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Tenth of pandemic stimulus spend could help world reach climate goals: study By Reuters

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© Reuters. FILE PHOTO: Smoke and steam rise from a steel plant in Anyang

By Matthew Green

LONDON (Reuters) – The world could get on track to avert catastrophic climate change by investing a tenth of a planned $12 trillion in pandemic recovery packages in reducing dependence on fossil fuels, according to a study published on Thursday.

With the stimulus representing about 15% of global gross domestic product, or three times the commitment after the 2008 financial crisis, scientists say the money could prove pivotal in meeting the temperature goals of the 2015 Paris Agreement.

“It makes absolute sense not just to keep your economy alive with palliative care, but to restructure your economy so it’s future-ready,” Joeri Rogelj, a climate scientist at Imperial College London, and a co-author of the paper, told Reuters.

The most ambitious goal in the Paris accord aims to cap the rise in global temperatures at 1.5 degrees Celsius, which scientists say could avert far more intense disasters, from wildfires and hurricanes to storm surges and floods.

The world could start to bring that target within reach if governments used 10% of the planned stimulus to back climate-friendly projects such as renewable energy or energy efficiency every year for the next five years, according to the paper, published in the journal Science.

Public and private investors would also need to slash investment in fossil fuel-heavy sectors from a projected $1.1 trillion per year over the next five years under existing climate plans, to closer to $800 billion, to begin pivoting the global economy towards net zero carbon emissions by 2050.

While the European Union, Germany, France, South Korea and various others have pledged to support a low-carbon shift, governments have so far mostly used rescue packages to prop up business as usual, according to separate research by Energy Policy Tracker https://www.energypolicytracker.org, a nonprofit research project.

Among G20 countries, the tracker has identified $393 billion worth of government commitments to transport, buildings, power and extractive industries. Of this total, $209 billion directly supported the production and consumption of fossil fuels, and $145 billion went to renewable energy.

“Public commitments since the pandemic are so far critically insufficient to meet Paris targets,” Ivetta Gerasimchuk, sustainable energy lead at the International Institute for Sustainable Development, who works on the tracker, told Reuters.

(This story corrects figure in first paragraph to $12 trillion from $2 trillion)

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Putin Says Russia Open to Delaying Planned OPEC+ Output Hike By Bloomberg

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© Reuters. Putin Says Russia Open to Delaying Planned OPEC+ Output Hike

(Bloomberg) — Russia doesn’t rule out delaying scheduled production hikes by the OPEC+ alliance, President Vladimir Putin said, the latest sign the cartel could restrain crude output for longer as the pandemic crimps demand again.

Production cuts are due to be eased — as part of a gradual tapering — from January but the cartel has hinted it may change tack as demand falters. While Putin said his preference was to adhere to the current plan, his comments are a show of unity between Russia and Saudi Arabia, whose leaders have been engaged in intense telephone diplomacy this month.

“We think there is no need to change anything now,” Putin said Thursday in his address to the Kremlin-backed Valdai Club. Yet “we don’t rule out that we may keep the current restrictions on output, that we don’t lift them as soon as we had planned earlier.”

rose after Putin’s remarks. On Friday, prices again retreated on concern that a second wave of the coronavirus may throw the energy demand recovery in Europe and the U.S. into reverse.

The Organization of Petroleum Exporting Countries and its allies, due to add almost 2 million barrels a day starting January, have warned of a precarious outlook, and increasingly traders have signaled the market can’t absorb the extra barrels.

“If necessary, we can take a decision on further cuts,” Putin said. “But so far we simply see no such need.”

United Front

After two phone calls in a week between Saudi Arabia’s Crown Prince Mohammed Bin Salman and Putin, the countries’ oil ministers displayed a united front at the last OPEC+ meeting. Their top oil officials, Prince Abdulaziz bin Salman and Alexander Novak, offered similarly bearish views and the prince called on the cartel to be “proactive” and ready to “head off negative trends and developments — to nip them in the bud.”

OPEC+ ministers will debate whether to stick to their tapering plan — which was decided during the depths of the oil crisis in April — at a meeting scheduled for Nov. 30-Dec. 1. In July, the group delayed by one month a similar production increase amid doubts about the strength of oil demand.

OPEC+ is a complex yet effective mechanism for stabilizing the global oil market, Putin said. “In this fragmented world, such an approach is really way more fruitful,” he said. Cooperation within the alliance “not only allows to solve specific problems but also is able to breathe new life into multilateral diplomacy.”

Putin spoke hours after Rosneft PJSC Chief Executive Officer Igor Sechin — a longtime OPEC+ skeptic — acknowledged that interactions between energy-producing nations are necessary, and called for action to stabilize the market.

Close Ally

While he didn’t mention OPEC+ by name, Sechin said that the world economy — and oil consumption — may start to recover next year, but that “humankind needs to take coordinated actions to achieve such a result.”

Sechin, a close ally of Putin, said in March — during a price war with Saudi Arabia — that Russia’s cooperation with OPEC could be over.

Despite Sechin’s opposition to OPEC+, Rosneft has been cutting its crude production in line with the group’s agreement. Russia’s overall compliance with the OPEC+ deal has been at 96% to 97% in the past two months.

 

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 Set for Weekly Drop as Virus Flare-Ups Cloud Demand Outlook By Bloomberg

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© Reuters. Oil Set for Weekly Drop as Virus Flare-Ups Cloud Demand Outlook

(Bloomberg) — Oil held above $40 a barrel on fresh optimism that a U.S. stimulus deal is imminent, although the market is set for a weekly decline amid ongoing pandemic-driven demand concerns.

Futures in New York were little changed, after gaining 1.5% on Thursday. House Speaker Nancy Pelosi said she and Treasury Secretary Steven Mnuchin are “just about there” on a deal for a coronavirus relief package, even though Republican opposition in the Senate still poses a hurdle. Prices were also bolstered after President Vladimir Putin said that Russia’s ready to cut oil output further if needed.

Any rally in oil prices still faces resistance from the threat of virus flareups worldwide. In a troubling sign for consumption, Neste Oyj Chief Executive Officer Peter Vanacker said that oil refiners need to cut more capacity, especially in Europe, as demand drops and capacity is added elsewhere. Meanwhile, toll road use in France posted the biggest year-over-year drop last week since July, according to data from Atlantia, which operates such roads.

Putin’s comments on the planned output hikes from the Organization of Petroleum Exporting Countries and its allies come as traders are increasingly signaling the market can’t absorb the extra barrels. The group faces a decision on whether to change its output policy at a meeting scheduled for Nov. 30-Dec. 1.

Physical markets are pointing to some signs of weakness. This week, Mars Blend, a high-sulfur crude, traded at a discount to Nymex oil futures this week for the first time since May, before flipping back to a premium in recent sessions. The price differential decline comes as narrow WTI-Brent and WTI-Dubai spreads discourage interest from overseas.

Exxon Mobil Corp (NYSE:). plans to lay off an unspecified number of employees as low oil prices force the company to delay major projects, Chief Executive Officer Darren Woods said in an email to staff, in the latest sign of struggle among U.S. energy producers navigating the industry’s worst downturn in recent memory.

©2020 Bloomberg L.P.

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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Gold Up Over Strengthening Dollar, Trump and Biden Debate By Investing.com

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© Reuters.

By Gina Lee

Investing.com – Gold was up on Friday morning in Asia, despite a stronger dollar, as President Donald Trump and Democratic candidate Joe Biden made their cases in the final presidential debate before the Nov. 3 presidential election and as investors continued to monitor progress on the latest stimulus measures.

edged up 0.20% at $1,908.35 by 12:14 AM ET (4:14 AM GMT). The dollar inched up on Friday, capping gains for the yellow metal as its appeal to other currency holders lessened.

House of Representatives speaker Nancy Pelosi on Thursday was optimistic that a deal would be reached “pretty soon”, saying that progress was being made in talks with the White House. However, White House economic adviser Larry Kudlow warned that there were still “significant policy differences” unlikely to be resolved before the election, namely Senate Republicans’ opposition to the measures’ price tag.

The U.S. also released positive data on Thursday. fell to 787,000 for the past week, against the expected 860,000 and the previous week’s 842,000 claims. also surged to 6.54 million in September, a more than 14-year high.

Across the Atlantic, the U.K. and the European Union launched intensified daily talks on Thursday, last-ditch efforts to reach a Brexit deal before the end of the year.

Some investors were bullish, with strong investor demand for gold to keep prices high and offset the likely slump in demand from jewellers and central banks in 2021, Refinitiv Metals Research told CNBC.

Holdings in the SPDR Gold Trust (P:), the largest gold-backed exchange-traded-fund, fell 0.1% on Wednesday to 40.8 million ounces.

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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