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US Judge reduces Standing Rock verdict to $345 Million
Greenpeace, an environmental group that protests against Dakota Access Pipeline construction, was awarded $667 million in damages by a jury in North Dakota. The judge reduced this amount to about half on Wednesday. The State District Judge James Gion ruled that the amount Greenpeace is owed by Energy Transfer, a pipeline company, should be limited at $345 million. He found some of the damages to be excessive or duplicative. Greenpeace's interim general attorney, Marco Simons said that the group "still believes that the remaining allegations are legally unfounded." The case, he added, "has always involved a wealthy corporate using the legal system in order to intimidate and muzzle its critics and protesters who threatened its business model." Energy Transfer's spokespeople and attorney did not immediately reply to our requests for comments on this decision. Dakota Access, a project located near the Standing Rock Indian Reservation, began in 2016 but was completed by 2017. Environmental and tribal groups protested the construction of the pipeline that transports approximately 40% of oil produced in North Dakota’s Bakken region. They claimed it would poison local water supplies and worsen climate change. Energy Transfer, a Texas-based company, sued Greenpeace first in North Dakota federal courts in 2017. It accused Greenpeace of spreading lies about the project and paying for protesters to disrupt its construction. In March, the North Dakota jury handed down its verdict, which included damages for defamation and conspiracy, as well as trespassing. In February, Greenpeace filed a counter-suit against Energy Transfer in The Netherlands under a European Law aimed at curbing lawsuits brought to silence or harass activists. This lawsuit is still ongoing. Blake Brittain, Washington, and Edwina Gibbs edited the report.
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Hyundai Motors breaks ground on a $680 million hydrogen fuel-cell plant in South Korea
Hyundai Motors broke ground in South Korea for a hydrogen fuel cell facility worth $654 million, as it intensifies its efforts to consolidate its leadership in the hydrogen-powered mobility sector. Hyundai Motors, along with its Kia Corp affiliate, is the third largest automaker in the world by sales. The facility will produce electrolyzers and fuel cells for a variety of applications, including passenger cars, trucks, buses, construction equipment, and marine vessels. The company stated that construction of the new facility, which is located in the industrial city of Ulsan in the south-east, should be completed by 2027. Hyundai said that the new plant would cover 43,000 square meters (10.6 acres), on the former site of an internal combustion engine transmission factory. This was a symbolic shift to emphasize its efforts towards future mobility. $1 = 1,421.4800 Won (Reporting and editing by Heekyong Yahng; Lincoln Feast).
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Extra Space Storage's FFO forecasts for 2025 are below expectations due to a slow same-store growth.
Extra Space Storage, a self-storage facility operator, forecast its core fund from operations for 2025 below Wall Street estimates on Wednesday. This was due to the continued pressure of sluggish growth in same-store sales and a challenging outlook. In after-market trading, shares of the company fell by about 2%. According to data compiled and analyzed by LSEG, Salt Lake City-based real estate trusts expect annual core FFO per share to range between $8.12 to $8.20, which is lower than the average analyst estimate of $8.18. It reported total same store revenues of $673.9 millions for the quarter ending September 30 compared to $675.4 millions a year earlier. Joe Margolis, CEO of the company, said that despite the fact that same-store revenues remained flat, he was encouraged by a gradual improvement in market fundamentals. The company's struggle to regain its pricing power while trying to mitigate the impact of changing occupancy trends in their markets is one of the biggest hurdles. The REIT reported an occupancy rate of 93.7% in the same store for the quarter compared to 93.6% during the same period last. Analysts' estimates of $779.9 millions were exceeded by $858.5 Million. The company's core FFO per share of $2.08 was in line with expectations. Reporting by Abhinav Paramar in Bengaluru, Editing by Alan Barona
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Bousso: The rally for diesel fuel in response to Western sanctions against Russia will not last long.
New sanctions by the West on Russia's oil sector have roiled diesel markets, sending margins for refining to new heights. However, global supplies will not be disrupted severely for very long. Last week, Donald Trump sanctioned Russia’s two largest oil firms, Rosneft, and Lukoil. This followed a similar action by Britain. Trump has taken his first punitive steps against Moscow for its invasion of Ukraine on a large scale in 2022. Russia has been the third largest crude oil exporter in the world and the second biggest diesel exporter. It has shipped over 800,000 barrels of transport fuel per day so far this season, which is around 3% global demand. The U.S. actions are exacerbating the turmoil on the diesel market caused by the European Union adopting a new package of sanctions earlier this month that included a ban of imports of fuels made from Russian crude. This ban, which will take effect in January 2026 closes a loophole primarily benefiting refiners from India and Turkey. The EU and U.S. sanctioning regimes are forcing traders, especially in Europe, which is the largest diesel-importing area, to scramble for alternative supply sources. According to LSEG, as a result of this, the profit margins on the conversion of crude oil to diesel have risen by almost 20% in the last week, to $29 a barrel, the highest level since February 2024. If the recent past is any indication, then this price surge is not likely to last. Rebranding and rerouting According to Kpler, shipping analytics company, Rosneft has exported 182,000 bpd, and Lukoil 138,000 bpd, of diesel on average this year. This represents 39% of the total Russian exports. Turkey is the biggest buyer of Russian diesel. It accounts for 36%, and Brazil, 18%, of its seaborne imports. Many local importers who are not exposed to U.S. financial institutions, such as large companies in Turkey and Brazil, will continue to purchase Russian diesel. China, with its well-established network of traders, tankers and other means to avoid Western sanctions, is likely to absorb some of the surplus diesel produced by Rosneft or Lukoil. This excess diesel will be sold at significant discounts to international prices. The remaining Russian diesel is likely to find its way onto the shadow market, where it will either be blended with other diesels or rebranded. Refiners all over the world will respond quickly to the rise in diesel prices, by adjusting their operations to maximize the diesel output. For example, they may use different crude feedstocks to further mitigate any supply concerns. INDIAN REFINING OFF RUSSIAN DIABETES India will still be heavily impacted by the U.S.-EU restrictions, as it is a top buyer of Russian crude oil and a major diesel exporter to Europe. The bloc has stopped importing Russian Diesel since 2023. According to Kpler, India exported 583,000 barrels per day of diesel this year. This represents around 8% global seaborne volumes. Of these, 106,000 barrels per day went to Europe. India is now the fourth largest source of diesel in the world. Indian refineries are responding to Western sanctions by replacing Urals crude with Indian Urals crude which has high diesel yields. The refiners will be more inclined to seek out alternative crudes with similar diesel yields. Saudi Arabia, Kuwait, Iraq, and the United Arab Emirates are the main producers of these medium-sour grades. All of them have increased their production dramatically this year and offer a wide range of alternatives to Russian crude. The increased competition for the medium-sour grades is likely to lead to higher prices, but refineries are able to maintain their current output levels due to the availability of the product. Reliance Industries in India, the largest refinery complex, operates in Gujarat, a western state of India. It has stated that it will comply to all western sanctions but has no plans to cut production. Reliance exports three-quarters (75%) of India's Diesel, so the majority of Indian sales in Europe will remain stable next year. However, they could be at a higher cost. Not all Indian companies are as flexible. Nayara Energy, which is 49% owned and solely dependent on Russian crude by Rosneft, is another major Indian refiner. Sources say that it is forced to drastically reduce its production in response to the sanctions. Kpler reports that Indian refiners collectively increased exports to 748,000 barrels per day in September, the highest level since March 2022 and immediately after Russia's invasion. The European traders are stocking up Indian diesel ahead of the EU sanctions that will kick in in January next year. They have more than doubled their purchases from the two previous months, to 317,000 bpd in September. But they may not have to worry. Prices spikes on the diesel market will likely be short-lived. This is bad news for global refining companies, but good for European consumers. Want my weekly column, plus links to the latest stories and energy insights delivered to your inbox each Monday and Thursday? Subscribe to my Power Up Newsletter here. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
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Public Storage raises its profit forecast for 2025 on the strength of property income and acquisitions
Public Storage, the operator of self-storage facilities, raised its forecast for 2025's funds from operations to include a lower end. The company cited higher property incomes, a solid acquisition program, and an improved profit. The Glendale-based company expects to generate annual core FFO between $16.70 and $17 for each share. This is a significant increase from the previous expectation of $16.45 to 17% per share. Joe Russell, CEO, said: "We have raised our outlook for 2025 for the second quarter in a row based on superior performance in NOI growth and acquisition activity as well as Core FFO per Share growth." According to data compiled and analyzed by LSEG, the company, which rents out storage space on a monthly base for personal or business use, posted core FFO at $4.31 per share in the third quarter that ended September 30. This compares with analyst estimates of $4.24. As of September 30th, 2025, it will own and operate 3,491 self storage facilities in 40 states across the U.S. This makes it the nation's largest operator of self-storage. The third-quarter revenue was $948.9 millions, which is lower than the Wall Street estimate of $1.21billion. (Reporting and editing by Anil D’Silva in Bengaluru, Abhinav parmar from Bengaluru)
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C.H. Robinson's quarterly profits beat estimates as cost reductions ease weak demand. Shares jump
Global freight forwarder C.H. Robinson, a global freight forwarder, posted a third-quarter profit that was above Wall Street expectations on Wednesday. Cost-cutting initiatives helped Robinson offset the weak freight demand. The Minnesota-based firm has simplified operations by exiting its European Surface Transportation division and reducing staff. It is working to control costs and protect profits amid the continued decline in surface and ocean cargo rates. Operating expenses for the company fell by 12.6% and its average headcount decreased by 10.8% compared to the same quarter a year earlier. C.H. Robinson reported an adjusted profit per share of $1.40 for the quarter ending September 30 compared to analysts' average estimates of $1.30. Ocean services, the company's unit that manages freight costs and optimizes shipping routes, and oversees international compliance, suffered from weaker pricing and volume during the quarter. This led to a decline of 32.5% in its adjusted gross profits. "Global trade policies have affected international freight, which has caused front-loading in the past, dislocations of shipments, and a softening than normal peak season. This, combined with excess vessel capacities, caused ocean rates decline significantly," CEO Dave Bozeman stated. The North American Surface Transportation segment of the company saw a 1.1% increase in revenue due to higher volumes for both truckloads and less-than trucksloads. Bozeman said that despite a steady decline in trucking capacity during the last three years, spot truckload rates are still bouncing around the bottom because of low demand. C.H. Robinson's revenue total decreased 10.9% in the third quarter to $4.14 billion, falling short of expectations of $4.23 million. (Reporting and editing by Alan Barona in Bengaluru, with Abhinav Paramar reporting from Bengaluru)
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US Coast Guard responds near Galveston to an oil spill
The U.S. Coast Guard announced on Wednesday that it was responding to a Tuesday oil spill near Galveston in Texas. The Coast Guard released a statement that said, "Coast Guard Houston-Galveston Watchstanders received an approximately 9:50 pm call reporting a discharge of oil by a ship near Pier 32 in the Port of Galveston after an collision with the pier." It added that the source of the spill had been identified and that the Galveston Ship Channel was closed from Gulf Copper Bridge to Pelican Islands Bridge in order to minimize the impact. The Coast Guard stated that the Texas General Land Office, Forestwave Navigation BV and the responsible party are jointly managing the incident, with personnel on the scene. Coast Guard officials said that the Coast Guard is still investigating the volume of the spill and has not yet received any reports of injury or animal impact.
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Powell's chilling of December rate cuts has caused stocks to fall and the US dollar to strengthen.
The global stock market reversed its course on Wednesday and was on track to end a four session streak of gains, while the U.S. Dollar extended gains following the Federal Reserve Chair Jerome Powell's dampening of expectations for a further U.S. central bank interest rate cut in December. The Fed reduced rates by 25 basis point, citing the limited data visibility caused by the U.S. shutdown. It also announced that it would stop the quantitative tightening of its $6.6 trillion (also known as QT) balance sheet due to evidence that liquidity in the money markets has tightened and bank reserves are falling. The stock market initially gained after the announcement, but then fell after Powell stated that "a further decrease in the policy rate is not predetermined at the December meeting." The policy isn't set in stone. The dollar and U.S. Treasury yields rose as a result. Tony Welch is the chief investment officer of SignatureFD, an Atlanta-based firm. "We think that the inflation risk in 2026 will be higher, and I believe that December may end up being the final cut in this cycle." Markets are expecting three rate cuts in 2019. The market could be disappointed. According to CME's FedWatch Tool, the market had been pricing in an 85% probability of a December rate cut. This dropped to 65% after Powell's remarks. Wall Street saw U.S. stock prices finish off their previous highs. The S&P ended the session almost flat. U.S. stock prices have risen to record highs recently, thanks to a cooling of U.S.-China tensions in trade, the expectation that the Fed will cut rates, the outsized expenditures related to artificial intelligent, and the solid start to corporate earnings season. Nvidia was the first company on Wednesday to surpass the $5 trillion valuation. The shares rose 3% after a 5% jump the day before, when CEO Jensen Huang announced that the AI chip maker will build seven supercomputers for U.S. Department of Energy and has booked $500 billion for its chips. Microsoft lost about 3% after the closing bell. Alphabet gained almost 4%, and Meta fell more than 6%. Each of the megacaps companies reported quarterly results. The Dow Jones Industrial Average dropped 74.37, or 0.16 %, to 47.632.00. The S&P 500 fell 0.30, or zero percent, to 6,890.59, and the Nasdaq Composite climbed 130.98, or 0.55 %, to 23958.47. The MSCI index of global stocks fell 0.61 points or 0.06% to 1,012.99, after reaching an intraday high of 1,017.24. Meanwhile, the pan-European STOXX 600 closed at 0.06%. Bank of Japan policy announcements and European Central Bank policy announcements are expected later this week. After Powell's remarks, the dollar index, which measures greenbacks against a basket currencies, extended gains and was last up by 0.54% at 99.21. The euro, on the other hand, was down by 0.47% to $1.1594. The dollar gained 0.47% against the Japanese yen to reach 152.82, but sterling fell 0.67%, to $1.318, The Canadian dollar fell 0.04% against the dollar to C$1.395. The Canadian dollar initially strengthened following the Bank of Canada's Wednesday reduction of its overnight key interest rate from 2.25% to 2.25%, as was widely expected. It also signaled that this could be the end of its cutting cycle, unless the outlook of inflation and the economic changes. At a recent summit in South Korea between U.S. president Donald Trump and South Korean president Lee Jae Myung, the two leaders finalized their tense trade agreement. Trump was also optimistic about a upcoming meeting with China's Xi Jinping. The yield on the benchmark 10-year U.S. Treasury notes continued to rise after the Fed's policy announcement and chair's remarks. It was last up 9.5 points at 4,0785, which is its largest one-day increase since June 6. The yield on the 2-year note, which is usually in line with Fed rate expectations, jumped 10.8 basis points, to 3.602%. This was also the largest increase since June 6. U.S. crude oil settled at $60.48 per barrel, a 0.55% increase. Brent was $64.92, a 0.81% rise on the day. This is due to a drop in U.S. stocks and optimism regarding trade policies.
US LNG export supremacy tested as Europe's need wilts: Maguire
The United States has remained the largest exporter of liquefied natural gas (LNG) up until now in 2024, but a steep drop in offering costs and a sharp swing in export volumes to crucial markets is likely screening exporter cravings to stay on top.
The United States delivered a record 56.9 million metric tons of LNG throughout the first eight months of 2024, according to Kpler.
That went beyond the 54.3 million lots from Australia and 53.7 million heaps from Qatar throughout that duration, and marks just the second straight year that U.S. exporters have actually topped worldwide export rankings.
Nevertheless, a more than 25% drop in average LNG export prices during the very first half of 2024 from the very first half of 2023 dealt a heavy blow to export earnings, which dropped by $4 billion from the opening half of 2023 to $13.2 billion, data from the U.S. Energy Details Administration (EIA) reveals.
That was the lowest half-year earnings overall since the first half of 2021, and marks a more than $12 billion fall from the second half of 2022 when U.S. export incomes from LNG peaked. The challenge of greatly falling earnings was intensified by a. sharp reconfiguration in export volumes to key markets, which. saw shipments to relatively close markets in Europe come by more. than 20% while sales to more distant Asia rose by over 40%.
Continued soft LNG need in Europe and further growth in. Asia may evaluate the willpower of U.S. exporters to remain the. world's biggest LNG sellers, as several remote Asian markets. can be more inexpensively provided by other sellers.
EUROPE'S FLUCTUATE
Europe's sudden jump in need for LNG because Russia's. intrusion of Ukraine in 2022 snarled gas pipeline streams. to the area has actually been the main catalyst behind the ascendancy. of the U.S. LNG export market.
From 2018 through 2021, U.S. LNG exports to Europe balanced. around 15 million loads a year, according to Kpler, but leapt to. around 55 million tons annually in 2022 and 2023 as Europe's. power firms scrambled to change lost Russian gas by whatever. ways essential.
U.S. exporters enjoyed to assist fill the gas space, lifting. overall export volumes by 95% from 2019's total by the end of. 2022.
Europe's share of the total U.S. LNG traffic likewise approximately. doubled, from around 37% from 2019 through 2021 to nearly 70% in. 2022.
An approximately 44% drop in deliveries to Asia throughout 2022 from the. year before likewise enabled U.S. LNG sellers to focus on Europe. over all other customers, and profit from the unprecedented. supply shock that roiled worldwide gas markets throughout that period.
COOLING OFF
U.S. LNG shipments to Europe scaled even greater heights in. 2023, however the tone has changed in 2024, with shipments from. January through August dropping by 22% from the very same months in. 2023.
An essential motorist behind that slowdown has actually been a sharp climb in. European power generation from renewable energy sources, which. stay a concern for Europe's power companies moving forward.
Solar and wind power's share of electrical power generation in. Europe jumped from around 16.4% in 2022 to 20.5% up until now in 2024,. according to Coal.
To make way for the greater renewables generation, fossil. fuel generation's share dropped from around 44.6% in 2022 to. 36.6% up until now this year.
Coal-fired power has been the primary nonrenewable fuel source that. has been cut in Europe, but gas generation's share has. likewise decreased, from around 26% in 2022 to 22% so far this year.
PIVOT
Lower gas reliance throughout Europe is bad news for U.S. LNG. exporters.
To offset lower sales into Europe, U.S. exporters may. attempt to grow share in Asia, which is a clear brilliant spot for. global gas sellers.
Nevertheless, other major exporters consisting of Qatar and Australia. boast far lower shipping distances to crucial Asian markets, on top. of competitive gas liquefaction charges.
Deliveries to India, for instance, can take 5 times longer. from Cove Point in the U.S. than from Ras Laffan in Qatar, LSEG. data shows.
And Australia can ship LNG to southern China in under nine. days, compared to 35 days from the U.S. East Coast.
The U.S. LNG tanker fleet has the ability to handle such long. distances, but the stretched-out turn-around times would consume into. exporter incomes, and might lead to the LNG export sector. dialing back shipments to only the biggest purchasers.
That sharper focus would help maintain earnings for the. sector, but might lead to the U.S. losing the leading LNG exporter. area to its main rivals that have expansion plans already in. location to serve fast-growing regional markets.
<< The viewpoints revealed here are those of the author, a. columnist .>
(source: Reuters)