2024-04-04 20:07

HOUSTON, April 4 (Reuters) - Weather forecasters at Colorado State University (CSU) on Thursday predicted an "extremely active" 2024 Atlantic hurricane season because of warm sea surface temperatures and less wind shear to break up storms in the summer and fall. The widely watched CSU forecast calls for five major hurricanes, or those with winds above 111 miles per hour (178 kph), out of 11 total hurricanes that are part of a projection for 23 named storms. The forecasts are closely monitored by coastal communities and energy companies. The U.S. Gulf of Mexico accounts for 15% of total U.S. crude oil production and 5% of its dry natural gas production, and nearly 50% of the nation's oil-refining capacity resides on its shores. "We anticipate a well above-average probability for major hurricanes making landfall along the continental United States coastline and in the Caribbean," CSU said. An average hurricane season produces 14 named storms, of which seven lead to hurricanes and three become major cyclones. Last year, there were three major hurricanes that formed among seven hurricanes and 20 named storms, the fourth greatest number of named storms since 1950. The most damaging, Idalia, tore up the west coast of Florida and made landfall as a category 3 hurricane. CSU's forecast is in line with other initial outlooks. Last week, AccuWeather said there was a 10-15% chance of 30 or more named storms in the 2024 hurricane season, which begins June 1 and runs to Nov. 30. Phil Klotzbach, lead author of the CSU forecast, said 2024 appears similar to other very active hurricane seasons. The basis for his forecast is above average sea surface temperatures that fuel hurricanes and the impending end to the El Nino weather pattern, which carries high winds that can break up storms in the Gulf of Mexico and Atlantic Ocean. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. https://www.reuters.com/business/environment/forecasters-predict-extremely-active-2024-atlantic-hurricane-season-2024-04-04/

2024-04-04 20:06

BRASILIA, April 4 (Reuters) - Brazil's government is weighing names to replace Petrobras CEO Jean Paul Prates in coming days, two government sources told Reuters on Thursday, but two sources close to the CEO of the state-run oil firm said his exit is not a done deal. Prates has been under friendly fire from parts of Brazil's governing coalition calling for him to bring down fuel prices and ramp up job-creating investments. Last month, he clashed with members of President Luiz Inacio Lula da Silva's cabinet over a dividend withheld from Petrobras (PETR4.SA) , opens new tab investors. Government ministers have reached an agreement to release that extraordinary dividend, newspaper O Globo reported on Thursday, but Prates may not last to see the payout. CNN Brasil reported on Thursday that the exit of Prates was "imminent," citing three unnamed sources. Petrobras shares closed down 1.4%. No decision has been made regarding dividend distribution, the firm said in a statement after markets closed. Prates knows he is in trouble, as the campaign for his replacement comes from Lula's cabinet, said a source close to the CEO. But this is not the first time his exit has seemed inevitable only for the plan to fizzle out, one source noted. Another said a short-term exit is possible but "not likely." Adding weight to the reports this time, government sources cited possible substitutes close to Lula's inner circle. The head of state development bank BNDES, Aloizio Mercadante, is being considered as a substitute for Prates, said the sources on condition of anonymity. He has the support of Finance Minister Fernando Haddad, who has been backing Prates, one of the sources said. Another name under consideration is Bruno Moretti, a special secretary at the presidential palace who sits on the board of Petrobras, a government source told Reuters. Moretti is close to Lula's chief of staff Rui Costa, who has criticized Prates. Kicking off the speculation on Thursday, newspaper Folha de Sao Paulo reported that Prates was seeking a meeting with Lula to ask for support to stay in the role, but opening the door to an exit if he cannot a strong show of support. Lula's press office said in a statement that it was not aware of any scheduled meeting. Petrobras did not respond to requests for comment. Prates made light of the situation on Thursday afternoon, posting a meme on social platform X saying he will leave Petrobras later on Thursday, but then resume work on Friday. The Petrobras workers' union FUP criticized in a statement what it called a "public bashing" of Prates, adding that it recognizes the CEO's contributions to the state-run firm. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/petrobras-ceo-exit-likely-coming-days-sources-say-2024-04-04/

2024-04-04 20:03

NEW YORK, April 4 (Reuters) - U.S. power grids are increasingly vulnerable to cyberattacks, with the number of susceptible points in electrical networks increasing by about 60 per day, the North American Electric Reliability Corporation (NERC) said in a webcast on Thursday. The grids' virtual and physical weak spots, or points in software or hardware that are susceptible to cyber criminals, grew to a range of 23,000 to 24,000 last year from 21,000 to 22,000 by the end of 2022, executives with the energy regulator said. "It's very hard to keep pace with addressing all those vulnerabilities," said Manny Cancel, senior vice president of NERC. Geopolitical conflict, including Russia's invasion of Ukraine and the war in Gaza, have dramatically increased the number of cyber threats to North American power grids, NERC said. Threats also commonly come from China, and the regulators said they expect the upcoming U.S. presidential election to increase the probability of attacks on the grid. "We're going to be very vigilant during this current election cycle," Cancel said. Physical assaults on the grid have remained high since rising in 2022, with about 2,800 reports of gunfire, vandalism and other strikes on electrical networks last year, NERC said. Some 3% of those attacks led to outages or other operational problems. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/technology/cybersecurity/us-electric-grid-growing-more-vulnerable-cyberattacks-regulator-says-2024-04-04/

2024-04-04 19:17

CHARLOTTE, North Carolina, April 4 (Reuters) - Vice President Kamala Harris and Environmental Protection Agency Administrator (EPA) Michael Regan on Thursday announced eight organizations that will oversee the spending of $20 billion in grants to fund tens of thousands of clean energy and transportation projects in disadvantaged communities across the United States. "While every community has the capacity to join the clean energy economy, not every community has had the opportunity to do that," Harris said at an event on Charlotte announcing the grantees, adding that the funding reflects two Biden administration priorities - expanding access to capital and building a clean energy economy. The $20 billion, made available through the $27 billion Greenhouse Gas Reduction Fund (GGRF) created in the 2022 Inflation Reduction Act, will largely be invested in projects ranging from home energy retrofitting programs to off-grid renewable energy in communities that have not had access to green financing. The selected organizations will create a national clean financing network that will help kickstart projects over the next seven years that are expected to reduce or avoid up to 40 million metric tons of climate pollution annually. Harris and Regan visited a home in the historically black neighborhood of Grier Heights in Charlotte, North Carolina, where homeowner has used the type of financing that will be made available through the GRRF to retrofit his home heating and energy systems to make it more efficient and affordable. A local nonprofit, Self-Help, that helped him access funding years ago to retrofit his home, co-leads one Climate United, one of the eight organizations selected to distribute federal funding to help replicate the types of retrofits that have been happening in Grier Heights. The EPA plans to get the money to the organizations by September this year. The GGRF has been a target of congressional Republicans, who passed a resolution this year attempting to repeal what they have called a climate "slush fund." 'FIERCE URGENCY OF CLIMATE CHANGE' Three non-profit coalitions comprised of community development financial institutions, local green banks and other community lending organizations were chosen to distribute $14 billion from a National Clean Investment Fund (NCIF), that aims to support affordable clean technology projects nationwide. Another five groups have been chosen to administer the $6 billion Clean Communities Investment Accelerator, which will provide funding and technical assistance to community lenders working to back clean technology projects in low-income and disadvantaged communities. Harris said this was the first time federal dollars will be directly given to local non-profit organizations, who she said were best placed to make investments in their local communities. Of the $20 billion, at least $4 billion will be dedicated to investment in rural communities and $1.5 billion will be directed to programs benefiting tribal nations. The grantees are expected to mobilize almost $7 of private capital for every $1 of federal funds they spend. William Barber, head of the Coalition for Green Capital - one of the selected organizations, said it was fitting that the announcement took place on the anniversary of the assassination of civil rights leader Martin Luther King Jr, and said the funding will help the U.S. face the "fierce urgency of climate change." "Climate change is no longer a distant threat but an accelerating reality," said Barber, who said the awards will unlock the power of private and public capital to help all communities be able to help tackle the issue. Get weekly news and analysis on the U.S. elections and how it matters to the world with the newsletter On the Campaign Trail. Sign up here. https://www.reuters.com/world/us/biden-administration-awards-20-bln-clean-energy-investment-low-income-2024-04-04/

2024-04-04 19:12

Loonie touches a two-week high at 1.3479 Canada's trade surplus widens in February Price of U.S. oil settles 1.4% higher Canadian bond yields ease across curve TORONTO, April 4 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday, giving back its earlier gains, as investors assessed recent strength in commodities and awaited domestic jobs data that could offer clues on prospects of avoiding a recession. The loonie was trading 0.1% lower at 1.3535 to the U.S. dollar, or 73.88 U.S. cents, after touching its strongest intraday level since March 21 at 1.3479. The pullback from a two-week high came as Wall Street turned lower. Weaker-than-expected U.S. services data and an upside breakout in copper prices had helped support the Canadian currency in recent days, said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull. "The commodity trade could be a tailwind for the Canadian (dollar) if it keeps going," Bregar added. Canada is a major producer of commodities, including oil, copper and gold. It recorded a bigger-than-expected trade surplus of C$1.39 billion ($1.03 billion) in February as a record level of unwrought gold helped exports outpace the rise in imports. Copper was up 1.1% on Thursday, while the price of oil settled 1.4% higher at $86.59 a barrel. Still, the Canadian dollar is set to strengthen less than previously thought over the coming year as sticky inflation potentially delays Federal Reserve interest rate cuts and uncertainty grows ahead of the U.S. presidential election, a Reuters poll found. Economists expects Canada's employment data, due on Friday, to show the economy adding 25,000 jobs in March. "The market will very much welcome something that is better than expected. Hopes are rising that we are not going to see a recession," Bregar said. Canadian bond yields eased across the curve. The 10-year was down 2.1 basis points at 3.574% after on Tuesday touching its highest intraday level in nearly three weeks at 3.678%. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-pulls-back-2-week-high-ahead-jobs-data-2024-04-04/

2024-04-04 15:47

TORONTO, April 4 (Reuters) - Canadian homebuilders are expected to dial back new construction for a third straight year in 2024 as elevated borrowing costs reduce the appeal of starting projects, Canada's national housing agency said on Thursday. Housing starts will fall to 224,485 units this year from 240,267 in 2023, the Canadian Mortgage and Housing Corporation (CMHC) forecast in its Housing Market Outlook document. Groundbreaking is expected to be higher in 2025 and 2026 than this year's forecast level but stop short of the 2021 peak of 271,198. "Purpose-built rental starts, fueled by unprecedented demand and government support, hit record levels in 2023, sustaining overall housing starts in Canada near historically high levels," said Bob Dugan, chief economist for CMHC in a statement. "However, unfavorable financing conditions are expected to make it more difficult for homebuilders to start new rental projects in 2024." Canada is facing a housing shortage due to historically high population growth. On Tuesday, Prime Minister Justin Trudeau launched a C$6 billion ($4.42 billion) Canada Housing Infrastructure Fund to accelerate the construction and upgrading of housing. Investors expect the Bank of Canada to leave its benchmark interest rate at a 22-year high of 5% at a policy decision next Wednesday but to then begin a rate cutting campaign in June or July. Lower borrowing costs could boost home sales and prices, CMHC said. It forecast the average price rising 5% this year before climbing 10% in 2025 and 5% in 2026. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/americas/canada-homebuilding-down-third-year-housing-agency-predicts-2024-04-04/