EPA TO END POWER-PLANT EMISSION CURBS
The Trump administration is formally withdrawing federal limits on carbon emissions at power plants, likely triggering a legal fight with critics of the move, writes The Wall Street Journal’s Timothy Puko.
Power-plant emissions are one of the largest sources of greenhouse gases linked to climate change. President Barack Obama’s administration outlined emissions limits through the Environmental Protection Agency’s Clean Power Plan in 2015.
President Donald Trump, who has called global warming a “hoax,” promised to rollback Obama-era environmental rules while on the campaign trail. He criticized the rules for harming businesses and coal miners in particular.
EPA’s Administrator Scott Pruitt will sign a proposal to reverse the emission rules on Tuesday.
The move further distances Washington from efforts to combat global warming, following Mr. Trump’s June announcement that he intends to withdraw the U.S. from the Paris climate accord.
The decision was met with swift opposition from both states and environmental groups. Experts said they expect the Trump administration’s actions to lead to years of rule-making procedure and litigation.
HUDDLING WITH EUROPE’S BIG OIL PLAYERS
European oil industry players are gathering Tuesday for a wide-ranging summit on the state of the petroleum market, reports Christopher Alessi from Geneva at the Argus Global Markets conference.
Representatives from Europe’s biggest oil companies, including BP PLC, Royal Dutch Shell PLC, Eni SpA of Italy and OMV of Austria are set to discuss crude-oil trading, structural changes in markets and emerging benchmarks.
The participants are expected to debate supply and demand developments in the industry over the past year, including the Organization of the Petroleum Exporting Countries’ efforts to rebalance the market through production cuts, expectations for U.S. shale growth and the widening spread between Brent crude—the global benchmark—and the West Texas Intermediate contract.
The conference is also set to touch on developments in the U.S. Gulf Coast in the wake of this year’s heavy storm season, the state of the European refining sector, regulating commodity markets and potential geopolitical headwinds such as Iran.
Oil markets held on to modest gains on Tuesday, after Saudi Arabia announced plans to cut its monthly exports in November, in an effort to accelerate the draining of global stocks.
Brent crude, the global oil benchmark, rose 0.4% to $56.02 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.4% at $49.76 a barrel.
OPEC CHIEF URGES MORE SUPPLY ACTION
The pace of the rebalancing in global oil markets has accelerated in the past four months with the extension of the production cap agreement led by OPEC, the chief for the oil cartel said Tuesday at an energy forum in New Delhi.
“It is clear that efforts of OPEC and non-OPEC countries have been fruitful,” said Mohammed Barkindo, the secretary-general of OPEC.
The production cap agreement, struck nearly a year ago between OPEC and 10 other external producers including Russia, was to cut production by 1.8 million barrels a day for six months. The agreement was extended this year to March of 2018, though some analysts have speculated that it may be extended even further, writes Biman Mukherji for Dow Jones Newswires.
Still, Mr. Barkindo said that more effort is needed in order to sustain the ongoing rebalance in oil markets, noting that “some extraordinary measures would be considered, including expansion of (OPEC) membership.”
Later at the conference sidelines Mr. Barkindo said that they are also talking to U.S. shale oil producers to achieve the process of market rebalancing.
“It is a shared responsibility for all,” he added.