Latest News
-
Nigeria's Dangote refinery says that the reduction in crude inflow is due to high prices and not faults
Nigeria's Dangote Refinery stated on Friday that the recent reductions in crude inflows was a strategic reaction to high global prices and not a result of operational failures. The comments were made during a tour of the media to address concerns about crude volumes and possible outages at this facility. Edwin Devakumar said that the refinery adjusted crude purchases in response to price fluctuations and stock levels. The 650,000-barrel-per-day refinery, built by billionaire Aliko Dangote, has undergone several rounds of maintenance this year, leading to reduced crude demand. Devakumar stated that "no factory is 100% fault-free every day." What matters is whether the problem has an impact on final production. He said that the refinery, which started operations in early 2018, is designed to undergo turnaround maintenance every five year, unlike older installations, which require more frequent shut-downs. The refinery's gasoline division has been shut down four times this year, which is unusual for an old plant. The company usually declines to comment on the maintenance schedule. Devakumar, who was speaking about recent dismissals of staff, said that the company had recorded 22 sabotage efforts, including attempts to start fires or tamper equipment. The refinery's automated control and fire protection systems, he said, prevented damage. He said: "We have dates and units of attempted fire incidents documented." "Some people tried to destroy instruments, but they were overruled by the system." According to the Crude Oil Refinery Owners Association of Nigeria (a trade association representing domestic refiners), sabotage is rare in local refineries. Nigeria's state owned refineries are still mothballed after years of neglect and corruption. Reporting by Isaac Anyaogu, Editing by Chijioke Ahuocha and Rod Nickel
-
Petroperu's chairman is ousted by the new government of Peru, says regulator
The country's market regulator announced on Friday that the interim government of Peruvian President Jose Jeri has dismissed the chairman of Petroperu, the cash-strapped energy company owned by the state. In a document, Peru's market regulator stated that the decision was taken to dismiss chairman Alejandro Narvaez during a shareholder's meeting on Thursday. Narvaez's position was terminated that same day. Fidel Augusto Moreno, the current vice-chairman of the board, was appointed as interim chairman. Officials from the Economy Ministry and Energy and Mines Ministry are the main shareholders in the oil company. Jeri appointed their new heads after taking office last week, following the sudden ouster of Dina Boluarte. Narvaez was appointed chairman of Petroperu’s board in November. The company is facing a financial emergency due to heavy debts and tight cash flow after an investment of $6.5 billion in modernizing its Talara refinery, which was more than twice the original estimate. (Reporting and writing by Marco Aquino, Editing by Sarah Morland; Brendan O'Boyle)
-
The October budget revenue for Russia's oil and gas sector is expected to fall by 21%
Calculations show that Russia's oil and gas revenues in October will fall by about 21%, to 950 billion Russian roubles (about $11.7 billion), compared to the same month a year ago, due to lower prices and an increased rouble. This is a blow to Moscow's largest source of income. The projected decline will present more challenges to the Russian government. It is already facing a growing budget deficit, and it has been forced to raise taxes in order to finance increasing military and security expenditures. The oil and gas revenues account for up to one quarter of the Russian budget. They are also the main source of funds for Moscow's ongoing military campaign against Ukraine. According to calculations based upon data on oil and natural gas production, refining and supplies on the domestic and international market, October revenues are expected to increase by 63% month-over-month due to companies paying profit-based tax. Calculations show that revenue for the first 10 month of the year will fall by 20,5%, to 7,56 trillion roubles. On November 5, the Finance Ministry will publish its estimates for oil and gas revenues in October. The Ministry initially projected 2025 oil revenues at 10,94 trillion, or 5% of the gross domestic product. However, this has been reduced to 8,32 trillion roubles.
-
The family of the Mango fashion tycoon says they are confident in their son's innocence.
After several local media outlets reported that he was under investigation for possible murder, the family of Mango founder Isak Andic said they were confident Jonathan was innocent. In a press release, the family stated that they "will continue to work with the authorities as it has been doing up until now." It also hopes that the process will be completed as quickly as possible, and that Jonathan Andic will be proven innocent. The company said that it would not provide any further comments at this time. COURT SAYS CASE IS NOT DIRECTED AT AN INDIVIDUAL La Vanguardia reported late Thursday that Jonathan was officially investigated by the judge investigating Andic's murder in September because of the contradictory testimony he provided as a witness. Authorities were also searching his phone to find more evidence. The press office of the Barcelona Court said Friday that this case, which was still sealed, did not target any specific individual. La Vanguardia reported that investigators had not found conclusive proof linking Jonathan Andic with the death of his father during their 10-month investigation. Isak Andic fell more than 100 meters (328 feet) while hiking in the Montserrat Caves near Barcelona with his family. Mango was founded in 1984 by the businessman who, in the 1960s, moved from Catalonia to northeastern Spain. He is a competitor of Zara founder Amancio Oreega. Forbes reports that at the time of his passing, he was the non-executive chairperson of the fashion company and valued $4.5 billion. Jonathan Andic became vice-president and president of MNG, the holding company of his privately owned company after the death of his father. MNG named his sisters Judith, and Sarah as vice presidents. After Andic's passing, Toni Ruiz became the chairman of both the board and the chief executive officer. Corina Poins and Charlie Devereux contributed to the reporting. Joan Faus contributed additional reporting. Editing by Hugh Lawson and Andrei Khalip)
-
Rio Tinto increases Simandou stockpiles by 2 million tonnes for the first shipment
Rio Tinto is preparing to ship 2 million metric tonnes of high-grade ore from its Simandou mine in Guinea by mid-November, according to three sources. This would be the very first shipment out of the massive mine that will reshape the global supply and pricing. Rio's third-quarter report, released on Tuesday, stated that SimFer, one of two mines in Simandou, had amassed 1,5 million tons of ore. The first ore was loaded onto rail transport back in October. Unspecified details were not provided by a spokesperson, but he said that the company was continuing to progress the project at "pace". SIMANDOU PRESSURE HIGH-COST RIVALS Sources, who spoke on condition of anonymity, said that the first shipment was expected to be sent to China, which is the world's largest steel producer and consumes over 70% of all seaborne iron ore. Rio will first route exports via infrastructure owned by Winning Consortium Simandou. The port of this partner is close to completion. Rio announced on Tuesday that it expected to begin loading vessels around November, but did not disclose the volume of initial cargo. The ownership of Simandou is divided between the consortiums of Rio, Chinese state-owned Chalco, and WCS - a Singaporean and Chinese consortium. Simandou is estimated to hold 4 billion tons ore with an average iron content of 65%. At full capacity, SimFer will contribute half. According to the International Monetary Fund, the project will boost Guinea's economy by 26% between 2030 and 2040. The Guinean military government intends to officially commission the project on 11 November. WCS, the company that operates Simandou’s other mine began stockpiling iron ore in September. This set up a race to gain market share early. Tom Price, Panmure Liberum's head of commodities, said that iron ore prices may fall if Australian and Brazilian miner's don't react to Simandou’s increase. The seaborne supply would increase by 8-9 percent if the 120 million ton annual production by 2028. Peter Cunningham, Rio's finance chief, said in July the launch of Simandou would force some high-cost suppliers off the market. China is tightening its grip on Guinea’s resource sector and leading bauxite imports. Chinese steelmakers are turning to low-cost ore of high quality to reduce emissions and energy consumption. WCS and Guinea’s Mines Ministry did not respond to comments. Maxwell Akalaare Adombila, reporting. Clara Denina contributed additional reporting. Mark Potter and Veronica Brown edited the article.
-
Trump still plans to meet with Xi despite saying that tariffs of 100% on China are not sustainable
U.S. president Donald Trump said that his proposal of a 100% tariff on Chinese goods would not be sustainable. He blamed Beijing, however, for the latest impasse in negotiations which began when Chinese authorities tightened control over rare-earth exports. When asked if such a high tariff is sustainable and what this might do to the economic system, Trump responded, "It is not sustainable but that's the number." In an interview that aired on Fox Business Network, he stated that "they forced me to do this." Trump announced additional 100% levies on China's U.S. bound exports last week, as well as new export controls for "any and all crucial software" on November 1, nine day before the existing tariff relief would expire. Trump's new trade measures were a response to China drastically expanding its export controls for rare earth elements. China is the dominant market for these elements, which are vital to tech manufacturing. Trump confirmed he will meet with Chinese president Xi Jinping, in South Korea in two weeks - a date the U.S. President had questioned last week – and expressed his admiration for him. "I believe we will be fine with China but we need to make a fair agreement." Trump told FBN's Mornings with Maria, which was recorded on Thursday that the deal had to be fair. Wall Street suffered some early losses Friday due to the softer tone of Trump and his affirmation that he would meet with Xi. The major U.S. indexes were modestly up in early trading, despite the recent turmoil caused by Trump's sudden reimpositions of steep tariffs on Chinese imports as well as credit concerns among regional banks. In another sign of a possible thaw, CNBC reported that U.S. Treasury Sec. Scott Bessent will speak with Chinese Vice Premier He Lifeng on Friday. The time of the call was not disclosed. A Treasury spokesperson didn't immediately respond to an inquiry for comment. Beijing refuted Bessent's claim that He was "unhinged" during recent meetings with U.S. negotiators. (Reporting and editing by William Maclean, Paul Simao and Susan Heavey)
-
Ambani's Reliance Industries reports a nearly 10% increase in profit on digital and energy growth
Reliance Industries, owned by Indian billionaire Mukesh Amani, posted a 9.7% increase in its quarterly profit on Thursday, largely due to a strong performance in the company's core energy business. The steady growth of digital services was also credited. The quarter ended 30 September saw a profit of 181.65 billion rupies ($2.06 billion), compared to 165.63 rupies a year earlier. Reliance's earnings are boosted by higher crude prices, a robust fuel market and a rise in margins for its oil-to chemicals business. Ambani is also accelerating his strategic shift to consumer and digital ventures. Mukesh Amani said that the oil to chemicals division grew on an Y-o -Y basis despite the continued volatility of energy markets. Reliance plans to list its telecom unit Jio in mid-2026. This move is seen as crucial to unlocking the value of its rapidly growing digital services unit. The core earnings of the oil to chemicals business increased by 20.9%, reaching $1.7 billion. EBITDA for its digital services, which include telecom unit Jio jumped 17.7% compared to a year ago, while EBITDA for the retail segment grew 16.5%.
-
Egypt says that resolving the Palestine issue is crucial for progress on India-Europe transit route
Egypt's Foreign Minister said that the Palestinian issue was crucial to progressing in the U.S.-funded transport project connecting India to Europe by sea and rail via the Middle East. The India-Middle East Economic Corridor was announced in September 2023 on the sidelines of a meeting of leaders of the Group of 20 leading economies. It was seen as a U.S. rival to China's Belt and Road initiative on global infrastructure. A month after the announcement of the decision, war broke out in response to the attack by the Palestinian Islamist Hamas on Israel on October 7, 2023. "We must remember that connectivity is a very important part of a settlement for the Palestinian cause," Egypt’s Foreign Minister Badr Abdulatty told reporters on a recent visit to New Delhi. He said he had discussed the IMEC with his Indian counterpart, and that Egypt is open to joining the project. The corridor will extend from India to the United Arab Emirates, via Saudi Arabia and the Arabian Sea. It will then connect to Europe through Jordan and Israel. India and the UAE signed an agreement framework for the project in the last year. Abdelatty, a reporter, said: "The IMEC project is important, but we must understand that what has happened in the past two years shows that escalation can hinder cooperation and connectivity." He said that Egypt had suffered a loss in excess of $9 billion ever since the Iran-aligned Houthi began its attacks against ships in the Red Sea. The group claims it was acting in solidarity with Palestinians. He said, "We're paying a high price." "Every day, we used to see at least 75 ships cross the Suez Canal in both directions. It's down to 25 ships maximum, or at least 60%. Abdelatty arrived on Thursday in India for a bilateral visit of two days, where he met with Prime Minister Narendra modi. He will be meeting with executives from Indian companies as his country is pushing for more Indian investment. "We have an industrial zone in this area for China (and) Russia. He said that we encourage the creation of an Indian Industrial Zone alongside the Suez Canal Economic Zone. (Reporting and editing by William Maclean in New Delhi. Reporting by Shivam Patel from New Delhi)
European, Japanese shares hover close to tape-record highs, China rate cut draws shrugs
European shares teetered simply shy of alltime highs on Tuesday, while euro zone wage information did little to jolt struggling government bonds, and Asian shares slipped as a record rate cut in China failed to excite financiers.
Europe's broad STOXX 600 standard was down 0.1%,. After its recent run up remains less than 1% from its record. peak hit in early 2022, and S&P 500 futures dipped 0.3%.
Japan's Nikkei backed away from its. flirtation with the index's 1989 perpetuity high, closing 0.3%. lower.
The main data release for Tuesday on a relatively quiet. calendar was ECB numbers that showed the yearly growth in. negotiated salaries across the euro location slowed to 4.5% in the. final quarter of 2023, down somewhat from a record high of 4.7%. in the third quarter.
The ECB has actually singled out incomes as the single most significant risk. to its 1-1/2 year crusade against inflation, in which it raised. essential rate of interest to record highs.
It did little to move markets however, and Germany's 10. year Bund yield, which moves inversely to its rate, was down 2. basis points at 2.38% while the euro was a touch higher at. $ 1.0798.
The euro zone's benchmark yield has actually increased around 35 bps. Far this year as bumps in the roadway to lower inflation and. better than feared financial information in most of the world,. especially the United States, has caused markets to press back. their late-2023 expectations of significant rate cuts early this. year.
Germany's rate delicate two year yield has increased 40 bps. year to date.
When you look at the bigger image, we've put a significant. quantity of mileage behind us, the front end is much closer to. reasonable worth than at the start of the year, and closer to what. the central banks inform us what they will do, stated Peter. Schaffrik, chief European macro strategist at RBC Capital. Markets.
Markets presently expect around 100 basis points of rate. cuts from the Federal Reserve this year and just a touch more. from European Central Bank.
But the typically better than expected financial data has. been good news for shares.
If you remain in an environment where the economy is. stronger than you formerly believed, and inflation is going to. stay a bit sticky, and that implies nominal profits will stay. decent, stated Schaffrik.
The highest profile incomes release of the week is. stock exchange beloved chipmaker Nvidia, which reports on. Wednesday.
On Tuesday, British lending institution Barclays' shares increased 4%. after it set out a three-year strategy to revive its flagging share. rate, consisting of axing 2 billion pounds of expenses, with its. 4th quarter earnings.
CHINESE RATE CUT
China's five-year loan prime rate was lowered by 25 basis. points to 3.95%, bigger than the five to 15 bp cuts forecast by. economic experts. The 1 year rate was left at 3.45%, assisting blue. chips to complete the day up 0.2%, after an earlier. fall, and Hong Kong's Hang Seng index to rise 0.6%.
The Aussie dollar, a favourite proxy for China's. fortunes, barely moved and iron ore futures - conscious. demand from Chinese building - slid 3%.
This is the biggest rate cut to the 5 year LPR that we have. seen, said David Chao, international market strategist at Invesco.
Leaving one-year rates on hold, nevertheless, sends the signal. that Beijing is still being selective on the policy front and. has not totally pivoted to broad-based easing, Chao said.
The yuan touched its lowest in three months in. early trade before steadying at 7.1979 in the European morning.
Ten-year U.S. Treasury yields, up 10 basis. points last week dropped 1 bp to 4.28%, on returning from a one. day vacation. The dollar was strong enough to top 150 yen .
Products were steady with Brent crude futures. down around 0.3% at $83.31 a barrel. Gold held at. $ 2,022.7 an ounce.
Soft commodities started the week on the back foot with. wheat futures dropping to the weakest level in three. months on pressure from abundant Black Sea products. Short-covering lifted soybean futures to one-week highs.
(source: Reuters)