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Despite shift, energy giants fall short of U.N. climate goals: study By Reuters

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© Reuters. FILE PHOTO: A view of Equinor’s oil platform in Johan Sverdrup oilfield in the North Sea, Norway

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By Ron Bousso

LONDON (Reuters) – Europe’s top oil companies are not yet aligned with U.N.-backed targets to combat climate change despite their plans to slash carbon emissions and pivot to renewable energy, a report from major investors has found.

The study by the Transition Pathway Initiative (TPI), which unites investors with $22 trillion in holdings, comes as shares of European energy companies including BP (NYSE:) and Royal Dutch Shell (LON:) have struggled amid concerns over their ability to successfully shift away from oil and gas.

TPI’s analysis of 59 major oil, gas and coal companies said that seven European firms – Glencore (OTC:), Anglo American (LON:), Shell, Repsol (OTC:), Total, Eni and Equinor – have set out plans to align with long-term pledges made by some governments to cut greenhouse gas emissions.

But those targets equate to global temperatures rising by 3.2 degrees and are “widely regarded as insufficient to avert dangerous climate change,” the report, published on Wednesday, said.

No company was set to meet the United Nations-backed Paris Agreement’s long-term goal of limiting global warming to “well below” 2 degrees Celsius above pre-industrial levels by reducing carbon emissions to net zero, it said.

European oil companies’ emissions strategies vary in scope, pace and calculation methods.

Several of them said in statements to Reuters that they disagreed with the way TPI calculates the alignment, which is based on the carbon intensity of fuels.

“We’re very happy that some oil and gas companies are seeing these fundamental changes and trying to respond,” said Bill Hartnett, stewardship director of ESG Investment at Aberdeen Standard Investments, a TPI member.

“Some (companies) might have made bigger statements so far than the others and the important thing is the direction of travel. But none of them are making net zero yet,” Hartnett told Reuters.

BP, whose CEO Bernard Looney plans to grow the company’s renewables business twenty-fold by the end of the decade, is the least aligned among the European companies, not even meeting the government pledges level, according to the report.

BP said in response that it disagreed with TPI’s focus on carbon intensity, which on its own is not “a reliable measure of progress towards the Paris goals”.

Fossil fuels are the main cause for the release of heat-capturing greenhouse gas emissions.

(GRAPHIC: Oil majors’ climate alignment with Paris-TPI – https://fingfx.thomsonreuters.com/gfx/ce/xklvyqryyvg/Pasted%20image%201601898987404.png)

Investors such as Aberdeen are regularly talking to companies about their Paris Agreement alignment on issues including emissions from fuels sold, known as Scope 3 emissions, and their memberships in energy associations around the world, Hartnett said.

“Engagement is ongoing and there is pretty good momentum on getting towards Paris alignment.”

A Shell spokeswoman said the company continues “to engage with TPI over their methodology” to show it is how it is aligned with “society’s move towards” the Paris goals.

Anglo American said in a statement: “achieving these targets is not all within our control, so we are working with governments, industry peers and civil society.”

Repsol said: “We will continue to engage with TPI to demonstrate our progress in this respect.”

Eni said: “We consider the best way for companies to align with such goals is to set absolute emissions targets.”

Total, which aims to be carbon neutral in Europe by 2050, said in a statement that the rhythm of the transition will depend on energy demand and policies put in place.





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Commodities

Gold Up, Boosted By U.S. Jitters and Weak Dollar By Investing.com

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© Reuters.

By Gina Lee

Investing.com – Gold was up on Tuesday morning, boosted by a weak dollar and concern over the potential economic impact from the ever-rising number of COVID-19 cases.

There are over 43.4 million COVID-19 cases globally as of Oct. 27, according to Johns Hopkins University data.

were up 0.24% at $1,910.30 by 12:58 AM ET (4:58 AM GMT), staying above the $1,900 mark. The was down on Tuesday morning.

The U.S., Russia and France saw record numbers of daily COVID-19 cases, with restrictive measures re-introduced in some European countries. The worries over the potential economic impact of the measures dampened sentiment and drove investors to the safe-haven yellow metal.

In the U.S., talks over the latest stimulus measures seemed to have come to a halt, with White House economic adviser Larry Kudlow on Monday saying talks have slowed. However, House of Representatives Nancy Pelosi remained optimistic that a consensus with Senate Republicans could be reached on the measures before the presidential election, now only a week away.

On the data side, the U.S. reported fall in September’s new single-family homes sales, after four consecutive months of increases. However, the housing market continues to be supported by low mortgage rates and increased demand for home-office space due to COVID-19. Further data, including third quarter GDP, is due to be released later in the day.

Across the Atlantic, the U.K. and the European Union (EU) are working against the clock to bridge gaps and seal a Brexit trade deal. EU chief negotiator will head to London to resume negotiations.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Oil Up, But Oversupply Fears Cap Gains By Investing.com

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© Reuters.

By Adam Claringbull

Investing.com – Oil was up on Tuesday morning in Asia after Monday’s large falls. Surging coronavirus numbers globally are pushing demand expectations down.

rose 0.51% to $41.02 by 12:05 PM ET (4:05 AM GMT) and were up 0.44% to $38.73.

Oil pulled up from its downward trajectory in Asian trade this morning, with a record-breaking 11th hurricane on its way into the Gulf of Mexico. Hurricane Zeta is due to make U.S. landfall on Wednesday, with U.S. rigs and refineries shutting down in preparation for it its arrival.

However, the global surge in COVID-19 cases, especially in Europe and the U.S., has dampened investor enthusiasm for oil, with few signs of an economic recovery any time soon. The U.S. is particularly hard hit, especially in the Sunbelt and Midwest regions.

Lowered demand expectations are not the only factor hampering the market, Libya has returned from its embargo much more rapidly than expected, with the nation now producing close to 1 million barrels per day (bpd), up from less than 100,000 bpd in July.

Further negative sentiment is being raised by the lack of the U.S. government’s ability to decide on and pass a coronavirus stimulus package, with only a very small likelihood of relief measures being passed before the country’s Nov. 3 elections. U.S. House of Representatives Speaker Nancy Pelosi said that she was hopeful a deal could be reached with the White House before that date, but it is unlikely that the U.S. Senate will also agree.

Director of energy futures at Mizuho Securities, Bob Yawger, told Reuters: “The market is under pressure from a toxic brew of no stimulus, rapidly increasing coronavirus cases, and the surprise increase of oil production in Libya.”

The Organization of the Petroleum Exporting Countries (OPEC), has been planning to ease previously agreed production cuts, however, this is looking increasingly unlikely in the present climate, with OPEC Secretary General Mohammad Barkindo saying on Monday: ““We have no illusions, this recovery will take a long time,” at the virtual 2020 India Energy Intelligence Forum.

Investors await crude oil supply data from the , due later in the day.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Oil selloff pauses, but outlook shaky on surging coronavirus cases, supply woes By Reuters

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TOKYO (Reuters) – Oil prices regained a semblance of stability on Tuesday after suffering sharp losses over the previous session and last week, as a resurgence of coronavirus cases globally hit prospects for crude demand while increasing supply also hurt sentiment.

The gloomy backdrop is set to keep prices under pressure over the coming day.

In early Asia, Brent crude () was up 12 cents, or 0.3%, at $40.58 a barrel by 0039 GMT, having dropped more than 3% overnight. U.S. oil () was up 13 cents, or 03%, at $38.69 a barrel, after also declining more than 3% on Monday.

The lack of progress in striking an agreement for a U.S. coronavirus relief package added to the general market gloom, although U.S. House of Representatives Speaker Nancy Pelosi said on Monday she was hopeful a deal with the White House can be reached before the Nov. 3 elections.

A wave of coronavirus infections sweeping across the United States, Russia, France and many other countries has undermined the global economic outlook, with record numbers of new cases possibly forcing some countries to impose fresh restrictions as winter looms.[MKTS/GLOB]

“The market is under pressure from a toxic brew of no stimulus, rapidly increasing coronavirus cases, and the surprise increase of oil production in Libya,” Bob Yawger, director of energy futures at Mizuho Securities.

Prices got some support from the potential drop in U.S. production as oil companies began shutting offshore rigs with the approach of a hurricane in the Gulf of Mexico.

The worst is over for the crude market, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman also said on Monday.

But that contradicted an earlier remark from OPEC’s secretary general, who said any oil market recovery may take longer than hoped as coronavirus infections rise around the world.

Libyan production is expected to reach 1 million barrels per day (bpd) in the coming weeks, the country’s national oil company said on Friday, a quicker return than many analysts had predicted.

That is likely to complicate efforts by the Organization of the Petroleum Exporting Countries to restrict output to deal with weak demand.

OPEC+, the producer group and allies including Russia, is planning to increase production by 2 million bpd from the beginning of 2021 after record output cuts earlier this year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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