Oil Prices Surge Following Stalled Ukraine Peace Talks

Today’s ESG Updates

• Oil Prices Climb Amid Stalled Ukraine Peace Talks: Halted negotiations are raising supply fears and boosting oil prices by up to 0.59%.
• Iraq Signs Oil Exploration Deal with Chevron: The agreement covers four blocks in the Nassiriya region as Iraq adjusts its business strategy.
• Google Loosens Play Store Rules Under EU Pressure: Following antitrust charges, Google will adjust the terms of Google Play conditions.
• Spain’s Wildfires Stabilize as Heatwave Ends: End to wildfires in sight, rain and cooler temperatures offer hope for relief and recovery.

Stalled peace talks have led to increased oil prices and supply concerns

Supply concerns are resurfacing as peace talks regarding the end of Russia’s invasion of Ukraine are likely to take longer, leaving in place sanctions on Russian crude oil, increasing the likelihood of further restrictions on its buyers. The increase in oil prices ranged between a 0.21% increase to a 0.59% increase. President Trump stated that he was arranging for a meeting between Russian President Vladimir Putin and Zelenskiy, to be followed by a trilateral summit among the three leaders. He also disclosed possible discussions between Zelenskiy and Putin in Hungary with the country’s prime minister, but Russia has yet to confirm its participation in talks with Zelenskiy. In the U.S., BP said that operations at a refinery in Indiana were severely affected by flooding, potentially affecting the facility’s crude demand. To stay updated on industry developments amid geopolitical tensions and uncertainty, companies can turn to ESG solutions.

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Further reading: Oil prices rise after supply concerns resurface as Ukraine peace talks stall

Iraq signs new deal with Chevron for oil exploration project 

Iraq has signed an agreement in principle with U.S.’ Chevron Corp. for the Nassiriya project that consists of four exploration blocks, in addition to the development of other producing oil fields. In 2021, Iraq had authorised National Oil Co. (NOC) to negotiate with Chevron over the development of oilfields in Nassiriya. The ministry at the time said that its plan in the province included the completion of several giant projects in the oil, gas and water injection sectors, targeting an initial capacity of 600,000 bbl/d of crude oil within seven years of starting work. The Prime Minister said that the government has adopted a new approach in dealing with major international oil companies and their investments in Iraq, especially U.S. companies. 

Companies can monitor global industry developments and market trends with ESG solutions.

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Further reading: Iraq signs agreement with Chevron on oil exploration projects, prime minister says

Google makes changes to Google Play conditions following EU pressure

Google will make it easier for app developers to direct customers to channels other than Google after the EU competition watchdog had charged the company for breaching EU regulations. Google was slapped with two charges of breaching the EU’s Digital Market Act (DMA), which aims to rein in the power of Big Tech. Regulators have states that the service fee charged by the company for facilitating the initial acquisition of a new customer by an app developer via Google Play is not justifiable. Google has announced in a blog post that they are updated certain terms following discussions with the European Commission, developers, and other experts. The company has already been fined more than €8B ($9.3B) for various antitrust violations, and risks fines of up to 10% of its global annual sales if found guilty of breaching the DMA. 

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Further reading: Google tweaks Google Play conditions following EU pressure

Huge wildfires stabilise in Spain, and cooler weather forecast sparks hope for an end to the heatwave

Wildfires that raged through northern and western Spain have burned through nearly the same area in the past 24 hours as in all of last year. However, the end of a 16-day heatwave and expected rainfall have been forecasted, sparking hope. The fires spread over various regions which forced authorities to suspend rail services, cut access to roads in the area, and block out a 50km stretch of a popular pilgrimage trail. Data showed that the wildfires burned vegetation on 38,000 hectares since Monday, just below 42,000 hectares during the whole of 2024, and so far, a record high of an estimated 382,600 hectares have burned in Spain. The Prime Minister has said that the government will declare many of the affected areas as emergency zones, qualifying them as eligible to receive aid for reconstruction. The Spanish army has deployed 3,400 troops and 50 aircrafts to help firefighters, while various European countries have sent hundreds of firefighters, vehicles, and aircrafts. 

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Further reading: Huge wildfires stabilising in Spain, cooler forecast fuels hope worst is over

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Large metal oil tanks in industrial site, Sep. 5, 2023. — Cover Photo Credit:  Alex Waldbrand