2024-10-02 23:03

Oct 2 (Reuters) - Over 1.1 million homes and businesses were still without power in the U.S. Southeast and Midwest on Wednesday after Helene slammed into the Florida Panhandle as a major hurricane on Sept. 26, according to data from PowerOutage.us. Those outages were down from around 1.7 million on Tuesday as utilities continued to restore power. In total, the storm knocked out service to around 5.5 million customers, predominantly in the Southeast. Helene's winds, rain and storm surge killed more than 160 people. The utility with the most outages was U.S. energy company Duke Energy (DUK.N) , opens new tab in the Carolinas with about 287,732 customers still out in South Carolina and 234,375 still out in North Carolina, according to PowerOutage.us. Duke said on Tuesday it had restored power to around 1.6 million customers in the Carolinas and expected to restore the majority of remaining outages by Friday night. Here are the major outages by state: Sign up here. https://www.reuters.com/business/energy/almost-13-million-us-customers-still-without-power-hurricane-helene-2024-10-02/

2024-10-02 21:48

Oct 3 (Reuters) - A look at the day ahead in Asian markets. Japanese markets, particularly the foreign exchanges, continue to digest the rather blunt comments on monetary policy from new prime minister Shigeru Ishiba after he met with Bank of Japan governor Kazuo Ueda on Wednesday. "I do not believe that we are in an environment that would require us to raise interest rates further," Ishiba said, sparking a huge wave of yen selling. The yen shed almost 2% against the dollar on Wednesday, its biggest fall since February last year. Excluding the pandemic-related volatility of March 2020, it was one of the steepest declines in over a decade. Meetings between Japan's prime minister and central bank governor are not unusual, but this one came only days after Ishiba took office. His comments were unusually direct too - "somewhat unseemly," according to Washington-based economist Phil Suttle. Analysts at JP Morgan reckon the Ishiba administration will adopt a "market-friendly" policy stance until next summer when the upper house election is scheduled, which should soothe market concerns about growth. The yen's plunge reflects how extreme market positioning has become. U.S. futures market data show hedge funds are holding their biggest 'long' yen position since 2016 and one of their largest ever. Asahi Noguchi, a dovish BOJ board member who dissented against the central bank's rate hike in July, on Thursday delivers a speech and holds a media conference, where he is likely to be asked about Ishiba's comments. Elsewhere in Asia, Thailand's finance minister Pichai Chunhavajira and central bank chief Sethaput Suthiwartnarueput speak at a central bank event on Thursday. Asia's economic calendar sees the release of purchasing managers index data from Australia and Singapore, and the latest international trade figures from Australia. The dollar's rally against the yen and U.S. economic data on Wednesday helped lift the greenback to a three-week high against a basket of currencies and register its third daily rise of around 0.5%. Escalating tensions between Iran and Israel continue to sustain safe-haven demand for the dollar and the rebound in oil prices. Brent crude rose above $76 a barrel for the first time in a month, but only ended the day up around 1%. Investors will also be assessing news that France, Greece, Italy and Poland will vote on Friday in favor of hefty tariffs of up to 45% on imports of electric vehicles made in China. That could push through the European Union's highest profile trade measures, risking potential retaliation from Beijing. How will Germany vote? Finance Minister Christian Lindner said the country must oppose the EU proposal, adding: "A trade war with China would do us more harm than good for a key European industry and a crucial sector in Germany." Here are key developments that could provide more direction to Asian markets on Thursday: - Australia trade (August) - Japan, Australia, Singapore PMIs (September) - Hong Kong retail sales (August) Sign up here. https://www.reuters.com/markets/global-markets-view-asia-graphic-pix-2024-10-02/

2024-10-02 21:37

WASHINGTON, Oct 2 (Reuters) - Holtec, the company wanting to reopen the Palisades nuclear reactor in Michigan, found corrosion cracking in steam generators "far exceeded" estimates, the U.S. nuclear power regulator said in a document published on Wednesday. President Joe Biden's administration this week finalized a $1.52 billion conditional loan guarantee to the Palisades plant. It is part of an effort to support nuclear energy, which generates virtually emissions-free power, to curb climate change and to help satisfy rising electricity demand from artificial intelligence, electric vehicles and digital currency. Palisades, which shut under a different owner in 2022, is seeking to be the first modern U.S. nuclear power plant to reopen after being fully shut. A summary of an early September call between the U.S. Nuclear Regulatory Commission and Holtec published on Wednesday said indications of stress corrosion cracking in tubes in both of Palisade's steam generators "far exceeded estimates based on previous operating history." It found 1,163 steam generator tubes had indications of the stress cracking. There are more than 16,000 tubes in the units. Steam generators are sensitive components that require meticulous maintenance and are among the most expensive units at a nuclear power station. Holtec wants to return the plant to operation late next year. Patrick O'Brien, a company spokesperson, said the results of the inspections "were not entirely unpredicted" as the standard system "layup process", or procedure for maintaining the units, was not followed when the plant went into shutdown. But he said the return of Palisades is still on schedule and that Holtec wants to fix, and not replace, the steam generators, which he said would last for 30 years after repairs. "We expect the repair strategy will be to 'unplug' approximately 300 tubes per steam generator that were plugged at original installation, and then address the tubes found during the inspections by plugging approximately 20% of the tubes that cannot be repaired easily and repairing the remaining 80% with sleeving, which is a common and proven repair strategy," O'Brien said. Holtec still needs permits from the NRC. "Holtec must ensure the generators will meet NRC requirements if the agency authorizes returning Palisades to operational status," an NRC spokesperson said. The NRC said last month that preliminary results from inspections "identified a large number of steam generator tubes with indications that require further analysis and/or repair." Steam generator issues can pose problems for nuclear power plants. Parts of the San Onofre Nuclear Generating Station in California were shut in 2012 after steam generators that had a design flaw leaked. Problems with new generators led to the closure of the plant in 2013. Sign up here. https://www.reuters.com/business/energy/us-report-says-corrosion-michigan-nuclear-plant-above-estimates-2024-10-02/

2024-10-02 21:36

Fears rise Israel could target Iran's oil industry OPEC+ has over 5 mln bpd of spare capacity Spare capacity in region vulnerable to wider conflict Gasoline price rally could help Donald Trump vs Kamala Harris LONDON, Oct 2 (Reuters) - OPEC has enough spare oil capacity to compensate for a full loss of Iranian supply if Israel knocks out that country's facilities but the producer group would struggle if Iran retaliates by hitting installations of its Gulf neighbours. Iran fired hundreds of missiles at Israel on Tuesday in response to Israeli airstrikes and attacks. Israel’s Prime Minister Benjamin Netanyahu said Iran made a big mistake and would pay for it, and Iran threatened a crushing response if Israel retaliated. Israel's options include targeting Iranian oil production facilities among other strategic sites, U.S. news website Axios reported on Wednesday citing Israeli officials. Iran is an OPEC member with production of around 3.2 million barrels per day or 3% of global output. Iranian oil exports have climbed this year to near multi-year highs of 1.7 million bpd despite U.S. sanctions. Chinese refiners buy most of its supply. Beijing says it doesn't recognise unilateral U.S. sanctions. "In theory, if we lost all Iranian production - which is not our base case - OPEC+ has enough spare capacity to make up for the shock," said Amrita Sen, co-founder of Energy Aspects. OPEC+, which includes OPEC and allies like Russia and Kazakhstan, has been cutting production in recent years to support prices amid weak global demand. So the group is sitting on millions of barrels of spare capacity. Cuts by OPEC+ producers currently total 5.86 million bpd. Analysts estimated Saudi Arabia is able to raise output by 3 million bpd and the United Arab Emirates by 1.4 million. OPEC+ met on Wednesday to discuss compliance with cuts. The group did not discuss the Israeli-Iranian conflict, OPEC+ sources said. "The only thing mentioned about the geopolitical situation and the conflict was the hope for non-escalation," said an OPEC+ source familiar with the discussions. While OPEC has enough spare capacity to compensate for the loss of Iranian supplies, much of that capacity is in the Middle East Gulf region and potentially vulnerable should the conflict escalate further, said Giovanni Staunovo, analyst at UBS. "The effectively available spare capacity might be much lower if renewed attacks on energy infrastructure on countries in the region happen," he said, adding the West might have to tap strategic reserves if there were severe disruptions. Israel has so far refrained from attacking Iranian oil facilities. Oil analysts and security experts have said Israel could target Iran's oil refining sites and the Kharg Island oil port, which handles around 90% of the country’s crude exports. During the Iran-Iraq War in the 1980s, Baghdad regularly attacked tankers around Kharg Island and threatened to destroy the oil terminal. "Iran and its proxies could potentially target energy operations in other parts of the region in order to internationalize the cost if the current crisis devolves into an all-out war," said Helima Croft from RBC Capital Markets. In 2019, a drone attack by Iranian proxies on Saudi oil processing facilities briefly knocked out 50% of the kingdom’s crude production. "In case of an escalation Iran's proxies might launch attacks on Middle East oil producers, namely Saudi Arabia," said Tamas Varga from PVM. Riyadh and Tehran have had a political rapprochement since 2019, which helped ease regional tensions, but relations remain difficult. Oil prices have traded in a narrow range of $70-90 per barrel over the past years despite the war between Russia and Ukraine and conflict in the Middle East. A rise in U.S. production has helped ease the fear premium in oil markets, said Rhett Bennett, chief executive at Black Mountain, which has operations in the U.S. Permian basin. The U.S. produces 13% of global crude and almost 20% of global oil liquid production compared to OPEC's 25% global crude production share and some 40% by OPEC+. "This diversity of supply from U.S. domestic sources, combined with healthy spare capacity within OPEC, is translating into the market feeling insulated from a dramatic supply shock – regardless of perpetual Middle East flare ups," Bennett said. A broad conflict in the Middle East, however, with a major impact on production would inevitably push oil prices up. That would drive up fuel costs. A related rally in gasoline prices could hurt U.S. vice president Kamala Harris in her campaign to win the Nov. 5 presidential election against Republican candidate Donald Trump. "The United States will likely try to push Israel for a more modest response, wanting to avoid a significant escalation in tensions," said Warren Patterson from ING. Sign up here. https://www.reuters.com/business/energy/opec-could-cushion-iran-oil-shock-not-broader-disruption-2024-10-02/

2024-10-02 20:55

Tens of thousands have no running water Biden and Harris survey storm damage in key election states Nearly 1.2 million homes and businesses without power in Georgia and Carolinas Search-and-rescue teams continue efforts amid severe flooding and destruction ASHEVILLE, North Carolina, Oct 2 (Reuters) - Tens of thousands of North Carolina residents remained without running water on Wednesday, six days after Hurricane Helene slammed into Florida and carved a destructive path through much of the U.S. Southeast, killing more than 160 people. The powerful storm inundated the western part of the state with catastrophic flooding, destroying pipes, damaging water plants and cutting off power. One-fifth of the 1 million residents in the western half of North Carolina either had no water at all or low system pressure on Wednesday, according to an online state database. About 1.2 million homes and businesses across multiple states remained without electricity, according to website Poweroutage.us. In hard-hit Asheville, the municipal water supply system, which serves more than 150,000 residents, was badly damaged. Many residents have been warned to expect dry faucets for days or even weeks while pipes are repaired; those with water have been urged to boil it before consuming. A steady stream of people were filing on Wednesday into Pack Square Park, where the city had set up a food and water distribution hub. A dozen volunteers distributed drinking water from a makeshift tap system with PVC pipes attached to a tanker truck. Nearby, volunteers distributed donated ready-to-eat meals and plastic water bags to those who had no containers or jugs. David Shoham, a professor from East Tennessee State University who was waiting for supplies, has been without water and power since Friday. He had filled up his bathtub ahead of the storm but has since drawn down his reserve after washing dishes. "It's just the reality," he said. "There's nothing we can do about it individually. We just have to trust that our institutions are going to step up and get services restored. Yeah, it's frustrating. But who am I going to complain to? The man upstairs?" Jordan Lance, owner of Buxton Chicken Palace, and three of his chefs filled multiple buckets and containers, hauling them away in a wagon. The group is preparing hot meals three times a day at a nearby food hall. "We're gonna be doing big batches of jambalaya coming up, steaming some rice, getting some hot food out for folks," Lance said. He got choked up when asked how his business would fare without running water, possibly for weeks. People in North Carolina obtain their water from a patchwork of sources, depending on where they live. In major cities, water comes from large water plants, while in remote areas some residents are served by small neighborhood systems or rely on private wells. Water distribution sites have been set up at several locations. Both the county and the city paid for private supplies of water to be trucked in, and the state and the Federal Emergency Management Agency have supplied drinking water for distribution around the area. DESPERATE FOR WATER Helene came ashore in Florida late on Thursday as a powerful Category 4 hurricane before turning its fury on much of the Southeast, as flash floods destroyed homes and ripped victims away from their families. The storm washed out both the main pipes and backup pipes at North Fork, one of three water treatment plants serving the Asheville watershed, officials said. Another plant, DeBruhl, could not be reached after the storm blocked the access road with debris. Both the state's National Guard and the U.S. Army Corps of Engineers are helping to return the plants to normal operations, city officials said. The system's third main plant, Mills River, was struggling at reduced capacity. At least 57 people died in Buncombe County, which includes Asheville, according to authorities. Rachel Simpson, 33, felt lucky to have weathered the storm with only minor damage to her Asheville home. But she said it has been difficult with no water to bathe, wash clothes or flush toilets. "The city says it'll be at least four weeks before the water comes back on," she said. "Right now we're getting by the best we can. All the water we have now we're getting from friends." Harrison Fahrer, 37, co-founder of the west Asheville brew house Cellarest Beer Project, knows his problems pale in comparison to those of people whose houses and businesses didn't survive. But he's not sure how he'll make it without water. "You turn on the spigot and all it does is hiss," he said. "If we can't brew, we can't pay our bills, our loans, our rent, utilities." BIDEN, HARRIS SURVEY DAMAGE As search-and-rescue teams continued to comb through wreckage for the missing and deliver water, food and aid to residents, President Joe Bidenvisited the state to survey the washed-out roads, smashed bridges and felled power lines. Vice President Kamala Harris, in the middle of a presidential campaign against Republican former President Donald Trump, traveled to Georgia on Wednesday, two days after Trump visited the state. Georgia and North Carolina, where Harris will travel later this week, are among the seven battleground states in this year's election. The water crisis has impeded businesses, hospitals and schools in and around Asheville as locals try to get back to normal. "The biggest concern for getting students back to school is water," Asheville City Schools Superintendent Maggie Fehrman said at a press conference on Wednesday. "Without water, we just simply cannot bring students back or staff back into our building." Sign up here. https://www.reuters.com/world/us/helene-storm-survivors-piece-lives-back-together-biden-due-visit-2024-10-02/

2024-10-02 20:52

CHICAGO, Oct 2 (Reuters) - Union Pacific Corp (UNP.N) , opens new tab said on Wednesday that Ferromex (FXE), the Mexican railroad it interchanges with, has resumed issuing permits for grain shuttle trains at the U.S.-Mexico border crossing at Eagle Pass, Texas. FXE could not be reached for comment on Wednesday. Pipeline issues are beginning to improve, Union Pacific told Reuters in an email statement. Grain shuttle train traffic between the U.S. and Mexico has been snarled in recent months as booming demand outstripped the system's capacity, creating heavy congestion and a growing backlog of loaded trains, agricultural export sources said. Efforts are ongoing to clear up service interruptions at the U.S.-Mexico crossing at El Paso, Texas, Union Pacific said. "Permits for El Paso will be granted once regular crossing cadence is established." U.S. East and Gulf Coast port workers have gone on strike, holding up some imports of beef that restaurants and retailers increasingly rely on to make hamburgers due to limited domestic supplies, traders and industry members said. This week, Berkshire Hathaway-owned (BRKa.N) , opens new tab BNSF Railway said it had resumed issuing permits for grain shuttles heading to Mexico. Sign up here. https://www.reuters.com/business/union-pacific-says-fxe-issuing-some-us-mexico-grain-shuttle-permits-2024-10-02/