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Republicans struggle to unite on climate message

  • Market: Coal, Crude oil, Emissions, Natural gas, Oil products
  • 10/07/19

Some Republicans in the US Congress are trying to get President Donald Trump to change his tune on climate change as they try to shift the party's messaging away from denying human activity is chiefly responsible for rising temperatures.

More rank-and-file Republicans say they want to find solutions to cutting greenhouse gases and adapting to the effects of warming temperatures. But Trump's skepticism of climate science is becoming an obstacle to unifying on "energy innovation" climate message they think will be more compelling to voters than Democratic proposals such as the Green New Deal.

Senator Lindsey Graham (R-South Carolina) said he wanted Trump to closely review the science, "admit climate change is real" and come up with solutions. Failure to agree that climate change is a problem will make it harder for Republicans to make their case to voters why innovation from the private sector is the best response to climate change, he said.

"We will win the solutions debate, but the only way you are going to win that debate is to admit you have got a problem," Graham said today during the launch of a new Republican caucus that will promote conservation and resolving environmental problems. Senators Lisa Murkowski (R-Alaska), the chairman of the Energy and Natural Resources Committee, and Cory Gardner (R-Colorado), who sits on the panel, are also members of the caucus.

Trump has long claimed climate change is a hoax, and his administration has been working to dismantle initiatives to reduce emissions. As recently as January, Trump mocked the idea of global warming because there was a cold snap.

"I believe there's a change in weather, and I think it changes both ways," he said in June.

But Trump's view is unpopular with voters. In a national poll of 1,008 adults, 62pc disapproved of how Trump is handling climate change, according to a poll that the Washington Post and ABC News released on 7 July. Trump gave a 45-minute speech on "environmental leadership" this week where he mentioned US reductions in carbon emissions but otherwise did not discuss climate change.

Republicans lawmakers have rallied around the idea that innovation — in areas such as carbon capture, nuclear energy and gas production — are the easiest way to cut greenhouse gas emissions. Democratic candidates who want to challenge Trump in 2020 instead say they want tighter regulations on greenhouse gases and increased deployment of renewable energy.

US oil and gas companies have been supporters of the idea that innovation, in the form of shale drilling technology that boosted production of cleaner-burning natural gas, is one of the most cost-effective ways to reduce greenhouse gases. ExxonMobil, BP, Shell, Total and other major producers also say they support a revenue-neutral carbon tax to address climate change.


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03/04/25

Crude, equity markets tumble on US tariffs

Crude, equity markets tumble on US tariffs

Houston, 3 April (Argus) — WTI and Brent crude futures were down by more than 7pc early Thursday as markets weigh the potential for large scale economic disruption from US President Donald Trump sweeping tariffs for a range of imports. Equity markets also fell sharply with the Nasdaq down by nearly 5pc and the S&P 500 down by about 4pc as of 10:30am ET. The US dollar was also falling, down by more than 2pc this morning. The front-month Nymex May WTI contract was trading at $66.47/bl, down by more than $5/bl as of 11:35am ET. ICE Brent was trading at $69.81/bl, also down by more than $5/bl. All foreign imports into the US will be subject to a minimum 10pc tax with levels as high as 34pc for China under Trump's sweeping tariff measure. Trump has exempted many energy and mineral products from the new tariffs, and much of the trade with Canada and Mexico appears to be remaining governed by the US Mexico Canada (USMCA) trade agreement. Oxford Economics said Thursday it is considering revising downward its 2025 global GDP growth estimate from 2.6pc to 2pc and 2026 growth may drop below 2pc. This is under the assumption that the Trump tariff's stick and are not rapidly negotiated to lower tariff levels. Latin American and Asian economies with exports to US are the most exposed to the GDP downgrades, Oxford said. Oxford also said that global recession will likely be avoided, despite the strains of the tariffs. Meanwhile, the EU is preparing countermeasures against the tariffs. European Commission president Ursula von der Leyen said the bloc is finalising a first package of countermeasures to previously-announced US tariffs on steel, preparing for further countermeasures and monitoring for any indirect effects US tariffs could have. China also promised to take unspecified countermeasures against the new US import tariffs, which will raise duties on its shipments to the country to over 50pc. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Opec+ eight to speed up unwinding crude cuts from May


03/04/25
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03/04/25

Opec+ eight to speed up unwinding crude cuts from May

Dubai, 3 April (Argus) — A core group of eight Opec+ crude producers in a surprise move today have sped up plans to gradually unwind some 2.2mn b/d of production cuts by upping output by 411,000 b/d in May. "In view of the continuing healthy market fundamentals and the positive market outlook… the eight participating countries will implement a production adjustment of 411,000 b/d equivalent to three monthly increments, in May 2025," said the group comprising Saudi Arabia, Russia, the UAE, Kuwait, Iraq, Algeria, Oman and Kazakhstan. The decision to increase output by 411,000 b/d in May will kick in with the start of the summer season in the northern hemisphere when oil demand typically picks up. But it also comes on the heels of the US announcing sweeping new global tariffs for a range of imports. Ice Brent crude futures were down by more than 6pc from the close on 2 April, at $70.15/bl at 13:04 GMT, after briefly dipping below $70/bl earlier today, following the two announcements. The administration of US president Donald Trump could welcome today's Opec+ decision. Trump had already made calls to the Opec group to "bring down the cost of oil" — something that could be achieved by raising output. The eight Opec+ countries last month decided to proceed with a plan to begin gradually unwinding some 2.2mn b/d of production cuts from April and over an 18-month period — pushing their combined output targets up by 137,000 b/d averaged on a monthly basis through September 2026. The monthly increases could end up being smaller as seven of the eight countries, excluding Algeria, have committed to compensating for past overproduction. The Opec+ group of eight today maintained that increases may be paused or reversed subject to evolving market conditions. "This flexibility will allow the group to continue to support oil market stability," it said, adding that the measure "will provide an opportunity for the participating countries to accelerate their compensation". But the group's commitment to voluntary production adjustments and compensation for overproduction has been shaky at best. Opec+ secondary sources pointed to overproduction from Saudi Arabia, Russia, the UAE, Kuwait, Iraq, Oman and Kazakhstan since the start of last year. The countries submitted new compensation plans to the Opec secretariat late last month. The implementation of the compensation cuts in the coming months has become essential for the group, in order to try and balance the planned gradual increases and ensure markets are not oversupplied. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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South Korea’s GS Energy seeks term LNG from 2028


03/04/25
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03/04/25

South Korea’s GS Energy seeks term LNG from 2028

Singapore, 3 April (Argus) — South Korean private-sector firm GS Energy's subsidiary GS Energy Trading Singapore is seeking LNG deliveries starting from 1 January 2028, over a 5-15 year period. The first round of offers will be due on 25 April and the second to close on 1 August later this year. The firm has requested volumes of up to 0.81mn t/yr in 2028 and up to 0.97mn t/yr from 2029 onwards. This is equivalent to around 13-14 cargoes/yr in 2028 and about 16-17 cargoes/yr from 2029 onwards, assuming an average LNG cargo size of 60,000t. The cargoes will be delivered to the country's 10.8mn t/yr Boryeong terminal, which is owned by power producers SK E&S and GS Energy. The firm has also specified for offers to be linked to Brent or a hybrid of Brent and Henry Hub. South Korean utility Korea South-East Power in June 2024 also signed an agreement with TotalEnergies for a five-year term delivery of up to 500,000 t/yr of LNG to South Korea from 2027. Meanwhile, state-owned gas incumbent Kogas is expected to operate with a smaller pool of long-term LNG supplies from 2025, with the government granting it more flexibility in its procurement strategy. Long-term contracted supply volumes may typically be priced at a higher premium, and could be deemed as a small price for buyers to secure supply security, traders said. By Naomi Ong Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Oil futures, stock markets fall on Trump tariffs


03/04/25
News
03/04/25

Oil futures, stock markets fall on Trump tariffs

Singapore, 3 April (Argus) — US president Donald Trump's announcement of sweeping new tariffs on all US imports has sparked an immediate sell-off in oil futures and stock markets. Crude oil futures fell by almost 3.5pc in Asian trading and some stock markets in the region fell by a similar amount, after Trump unveiled the new import tariffs on 2 April. All foreign imports into the US will be subject to a minimum 10pc tax, with levels as high as 34pc for China and 20pc for the EU, Trump said. But energy and some mineral products have been excluded from the new tariffs. Tariffs on Japan and South Korea, both major trading partners and long-standing US allies in Asia, have been set at 24pc and 25pc respectively. Indonesia, Vietnam, Taiwan and Thailand also face tariffs of more than 30pc. Tariffs on imports from China will be subject to a 54pc rate, after taking into account the 20pc tariffs imposed by Trump over the last two months. Some imports from China that are subject to pre-existing tariffs will face an even higher effective rate. The blanket 10pc tariffs will take effect on 5 April. Any additional country-specific rates will come into force on 9 April. Oil futures fell despite the exemption for energy products. The June Brent contract on the Ice exchange fell by as much as 3.2pc to a low of $72.52/bl in Asian trading, while May Nymex WTI dropped by 3.4pc to $69.27/bl. The prospect that the US tariffs could disrupt global trade and hit export-focused economies in Asia sent stock markets in Tokyo, Hong Kong and South Korea down by 2-3pc or more. US stock futures also fell sharply. By Kevin Foster Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Mexico manufacturing extends contraction in March


02/04/25
News
02/04/25

Mexico manufacturing extends contraction in March

Mexico City, 2 April (Argus) — Mexico's manufacturing sector contracted for a 12th consecutive month in March, with production and employment both deepening their slides, according to a survey released today. The manufacturing purchasing managers' index (PMI) ticked up to 47.2 in March from 47.1 in February, but remained below the 50-point threshold between contraction and expansion, according to the latest PMI survey from the finance executive association IMEF. Manufacturing, which accounts for about a fifth of Mexico's economy, is led by the auto sector, contributing about 18pc of manufacturing GDP. Within the manufacturing PMI, the new orders index rose by 1.3 points to 45.3, still deep in contraction. Meanwhile, production fell by 0.6 points to 44.6. The employment index also declined 0.6 points to 46.4 in March, now in contraction for 14 consecutive months. Meanwhile, the non-manufacturing PMI — covering services and commerce — declined 0.8 points to 48.8 in March from 49.6 in February, holding in contraction for a fourth consecutive month. Within the non-manufacturing PMI, new orders fell 1.5 points to 48.2 and production declined 1 point to 47.5 with employment down a point as well in March to 47.5, as all three pushed deeper into contraction. In contrast, the inventories component rose 3.5 points to 50.6 into expansion territory in March. But this may be the result of company strategies to stockpile inventories ahead of US tariffs and the reciprocal measures Mexico is set to announce on 3 April, IMEF technical advisory board member Sergio Luna said. PMI data show that the economic stagnation that began in late 2024 persisted through March, with results from January and February pointing to a sharp slowdown in the first quarter, IMEF said. This follows annualized GDP growth of 0.5pc in the fourth quarter of 2024, slowing from 1.7pc in the third quarter, according to national statistics agency data. Luna said concerns over US tariffs continue to drive much of the uncertainty reflected in the PMI data. Internal factors — such as reduced government spending to contain the fiscal deficit and investor unease over judicial reforms passed last year — are also weighing on activity, Luna added. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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