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  • Biden disappointed by ‘shortsighted’ OPEC+ cut, more SPR releases possible

    Biden disappointed by ‘shortsighted’ OPEC+ cut, more SPR releases possible

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    WASHINGTON, Oct 5 (Reuters) – President Joe Biden called on his administration and Congress to explore ways to boost U.S. energy production and reduce OPEC’s control over energy prices after the cartel’s “shortsighted” production cut, the White House said on Wednesday.

    The Saudi Arabia-led OPEC+ cartel at a Vienna meeting on Wednesday ignored pleas from the White House to keep oil flowing and agreed to cut output by 2 million barrels per day, its deepest cuts in production since the 2020 COVID-19 pandemic.

    The move drew a sharp response from Biden that underscores the growing rift between the United States and Saudi Arabia on energy policy.

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    “The President is disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of (Russian President Vladimir) Putin’s invasion of Ukraine,” national security adviser Jake Sullivan and National Economic Council Director Brian Deese said in a statement.

    Biden warned that he will now continue to direct releases from the nation’s Strategic Petroleum Reserve “as necessary,” a shift from the White House’s previous comments that it would end the drawdown in the coming weeks.

    Earlier this year, the Biden administration announced the largest sale ever from the reserve: 180 million barrels for six months beginning in May. Last month it extended that historic sale into November as only about 155 million barrels had been sold. It now aims to sell 165 million through November.

    As a result, the amount of oil in the reserve has fallen to the lowest level since July 1984. It now holds about 416 million barrels of oil, well above what the United States is required by its membership in the International Energy Agency, at sites on the Texas and Louisiana coasts.

    Rising oil and fuel prices are a risk to Biden’s fellow Democrats as they seek to keep control of Congress in the Nov. 8 midterm elections.

    Biden also pledged to consult with Congress on additional tools to cut OPEC’s control over energy prices, a potential reference to a decades-long effort to open the cartel to antitrust lawsuits for orchestrating supply cuts.

    The so-called NOPEC bill, which has brought up numerous times over the past 20 years but never enacted, easily passed a Senate committee in May.

    The White House has previously expressed concerns about unintended consequences of the bill.

    The White House is also worried about the cut cementing Saudi Arabia’s closer cooperation with Russia, also a member of OPEC+, as oil revenues fund Moscow’s war machine in Ukraine.

    “Look it’s clear that OPEC Plus is aligning with Russia with today’s announcement,” White House spokesperson Karine-Jean Pierre told reporters aboard Air Force One on Wednesday.

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    Reporting by Susan Heavey and Jarrett Renshaw; editing by Tim Ahmann and David Gregorio

    Our Standards: The Thomson Reuters Trust Principles.

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  • Canadians clean up after Fiona sweeps homes out to sea; one dead

    Canadians clean up after Fiona sweeps homes out to sea; one dead

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    PORT AUX BASQUES, Newfoundland, Sept 25 (Reuters) – It will take several months for Canada to restore critical infrastructure after the powerful storm Fiona left an “unprecedented” trail of destruction, officials said on Sunday, as crews fanned out in five provinces to restore power and clean up fallen trees and debris.

    One 73-year-old woman died during the storm in Port aux Basques, one of the hardest hit towns on the southwest tip of Newfoundland with just over 4,000 residents, police said.

    “The woman was last seen inside (her) residence just moments before a wave struck the home, tearing away a portion of the basement,” police said earlier. The coast guard and local rescuers recovered her body from the ocean on Sunday afternoon, according to a statement.

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    Port aux Basques is “like a complete war zone,” said Brian Button, mayor of Port aux Basques. More than 20 homes were destroyed and more than 200 people need shelter. The cost of damages “is in the millions (of dollars) here now,” Button said in an interview.

    “We’re going to be months rebuilding. I think months is a conservative estimate for some of these people,” Rosalyn Roy, a resident of Port aux Basques, told the Canadian Broadcasting Corp.

    Fiona slammed into eastern Canada on Saturday, forcing evacuations as wind gusts reached up to 170 km per hour (106 miles per hour) and the storm surge swallowed up homes on the coastline.

    While the full scale of Fiona’s devastation is not immediately clear, the storm could prove to be one of Canada’s costliest natural disasters.

    Scientists have not yet determined whether climate change influenced Fiona, but in general the warming of the planet is making hurricanes wetter, windier and altogether more intense.

    Canada’s federal government is sending in the armed forces on Sunday to help clear fallen trees and debris, which will in turn open the way for crews to restore power, Emergency Preparedness Minister Bill Blair told Reuters.

    The province of Nova Scotia requested the troops and machinery to clear debris Saturday, “and we said yes, and so they’re being deployed today,” Blair said.

    On Sunday, Prince Edward Island (PEI) and Newfoundland and Labrador also requested federal support and troops are going to be sent, Blair said. About 100 troops are heading to each of the three provinces, Defense Minister Anita Anand told reporters.

    The Canadian Hurricane Centre estimated that Fiona was the lowest-pressured storm to make landfall on record in Canada.

    In 2019, Dorian hit the region around Halifax, Nova Scotia, blowing down a construction crane and knocking out power. Fiona, on the other hand, appears to have caused major damage across at least five provinces.

    “The scale of what we’re dealing with, I think it’s unprecedented,” Blair said on Sunday.

    “There is going to be… several months’ work in restoring some of the critical infrastructure – buildings and homes, rooftops that have been blown off community centers and schools,” he said.

    Hundreds of thousands of residents across Nova Scotia, PEI, Newfoundland, Quebec and New Brunswick remained without power on Sunday. Blair said hundreds of utility crews had already been deployed to restore power, including some from the United States.

    In Nova Scotia, police urged people to stop going for fast food because drive-thru lines “are blocking roadways, which is impeding recovery efforts” and the situation is prompting calls to police dispatchers “who are already handling very high call volumes”, according to a statement on Twitter.

    In PEI there were long lines at gas stations as many had to fill generators, and several communities were told to boil water before drinking because water purification systems were offline.

    Officials warned on Sunday that in some cases it would take weeks before essential services are fully restored.

    The storm also severely damaged fishing harbors in Atlantic Canada, which could hurt the country’s C$3.2 billion lobster industry, unless it is fully restored before the season kicks off in few weeks.

    “Those fishers have a very immediate need to be able to access their livelihood once the storm passes,” Dominic LeBlanc, minister of intergovernmental affairs of Canada, said on Saturday.

    ($1 = 1.3589 Canadian dollars)

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    Reporting John Morris in Stephenville; Additional reporting by Steve Scherer in Ottawa, Denny Thomas in Toronto, and Eric Martyn in Halifax; Writing by Steve Scherer; Editing by Daniel Wallis, Lisa Shumaker and Diane Craft

    Our Standards: The Thomson Reuters Trust Principles.

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  • Dow posts record closing high, stocks gain for 3rd week; dollar dips

    Dow posts record closing high, stocks gain for 3rd week; dollar dips

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    • S&P 500, Nasdaq end session lower
    • Evergrande averts default with surprise interest payment
    • U.S. 10-year yields lower

    NEW YORK, Oct 22 (Reuters) – The Dow Jones industrial average registered a record closing high on Friday and major equity indexes posted a third straight week of gains while the U.S. dollar slipped.

    On the day, MSCI’s broadest gauge of global shares (.MIWD00000PUS) was flat, and the S&P 500 (.SPX) and Nasdaq (.IXIC) ended lower.

    Stocks came under pressure after Federal Reserve Chair Jerome Powell said the U.S. central bank was “on track” to begin reducing its purchases of assets. read more

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    Intel’s stock (INTC.O)fell 11.7% and was among the biggest drags on the S&P 500. Late Thursday, Intel reported sales that missed expectations and pointed to shortages of chips holding back sales of its flagship processors. read more

    American Express Co’s stock (AXP.N) gained, boosting the Dow after the company beat profit estimates for the fourth straight quarter.

    Next week brings reports from several key mega-cap names including Amazon (AMZN.O). read more

    The dollar pared losses after Powell’s comments, but the dollar index was last down 0.10% at 93.64, and is off from a one-year high of 94.56 last week. read more

    “There’s a bit of a positioning unwind taking place. We’ve obviously seen a firmer dollar since the September” Fed meeting, said Mazen Issa, senior FX strategist at TD Securities in New York. “That also dovetails with the seasonal tendency for the dollar to soften into the end of the month.”

    Investors also digested news that China Evergrande Group (3333.HK) appeared to avert default with a source saying it made a last-minute bond coupon payment. read more

    The Dow Jones Industrial Average (.DJI) rose 73.94 points, or 0.21%, to 35,677.02, the S&P 500 (.SPX) lost 4.88 points, or 0.11%, to 4,544.9 and the Nasdaq Composite (.IXIC) dropped 125.50 points, or 0.82%, to 15,090.20.

    The pan-European STOXX 600 index (.STOXX) rose 0.46% and MSCI’s gauge of stocks across the globe shed 0.03%.

    The MSCI index posted gains for a third straight week along with the three major U.S. stock indexes.

    In the U.S. bond market, yields on longer-dated U.S. Treasuries slid.

    The yield on 10-year Treasury notes was down 1.6 basis points to 1.659% after rising to a five-month high of 1.7064% late Thursday.

    Oil rose and ended up for the week, near multi-year highs. Brent crude futures rose 92 cents to settle at $85.53 a barrel, and registered its seventh weekly gain. U.S. crude futures gained $1.26, to settle at $83.76, and rose for a ninth straight week. read more

    Spot gold was up 0.6% at $1,793.82 per ounce.

    Among cryptocurrencies, bitcoin last fell 2.21% to $60,841.96.

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    Additional reporting by Simon Jessop in London, and Karen Brettell, Sinead Carew and Herbert Lash in New York and Kevin Buckland in Tokyo
    Editing by Hugh Lawson Mark Potter and David Gregorio

    Our Standards: The Thomson Reuters Trust Principles.

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