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Energy Markets

Oil & Gas

Oil & Gas

Brazil scraps diesel taxes, but imposes a levy on exports of oil after price spike

Brazil's government has scrapped diesel taxes and imposed a tax on oil exports. The move, which was made on Thursday, could affect the state-run Petrobras as it tries to ease the impact of recent global oil price spikes. The administration of President Luiz inacio da Silva said that the temporary measures will reduce the impact on local fuel prices caused by price swings resulting from the U.S./Israeli war against Iran. The South American nation cut the PIS federal tax and Cofins federal tax levied on diesel to zero. It also imposed a 12 percent tax on crude oil and a...

Oil & Gas

Nepal rations cooking gas in panic over shortage

An official said on Thursday that Nepal would begin rationing cooking gas due to fears of a possible nationwide shortage caused by the Middle East conflict. Chandika Bhatta, executive Director of the state-run Nepal Oil Corporation said that authorities will only refill half of empty cylinders of consumers starting Friday in order to extend the life of its liquefied petrol gas (LPG). The shortage of liquefied petroleum gas (LPG) is due to the U.S. and Israeli war against Iran, and Tehran's response across the region. This has effectively stopped shipping through the Strait of Hormuz. Bhatta said that despite assurances...

Oil & Gas Refining

South Korean Parliament approves $350 billion US investment bill

South Korea's Parliament passed a special law on Thursday that will pave the way for Seoul to fulfill its $350 billion commitments in strategic U.S. industry under a trade agreement?agreed?last year. The law implements the trade agreement signed by South Korea in November, under which it agreed to invest $150 billion into shipbuilding and $200 billion in strategic industries in the United States in exchange for more favorable tariff terms. In a Thursday plenary meeting, the National Assembly approved it with bipartisan backing. The legislation is expected to be in force within three months. It will form the basis for...

Oil & Gas

Official: Gulf trio reviews sovereign investments to offset Iran War Impact

Gulf officials said that three Gulf states were reviewing the way they invest trillions of dollars from their sovereign wealth funds to offset the losses caused by the U.S. and Israeli war against Iran. The official who spoke on condition of anonymity said that the review could include divestments, reversals of investment pledges, and a reevaluation of global sponsoring deals. This is because the oil and gas-rich states are assessing how to deal with the financial shock. The top four economies of the Gulf Cooperation Council are Saudi Arabia, Qatar and Kuwait. Three of the four largest economies in the...

Oil & Gas

Australia temporarily relaxes fuel standards to boost the supply

Australian Energy Minister Chris Bowen announced on Thursday that the country will temporarily relax fuel quality standards during the next 60-day period, as the Iran war is choking 'oil supplies and sending prices soaring. The move would allow fuels to contain up to 50 parts-per-million of sulphur, instead of the normal 10 parts-per million. He said that under the new relaxation, 100 million additional litres of gasoline per month will be allowed to enter the country. This will ease price pressures and fuel will be directed towards regions with a shortage. Ampol, a fuel refiner and retailer, is the company...

Oil & Gas

Brent oil returns to $100 after Iran intensifies its attacks on Gulf shipping

Oil prices rose on Thursday as Iran intensified its attacks?on?oil?and?transport facilities in the Middle East. This sparked fears of a long-term conflict and disruptions to oil flow through the Strait of Hormuz. Brent futures were up $8.54 or 9.28% to $100.52 a bar at 0354 GMT. U.S. West Texas Intermediate crude rose $7.22 or 8.28% to $94.47. Brent crude oil hit $119.50 per barrel on Monday. It was its highest price since mid-2022. Then, it dropped when U.S. president Donald Trump announced that the Iran War could end soon. In remarks directed at the U.S., an Iranian military spokesperson said...

Oil & Gas

South Korean Parliament expected to approve $350 billion US investment bill

South Korea's Parliament is expected to adopt a special law?on Friday to implement Seoul's $350 Billion investment commitments to?strategic?U.S. A trade agreement signed last year covers a number of industries. The law was designed to implement the trade agreement signed by South Korea and the United States in November. Under that agreement, South Korea committed to investing $200 billion into strategic industries in America as well as $150 billion to shipbuilding cooperation. This investment package was linked to Seoul receiving better tariff terms. The bill is expected to be passed by the National Assembly in its plenary meeting on Thursday....

Oil & Gas

Official: Gulf trio reviews sovereign investments to offset Iran War Impact

Gulf officials said that three Gulf states were reviewing the way they invest trillions of dollars from their sovereign wealth funds to offset the losses caused by the U.S. and Israeli war against Iran. The official who spoke on condition of anonymity because the matter was sensitive and without naming the states, explained that these reviews could include reversing investment pledges, divesting and re-evaluating global sponsorship deals. The top four economies of the Gulf Cooperation Council are Saudi Arabia, Qatar and Kuwait. Three of the four largest economies in the GCC will be assessing current and future investments and sponsorships...

Oil & Gas Refining

Sources say that Mercuria will withdraw almost 100,000 tonnes of aluminum from the LME due to disruptions in Middle East supply.

According to three sources, the commodity trader Mercuria intends to remove large volumes of aluminum from LME storage facilities, as the closure of the Strait of Hormuz has 'frozen' Middle East shipments, and put further pressure on supplies in Europe, and the United States. Around 9% of global primary aluminium is produced in the Middle East. Since last week, the U.S. and Israeli war on Iran has closed the Strait of Hormuz. Mercuria, a Swiss company, cancelled or designated for delivery on Monday nearly 100,000 tons?of aluminium in LME-approved Port Klang warehouses. The sources who are familiar with the issue...

Oil & Gas

The Iran-related energy spike reduces the room for rate reductions in emerging markets

Oil prices spiked due to the war in Iran, and for now this has halted any monetary easing efforts by emerging market central bankers from Poland to Turkey. This is because policymakers are coping with an increase in inflation expectations as well as a rise in risk aversion. After a series of shocks, from the COVID outbreak to Russia's invasion in?Ukraine, that have shook markets, slowed growth, and fueled inflation, central banks are finally becoming more optimistic about global economic resilience?and easing price pressures. The dollar gained ground, and U.S. Treasury Yields rose as a proxy of borrowing costs in...

Oil & Gas

Russian oil prices used to tax state revenues exceed budget targets

Calculations showed that the price of Russian crude oil, used to tax the country, has exceeded the budget target?for the first time since Jan 2025?because?of?the rise in global prices due to the Iran War. Since the beginning of the war in Ukraine, in 2022, Russia has increased its military spending, increasing its deficit. In January-February, it was 3.45 trillion Russian roubles (43.70 billion dollars), or 1.5%. The Iran War, which involved U.S., Israeli and Iranian strikes on Iran, and Iranian strikes against Israel and U.S. military bases, as well as Gulf states has fueled a significant increase in demand for...

Oil & Gas

UK gilts suffer new decline as investors focus on oil reserves

The price of British government bonds?fell dramatically in early trade on Tuesday, as the markets questioned if the plans for a record releasing?of oil reserve could offset any potential supply shocks resulting from the U.S. and Israeli war against Iran. As of 0906 GMT the short-dated gilt yields were up around 12 basis points, completely erasing Tuesday's large drops. Investors have also reduced their bets for a Bank of England rate cut in this year. The probability is now?roughly 20 percent, down from 50 percent a day ago. The British public is more vulnerable to a shock in energy prices...

Fossil Fuels

Fossil Fuels

Trump believes Iran's supreme leader, the new supreme leader, is still alive but damaged

Donald Trump said that the new Iranian Supreme leader Mojtaba Khmenei is still alive, but "damaged." His father, the previous supreme ruler, was killed in the U.S.-Israel war against Iran on the very first day. Khamenei has not been seen in Iran since he was selected on Sunday by the clerical council. His first remarks were read by a television presenter on a Thursday. A senior Iranian official said on Wednesday the newly-appointed supreme leader was only lightly injured, but continued to work. State television had described him as a war-wounded man. "I think (he is) probably alive." In an...

Fossil Fuels

Bessent: US Navy can escort ships in Strait of Hormuz alongside international coalition

The?U.S. The?U.S. Navy will escort ships?through the Strait of?Hormuz, possibly with an international alliance, when it's militarily feasible, U.S. Treasury Sec. Scott Bessent said in an interview with Sky News on Thursday. Bessent stated that he believed the US Navy would escort vessels through as soon as it was militarily possible. He said that the plan to escort ships would be implemented as soon as "the U.S. had complete control over the skies" and the Iranians' ability to rebuild their missiles was completely degraded. U.S., Israeli and Iranian strikes on Iran have escalated regional tensions. The response from Tehran has...

Fossil Fuels

UK gilts are scorched once again as the Iran war rages and BoE rate increase bets soar

British government bonds fell again on Thursday. The escalating conflict with Iran has prompted investors to price in a Bank of England interest rate increase this year, amid concerns about Britain's vulnerability?to energy prices shocks. Long-dated bonds dropped the most on Thursday. This was due to concerns about possible additional government borrowings for funding support for energy consumers. At 1547 GMT the yields on 10- and 20-year bonds, which move in the opposite direction to the prices, both rose by around 10 basis points. The former reached its highest level since September at 4,804%. Markets bet more on the BoE...

Crude Oil

Mineral Resources

Mining

As supply concerns increase, iron ore prices rise.

The price of iron ore futures rose for the third session in a row on Friday, as expanded restrictions on cargoes by mining giant BHP caused concerns about supply. These were further exacerbated by expectations that?hot metal production would increase in?China. As of 0318 GMT, the most-traded?contract? for May iron ore on China's Dalian Commodity Exchange climbed by 3.22% to 818.7 yuan (118.87 dollars) per metric ton. Earlier in the session, the contract reached a high of 827 Yuan for two months. The benchmark iron ore for April on the Singapore Exchange rose 0.7% to $108.6 per ton. Both contracts...

Mineral Resources

Sources: China expands BHP iron ore banning amid contract negotiations

China has increased its 'ban on BHP Iron Ore for the second time in just two weeks. This is a result of a contract dispute that has been ongoing for months with the third largest supplier of this key ingredient to steelmaking. Three sources familiar with the situation said that China Mineral Resources Group, the state-run buyer of iron ore, told domestic steel mills on Thursday they were prohibited from accepting Newman fines – a popular BHP ore found in ports – starting late next week. According to two anonymous sources, customers will be able to receive their cargoes in...

Mining

Australian shares fall on inflation fears, Northern Star falls on output warning

Australian shares dropped on Friday, as rising oil prices tied to the Middle East conflict fueled inflation fears. Meanwhile, gold miner Northern Star fell after announcing difficulties in achieving its annual production forecast. By 2333 GMT, the?S&P/ASX 200 was?down _0.3%? at 8,611.20. The benchmark index has lost 6.5% in the last two weeks, since the Middle East War began. The oil price rose on Thursday, reaching its highest level in almost four years. This was due to Iran's increased attacks on oil and transportation facilities throughout the Middle East. Markets projected a 78% probability of an increase at the Reserve...

Environment

Global EV sales fell again in February

Benchmark Mineral Intelligence's (BMI) data showed that global EV registrations dropped 11% in February. This was largely due to China's biggest?sales?drop since early 2020 when the COVID-19 epidemic began. China, which has been slackening its policies to encourage the purchase of electric vehicles, has stopped funding auto trade-ins. A tax exemption on EVs in China expired at the end last year. BMI reported that China,?the largest EV market in the world, saw a 32% drop in battery-electric car registrations and?plug in hybrid vehicle sales in February, a proxy measure of sales. This dropped to less than 500,000 cars. This is...

Mineral Resources

Aluminum nears four-year peak on Middle East supply concerns

Aluminum prices reached their highest level in almost four years on Thursday, as fears of a tighter supply for 'Europe and other areas' grew. The Middle East conflict is disrupting shipments through the Strait of Hormuz. The benchmark three-month aluminum on the London Metal Exchange increased 0.6% by 1111 GMT to $3,478.50 per metric ton after reaching $3,546.5. This was its highest level since late March 2022. The Middle East war has disrupted the deliveries of alumina and other raw materials to aluminium producers in the region. Norsk Hydro, a Norwegian company, announced on Thursday that its Qatalum aluminum smelter...

Mineral Resources

Norsk Hydro announces Qatalum Aluminium Smelter will stop curtailment and operate at 60%

Norsk Hydro announced on Thursday that its 'Qatalum' aluminium smelter, located in Qatar, would halt the curtailment begun last week. Production will be maintained at around 60% of capacity with reduced natural gas supplies. Qatalum - which has an annual smelting capability of 648,000 tons - began a controlled shut down on March 3, after it was informed that the gas supply would be cut off. QatarEnergy, a state-owned company, announced the day before that it would halt?LNG output after Iranian drones attacked its facilities. Hydro released a statement saying that Qatalum had decided to stop further curtailment after receiving...

Mineral Resources

BMW prepares for another year of tariffs and China struggles

BMW warns that it will not see any relief from the ongoing tariff costs in China and intense competition. The company warned on Thursday about a modest decline in its pre-tax earnings in 2026 and a stagnation of deliveries. BMW's rivals Volkswagen, Mercedes and Audi also reported a weaker 2025 due to trade barriers and falling China sales. They also made mistakes with electrification as the market demand for electric vehicles diverged in key markets. The outbreak of war in the Middle East has roiled nerves, fueling supply chain concerns and driving up fuel prices. It also threatens?demand, which is...

Mineral Resources

Sources: China extends iron ore export ban to BHP's new product

China has increased its ban on BHP iron ore a second time in two weeks. This is a result of a contract dispute that's been ongoing for months with the world's third-largest supplier. Three sources familiar with the matter said that China Mineral Resources Group (CMRG), the state-run buyer of iron ore, told domestic steel mills on Thursday they were prohibited from taking Newman fines – a popular BHP type of?iron stored in ports – as of next week. According to two sources, however, customers will still be able to receive their cargos in 'the next five days'. Due to...

Mineral Resources

Aluminum gains continue despite supply concerns amid Mideast conflict

Aluminum prices continued to rise on?Thursday. They were boosted by lingering fears about a tightening of global?supply in the midst of the Middle?East Conflict that shows?no sign?of easing. The Shanghai Futures Exchange's most traded aluminium contract closed the daytime trading up 0.38% to 25,240 yuan (US$3,669.56) a metric tonne. The benchmark three-month aluminum contract on the London Metal Exchange rose 1.32%, to $3,502.50 per ton. This is close to a four-year high of $3,544 that was reached earlier this week. Supply fears have been sparked by the war in the Middle East. This?region accounts for around 9 percent of global...

Mineral Resources

Iron ore prices rise as Hebei mills restart production; however, auto weakness limits the upside.

Iron ore futures rose on Thursday as mills in China’s steelmaking hub of Hebei completed regulatory checks. However, weaker auto sales and a softer outlook of car exports could limit price gains. The May contract for iron ore on China's Dalian Commodity Exchange traded 1.34% higher, at 795.5 Yuan ($115.68). As of 0707 GMT, the benchmark April iron ore price on Singapore Exchange?rose by 1.01% to $100.22 per ton. According to a report from the Shanghai Metals Market, hot metal production decreased 'this week after several steel mills were inspected for safety and environmental concerns during important government meetings held...

Mining

Sources say that commodities trader IXM is considering restarting aluminium trading.

Two sources familiar with the matter said that commodities trader IXM has held preliminary 'talks' with major aluminium suppliers and is looking to restart its aluminium trading business in 2019. One source said that Geneva-based IXM owned by China's CMOC Group, and one of world's biggest traders of non-ferrous physical metals has been discussing internally the rebuilding of a?team to trade aluminium since December. The source said that no team had been formed so far. IXM met with Chinese metals producer Lygend Resources, a second source confirmed. A CMOC spokesperson stated that "as a 'trading company', IXM would adjust the...

Mining

Sources say that commodities trader IXM is considering restarting aluminium trading.

Two sources with knowledge of the matter said that commodities trader IXM has begun initial talks with aluminium suppliers and is looking to restart its aluminum trading business in 2019. One source said that Geneva-based IXM owned by China's CMOC Group, and one of world's biggest traders of non-ferrous physical metals has been discussing internally the rebuilding of a team to trade aluminium since?December. A CMOC spokesperson said: "As a trader, IXM will adjust the trading product to match market conditions." IXM and Lygend didn't immediately respond to comments. This move coincides with some forecasts that?light metals used in 'transport,...