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Brazil's Brava will drill two more wells in Atlanta by the end of this year
According to Decio Oddone, the Chief Executive of Brazilian energy company Brava Energia, the company will drill two additional wells in the Atlanta field located in the Santos Basin by the end the year. Oddone, speaking at the OTC Conference in Houston, said that the two wells will be producing by the middle of 2027. This brings the total to eight for the Atlanta field. The executive said that production is expected to stay at 45,000 barrels per days (bpd) at this field, and that the two newly-drilled wells will offset the declining production of other wells. We will connect two wells in June. He said that at the end the year we would start drilling for two additional wells, which we would connect by the end 2026. Oddone stated that Atlanta's oil is sold to Singapore for use as a maritime fuel, and also as a power source. It is regarded as a low-sulfur heavy oil. In recent months, the company announced deals to supply Atlanta's oil. Trafigura Shell. Brava, which was formed by the merger of 3R Petroleum with Enauta in 2012, began production at Atlanta, Georgia, in December. In February, It said Atlanta produced around 26,000 bpd, and that its floating vessel could handle up to 50,000 bpd. Reporting by Marianna Parra in Houston, Fabio Teixeira's writing; editing by Kylie Madry & Gabriel Araujo
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Ford withdraws its guidance and warns that Trump's tariffs will cost it $1.5 billion
Ford Motors suspended its annual guidance Monday due to uncertainty surrounding U.S. president Donald Trump's new tariffs. The company said the levies could cost it about $1.5 billion before taxes and interest in adjusted earnings. The Dearborn, Michigan, automaker forecasted earnings before taxes, interest, and other expenses of between $7.0 billion and $8.5 billion by 2025. This forecast does not include tariffs. Ford's Chief Financial Officer Sherry house said that the company is on track to achieve this guidance, even if tariffs are not a factor. House stated, "We focus on managing what we can control." Ford executives have said that they are suspending their outlook until they know more about the impact of retaliatory duties and how consumers will react to any price hikes. Ford's earnings-per-share fell to 14 cents during the first quarter. This was a far cry from the LSEG analysts estimate of 2 cents, but still a significant drop compared to 49 cents a full year ago. Ford executives claimed that cost and quality improvements allowed the company to beat expectations. The automaker warned earlier this year that production disruptions due to new product launches in several plants would affect the first-quarter results. The net income dropped sharply from $1.3 billion to $471 millions compared with a year ago. Ford's quarterly revenue dropped 5%, to $40.7 billion. This was better than the expected $36 billion. The earnings were boosted as consumers bought vehicles in a rush, fearing that tariffs could lead to a price increase. Ford was among a handful of automakers who offered incentives to gain market share during the buying frenzy. Ford estimated that tariffs will add $2.5 billion to its costs for the entire year. This is mainly due to expenses incurred from importing cars from Mexico and China. Ford has suspended its automotive exports to China but continues to import vehicles from China like the Lincoln Nautilus. Ford has said that it was able to save about $1 billion by taking various steps, such as transporting cars from Mexico to Canada via bond carriers so they would not be subject to U.S. Tariffs, House stated. According to some estimates, Trump's 25% tariffs for automotive imports will cost automakers in the U.S. more than $100 billion this year. Last month, the president granted a reprieve on levies placed upon automotive parts. This allowed auto companies to receive credits of up to 15% of value of domestically assembled vehicles, and relief from other duties. This month, GM reduced its profit forecast. It said that tariffs would cost it as much as $5 billion. Investors prefer Ford to GM because Ford sells more cars in the U.S. and is assembled there, compared to GM. Stellantis, a Jeep manufacturer, has also suspended its forecasts due to the uncertainty surrounding tariffs. Ford's electric vehicle sales are suffering significant losses, on top of the headwinds caused by Trump's trade policies. This year, the automaker projected losses up to $5.5 Billion on its EV operations and software. The automaker has already suffered losses of more than $10 billion since 2023. Exclusively reported, Ford has ended a costly effort to build an electrical architecture of the next generation for its cars called FNV4 after delays and rising costs slowed its development. Ford Pro, Ford's profitable segment of commercial vehicles, reported first-quarter revenues of $15,2 billion, down by 16% compared to a year earlier. Ford's gasoline engine division reported quarterly revenue of $11 billion. Model e, which includes EV and software efforts, had a revenue of $1.2billion for the quarter. Reporting by Nora Eckert, Nathan Gomes and David Gregorio.
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EIA: California fuel prices are rising due to supply issues and compliance costs
The U.S. Energy Information Administration reported on Monday that California drivers pay more at the pump due to issues with supply, environmental compliance, fuel requirements and high state taxes. The latest data shows that in March, environmental programs like Cap-and-Trade, Low Carbon Fuel Standard and Cap-and-Trade added $0.54 per gallon to the cost of gasoline. EIA reported that California consumers pay $0.90 per gallon, or the highest amount in the nation, in taxes and fees, as of March. Why it's important California is the biggest gasoline market in the United States, but many fuelmakers have closed less profitable stations citing regulatory issues and market dynamics. Since 2008, six plants have closed. Two of them have been converted to produce renewable fuels. As refinery closings increase pressure on fuel supplies, the state is likely to see higher gasoline prices. This will force it to import more fuel from countries such as India and South Korea. The EIA reported that the retail prices of regular grade gasoline in New York often exceed the average national price by more than one dollar per gallon. CONTEXT California Governor Gavin Newsom has signed ABX2-1 into law, a measure designed to avoid fuel shortages within the state. It gives regulators greater control over refiners' inventory levels. Phillips 66 announced shortly after that it would shut down its massive oil refinery located in Los Angeles, California by the fourth quarter 2025. Valero Energy, a major oil refinery in the San Francisco area, announced last month that it would cease operations next year. Reporting by Nicole Jao, New York; editing by Ni Williams
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Oil prices drop while bond yields increase and global stock indexes are near flat
MSCI's global equity index fell slightly on Monday, after a run of gains. Oil prices dropped on the prospect that production would increase and U.S. bonds yields increased after economic data. This was the beginning of a busy central bank week. The yields on U.S. Treasuries rose following data showing that the U.S. Services sector growth in April had been boosted by higher orders. The prices businesses paid for goods and services have reached their highest levels in over two years. This indicates that tariffs are contributing to the inflationary pressures. The gold price rose, due to a weaker dollar and demand for safe havens ahead of the U.S. Federal Reserve’s rate policy announcement later this week. After nine consecutive days of gains, MSCI's global stock index fell 0.67 points or 0.08% to 848.58. Public holidays in Britain, China, and Japan affected the overall trading. The pan-European STOXX 600 rose and closed earlier up 0.16%. Wall Street saw all three major indices gain some ground but the S&P 500, after nine days of gains, was headed for its first drop. Sahak Manuelian is the managing director and head of equity trading for Wedbush Securities. He said that trading volumes were low. Manuelian observed that while the trading volume was low, equity prices gained some ground as the session progressed. The stock market opened lower due to renewed uncertainty over U.S. president Trump's policies on trade. He announced a tariff of 100% on films produced outside the U.S., but provided little clarity about how the levies will be implemented. Adam Sarhan of 50 Park Investments, Orlando, Florida, said: "Markets love certainty, and investors woke this morning to more uncertainty about what could happen with tariffs." Shares of video streaming services such as Netflix, Paramount Global and Netflix fell after the news about movie tariffs. Sarhan stated that investors are worried more industries may be targeted "if they wake up and see another 100% or a 200% tax on some other important industry to our economy." Trump said that on Sunday, the United States met with many countries including China about trade, and that his priority was to get a fair deal with China. In recent days, optimism about a possible de-escalation in trade tensions between China and the U.S. has helped boost markets. European shares are trading at levels just below those seen before Trump’s major tariff announcement on April 2, which roiled the markets. By 3:11 p.m. By 3:11 p.m. ET (1911 GMT), Dow Jones Industrial Average rose by 31.67 points or 0.08% to 41,349.10. The S&P 500 dropped 16.27 points or 0.29% to 5,670.40, and the Nasdaq Composite declined 64.77 points or 0.36% to 17,912.96. Oil prices have fallen more than $1 a barrel on the energy market after OPEC+ announced over the weekend that they would increase oil production. This has caused investor concern about more oil supply at a time when demand outlooks are uncertain. Brent crude ended the day at $60.23 a barrel, down by $1.06 (1.73%) or $1.06 per barrel. The Taiwan dollar has seen a second session of strong gains against the U.S. Dollar, which reached a low of 28,815 and last traded at 28.990. The rise of Taiwan's currency has sparked speculation about a revaluation by Asian currencies in order to gain U.S. concessions on trade. The dollar index fell by 0.1%, to 99.77, measuring the greenback in relation to a basket of major currency including the yen, the euro and other major currencies. The dollar fell 0.79% against the Japanese yen to 143.79. The yield on the benchmark 10-year U.S. Treasury notes increased 1.7 basis points from Friday's 4.32% to 4.339%. The 30-year bond rate rose by 2.8 basis points from 4.795% to 4.8244%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve (Federal Reserve), fell by 0.1 basis points, to 3.839% from 3.84% at Friday's close. Spot gold increased by 2.63%, to $3,325.49 per ounce. U.S. Gold Futures increased 2.42% to an ounce of $3,310.10.
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Peru stops mining in the north after 13 miners are killed
Dina Boluarte, the president of Peru, announced on Monday that mining in Pataz, a district in northern Peru, would be suspended for 30 day after illegal miners kidnapped 13 gold workers and killed them. The Peruvian government plans to establish a military base in the area and impose a curfew from 6 pm to 6 am. Boluarte stated that "the armed forces will be taking control of the area in which Poderosa operates." Poderosa miner said on Sunday that police had recovered the bodies of thirteen workers who were abducted last month by a local mining firm. Peru is the third largest copper producer in the world, but its deposits are mostly located in the south. In the north, gold and silver is mined. Poderosa claimed that criminal gangs have killed nearly 40 people in Pataz, including contractors and artisanal miners. Illegal miners have taken control of several areas controlled by Poderosa since 2020. Due to the attacks against Poderosa, there was already a heavy police and army presence in the area. Morge Montoro said that the 30-day pause may be extended. (Reporting and writing by Marco Aquino, Kylie Madry, Editing by Gabriel Araujo & Alexander Villegas).
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Apple's first bond issue in two years is the main story of the busy primary
Apple plans to offer four tranches of bonds on Monday. It will be its first bond offering in two years. Proceeds from the sale will be used for repurchasing stock and paying off outstanding debt, as well as other purposes. CreditSights analysts believe that the offering will raise between $5 and $6 billion. Apple's debt is $8 billion due in May to November. A total of approximately $35 billion in new debt is expected to be issued by eight other investment grade primary market issuers. Comcast, DTE Electric Co. and General Motors are among the issuers. Credit spreads or the premium that companies pay for Treasuries have rebounded since U.S. president Donald Trump announced the tariffs. The uncertainty surrounding Trump's policies threw many issuers off their plans. They rush to the market before the Federal Reserve meeting on Wednesday in order to avoid the volatility that usually follows comments made by the Fed chairman after monthly policymaking meetings. Analysts said that demand is expected to be strong, as investors seek safety by buying higher-rated bonds. Dan Krieter of BMO Capital Markets, director of fixed-income strategy, said that the issuance rush followed six weeks of consecutive outflows of investment-grade funds. This is the longest streak of outflows since November 2022. Natalie Trevithick is the head of investment-grade credit strategy for Los Angeles-based asset management firm Payden & Rygel. Latest data show that the average spread on investment-grade bonds was 106 basis point Friday. This is three basis points less than the previous day. "Today's issuance is made up of a large number of names of excellent quality, and a great deal of it is simply a regularly scheduled issuance." Trevithick said that there were probably a few deals that were pushed back to April. Payden & Rygel anticipates 12 billion to 13 billion dollars of supply for Monday with a demand of approximately $58 billion from investors, she said.
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Commonwealth LNG signs 20 year supply agreement with major Asian buyer
Commonwealth LNG, a U.S.-based energy company, announced on Monday that it had signed a Sale and Purchase Agreement (SPA) with a major Asian oil and gas company. Commonwealth announced that the buyer would purchase 1 million tonnes of liquefied gas per year (MTPA) from Commonwealth's proposed 9.5-MTPA Cameron, Louisiana facility. Commonwealth did not identify the buyer, but stated that it is one of world's largest energy companies with oil and natural gas operations and one of the biggest global suppliers of LNG. Last week it was reported that Malaysian state oil and gas company Petroliam Nasional Berhad (known as Petronas) was in discussions with Commonwealth to purchase LNG. This offtake agreement is an important milestone as Commonwealth works towards a final investment this year, and the first offtake in 2029. Ben Dell, managing director of energy investment company Kimmeridge and Commonwealth chairman said: Commonwealth expects that the first phase of development will generate more than $11 Billion in investment for Louisiana, and an estimated $3.5 Billion in export revenue. Commonwealth stated that the project will employ approximately 2,000 workers during peak construction, and about 275 when the facility starts operations in late 2029. Commonwealth is owned Kimmeridge Kimmeridge SoTex Holdco. Commonwealth stated that the SPA will only become effective once all customary conditions are met, including a final investment decision affirmative on the project.
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Enea's preliminary Q1 profit increases 13% due to mining and distribution gains
Polish utility Enea has reported an increase in preliminary net profit for the first quarter, thanks to stronger performances from its mining and distribution segment. The company reported on Monday that the net profit for the quarter increased by 13%, to 1.05 billion Zlotys ($278.40 millions), compared with the same period a year ago. The polled analysts expected a quarterly net profit of 1.02 billion zlotys. The EBITDA (earnings before taxes, depreciation and amortization) increased to 1.94 billion Zlotys. Mining contributed 389 million Zlotys while the distribution segment contributed 744 million Zlotys. Enea stated that higher mining EBITDA was due to higher revenues, despite lower average coal prices, despite higher coal volumes. Enea, Poland’s third largest power utility by capitalization, faces pressure due to falling profits in its coal-fired generation fleet as renewables take a greater share of the country's energy mix. According to the energy policy think-tank Forum Energii, Poland will reduce its reliance upon coal. In 2024, coal is expected to account for 57.1% or its electricity production. The utility will release its first-quarter full results on 20 May. ($1 = 3,7715 zlotys). (Reporting and editing by Tomaszjanowski)
Investors assess Trump's comments about Fed chief as stocks jump and dollar inch up
The dollar edged up on Tuesday, even as investors assessed U.S. president Donald Trump's criticisms of Federal Reserve Chair Janet Yellen.
The yields on U.S. Treasury Long-Term Bonds fell after rising on Monday. Investors were also closely watching the first-quarter results of U.S. firms. The shares of 3M Co, an industrial conglomerate, rose 8% following the company's first-quarter earnings beating expectations. However, it also noted that tariffs would likely affect its 2025 profits. Bloomberg reported that U.S. Treasury secretary Scott Bessent said that a tariff standoff between the United States and China is unsustainable. He expects that the situation will de-escalate. Trump intensified his criticism of Fed chair Jerome Powell, calling him a'major loser' in a Monday social media post. This raised concerns over Trump’s influence on the central bank, and increased concerns about U.S. financial stability.
Investors are concerned that the White House may try to replace Powell by someone who will lower rates. Trump stated last week that he believed Powell would leave his position if Trump asked him to, despite Powell's own statement. Although it is not clear whether Trump has the power to fire Powell. However, lawsuits filed by Trump over other firings are being monitored as possible proxy.
Stocks are down overall, but this is not a "fire sale" where you should get rid of all your stocks. Oliver Pursche is senior vice president and adviser at Wealthspire Advisors, Westport, Connecticut.
All of the soft data (economic data) are declining, but the hard data continue to be strong. Investors are struggling with this, he said.
Investor confidence is already shaken by Trump’s constant back and forth announcements about tariffs. They are worried that this could cause a severe disruption to world trade, as well as hurting the economy. The International Monetary Fund slashed their growth forecasts on Tuesday for the United States and China, citing U.S. Tariffs that are now at 100-year levels.
The Dow Jones Industrial Average rose by 882.96, or 2.32 %, to 39,053.37. The S&P 500 gained 118.58, or 2.30 %, to 5,279.14. And the Nasdaq Composite gained 425.76, or 2.58%, at 16,296.66.
Tesla shares, which are due to announce quarterly results after closing bell, have risen by 5.8%. Apple and other mega-caps were also up, with Apple gaining 3.6%.
Coinbase Global shares rose 8.3%, as bitcoin continued its recent gains. Bitcoin's last gain was 4.07%, at $90 887 19.
The MSCI index of global stocks rose by 11.73 points or 1.50% to 794.84. The pan-European STOXX 600 ended the day up 0.25%.
The dollar has recovered slightly, but is still near its multi-year lows against the euro and Swiss franc.
The dollar index (which measures the greenback versus a basket including the yen, the euro and others) rose by 0.49%, to 98.83. However, the euro fell 0.68%, to $1.1435.
The dollar gained 0.28% against the Japanese yen to reach 141.24. The dollar and yen had earlier reached a seven-month peak.
The dollar gained 1.01% against the Swiss Franc, a safe-haven currency. Analysts noted that the dollar is still fragile, despite concerns about the U.S. tariffs.
Gold reached a new all-time record of $3,500.05 in the morning, due to the recent weakness of the dollar and the demand for safe havens. Gold spot was down last by 0.83%, at $3396.43 per ounce. Oil prices rose as a result of new U.S. Sanctions against Iran, and rising stock market. U.S. crude oil rose by 2.85% to $64.88 per barrel. Brent increased to $67.77 a barrel, an increase of 2.28%.
The yield on the benchmark 10-year U.S. notes dropped 1.4 basis points from late Monday to 4.391%.
(source: Reuters)