Latest News
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Kazakh agency reports that Rosatom will lead consortium for first nuclear power plant to be built in Kazakhstan
The atomic energy agency of Kazakhstan announced on Saturday that Rosatom, Russia's nuclear state corporation, has been selected to lead a consortium for the construction of the first nuclear plant in Kazakhstan. The state-owned China National Nuclear Corporation as well as French or South Korean companies also submitted proposals. Kazakh Atomic Energy Agency, which was established in March this year, has said that it has reviewed and evaluated various reactor technologies based on criteria such as nuclear plant safety, training of personnel, and other factors. It said that "the agency determined that the most advantageous and optimal proposals for construction of a Nuclear Power Plant in Kazakhstan came from the Russian Company Rosatom." "According to Rosatom's proposal, the work on attracting state-funded export financing from Russia has started." In November, Russian President Vladimir Putin met with Kazakhstani officials to discuss boosting energy and industrial ties. Kazakhstan exports the majority of its oil via Russia but is looking at alternatives. In an article published in the Kazakhstanskaya Pravda, Putin stated that Rosatom is "ready for new large-scale project". Kazakhstan, with a population of 20,000,000, voted to build its first nuclear plant in October. Some Kazakhs were concerned about the involvement of a neighbor that invaded another country, Ukraine, and criticized the plan. (Reporting and writing by Tamara Vaal, Lucy Papachristou and Guy Faulconbridge).
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Edda Wind Welcomes New CSOV to its Fleet
GONDAN Shipbuilders has delivered a newly built Commissioning Service Operations Vessel (CSOV) Austri Enabler to Norwegian shipowner Edda Wind.The Austri Enabler, designed by Norwegian company Salt Ship Design, is part of a new generation of vessels designed to mark a turning point in the offshore wind energy sector.Austri Enabler is the fourth and last vessel in a series of four sister vessels from Gondan and follows Nordri Enabler, Sudri Enabler and Vestri Enabler. It is also the eight vessel that Gondan has delivered to Edda Wind.The vessel has secured a 12-month contract, with options, and will start operations outside U.K. in the third quarter of 2025, Edda Wind said without revealing any additional details.Together with its sister ships, Austri Enabler has been developed with the aim of optimizing operations in offshore wind farms, acting as the main support vessel during the commissioning and maintenance of wind turbines at sea.With a length of 88 meters and a beam of 19.7 meters, the vessel is equipped with cutting-edge technology in both operational efficiency and sustainability.It can accommodate up to 120 people - 97 technicians and 23 crew members - and features the latest solutions in automation and technical assistance, including a 3D-compensated offshore crane, an active gangway with a reach of 30 meters, an integrated elevator with a capacity for 26 people, and a 21-meter-diameter helipad.The ship’s propulsion uses cycloidal propellers driven by permanent magnet motors, combined with liquid hydrogen carrier (LOHC)-ready technology, positioning it as a platform capable of achieving fully emission-free operations.
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As the Middle East erupts, investors choose oil and safe havens over stocks.
U.S. Investors sought refuge on Friday in safe-haven assets such as the dollar and gold after oil prices soared following Iran's retaliation against Israel's largest-ever military attack against the major producer of crude. Iran launches airstrikes against Israel After unprecedented Israeli strikes, some fear a regional conflagration. On Friday, explosions were heard in Jerusalem and Tel Aviv - the two largest cities of Israel. Israel had earlier destroyed Iran's vast underground nuclear facility at Natanz and killed top military leaders. Investors believe that the markets will likely survive the latest hostilities, unless Iranian oil installations are attacked or if other countries get involved in the conflict. Crude prices soared up to 14% due to fears of possible disruptions in oil shipments. Oil futures closed the day 7% higher. Jim Baird is the chief investment officer of Plante Moran Financial Advisors, Southfield, Michigan. Money manager says he expects "a little more flight to quality trade" if stocks continue to fall. This could be beneficial for gold and Treasuries. How long will it last? How intense will the battle be? Will it attract other parties? "From a large-scale economic perspective, it doesn't seem to make a material difference," he said. Gold prices in safe-havens rose by more than 1 percent, while Wall Street's major equity indices fell more than 1 percent. Oil prices were brought into sharp focus by the outbreak of war. Iran is one of the largest crude exporters in the world. It borders the Strait of Hormuz which is a major choke point for crude tankers and through which a fifth of the global crude consumption passes. Iran has threatened to close the Strait of Hormuz as a retaliation against Western pressure. Oil prices rose and investors looked for safe havens. U.S. government bonds yields increased on the bets higher energy prices would cause inflation. Brent crude oil, the benchmark for global crude oil prices, is still well below $80 per barrel, despite the recent spike. Irene Tunkel is the Chief U.S. Equity Strategy at BCA Research. She said that she doesn't see any long-term implications for U.S. markets unless oil prices rise above $100 per barrel. This would affect consumer spending. She said this was unlikely, unless the oil infrastructure is destroyed. Or "Iran closes the Strait of Hormuz in some way and (the conflict spills) out of Iran. And energy production is shifted to Iraq." The strategist noted that Friday's S&P 500 decline followed a rally from lows in April. Donald Trump, the U.S. president, said that Iran still had time to stop Israel's attacks by negotiating a deal with its nuclear program. Investors were concerned about how central banks might handle interest rates in the event that U.S. consumer costs rise as a result of Trump's tariffs. Jack Janasiewicz is a portfolio manager with Natixis Investment Managers, based in Boston. He said that the possibility of higher inflation due to rising oil prices was "less supportive" of U.S. Government bond prices. He did note that investors usually take geopolitical crisis in stride. "Historically, with these geopolitical issues, the market has a knee-jerk response but the long-term implications tend to fade. Janasiewicz said that history tells us we should look past some of these things. OIL PRICE RALLY Janasiewicz stated that the final gains in oil prices would depend on the length of the war and if U.S. supplies could be increased to cap prices, if there was a disruption in supply. Janasiewicz stated that "from a U.S. standpoint, it's a little more insulated" because domestic producers can certainly increase production. On Friday, the dollar index, the safe-haven asset that has been the focus of risk aversion in recent months, was up 0.5%. Fiona Cincotta, City Index's strategist, said that the dollar was returning to its traditional role as a safe haven. Investors warned that the market may not have been cautious enough despite Wall Street's selling off. James Athey, the manager of Marlborough Fixed Income Fund, said that investors could be tempted to return to riskier assets if tensions don't rise quickly. He said that "in general, the markets tend to pass over these types of events fairly quickly. But of course, therein lies a risk of complacency." He said, "The situation is really tense and fraught. Risk assets are still being priced to perfection."
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US Court extends the pause in Nippon Steel Case, seeking updates by June 20,
The U.S. Appeals Court on Friday extended a pause between Nippon Steel, the Trump Administration and other parties in the litigation over the Japanese steelmaker’s $14.9 billion offer for U.S. Steel. Nippon Steel & U.S. Steel are putting the final touches on an agreement to be signed with the Trump Administration. This is in order to alleviate national security concerns raised by the proposed tie-up announced in December 2023, but blocked by Joe Biden. This agreement would allow for the transaction to proceed. The D.C. Circuit stated that the litigation will be paused pending further orders from the court. The judges of the panel -- Patricia Millett (chair), Cornelia Pillard (co-chair) and J. Michelle Childs (member) -- have also instructed the parties to update the court by June 20, about any further legal proceedings. This filing may ask the court to put the case on hold or to ask the judges to create a new timetable. (Reporting and editing by Diane Craft, Alistair Bell and Alexandra Alper)
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Holiday schedule for US economic and other data
The release of major economic, energy, and commodity reports from Washington will be affected by the Juneteenth federal holiday, which falls on Thursday, 19th June. The schedule is below. The times are in EDT/GMT. Some Treasury announcements may be subject to change. Monday, June 16 The U.S. Department of Agriculture releases weekly U.S. Export Inspections for Grains, Oilseeds and 1100/1500 Treasury Department's Weekly Sale of 3- and 6-Month Bills, 1130/1530 National Oilseed Processors Association releases monthly U.S. Soybean Crush, 1200/1600 Treasury Department offers 20-year Bonds, 1300/1700 USDA releases weekly Crop Progress 1600/2000 Tuesday, June 17 Commerce Department releases Retail Sales for the month of May, 830/1230 Labor Department releases Import and export prices for May, 830/1230 Redbook releases weekly retail sales index 0855/1255 Federal Open Market Committee starts two-day meeting to discuss interest rate policy. Start time TBA Federal Reserve releases Industrial Production for May 0915/1315 Commerce Department releases Business Inventories April 1000/1400 Treasury Department announces weekly sale of 4-, 8, and 17-week Bills, 1100/1500 Treasury Department sells 6-week bills every week, 1130/1530 Treasury Department sells 5-year Treasury Inflation Protected Securities, 1300/1700 American Petroleum Institute releases weekly national petroleum reports, 1630/2030 Wednesday, June 18, Mortgage Bankers Association releases weekly Mortgage Application Survey, 0700/1100 Commerce Department Issues Housing Starts For May, 830/1230 Labor Department releases weekly jobless claims, 0830/1230. Note: Issued one day before due to holiday Energy Information Administration (EIA), Weekly Petroleum Stocks and Output Data, 1030/1430 Treasury Department announces weekly 3-, 6-, and 6-week bills; sales of 2-year floating-rate notes; 2- and 5-year notes; and 2-, 7-, and 10-year notes. Note: Due to the holiday, Treasury Department announces 3- and 6-month bills and 6-week bill sales one day before. Treasury Department will hold weekly sales for 4- and 8 week bills, 17-week bill, 1130/1530. Note: Due to the holiday, 4- and 8 week bills are sold one day before. Freddie Mac issues weekly U.S. mortgage rates, 1200/1600. Note: Rates are published one day before the holiday. EIA releases weekly U.S. Underground Natural Gas Stocks, 1200/1600. Note: Issued one day ahead due to time change. Federal Open Market Committee Issues Statement on Interest Rate Policy, 1400/1800 Treasury Department Issues Treasury International Capital for April 1600/2000 Thursday, June 19 Juneteenth holiday. Closed federal government offices, Federal Reserve and International Monetary Fund. Stock and bond markets. Friday, June 20 USDA releases weekly export sales, 0830/1230. Due to the holiday, this week's export sales are delayed. Conference Board releases Leading Indicators for the month of May, 1000/1400 USDA Cattle on Feed Monthly, 1500/1900 Federal Reserve releases Weekly Balance Sheet, 1630/2030. Note: this is a delayed release from Thursday because of the holiday.
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Diplomats claim that the UN's nuclear watchdog board will meet to discuss Israel's Iran strike.
Diplomats confirmed that the Board of Governors of the U.N. Nuclear Watchdog will hold an extraordinary meeting on Monday in order to discuss Israel's attacks on Iran. At least one country requested it at the regular quarterly session of this body held on Friday. A meeting can be called by any country that is a member of the International Atomic Energy Agency's (IAEA) board. Diplomats reported that Iran, a member of the board but not a member, had requested a meeting. It was backed by Russia, China, and Venezuela. Diplomats differed on which board member made the initial request. Before any announcement was made about the emergency meeting, diplomats held a closed-door discussion on Friday. The IAEA Israel had targeted Iran's Natanz nucleus site earlier in the day, including an underground uranium-enrichment plant as well as a smaller pilot plant above ground. The IAEA's highest policy-making body said that there was no indication of any effort to push for a decision or other action by the 35 nation board on Monday. (Reporting and editing by Joe Bavier, Gareth Jones and Francois Murphy)
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Investors reduce risk following Israel's attack on Iran, causing copper and other metals to fall.
The price of copper, and other industrial metals, fell on Friday. This was due to a stronger dollar. Investors sold their risky assets following the attack by Israel on Iran. The benchmark three-month copper price on the London Metal Exchange fell 0.5% by 1600 GMT to $9,653 per metric ton after hitting $9,532, its lowest since June 3. After Israel launched an extensive military strike against Iran, the dollar index rose and stock markets around the world fell. The dollar is stronger, making commodities priced in U.S. dollars more expensive to buyers of other currencies. Alastair Mudro, senior base-metals strategist at Marex, said that the market has de-risked copper and aluminum. The current events make it unlikely that we will run away from the topside. "Those who are looking for dips will be pleased by the declines." LME copper was up by a fifth since April 7, when the price reached its lowest level since November 2023. This rebound continued until this week. U.S. Comex Copper Futures fell 0.3% to $4.82 a pound. This brings the premium of Comex copper over LME copper up to $976 a tonne. Munro stated that most of the selling came from Commodity Trade Advisor investment funds which are driven largely by computer programs. Chinese participants also emerged to buy at lows. The most traded aluminium contract at the Shanghai Futures Exchange (SHFE), which is the largest metal exchange in China, gained 0.4% to 20,425 yuan/metric ton for the third consecutive day. This outperformed other SHFE Metals. Analysts from a Hangzhou futures company stated that "aluminium has performed rather well compared to other metals recently, as the demand from the local market has been robust. SHFE stocks, however, have been falling." Aluminium stocks In SHFE warehouses, the number of tons dropped to 110,001 in the week ending June 13 - the lowest level since February 2024 - and the largest drop since late March, when it fell by 54%. Other metals include LME aluminium, which fell by 0.5% to 2,505 per ton. Lead also dropped 0.3% to 1,990, and zinc, which fell 0.6% to 2,627, after falling to its lowest level since May 1. Nickel increased 0.3%, to $15.185. Tin rose 0.3%, to $32,755. Click here to see the latest news in metals.
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Newspaper reports that Nippon Steel's exec said the firm needed freedom to manage U.S. Steel.
The shares of U.S. Steel dropped after a Nippon Steel executive said to the Japanese Nikkei that the planned takeover required "a certain degree of management flexibility" in order to proceed, even though sources claimed a deal had been reached with the U.S. Government to approve the tie-up. The executive told the newspaper that without a certain degree of management autonomy, it might not be possible for the U.S. Government to come to an agreement. This sent shares of the iconic U.S. Steelmaker down by 4%. The comments seemed to be a response to remarks made on Thursday by President Donald Trump who claimed that he controlled U.S. Steel through a "golden shares" which gave the American public a 51% share in the company. Two of the three said that the deal could be completed as early as Friday. Nippon Steel U.S. Steel, and the White House have not responded to immediate requests for comments. Nippon Steel's $14.9 billion offer, announced in December 2023 by Nippon Steel, was met with opposition right from the beginning. Former President Joe Biden, along with Donald Trump, both asserted that U.S. Steel must remain American-owned in order to woo Pennsylvania voters before the 2016 presidential election. Biden blocked this deal in January, citing national security concerns. This led to lawsuits from the companies who claimed that the review of their national security was biased. The Biden White House denied the claim. Steel companies saw an opportunity with the Trump administration. The Trump administration began on January 20, and in April, opened a 45-day review of national security for the proposed merger. Trump's public remarks, which ranged from welcoming the Japanese company to "invest" in U.S. Steel, to floating a minority stake of Nippon Steel sparked confusion. Trump said at a rally on May 30 in Pennsylvania that Nippon Steel was a "great" partner for U.S. Steel. He later told reporters that the deal was still subject to his approval and he had not yet decided whether Nippon Steel would be allowed to acquire ownership. Nippon Steel, the Trump Administration and a U.S. court of appeals requested on June 5, an extension of eight days to a pause to litigation. This was to give the parties more time to negotiate a settlement for the Japanese company. The pause ends Friday but can be extended. The current contract between Nippon Steel & U.S. Steel expires on June 18, but the companies could agree to delay that date. Reporting by Alexandra Alper, David Gaffen, in New York and Nathan Gomes, in Bengaluru. Editing by Anil d'Silva.
IEA is ready to tap into emergency oil reserves, but OPEC does not see the need
The West's energy watchdog announced on Friday that it is ready to release its oil reserves if the market experiences shortages as a result of Israel's attack against Iran. This statement was criticized by OPEC, which claimed the statement only created fear on the market.
In recent years, the Organization of Petroleum Exporting Countries (OPEC), which represents some of the top oil producers in the world, and the International Energy Agency (IEA), representing oil consumers, have clashed over global oil demand trajectory and the pace of the transition to a clean energy economy.
Fatih Birol, the IEA head, said that although the oil market is well-supplied, the agency will be ready to respond if necessary. He added that the agency’s oil security system holds 1.2 billion barrels in strategic and emergency oil reserves.
OPEC Secretary-General Haitham Al Ghais criticized Birol's statements, saying that they "raise false alarms and project a sense fear on the market by repeating the need to possibly use oil emergency stock".
He claimed that there was no change in the dynamics of the market or supply to "require unnecessary measures".
The oil prices rose sharply on Friday after Israel launched a series of attacks across Iran, claiming it had destroyed nuclear facilities and missile factories as well as killed a number of military commanders. This could be the beginning of a long-term operation to stop Tehran from building an atomic bomb.
The oil prices rose 7%, the biggest daily increase since 2022, when Russia invaded Ukraine.
After the Russian invasion of Ukraine in early 2022, the United States and its allies in coordination with IEA tapped the last emergency oil reserves. This decision was heavily criticized by OPEC at the time.
Market participants are concerned that the situation could escalate, resulting in damage to Iran's or its neighbours' energy infrastructure, and a possible blockade of Strait of Hormuz.
In September 2019, Iran supported Houthi militias launched a drone strike on Saudi Aramco’s Abqaiq Oil Processing Plant, knocking out 5.7 million barrels per day of Saudi oil production and sending the market into frenzy.
The diplomatic ties between Iran and its Gulf neighbours, Saudi Arabia and the United Arab Emirates, have significantly improved since the Abqaiq attack. However there are still concerns about a possible repeat.
Helima Croft, an analyst at RBC Capital Markets, said that following the Israeli attack, "oil prices have already spiked...and its ultimate landing will depend on whether Iran revives their 2019 playbook by targeting tankers, pipes, and other key energy facilities in the region."
(source: Reuters)