Latest News
-
PMI data shows that the growth of non-oil businesses in the UAE slowed down in May.
A survey released on Wednesday showed that growth in the UAE’s non-oil sector has slowed down to its lowest pace in almost four years. Demand remained high but moderated from recent peaks. The S&P Global UAE Purchasing Managers' Index fell from 54.0 to 53.3, its lowest level since September 2021. However, it remained above 50.0, the threshold for growth. In May, the rate of growth in production was the lowest in 44 months. This reflects a softerening in the non-oil sectors despite the fact that demand conditions were still supportive. The sub-index for output dropped to 57.3 from 59.4 readings in April and was the lowest since September 2021. Although the pace of growth in new orders remained strong, the sub-index fell to 56.2 in may from April's reading of 56.9 and was the lowest in seven months. David Owen, Senior Economist at S&P Global Market Intelligence said that although businesses continue to be pleased with the strong demand they receive from clients, some reports indicate that competition pressures and a weaker trade due to US tariffs have weighed down on growth. In the survey, firms reduced their inventories to a record low as they streamlined their holdings in response to a slowing economy. Backlogs fell to their lowest level in 16 months, which indicates a slower pace of demand. The business outlook for the future is subdued. The optimism level has fallen to its lowest since January. The growth of Dubai's private non-oil sector remained stable, with the headline PMI in May at 52.9, the same level as in April. However, demand momentum increased, with new orders growing at a faster pace than ever before. (Reporting and Editing by Toby Chopra).
-
Scientists in Japan have developed plastic that dissolves within hours in seawater
Researchers in Japan developed a plastic which dissolves in the seawater in just a few hours. This could be a solution to a problem that is destroying oceans today and harming animals. Researchers from the RIKEN Center for Emergent Matter Science at the University of Tokyo claim that their new material breaks up much faster and leaves no residue trace. The team showed that a piece of plastic vanished from a container of salted water after stirring it for an hour. The team's research, according to project leader Takuzo Aida, has drawn a lot of interest from the packaging industry. World Environment Day, which takes place on June 5, is a campaign that encourages awareness of the plastic waste crisis. UN Environment Programme predicts that plastic pollution will triple by 2040. This would add 23-37 millions metric tons to the oceans every year. "Children can't choose where they want to live." Aida stated that it is our responsibility as scientists to leave them the best possible environment. Aida says the new material has the same strength as petroleum-based materials, but it breaks down to its original components upon exposure to salt. These components can be further processed using naturally occurring bacteria. This avoids the generation of microplastics which can harm aquatic life or enter the food supply. He added that salt is present in soil and a five centimetre (two inch) piece will disintegrate on land in over 200 hours. Aida explained that the material can be coated to make it look like regular plastic. The team is currently concentrating their research on the most effective coating methods. He added that the plastic was non-toxic, not flammable and did not emit any carbon dioxide. Reporting by Irene Wang, Editing by John Geddie & Lincoln Feast.
-
Oil prices fall on rising OPEC+ production, despite Canadian concerns
The oil prices fell in Asian trade Wednesday due to concerns about rising OPEC+ production and the threat of tariff tensions that could threaten global economic prospects. However, worries over Canadian supply kept them at a lower level. Brent crude futures fell 23 cents (0.4%) to $65.40 per barrel at 0318 GMT. U.S. West Texas Intermediate Crude was down 25 cents (0.4%), at $63.16 per barrel. The benchmarks rose about 2% to their highest level in two weeks on Tuesday, driven by concerns over disruptions to supply from wildfires in Canada and the expectation that Iran will reject a U.S. proposal for a nuclear deal which is key to easing sanctions against the major oil producer. Tsuyoshi Ueno is a senior economist with the NLI Research Institute. He said that despite fears about Canadian supply, and the stalled Iran/U.S. nuclear talks, the oil markets struggle to extend their gains. Ueno said that hopes of progress in U.S. - China trade talks had been overshadowed as investors remained cautious about the broader economic impact from tariffs. White House Press Secretary Karoline leavitt announced on Monday that U.S. president Donald Trump and Chinese President Xi Jinping will likely speak this week. This comes after Trump had accused China of breaking a deal to reduce tariffs and trade restrictions. The Organisation for Economic Co-operation and Development cut its forecast for global growth on Tuesday as the impact of Trump's trade conflict has a greater toll on the U.S. Analysts weighed up the impact on supply of OPEC+ and the Canadian wildfire situation. In a client note, BofA analysts explained that the current backwardation of the crude futures curve was due to low inventories since the start of the year. The contango farther out on the curve indicates that the market is anticipating future slack as a result of OPEC's planned increase in supply and a broader slowdown in the global economy. The markets were expecting wildfires to continue to affect supply despite the temporary respite of wet weather. In a note to clients, ING analysts warned that this relief might be short-lived due to forecasts of drier weather and warmer temperatures towards the end this week. Analysts expect that the decrease in Canadian supply will offset over half of the increase planned for next month by OPEC+. Ole Hvalbye of SEB, an analyst at the company, said that estimates suggest 350,000 barrels a day were affected by the fires and closed in. To put this into context, the disruption is more than three-quarters the volume OPEC+ had agreed to add to market in July." (Reporting and editing by Jamie Freed, Clarence Fernandez and Yuka Obayashi)
-
Iron ore gains on short covering, but seasonal slowdown in demand limits gains
Iron ore futures prices rose on Wednesday as investors closed short positions in order to realize profits. However, the seasonal slowdown of demand limited gains. As of 0300 GMT on China's Dalian Commodity Exchange, the most-traded contract for September iron ore traded at 700 yuan (US$97.41) per metric ton after reaching a two-month-low the previous day. As of 0250 GMT, the benchmark July iron ore traded on Singapore Exchange was up 0.21% at $94.5 per ton. Steven Yu, Senior Analyst at Mysteel, stated that prices have dropped dramatically over the last few days. Futures prices are now lower than spot price, meaning there is limited downside for futures on the short term. Yu said that "some shorts have resigned their positions because hot metal production is expected to be around 2.4 millions tons in June. A more dramatic price drop will only appear until fundamentals worsen further." As of May 30, the average daily hot metal production, which is a measure of iron ore consumption, fell by 0.7% compared to the previous week. It was now 2.42 million tonnes. Mysteel data shows that this is 2.6% more than the same time last year. Pei Hao is a senior analyst with international brokerage Freight Investor Services. She believes that the recent rise in the ore price was partly driven by the overnight rally in the coal and coke markets. Coking coal and coke, which are used to make steel, rose by 3% in the first session, after hitting a low of nearly nine years on Tuesday. The benchmark steel prices on the Shanghai Futures Exchange have seen gains. Rebar gained 0.48%; hot-rolled coil 0.69%; wire rod 0.55%; and stainless steel 0.28%. Reporting by Amy Lv & Lewis Jackson. $1 = 7.1858 Chinese Yuan
-
Denmark Grants First Offshore Wind Farm Lifespan Extension Permit
The Danish Energy Agency has approved a 10-year extension of the electricity production license for the 23 MW Samsø offshore wind farm.This marks the first time in Denmark that the lifespan of an older offshore wind farm has been extended. The agency has also invoked the EU emergency regulation to shorten the permitting process.When the Samsø offshore wind Farm was established in 2002, its electricity production license was limited to 25 years. After this period, the turbines were to be dismantled unless the owner, Wind Estate, applied for an extension.The company has done so and has now received approval, allowing the wind farm to continue producing electricity until 2037.The 10-turbine, 23 MW wind farm can supply power equivalent to the consumption of 20,000–25,000 households.“This decision allows the Samsø Offshore Wind Farm to continue generating green electricity instead of being decommissioned. It’s a positive development for the green transition and resource sustainability, as long as the facility can continue to operate safely.“This is the first time the Danish Energy Agency has ruled on extending the electricity production license for an existing offshore wind farm, and it sets a precedent for similar projects in Denmark. Several older offshore wind farms across the country are nearing the end of their original lifespans. In the coming period, we will evaluate whether they can also continue operating safely,” said Deputy Director Stig Uffe Pedersen of the Danish Energy Agency.Since the Samsø wind farm is nearly 25 years old, ensuring the structural integrity of the facility was crucial. Wind Estate submitted an independent analysis of the remaining lifespan of the turbines as part of the agency’s decision-making process. In addition, the company is required to conduct an extended annual maintenance inspection once the park is over 20 years old.The Danish Energy Agency added it is also currently reviewing license extension applications for the Middelgrunden, Rønland, Nysted, and Horns Rev 1 offshore wind farms.
-
Indonesian nickel miners working to launch local metals exchange in 2026
The secretary general of the Indonesian Nickel Miners Association said that they are preparing to launch a domestic metal exchange in 2026 for futures contracts on nickel and other metals. Nickel is produced in Indonesia, which has the largest reserves worldwide. The government has prohibited exports of ore nickel since 2020 to encourage investment in smelting. Recently, the authorities have shown a desire to exert more control over nickel prices. Nickel prices ended 2024 with a four-year low. Secretary general Meidy Kathrin Lengkey told the Shanghai Metals Market Indonesia Critical Minerals Conference & Expo that the government has approved the proposal by the nickel miners' group APNI to establish an Indonesian Metal Exchange. Meidy, late on Tuesday, said that the exchange's initial focus will be nickel pig iron, but it plans to expand its scope to include other nickel products and other metals. The group is currently working on the structure and concept of a new exchange, based on existing exchanges such as the London Metal Exchange or the Shanghai Futures Exchange. She said, "Our ambition is control the world with nickel." Edric Koh, with the LME, said that he was pleased by the plan. He highlighted the potential need for regional pricing discovery based upon local demand and supply dynamics, which could be a complement to a global benchmark price. Daniel McElduff, Abaxx Exchange, said that the plan must be carefully considered in terms of its timing and regulatory context. "Does your product have a commercial purpose?" Will it encourage buyers and sellers to participate in the market on a voluntary and active basis? If the answer is "no", then you are not using your resources well. (Reporting and writing by Gayatri Sroyo, editing by Kim Coghill.
-
CORRECTED: Global alarms are raised as China's crucial mineral export restrictions take hold
On Tuesday, global automakers complained about China's stranglehold over critical minerals. They joined their U.S. peers in claiming that China's restrictions on the export of rare earth alloys mixtures and magnets may cause production delays or outages if a solution is not found quickly. German automakers are the latest to express concern that China's export restrictions could shut down production, causing their local economies to be shaken. This follows a similar complaint made by an Indian electric vehicle maker last week. China's decision to suspend the export of magnets and minerals in April has thrown supply chains for automakers, aerospace companies, semiconductor firms, and military contractors all over the world into chaos. China is using the move to leverage its trade war against U.S. president Donald Trump. Trump is trying to redefine trade relations with China, the U.S. top economic rival. He has imposed steep tariffs on millions of dollars worth of imported goods. The goal is to narrow a large trade deficit and bring back lost manufacturing. Trump had imposed tariffs of up to 145% on China, only to reduce them after the stock, bond, and currency markets protested against the broad nature of the measures. China responded with its tariffs, and is using its dominant position in supply chains to convince Trump to back off. Karoline Leavitt, White House spokesperson, told reporters Tuesday that Trump and Chinese president Xi Jinping will be talking this week. The export ban should also be a major topic of discussion. She said: "I can assure that the administration actively monitors China's compliance to the Geneva trade agreement." "Our administration officials are continuing to correspond with their Chinese counterparts." Trump has indicated that China's slow pace in easing its critical export ban on minerals is a violation to the Geneva agreement. The Chinese regulatory system has halted the shipment of magnets that are essential to the assembly of everything from drones and robots to missiles and cars. The suspension of production has caused anxiety among corporate boardrooms, as well as in the capitals of nations from Tokyo to Washington. Officials are scrambling to find alternatives amid fears that new cars and other products could come to a grinding halt before summer ends. Hildegard Müller, the head of Germany's automobile lobby, said on Tuesday that production delays or even production outages cannot be ruled out if the situation does not change quickly. Frank Fannon is a consultant in the minerals industry and former U.S. Assistant Secretary of State for Energy Resources during Trump's initial term. He said that those who pay attention are not surprised by global disruptions. I don't believe anyone should be surprised at how things are playing out. We face a production problem (in the U.S.), and we must leverage our entire government approach in order to secure resources and increase domestic capability as quickly as possible. Fannon said, "The time to do this was yesterday." Sources said that diplomats, automakers, and other executives in India, Japan, and Europe urgently sought meetings with Beijing officials, to press for faster approval of exports of rare earth magnets. Shortages threatened to stop global supply chains. Reports indicate that a business delegation from Japan is scheduled to visit Beijing early in June in order to meet with the Ministry of Commerce regarding curbs. European diplomats who are from countries with large auto industries also requested "emergency meetings" with Chinese officials over the past few weeks. In the next two or three weeks, Bajaj Auto, which warned that further delays in the supply of rare-earth magnets from China would "seriously affect" the production of electric vehicles, will organize a trip to India for its auto executives. In May, in a letter addressed to the Trump Administration, the head the trade group that represents General Motors and Toyota, Volkswagen, Hyundai, and other major automakers expressed similar concerns. The Alliance for Automotive Innovation stated in a letter that "Without reliable, consistent access to these magnets and elements, automotive suppliers would not be able to produce critical automotive parts, such as automatic transmissions and throttle bodies. They also could not manufacture sensors, seatbelts, speakers and lights. (Reporting by Jarrett Renshaw, with additional reporting from Ernest Scheyder at Washington; editing by Chris Sanders, Marguerita Choy and Chris Sanders)
-
Gold prices rise amid US-China trade tensions and a weaker dollar
Gold prices rose Wednesday, as concerns about global economic conditions and uncertainty regarding U.S. China trade relations boosted demand for safe-haven assets. A weaker dollar also helped. As of 0209 GMT, spot gold was up 0.6% to $3370.67 per ounce. U.S. Gold Futures rose 0.5% to $3394.90. Kelvin Wong is a senior analyst at OANDA, Asia Pacific. He said, "We could see dip-buyers returning to the market." The trade relationship between China, the U.S.A. and even EU and U.S.A. is still uncertain. Gold is viewed as a safe haven during times of economic uncertainty. China's foreign minister Wang Yi said that the U.S. must create conditions to help bilateral relations get back on "the right track", according to the U.S. Ambassador to Beijing. The White House has hinted that Donald Trump and Xi Jinping, the Chinese president, may engage in discussions later this week regarding trade disputes. The U.S. also announced that it would not double the steel and aluminum tariffs imposed on Britain. Bullion priced in greenbacks is now cheaper for foreign buyers. Global economic concerns deepened after the Organisation for Economic Cooperation and Development (OECD) warned on Tuesday of sharper-than-expected economic slowdown, as the Trump administration's trade policies weigh heavily on the U.S. economy. Wong stated that "the OECD report will definitely be another factor supporting the safe demand to be heated up from a mid-term perspective." The U.S. labor market is showing signs of softening. Federal Reserve officials reiterated on Tuesday their cautious policy position, citing the risks of trade tensions and uncertainty in the economy. The price of spot silver increased by 0.3%, to $34.59 per ounce. Platinum rose 0.5%, to $1,079.62, and palladium remained at $1,009.94. (Reporting and editing by SumanaNandy, Janane Venkatraman and Anmol Choubey from Bengaluru)
Chevron starts $48 billion Kazakh oilfield growth
Chevron said on Friday it had begun production at a $48 billion growth of the giant Tengiz oilfield which will bring its output to around 1% of international crude supply.
The expansion is anticipated to reach complete capacity of 260,000 barrels each day by June, lifting total production at Tengiz to around 1 million barrels of oil comparable per day, Chevron's. head of worldwide exploration and production Clay Neff informed. Reuters.
The Tengiz field accounts for a large part of land-locked. Kazakhstan's oil production, which reached 1.9 million bpd in. 2023, the majority of which is exported via the CPC pipeline to. Russia's Black Sea port of Novorossiisk.
Kazakhstan is a member of the OPEC+ group of manufacturers which. has actually reduced supply recently. It was unclear how the. growth would impact the country's quotas.
Tengiz is among the world's inmost and most complex fields. due to high levels of sulphur and extreme weather conditions.
The growth has actually suffered hold-ups and huge cost overruns. considering that releasing in 2012. Investment was at the low end of $48. billion to $49 billion, Neff said, making it one of the world's. most pricey developments.
Chevron has a 50% stake in the Tengizchevroil joint venture. which it operates, with Exxon Mobil holding 25%, Kazakh. oil company KazMunayGas 20% and Russian oil manufacturer Lukoil. the staying 5%.
Tengizchevroil is anticipated to create $4 billion of complimentary. capital in 2025 and $5 billion next year at an average Brent. cost of $60 a barrel, Neff stated. Criteria Brent petroleum. is presently trading at around $80 a barrel.
What this project enables us to do is not only boost. production today but also extend the life of the field over. time, Neff told Reuters.
The expansion becomes part of Chevron's plans to increase its own. production by around 3% each year over the next 5 years along. with strong growth in the U.S. Permian shale basin.
(source: Reuters)