2024-09-24 22:11

NEW YORK, Sept 24 (Reuters) - Marathon Petroleum (MPC.N) , opens new tab and the Teamsters union, which represents refinery workers in Detroit, Michigan, are at a standstill as negotiations for a new labor agreement stagnate and the strike at the plant enters its third week. More than 200 Teamsters at Marathon's Detroit refinery called for an economic strike on Sept. 4 after nine months of pay- and safety-related negotiations and mediation with Marathon failed to reach agreement. The prior contract expired in January. "Unfortunately, the parties have not reached an agreement," a Marathon spokesperson said. Marathon representatives and the union had several negotiating sessions under a federal mediator, including this past Friday and Sunday. "We continue to be in regular communication with the federal mediator; however, at this time, no additional negotiation meetings are scheduled." Teamsters Local 283 represents 273 workers at the Detroit refinery, 95% of whom authorized the strike. President of Teamsters Local 283 Steve Hicks said Marathon representatives walked away from the bargaining table at the latest round of contract talks this past weekend and canceled the negotiating session that was due this Friday. The Detroit refinery started planned turnaround activities earlier this month. The 140,000 barrel-per-day (bpd) Detroit refinery is one of Marathon's 13 refineries with approximately 2.9 million bpd of crude oil refining capacity. Sign up here. https://www.reuters.com/business/energy/marathon-teamsters-negotiations-remain-standstill-strike-enters-third-week-2024-09-24/

2024-09-24 21:49

Sept 25 (Reuters) - A look at the day ahead in Asian markets. Sugar high or shot in the arm? That's the question for Chinese stocks and investor sentiment which soared on Tuesday after Beijing, led by the central bank, unveiled a package of coordinated monetary and liquidity stimulus that packed a far more powerful punch than previous piecemeal efforts. It was China's biggest stimulus since the pandemic, and domestic and regional markets reacted accordingly - Shanghai's composite index jumped 4.2% for its best day since July 2020, the MSCI Asia ex-Japan index hit its highest since April 2022, and the MSCI emerging market currency index leapt to a new high. All well and good. But can this short-term relief morph into longer-term optimism that China's authorities are back in the driving seat and steering the property sector, asset prices and the economy towards sustainable recovery? "Bigger guns but still no bazooka," is how Barclays economists neatly summed up authorities' steps on Tuesday, adding that the central bank may fire more salvos in the coming months through interest rate and reserve requirement cuts. Some analysts were quick to raise their 2024 GDP growth forecasts closer to the government's 5% target, but most agree that large-scale fiscal stimulus is needed to really change the outlook beyond this year. In the near term, however, the Chinese market rebound may have more legs. Not only had Chinese stocks slumped to their lowest in over a year, they have performed poorly in relative terms against regional and global rivals. Analysts at Barclays are tactically bullish on Chinese stocks over Indian equities, while the divergence between the S&P 500 and Shanghai CSI 300 index in recent years has been frankly jaw-dropping. The yuan climbed to a fresh 16-month high on Tuesday, and is now within touching distance of breaking the 7.00 per dollar barrier. For a currency as tightly controlled as the yuan, its 3.5% appreciation in just two months is remarkable. Investor sentiment across Asia on Wednesday should also be boosted by the S&P 500 hitting another new high on Tuesday, albeit it only just, and a softer dollar and lower Treasury yields. Japanese stock futures point to the benchmark Nikkei 225 index opening 0.7% higher on Wednesday. That said, global growth concerns - particularly over Germany - are percolating, which could legitimately counter any sense of bullishness across Asia. The regional economic data calendar on Wednesday sees the release of Australian consumer inflation, which is expected to cool significantly to 2.7% in August from 3.5% in July, service sector producer price inflation from Japan and industrial production from Taiwan. Among the regional policymakers scheduled to speak are South Korea's finance minister Choi Sang-mok and Philippine central bank governor Eli Remolona. Here are key developments that could provide more direction to Asian markets on Wednesday: - Australia CPI inflation (August) - Japan services PPI (August) - Taiwan industrial production (August) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-09-24/

2024-09-24 21:38

NEW YORK, Sept 24 (Reuters) - World leaders on Tuesday said that developing nations risk missing out on a push to triple the amount of renewable energy worldwide without financial support from rich countries. Speaking at a Global Renewables Summit held on the sidelines of the UN General Assembly, Kenyan President William Ruto warned that while the technologies exist to achieve the goal set at the COP28 climate summit in Dubai last year to triple global renewable energy capacity by 2030, without investment and support, developing nations will not reap the benefits of clean electricity. "Africa receives less than 50% of global investment in renewable energy despite being home to 60% of the world's best solar opportunities," Ruto said at the summit. "Although the continent is resource rich, unreliable or expensive, energy limits our ability to harness these resources for development." With global energy demand on the rise, countries will need to use more renewable energy in order to avoid burning more fossil fuels. Recent reports, including by the International Energy Agency, have shown that the goal of tripling renewable energy is feasible this decade, but requires strong permitting rules and regulations, as well as investments in building out transmission and battery storage. European Commission President Ursula von der Leyen told the summit that this will require "massive investments" from the public and private sector, especially for "countries and regions where there is a lack of affordable energy and capital, and where costs are so high that is an obstacle to electrification." Barbados Prime Minister Mia Mottley said that fossil fuel subsidies outnumber renewable energy subsidies, which makes it more expensive for small states to develop clean energy projects. "Small states face the reality that the cost of renewable energy ... will probably be higher than traditionally fossil fuels," she said. Earlier in the day, a coalition of some of the world's biggest companies, finance houses and cities called Mission 2025 urged governments to adopt policies that they said could unleash up $1 trillion in clean energy investments by 2030, such as setting new capacity targets and offering tax credits or long-term electricity contracts would boost the industry's case for investment. Separately, U.S. President Joe Biden is set to address to the U.N. General Assembly for the final time as president, and a separate event will discuss his administration's climate achievements, particularly the boom in renewable energy production and manufacturing spurred by the $360 billion Inflation and Reduction Act passed in 2022. "What he will show is how the United States has changed the playbook fundamentally -- not focused on the doom and gloom, focused instead on the massive economic opportunity, a chance to build U.S. manufacturing and infrastructure, and a chance to build the American middle class," White House National Climate Adviser Ali Zaidi. African leaders are especially anxious to find ways for growing their electricity portfolios, both to fuel development and to reach hundreds of millions of people who still have no access to electricity at all. The African Development Bank and World Bank presidents spoke Monday about their project to expand electricity access to more than 300 million people on the continent, for which the banks were seeking $30 billion in private sector investment. "You cannot really grow the global economy without energy," said Africa Development Bank president Akinwumi Adesina, during an event hosted Monday by the Global Energy Alliance for People and Planet. "You cannot industrialize in the dark." Sign up here. https://www.reuters.com/sustainability/leaders-focus-renewables-un-sidelines-2024-09-24/

2024-09-24 20:13

LOS ANGELES/WASHINGTON, Sept 24 (Reuters) - Officials from President Joe Biden's administration are monitoring labor talks but not trying to broker a labor deal to avert an Oct. 1 strike at U.S. East and Gulf Coast ports that handle roughly half of the country's ocean imports, administration officials said on Tuesday. Negotiations between the International Longshoremen's Association union and the United States Maritime Alliance (USMX) employer group appear to be deadlocked over pay as the Sept. 30 contract expiration approaches. A threatened strike by 45,000 ILA-represented workers at three dozen affected ports, including New York and New Jersey, Houston and Savannah, Georgia, would send delays and costs cascading through U.S. supply chains at a time when rising costs for necessities like food, housing and healthcare have become a pivotal issue in the Nov. 5 presidential election. "We are monitoring and assessing potential ways to address impacts to U.S. supply chains related to operations at our ports, if necessary," White House spokesperson Robyn Patterson said. "We continue to encourage the parties to continue negotiating towards an agreement that benefits all sides and prevents any disruption," she said. The USMX, which includes container carrier and terminal owner Maersk (MAERSKb.CO) , opens new tab, on Monday said the Department of Labor, the Federal Mediation & Conciliation Service and other federal agencies had reached out to the employer group. Acting Labor Secretary Julie Su and the Department of Labor for more than a month has been in touch with the negotiating parties because establishing lines of communication is standard operating procedure, an administration official said. Any involvement in negotiations would be at the invitation of both the union and employers. The Biden administration has said the president does not intend to invoke a federal law known as the Taft-Hartley Act to prevent a strike at ports on the East Coast and Gulf of Mexico. Acting on the invitation of both sides involved in last year's West Coast port negotiations, Biden dispatched Su to help hammer out a deal, which resulted in a 32% pay increase over the life of the new contract. Sign up here. https://www.reuters.com/world/us/biden-administration-taking-hands-off-approach-us-port-talks-administration-2024-09-24/

2024-09-24 20:02

2045 demand forecast up 3 mln bpd from last year's outlook OPEC extends forecast to 2050, with demand at 120.1 mln bpd OPEC sees no peak demand, unlike BP and IEA forecasts OPEC calls for $17.4 tln investment in oil industry by 2050 LONDON/RIO DE JANEIRO, Sept 24 (Reuters) - OPEC raised its forecasts for world oil demand for the medium and long term in an annual outlook, citing growth led by India, Africa and the Middle East and a slower shift to electric vehicles and cleaner fuels. The Organization of the Petroleum Exporting Countries, in its 2024 World Oil Outlook published on Tuesday, sees demand growing for a longer period than other forecasters like BP (BP.L) , opens new tab and the International Energy Agency, which expect oil use to peak this decade. "Future energy demand is found in the developing world due to increasing populations, middle class and urbanization," said OPEC Secretary General Haitham Al Ghais during the report's launch in Brazil, a country with which the group is seeking to form closer ties. Al Ghais' speech in Rio de Janeiro was briefly disturbed by a protester from Greenpeace. A longer period of rising consumption would be a boost for OPEC, whose 12 members depend on oil income. In support of its view, OPEC said it expected more push back on "ambitious" clean energy targets, and cited plans by several global carmakers to scale down electrification goals. "There is no peak oil demand on the horizon," Al Ghais wrote in the foreword to the report. "Over the past year, there has been further recognition that the world can only phase in new energy sources at scale when they are genuinely ready." OPEC expects world oil demand to reach 118.9 million barrels per day (bpd) by 2045, around 2.9 million bpd higher than expected in last year's report. The report rolled out its timeline to 2050 and expects demand to hit 120.1 million bpd by then. That is far above other 2050 forecasts from the industry. BP projects oil use will peak in 2025 and decline to 75 million bpd in 2050. Exxon Mobil (XOM.N) , opens new tab expects oil demand to stay above 100 million bpd through 2050, similar to today's level. OPEC has been calling for more oil industry investment and said the sector needs $17.4 trillion to be spent to 2050, compared with $14 trillion needed by 2045 estimated last year. "All policymakers and stakeholders need to work together to ensure a long-term investment-friendly climate," Al Ghais wrote. HIGHER 2029 FORECAST THAN IEA OPEC also raised its medium term demand forecasts, citing a stronger economic backdrop than last year as inflation pressure wanes and central banks start to lower interest rates. World demand in 2028 will reach 111 million bpd, OPEC said, and 112.3 million bpd in 2029. The 2028 figure is up 800,000 bpd from last year's prediction. OPEC's 2029 forecast is more than 6 million bpd higher than that of the IEA, which said in June demand will plateau in 2029 at 105.6 million bpd. The gap is larger than the combined output of OPEC members Kuwait and the United Arab Emirates. In 2020, OPEC made a shift when the pandemic hit oil demand, saying consumption would plateau in the late 2030s. It has begun raising forecasts again as oil use has recovered. By 2050, there will be 2.9 billion vehicles on the road, up 1.2 billion from 2023, OPEC forecast. Despite electric vehicle growth, vehicles powered by a combustion engine will account for more than 70% of the global fleet in 2050, the report said. "Electric vehicles are poised for a larger market share, but obstacles remain, such as electricity grids, battery manufacturing capacity and access to critical minerals," it said. OPEC and its allies, known as OPEC+, are cutting supply to support the market. The report sees OPEC+'s share of the oil market rising to 52% in 2050 from 49% in 2023 as U.S. output peaks in 2030 and non-OPEC+ output does so in the early 2030s. Sign up here. https://www.reuters.com/business/energy/opec-rolls-out-global-oil-outlook-2050-sees-no-peak-demand-2024-09-24/

2024-09-24 19:58

HAVANA, Sept 24 (Reuters) - Tropical Storm Helene is expected to unleash mudslides and flooding in Cuba before reaching major hurricane strength on Thursday as it hits Florida with life-threatening ocean surge, the U.S. National Weather Service said. Helene was churning about 180 miles (277 km) south of the western tip of Cuba as it barreled northwest, with maximum sustained winds of 45 mph (72 kph), the Miami-based National Hurricane Center said in its latest advisory on Tuesday. Forecasters predict Helene will strengthen quickly over the warm waters of the Gulf of Mexico to become a major hurricane, packing winds as high as 115 mph. In the U.S., state and national authorities warned of damaging winds and surging walls of seawater driven inland, inundating low-lying coastal areas of Florida's panhandle and west coast as early as Wednesday. Governor Ron DeSantis declared a state of emergency , opens new tab in most Florida counties. People in some regions already faced mandatory evacuation orders on Tuesday ahead of expected coastal flooding. White House spokesperson Jeremy Edwards said President Joe Biden had been briefed on the storm and was in touch with local officials. "Federal resources and personnel are prepositioned, including generators, food, and water, along with search and rescue and power restoration teams," Edwards said. CUBA RAINS Sheets of rain began lashing western Cuba on Tuesday morning, prompting authorities to shut down schools, close ports and recall fishing boats. Farmers scrambled to secure thousands of tonnes of prized tobacco, the coveted raw material for fine Cuban cigars, ahead of the expected high winds. A hurricane watch and tropical storm warnings were in effect across the western third of Cuba, while the capital Havana was expected to see heavy rain and more moderate winds. Residents across much of Cuba - already saddled by economic crisis and facing severe shortages of fuel, food and medicine - battened down homes and farms ahead of the storm. Cuban housewife Yoli Gigato, a resident of Mantua, on the far western tip of the island, said she and her children were bracing for the worst, sealing windows and sand-bagging her roof. "Our experiences with hurricanes have been terrible," Gigato said, recalling the direct hit from Hurricane Ian two years prior. "We are praying that the damage is not so serious." The storm's path also passes over the northeastern tip of Mexico's Yucatan Peninsula. In Cancun, fishermen pulled boats onto the sand and hotel workers removed sun beds under a darkening sky. Climate scientists say annual hurricanes in the Caribbean and Gulf of Mexico region have grown more frequent and severe due to global warming. The storm is expected to move north later in the week over parts of Georgia, Tennessee and Kentucky, bringing isolated flash and urban flooding, the weather service said. U.S. oil producers have been evacuating staff from platforms in the Gulf of Mexico as the storm has approached. Sign up here. https://www.reuters.com/world/us/storm-helene-hit-cuba-reach-hurricane-force-florida-2024-09-24/