2024-04-02 11:21

OPEC+ JMMC meets on Wednesday at 1100 GMT Producers earlier agreed to extend output cuts Oil rallies to $89 a barrel, highest this year LONDON, April 2 (Reuters) - An OPEC+ ministerial panel is unlikely to recommend any oil output policy changes at a meeting on Wednesday, five OPEC+ sources told Reuters, as oil prices hit their highest this year. The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, will hold an online joint ministerial monitoring committee meeting (JMMC) on April 3 to review the market and members' implementation of output cuts they have already agreed to extend. Oil has rallied this year, underpinned by tighter supply and attacks on Russian energy infrastructure and war in the Middle East. Brent crude reached $89 a barrel on Tuesday, up from $77 at the end of 2023. Two of the sources, who asked not to be named because they were not authorised to speak publicly, said they expected a straightforward meeting, citing the earlier decision to extend output cuts. The meeting is scheduled for 1 p.m. Vienna time (1100 GMT). OPEC+ members, led by Saudi Arabia and Russia, last month agreed to extend voluntary output cuts of 2.2 million barrels per day (bpd) to support the market. The cuts are voluntary in that they are not shared across all members of the group. Russian Deputy Prime Minister Alexander Novak said on Friday Russia has decided to focus on reducing oil output rather than exports in the second quarter in order to evenly spread production cuts with other OPEC+ member countries. When the voluntary curbs expire at the end of June, the total cuts by OPEC+ are set to decline to 3.66 million bpd as agreed in earlier steps starting in 2022. The JMMC brings together leading OPEC+ countries including Saudi Arabia, Russia and the United Arab Emirates. The panel usually meets every two months and can make recommendations to change policy that can then be discussed and ratified in a full ministerial meeting including all members. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/opec-unlikely-change-output-policy-april-3-meeting-2024-04-02/

2024-04-02 11:10

April 2 (Reuters) - U.S.-listed shares of pot producers rise premarket on Tuesday after the Florida Supreme Court on Monday allowed voters , opens new tab to decide on the fate of recreational use of marijuana in the state through a referendum on the November ballot. If passed, adult-use cannabis will be legal in the country's third-most populous state. WHY IT IS IMPORTANT Florida can become the next top prize for regulated U.S. marijuana operators. It has a population of more than 22 million and is also an important medical cannabis market. It could add to the Biden administration's efforts to push cannabis reforms such as seeking to ease the treatment of the psychoactive plant under federal law and pardoning thousands of convictions for mere possession of the drug. The U.S. health agency last year also proposed to reclassify cannabis as a lower-risk substance, boosting expectations of legalization at the federal level. MARKET REACTION U.S-listed shares of pot firms SNDL (SNDL.O) , opens new tab, Tilray Brands (TLRY.O) , opens new tab, Aurora Cannabis (ACB.TO) , opens new tab, and Canopy Growth (WEED.TO) , opens new tab, climb between 1% and 6.8% before the bell. BY THE NUMBERS Adult-use cannabis is legal in 24 U.S. states and also in the District of Columbia, Guam and the Northern Mariana Islands. KEY QUOTES George Archos, CEO, Verano Holdings "As the nation's largest medical cannabis market with a high population and significant political influence, Florida has the chance to make history by joining the growing majority of Americans who say 'yes' to legal regulated cannabis and the wealth of positive health, wellness and economic benefits this incredible plant provides millions of individuals and countless communities every day." Kim Rivers, CEO, Trulieve Cannabis "We are thankful that the Court has correctly ruled the ballot initiative and summary language meet the standards for single subject and clarity. We look forward to supporting this campaign as it heads to the ballot this November." Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/us/pot-producers-climb-recreational-cannabis-go-florida-ballot-2024-04-02/

2024-04-02 10:36

NEW DELHI, April 2 (Reuters) - A government-appointed panel has proposed setting up India's first iron ore exchange to determine the domestic sale price of the key steelmaking raw material, according to a document reviewed by Reuters and a source with direct knowledge of the matter. After the Ministry of Mines pointed out that some iron ore miners tried to keep the average sale price artificially low to pay lower royalties to the government, the federal government late last year formed a panel to work out an "alternative mechanism" to determine domestic iron ore prices. "As a long-term measure to solve the issue of transparency in the returns being received, (the) Ministry of Mines should develop a National Iron Ore exchange, mandating the buying and selling of iron ore on the online platform," the panel said in its recommendations, according to the document. Details of the panel's recommendations have not been previously reported. The proposed exchange would record real-time transactions and physical delivery of iron ore, the document said. "Once the exchange is implemented, ASP (average sale price) for each state and grade can be auto-published every month, based on the weighted average of monthly sales on online platform," it said. Currently, prices of the same grade of iron ore differ widely across the country, creating an anomaly which the panel believes makes it easier for miners to lower rates artificially to avoid higher royalty payments to the government. India's cabinet will consider the recommendations of the panel, said the source who could not be named because the proposal is not public. The federal mines ministry did not immediately comment on a Reuters email seeking comment. The panel has also recommended the use of blockchain technology at the exchange, according to the document. The technology allows stakeholders such as miners, traders, buyers, and government agencies to quickly and securely share verifiable information. The panel did not favour using an international index to determine the average sale price for iron ore. "Not only (is the) international iron ore price is highly influenced by (the) Chinese economy and steel demand, but also has been highly volatile in comparison to domestic prices," the document said. "Linkage of iron ore ASP with the international price has serious repercussions for raw material planning and export competitiveness for (the) domestic steel industry." India is the world's fourth-biggest iron ore producer and also ships the majority of its iron ore to China. In top iron ore consumer China, sellers use a mix of reference points such as the benchmark from S&P as well as the futures index and other local indices for domestic transactions. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/india-proposes-national-iron-ore-exchange-tackle-price-anomalies-document-shows-2024-04-02/

2024-04-02 10:34

WINNIPEG, Manitoba/TORONTO, April 2 (Reuters) - Canada's First Nations are eyeing their biggest opportunities yet to invest in multi-billion-dollar energy projects from pipelines to power lines, hinging on Prime Minister Justin Trudeau keeping a promise this spring to make the deals easier to finance. Trudeau's government will release its budget April 16 and has said it will include plans to guarantee loans for Indigenous communities investing in major resource projects. The government, which is trying to cut greenhouse gas emissions, has not said whether oil and gas projects will be included but if they are then they would represent some of the biggest Indigenous investment opportunities, from the government-owned Trans Mountain (TMC.UL) oil pipeline to TC Energy's (TRP.TO) , opens new tabCoastal GasLink pipeline. At least 38 Canadian energy projects were announced with Indigenous investment between 2022 and 2024, ranging in value from C$13 million to C$14.5 billion ($10.69 billion), according to the Fasken law firm, which has worked on some of the projects. Enbridge (ENB.TO) , opens new tab is willing to sell Indigenous stakes in all types of assets, including North America's biggest oil pipeline network, the Mainline, said executive vice-president of liquids Colin Gruending, adding that a Mainline deal would be complex because it crosses the Canada-U.S. border. "Being open to all forms of energy, I think that's important," Gruending said of the federal guarantee. "If we're going to involve more nations quicker, we need to open it up." The federal government will update next steps for a loan guarantee program in its budget, said Katherine Cuplinskas, spokesperson for the finance minister. She did not answer questions about the program's dollar value or whether it would include oil and gas projects. For energy companies, Indigenous partnerships provide capital infusions and a way to speed projects through approval from provincial governments that in some cases require First Nations equity. A federal loan guarantee would allow First Nations to borrow at favorable rates, enabling them to profit, said Niilo Edwards, CEO of First Nations Major Projects Coalition, an Indigenous-owned organization that is advising First Nations on 17 projects worth a combined C$40 billion. "A lot of (First Nations) are presented major investment opportunities that may be in the hundreds of millions of dollars and just don't have the capital themselves," Edwards said. Alberta, Saskatchewan and Ontario offer provincial guarantees and British Columbia is developing one. Banks already profit from advising and lending to First Nations and energy companies on deals but are eager for a federal guarantee to free up capital on a bigger scale. "Provincial/federal loan guarantee programs with clear parameters could create a powerful force for accelerating capital into Indigenous-led projects," said Michael Bonner, head of Canadian business banking at Bank of Montreal (BMO.TO) , opens new tab. Many recent First Nations resource deals involve electricity and renewable energy. BC Hydro is talking with an Indigenous coalition about buying 50% of its northwest transmission line expansion. Wind and solar deals are also happening, such as Greenwood Sustainable Infrastructure's C$200-million solar farm in Saskatchewan, announced in January, which will be at least 10% owned by Ocean Man First Nation. Spain-based EDP Renewables (EDPR.LS) , opens new tab, which built an Ontario wind farm in 2021 with 50.01% ownership by Piwakanagan First Nation, has multiple Canadian projects under development and is looking for more. With First Nations knowledge and support, projects advance faster, said EDP North American CEO Sandhya Ganapathy. "Canada is super-high on our radar." ($1 = 1.3564 Canadian dollars) 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/canadas-indigenous-peoples-eye-big-energy-deals-await-trudeau-loan-promise-2024-04-02/

2024-04-02 10:34

LONDON, April 2 (Reuters) - The pound rose on Tuesday after data showed Britain's manufacturing sector expanded in March and mortgage approvals rose in February. Sterling was last up 0.14% at $1.2566, after falling 0.58% on Monday as the dollar rose on the back of strong U.S. economic data. The euro was down 0.18% against the pound at 85.47 pence. Survey data out on Tuesday showed that British manufacturers reported their first overall growth in activity in 20 months in March thanks to recovering domestic demand. Separate figures showed that UK banks approved the highest number of mortgages in February since September 2022, when new lending slumped due to bond market turmoil caused by Liz Truss' premiership. "Consumer caution (is) fading in response to lower interest rates," said Rob Wood, chief UK economist at Pantheon Macroeconomics. "We think households will be willing to spend more this year," he said, citing a fall in mortgage rates and wages growing faster than inflation. Data from mortgage lender Nationwide on Tuesday showed that British house prices rose in March at their fastest annual pace since December 2022, although they fell slightly between February and last month. The pound has fallen since early March as the dollar has strengthened due to better-than-expected U.S. data and after investors detected a dovish turn in the Bank of England's communication about inflation and interest rate cuts. Britain's economy slipped into a mild recession at the end of 2023 but economists see signs that it is now growing again, albeit modestly. Investors see a roughly 60% chance the BoE will cut rates by June, up from 15% at the start of March, according to derivative market pricing. The dollar index , which tracks the U.S. currency against six peers, hit a 4-1/2 month high of 105.1 on Tuesday and was last at 104.96, down slightly on the day. 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/sterling-ticks-up-uk-manufacturing-recovers-2024-04-02/

2024-04-02 10:33

HOUSTON, April 2 (Reuters) - The U.S. has doubled the pace of cutting carbon emissions since President Joe Biden's Inflation Reduction Act (IRA) passed in 2022, analysts and scientists said, with more than 80 solar, wind and energy storage projects taking advantage of the law's mix of direct payments and tax credits. The IRA and the Bipartisan Infrastructure Law last year provided $239 billion for clean energy, electric vehicles (EVs), electrification of buildings, and carbon management in the U.S., up 38% from 2022, according to the Clean Investment Monitor , opens new tab, a joint project of the policy researcher Rhodium Group and MIT. Still, experts said there is a long way to go before the law can achieve Biden's wider climate ambitions of net-zero by 2050. Ultimately, analysts expect U.S. government direct spending and tax credits under the law will far exceed the initial $400 billion estimate. Goldman Sachs Group has projected up to $1.2 trillion spending through 2031. Two years after passage of the landmark climate law, early winners have been sectors such as electrical power, battery manufacturing and traditional clean energies like wind and solar. The law encouraged Asian and European companies to invest more in the U.S., which in turn prompted Europe to develop its own Green Industrial Plan over worries the U.S. would pull away clean-energy projects and talent. Still, state and local regulations have hindered development of new transmission lines , opens new tab, and new EV charging stations have not sprouted up as quickly as some had hoped. Also, the IRA has been much slower to encourage other types of projects, especially hydrogen, carbon sequestration, geothermal and nuclear energy, noted Jigar Shah, head of the loan programs office at the Department of Energy. Those sectors "continue to struggle around figuring out how exactly to put all the pieces together," Shah said last month at the CERAWeek energy conference in Houston. Oil companies have bristled at the criteria for tax credits for hydrogen fuel plants. Exxon Mobil Corp (XOM.N) , opens new tab Chief Executive Darren Woods warned in an interview that he might scrap a multibillion-dollar plan to build the world's largest hydrogen plant in Texas. "The challenge has been translating the legislation of the IRA into regulation," Woods said, noting the proposed regulation favors hydrogen fuel from plants powered by renewable energy rather than natural gas. Even in sectors like electric vehicles, companies are discovering "a host of practical barriers to putting the IRA tax breaks to work", said Jason Bordoff, founding director of the Center on Global Energy Policy at Columbia University. For instance, he cited a lack of transmission lines that would connect new clean energy projects to the grid and local-content requirements for EVs. Tax breaks for EV purchases under the law have U.S. automakers worried about cheap Chinese vehicles flooding the market, triggering rules for U.S. content and calls in Washington for steeper tariffs. China has protested U.S. content rules on EVs to the World Trade Organization. Concern about Asian companies cornering the market on advanced technology needed for EVs and other green energy items also prompted Washington to launch aggressive investments in semiconductor plants. "Some parts of clean energy like electric vehicles have become particularly politicized. There could be a risk that the implementation of the IRA by the administration could be slowed down," Bordoff said. So far, a $7.5 billion U.S.-funded network of electric vehicle charging stations has led to only a handful of stations despite a temporary waiver of U.S. content rules. Regulatory hurdles have hindered advancement of complex projects favored by oil companies such as hydrogen plants or carbon capture systems for oil wells, noted Roman Kramarchuk, head of climate markets and policy analytics for S&P Global Commodity Insights. He predicted these projects would see a second wave of development "when there is more certainty around how that financing is supposed to happen or what it takes to get a deal done." Oil executives at the conference in Houston also complained that regulations were making it difficult to build new natural gas pipelines, which undercut efforts to remove the gas from drilling sites. Now, a proposed IRA-linked fee for excess methane emissions on federal lands has raised a new hurdle, ConocoPhillips (COP.N) , opens new tab Chief Executive Ryan Lance said, adding that "industry is pushing back" on that issue. Despite the various industry complaints, the climate law has helped the U.S. reduce carbon emissions by 4% annually, double the pace of 2% a year before the law, nine research teams across the U.S. said last year in an article published in the journal Science , opens new tab. Still, some experts said the pace must accelerate. “The IRA doubles the pace of reductions but should have tripled it to hit our 2030 climate goals and get on the path to net-zero by 2050,” said Princeton Mechanical and Aerospace Engineering professor Jesse Jenkins, one of the study participants. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/sustainability/climate-energy/us-climate-law-has-boosted-solar-batteries-hydrogen-other-initiatives-lag-2024-04-02/