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Chevron beats analyst expectations to record highest quarterly profit in six-years
Chevron reported its highest quarterly profits in at least six year on Friday. The U.S. and Israel war against Iran has disrupted world energy markets, which is boosting profits of the largest oil companies. LSEG data shows that adjusted?earnings 'of $12 billion or $6.06 per a share beat the average analyst estimates of $5.56. Chevron's shares rose about 2% during premarket trading. The results were similar to those of European oil giants TotalEnergies, Shell and others who also reported record profits in the second quarter, boosted by higher oil costs. ExxonMobil's quarterly profit missed analyst expectations despite earning a record high. Eimear Bonner, Chevron's Chief Financial Officer, said in an exclusive interview that despite the current geopolitical unrest and volatility on the market the company continues to provide the reliable energy the world needs. The second largest U.S. oil company has less Middle East output than its competitors, which allows it to reap?benefits from higher oil prices while avoiding the major production disruptions that angered rivals like ExxonMobil or TotalEnergies. Chevron CEO Mike Wirth has warned that the conflict will continue to put global energy supplies at risk. "Everyday, the situation becomes more challenging," he said to CNBC. Upstream earnings were $8.2 Billion, 200% higher than the previous year. Benchmark Brent crude oil prices rose by?23% during the second quarter compared to the first three months of the year, due to limited shipping through the Strait of Hormuz. The production totaled a staggering 4 million barrels of oil-equivalent per day (boepd) during the second quarter. This is up from the 3.85 million boepd produced in the first. The U.S. production, centered on the Permian basin and offshore Gulf area, reached a record of 2,08 million boepd. Chevron expects to spend 25% less on a barrel of U.S. Shale production this year compared to 2025 due to efficiency. The U.S. refinery's throughput record also helped boost earnings to $4.9 billion. Refining margins reached record levels due to low fuel stocks globally and the conflict in the Middle East. RBC Capital Markets' analyst Biraj Borkhataria said that Chevron’s higher-than expected downstream earnings were the main reason for its earnings surprise. He added that the report demonstrated "robust operations performance and strategic consistency." The soaring profits may attract more criticism from U.S. president Donald Trump who last month accused oil companies of "price gouging." He also urged them do more to reduce gasoline prices. CHEVRON KEEPS DIVIDENDS AND BUYBACKS STEADY Chevron paid $3.5 billion in dividends and repurchased shares worth $3 billion during the second quarter. Bonner stated that the company will maintain its target for repurchasing shares of between $10 and $20 billion per year and would focus on strengthening balance sheets over the long-term. Our business must be able to operate in all cycles, because energy is cyclical. She said that they would not change their?plan to suit a quarter. Bonner stated that Chevron joint ventures in Venezuela are currently producing 280,000 barrels of oil per day. This is where the Trump Administration is trying to increase U.S. investment by oil companies. She said, "We are confident that we can increase production by 15% in the next 18-24 months." She added that Chevron is evaluating incremental production opportunities, which would be dependent on favorable terms from the Venezuelan government. Chevron said Friday that it had achieved $1.5 billion in deal synergies from the acquisition of Hess last year, six months earlier than scheduled and exceeding the $1 billion target originally set at the time of the closing of the deal. Sheila Dang reported from Houston, and Nathan Crooks edited the story.
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Nuclear firm Westinghouse files confidentially for US IPO
Westinghouse Electric Company has filed a confidential application for an initial public offering in the United States, the company announced on Friday. It joins a 'wave' of nuclear companies that are looking to tap the capital markets. The investor enthusiasm for nuclear companies has increased in the last year, as Big Tech's rapid build-out of data centers boosts U.S. demand for power. The original business, founded in 1886 by George Westinghouse who commercialized alternating-current, has been largely preserved by the nuclear technology and service supplier owned jointly by Brookfield Renewable Partners and Cameco. Westinghouse constructed the first commercial pressurized-water reactor in Shippingport Pennsylvania in 1957. According to the company, more than half of all nuclear reactors operating around the world use its technology. Cameco, Brookfield Renewable Partners and Westinghouse Electric bought Westinghouse Electric for $7.9 billion in 2023. Westinghouse has said that the number of shares and price range to be offered in the proposed offering are still unknown. Last month, the Cranberry Township-based?Pennsylvania company announced that it was partnering with U.S. Department of Energy in order to strengthen the U.S. Commercial Nuclear?supply chain. Blank-check deals have long been the primary path to?public markets? for more speculative firms, but issuers in sectors like nuclear and quantum are now pursuing traditional public offerings this year. Companies can prepare for IPOs without the public's scrutiny by filing confidential documents. X-Energy, Standard Nuclear and other major?nuclear firms have all gone 'public' through the traditional IPOs in this year. Holtec Nuclear filed for a New York IPO this month. (Reporting and editing by Anil D’Silva in Bengaluru, Arasu Kanagi Basil)
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The ECB blog claims that the rise in fuel prices is largely due to oil refining margins.
The rise in refinery margins, which are now at near-record levels, has contributed to recent increases in fuel prices across the euro zone. A 'further increase in margins is still possible in August before a retreat occurs. Euro zone inflation jumped to 2.9% in the month of July, from a level around 2% prior to the U.S.-Israel war in Iran. The persistently high oil prices, close to $90 a barrel, suggest that the price pressures may?intensify, forcing the ECB into raising interest rates. Refining margins are also up, despite the rise in oil prices. Diesel refining margins per litre were EUR0.10 before the Iran war and rose to EUR0.35 during the first three weeks in July. The blog reported that the petrol price increased from EUR0.04 in February to EUR0.23 by July. The ECB is not the only one who thinks this way. Fuel supplies have been tightened by disruptions in refining operations, fuel exports from the Middle East and reduced Russian refinery output. This week, Russia extended its ban on the export of gasoline and diesel until January 31. The move has exacerbated a global fuel shortage. Prices have also risen in countries who no longer purchase fuel from Moscow.
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AngloGold's quarterly profit increases 58% due to higher bullion prices and lower output
AngloGold Ashanti reported a 58% rise in its second-quarter profits?on?Friday, as higher 'bullion prices' offset the impact of lower production. The miner reported that its headline earnings for the three-month period ending June 30 were $1.01billion, up from $639mil a year ago. AngloGold's gold production in the second quarter of 2025 fell by 7% compared to last year, to 744,000 ounces. This was due to the sale of Brazil's Serra Grande Mine. The output was also affected?by the 32% decline in gold production in Ghana at the Obuasi Mine?due?to operational and equipment issues as well as?as interruptions related?to an April 2026 fatality. AngloGold expects to have a better second half performance, even though its production was 3.7% less than last year, at 1.47million ounces. This will help it achieve its 2026 annual production forecast, which is between 2.8million and 3.17million ounces. An increase of 35% in the average gold price received year-on-year led to a 36% rise in 'AngloGold’s second-quarter free cash flow, which reached $727 million. AngloGold announced that it would pay quarterly dividends of?72cents per share or $364million, bringing the total payout for the first half to $949 million. The company also?proposed an?$2 billion share repurchase, which was approved on July 23 by shareholders. Reporting by Olivia Kumwenda Mtambo and Nelson Banya. Editing by Joe Bavier, Louise Heavens and Louise Heavens.
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Gold drops as US Dollar regains its footing. Heads for first monthly gain since five
Gold fell more than 1% on Friday as the U.S. dollar gained ground. The dollar recovered its footing but was still on course to post its best monthly gain since February, as investors reduced their rate hike bets following the Federal Reserve meeting last week. Spot gold fell 1.1%, to $4.055.41 an ounce at 1050 GMT. However, it was on track for a 0.5% weekly increase. Prices have also risen by about 1.7% this month. U.S. Gold Futures for August Delivery dropped by 1.2% to $4053.60. Independent analyst Ross Norman stated that "gold struggles to gain meaningful momentum and is still in the corrective stage of a larger structural bull market." The dollar index has recovered modestly above the key 100 level after its sharp sell-off post-FOMC, taking some shine off gold today." The dollar gained 0.3% on Friday after losing 2.4% in one day, its largest drop since January 2023. The dollar's strength makes gold more expensive for those who hold other currencies. Kevin Warsh, U.S. central Bank chief, vowed that he would bring down inflation at the Fed's policy meeting on Wednesday. This left markets "confused". According to the CME FedWatch Tool, traders now price in a 67% probability of a September rate hike, as opposed to an 80% likelihood a week ago. The data released on Thursday shows that U.S. inflation rates slowed down in June, but this was probably only a temporary easing as the oil price rose due to renewed hostilities across the Middle East. The rise in energy prices has exacerbated inflation fears and reinforced expectations that U.S. rates will be higher, reducing the appeal of non-yielding gold. Gold demand in India was muted as buyers awaited a clearer direction of price, while a stronger Yuan boosted purchases?in the top consumer China. Silver spot fell by 1.7%, to $58.00 an ounce. Palladium fell 1.1%, to $1289.77. Platinum dropped 1.3%, to $1638.77. Both metals are headed for monthly gains. (Reporting by Sukanya Mitra in Bengaluru; additional reporting by Swati Verma; Editing by Diti Pujara)
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German unemployment increases slightly more than expected for July
According to data released by the Labour Office on Friday, the number of unemployed people in Germany rose slightly higher than expected in July. They are now close to 3 million in adjusted seasonal terms. Labour Office data showed that the number of unemployed people increased by 6,000 in seasonally adjusted terms to 2,99 million. Analysts polled had predicted a rise of 5,000. The seasonally-adjusted unemployment rate was 6.4% in November, up from the 6.3% recorded the month before. Daniel Terzenbach is a member of Regional Management Board at the Federal Employment Agency. He said that the weak trend in the labour market has continued. The second quarter gross domestic product of Europe's biggest economy was higher than expected, but there are risks as hostilities between Iran and the U.S. flared up again, meaning that prices could remain high for longer than originally?expected. This would take a toll both on consumption and investment. Geopolitical shocks usually have a delayed impact on labour market data. Marc Schattenberg is an economist with Deutsche Bank Research. He said that early labour market indicators indicate the labour market may move in a sideways direction over the next few months. If the German economy performs as well as it did during the second quarter, however, the labour markets is likely to gain momentum in autumn, said Schattenberg. UNADJUSTED, ABOVE 3 MILLION MARK In July, the number of unemployed people surpassed 3 million. In August last year, the three-million?mark was exceeded for the first decade. This shows 'the impact of economic stagnation on labour market. Terzenbach stated that "unemployment and underemployment have increased noticeably in the month of July due to seasonal reasons." Data released on Thursday showed that the increase in energy prices due to the conflict in Iran caused the inflation to accelerate to 2.8% in July, up from 2.4% the month before. "If sustained, a rebound in GDP will eventually feed through to the labour market," Claus?Vistesen said, chief euro-zone economist at Pantheon Macroeconomics. "For the?near-term, however, it remains difficult." The office reported that the demand for labour is still low. The labour office registered 653,000 job openings in total for July, which is 25,000 more than the previous year.
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Weekend Reads: AI, rusty refineries and Reza Pahlavi
Want some inspiration? Weekend Reads is a weekly roundup of what Open Interest's?team read, watched and listened to. The latest selections include a look at aging Venezuelan refineries and gold flows, as well as the son of Iran’s former 'Shah. This weekend we read... RON BOUSSO. ROI Energy Columnist. I really enjoyed this article on Venezuela's rundown and old refining industry. Venezuela's once-famous refineries have been rusted and damaged over the years by neglect and a recent earthquake. MIKE DOLAN is a ROI Finance & Markets 'Columnist. Take a look at this latest Bank for International Settlements Bulletin to see how central banks struggle with assessing the impact of AI in their economies. They are becoming increasingly concerned about a 'policy recalibration. This may explain in part why central banks are hesitant to make any changes at all regarding interest rates. Andy HOME, ROI Metals Columnist: This exclusive explores tensions between the U.S. Government's desire to stop purchasing?critical minerals from China and the reality of a local supply chain which is far from meeting the country's requirements. CLYDE RUSSELL is a columnist for ROI Asia Commodities. The World Gold Council's latest quarterly report on gold demand trends shows that gold demand was steady in the second quarter. The demand for gold might seem uninteresting on the surface. However, the composition of the demand - with ETF outflows and central bank purchases - is interesting, and indicative of a larger trend. Listen to... AL REED. ROI Research Assistant. The memory shortage?related to?AI buildout?is also driving up the cost of consumer electronics. Galaxy Brain, a podcast from The Atlantic, recently explored the reasons behind this and its potential impacts. We're watching... ANNA 'SZYMANSKI. ROI Editor-in Charge: Investigative reporters Steve Stecklow, Gavin Finch, and Reza Pahlavi sat with the Iranian opposition leader and son of 'Iran's final shah to discuss 'his campaign to bring democratic reform to Iran' and the criticism he's faced on the way. The opinions expressed are solely those of their authors. These opinions do not represent the views of News. News is committed to the Trust Principles and a commitment to independence, integrity, and neutrality.
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Copper prices rise 3% in a month due to concerns about low stock levels
The 'price of copper' rose on Friday, and is on track to rise 3% this month due to increased risk appetite on equity markets and concerns about the 'lack of visible stocks outside america. The benchmark three-month copper price on the London Metal Exchange rose 0.1% to $13,821.50 per metric tonne by 0954 GMT, after reaching $13,883, which was its highest level since 22 July. Ewa Mnthey, ING commodities analyst, said that copper has supportive fundamentals for August. The market still faces a supply deficit and has limited buffers for inventory outside of the U.S. This leaves prices vulnerable to further disruptions or signs of stronger demand. Copper stocks available in LME registered warehouses The number of tons currently on the market has dropped by 50% since mid-January, as large volumes are being marked for delivery. The premium for the LME cash copper contract over the forward three-month contract indicates a tightening of supply in the near term. On Thursday, the price of a ton of metal was $40, its highest level in seven months, compared to a discount at the beginning of July of $49 China's Yuan reached its highest level in over three years against the dollar on Friday. This made dollar-priced materials more attractive to Chinese buyers. The Yangshan Copper Premium faded away, and a recent surge of demand in the country has waned. A gauge of interest in the importation of metal into China has stabilised at $112 per?ton after hitting $115 on July 22, its highest level since November 2022. China's factory output unexpectedly contracted in July due to a decline in new orders. This added further weight to the overall sentiment. Aluminium, among other LME metals?lost 0.8 percent to $3,170.50. However, the metal has still risen 3% in this month because of concerns about shipments coming from the Gulf due to the Iran War. Manthey stated that "supply conditions are improving, especially as Middle Eastern production is regaining momentum and Chinese exports continue to be elevated, but it's still expected that the market will remain in deficit." LME zinc was unchanged at $3,620.50. Lead fell 0.2% to $2,892. Tin gained 0.3% to $44,980. Nickel added 0.1% to 17290. (Reporting and editing by Barbara Lewis; Polina Devtt)
As Middle East supply disruptions continue, oil prices are expected to rise
A poll shows that oil prices will continue to rise this year due to disruptions of shipping in the 'Strait of Hormuz' and attacks by Iran-backed Houthis in the Red Sea. These incidents threaten oil flows and increase supply risks.
In a survey conducted in July, 31 economists and analyst forecasted that Brent crude oil would average $85.22 per barrel by 2026. This is up from the June forecast of $84.50.
The average price of U.S. crude oil is expected to be $80.14, compared to the estimate for June, which was $79.49. These benchmarks have been averaging $87.03 and $82.00 respectively for the year to date.
Tobias Keller, UniCredit analyst, said: "The main support is the geopolitical risks premium associated with the Iran conflict. This premium will likely persist throughout the second half of this year and maintain volatility."
The U.S. - Iran conflict that began in late February has drastically reduced traffic through Strait of Hormuz. This was a route which carried a fifth of the world's crude oil and gas, and disrupted Middle East production by millions of barrels a year.
Recent back-and-forth fighting has ended the brief pause between the two nations.
Moreover, the Houthi militia has disrupted shipping in the Bab el-Mandeb Strait, which connects the Red Sea with the Gulf of Aden. This creates a second chokepoint where oil is flowing.
OIL DEMAND GROWTH IS SEEN DRIVING IN 2026
According to Phil Flynn of Price Futures Group's senior analyst, it will take four to six month for oil flow from the Gulf to normalise after the United States has reached a durable ceasefire with Iran. Flynn also said that his "base case" assumed that full normalisation would occur by the beginning of 2027.
According to the poll, oil demand is projected to fall by 500,000 barrels per day in 2026, to 1.6m bpd. The supply deficit for that year could range from 1 mbpd up to 2.6mbpd.
The International Energy Agency predicts that global oil demand will fall by one million barrels per day this year before rising to 2 million barrels per day in 2027.
OPEC has lowered its forecast of world oil demand growth for 2026, to 780,000?barrels a day. This is the third consecutive downward revision.
Thomas Wybierek is an analyst at NORD/LB. He said: "Given that the global economy was hit hard by energy crisis, a rapid recovery?of the fundamental demand apart from restocking inventories?still appears unlikely."
Sources have reported that OPEC+ with its 21 members, which includes the Organization of Petroleum Exporting Countries (OPEC), Russia, and other allies will likely halt oil production increases for three month from October, following a September increase in output.
(source: Reuters)