largest southern California power utility said it had been asked by lawyers representing insurance companies to preserve equipment that could have been linked to the cause of the fire. Southern California Edison said fire officials had not suggested the company's infrastructure caused the fire and did not request any of its equipment in their investigations. An initial analysis also showed that there were "no interruptions or electrical or operational anomalies" in Southern California Edison's system in the area until more than an hour after the reported start time of the fire, the company said. The following day, the company released a second incident report, in which it said fire officials were investigating Southern California Edison equipment in connection with a separate fire, the much smaller Hurst Fire. As of Monday, the Eaton Fire had burned about 14,000 acres (57 sq km) and was 33% contained, according to the California Department of Forestry and Fire Protection , opens new tab. LAWSUITS Southern California Edison was hit by a series of lawsuits on Monday, Jan. 13, alleging its equipment was involved in the Eaton Fire in Altadena, an unincorporated Los Angeles County community near Pasadena. One lawsuit, brought on behalf of residents and business owners, claimed that Southern California Edison's energized infrastructure had initially sparked the Eaton Fire. That lawsuit included eyewitness accounts of a fire at the base of an SCE transmission tower, as well as data from electrical monitoring company Whisker Labs, saying the data showed potentially dangerous electrical grid disruptions in the area prior to the start of the blaze. BIGGEST U.S. MUNICIPAL UTILITY SCRUTINY The city's public power and water provider has also come under pressure, primarily over its management of water and power resources when the Palisades Fire burned through in the wealthy coastal Los Angeles enclave of Pacific Palisades. No cause for the Palisades Fire has been released. That inferno is the biggest of the fires, which has so far charred more than 23,000 acres, with only 14% containment. FIRE HYDRANT PROBLEMS Governor Gavin Newsom has called , opens new tab for an investigation into insufficient water supplies and pressure at LADWP fire hydrants during the initial fight against the Palisades Fire. The Wall Street Journal initially reported , opens new tab that the LADWP had not implemented the common safety practice of preemptively shutting off power in the face of the wildfires. Neither Southern California Edison nor LADWP was immediately available for comment. Sign up here. https://www.reuters.com/world/us/utilities-face-increasing-scrutiny-la-wildfires-2025-01-13/
2025-01-13 21:56
Diamondback signals lower prices for oil produced in Q4 Company flags prices received for natgas production were slightly lower in Q4 Jan 12 (Reuters) - U.S. shale producer Diamondback Energy (FANG.O) , opens new tab on Monday flagged lower prices for its oil production in the fourth quarter, compared to the preceding three months. Oil prices declined 9.2% during the three months ended December 31, as concerns about oversupply and tariffs outweighed geopolitical risks. Sign up here. The company said the average realized prices, or the price it received for total oil production, declined to $58.00 per barrel in the fourth quarter, compared with $64.60 per barrel in the preceding three-month period. The average realized prices for natural gas were $1.03 per thousand cubic feet (Mcf) after hedging, compared to $1.75 per Mcf in the third quarter, the energy producer said in a regulatory filing. Brent crude futures lost about 19% in 2025, the most substantial annual percentage decline since 2020 and their third straight year of losses, the longest such streak on record. U.S. West Texas Intermediate crude logged an annual decline of almost 20%. Diamondback's quarterly snapshot comes just days after rival Exxon Mobil (XOM.N) , opens new tab also warned that lower crude oil prices could cut its quarterly upstream earnings by about $800 million to $1.2 billion. Siebert Williams Shank & Co. analyst Gabriele Sorbara said the realized oil and natural gas liquids (NGL) pricing were modestly weaker than expected, while natural gas realizations were largely in line with expectations. "Obviously, this will put a little pressure on the bottom line for 4Q25, but Street expectations have to adjust for the sector, as analysts mark-to-market their models for actuals," Sorbara added. Analysts expect Diamondback Energy to post an adjusted profit of $2.64 per share for the fourth quarter, and $12.98 per share for the full year, according to data compiled by LSEG. The company will release its financial results on February 23, its website showed. https://www.reuters.com/business/energy/diamondback-energy-flags-lower-prices-oil-production-fourth-quarter-2026-01-12/
2025-01-13 21:47
Jan 14 (Reuters) - A look at the day ahead in Asian markets. A sea of red across most equity markets and no end in sight to the rise in the dollar and U.S. bond yields is the backdrop to what is likely to be another nervy session in Asia on Tuesday. As if that wasn't reason enough for investors to keep their guard up, U.S. CPI inflation data will be released the following day, when the fourth quarter U.S. earnings season kicks off too. The S&P 500's fall on Monday at one point wiped out all the index's post-U.S. election gains. Although it managed to close off those lows, there is no doubt that high and rising U.S. bond yields continue to weigh heavily on wider equity market sentiment. The global backdrop isn't helping either, amid swirling trade tensions and uncertainty surrounding the new incoming U.S. administration ahead of Donald Trump's inauguration next week. On that front, the Biden administration's announcement on Monday of new U.S. export restrictions on artificial intelligence chips will only deepen the unease. The new regulations, among the toughest yet from Washington and designed to limit the global distribution of these coveted processors, could deal a significant blow to the earnings of AI and tech firms, including Nvidia. The dollar on Monday rose to a fresh 26-month high, a further tightening of financial conditions that will be felt in domestic U.S. markets but especially in overseas asset prices. Analysts at Goldman Sachs on Friday raised their dollar forecasts to include the euro falling below parity with the dollar within the next three to six months. With the euro slipping below $1.02 on Monday it wouldn't be a shock if the parity break comes in the next six weeks. The dollar has started the week on a strong footing. It has risen 14 out of the last 15 weeks, a remarkable run that has seen it appreciate 10% against its major G10 rivals. Emerging and Asian economies continue to feel the squeeze from dollar and Treasury yields. Tuesday's calendar in Asia is light, with Australian consumer confidence, Indian factory gate inflation figures and the latest Japanese trade and current account numbers the main events. Japan's yen remains under heavy selling pressure around 158 per dollar, close to the 160/dollar area that has previously prompted yen-buying intervention from Japanese authorities. Policy decisions in Indonesia and South Korea, and a raft of Chinese economic indicators, should be the local catalysts for more market fireworks later in the week. The annual Asian Financial Forum in Hong Kong continues. Speakers on Tuesday include the chairman of Alibaba, the managing director of China International Capital Corporation Limited, and CIOs at several major global investment funds. Here are key developments that could provide more direction to markets on Tuesday: - Japan trade, current account (November) - India wholesale price inflation (December) - Bank of Japan Deputy Governor Himino Ryozo speaks Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-2025-01-13/
2025-01-13 20:45
Wildfires have killed at least 24, thousands of homes and businesses destroyed Johnson,, Barrasso say may look to impose conditions on relief aid Trump criticizes disaster response in strongly Democratic state WASHINGTON, Jan 13 (Reuters) - Top Republicans in the U.S. Congress are considering imposing conditions on disaster aid to Los Angeles communities devastated by wildfires, after President-elect Donald Trump claimed that state and local officials had mishandled the situation. House of Representatives Speaker Mike Johnson told reporters on Monday that leading officials in the Democratic-led state mismanaged water resources and forests in the Los Angeles area before six simultaneous blazes tore across the second-largest U.S. city, claiming the lives of at least 24 people. "It appears to us that state and local leaders were derelict in their duty in many respects. So that's something that has to be factored in," Johnson told reporters in the U.S. Capitol. "There should probably be conditions on that aid. That's my personal view. We'll see what the consensus is," he said. House Republicans have not yet discussed disaster aid to sections of California stricken by fire, Johnson said. The lawmakers were due to meet behind closed doors early on Tuesday. With Trump due to take office in less than a week, Republican control of both the House and Senate gives the party full control over spending, including the form and volume of disaster relief. The president-elect took aim at the largely Democratic leaders of California and Los Angeles as "incompetent pols" over the weekend in a social media post about the wildfires that claimed "they have no idea out to put them out." No. 2 Senate Republican John Barrasso on Sunday told CBS' "Face the Nation" that he expected to see "strings attached to money that is ultimately approved, and it has to do with being ready the next time, because this was a gross failure this time." Johnson said House Republicans are also discussing the possibility of tying California aid to efforts to raise the limit on more than $36 trillion in U.S. debt. One hurdle facing disaster aid in Congress is an energized hardline conservative bloc that seeks offsets for any new spending. Last month, the Republican-controlled House and a Democratic-led Senate approved more than $100 billion in new emergency funding to help states including North Carolina and Florida recover from devastating hurricanes. Though many of the aid recipients live in Republican areas, some party members in both chambers pressed unsuccessfully to limit the aid as little as $40 billion. While California is heavily Democratic, with the party holding both the governorship and two U.S. Senate seats, it was the site of several closely contested U.S. House, where Democrats succeeded in holding onto closely-fought seats. The state could play a critical role in determining House control once more in the 2026 midterm elections. Sign up here. https://www.reuters.com/world/us/top-house-republican-says-should-be-conditions-california-wildfire-aid-2025-01-13/
