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Oil prices to drop by a weekly average with tariffs and legal battles in focus, OPEC+
The oil price is expected to drop more than 1% this Friday due to the U.S. tariff rulings and the potential OPEC+ production increase. Brent crude futures fell 26 cents or 0.41% to $63.89 per barrel at 0104 GMT. U.S. West Texas Intermediate Crude fell 27 cents or 0.44% to $60.67 per barrel. Brent's July futures contract expires on Friday. The tariffs imposed by President Donald Trump in the U.S. will remain in place after a federal court of appeals temporarily reinstated them Thursday. This reverses a decision made on Wednesday by a trade court to block the most comprehensive duties. As traders assessed its impact, the block sent oil prices down more than 1%. Analysts predicted that uncertainty would continue as tariff battles made their way through court systems. OPEC+ members, a group of oil exporting countries and their allies, will meet on Saturday to discuss a possible increase in July's oil production. OPEC is also trying to get some countries, like Kazakhstan, that are producing more than their agreed-upon levels, to reduce their output. Robert Rennie, Westpac's director of commodity and carbon analysis, said in a recent note that "the standoff between OPEC & Kazakhstan became more evident this week". According to a report published by Interfax on Thursday, citing Kazakhstan’s deputy energy minister, the country has told OPEC it doesn’t intend to cut its oil production. The Kazakhstani energy minister dismissed on Thursday the complaints of other countries about Kazakhstan's excessive production. He said that Kazakhstan's share in world oil production was less than 2%, and that a price for crude oil above $75 per barrel would be acceptable to all countries. Rennie stated that the stage was set for a bumper increase in production, possibly higher than the 411,000 barrels a day decision made at the two previous meetings. (Reporting and editing by Colleen Waye)
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CORRECTED OFFICIAL - Chevron to reduce 200 jobs in Texas
According to the Texas Workforce Commission, Chevron is laying off 200 workers in Texas. The U.S. oil company plans to reduce its global workforce to up to 20% by 2026. The layoffs will occur in Midland County where Chevron operates in the Permian basin, the largest oilfield in the United States. According to the notices, the layoff date will be July 15. Chevron announced in February that it would reduce its global workforce to cut costs. Chevron is under increasing pressure since then. Its license to operate in Venezuela has been revoked, and the planned $53 billion purchase of oil producer Hess, which was to be completed in February, hangs in limbo due an arbitration dispute. According to a March filing, the company had previously given notice that it planned to lay off at least 60 employees in California on June 1. Sheila Dang, Houston; Cynthia Osterman, editing.
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Barrick requests World Bank Court to intervene in Mali proceedings
Barrick Mining asked the World Bank arbitration tribunal to intervene in the legal proceedings in Mali as it faces the possibility that the Loulo-Gounkoto Mine could fall under the Mali government's control. Barrick made its move as a Mali court is set to rule on Tuesday, June 2, on the government request to place the Canadian miner’s gold mine in a temporary administration. In the event that the Mali court rules in the government's favor, an individual will be appointed to take control of the mine and reopen the facility. Barrick's Mali gold mine has been closed since January of this year, after Mali confiscated 3 tons of gold due to non-payment. Barrick denies the allegations. Barrick requested "provisional" measures from the arbitral tribunal in a Wednesday filing to the International Centre for Settlement of Investment Disputes. Timothy Foden of the international law firm Boies, Schiller, Flexner said that "provisional measures" means that Barrick applied to the tribunal to have an order that the Mali government refrain from further actions that could exacerbate the dispute. This includes Mali's attempt to place the mine under provincial administration. Barrick didn't immediately reply to an email from. Mali's Mines Ministry also did not reply to an email. Mali, Africa’s third largest gold producer, issued a new code of mining and tightened the grip on its gold mines. Most are run by Western companies. The military-led Government says it wants to increase revenue from the mining industry because it feels that current arrangements are unfair. Foreign multinationals will have to comply with the government's demands in order to continue operating in this gold-rich nation. Barrick is the exception. The company has said repeatedly that it has been investing heavily in the Malian economic system for over 20 years. The company accuses government officials of shifting the goalposts and demanding more money. It also claims that some of its executives have been unfairly detained in an effort to blackmail it. Barrick's Bamako corporate office has been closed by Mali's military government. The mine closure has also led to the layoff of Barrick's contractors. A Mali official said that international arbitration was not necessary and the issue is one of domestic taxation. Foden stated that Mali could ignore the World Bank's decision, even if it ruled in favor of Barrick’s request for a temporary measure. However, Mali might scare off more Western investors. (Reporting by Divya Rajagopal; Editing by Sandra Maler)
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IIR: Nigeria's Dangote Refinery will run at reduced rates until October.
The 650,000-barrel-per-day (bpd) Dangote oil refinery in Nigeria is expected to operate its gasoline-making unit at reduced rates through October after a string of issues in recent months, industry monitor IIR Energy told . About 70% of the capacity of the refinery's residual fluid catalytic (RFCC) unit, which produces 204,000 bpd of gasoline, is being used. IIR reported that the unit was closed from April 7 until May 11 due to damage to part of it, and again from May 15 through May 25 because of a mechanical problem. IIR stated that the full rate of production is not expected until October, when the refinery has completed a 40-day turnaround for reactor and catalyst repairs. IIR announced that the refinery's Continuous Catalytic Reformer will also be closed for seven days beginning June 2 in order to fix leakages. Dangote didn't immediately respond to an inquiry for comment. In January 2024, the refinery built by Nigerian billionaire Aliko Dagote in Lagos began to process crude oil into products such as gasoil and naphtha, and started producing petrol in September. The closure of smaller fuel plants in Europe, and elsewhere, is expected to have a major impact on the global fuel market. IIR stated that some downstream units have yet to begin commercial operations. These include a sulfuric alkylation unit which is scheduled to be operational by mid-June and a unit for polypropylene, which will come online at the end of the month. The industry monitor reported that the refinery's unit for crude processing has been operating at about 80% since mid-March. (Reporting from Shariq Khan, New York; editing by Sonali Paul).
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Attorney General: Three suspects arrested for raiding Libya's oil company
The Attorney General of Libya said that three suspects were detained after allegedly storming Tripoli's state oil company's headquarters. This comes a day before the rival government to the east had threatened to declare force majeure for oil fields and ports due to the assaults. The National Oil Corporation is based in Tripoli under the control of the internationally-recognized Government of National Unity. Although the parallel government in Benghazi, in the east, is not recognised internationally by the international community the majority of oilfields are controlled by Khalifa haftar. The NOC denied that its corporate headquarters were stormed. It called it "completely untrue" and quoted the acting chief of its corporation as saying it was "nothing but a small personal dispute which occurred in reception." The eastern-based government also threatened to temporarily relocate NOC's HQ to "safe cities", such as Ras Lanuf or Brega which they control. The Attorney General said that the public prosecution had reviewed all the evidence, examined the scene and reviewed video footage taken at the time of incident, as well as heard testimonies from those who were present. Attorney General said that the three suspects had been handed over to the Defence Ministry, who was instructed "to arrest any remaining participants in the incident". NOC reported on Wednesday that the national crude oil production in the last 24 hours was 1,389,055 barils per day. This is normal. Libya's oil production has been interrupted repeatedly over the past decade, since the chaos began in 2014 after the country was split between rival authorities east and west in response to the NATO-backed revolt that ousted Muammar Gadhafi in 2011. Ahmed Elumami, Ahmed Tolba and Deepa Babington (Reporting).
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Sources: Creditors of Brazil Braskem are skeptical about Tanure's bid
According to two sources familiar with the situation, the government of Brazil and the major banks that are Braskem's key creditors have so far been skeptical about the bid of businessman Nelson Tanure for a controlling interest in the petrochemical company. Sources who requested anonymity in order to discuss private discussions said that for now, lenders prefer to have a plan to restructure a company, and eventually sell the shares used as collateral to repay outstanding loans. Sources said that the banks were shocked by Tanure’s formal offer to buy a controlling interest in Braskem made on Friday and had yet to meet him to discuss this. Third source said that Tanure was visiting the heads of these banks but had not provided any details about his bid. Financial details of the plan are still being kept under wraps. Tanure stated in a press release that he was committed to Braskem's long-term growth. Sources said that before the proposal was made, banks including Brazil's state-owned development bank BNDES had held discussions with specialized firms such as Geriba Investimentos or IG4 Capital which specialize in alternative investments and special situations. BNDES and IG4 Capital declined comment. Geriba has not responded to requests for comment. The plan was for an investment firm, Braskem, to restructure the company, in order to increase its value, and to allow Novonor's creditors to gradually sell their shares over time. Sources claim that the banks have not finalized any contracts with the investment firms with whom they have been in contact. Sources also said that Brazilian banks are still willing to explore other options and may engage with partners they have not yet approached. After a major scandal involving corruption about a decade back, Novonor (formerly Odebrecht) has been unsuccessfully seeking a buyer for Braskem. It pledged Braskem shares as collateral for 15 billion reais (2.65 billion dollars) in bank loan. Since then, the value of these shares have plummeted. They are now worth less than one-third of the outstanding debt. Novonor confirmed on Friday that it had received a nonbinding proposal by an investment fund connected to Tanure, and signed an agreement. The proposal also stated that it was subject to conditions including completion of negotiations with creditors banks and Novonor fulfilling its obligations to Petrobras, Braskem’s second largest shareholder. Luciana Magnhaes, Luciana Magalhaes and David Gregorio (Editing)
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Sempra Port Arthur Phase 2 receives US approval for LNG export
The Department of Energy announced on Thursday that Sempra’s Port Arthur Phase 2 Project in Texas had won U.S. approval for exporting liquefied gas to Europe and Asia. The first final LNG export approval was given by President Donald Trump, reversing a pause in the approvals ordered by former President Biden to study the environmental and economic impacts of this booming industry. According to U.S. Secretary of Energy Chris Wright, the project is "a significant expansion of a first phase that was already under construction – turning more liquid gold underneath our feet into energy for the American public." Port Arthur LNG Phase II is still awaiting a final investment determination (FID) but will export 1,91 billion cubic feet of gas per day when completed. Port Arthur Phase 1 has begun construction and will begin exporting LNG by 2027. Sempra operates Cameron LNG Export Terminal in Louisiana which exports LNG since 2019. It is also building the Energia Costa Azul Terminal in Mexico which will start commercial export operations for U.S. gas as LNG by 2026. In a recent earnings call, Sempra stated that it expected to have a final investment decision (FID) by the end the year. However, "uncertainty regarding the macroeconomic climate may impact the timing of product developments." (Reporting and editing by Lisa Shumaker; Additional reporting by Curtis Williams, Houston)
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Nikkei reports that China will resume seafood imports to Japan once the fears over Fukushima thaw.
The Nikkei reported Friday that China and Japan had agreed on procedures for resuming imports of Japanese fisheries products. This could be a sign that a trade embargo is ending, according to a source in Japan's ruling political party. The agreement was reached at a bilateral meeting between officials on Wednesday in Beijing. Both governments are working to reduce tensions resulting from the release of treated wastewater by Fukushima Daiichi Nuclear Power Plant in 2023. The report stated that under the agreed-upon measures, Japan would register its fishery processing plants with Chinese authorities and export shipments would include certificates of inspection confirming the lack of radioactive substances, such as Cesium-137. Nikkei reported that China will likely announce in the near term the resume of imports of seafood from prefectures in Japan outside the Fukushima area. China banned Japanese seafood imports from 2023. This ban came shortly after Tokyo started releasing treated wastewater to the plant that was affected by the disaster. The move triggered a diplomatic and economic backlash. The Japanese and Chinese embassies did not respond immediately to a comment request. (Reporting from Rishav Chaterjee, Bengaluru. Editing by Vijay Kishore.
Brazilian police arrest members from a gang that was created to spy and kill lawmakers, judges
The Federal Police of Brazil announced on Wednesday that it had arrested five suspects suspected of involvement in a group formed to assassinate and spy on high-ranking politicians and judges.
One source familiar with the investigation stated that the gang was formed by both a civilian and a military officer.
The document, which was seized by police and seen by, reveals that the group went by the acronym C4, which is a reference to the full name Command for Hunting Communists, Corrupt People, and Criminals.
Documents also show that the gang targeted high-ranking judges and senators with 250,000 reais.
Documents stated that the organization used explosives, rifles, and prostitutes to lure in their victims.
The investigation was launched after the police began investigating the murder of a lawyer from the city of Cuiaba in Mato Grosso.
According to the news website UOL a retired colonel who has been imprisoned for over a year now, suspected of being involved in the murder of a lawyer, was one of those targeted during Wednesday's raid.
As part of this investigation, Federal Police officers executed six search warrants in three states across Brazil. (Reporting and writing by Ricardo Brito, editing by Bill Berkrot).
(source: Reuters)