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Rem Offshore's Zero-Emission Subsea Construction Vessel Hits Water (Video)
Norwegian shipowner Rem Offshore has launched the hull for its dual-fuel methanol energy subsea construction vessel (ESCV) Rem Pioneer in Vietnam, months ahead of schedule.The launch ceremony was held on June 27 at Song Cam shipyard in Vietnam.According to the company, hull construction will continue for a while, and outfitting will begin in the autumn at Myklebust Verft.Rem Pioneer ESCV will be delivered in 2026 and will be the first of its kind that can perform heavy construction work in both offshore wind and subsea with net zero emissions.The newbuild uses a number of solutions where energy consumption is almost halved compared to comparable tonnage in today’s market, as well as meeting future requirements for zero emissions from end to end, according to the company.The vessel will be equipped with dual-fuel methanol engines in combination with battery packs.All offshore lifting equipment, including the 250 T crane, is electric and regenerates power to the batteries.The working deck is over 1,400 m2, and it is also prepared for the installation of an offshore gangway for use in offshore wind.Rem Pioneer will be able to accommodates 120 persons.
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Iron ore prices continue to rise despite falling shipments, but China data is mixed and may limit gains
Iron ore prices rose for the second session in a row on Wednesday. This was aided largely by a drop in shipments, and a resilient demand. However, mixed factory data from China, whose top consumer, curbed gains. As of 0250 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.68% higher. It was worth 736.5 Yuan ($102.57). As of 0240 GMT, the benchmark August iron ore traded on Singapore Exchange was up by 0.34% to $96.1 per ton. Everbright Futures analysts said that iron ore shipments have dropped after the ramp-up at the end of last quarter. Galaxy Futures analysts noted that the ore price will be supported by the supply side. Galaxy's analysts said that despite a slight decline, hot metal production remained at a high level. Steel consumption in the manufacturing sector is also strong. Iron ore demand is usually gauged by the hot metal production. The gains, however, were modest. Data showed that China's consumer price index rose in June for the first five months. Meanwhile, its producer deflation reached its highest level in nearly two years. In the second largest economy in the world, uncertainty about a trade war around the globe and a subdued domestic demand are still causing policymakers to be under pressure to introduce more support measures. Coking coal and coke, which are used to make steel, have gained 1.55% and 1.06 % respectively. The benchmarks for steel on the Shanghai Futures Exchange have been moving in a narrow range. The price of rebar was 0.07% higher. Hot-rolled coil, stainless steel and wire rod were all flat. ($1 = 7,1802 Chinese Yuan) (Reporting and editing by Harikrishnan Nair; Amy Lv, Lewis Jackson)
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Gold nears a one-week low amid firmer US dollar and yields
The gold price hovered near its lowest level in over a week on Wednesday, under pressure due to a stronger U.S. Dollar and rising Treasury yields. Meanwhile, fresh tariff threats by U.S. president Donald Trump unnerved the markets. As of 0234 GMT, spot gold remained at $3.301.50 an ounce. U.S. Gold Futures dropped 0.2% to $3310.10. Trump announced that he would impose tariffs of 50% on imported copper, and levy the long-promised levies against semiconductors and pharmaceuticals. Trump reiterated on Tuesday his threat to impose 10% tariffs on BRICS countries. A day earlier, he had notified 14 countries including Japan and South Korea of the tariff increases that would take effect August 1. The U.S. Dollar Index steadied on Wednesday after reaching a new two-week-high late Tuesday. Meanwhile, the yield of benchmark 10-year U.S. Treasury Notes hovered around a three week high. Ilya Spirak, global macro head at Tastylive said: "Gold prices have held up well against the backdrop of rising yields as well as a stronger dollar. Its ability to resist pressure indicates underlying strength and bullish bias." A higher yield increases the cost of non-yielding gold, while a weaker US dollar makes it more affordable to holders of other currencies. Investors are closely examining the minutes of the latest U.S. Federal Reserve meeting, which is due later today, to look for any hints about possible interest rate reductions, despite the central bank’s wait-and see approach. Spivak stated that "it's been a quiet week in terms of economic data. However, the reaction of prices to the minutes from the June FOMC meeting could help determine where we stand on this debate between Fed and markets." The New York Fed's most recent survey showed that Americans' expectations for inflation remained unchanged. One-year inflation was estimated at 3% in the latest survey, down from the 3.2% of May. Three- and five year inflation expectations were also maintained at 3% and 2,6% respectively. Spot silver dropped 0.5% to $36.58 an ounce. Platinum was down 0.8% to $1,348.78, and palladium fell 0.4%, falling from $1,106.29.
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As traders consider tariffs, the dollar is firmer and Asian stocks are mixed.
The dollar was trading at a two-and-a-half-week high against major peers on Tuesday, while copper reached a new all-time high overnight after U.S. president Donald Trump expanded his global trade conflict by threatening to impose a 50% tariff. Trump said that levies would be imposed on pharmaceuticals and semiconductors in the near future, which weighed on Wall Street Tuesday. Futures indicate further weakness on Wednesday. Stock markets in Asia-Pacific were mixed as investors digested Trump’s latest shifting trade salvos. Japan and South Korea, two of the largest U.S. trading partner countries in Asia-Pacific, face a deadline on August 1, to either reach a deal with Trump or face new tariffs. Trump has given mixed signals about how flexible he is regarding this date. Trump's Monday comment that he was "firm but not 100%" confirmed the belief among some markets that deadlines were a negotiation tactic the U.S. President would eventually back away from. Trump's stance appeared to be hardened on Tuesday when he said, "No extensions will ever be granted." Nikkei, the Japanese stock index, fell 0.2% after a small gain. Australia's index of stocks fell by 0.4% and Hong Kong's Hang Seng dropped 0.9%. The KOSPI in South Korea rose 0.5%, while mainland Chinese blue-chips gained 0.2%. U.S. S&P futures eased by 0.1% following a loss of 0.1% for the cash index Tuesday, which extended the 0.8% decline that began the week. The delay of the imposition of tariffs against some of the U.S. major trading partners until August 1st has both pushed the can down the road, and reinforced the notion that higher tariff rates were a negotiation ploy," Kyle Rodda wrote in a Capital.com note. "As a consequence, the markets are left hanging and waiting for a more powerful catalyst to drive the move." Trump said that the trade talks with China and the European Union have been good, but he also added that he was only a few days away from sending the EU a tariff letter. Since Trump's announcement of reciprocal tariffs on April 2, "Liberation Day", the markets have been roiled. Washington and China reached an agreement in June on a framework for tariff rates. Metals, Currency U.S. Copper Futures have risen by over 10%, reaching a new record high, after Trump threatened to introduce new duties on this metal, which is essential for electric vehicles, military equipment, the power grid, and many consumer products. These duties would be added to those already in place on steel, aluminum and automobile imports. Copper futures in London, Shanghai and other markets fell on Wednesday as traders might not have enough time to ship to the United States after Trump's sudden tariff announcement. Trump has also threatened to impose 200% tariffs for drug imports. He said that the delay could be up to a year. The U.S. Dollar continued to gain strength on Wednesday and reached its highest level since June 20, at 147.02 Japanese Yuen. The dollar index (which measures the currency's value against the yen, and five other major competitors) edged up at 97.573 after reaching its highest level since June 25, Tuesday, when it was 97.837. The dollar was unchanged at $1.1720 and the euro at $1.1720. Sterling was also flat at $1.3585. After a more than 1% decline on Tuesday, gold found a bottom at $3,301 an ounce. The oil prices have retreated from their two-week highs of Tuesday. Brent crude futures fell 20 cents, to $69.95 per barrel. U.S. West Texas Intermediate Crude dropped 21 cents, to $68.12 per barrel.
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Copper prices fall after Trump announces steep import tariffs of 50%
The London Metal Exchange (LME) and Shanghai Futures Exchange (SFE) saw a drop in copper prices on Wednesday. Traders may have not had enough time to send much to the United States after Trump's announcement on Tuesday of a 50% tariff on imported copper. The LME's three-month copper fell by 0.57%, to $9,735 a metric ton, at 0109 GMT. On the SHFE, the most traded copper contract dropped by 0.49%, to 79.090 yuan per ton. U.S. President Donald Trump announced he would announce a 50% duty on copper on February 2, hoping to boost U.S. manufacturing of a critical metal for electric vehicles, military equipment, power grids, and many consumer products. U.S. Comex Copper futures then jumped over 12%, reaching a new record high. U.S. commerce secretary Howard Lutnick stated that the tariffs on copper would be likely implemented by the end or August 1st. A metal analyst in Beijing from a futures firm said: "The announcement was like a thunderous boom in the middle night. It came out very suddenly, and the 50% tariff was much higher than expected." Analysts expect that the COMEX/LME premium will continue to rise, possibly to $3,000 per ton in the next few days to reflect the tariff of 50%. However, the window for shipment to the U.S.A. could be extremely tight if traders rush to ship copper there. The analyst in Beijing said that the current pressure on LME and SHFE could result in a higher premium through higher COMEX or lower LME prices. LME nickel dropped 0.18% at $15,015 per ton. Lead fell 0.17% at $2,053, tin rose 0.31%, to $33,500. Zinc increased 0.29% to $2728.5. Aluminium edged up 0.23% to $2592. SHFE nickel dropped 1.04% to an average of 119,340 Yuan per ton. Lead rose 0.85% to 17,260 Yuan. Zinc increased 0.52% at 22,120 Yuan. Aluminium increased 0.22% at 20,540 Yuan. Tin was up 0.2%, to 264 780 Yuan. Click or to see the latest news in metals, and other related stories.
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Investors await clarity on tariffs, which has led to a drop in oil prices from their two-week highs
Investors were trying to assess the impact of new developments regarding U.S. Tariffs. Brent crude futures fell 20 cents or 0.3% to $69.95 per barrel at 0121 GMT. U.S. West Texas Intermediate Crude fell 21 cents or 0.4% to $68.12 per barrel. The latest delay in tariffs by U.S. president Donald Trump gave some hope to the major trading partners Japan, South Korea, and the European Union, that deals could be reached to reduce duties. However, it left some smaller exporters, such as South Africa, confused and without clarity about the future. Trump has pushed the previous deadline of Wednesday back to August 1. He declared on Tuesday that "no extensions will be given." He said that he will also impose a tariff of 50% on imported copper, and introduce soon the long-threatened levies against semiconductors and pharmaceuticals. This will broaden his trade war which has rattled global markets. The tariffs may have caused concern about the oil demand, but the strong demand for travel over the 4th of July weekend has given hope. Last week, AAA data showed that a record number of Americans (72,2 million) were expected to travel over 50 miles (80 kilometers) during their Fourth of July holidays. The Energy Information Administration predicted in its monthly report on Tuesday that the U.S. would produce less oil than expected in 2025 due to the lower oil prices this year. In its report on short-term energy forecast, the EIA stated that it expects to see 13.37 million barrels of oil per day produced by the world's biggest oil producer in 2025. This is compared to last month's estimate of 13.42 millions bpd. The U.S. is expected to produce 13,37 million barrels per day in 2026. This is the same as the previous estimate. Five sources claim that OPEC+ producers will approve a big increase in output for September, as they finish both the unwinding and United Arab Emirates moving to a bigger quota. The group approved an increase of 548,000 bpd for August on Saturday. Analysts said that the actual increase in production has been lower than what has been announced so far, and the majority of the supply comes from Saudi Arabia. Geopolitical tensions continued to exist, which acted as a floor on prices. An official familiar with the matter said that four seafarers aboard the Greek-flagged and Liberian flagged bulk carrier Eternity C died in a drone attack off Yemen. This was the second incident of the day following months of calm. (Reporting and editing by Muralikumar Aantharaman; Arathy S. Somasekhar)
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Mars crude oil prices drop on zinc contamination sources
Six traders and a source in the industry said that the zinc contamination of the Mars crude oil stream has slashed the price of the U.S. flagship coastal crude on Tuesday. Mars, an offshore grade popular with U.S. refining companies, is a grade that has been a major supplier along the U.S. Gulf Coast. This comes at a time of tight supply due to the absence of heavy Venezuelan barrels. Mars was trading at a 10-cents discount to crude oil in the Cushing storage hub, Oklahoma. This is a reduction from a 75 cents premium on Monday. Shell, the company that operates the Mars platform did not respond to a request for comment. Two sources confirmed that the contamination was probably caused by an additive used at the platform. Zinc is not found in crude oil. Zinc in crude oil can cause corrosion and damage to refinery units. According to Energy Aspects, the Mars platform produced around 160,000 barrels a day in the past 12 months. The grade is shipped to Clovelly, Louisiana. Reporting by Arathy S. Somasekhar in Houston, Georgina McCartney and Shariq K. Khan in New York. Editing by Matthew Lewis.
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Texas nuclear project talks with "hyperscalers"
In documents released on Tuesday, Fermi, an Texas-based company that wants to build four nuclear reactors next to the U.S. Nuclear Weapons Complex, stated it was in talks with large data managers about leasing agreements for this project. Fermi is a company co-founded Rick Perry, a U.S. former energy secretary. It wants to build 4 AP1000 reactors in a facility that it calls a "hypergrid." The 11 gigawatt facility, powered by nuclear energy, natural gas and renewables, will be built in Amarillo, near the Department of Energy Pantex nuclear weapons factory and in partnership with Texas Tech University. Fermi stated in its application to the Nuclear Regulatory Commission that the regulator made publicly available on Tuesday that it was in discussions with many Big Tech firms, also known as "hyperscalers", on letters of intention and term sheets or preliminary documents which are normally non-binding. According to the application, hyperscalers will be tenants and not owners of any part of the plant. Fermi didn't immediately respond to questions about the financial arrangements that are being discussed with Big Tech companies, or who or how many Hyperscalers they is in discussions with. The two last reactors in the U.S. built were AP1000 in Vogtle in Georgia. According to the U.S. Energy Information Administration, they cost a combined total of $30 billion. These plants were years behind schedule and cost billions more than projected. Nuclear supporters say that lessons learned will reduce the construction time and costs for future AP1000 reactors. Fermi stated in his application that the Donald J. Trump Generating Plant nuclear complex, also known as the Donald J. Trump Generating Plant will be eligible for funding from the Department of Energy Loan Programs Office. In his first term, the only time that the president used the LPO was to finance the Vogtle plant. Other plans for financing construction and operations include equity contributions from institutional investors in infrastructure and real estate, structured bond offerings and clean energy tax credit.
US Gulf Coast fuel imports are at a record low, as refiners choose heavier crude
Fuel oil imports in the U.S. Gulf Coast refinery hub hit a new record low in the month of June, as refiners were forced to use more heavy and sour crude due to tighter global supply.
Refineries that run heavier, sourer oil produce more heavy residue. This is then processed in a second unit to make higher-value products such as gasoline or diesel. According to Kpler's ship tracking service, Gulf Coast fuel oil imports reached a new record low of 213,000 barrels a day in June. This is down from 233,000 barrels p.d. for the month. In June 2024, they were 430,000 barrels p.d. The Gulf Coast refineries account for over 55% of the total U.S. refining capacity.
The drop was primarily due to a decline in Mexican crude oil volumes. In June, they fell to their lowest level since April 2020 at only 22,000 bpd. This is down from 71,000 in the previous month. The global high-sulphur oil supply has tightened due to the seasonal increase in demand for air conditioning in the Middle East between June and August.
The feedstock is less economical to refine compared to crude, which has led prices up. According to prices published by Argus Media, the daily premium for high sulphur fuel over Mexican heavy crude Maya averaged $4.20 per barrel in May. This was the largest monthly average premium since last October. Gulf Coast refiners prefer Maya because they run heavy and medium oil.
A refinery source reported that higher prices for fuel oil high in sulphur have prompted refiners use less feedstock, and more heavy crude.
Austin Lin, principal oil analyst at Wood Mackenzie, said that U.S. refiners were weighing the benefits of using high-sulphur feedstocks against crude. The margins weren't as good. Roslan Khasawneh is a senior oil analyst with Kpler. He said that U.S. refiners are relying less on imported residual feedstocks in the long term and more on domestic production.
Khasawneh explained that this was one of the reasons why U.S. fuel oils inventories have been trending downwards to multi-decades lows, and domestic fuel oil yields have been slightly higher since mid- to late last year. According to the Energy Information Administration (EIA), U.S. fuel oil reserves on the Gulf Coast dropped last week to their lowest level since March 1996. They were 10.63 million barrels.
Khasawneh continued, "Gulf Coast oil imports are on a clear downward trend since Russia invaded Ukraine. This is due to the U.S. embargo on Russian oil imports." (Reporting and editing by Marguerita Choy in Houston)
(source: Reuters)