Commodities
COP28: US touts climate leadership as oil and gas output hits record
© Reuters. U.S. Vice President Kamala Harris speaks during the United Nations Climate Change Conference COP28, in Dubai, United Arab Emirates, December 2, 2023. REUTERS/Amr Alfiky
2/3
By Richard Valdmanis, Sarah McFarlane and Simon Jessop
DUBAI (Reuters) -U.S. Vice President Kamala Harris sought to claim the mantle of global climate leadership for the United States on Saturday in a speech to the COP28 summit, listing a slew of initiatives to cut emissions and harness renewable energy in the world’s largest oil and gas producer.
The address came on the second day of back-to-back speeches by world leaders at the conference in Dubai, where nearly 200 nations are hashing out an international approach to tackling global warming and debating whether fossil fuels should maintain a role in a future energy economy.
“Two years ago, President Joe Biden stood on stage at COP26 and made a declaration of ambition: The United States of America will once again be a global leader in the fight against the climate crisis,” Harris said. “Since then, the United States has turned ambition into action.”
She listed the more than $400 billion in subsidies provided by the 2022 Inflation Reduction Act, Biden’s signature climate law, which has triggered a flood of clean energy investment. She also announced a new $3 billion pledge to the Green Climate Fund, which helps developing countries combat global warming.
On the sidelines of the conference, the United States also unveiled new measures to curb emissions of the powerful greenhouse gas methane from oil and gas operations.
“Today, we are demonstrating through action how the world can and must meet this crisis,” Harris said.
The United States, the world’s second largest greenhouse gas emitter behind China, has seen a surge in investment for clean energy projects ranging from solar farms to wind turbines and electric vehicle battery factories in recent years.
But it has also grown into the globe’s biggest producer of oil and gas – the main source of climate emissions – following a technology-driven drilling boom in the sprawling Permian Basin in Texas and New Mexico.
That awkward coincidence underscores one of COP28’s most contentious questions: Can the world’s response to climate change involve continuing use of fossil fuels?
Among the decisions nations must make will be whether to agree, for the first time, to gradually “phase out” fossil fuels and replace them with renewable energy sources.
Harris told the conference that the United States supports phasing out of “unabated coal” use, but she did not mention other fossil fuels.
The COP28 host, OPEC-member United Arab Emirates, hopes to sell a vision of a low-carbon future that includes, not shuns, fossil fuels – mainly through the use of technologies that can capture carbon dioxide to keep it from the atmosphere, or by making oil and gas operations cleaner.
FOSSIL FIRMS VOW TO DECARBONISE OPERATIONS
The UAE on Saturday announced a commitment by 50 energy firms representing around 40% of global oil output to cut methane emissions from their operations to near zero by 2030, and eliminate all greenhouse emissions from their operations by 2050.
U.S. oil major Exxon Mobil (NYSE:) and Saudi Arabia’s Aramco (TADAWUL:) were among the companies that joined the initiative, although both already had these targets in place via their membership of the Oil and Gas Climate Initiative (OGCI).
Climate campaigners were skeptical of the pledges.
“Net zero commitments that haven’t been backed up by plans and aren’t anchored in government regulation are not worth celebrating. We need to be moving from pledges to regulation,” said Catherine Abreu, founder of the non-profit Destination Zero.
“We’ve seen a long history of oil companies making climate pledges that don’t result in real action.”
John Podesta, a senior energy advisor to U.S. President Joe Biden, told Reuters on Saturday that record U.S. production was helping to keep consumer prices steady after Russia’s invasion of Ukraine.
He added that the United States has tried to reduce drilling on public lands and waters, but has been pushed back by courts, and that U.S. policy was now mainly focused on limiting demand for petroleum.
“We’re in a context in which we need to reduce production of fossil fuels and … we need to be on a path of lower consumption. Our policies are aimed at doing that,” he said.
The conference on Saturday also featured a slew of international deals to make energy systems more climate-friendly around the world, including by boosting renewable sources and nuclear energy, and by choking off financing for coal.
Elsewhere, the United States was among a group of 56 countries to commit to steps to accelerate decarbonisation by 2030 across sectors including power, road transport, steel, hydrogen and agriculture.
___
For daily comprehensive coverage on COP28 in your inbox, sign up for the Reuters Sustainable Switch (NYSE:) newsletter here.
By Nicole Jao
NEW YORK (Reuters) -Oil prices edged lower on Monday in thin trade ahead of the Christmas holiday on concerns about a supply surplus next year and a strengthened dollar.
futures settled down 31 cents, or 0.43%, at $72.63 a barrel. U.S. West Texas Intermediate crude futures fell 22 cents, or 0.32%, to $69.24 a barrel.
Macquarie analysts projected a growing supply surplus for next year, which will hold Brent prices to an average of $70.50 a barrel, down from this year’s average of $79.64, they said in a December report.
Concerns about European supply eased on reports the Druzhba pipeline, which sends Russian and Kazakh oil to Hungary, Slovakia, the Czech Republic and Germany, has restarted after halting on Thursday due to technical problems at a Russian pumping station.
The U.S. dollar was hovering around two-year highs on Monday morning, after hitting that milestone on Friday.
“With the U.S. dollar changing from weaker to stronger, oil prices have given up earlier gains,” UBS analyst Giovanni Staunovo said.
A stronger dollar makes oil more expensive for holders of other currencies.
On Friday, U.S. data that showed cooling inflation helped alleviate concerns after the Federal Reserve interest rate cut last week.
“With the Fed sending mixed signals and some of these economic data points not being all that robust, the market is listless,” said John Kilduff, partner at Again Capital in New York.
Brent futures fell by around 2.1% last week, while WTI futures lost 2.6%, on concerns about global economic growth and oil demand after the U.S. central bank signalled caution over further easing of monetary policy.
Research from Asia’s top refiner Sinopec (OTC:) pointing to China’s oil consumption peaking in 2027 also weighed on prices.
U.S. President-elect Donald Trump on Friday urged the European Union to increase U.S. oil and gas imports or face tariffs on the bloc’s exports.
Trump also threatened to reassert U.S. control over the Panama Canal on Sunday, accusing Panama of charging excessive rates to use the Central American passage and drawing a sharp rebuke from Panamanian President Jose Raul Mulino.
Investing.com– Gold prices edged higher on Tuesday, extending their tepid performance as investors still remained cautious with the rising dollar following the U.S. Federal Reserve’s hawkish tilt.
Traders also refrained from placing large bets ahead of a shortened trading week due to the Christmas holiday.
inched up 0.2% to $2,616.95 per ounce, while expiring in February ticked up 0.2% to $2,633.89 an ounce.
The yellow metal had inched up 0.3% on Monday, after losing more than 1% in the previous week, reflecting uncertainty about the metal’s outlook.
Bullion under pressure on Fed rate outlook
Gold prices had hit a one-month low on Wednesday, as the Fed meeting indicated that rates will remain higher for a longer period after Wednesday’s cut.
Prices have failed to fully recover from it and have seen subdued moves as investors still assessed the implications of the Fed’s rate outlook.
Higher interest rates put downward pressure on gold as, as the opportunity cost of holding gold increases, making it more attractive compared to interest-bearing assets like bonds.
Traders are now expecting only two quarter-point reductions in 2025 amid continued economic resilience and still-elevated inflation. This compares to expectations of four rate cuts before the Fed meeting.
Strong dollar creates downward pressure on gold, other metals
The Fed’s hawkish shift provided renewed strength to the U.S. dollar, as higher interest rates make the greenback more attractive due to increased returns on dollar-denominated assets.
The rose 0.1% in Asia hours on Tuesday and hovered near a two-year high it reached last week.
A stronger dollar often weighs on gold prices as it makes the yellow metal more expensive for buyers using other currencies.
Other precious metals were largely muted. inched up 1.2% to $960.15 an ounce, while gained 0.3% to $30.265 an ounce.
Copper subdued on strong dollar, seasonal factors
Among industrial metals, copper prices were subdued and moved within tight ranges on Tuesday as a strong greenback weighed on the red metal.
Analysts attributed the weakness in copper to seasonal sluggishness as industrial production and construction projects often slow down as businesses and projects prepare for year-end closures and holidays.
Benchmark on the London Metal Exchange were largely unchanged at $8,954.50 a ton, while one-month were 0.5% higher at $4.1045 a pound.
Investing.com– Oil prices rose Tuesday, but stuck to a tight trading range as traders remained uncertain over a potential supply glut and softening demand in the coming year.
At 11:58 ET (17:58 GMT), rose 1.1% to $73.44 a barrel, and rose 1.2% to $70.03 a barrel.
Trading volumes were thin ahead of the Christmas holiday, while strength in the dollar also weighed on oil prices after the Federal Reserve signaled a slower pace of rate cuts in 2025.
Oil nurses losses in 2024 as demand jitters weigh
and WTI prices were down about 5% so far in 2024, with persistent concerns over slowing demand in China being a key point of pressure.
Chinese oil imports steadily dropped this year as the world’s largest oil importer struggled with slowing economic growth. While the country did outline plans to ramp up fiscal spending and stimulus measures in the coming year, markets were still holding out for more clarity on the planned measures.
Increased electric vehicle adoption in China also undermined fuel demand in the country.
Both the OPEC and the IEA have forecast slower demand growth in 2025 due to slowing demand in China. The country is also expected to face increased economic headwinds from a renewed trade war with the U.S. under Donald Trump.
Supply uncertainty spurs caution; US inventory data awaited
Oil markets were on edge over a potential supply glut in 2025. While the OPEC recently agreed to extend its ongoing supply cuts until at least mid-2025, production elsewhere could potentially increase.
US oil production remained close to record highs, and could potentially increase in the coming year, especially as Trump vowed to ramp up domestic energy production.
US inventory data, from the , is due later Tuesday and is set to offer more cues on oil production and supply.
(Peter Nurse contributed to this article.)
Forex2 years agoForex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Forex2 years ago
How is the Australian dollar doing today?
- Forex2 years ago
Unbiased review of Pocket Option broker
- Forex2 years ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985
- Cryptocurrency2 years ago
What happened in the crypto market – current events today
- World2 years ago
Why are modern video games an art form?
- Commodities2 years ago
Copper continues to fall in price on expectations of lower demand in China
- Forex2 years ago
The dollar is down again against major world currencies
