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Energy Markets

Fossil Fuels

Fossil Fuels

Rosneft has taken control of Russia's biggest rare earth deposit.

Rosneft, Russia's biggest oil producer, has purchased Tomtor, which is the largest rare earth deposit in the country, according to a company registry published on Wednesday. This acquisition follows President Vladimir Putin’s request last year that the development of this field be accelerated. Tomtor is located in the northern part of Siberian Yakutia region. It's a major project for Russia to increase production of metals used in the defense industry, mobile phones, and electric cars. According to the official Russian state registry, Rosneft under Igor Sechin - a Putin ally for many years - gained complete control of Vostok engineering,...

Fossil Fuels

Asian petrochemical producers chase ethane gains as margins dwindle

As they struggle with thin margins and a global oversupply of petrochemicals, executives from several Asian companies said that they plan to reconfigure crackers in order to process more Ethane. This will reduce costs and allow them to take advantage of the rising U.S. supply. SP Chemicals, a Chinese company, and YNCC in South Korea are two of the largest cracker operators. Mitsui Chemicals in Japan is researching the use of ethanol to fuel existing crackers. This change will enable operators to maintain flexibility in their feedstocks, with U.S. exports of ethane expected to increase by about 7% by 2025....

Oil & Gas

How can Trump bring peace to Ukraine?

Donald Trump said that he would be meeting with the presidents from Russia and Ukraine to discuss stopping the "bloodbath" in Ukraine. What are the obstacles that the U.S. President faces when he is trying to negotiate a peace agreement with Russia and Ukraine? SECURITY GUARANTEE Ukraine, which has been subjected to a full scale invasion in 2022, and witnessed Russia annex Crimea, needs security guarantees from major powers, primarily the United States. Sources involved in the talks say that the problem is that a security agreement without teeth could leave Ukraine vulnerable. Diplomats talked about a "robust" security guarantee,...

Fossil Fuels

Trump: UAE and US agree that Abu Dhabi will buy the most advanced AI chip.

Donald Trump announced on Friday that the United Arab Emirates (UAE) and the United States agreed to open a pathway for Abu Dhabi to purchase some of the world's most advanced artificial-intelligence semiconductors from U.S. firms, which is a significant win for Abu Dhabi in its efforts to become a hub for global AI. Trump's Gulf tour also included a visit to Saudi Arabia, Qatar, and the UAE. The UAE capital Abu Dhabi and wealthiest emirate of the UAE made a promise to increase the value of their energy investments to the U.S. by $440 billion over the next decade....

Oil & Gas

Pirelli: Talks over dispute with major shareholder ended without agreement

The Italian tyremaker Pirelli announced on Wednesday that the talks to repair relations with Sinochem, its largest shareholder in China, ended without any breakthrough. Pirelli, and its second-largest shareholder, Italy's Camfin have claimed that Sinochem's stake in the company is hindering Pirelli's ambitions for expansion in the United States. Some lawmakers there are against projects backed by Chinese firms. Pirelli stated in April that Sinochem no longer controls the company because of the Italian government's decision to "golden power" the company by 2023. Sinochem, however, denied this claim. Pirelli announced on Wednesday that "the proposals extended to Sinochem by Pirelli...

Oil & Gas Refining

Pirelli: Talks over dispute with major shareholder ended without agreement

The Italian tyremaker Pirelli announced on Wednesday that the talks to repair relations with Sinochem, its largest shareholder in China, ended without any breakthrough. Pirelli, and its second-largest shareholder, Italy's Camfin have claimed that Sinochem's stake in the company is hindering Pirelli's ambitions for expansion in the United States. Some lawmakers there are against projects backed by Chinese firms. Pirelli stated in April that Sinochem no longer controls the company because of the Italian government's decision to "golden power" the company by 2023. Sinochem, however, denied this claim. Pirelli announced on Wednesday that "the proposals extended to Sinochem by Pirelli...

Oil & Gas

Snakes and ladders in a potential Ukrainian peace deal

What are the possible contours of a peace agreement between Russia and Ukraine? SECURITY GUARANTEE Ukraine, which has been subjected to a full scale invasion in 2022, and witnessed Russia annex Crimea, needs security guarantees from major powers, primarily the United States. The Budapest Memorandum of 1994, in which the U.S., Russia and Britain agreed to refrain from using force against Ukraine and respect Ukrainian sovereignty was not enough for the Ukrainian government. The powers agreed to take the matter to the United Nations Security Council in the event of an attack on Ukraine. Sources involved in the talks say...

Fossil Fuels

Copec warns that the China pulp market may be challenged by US tariffs

Empresas Copec, a Chilean conglomerate of industrial companies, said that the Chinese market could be more difficult for its forestry product if paper manufacturers struggle to increase sales due to uncertainty about U.S. Tariff policies. In a recent presentation, Cristian Infante, the head of Copec’s forestry division Arauco, said that most of the customers who export to the U.S. don’t really know the price at which their goods will be sold. "They're trying as hard as they can to buy as little." Arauco sells wood panels and pulp worldwide and contributes to the majority of Copec’s earnings. However, its core...

Oil & Gas

Sinopec China launches HK$7.75 Billion exchangeable bond, shows term sheet

Sinopec, a Chinese oil company, is seeking to raise HK$7.75billion ($994.42m) via an exchangeable bond. This was revealed in a termsheet seen by us on Tuesday. The term sheet stated that the bond will have a zero to 0.99% coupon and be issued by an affiliate of Sinopec Group. The term sheet stated that the bonds would be exchangeable for shares of Sinopec's Hong Kong-listed subsidiary. The bond's exchange price is HK$6, which is 47.1% higher than Sinopec Hong Kong's closing price of HK$4.08 for Tuesday. Sinopec failed to respond to a request for comments sent by fax outside normal...

Oil & Gas

Former CNPC Chairman Sentenced to 13 Years in Prison for Bribery

State-run CCTV reported that Wang Yilin was sentenced on Tuesday to 13 years of prison for bribery, and fined $316,667. In July 2024, state media reported that Wang, who had retired from CNPC 2020, was expelled from China’s ruling Communist Party due to discipline violations. According to the report, he was being investigated for accepting illegally high-value assets as well as using his position to assist others in obtaining benefits from project contracts. CNPC (parent company of PetroChina listed on the stock exchange) did not respond immediately to a comment request. In a press release last year, the company stated...

Fossil Fuels

Sources say that the Saudi oil export to China is expected to remain at a record high of one year in June.

Trade sources reported on Tuesday that Saudi Arabia's crude supply to China would remain the same in June, after reaching its highest level in over a year the month before. This follows OPEC+'s decision to increase production. Saudi Aramco, the state oil company, will ship 48 million barrels of crude oil to China in June. This is the same amount as May and the highest since at least 2024. Aramco has not responded to the request for comment regarding its June allocations. Sources say that Sinochem, a Chinese state-owned refiner, and private refiners such as Rongsheng Petrochemical, Hengli Petrochemical, and...

Fossil Fuels

China Minmetals unit bids for Australian miner to target global potash assets

Yankuang Energy, a coal miner owned by China Minmetals, announced on Monday that a unit of the state-owned company plans to invest $300m to purchase Australian potash miner Highfield Resources. The aim is to expand into potash projects across Canada and Spain. Highfield Resources announced in September that it would raise $220 from Yankuang Energy, among other parties. This deal would make the Chinese coal mining company its majority shareholder. If the agreement is completed, Qinghai Salt Lake Industry, owned by Minmetals, Yankuang and Highfield's largest shareholder EMR Capital would gain control of Highfield. Qinghai will also purchase Yankuang's Yancoal...

Crude Oil

Crude Oil

Stocks fall, yields rise; 20-year Treasury auction shows soft demand

Investors worried about the deteriorating fiscal outlook in the United States and Treasury yields rose following a sale by Treasury Department of $20 billion worth of bonds for 20 years. After the auction, all three of the major U.S. indexes fell by more than 1%. The dollar fell widely as well. Treasury yields continued to rise after the U.S. Treasury Department reported a weak demand for its $16 billion sale 20-year bonds. The bond sale was weak, which reinforced the idea that investors are avoiding U.S. assets. Concerns continued to grow about President Donald Trump's attempts to push through a...

Crude Oil

Treasury yields are rising, stocks and the dollar are down, with focus on the tax bill and US downgrade

The yields on longer-dated Treasury bonds rose, while the global stock indexes fell and the dollar weakened Monday. This was due to concerns over a U.S. federal tax bill, the U.S. government's debt and Moody's decision to downgrade the U.S. sovereign rating. Moody's Investors Service lowered the United States' sovereign rating to "Aaa" late on Friday night, bringing attention to the country's worsening fiscal outlook. A key congressional committee approved the massive tax-cut legislation of U.S. president Donald Trump on Sunday. Republicans in the U.S. House of Representatives, who currently control it, will push for the bill's passage this week....

Refined Products

China's crude oil surplus surged in April, as refinery output dipped. Russell

In April, the amount of crude oil that was available in China for storage grew for a second consecutive month. Imports were relatively high while refinery processing declined. According to calculations based upon official data, China's crude surplus amounted to 1,89 million barrels a day (bpd), the highest since June 2023, and an increase from 1,74 million bpd last March. China, which is the world's largest crude importer and has been a major buyer of oil, has bought large quantities of discounted oil, mainly from Iran and Russia, in countries that are under Western sanctions. China does not reveal the...

Mining

Mineral Resources

Mineral Resources

Dalian iron ore is a rangebound product as traders consider China's demand and higher shipments

The prices of Dalian Iron Ore Futures fluctuated within a narrow range on Thursday, as investors balanced the resilient demand in China for this steelmaking ingredient against increasing shipments by leading producers Australia and Brazil. The September contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 0.14% higher, at 727 Yuan ($100.93). As of 0704 GMT, the benchmark June iron ore traded on Singapore Exchange was down by 0.56% to $99.25 per ton. Galaxy Futures, a broker, said in a recent note that the end-user demand is resilient, especially in the manufacturing industry, which continues driving...

Mineral Resources

US-China Trade truce could ease Komatsu's Tariff Pain by $140 Million, CEO says

The CEO of Komatsu said that the U.S. trade truce with China last week should have a positive impact on the bottom line, reducing the impact by nearly 20 billion yen (140 million dollars) from the U.S. Tariffs. This suggests that the company's outlook for lower profits is not as bad as it was feared. The impact of the tariffs on profit would be disproportionately large, as more than a quarter of Komatsu’s sales come from North America. Takuya Imaoshi, head of the second largest construction and mining equipment maker in the world, didn't say that it was officially revising...

Mineral Resources

London copper prices rise on a weaker dollar but tariff concerns limit gains

The copper price in London rose on Thursday due to a weaker dollar. However, gains were modest because of the uncertainty that remains over the economic growth caused by high U.S. Tariffs. As of 0317 GMT, the benchmark copper price on London Metal Exchange was up by 0.2% to $9,555 per metric tonne. Dollar fell against a wide range of currencies Wednesday due to concerns about the Trump administration's plans for tax cuts and spending. The dollar's weakness makes commodities priced in greenbacks less expensive for buyers of other currencies. Last week the U.S. agreed with China to reduce tit...

Mineral Resources

London copper prices rise on a soft dollar but tariff worries cap gains

The copper price in London rose on Thursday due to a weaker dollar. However, gains were modest because of the uncertainty that remains over economic growth as a result of high U.S. Tariffs. As of 0224 GMT, the benchmark copper price on London Metal Exchange was up by 0.1% to $9,546 per metric tonne. Dollar fell against a wide range of currencies Wednesday due to concerns about the Trump administration's plans for tax cuts and spending. The dollar's weakness makes commodities priced in greenbacks less expensive for buyers of other currencies. Last week the U.S. agreed with China to reduce...

Mineral Resources

Copper prices rise on concerns about US debt and a weaker dollar

Copper prices rose on Wednesday, as investors, frightened by the growing U.S. government debt levels, sought out hard assets in a weaker dollar. The benchmark three-month price of copper at the London Metal Exchange was up by 0.1% to $9,528 per metric tonne as of 1615 GMT. Republicans in the U.S. House of Representatives try to overcome divisions within themselves about President Donald Trump’s tax cut bill and spending bill that would extend his tax cuts from 2017. Last week, credit-rating company Moody's stripped the U.S. Government of its top-tier ratings. The firm cited the nation's increasing debt. Ole Hansen...

Mineral Resources

Rosneft has taken control of Russia's biggest rare earth deposit.

Rosneft, the country's biggest rare earth metal deposit and largest oil company, acquired Tomtor on Wednesday after President Vladimir Putin urged the development of this field to be accelerated last year. Tomtor is located in the northern part of Siberian Yakutia region. It's a major project for Russia to increase production of metals used in the defense industry, mobile phones, and electric cars. Rosneft, according to the official Russian state registry, took control of Vostok engineering, the project operator, on May 20, 2018. Rosneft didn't immediately respond to a comment request. In November, Putin accused Tomtor's operator of delaying its...

Oil & Gas

LME WEEK - Mercuria says copper shortages could push prices up to record levels

The head of metals research at Mercuria said that the trading house expects a 700,000-metric-ton copper concentrate deficit and a 300,000-metric ton deficit for refined metal this year, which could drive prices up to new records. Nicholas Snowdon, the high-profile bull of Mercuria in Geneva, expects copper prices to reach record levels sooner rather than later. Snowdon said at the LME Asia Week Conference in Hong Kong that the copper market is in a vulnerable state. It's not a matter of if but when this market will move into a scarcity state. This could happen as early as the second...

Mineral Resources

Iron ore prices rise as traders assess resilient demand and soft China data

Iron ore futures traded in a narrow range on Tuesday as investors weighed the resilient demand for steelmaking ingredients near term against the subdued data from China, its largest consumer. As of 0252 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange remained unchanged at 723.5 Yuan ($100.17). On the Singapore Exchange, benchmark June iron ore was trading at $99.6 per ton. This is a 0.15% increase. Mysteel, a consultancy, said that production among Chinese iron ore mines continued to rise last week after more mines reopened. According to Mysteel, the total volume of iron-ore concentrate...

Mineral Resources

Sources say that RPT-Shanghai Exchange is looking to open up domestic nickel contracts to foreigners in this year.

Two sources familiar with the matter have confirmed that the Shanghai Futures Exchange is looking at opening its domestic nickel contract to foreign investors in this year instead of launching a new contract on its International Energy Exchange. ShFE has been exploring a more internationally-accessible nickel contract since at least 2023 as part of broader plans to build its global presence and challenge the dominance of rival the London Metal Exchange (LME). ShFE, according to industry sources, also wants to provide an alternative to LME Nickel after the trading disaster in March 2022. The LME contract had been suspended for...

Mineral Resources

London Copper eases after weak data on China demand

After data showing a slowdown in industrial output in China, concerns about the demand outlook for copper in China led to a slight decline in London's copper prices on Monday. As of 0355 GMT, the benchmark copper price on London Metal Exchange (LME), was down 0.1% to $9,438 per metric tonne. China's industrial production and retail sales growth slowed down in April, according to official data released on Monday. A trade war was threatening to slow the momentum of the second largest economy in world. Official data revealed that the country's new house prices were flat for the second consecutive...

Mineral Resources

London Copper rises as Dollar drifts lower

The copper price in London increased slightly on Monday, following a slight decline in the dollar. However, President Donald Trump's renewed threat of tariffs halted gains. As of 0211 GMT, the benchmark copper price on London Metal Exchange was up by 0.2% to $9,465.5 per metric tonne. In early Asian trading, the U.S. Dollar pared its four-week gains as markets digested an unexpected downgrade in the credit rating of the U.S. Government and as lingering tensions over trade weighed on sentiment. The greenback price of commodities is cheaper for buyers who hold other currencies. Scott Bessent, the U.S. Treasury secretary,...

Mineral Resources

LME WEEK: Trump, China and tariffs as the metals industry gathers to Asia

The metals industry will gather in Hong Kong to celebrate its annual event. They'll be focusing on the huge amounts of copper that are being diverted from the U.S. because President Donald Trump has threatened to impose tariffs. Trump's attempts to overturn the post-war system of trading have caused metals markets to roil and raised questions about global growth and commodity flows. In February, Trump ordered an inquiry into potential tariffs on copper. Copper is vital to energy transition technologies like electric vehicles and solar panel technology as well as power grid wiring. The possibility that Trump would impose tariffs...