Tag Archives: ENV

Night of devastating tornadoes likely kills more than 100 in Kentucky

MAYFIELD, Ky., Dec 11 (Reuters) – At least 100 people were feared dead in Kentucky after a swarm of tornadoes tore a 200-mile path through the U.S. Midwest and South, demolishing homes, levelling businesses and setting off a scramble to find survivors beneath the rubble, officials said Saturday.

The powerful twisters, which weather forecasters say are unusual in cooler months, destroyed a candle factory and the fire and police stations in a small town in Kentucky, ripped through a nursing home in neighboring Missouri, and killed at least six workers at an Amazon warehouse in Illinois.

Kentucky Governor Andy Beshear said the collection of tornadoes was the most destructive in the state’s history. He said about 40 workers had been rescued at the candle factory in the city of Mayfield, which had about 110 people inside when it was reduced to a pile of rubble. It would be a “miracle” to find anyone else alive under the debris, Beshear said.

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“The devastation is unlike anything I have seen in my life and I have trouble putting it into words,” Beshear said at a press conference. “It’s very likely going to be over 100 people lost here in Kentucky.”

Beshear said 189 National Guard personnel have been deployed to assist with the recovery. The rescue efforts will focus in large part on Mayfield, home to some 10,000 people in the southwestern corner of the state where it converges with Illinois, Missouri and Arkansas.

Video and photos posted on social media showed brick buildings in downtown Mayfield flattened, with parked cars nearly buried under debris. The steeple on the historic Graves County courthouse was toppled and the nearby First United Methodist Church partially collapsed.

Mayfield Fire Chief Jeremy Creason, whose own station was destroyed, said the candle factory was diminished to a “pile of bent metal and steel and machinery” and that responders had to at times “crawl over casualties to get to live victims.”

Paige Tingle said she drove four hours to the site in the hope of finding her 52-year-old mother, Jill Monroe, who was working at the factory and was last heard from at 9:30 p.m.

“We don’t know how to feel, we are just trying to find her,” she said. “It’s a disaster here.”

The genesis of the tornado outbreak was a series of overnight thunderstorms, including a super cell storm that formed in northeast Arkansas. That storm moved from Arkansas and Missouri and into Tennessee and Kentucky.

Unusually high temperatures and humidity created the environment for such an extreme weather event at this time of year, said Victor Gensini, a professor in geographic and atmospheric sciences at Northern Illinois University.

“This is an historic, if not generational event,” Gensini said.

Saying the disaster was likely one of the largest tornado outbreaks in U.S. history, President Joe Biden on Saturday approved an emergency declaration for Kentucky.

He told reporters he would be asking the Environmental Protection Agency to examine what role climate change may have played in fuelling the storms, and he raised questions about the tornado warning systems.

“What warning was there? And was it strong enough and was it heeded?” Biden said.

The scene of a train derailment is pictured after a devastating outbreak of tornadoes ripped through several U.S. states in Earlington, Kentucky, U.S. December 11, 2021. REUTERS/Cheney Orr

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‘LIKE A BIG BOMB’

About 130 miles east of Mayfield in Bowling Green, Kentucky, Justin Shepherd said his coffee shop was spared the worst of the storm, which struck other businesses hard on the busy commercial strip just off the bypass to U.S. Highway 31 West.

“We’ve got some siding and roof damage here, but just across the road there’s a brewery that half of it is gone. It’s just totally gone, like a big bomb exploded or something.”

One person was killed and five seriously injured when a tornado tore through a nursing home with 90 beds in Monette, Arkansas, a small community near the border with Missouri, according to Craighead County Judge Marvin Day.

“We were very blessed that more people weren’t killed or injured in that. It could have been a whole lot worse,” Day told Reuters.

A few miles away in Leachville, Arkansas, a tornado destroyed a Dollar General Store, killing one person, and laid waste to much of the city’s downtown, said Lt. Chuck Brown of the Mississippi County Sheriff’s Office in Arkansas.

“It really sounded like a train roaring through town.”

In Illinois, at least six workers were confirmed killed after an Amazon.com Inc (AMZN.O) warehouse collapsed in the town of Edwardsville, when the winds ripped off the roof and reduced a wall longer than a football field to rubble.

Amazon truck driver Emily Epperson, 23, said she was anxiously waiting for information on the whereabouts of her workmate Austin McEwan late Saturday afternoon to relay to his girlfriend and parents.

“We’re so worried because we believe that, you know, he would have been found by now,” she told Reuters.

In Tennessee, the severe weather killed at least three people, said Dean Flener, spokesperson for the state’s Emergency Management Agency. And two people, including a young child, were killed in their homes in Missouri, Governor Mike Parson said in a statement.

The National Weather Service’s Storm Prediction Center said it received 36 reports of tornadoes touching down in Illinois, Kentucky, Tennessee, Missouri, Arkansas, and Mississippi.

The weather forecast was broadly clear for Saturday night, but temperatures were expected to drop and thousands of residents lack power and water after the storm. As of Saturday afternoon, nearly 99,000 customers in Kentucky and more than 71,000 in Tennessee were without power, according to PowerOutage.US, a website tracking power outages.

Kentucky officials called on residents to stay off the roads and to donate blood, as responders rushed to rescue survivors and account for people in communities that had lost communications.

“We’ve got Guardsmen who are out doing door knocks and checking up on folks because there’s no other communication with some of these people,” said Brigadier General Haldane Lamberton of the Kentucky National Guard.

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Reporting by Cheney Orr; Additional reporting by Njuwa Maina, Brendan O’Brien, Rich McKay, Vishal Vivek, Makini Brice, Valerie Volcovici, Maria Caspani and Steve Gorman; Writing by Nathan Layne and Alexandra Ulmer; Editing by Frances Kerry and Daniel Wallis

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Indonesia bolsters recovery efforts after volcano kills 34

JAKARTA, Dec 7 (Reuters) – Indonesian President Joko Widodo promised on Tuesday to bolster evacuation efforts and repair damaged homes after visiting the site of a volcanic eruption on Java that has killed at least 34 people.

The 3,676-metre Mt. Semeru volcano erupted on Saturday sending a cloud of ash into the sky and dangerous pyroclastic flows into villages below. L1N2SP05Y

Thousands of people have been displaced and 22 remain missing, according to the disaster mitigation agency.

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After visiting evacuation centres and surveying the area by helicopter – getting an aerial view of villages submerged in molten ash – the president said recovery efforts would be bolstered now and in the months ahead.

“I came to the site to ensure that we have the forces to locate the victims,” said the president, speaking from Sumberwuluh, one of the worst-hit areas.

A man with an umbrella walks amongst damaged houses looking for his goat in an area affected by the eruption of Mount Semeru volcano in Curah Kobokan, Pronojiwo district, Lumajang, Indonesia, December 6, 2021. REUTERS/Willy Kurniawan

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“We hope that after everything has subsided, that everything can start – fixing infrastructure or even relocating those from the places we predict are too dangerous to return to.”

At least 2,000 homes would need to be relocated to safer areas, he said.

Search and rescue efforts continued on Tuesday but have been hampered by wind and rain, and limited equipment in some areas.

Mt. Semeru erupted three times on Tuesday. Indonesia’s Center for Volcanology and Geological Hazard Mitigation said on Monday there was potential for further flows of hot gas, ash and rocks.

Mt. Semeru is one of more than 100 active volcanoes in Indonesia, in an area of high seismic activity atop multiple tectonic plates known as the “Pacific Ring of Fire”.

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Reporting by Stanley Widianto and Agustinus Beo Da Costa; Writing by Kate Lamb; Editing by Ana Nicolaci da Costa and Janet Lawrence

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Thousands block roads across Serbia in anti-government protest

BELGRADE, Dec 4 (Reuters) – Thousands of people blocked roads across Serbia in an anti-government protest against two new laws that environmentalists say will let foreign companies exploit local resources.

Serbia’s government has offered mineral resources to companies including China’s Zijin copper miner (601899.SS) and Rio Tinto (RIO.L). Green activists say the projects will pollute land and water in the Balkan nation.

The protest is a headache for the ruling Peoples’ Progressive Party led by the President Aleksandar Vucic ahead of parliamentary and presidential election next year.

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Thousands gathered on the main bridge in the capital Belgrade chanting “Rio Tinto go away from the Drina River.”

They held banners reading: “Stop investors, save the nature,” “We are not giving away the nature in Serbia,” and “For the land, the water and the air”.

Roadblocks have been set up all over Serbia including the second largest city of Novi Sad, in Western Serbia in Sabac, Uzice, and Nis in the South, in Zajecar in the East.

Anti-government protesters wear masks during a protest in Belgrade, Serbia, December 4, 2021. REUTERS/Goran Tomasevic

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“The reason (for the protest) is to protect our land, water and air. We do not want it to be sold cheaply,” said Stefan, a student protesting in Belgrade.

Rio has promised to adhere to all domestic and EU environmental standards, but environmentalists say its planned $2.4 billion lithium mine would irreversibly pollute drinking water in the area.

The protesters are angry about a referendum law passed last month which will make it harder for people to protest against polluting projects, as well as a new expropriation law, which makes it easier for the state to acquire private land.

President Aleksandar Vucic on his Instagram profile published a picture from the village of Gornje Nedeljice where Rio Tinto have already started buying land for its future lithium project.

Vucic said once the environmental study on the project is complete, he would call a referendum to allow people to decide whether the project should go through.

“Everything we build today we are leaving to our children,” Vucic wrote on Instagram.

(This story corrects figure in paragraph 8 to $2.4 billion instead of 2.4 million)

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Reporting by Aleksandar Vasovic and Ivana Sekularac; Editing by Christina Fincher

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‘New beginning’: Barbados ditches Britain’s Queen Elizabeth

  • Barbados becomes a republic after almost 400 years
  • Prince Charles says slavery a stain on history
  • Rihanna attends ceremony in Bridgetown

BRIDGETOWN, Nov 30 (Reuters) – Barbados ditched Britain’s Queen Elizabeth as head of state, forging a new republic on Tuesday with its first-ever president and severing its last remaining colonial bonds nearly 400 years after the first English ships arrived at the Caribbean island.

At the strike of midnight, the new republic was born to the cheers of hundreds of people lining Chamberlain Bridge in the capital, Bridgetown. A 21 gun salute fired as the national anthem of Barbados was played over a crowded Heroes Square.

Prince Charles, heir to the British throne, stood somberly as Queen Elizabeth’s royal standard was lowered and the new Barbados declared, a step which republicans hope will spur discussion of similar proposals in other former British colonies that have the Queen as their sovereign.

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“The creation of this republic offers a new beginning,” said Prince Charles, whose mother sent her warmest wishes. “From the darkest days of our past and the apalling atrocity of slavery which forever stains our history, people of this island forged their path with extraordinary fortitude.”

Barbados casts the removal of Elizabeth II, who is still queen of 15 other realms including the United Kingdom, Australia, Canada and Jamaica, as a way to finally break with the demons of its colonial history.

After a dazzling display of Barbadian dance and music, complete with speeches celebrating the end of colonialism, Sandra Mason was sworn in as Barbados’s first president.

Barbadian singer Rihanna also attended the ceremony and was declared a national hero.

The birth of the republic, 55 years to the day since Barbados declared independence, unclasps almost all the colonial bonds that have kept the tiny island tied to England since an English ship claimed it for King James I in 1625.

It may also be a harbinger of a broader attempt by other former colonies to cut ties to the British monarchy as it braces for the end of Elizabeth’s nearly 70-year reign and the future accession of Charles.

“Full stop this colonial page,” Winston Farrell, a Barbadian poet told the ceremony. “Some have grown up stupid under the Union Jack, lost in the castle of their skin.”

“It is about us, rising out of the cane fields, reclaiming our history,” he said. “End all that she mean, put a Bajan there instead.”

Prime Minister Mia Mottley, the leader of Barbados’ republican movement, helped lead the ceremony. Mottley has won global attention by denouncing the effects of climate change on small Caribbean nations.

Performers provide entertainment as part of the Presidential Inauguration Ceremony events to mark the birth of a new republic in Barbados, Bridgetown, Barbados, November 29, 2021. REUTERS/Toby Melville

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“I’m overjoyed,” Ras Binghi, a Bridgetown cobbler, told Reuters ahead of the ceremony. Binghi said he would be saluting the new republic with a drink and a smoke.

SLAVE HISTORY

Prince Charles’ speech highlighted the continuing friendship of the two nations despite England’s central role in the trans-Atlantic slave trade.

While Britain casts slavery as a sin of the past, some Barbadians are calling for compensation from Britain.

Activist David Denny celebrated the creation of the republic but said he opposes the visit by Prince Charles, noting the royal family for centuries benefited from the slave trade.

“Our movement would also like the royal family to pay a reparation,” Denny said in an interview in Bridgetown.

The English initially used white British indentured servants to toil on the plantations of tobacco, cotton, indigo and sugar, but Barbados in just a few decades would become England’s first truly profitable slave society.

Barbados received 600,000 enslaved Africans between 1627 and 1833, who were put to work in the sugar plantations, earning fortunes for the English owners.

More than 10 million Africans were shackled into the Atlantic slave trade by European nations between the 15th and 19th centuries. Those who survived the often brutal voyage, ended up toiling on plantations.

Barbados will remain a republic within the Commonwealth, a grouping of 54 countries across Africa, Asia, the Americas and Europe.

Outside the lavish official ceremony, some Barbadians said they were uncertain what the transition to a republic even meant or why it mattered.

“They should leave Queen Elizabeth be – leave her as the boss. I don’t understand why we need to be a republic,” said Sean Williams, 45, standing in the shadow of an independence monument.

The last time the queen was removed as head of state was in 1992 when the Indian Ocean island of Mauritius proclaimed itself a republic.

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Writing by Guy Faulconbridge in Bridgetown and Brian Ellsworth in Washington; Writing by Brian Ellsworth; Editing by Daniel Flynn, Lisa Shumaker and Lincoln Feast.

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Gold rush draws hundreds of dredging rafts to Amazon tributary

AUTAZES, Brazil, Nov 24 (Reuters) – Hundreds of dredging rafts operated by illegal miners have gathered in a gold rush on the Madeira River, a major tributary of the Amazon, floating hundreds of miles as state and federal authorities dispute who is responsible for stopping them.

The flotilla of rafts equipped with pumps are moored together in lines that nearly stretch across the vast Madeira, and a Reuters witness spotted plumes of exhaust indicating they are vacuuming the riverbed for gold.

“We counted no less than 300 rafts. They’ve been there at least two weeks and the government has done nothing,” said Greenpeace Brazil activist Danicley Aguiar.

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The gold rush, triggered by rumors that someone had found gold there, began as world leaders gathered for a United Nations climate conference in Glasgow, where Brazil vowed it had stepped up protection of the Amazon rainforest. read more

However, far-right President Jair Bolsonaro has weakened environmental enforcement since taking office in 2019, turning a blind eye to invasions of protected public and indigenous lands by illegal loggers, cattle ranchers and wildcat gold miners.

The Madeira flows some 2,000 miles (3,300 kilometers) from its source in Bolivia through the rainforest in Brazil and into the Amazon River.

An aerial view shows dredging rafts operated by illegal miners who have gathered in a gold rush on the Madeira, a major tributary of the Amazon river, in Autazes, Amazonas state, Brazil November 23, 2021. REUTERS/Bruno Kelly

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The dredging rafts have floated downriver from the Humaita area, where there has been a surge in illegal gold mining, and were last seen some 400 miles (650 km) away in Autazes, a municipal district southeast of Manaus.

A spokesperson for Brazil’s environmental protection agency Ibama said the illegal dredging on the Madeira river was the responsibility not of the federal government but of Amazonas state and its environmental agency IPAAM.

The IPAAM said in a statement that the rafts anchored on the river were under federal jurisdiction, so the National Mining Agency (ANM) was responsible for licensing and it was up to the federal police to see if any crimes had been committed. River traffic and pollution was the Navy’s area, IPAAM said.

The ANM said it did not fall under their purview as they only oversaw legal mining, while criminal activity was a matter for the police and courts.

The Federal police said it was looking at the best way to deal with the problem and prevent environmental damage.

“It’s a free-for-all. None of the authorities are doing anything to stop illegal mining, which has become a epidemic in the Amazon,” Aguiar of Greenpeace Brazil said.

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Reporting by Bruno Kelly
Writing by Anthony Boadle
Editing by Brad Haynes and Aurora Ellis

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New Swedish PM resigns on first day in job, hopes for swift return

  • Swedish PM resigns after less than 12 hours
  • Green party leaves government after budget failure
  • Andersson was Sweden’s first female prime minister

STOCKHOLM, Nov 24 (Reuters) – Sweden’s first female prime minister, Social Democrat Magdalena Andersson, resigned on Wednesday after less than 12 hours in the top job after the Green Party quit their two-party coalition, stoking political uncertainty.

But Andersson said she had told the speaker of parliament she hoped to be appointed prime minister again as the head of a single-party government, and the prospects of that happening appeared fairly strong given support from other parties.

The Green Party quit after parliament rejected the coalition’s budget bill.

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“I have asked the speaker to be relieved of my duties as prime minister,” Andersson told a news conference. “I am ready to be prime minister in a single-party, Social Democrat government.”

The Green Party said it would support her in any new confirmation vote in parliament, while the Centre Party promised to abstain, which in practice amounts to the same as backing her candidacy. The Left Party has also said it would back her.

While these parties were unable to agree a budget, they are united in the goal of keeping the Sweden Democrats, a populist, anti-immigration party, from having a role in government.

“The Centre Party will open the door for her (Andersson) to be prime minister,” its leader, Annie Loof, said on Twitter.

“We will make sure, again, that Sweden can have a government that is not dependent on the Sweden Democrats.”

The opposition right-wing Moderates and Christian Democrats are backed by the Sweden Democrats, but cannot command a majority in parliament.

CHALLENGES

Current Finance Minister and Social Democrat leader Magdalena Andersson is appointed as the country’s new Prime Minister after a voting at the Swedish Parliament Riksdagen in Stockholm, Sweden November 24, 2021. Andersson is the first ever Swedish female prime minister. Erik Simander /TT News Agency/via REUTERS

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Andersson took over as prime minister from Stefan Lofven as head of a minority two-party coalition supported by the Left and Centre parties. But that alliance collapsed when the Centre Party refused to back the new government’s finance bill.

Parliament then passed spending plans on Wednesday drawn up by three opposition parties, prompting the Green Party to quit the coalition and leaving Andersson no option but to resign.

The speaker of parliament will now decide the next step in the process of finding a new government, but will most likely put Andersson forward for a new vote in coming days.

“We expect the Left, Green and Centre parties to abstain in the upcoming vote and therefore effectively approve Andersson as Prime Minister again,” banking group Nordea said in a note. “In other words, the political chaos is over as long as nothing more unexpected happens.”

Whoever becomes prime minister faces major challenges, and a national election is due next September.

Gang violence and shootings blight life in many major cities. read more

The COVID-19 pandemic exposed gaps in the much-vaunted welfare state and the government needs to speed up the shift to a green economy if it is to meet its climate change goals. read more

The centre-left and centre-right blocs are basically deadlocked in polls.

The fact that it has taken this long for Sweden to get a woman prime minister is embarrassing for many in a country that introduced universal suffrage 100 years ago and has long championed gender equality.

Neighbouring Norway got its first woman leader 40 years ago. Sri Lanka was the first country to elect a woman premier in 1960.

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Reporting by Simon Johnson and Johan Ahlander; Additional reporting by Anna Ringstrom; Editing by Niklas Pollard, Alison Williams and Gareth Jones

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Thousands rally in central Iran to protest water shortages

Farmers work in a field as smoke from an oil refinery rises in the background, in Tehran, Iran June 3, 2021. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS/File Photo

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DUBAI, Nov 19 (Reuters) – Thousands of farmers and their supporters gathered in the central Iranian city of Isfahan on Friday, state TV reported, in a major protest over water shortages in the drought-stricken region.

“Let Isfahan breathe again, revive Zayandeh Rud,” chanted some of the demonstrators in a video posted on social media as crowds gathered in the dry bed of the river where protesting farmers have set up a tent city. “Our children want water to provide food for your children,” read a sign carried by a woman.

Iran’s energy minister apologised for the water shortages. “I apologise to all of our dear farmers, and I feel ashamed for not being able to provide the water needed for their crops. With God’s help, I hope we can overcome these shortcomings in the next few months,” Ali Akbar Mehrabian told state TV.

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The farmers in Isfahan province have for years protested against the diversion of water from the Zayandeh Rud river to supply other areas, leaving their farms dry and threatening their livelihoods. A pipeline carrying water to Yazd province has been repeatedly damaged, according to Iranian media.

In July, street protests broke out over water shortages in the oil-producing southwestern province of Khuzestan, with the United Nations’ human rights chief criticising the fatal shooting of protesters. Iran rejected the criticism. read more

Iran has blamed its worst drought in 50 years for the water shortages while critics also point to mismanagement.

With an economy crippled by U.S. sanctions, Iran has been the Middle East’s worst-hit country in the COVID-19 pandemic. The drought has forced Iran to import a record volume of wheat. read more

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Reporting by Dubai newsroom; Editing by Giles Elgood

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EXCLUSIVE U.S. asks Japan, China, others to consider tapping oil reserves -sources

An oil storage tank and crude oil pipeline equipment is seen during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson

WASHINGTON, Nov 17 (Reuters) – The Biden administration has asked some of the world’s largest oil consuming nations to consider releasing some crude reserves in a coordinated effort to lower prices, according to several people familiar with the matter.

Global oil benchmarks fell in post-close trading on the news. In late October, prices touched seven-year highs as oil demand has rebounded nearly to pre-pandemic levels, faster than the pace of supply.

President Joe Biden has faced political pressure over gasoline prices which have risen since his election in November 2020, a time when commuting and travel were drastically reduced during the pandemic. Government leaders in Japan and other consuming countries face similar pressures.

The Organization of the Petroleum Exporting Countries and allied producers, led by Saudi Arabia and Russia, have been adding 400,000 barrels per day to the market on a monthly basis but resisted Biden’s calls this month for steeper boosts. read more

In recent weeks, Biden and top aides have raised the issue with close allies including Japan, South Korea and India, as well as with China, the sources said. Tokyo responded positively to initial outreach, according to one of the sources.

One of the sources, asked why India was included in the batch of countries since it has only a small reserve, said: “We’re talking about the symbolism of the largest consumers of the world sending a message to OPEC that ‘you’ve got to change your behavior.'”

Several people familiar with the matter cautioned that such negotiations have not been finalized nor has any final decision been made about whether to pursue any specific course of action on oil prices.

The White House declined to comment on the detailed content of conversations with other countries. “No decisions have been made,” said a spokesperson for the White House’s National Security Council.

The White House has said for weeks that it is “talking with other energy consumers to ensure global energy supply and prices do not imperil the global economic recovery, the spokesperson added. “There is nothing to report beyond ongoing conversations and we consider a range of tools for if and when action is needed.”

The U.S. share of any potential release of reserves could be more than 20 to 30 million barrels, saying that much was needed to have an effect on markets, according to a U.S. source who participated in the discussions. The release could be in the form of a sale or a loan from the SPR – or both.

After Reuters reported on the White House discussions, U.S. crude was trading at $78.18 after closing at $78.36 a barrel, while Brent fell to $80.21 after ending at $80.28 a barrel. Prior to the news, both U.S. crude and global benchmark Brent notched their lowest settlement prices since early October, with Brent down 1.7% and U.S. crude down 3% for the day.

OPEC and allies have been wary of boosting output dramatically, concerned the rebound in demand could be fragile and additional supply could overwhelm markets.

“The surplus is already beginning in December,” OPEC Secretary General Mohammad Barkindo said on Tuesday, when asked if he was sure there would be an excess in oil supply next year.

“These are signals that we have to be very, very careful,” he told reporters. read more

Rising oil prices have vexed Biden ahead of the 2022 midterm electionswhich will determine whether his Democratic party maintains its slim majorities in the U.S. Congress.

Several Biden aides attribute his falling public approval ratings in recent months to worsening inflation from energy to food and other areas. The consumer price index is up 6.2% over the last 12 months, with its energy components up 30%.

U.S. gasoline prices are $3.41 per gallon now, according to AAA, more than 60% higher than a year ago as the economy has rebounded from the COVID-19 pandemic.

The Paris-based International Energy Agency, an energy watchdog which includes some of the largest consumers of oil, including the United States, Japan, and numerous European nations, did not comment. The IEA in the past has coordinated releases involving several countries.

“The IEA monitors the oil market closely and stands ready to act as necessary,” it said in a statement.

Reporting by Trevor Hunnicutt, Jarrett Renshaw and Tim Gardner; Additional reporting by Valerie Volcovici and Noah Browning; Editing by David Gaffen, Heather Timmons and David Gregorio

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EXCLUSIVE Rating agencies say Biden’s spending plans will not add to inflationary pressure

U.S. President Joe Biden delivers remarks on the state of his American Rescue Plan from the State Dining Room at the White House in Washington, D.C., U.S., May 5, 2021. REUTERS/Jonathan Ernst

Nov 16 (Reuters) – U.S. President Joe Biden’s infrastructure and social spending legislation will not add to inflationary pressures in the U.S. economy, economists and analysts in leading rating agencies told Reuters on Tuesday.

Biden has spent the past few months promoting the merits of both pieces of legislation – the $1.75 trillion “Build Back Better” plan and a separate $1 trillion infrastructure plan. read more

The two pieces of legislation “should not have any real material impact on inflation”, William Foster, vice president and senior credit officer (Sovereign Risk) at Moody’s Investors Service, told Reuters.

The impact of the spending packages on the fiscal deficit will be rather small because they will be spread over a relatively long time horizon, Foster added.

Senator Joe Manchin, a centrist Democrat, has previously raised inflationary concerns in relation to Biden’s social spending plan, with a report earlier this month suggesting he may delay the passage of the Build Back Better legislation. read more

“The bills do not add to inflation pressures, as the policies help to lift long-term economic growth via stronger productivity and labor force growth, and thus take the edge off of inflation,” said Mark Zandi, chief economist at Moody’s Analytics, which operates independently from the parent company’s ratings business.

Zandi said the costs of both the infrastructure and social spending legislation were sustainable.

“The bills are largely paid for through higher taxes on multinational corporations and well-to-do households, and more than paid for if the benefit of the added growth and the resulting impact on the government’s fiscal situation are considered”, he said in an interview.

Charles Seville, senior director and Americas sovereigns co-head at Fitch Ratings, said the two pieces of legislation “will neither boost nor quell inflation much in the short-run.”

Government spending will still add less to demand in 2022 than in 2021 and over the longer-run, the social spending legislation could increase labor supply through provisions such as childcare, and productivity, Seville told Reuters.

The House of Representatives passed the $1 trillion infrastructure package earlier this month after the Senate approved it in August. Biden signed the bill into law on Monday.

The Build Back Better package includes provisions on childcare and preschool, eldercare, healthcare, prescription drug pricing and immigration.

“The deficit will still narrow in FY 2022 as pandemic relief spending drops out and the economic recovery boosts tax revenues”, Seville said. “But the legislation (Build Back Better) does not sustainably fund all the initiatives, particularly if these are extended and don’t sunset, meaning that they will be funded by greater borrowing.”

The Congressional Budget Office anticipates publishing a complete cost estimate for the Build Back Better plan by Friday, Nov. 19. Biden said on Tuesday he expected the Build Back Better legislation to be passed within a week’s time.

Reporting by Kanishka Singh in Bengaluru; editing by Dan Burns and Lincoln Feast.

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Canada floods cut rail link to Vancouver port; one dead

MERRITT, British Columbia, Nov 16 (Reuters) – Floods and landslides that have killed at least one person have cut all rail access to Canada’s largest port in the city of Vancouver, a spokesperson for the port said on Tuesday.

Two days of torrential rain across the Pacific province of British Columbia touched off major flooding and shut rail routes operated by Canadian Pacific Rail (CP.TO) and Canadian National Railway (CNR.TO), Canada’s two biggest rail companies.

“All rail service coming to and from the Port of Vancouver is halted because of flooding in the British Columbia interior,” port spokesperson Matti Polychronis said.

At least one person was killed when a mudslide swept cars off Highway 99 near Pemberton, some 100 miles (160 km) to the northeast of Vancouver.

Two people were missing and search and rescue crews were combing through the rubble, officials said.

Vancouver’s port moves C$550 million ($440 million) worth of cargo a day, ranging from automobiles and finished goods to essential commodities.

The floods temporarily shut down much of the movement of wheat and canola from Canada, one of the world’s biggest grain exporters, during a busy time for trains to haul grain to the port following the harvest.

Drought has sharply reduced the size of Canada’s crops this year, meaning a rail disruption of a few days may not create a significant backlog, a grain industry source told Reuters.

Del Dosdall, senior export manager at grain handler Parrish & Heimbecker, said he expected some rail services could be restored by the weekend. Another industry source said he expected the shutdown to last weeks.

OIL PIPELINES SHUT DOWN

Floods have also hampered pipelines. Enbridge Inc (ENB.TO) shut a segment of a British Columbia natural gas pipeline as a precaution. read more

Crowds gather along the Trans-Canada highway to view flooding after rainstorms lashed the western Canadian province of British Columbia, triggering landslides and floods and shutting highways, in Abbotsford, British Columbia, Canada November 16, 2021. REUTERS/Jennifer Gauthier

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The storms also forced the closure of the Trans Mountain pipeline, which carries up to 300,000 barrels per day of crude oil from Alberta province to the Pacific coast.

Copper and coal miner Teck Resources Limited (TECKb.TO) said the floods had disrupted movement of its commodities to its export terminals, while potash exporter Canpotex Ltd said it was looking for alternatives to move the crop nutrient overseas.

Directly to the south of British Columbia, in the U.S. state of Washington, heavy rain forced evacuations and cut off electricity for more than 150,000 households on Monday.

The U.S. National Weather Service on Tuesday issued a flash flood in Mount Vernon, Washington, “due to the potential for a levee failure.”

Some areas of British Columbia received 8 inches (20 cm) of rain on Sunday, the amount that usually falls in a month.

Authorities in Merritt, some 120 miles (200 km) northeast of Vancouver, ordered all 8,000 citizens to leave on Monday as river waters rose quickly, but some were still trapped in their homes on Tuesday, said city spokesman Greg Lowis.

Snow blanketed the town on Tuesday and some cars could be seen floating in the flood waters up to 4 feet (1.22 m) deep.

The towns of Chilliwack and Abbotsford ordered partial evacuations.

Abbotsford also issued an emergency warning on Tuesday night, asking all residents to evacuate the Sumas Prairie region immediately as deteriorating conditions posed a significant threat to lives.

Rescuers equipped with diggers and body-sniffing dogs started clearing mounds of debris that have choked highways.

The landslides and floods come less than six months after a wildfires gutted an entire town in British Columbia as temperatures soared during a record-breaking heat dome, raising new worries about climate change. read more

Reporting by Artur Gajda in Merritt and Rod Nickel in Winnipeg; additional reporting by David Ljunggren in Ottawa, Nia Williams in Calgary, Ismail Shakil in Bengaluru, Brad Brooks in Lubbock, Texas and Dan Whitcomb in Los Angeles, Maria Ponnezhath in Bengaluru; editing by Ed Osmond, Jonathan Oatis, Aurora Ellis and Sandra Maler

Our Standards: The Thomson Reuters Trust Principles.



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