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Biden oil reserves bet melds China outreach with appeal to U.S. voters

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President Joe Biden’s historic move to release oil from strategic reserves in coordination with big nations including China represents a unique bet that finding common ground with the United States’ biggest economic rival can help dampen fuel prices for middle class Americans.

The move, announced by the U.S. on Tuesday, underscores the complicated relationship Biden is trying to craft with China as he seeks agreement on key issues like climate change and trade, while linked in an economic arms race. The rare moment of cooperation comes as inflation, and especially high gasoline prices, eat at Biden’s popularity at home.

“This is a new era of oil diplomacy for the U.S. to coordinate with India and China” said Daniel Yergin, an oil historian and the vice chairman of IHS Markit. Cooperation with China is likely to stick to energy and environment.

“Climate and energy are in a separate category from all the tough issues that need to be dealt with between the two countries,” Yergin said.

The Biden administration’s diplomatic inroads with China first surfaced in Glasgow, Scotland this month where the two countries hammered out a surprise deal on boosting action on climate change including reducing emissions of methane, a powerful greenhouse gas.

“Glasgow showed that there is some level of common interest and diplomacy that can be successful between the United States and China,” said Amy Myers Jaffee, a research professor at Tufts University and expert on global energy markets and climate.

Jaffee said both countries recognized the importance of a global climate agreement. “I would say ‘Ditto’ on the oil market,” Jaffee said.

Washington has stark differences with Beijing on trade issues and human rights concerns related to Xinjiang, Hong Kong, Tibet and Taiwan. But the world’s top two economies would benefit from energy cooperation given their adversarial relations with Saudi Arabia and Russia in terms of keeping oil prices low for consumers.

Combined, the United States and China consume nearly 35 million barrels of oil a day, more than a third of global demand. Even though the United States has become one of the world’s largest oil producers, it is still the second-largest importer of crude, trailing only China.

 

U.S. gas prices at seven-year high U.S. gas prices at seven-year high https://graphics.reuters.com/USA-GASOLINE/PRICES/znvnekmrbpl/chart.png

 

The world’s top oil-importing nations https://graphics.reuters.com/GLOBAL-OI/lbpgnbezdvq/chart.png

China now imports more than 10 million barrels of oil a day, The United States imports about 6 million barrels per day, though in recent years it has sharply reduced its dependency on OPEC producers, with most of its imports now from Canada.

While China did not announce an oil tap on Tuesday, Biden spoke earlier with China’s President Xi Jinping about opening their reserves and Chinese officials said on Nov. 18 they are working on a release. China held the first ever release of oil from its reserve in September, which aimed to stabilize prices.

The broader group of countries that have elected to work with the United States and release oil from their reserves include other large importers, including India, Japan and South Korea, which rank third, fourth and fifth, respectively.

U.S. oil prices hit a seven-year high in late October driving inflation and hitting Biden’s approval rating ahead of midterm elections next year. With razor thin majorities in both chambers of Congress, Biden’s fellow Democrats can ill afford to lose seats in 2022.

REPEAT DEAL TRICKY

Biden could take additional action in coordinating with other countries to maintain supply as the COVID-19 pandemic eases, the White House in a statement Tuesday.

Actually doing so may not be easy.

“Not only could U.S.-China tensions complicate further cooperation, but the U.S. stands apart from other strategic reserve holders in that its legislature has ordered the

selling off of strategic stockpiles” to finance government programs, ClearView Energy Partners, a nonpartisan research group, said in a note to clients.

Some 18 million barrels of the U.S. release was simply a front-loading of required sales that were mandated by Congress in recent years.

There’s a risk that consumer countries and producing countries could keep upping the ante with opposing announcements on global oil supplies, a prospect that would likely make oil prices even more volatile, or what Yergin calls a “bloc versus bloc,” scenario.

But in the short term, the action by consuming countries is likely to put pressure on oil prices, Yergin said.

“This also comes at a time when the supply/demand balance is on a course to improve over the next few months, and this oil deal will add to that. What it means at least for now is you’ll hear a lot fewer predictions about $100 oil.”

 

(Reporting By Timothy Gardner and Jarrett Renshaw; additional reporting by Jessica Resnick-Ault; Editing by David Gaffen, Heather Timmons and Alistair Bell)

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Florida State asks judge to rule on parts of suit against ACC, hoping for resolution without trial

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TALLAHASSEE, Fla. (AP) — Florida State has asked a judge to decide key parts of its lawsuit against the Atlantic Coast Conference without a trial, hoping for a quicker resolution and path to a possible exit from the league.

Florida State requested a partial summary judgment from Circuit Judge John Cooper in a 574-page document filed earlier this week in Leon County, the Tallahassee-based school’s home court.

Florida State sued the ACC in December, challenging the validity of a contract that binds member schools to the conference and each other through media rights and claiming the league’s exit fees and penalties for withdrawal are exorbitant and unfair.

In its original compliant, Florida State said it would cost the school more than half a billion dollars to break the grant of rights and leave the ACC.

“The recently-produced 2016 ESPN agreements expose that the ACC has no rights to FSU home games played after it leaves the conference,” Florida State said in the filing.

Florida State is asking a judge to rule on the exit fees and for a summary judgment on its breach of contract claim, which says the conference broke its bylaws when it sued the school without first getting a majority vote from the entire league membership.

The case is one of four active right now involving the ACC and one of its members.

The ACC has sued Florida State in North Carolina, claiming the school is breaching a contract that it has signed twice in the last decade simply by challenging it.

The judge in Florida has already denied the ACC’s motion to dismiss or pause that case because the conference filed first in North Carolina. The conference appealed the Florida decision in a hearing earlier this week.

Clemson is also suing the ACC in South Carolina, trying to find an affordable potential exit, and the conference has countersued that school in North Carolina, too.

Florida State and the ACC completed court-mandated mediation last month without resolution.

The dispute is tied to the ACC’s long-term deal with ESPN, which runs through 2036, and leaves those schools lagging well behind competitors in the Southeastern Conference and Big Ten when it comes to conference-payout revenue.

Florida State has said the athletic department is in danger of falling behind by as much as $40 million annually by being in the ACC.

“Postponing the resolution of this question only compounds the expense and travesty,” the school said in the latest filing.

The ACC has implemented a bonus system called a success initiative that will reward schools for accomplishments on the field and court, but Florida State and Clemson are looking for more as two of the conference’s highest-profile brands and most successful football programs.

The ACC evenly distributes revenue from its broadcast deal, though new members California, Stanford and SMU receive a reduced and no distribution. That money is used to fund the pool for the success initiative.

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The Canadian Press. All rights reserved.



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Australia’s Michael Matthews earns third win at Quebec cycling GP

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QUEBEC – Australian road cyclist Michael Matthews raced to victory at the Grand Prix Cycliste de Quebec on Friday.

Matthews earned a record third career victory in Quebec City. He was previously tied with Slovakia’s Peter Sagan with two wins.

The Jayco-AlUla rider won the fastest edition of the Quebec race on the UCI World Tour calendar.

Matthews, who claimed titles in 2018 and 2019, edged out Eritrea’s Biniam Girmay and France’s Rudy Molard in a thrilling sprint.

Tour de France winner Tadej Pogacar, the heavy favourite, was unable to follow through with his attack launched just over two kilometres from the finish line. He finished in seventh place.

Pogacar will look to redeem himself at the Montreal cycling Grand Prix on Sunday.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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Whitecaps loan Herdman to CPL’s Cavalry, sign two reserve players to first-team deals

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VANCOUVER – The Vancouver Whitecaps have loaned midfielder Jay Herdman to Cavalry FC of the Canadian Premier League and rewarded two Whitecaps FC 2 players with MLS contracts.

Midfielder Jeevan Badwal signed as a homegrown player through 2027, with options for 2028 and 2029, while forward Nicolas Fleuriau Chateau signed an MLS contract through 2025, with club options for 2026 and 2027.

Both have been playing for the Whitecaps’ MLS Next Pro team along with the 20-year-old Herdman, the son of Toronto FC coach John Herdman.

The moves were made before Friday’s MLS and CPL roster freeze.

Born in New Zealand while his father was working for the New Zealand Football Federation, Jay Herdman was also part of the New Zealand soccer team at the Paris Olympics with three appearances including two starts. Herdman’s loan deal runs through the end of the CPL season.

“Jay is an important signing for us, who will provide another attacking option for the run-in,” Cavalry coach and GM Tommy Wheeldon Jr. said in a statement. “He’s a player that we’ve been tracking since we played against Whitecaps in pre-season and he has very good quality, with terrific energy and the ability to contribute to goals.

“With the recent injury to Mael Henry, Jay’s positional profile and age helps us with on-field options and minutes that count towards the league’s required 2,000 U-21 domestic minutes during the regular season.”

Badwal, an 18-year-old from suburban Surrey, is the 26th academy player to sign an MLS contract with the Whitecaps.

“Having joined our academy in 2019, Jeevan continues to progress through our club and takes every challenge in stride,” Whitecaps FC sporting director Axel Schuster said in a statement. “He is comfortable on the ball, positionally sound, and does the simple things very well. We are excited for Jeevan to make the next step in his young career.”

Badwal has made 19 appearances with Whitecaps 2 this season, scoring two goals and adding three assists. A Canadian youth international, he started all three matches for Canada at the 2023 FIFA U-17 World Cup

Badwal made his first-team debut off the bench in the first leg of the Canadian Championship semifinal against Pacific FC.

Chateau was originally selected 74th overall by the Whitecaps in the 2024 MLS SuperDraft after spending two years at St. John’s University.

The 22-year-old from Ottawa signed an MLS NEXT Pro contract with Whitecaps FC 2 in March. He leads Whitecaps FC 2 in goal-scoring this season with eight goals across 21 appearances (including eight starts).

“Nicolas leads MLS NEXT Pro in shots on target, has a very strong work rate and willpower. We are looking forward to seeing his growth as he builds on his young professional career,” said Schuster.

Chateau made his first-team debut as a second-half substitute at CF Montreal on July 6.

Herdman, who joined the Whitecaps academy as a 13-year-old, has made 19 appearances for Whitecaps FC 2 in 2024, scoring six goals and adding three assists. He made his MLS debut in April as a second-half substitute in a 2-0 victory at the Seattle Sounders.

Internationally, Herdman has represented New Zealand 29 times across the U-19, U-20, and U-23 sides. He was part of New Zealand’s squad at the 2023 FIFA U-20 World Cup, starting three matches at the tournament and scoring against Uzbekistan.

The Whitecaps host San Jose on Saturday while Cavalry entertains Atletico Ottawa on Sunday.

This report by The Canadian Press was first published Sept. 13, 2024

The Canadian Press. All rights reserved.



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