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The update comes as analysts raise concerns about the prospect of global olive oil supplies swinging dramatically from one season to the next. View More
Jaen city and surrounding Olive groves and trees, Jaen is known as the Olive Oil capital producing around 25% of global supply and over half of Spain's olive oil production.Ucg | Universal Images Group | Getty Images Spain's Deoleo, the world's largest olive oil company, says a period of unprecedented volatility has unequivocally given way to more stable market conditions, citing an unlikely catalyst in helping to lift U.S. sales."The highly complex market cycle experienced between 2022 and 2024, which had a severe yet temporary impact on the industry, is now definitively behind us," Deoleo CEO Cristóbal Valdés told CNBC via email.Favorable rainfall trends across major producing nations, including Spain, have paved the way for a solid global yield for the upcoming harvest, Valdés said, consolidating a more robust and balanced global supply.The update comes as analysts raise concerns about the prospect of global olive oil supplies swinging dramatically from one season to the next, particularly as issues such as climate change, water scarcity and pest and disease pressures persist.Deoleo, the maker of household olive oil brands such as Bertolli and Carbonell, previously described the three-year window from 2022 to 2024 as one of the most challenging periods in the sector's history.Severe droughts and searing heat across vast swathes of southern Europe destroyed large parts of the olive oil harvest, culminating in a dizzying price rally that shocked industry veterans and consumers alike. Read more'Liquid gold': An olive oil shortage is fueling record prices and food insecurity fearsWorldâs largest olive oil producer says âliquid goldâ prices on track to halve from record levelsThirsty AI mega projects raise alarm in some of Europeâs driest regions Olive oil prices have since moderated, prompting an increasing number of American consumers to adopt what has long been a staple of a healthy Mediterranean diet into their daily routines."This supply stabilization provides greater predictability across the entire value chain and allows us to anticipate a more stable pricing environment. This, in turn, is driving a recovery in global household demand," Valdés said. Alongside Italy and Greece, Spain is one of the world's leading producers of the precious commodity and a global reference for prices. Extra virgin olive oil (EVOO) prices in Spain stood at about 3.9 euros ($4.47) per kilogram, according to the European Commission's latest weekly data, extending a steady downward trend since the start of the year. It is a far cry from Jan. 2024, when wholesale EVOO prices soared to a record high of 9.3 euros per kilogram. Squeeze bottles Notably, Deoleo's Valdés said that while the firm's sales volumes growth has improved across key markets, the number of olive oil purchasing households in the U.S. has also consistently increased across all income brackets. Perhaps surprisingly, the company credited a packaging redesign with helping to boost U.S. sales, underlining the importance of consumer-focused innovation as Deoleo seeks to expand its market share in the country. Bottles of olive oil on a conveyor on the production line at the Deoleo SA plant Cordoba, Spain, on Friday, Nov. 11, 2022.Bloomberg | Bloomberg | Getty Images "Regarding emerging trends, I believe the primary market driver is innovation tailored to modern culinary habits, especially for younger consumers and those discovering the benefits of olive oil for the first time," Valdés said. "A clear reflection of this is the rise of functional, value-added packaging; in fact, squeeze formats are already driving 40% of the entire category's growth in the country," he added, referring to the company's Bertolli "Dress and Drizz" bottle. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
Reliance Industries increased crude oil sourcing from Russia and Latin America. This strategic move reduced dependence on Arabian Gulf crudes during volatile markets. The company also completed planned turnarounds of key refining units. Global crude markets faced disruptions and supply chain issues. Brent crude prices averaged over one hundred dollars a barrel. View More
Mukesh Ambani-owned Reliance Industries Ltd ( RIL ) increased crude oil sourcing from Russia and Latin America during the June quarter to reduce its dependence on Arabian Gulf (AG) crudes, as the company navigated one of the most volatile periods for global energy markets amid the closure of the Strait of Hormuz and supply chain disruptions. The company said it "diversified crude basket, with higher sourcing from Russia and Latin America which helped reduce dependence on AG crudes," as part of its operational strategy during the quarter. It also completed the planned turnaround of its crude distillation unit (CDU) and coker unit, while stretching operations at secondary units to minimise the impact of lower throughput. Also read: Reliance Jio's ARPU rises to Rs 215.6 as subscriber base crosses 533 million in Q1FY27 The shift came as global crude markets were upended by the Middle East conflict. RIL said Brent crude averaged $104.5 a barrel during the quarter, up $36.7 a barrel year-on-year, following the closure of the Strait of Hormuz, which disrupted an estimated 13 million barrels per day of crude supplies and tightened global oil markets. Despite the challenging backdrop, the company's oil-to-chemicals (O2C) business reported a 17.2% year-on-year increase in EBITDA to Rs 17,010 crore, supported by stronger transportation fuel cracks and downstream petrochemical margins. The company said performance also benefited from crude basket diversification, efficient product placement in deficit markets and favourable ethane cracking economics. Live Events However, RIL cautioned that "multiple headwinds curtailed margin capture including high crude premiums on physical barrels along with higher freight and insurance costs." It added that it diverted propane and butane to boost LPG production and held domestic retail fuel prices steady to protect consumers, resulting in under-recoveries in fuel retailing. The reintroduction of the Special Additional Excise Duty (SAED) on diesel, petrol and aviation turbine fuel also weighed on domestic margins. Also read: RIL Q1 Results: Profit falls 22% YoY to Rs 20,946 crore; revenue up 25% "The O2C business delivered strong performance during the quarter, supported by all-time high middle distillate cracks and improved downstream petrochemical deltas. This was achieved despite a challenging global energy market backdrop with disrupted supply chains," said Chairman and Managing Director Mukesh Ambani. He added that the company navigated the environment with operational agility while ensuring adequate availability of essential fuels and materials in the domestic market. At the group level, Reliance Industries reported O2C EBITDA of Rs 17,010 crore, while consolidated revenue rose 24.5% year-on-year to Rs 3.4 lakh crore in the June quarter. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;width: 100%;box-sizing: border-box} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
BHEL's first Q1 profit in seven years, stronger execution and a ?2.6 trillion order book have fuelled a sharp turnaround. But rising competition and a 45x valuation could test the rally. View More
BHEL share price rose almost 3% in morning trade on the BSE on Friday, 17 July, to its 52-week high of ?446.75. As per BSE data, BHEL shares have surged nearly 65% in the last six months compared to a 7% fall in the equity benchmark Sensex in the same period. View More
Ajit Mishra of Religare Broking recommends a stock-specific strategy, highlighting Bharat Heavy Electricals, Central Depository Services, and Divi's Laboratories as short-term buy candidates, with target prices and stop-loss levels. View More
BHEL enters a competitive market dominated by Indian companies Servotech and Exicom as well as global rivals Zurich-based ABB and the Indian arm of Taiwanese manufacturer Delta Electronics. View More
Data center-related policy proposals, protests and litigation are underway across the country citing Colossus and Memphis as a cautionary tale. View More
watch nowVIDEO29:0129:01How Elon Musk's AI empire in Memphis became a cautionary taleTech Two years after Elon Musk made Greater Memphis the center of his artificial intelligence ambitions, building data centers and energy infrastructure at breakneck speed, residents are grappling with unwanted effects, including noise and emissions from the natural gas-burning turbines. Now, public opposition to the SpaceXAI sites, known as Colossus and Colossus II, is providing a blueprint for other communities across the country opposed to AI developments.This week, New York Gov. Kathy Hochul enacted a one-year moratorium on the construction of AI data centers in her state, drawing the ire of U.S. President Donald Trump, an ally of Musk.And last week, New Jersey Gov. Mikie Sherrill enacted legislation to ensure data center operators pay a fair share for electricity, instead of shifting costs to residents and businesses.Other policy proposals, protests and litigation are underway, many directly citing Memphis and SpaceXAI, which was acquired by Musk's defense contractor, SpaceX, in February."When you think about what precedent Colossus has set, it hasn't been a great one," said Jigar Shah, the former director of the U.S. Department of Energy loan program office, and a long-time energy entrepreneur. "It certainly is a case study for what not to do in most of the rest of the country. But from a capitalist standpoint, they got rewarded." Southaven, Mississippi resident Jason Haley is part of a class action lawsuit against SpaceX due to power plant noise. In June, SpaceX pulled off a record-setting IPO, with AI and its Colossus I and II facilities at the heart of its growth narrative.  Google, Anthropic and Reflection AI have all inked agreements with SpaceX to rent excess computing capacity at Colossus and Colossus II, deals worth up to $2.32 billion per month.Residents don't feel the same benefits. Several told CNBC that SpaceXAI never consulted with them about their plans before they broke ground, though it was clear the data centers would profoundly impact nearby neighborhoods.Today, the noise from Colossus II and its gas-burning turbines is "like a form of torture," said Jason Haley of Southaven, Miss., whose house is within a mile of the site. Southaven is part of the Greater Memphis area. Opposition rising Opposition to data centers is rising, and not just against xAI, but also in response to developments planned or underway from Microsoft, Meta, Google, OpenAI and other so-called hyperscalers.In May, seven in 10 Americans said they oppose the construction of data centers for AI in their local area, according to a Gallup poll. Nearly half, or 48%, said they were strongly opposed.Even Musk has acknowledged the public distaste for AI data centers and power plants to run them."There are very few people who want a power plant in their backyard," Musk said in an interview with JPMorgan CEO Jamie Dimon in the road show ahead of SpaceX's IPO. "If we wanted to, say, double the electricity usage of the United States," he said, "we would have to build twice as many power plants. Most communities are not super excited about that."Musk and SpaceX did not respond to multiple requests for comment about the backlash to their buildout in Memphis. SpaceX is building a massive gas turbine power plant in Southaven, Mississippi to power its data centers in the area. SpaceXAI has purchased over 1,100 acres in Greater Memphis for its data centers and power plant. The data centers were initially built to train and run xAI's Grok AI models and chatbot, which was steeped in controversy.Data centers have been around for decades, but a building boom started after generative AI triggered an explosion in the need for data processing and power. The facilities typically require vast plots of land, energy to power the chips and servers inside, and water to cool high-tech equipment.For all their complexity, once built, data centers don't require a large workforce for operations, and don't always generate a huge number of new jobs or vast amounts of tax revenue.Memphis residents and climate advocates are sharing their experiences as a cautionary tale, using lessons learned to help other communities push for updated regulations, or more favorable deals with data center developers. Their testimonies have directly and indirectly influenced policies, lawsuits, elections and movements taking shape beyond Memphis.Communities in nearby Olive Branch and Jackson, for example, updated their zoning laws, citing a wish to avoid the pitfalls Memphis residents faced when Musk moved to town.In June, Utah state Senate president Stuart Adams lost in the Republican primary after he supported a proposed data center backed by investor Kevin O'Leary. Two other local officials who backed the project also lost in primary elections. Whitehaven, Tennessee resident Loretta Thornton's home is right next to xAI's Colossus 2. Musk's Colossus I data center was completed in just 122 days, he said in a post on Sept. 2, 2024, announcing that the data center had been brought online.During its first year in operation, SpaceXAI paid $25 million in taxes, making it the second largest tax-paying property in Shelby County after FedEx, said Memphis Mayor Paul Young, who helped bring the data center business to the county."Ever since this project began, we were looking at how to mitigate the potential negative impacts and how to amplify the positives," Young said. He acknowledged that SpaceX has not yet delivered everything it promised, such as the delayed construction of a water recycling plant meant to reduce the company's need for huge amounts of water to cool equipment at Colossus.Residents around Greater Memphis told CNBC their water and electricity bills have gone up after SpaceXAI moved to town.Memphis Light Gas & Water said that water and electricity rates "have not been impacted" by SpaceXAI.An "electric rate increase plan of 4% for 3 years beginning in 2024 was not due to any data center load," a spokesperson for the utility told CNBC via email. Legal battles Last year, Haley joined a neighborhood group called the Safe and Sound Coalition, to take noise measurements, raise awareness and push the company and municipal leaders to make changes.In March, Southaven Mayor Darren Musselwhite pledged to "step-up tougher enforcement" on the noise but told Haley, in e-mails read by CNBC, "you may want to consider selling your home." Musselwhite told CNBC in an email on Thursday that he has "worked countless hours to mitigate noise concerns," and "never told a citizen to move." SpaceXAI's Colossus data center in Memphis, Tennessee on June 17, 2026.Andrew Evers, CNBC Haley and other Southaven residents sued SpaceX in a proposed class action lawsuit filed in June this year, alleging the company created a "public nuisance" with noise from Colossus II.Following in their footsteps, neighbors to Microsoft's Fairwater Data Center in Mt. Pleasant, Wisconsin, this month filed a proposed class action suit over noise issues.In April, the Southern Environmental Law Center and Earthjustice sued Musk's company on behalf of the NAACP in a federal court in Mississippi. They allege the company has violated the federal Clean Air Act by using dozens of gas-burning turbines without required permits, and without pollution controls in place from the start to power its facilities.The types of turbines SpaceXAI used in Memphis can emit thousands of tons of smog-forming nitrogen oxides per year, according to manufacturers' spec sheets. SpaceXAI also emits particulate matter called "PM 2.5," or "particle pollution," from construction and operations.NAACP's lawyers asked a judge for an emergency injunction in May to stop SpaceX from using dozens of turbines in Southaven. The U.S. Department of Justice swiftly stepped in, asking the court to toss the suit.As part of their motion to intervene last month, the DOJ said SpaceXAI's technology had been used in American military operations in Iran, and was now crucial for national security. They also argued the suit "threatens" America's national, economic and energy security.SpaceX is defending against the NAACP lawsuit, arguing the turbines currently on site are only temporary, and plans are in place for permitted turbines with pollution controls. Whitehaven, Tennessee resident Loretta Thornton lives right next door to xAI's Colossus 2 data center.Andrew Evers, CNBC The NAACP released a guide for communities in January on how to protect themselves from "dirty data," and a framework companies can follow to avoid clashes with neighbors like SpaceXAI experienced in Memphis.Attorney Abre' Conner, who leads the NAACP Center for Environmental and Climate Justice, said SpaceXAI and other companies are moving to areas that have already experienced industrial pollution, "deepening the sacrifice zones that many of these community members have been fighting to get out of for so long."In Whitehaven, Tennessee, where a majority of residents are black, long-time resident Loretta Thornton said she had invested some retirement and savings into reframing her house, which borders the fence line of Colossus II. She said suggestions to sell and move away don't seem viable, especially with housing costs and interest rates rising."You just have to endure this. And that's all I'm doing," Thornton said. "I know I cannot sell my property. Who will want to buy it, living beside this thing?"-- CNBC producer Andrew Evers contributed reporting. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
The power ministry is assessing infrastructure readiness for data centres. Internal estimates project significant power demand from these facilities by 2032. Discussions involve utilities and developers regarding power supply and transmission needs. States are receiving support for developing necessary infrastructure projects. India's data centre market is experiencing rapid expansion and investment. View More
New Delhi: The power ministry is actively engaging with stakeholders to evaluate their preparedness for electricity and related infrastructure for data centres, said people aware of the development. The deliberations come in the backdrop of the ministry's internal estimates projecting power demand from data centres at 26 GW by 2032 and 35.7 GW by 2040. The power ministry, along with the Central Electricity Authority (CEA), is holding meetings with distribution utilities, transmission companies, and data centre developers to assess power supply requirements , transmission connectivity and infrastructure planning , the people said. The ministry is supporting states in preparing infrastructure as more data centre projects are announced, one of the persons said. It is focusing on discussions around issues of grid and transmission for data centres. said an industry executive. A latest report from KPMG said India's data centre market is witnessing rapid capacity expansion, driven by strong digital demand tailwinds and a surge in infrastructure investments. An estimated $90 billion opportunity is expected to emerge by FY35 across the end-to-end data centre value chain, according to the report. Live Events ET previously reported that government has initiated an exercise to map countrywide projected power demand from upcoming data centres. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;width: 100%;box-sizing: border-box} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
