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Qatar reduces the March term price of al-Shaheen Oil, the first discount for years, according to sources
Trade sources report that QatarEnergy, a state-owned company, has set the price of 'al-Shaheen crude loading in March at the lowest level in years. This is due to the decline in spot benchmarks. The company has set the price for March at minus 33 cents per barrel to Dubai's?quotes. This is down from a premium 53?cents on February-loading cargoes. Dubai's benchmark fell into a discount with swaps for the first time in December 2023 at the start of this year. QatarEnergy has sold four cargoes discounted at 32-35 cents per barrel to Totsa (the trading arm for TotalEnergies) and Unipec (the trading arm for Sinopec), according to sources. Separately Qatar awarded a Qatar Marine Crude Cargo?at a discounted price of $1.08 per barrel to Thailand's PTT. They said that it also?awarded Qatar Land cargo to Indian refiner Reliance. Companies don't usually comment on commercial deals. Each cargo is 500,000 barrels.
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Copper falls from record highs due to easing US tariffs and a stronger dollar
The copper price fell on Thursday, from its record highs. This was due to a weaker dollar and the easing of concerns about a possible imposition?of U.S. duties on vital minerals. By 0244 GMT, the?most traded copper contract at the Shanghai Futures Exchange had fallen?1.08%?to 103 050 yuan per metric ton ($14,788.82). The contract reached a record of 105,650 Yuan the previous day. The benchmark three-month copper price on the London Metal Exchange fell 0.45%, to $13,129.5 a ton. This is after reaching a record high of $13,407 per ton on Wednesday. On Wednesday, U.S. president Donald Trump announced that he would not be imposing tariffs for the time being on 'rare earths', 'lithium and other critical mineral products. Copper has been added the U.S. list of critical minerals. The price of copper has been pushed up by the persistent flow of copper into the United States, despite higher premiums in other countries. A stronger dollar also affected the demand for the metal. It is used for power grids, manufacturing and construction. Shanghai tin rose for a 5th straight session, hitting a record at 443,380 Yuan despite signs that supply was increasing. According to the Indonesia Tin Exporters Association, the country's production quota for tin will be around 60,000 tonnes in 2026 compared with 53,000 tons last year. Concerns about the supply from Indonesia led to a spike in Shanghai nickel prices at 151.750 yuan, their highest level in over seven months. Local media reported that Indonesia, a major producer, may approve a nickel-ore production quota this year of 260 tons. This is lower than the demand for 340 to 350 million tonnes. Other SHFE metals saw a 1.26% increase in lead, a 3.52% rise in zinc, and 1.37% decline in aluminium. Aluminium, nickel, lead, tin, and zinc all rose in price.
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Trump backs Venezuela staying in OPEC
Donald Trump, President of the United States, said that he believed it would be best for Venezuela to stay in the Organization of the Petroleum Exporting Countries (OPEC) but he added he wasn't sure if he thought the United States would benefit from this. In an interview, Trump replied that it would be better for Venezuela to remain in the cartel. Trump continued, "I'm not sure that it's better... but they're a member of OPEC and we've never discussed this with them at all." Venezuela, the founding member of this oil cartel, is home to some of the largest reserves of crude oil in the world. However, its production has been falling for the past few years due to economic turmoil and sanctions. Trump is trying to take control of Venezuela's oil supply after the U.S. removed President Nicolas Maduro earlier this month. Trump's administration said that it would have to control Venezuela's petroleum resources indefinitely as it sought to rebuild Venezuela's industry and exert pressure against the Caracas Government. When asked if Venezuela would be expected, under a U.S. oil policy, to abide by OPEC's production limits, Trump replied that the question was premature, and beyond his remit. He said, "I'm not worried about it at the moment, because I don't know anything about OPEC." Caracas could be at odds with other OPEC countries if the U.S. controls Venezuela's oil industry. Future investments to increase capacity may also put Caracas in conflict. OPEC is a coalition of oil-producing nations that collaborate on a supply policy in order to stabilize the oil market. They reduce output when prices drop and increase output when demand warrants. Saudi Arabia is the de facto leader of the group, even though members take decisions together. This is due to Saudi Arabia's dominant production capability and its ability to increase or decrease supply. White House aides, as well as outside advisors, have said that in recent interviews the topic of Venezuela staying in OPEC 'hasn't been a subject of conversation. It could become a hot topic if Trump tries to increase oil production, while OPEC tries to cut prices to maintain the price. OPEC's quota system limits the production of some members to maintain global oil prices. Iraq, Nigeria, and Angola are among the countries that have expressed their frustration in the past because the quotas limit them from fully utilizing their reserves or meeting domestic fiscal requirements.
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Uganda votes in tense elections clouded by succession issues
After a violent election campaign, the Ugandan president Yoweri Mueveni wants to extend his reign into a 5th decade. Museveni will likely be able to defeat the challenge of the popular singer Bobi Wine. But the vote is a test?of?his political strength?and?ability to avoid the unrest which has ravaged neighbouring countries Tanzania and Kenya. The longtime leader campaigned under the slogan "protecting gains", promising to maintain peace and elevate the country to middle-income status. Wine, 43-year-old Pop star, nicknamed "Ghetto president" because of his humble origins has promised to end Museveni's dictatorship and appealed to angry young people about the lack of economic opportunities. Over 70% of Ugandans are under 30 years old. HUNDREDS Arrested, at LEAST one killed Security forces have opened fire on Wine's events several times, killing at least 1 person. They also arrested hundreds of Wine supporters. Museveni’s government has justified the actions of security forces as a response to what they called lawless behavior by opposition supporters. The authorities have cut off internet and mobile access in the entire country to combat what they call "misinformation" regarding the election. Last week, the U.N. Office for Human Rights said that elections took place amid "widespread intimidation and repression". Wine is not the only opposition candidate who will be challenging Museveni,?Africa's?third-longest ruling head of state. The voters will also be able to 'choose over 500 members of Parliament. The polls will close at 4:00 pm (1300 GMT), and the results are expected within 48 hours. By Saturday afternoon. MUSEVENI IS AN STRATEGIC FRIEND OF THE WEST Museveni was the leader of a revolt in 1986 that brought him to power. Political analysts claim that he has changed the Constitution twice, removing age and term limitations, and because he dominates Ugandan institutions, there are few chances of a surprise election. As president, he has established Uganda as a strategic?partner?of Western countries, sending troops into regional hotspots such as Somalia and accepting millions of refugees. The economic growth traditionally dependent on agriculture and tourism is expected to reach double digits once crude oil production begins this year from the fields operated by France's TotalEnergies, and China's CNOOC. Museveni's government has been criticized for alleged abuses of human rights and unfair elections. The United States denounced Wine's last victory in 2021, in which he won with 58% of votes. They said it was neither fair nor free. In the run-up to this vote, security forces killed over 50 opposition supporters. It is unlikely that the Trump administration will make similar criticisms this time, after U.S. diplomatic staff were instructed in July to refrain from commenting on foreign elections. PRESIDENTIAL SUCCESSFULNESS IN FOCUS Museveni's son, Muhoozi Kaineruaba, is believed by many to be his preferred successor. However, the president has denied grooming Kainerugaba for the position. Kainerugaba is a social media star who regularly threatens violence against opposition leaders. He has declared openly his presidential ambitions. However, his status as the heir apparent within the ruling party is not widely accepted, according to analysts. Jervin Niaidoo is a political analyst with Oxford Economics. He said that while another term would bring stability, it would also increase the risk of succession, effectively pushing the leadership transition down the road. (Editing by Aaron Ross & Philippa Fletcher).
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US Justice Department blocks California's limits on oil drilling near schools and hospitals
The U.S. Justice Department announced on Wednesday that it filed a lawsuit to 'block' a California law which requires oil and gas drilling to be kept away from schools, homes and hospital by buffer zones greater than half a kilometer (1 km). The Justice Department has said that it will be seeking a preliminary injunction to stop the?enforcement of the law in the next few days. California Senate Bill 1137 prohibits the drilling of new oil and natural gas wells in a radius of 3,200 feet (975 metres) from community spaces. It also imposes stricter health and safety standards on existing wells. In a statement, the Justice Department, arguing federal legislation should preempt state law, stated that the bill would "knock out about one third of all federally-authorized oil and gas "leases" in California." Republican U.S. president Donald Trump The administration, which supports fossil fuel development and Democratic California Governor Gavin Newsom who has positioned California as a "global leader" in the fight against Climate Change, have both been harshly critical towards each other. Earthjustice reports that'more than 3 million Californians or 8% live within 3,200 feet of an active oil well. The group warned that these people could suffer from asthma, preterm delivery and reduced lung function. (Reporting and editing by Cynthia Osterman in Washington. Kanishka Singh is the Washington correspondent.
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McKinsey: UK ranks high in FDI due to AI and clean energy booms
McKinsey, a consultancy, said that Britain is now a top destination for foreign direct investment. This has been aided by the growth of artificial intelligence and clean energy. However, it needs to do more to 'attract' other types. McKinsey's report, published on Thursday, said that the United Kingdom was now the third largest destination in the world for newly announced FDI between 2022-2025, behind the United States of America and India. This is an improvement from the fourth position in 2015-19. It said that inflation-adjusted FDI inflows were about $85 billion a yearly, which was 40% more than 'before the COVID-19 Pandemic. This is also stronger than a 20 percent increase in global FDI announced. France and Germany, by comparison, attracted an average of $45 billion a year and $43billion respectively. The British government has stated that it is looking to increase foreign investment to boost the economy and improve productivity. McKinsey said the same thing: The majority of Britain's new FDI deals are in the clean energy and artificial intelligence sectors, each worth over $1 billion. Only a small amount is flowing to advanced manufacturing areas like batteries for electric cars and semiconductors; * 80% of the announced investment inflows into Britain were from Europe and the United States. Britain is at risk of losing out on investments from the Gulf, South Korea and Taiwan. * The announced FDI?into fossil fuels fell in Britain by about 80% compared to a global decline of 30%, which could be due to increased taxes on oil companies. (Writing by William Schomberg, editing by David Miliken)
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Venezuelan oil is priced higher than Canadian barrels competing for US Gulf Coast refiners.
This week, Venezuelan crude was offered to the?U.S. Gulf Coast refiners are getting barrels from Canada at a premium, according to two traders. A trader said that Venezuelan Merey-16 crude oil was being offered at a discount around $6 to Brent futures for U.S. Gulf Coast deliveries earlier this week. West Canadian Select settled at Houston on Tuesday at a discount of approximately $12.50 to Brent. Last week, global commodities?traders Vitol & Trafigura reached agreements with the U.S. government to help sell Venezuelan oil that was stranded. This came after the interim Venezuelan government agreed to export 50 million barrels to the U.S. Refiners in the United States could gain from a full-scale resume of Venezuelan oil sales, while an increase in Venezuelan exports would benefit the United States. Gulf Coast could harm Canadian companies who sell similar heavy oil. Canada's crude oil tends to produce more naphtha, a lighter hydrocarbon that is produced after the oil is refined. Two sources claim that refiners prefer to run Venezuelan crude because of the abundance of naphtha on?the market. Reporting by Arathy S. Somasekhar in Houston and Georgina M. McCartney; editing by Ni. Williams
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Duke Energy unit will remove storm recovery charges from customers' bills one month early
Duke Energy Florida, a U.S. utility, announced on Wednesday that the storm cost recovery charge will be removed from customers' bills a month sooner than originally planned. Costs are related to the company's response of nearly $1.1 billion dollars to hurricanes Debby Helene and Milton. For this, the Florida?Public Service Commission had received a plan from the company in late 2024. The utility announced that residential customers would see a?reduction of about $33 in their monthly bill starting in February, and another $11 in March, bringing the total?reductions up to $44 from levels in January. Commensurate with the reduction in January, commercial and industrial customers can expect to see their monthly bills drop between 9.6% and 15.8%. However, this will vary depending on usage and various other factors. Duke's electric utilities serve approximately 8.4 million customers across North Carolina, South Carolina, Florida, Indiana and Kentucky. They collectively have 54,800 Megawatts of energy capacity. The natural gas utilities in North Carolina, South Carolina and Tennessee serve over 1.7 million customers. (Reporting and editing by Anil D’Silva in Bengaluru, Pooja Menon from Bengaluru)
Oil prices drop as Trump eases Iran concerns; Asian tech stocks fall
On Thursday, oil prices fell from their multi-month highs and gold, a safe-haven asset, eased from its record high after U.S. president Donald Trump 'calmed the market's anxiety over a possible U.S. war against Iran.
Investors have been looking for bargains elsewhere in the market as they move away from high-flying names in chip and artificial intelligence.
Currency markets paused to catch their breath after the yen fell overnight against the U.S. Dollar to its lowest level since July 2024. The yen then rebounded sharply amid warnings about possible Japanese intervention.
Japanese bond yields have eased from record highs following a spike fueled by speculation, which was confirmed later, that the government would call for snap elections. This scenario is expected to lead to a larger fiscal stimulus.
Brent crude futures fell?2.4%, to $64.94. Nymex futures dropped 2.4%, to $60.51. They had been as high as $62.82 and $62.36 respectively in the previous session.
Trump stated on Wednesday that he had been informed that the killings of Iranians during their crackdown on protests across the country were waning. He also believed that there is no current plan for mass executions.
Gold dropped 0.5%, to $4,598 an ounce. On Wednesday, it reached a record $4,642.72.
The stock market in Asia was mixed, with tech shares selling more than other stocks.
The tech-heavy Japanese Nikkei index? eased 0.9% on Thursday after reaching an all-time high in the previous session. However, the Topix, which is a broader index, extended its record high with a 0.4% gain.
Tech shares weighed on Taiwan's TAIEX and Hong Kong’s Hang Seng, which both fell 0.5%.
South Korea's KOSPI, on the other hand, grew by 0.3% and reached a new record high. As economists predicted, the Bank of Korea kept interest rates at their current levels on Thursday. This signals an end to the current easing cycle.
S&P E-mini futures fell 0.1% after the cash index dropped 0.5% overnight. The Nasdaq Composite, which is a tech-focused index, fell 1%.
Kyle Rodda is an analyst for Capital.com. He said that there's a rotation on Wall Street which ultimately weighs on the indices, but that the internals are still holding up fairly well.
The positive outlook for U.S. economy is a major factor in the strength of cyclicals. This helps to support stocks and gives market participants a sense of broader market strength.
The dollar index was flat at 99.107 on Thursday.
After surging to as high as 159.5 yen Wednesday, it eased to 158.32 before pulling back.
Satsuki Katayama, the Japanese Finance Minister, issued a verbal warning Wednesday saying that officials will take "appropriate actions against excessive FX movements without excluding any other options."
Prime Minister Sanae Takaichi intends to dissolve the lower house of parliament next week, and call for a snap election in Parliament as early as 8 February.
Investors have been selling the yen as well as government bonds in recent days, mainly due to expectations of a bigger fiscal stimulus.
The yield on Japan's 20 year bond fell 2 basis points to 3.14% after a record-breaking 3.165% the previous session. (Reporting and Editing by Shri Navaratnam.)
(source: Reuters)