2024-06-27 06:27

LONDON, June 27 (Reuters) - The global market for carbon dioxide (CO2) removal credits could reach up to $100 billion a year between 2030 and 2035 from $2.7 billion last year if barriers to its growth are addressed, a report by management consultancy Oliver Wyman said on Thursday. Worsening climate change and inadequate efforts to cut emissions have led U.N. scientists to estimate billions of tons of carbon must be removed from the atmosphere annually by using nature or technology to meet global climate goals. Demand for credits has begun to increase from sectors as diverse as technology and finance, chemicals and aviation but it’s not yet large enough to drive the scale of projects that experts say are needed, the report by Oliver Wyman, the City of London Corporation and the UK Carbon Markets Forum said. Total sales of CO2 removals were estimated at $2.7 billion in 2023, the report said but could grow to as much as $100 billion a year by 2030-35. Barriers to growing the market include a lack of universally agreed standards on CO2 removal credits and a lack of guidance on how removals can be used to help meet climate targets. On current growth rates between 2020-2023, the market is expected to reach $10 billion a year by 2030-2035, the report said. To grow the market in Britain the government should include removals in its emissions trading system, set out a financial framework to support the market and endorse the use of removals within company net zero strategies, it said. Globally, $32 billion has been invested in carbon dioxide removal projects to date, with $21 billion of this in engineered solutions, such as direct air capture (DAC) projects which suck CO2 from the atmosphere and $11 billion in nature-based solutions such as planting trees, the report said. Critics of using carbon removals warn focusing too much on their use could deter companies from reducing their emissions as much as possible. Sign up here. https://www.reuters.com/sustainability/climate-energy/global-carbon-removal-market-could-reach-100-billionyr-2030-35-report-says-2024-06-27/

2024-06-27 06:09

LITTLETON, Colorado, June 27 (Reuters) - Power producers in the United Kingdom cut the use of fossil fuels in electricity generation by 16% over the first five months of 2024 from the same period in 2023, data from think tank Ember shows. The 33.55 terawatt hours (TWh) of electricity generated from fossil fuels was the lowest for the January to May period in at least nine years, and marks the third straight year of cuts to fossil fuels in UK power generation during that window. UK power sector emissions from fossil fuels have also fallen, dropping by 14% or by just over 3 million metric tons of carbon dioxide (CO2) during January to May in 2024 from 2023. Power firms also lifted output from clean energy sources by 10% during the January to May window, which resulted in clean power fuels accounting for a record 66.1% average share of total electricity generation during that period. REGIONAL LEADER, WITH WORK TO DO That share of clean electricity generation compares to just under 61% over the same period in 2023, and so marks a significant expansion to clean power utilisation in UK electricity generation this year. The UK's clean power share for the first five months of 2024 is also higher than the European average (63%), and is well above that of Germany (59%) and Italy (54%), Ember data shows. And the 14% drop in the UK's fossil fuel emissions in power production through May is also steeper than the 10% fall recorded by Europe's power sector over the same period. Even so, UK power producers seem to be struggling to lift total electricity generation levels despite the steady climb seen in clean power output. From January through May, total UK electricity output contracted by nearly 2% from the same period in 2023, and to the lowest for that window in at least nine years. Some of that drop in overall electricity supply from utilities has been offset by improved energy efficiency measures by consumers plus more behind-the-meter solar generation systems in UK households and businesses. However, sluggish manufacturing activity has also stifled electricity and power demand, with UK companies grappling with subdued consumer demand across Europe and the additional challenge of altered trade terms following Brexit. Going forward, any sustained recovery in manufacturing activity would result in higher total power demand, which may place strain on power producers to lift generation from fossil fuels alongside clean power sources. WEAK WINDS A key constraint on clean power generation in the UK is the country's wind speeds at turbine level. Wind power was the single largest source of electricity during January through May, exceeding natural gas generation by around 20%, according to LSEG. And while total wind generation was up by 11% during the January to May window from the same months in 2023, total wind generation levels tend to slump over the summer months due to low wind speeds during the warmest time of year. In 2023, wind electricity output during June, July and August averaged 40% less than during January through March, data from Ember shows. If wind speeds undergo a similar slowdown in 2024, power producers may struggle to sustain total electricity supply levels without resorting to lifting generation from fossil fuels, especially natural gas. Power firms can expect additional generation from solar farms, which tend to hit peak output during summer months. But as solar power generation capacity is roughly half that of wind generation capacity in the UK, and can only produce electricity during daylight hours, overall power supplies still look set for a decline if wind generation slumps. That suggests that even though clean power sources have made big gains in the UK's power mix so far in 2024, power producers may be forced to dial up output from natural gas going forward if total power demand rises just as wind farms enter their weakest production period. Over the longer run, however, the UK's power system looks set to become even cleaner as more outdated fossil fuel power stations are retired and additional renewable generation capacity is brought online. Sign up here. https://www.reuters.com/business/energy/uk-power-sector-cuts-fossil-fuel-use-new-lows-maguire-2024-06-27/

2024-06-27 05:57

US dollar down 0.2% US PCE numbers due on Friday June 27 (Reuters) - Gold prices rose more than 1% on Thursday from the over two-week low touched in the previous session, as the dollar softened and the spotlight shifted to key U.S. inflation data for clues on the Federal Reserve's policy path. Spot gold was up 1.2%, at 2,324.53 per ounce as of 1804 GMT, after falling to its lowest level since June 10 on Wednesday. U.S. gold futures settled 1% higher, at $2,336.6. "Some of the data that came out was supportive to the gold market. It was essentially the wholesale inventories that came in lower than expected. The final GDP figure is significantly lower. So gold futures are getting a boost on dollar index coming off," said Phillip Streible, chief market strategist at Blue Line Futures. Ebbing economic momentum was underscored by data showing business spending on equipment declined in May, while a slump in exports pushed up the goods trade deficit. In its third estimate of gross domestic product for the January to March quarter, the government confirmed that economic growth moderated sharply in the first quarter. Making gold more attractive for other currency holders, the dollar weakened 0.2% against a basket of currencies, while benchmark 10-year yields fell to 4.2845%. Investors have largely stuck to their view of around two interest-rate cuts this year, according to LSEG's FedWatch data, even though the U.S. central bank has projected only one. Lower interest rates reduce the opportunity cost of holding non-yielding bullion. Data for the Personal Consumption Expenditures Price Index (CPE), a key inflation report and the Fed's preferred inflation gauge, is due on Friday. Markets were also on alert for signs of Japanese authorities intervening in the yen as it languished near a 38-year low. Economic uncertainty tends to boost bullion's appeal. Spot platinum was down 2.2%, at $988.75, while palladium was steady at $929.00 and silver gained 0.5%, to $28.90. Sign up here. https://www.reuters.com/markets/commodities/gold-prices-lingers-near-two-week-low-traders-eye-us-inflation-data-2024-06-27/

2024-06-27 05:39

LAUNCESTON, Australia, June 27 (Reuters) - The profit margin for Asian refiners turning crude oil into fuels has stabilised at relatively weak levels, but where the money is being made has shifted from gasoline to diesel. The crack, or margin, for a typical refinery in Singapore processing regional benchmark Dubai crude ended at $3.59 a barrel on Wednesday, up from $3.40 at the previous close. Apart from a brief period of weakness at the end of May, which saw the margin drop to a low so far this year of $0.90 a barrel, the crack has been in a fairly narrow range between $2 to $4.50 since early April. This is about half of where the profit margin started the year, with a peak so far in 2024 of $9.91 a barrel on Feb. 13. Asian refiners, which account for about 40% of global capacity, have been caught between relatively strong crude oil prices as the OPEC+ group of exporters limits output, and easing prices for the main refined products of diesel and gasoline amid demand concerns in major consuming countries including China. The struggles of the world's second-biggest economy to build growth momentum has been largely reflected in the crack for gasoil, the building block for middle distillates diesel and jet fuel. The margin for producing gasoil in Singapore dropped to a one-year low of $13.81 a barrel on May 23, halving from its peak so far in 2024 of $26.93 on Feb. 14. But since the May nadir, the crack has recovered somewhat to end at $16.82 a barrel on Wednesday. As yet it's too early to say whether this is because of rising demand across Asia, or because the recent overhang of supply is dissipating, or even a combination of both. Certainly, the volume of gasoil being supplied into Asia appears to have eased in June, with LSEG Oil Research estimating shipments from top exporter India will remain under 2 million metric tons for a third straight month. Exports from China, the second-biggest shipper in Asia, are also expected to decline in June to around 850,000 to 900,000 tons from May's 1.03 million amid refinery maintenance. Inventories of middle distillates in Singapore, Asia's main fuel trading hub and a refining centre, dropped to a near four-month low of 8.86 million barrels in the week to June 19, official data showed. GASOLINE STRUGGLES In contrast to the improving picture for gasoil, Asia's gasoline market is showing signs of stress, with the profit margin in Singapore for producing a barrel of 92-RON fuel from Brent crude dropping to $4.85 a barrel on Wednesday. The crack hit an eight-month low of $3.50 a barrel on June 13 and the modest recovery since then hasn't been enough to alter the overall declining trend seen since late January, when the margin hit a high so far this year of $16.73. Gasoline exports in Asia are expected by LSEG to be around 5.5 million to 6.0 million tons in June, roughly in line with May's 5.8 million. China's shipments in June will exceed the 860,000 tons from May, while India's will remain steady around 1.25 million and those from South Korea are expected to drop from May's 1.24 million amid lower refinery utilisation, LSEG forecasts. The main issue with the gasoline market is demand has disappointed, both in Asia and in the export markets in Europe and the United States. The northern summer driving season may offer some relief, but it's likely that refineries will have to consider lowering throughput in order to lower supply for there to be any sustained recovery in margins. Much will also depend on what Saudi Arabia, the world's biggest oil exporter, does with its official selling prices (OSPs) for August, which will be announced early next month. Saudi Aramco (2222.SE) New Tab, opens new tab, the state-controlled oil major, cut its OSPs for Asian customers for July-loading cargoes, the first time in five months it had lowered prices. However, the 50-cent per barrel cut for its main Arab Light blend to a premium of $2.40 a barrel over the Oman/Dubai average wasn't seen as enough to allow Asia's refiners to enjoy stronger margins. Given Saudi Arabia and its partners in OPEC+ appear to want to keep oil prices at least around the current levels of $85 a barrel for Brent, this could limit the amount Aramco may be prepared to lower the OSPs for August. The opinions expressed here are those of the author, a columnist for Reuters. Sign up here. https://www.reuters.com/business/energy/asias-refining-margins-stabilise-soft-levels-diesel-improves-russell-2024-06-27/

2024-06-27 05:33

June 27 (Reuters) - Copa America assistant referee Humberto Panjoj has been discharged from hospital after fainting during Canada's 1-0 win over Peru on Tuesday, tournament organizers CONMEBOL said on Wednesday. The Guatemalan official collapsed due to dehydration in hot and humid conditions in Kansas City but was now in a stable condition, ESPN quoted CONMEBOL as saying. Panjoj collapsed during stoppage time in the first half, with Canada goalkeeper Maxime Crepeau attracting the attention of medical staff. He was treated on the sidelines and briefly got back to his feet before being taken off on a stretcher. Sign up here. https://www.reuters.com/sports/soccer/copa-america-assistant-referee-discharged-hospital-after-collapsing-2024-06-27/

2024-06-27 05:30

US stocks finish slightly higher Yen inches up vs US dollar US presidential debate set for late Thursday NEW YORK, June 27 (Reuters) - Global stock indexes edged higher on Thursday, while U.S. Treasury yields declined slightly after a series of U.S. economic reports suggested ebbing momentum. Traders were eager to see Friday's U.S. personal consumption expenditures (PCE) data, which is the Federal Reserve's preferred inflation measure and could help investors determine the U.S. interest rate outlook. Thursday's data mostly supported the view the Fed could soon begin cutting interest rates. It included a report showing first-time applications for U.S. unemployment benefits drifted lower last week, but the number of people on jobless rolls jumped to a 2-1/2-year high in mid-June. "The bond market is taking some of the weaker economic data to heart," said Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest in Elmhurst, Illinois. Investors were also gearing up for the U.S. presidential debate, he added. U.S. President Joe Biden and former President Donald Trump head to the first of two debates ahead of their election rematch this November. The debate will air at 9 p.m. ET (0100 GMT on Friday) on CNN. The Japanese yen edged up from a 38-year low against the U.S. dollar on Thursday, helped by the softening U.S. economic data. But investors remained on high alert for any signs of Japanese intervention to prop up the currency. Japan's finance minister has said he would take any necessary action on currencies, and that Japanese authorities were "deeply concerned" about the effect of the yen's drop on the economy. The Japanese yen strengthened 0.03% against the greenback at 160.77 per dollar. The dollar index , which measures the greenback against a basket of currencies, fell 0.12% at 105.92, with the euro up 0.22% at $1.0702. All three of Wall Street's major stock indexes ended slightly higher. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab rose 36.26 points, or 0.09%, to 39,164.06, the S&P 500 (.SPX) New Tab, opens new tab gained 4.97 points, or 0.09%, to 5,482.87 and the Nasdaq Composite (.IXIC) New Tab, opens new tab was up 53.53 points, or 0.30%, to 17,858.68. Among the day's decliners, however, was Micron Technology (MU.O) New Tab, opens new tab, whose shares fell 7.1% after a disappointing revenue forecast late on Wednesday. An index of semiconductors (.SOX) New Tab, opens new tab ended down 0.6%. MSCI's gauge of stocks across the globe (.MIWD00000PUS) New Tab, opens new tab rose 0.02 points to 803.75. The STOXX 600 (.STOXX) New Tab, opens new tab index fell 0.43%. France, Italy and Spain will also release inflation data on Friday. Investors have become more worried about inflation following a surprise jump in inflation data in Australia on Wednesday and in Canada on Tuesday. Also, the first round of French parliamentary elections will take place on Sunday. In U.S. Treasuries, the yield on benchmark U.S. 10-year notes fell 3 basis points to 4.286%, from 4.316% late on Wednesday. Brent crude oil futures rose $1.14, or 1.34%, to settle at $86.39 a barrel. U.S. West Texas Intermediate crude futures gained 84 cents, or 1.04%, to settle at $81.74. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-06-27/