Latest News
-
Tajikistan has requested 2.5 million tonnes of fuel and oil from Iran
The Central Asian country's Transport Ministry said that Tajikistan had asked for 2.5 million metric tonnes of?oil from Iran, while its traditional supplier, Russia, is also experiencing fuel shortages. The ministry posted a statement on its website last week stating that Tadjikistan had requested 2,55 million tons, which included?2 millions tons of crude oil, 150,000 tonnes of gasoline, 300,000 metric tons of diesel, and 100,000 metric tons of jet fuel. Tajikistan has traditionally imported up to 80% of its petroleum products from Russia. However, the Persian-speaking nation also shares close cultural and linguistic links with Iran. The timeframe was not given for the supply. In recent months, Russia has experienced a 'fuel shortage' as Ukraine waged a drone campaign against its oil refineries. In July, Tajikistan’s?energy? minister said that the authorities were in negotiations with Kazakhstan, Turkmenistan and Iran regarding additional supplies. Export bans for aviation kerosene, diesel fuel and gasoline have been implemented in Russia to stabilize the domestic fuel market. The ban does not apply to intergovernmental supply agreements. Reporting by Felix Light, Editing by Kirby Donovan
-
Singapore's oil product inventory falls to a two-month low
According to government data, oil product inventories in Singapore, Asia’s main fuel trading hub, fell for the second consecutive?week, reaching two-month lows. Light distillates inventories are nearing a 5-year low. Enterprise Singapore reported that combined onshore oil products inventories were around 37.67 millions barrels for the week ending August 19. This is down from 38.44million barrels one week prior. Even though the imports of refined fuels like diesel, gasoline, and jet fuel from China dropped, they were in line with the expectations that the market had set since Beijing began to loosen its control over exports in July. As U.S. peace talks with Iran faltered, the markets were still worried about supply risks. Meanwhile, shipping through the Strait of Hormuz was unchanged on Wednesday from the previous day. MIDDLE DISTILLATES LIGHT?DISTILLATES SLIP Stocks of both middle and light distillates fell from a previous week. The stocks of light distillates have fallen to just under 11 million barrels, the lowest level since November 2021. The majority of gasoline imports came from countries in Northeast Asia, such as China and South Korea. Exports of gasoline were mainly to Indonesia, Malaysia, and Pakistan during the week. The city-state is a net jet fuel importer despite a 89% decline in its net diesel and gasoil exports week-on week. Imports of diesel and gasoil increased by over?10 compared to a week ago, with China as the main contributor. It was the same for jet fuel and Kerosene as China's volumes grew to nearly 70,000 metric tonnes. The traders expect more Chinese cargoes to be exported in the remaining months of August and September. RESIDUAL STOCK REMAIN BELOW THE AVERAGE EVEN AFTER WEEKLY GAINS The residual fuel stockpiles rebounded after a drop last week but are still below the average. The data showed that inventories were up 6.9% on a week-to-week basis, at 18.42 millions barrels (2.90million tons), reaching a two-week high. The total imports of fuel rose by 77.9%, to over 746,000 tonnes. Mexico was the largest supplier of fuel oil for the past week. Exports increased by 40.1% compared to the previous week, reaching a total of?over 348,000 tons. The majority of these exports went to China. Market sources reported that spot premiums on the low-sulfur fuel market showed some signs of easing this week even though the supply was still tight.
-
Gold falls after a 2-month high on US Treasury move
Gold prices fell Thursday, as investors took profits after the price of gold climbed to its highest level in more than two months. This was due to a U.S. Treasury announcement that it would provide liquidity support for long-term bonds. The unexpected announcement weakened dollar values and reduced Treasury yields. By 0750 GMT, spot gold had fallen 0.7% per ounce to $4488.19. Bullion was earlier at $4,525.79 - its highest price since June 2 - after a more 4% increase on Wednesday. U.S. Gold futures were little changed at $4,462.30. Treasury Department announced it would double its liquidity support 'buyback operations' for longer-dated bonds and notes. This came after investors demanded a higher return on bonds due to increased inflationary risk stemming the U.S. and Israeli war against Iran. The U.S. Dollar was hovering near three-month lows. Ilya Spirak, global macro head at Tastylive said: "There's going to be a certain amount of digestion in the markets after such a large move." The $4,400-$4,500 price range is now cleared. The upward momentum will likely continue if prices remain above this range. The total amount of U.S. government debt has surpassed $40 trillion, causing new warnings about a?fiscal emergency. Edward Meir is a Marex analyst. "The increasing concern over the financial stability of market due to borrowing and debt, and the inability for fiscal?side spending cuts are very bullish on gold." Minutes of the Federal Reserve meeting on last month showed that concerns over inflation had?intensified. "Several" policymakers were ready to increase interest rates. According to the CME FedWatch Tool, traders are currently pricing in 69% of a Fed hold and 31% of a rate increase in September. Gold is often seen as a hedge to inflation, but higher interest rates can reduce the appeal of non-yielding gold. Silver spot fell 0.5% per ounce to $66.60, platinum 1.6% to $1794.91 and palladium 0.5% at $1325.94.
-
Sources say that Coal India is planning a Singapore trading hub to hunt for critical minerals assets.
Two sources claim that Coal India Ltd., the world's biggest?coal manufacturer, will open its first overseas trading office in Singapore. The company aims to diversify by trading iron ore and critical and strategic minerals. The move comes as Indian state-run firms step up their efforts to secure overseas supply of critical minerals like lithium and bauxite to reduce dependency on China. However, such efforts so far have not yielded much fruit. Sources involved in the discussion, who requested anonymity because the talks were not public, stated that Coal India had applied to Singapore authorities to register an office. This 'will also support efforts for mineral assets to be acquired overseas. One source stated that the Singapore office would help Coal India to?expand and develop its vital minerals business, pursue overseas acquisitions, and support its iron-ore business. Coal India didn't immediately respond to our request for comment. Looking for opportunities in Africa, Chile and Canada Source: Coal India evaluates?opportunities' in mineral-rich areas, including Ghana and other parts in Africa. The miner is also interested in rare earth minerals. The second source stated that the miner was focusing its efforts on Chile for lithium while also evaluating other mineral assets in Canada and Australia. However, these opportunities are still at an early stage. The company has begun diversifying its business into other mineral industries. It won a?iron-ore block in eastern Odisha via a competitive 'auction this month, marking its?entry into iron ore mining. Coal India is considering buying a unit from Canada's wealth Minerals, which has lithium mining assets located in Chile. This would give Coal India access to the key metal for batteries used in electric cars and energy storage devices. India's efforts to secure strategic mineral resources abroad in order to support its clean-energy?ambitions, and manufacturing growth have met with limited success. It has only signed one lithium mining and exploration pact overseas, which covers five blocks in Argentina in 2024. Reporting by Sethuraman NR, Neha Arora and Mayank Bhardwaj; Editing by Clarence Fernandez and Mayank Fernandez
-
Exxaro's half-year earnings are down 20%; solar production is up.
Exxaro Resources, a South African diversified mining company, reported on Thursday a 20% decline in its half-year earnings as production costs rose and the rand strengthened. Exxaro reported headline earnings per share ($0.855) of 13.77 rand for the six-month period ending June 30 compared to 17.24 rand during the same period last year. The company stated that mining input costs increased due to a Middle East conflict which disrupted supply chains globally and negatively affected income from its iron ore joint-venture. Exxaro owns a 21% share in Sishen Iron Ore Company, a Kumba Iron Ore subsidiary. The company increased its coal production by 11% in the first half of this year, to 21.5 metric tons. Exports also rose by 15% to 3.9 million tons due to improved logistics. Exxaro produced 1.8 million tonnes of manganese from its newly acquired assets, up 11%. Increase in renewable energy generation Exxaro Cennergi's renewable energy production increased 12%, to 378 gigawatt-hours. The Lephalale Solar Plant helped offset the effect of lower wind power. Exxaro said that the Lephalale solar power plant, with a 68-megawatt capacity, has helped reduce the dependence of its flagship Grootegeluk coal mine on the national electricity grid by 30 percent. Exxaro targets 1.6 gigawatts (or more) of renewable energy by 2030 as part of a broader strategy of energy diversification and carbonisation. The increase in production at Exxaro helped to'soften' the impact of rising costs. Exxaro unit costs increased by 4.6%, while diesel prices rose 21% in the first half. Exxaro has announced that it will pay a?interim?dividend of 7 rands per share. This is a reduction of 17% from the interim dividend paid last year.
-
The LME copper inventory has increased to $14,000 due to the weakening dollar
Copper edged down on Thursday but held above $14,000 a metric tonne psychological level as higher inventories at the London Metal Exchange (LME), relieved supply concerns, and offset the support from sharp drops in the?dollar. Benchmark 'three-month' copper on the LME fell 0.26% to $14,013.5 per metric tonne by 0703 GMT. Shanghai Futures Exchange's most traded copper contract edged up 0.21% to 107200 yuan (about $15,943.13) per ton. On warrant copper stock, which means metal that is not yet marked for removal from the warehouse, on LME Exchange data showed that copper production rose by over 35,000 tonnes on Wednesday. This increase eased supply concerns caused by the outflow of refined copper to U.S. storage facilities due to its?potential tariffs. Stocks on the LME are up more than 50% since the beginning of the week but still less than half their levels from three months ago. The LME cash to three month copper spread has narrowed from its highest level since 2021, earlier in the week. The most recent backwardation was $280 per ton, indicating lingering concerns about material availability. The market is still vulnerable following months of inventory withdrawals. This was partly due to the diverting of metals towards?the US in anticipation of tariffs. As FX investors digested the measures announced by?U.S., the dollar dropped to its lowest level in three months. Treasury Department?to calm down the bond market. Copper recovered from its two-week lows on Wednesday thanks to the decline. The dollar is usually weaker when compared to other currencies. A weaker dollar usually increases the price of commodities denominated in dollars by making them more affordable for buyers who use other currencies. Aluminium, zinc, lead, and nickel all dropped in price on the LME. Tin, however, gained 0.32%. Aluminium?lost 0.61 %, zinc fell 0.28%, lead remained unchanged, only dropping 0.03%. Nickel gained 0.9%, and tin gained 1.39 %. $1 = 6.7239 Chinese Yuan Renminbi (Reporting and editing by Janane Vekatraman, Rashmi aich).
-
CORRECTED - India tightens restrictions on sugar bulk buyers and imposes stockholding limits
A government order issued on Wednesday showed that India is attempting to control'record-high sugar prices by ordering that no bulk consumers using more than 10 tons of sweetener per month should hold their stocks for longer than 15 days. The notification stated that the order would come into effect on?September 1, and will remain in place until November 30. Tuesday,? On Tuesday,? India's sugar demand usually increases from August to November, as the country celebrates festivals like Ganesh Chaturthi and Dussehra. Bulk consumers, such as confectionery and biscuit makers, build up inventories before the festival season. India, which is the largest sugar consumer in the world, asked dealers to keep stocks for only 30 days last month to boost supplies. Indian sugar prices are at a record high after a 10% increase in the last?month. They will remain high for the next three to four months, as supplies tighten up and demand increases during the festival season. Sugarcane crops have been hit by a combination of patchy rains and dry weather. This is because they require a lot of water to irrigate. In India, sugar is a politically sensitive issue. Sweets are popular and poorer families rely on the commodity as a cheap energy source. (Reporting and editing by Chris Reese, David Gregorio and Akanksha Khaushi from Bengaluru)
-
Gold falls after a 2-month high on US Treasury move
Gold prices fell Thursday, as investors took profits after the price of gold climbed to an 'over two-month high on a surprise U.S. Treasury's announcement of liquidity support for long-duration bond, which weakened the dollar and sent Treasury rates lower. By 0604 GMT, spot gold was down by 0.7% to $4,487.63 an ounce. Bullion was earlier at $4,525.79. This is its highest price since June 2 after a more-than-4% gain on Wednesday. U.S. Gold Futures was?little different at $4,545.60. Treasury Department announced that it would double its liquidity support 'buyback operations' for bonds and notes with longer maturities. This came after investors demanded higher returns due to the increased inflationary risk resulting from the U.S. and Israeli war against Iran. The U.S. Dollar was hovering near three-month lows. Ilya Spirak, global macro head at Tastylive said: "There's going to be a certain amount of digestion in the markets after such a large move." The $4,400-$4,500 price range is now cleared. The upward trend is likely to continue if prices remain above this price range. The total U.S. outstanding debt surpassed $40 trillion for the very first time. This prompted new warnings about a?fiscal emergency. Edward Meir is a Marex analyst. He said: "The increased concern over the financial stability of markets with debt and borrowing, and the inability to reduce spending on the fiscal side are very bullish for the gold." Minutes of the meeting showed that concerns over inflation were 'deepened' at a Federal Reserve meeting held last month. "Several" policymakers were ready to increase interest rates. According to the CME FedWatch Tool, traders are currently pricing in 69% of a Fed hold and 31% of a rate increase in September. Gold is often seen as a hedge to inflation, but higher interest rates can reduce the appeal of non-yielding gold. Silver spot remained at $66.90 an ounce. Platinum fell 1.4% to 1,798.41 and palladium dropped 0.5% to 1 325.95.
Global yields drop after US Treasury increases debt buybacks
The dollar fell and gold rose on Wednesday, after the U.S. Treasury Department announced it would increase?liquidity assistance for longer-dated bonds, following a widespread sell-off fuelled?by concerns over soaring sovereign debt. The U.S. Treasury Department announced that it would increase the size of its liquidity support buybacks for nominal coupon securities with a longer maturity date to $4 billion from $2 billion.
The yields on long-term government bonds in the United States fell as much as 10 basis point, which also impacted yields on European government bonds. U.S. Long Bonds hit their highest level in almost 20 years, Tuesday, with a rate of 5.34%. This reflects growing concerns over inflation and debt.
Gennadiy goldberg, the head of U.S. Rates Strategy at TD Securities said that this is just one of the many actions the Treasury can take to support the longer end. "A permanent measure would be to reduce the size of long-end auctions."
Treasury began the buybacks on May 20, 2024 in order to improve liquidity?on the $32 trillion Treasury Market. The program allows the Treasury to periodically buy back older, less liquid bonds with newly-auctioned proceeds, or in cash.
When bond prices drop, yields increase. Since long-end sovereign rates are used as a standard for the pricing of almost every other asset, including mortgages, a sharp increase in yields poses a greater risk to the economy.
Stocks rose despite a slight decline in the late afternoon. The Nasdaq Composite rose by 0.16%.?The S&P 500 gained by 0.21%.?And the Dow Jones Industrial Average grew 0.22%. MSCI's global stock index fell 0.05%.
Carol Schleif is the chief market strategist at BMO Private Wealth.
The dollar was impacted by the decline in yields, but gold and cryptocurrency prices were also sharply up -- a divergence indicating growing concern over the U.S. debt trajectory. Investors are often driven to gold and other hard assets by concerns about escalating government debt.
The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) fell by 0.84%, while the euro rose 0.88%, reaching $1.1676. The dollar fell 0.93% against the Japanese yen to 158.15.
Spot gold increased 4.05%, to $4,508,64 per ounce.
Bitcoin rose by 6.06%, to $68,470.91. Ether rose 10.13%, to $2106.22.
HOPES FOR PEACE WITH IRAN DECLINE Crude oil prices reached their highest level in almost four weeks as investors worried over escalating Middle East tensions after the United Arab Emirates suspended all financial and economic dealings with Iran and as the ship traffic through Strait of Hormuz was slow.
U.S. crude climbed 0.77%, to $85.59 per barrel. Brent rose 0.44% to $91.42 a barrel. The cost of borrowing long-term from the U.S. for Germany and Japan has risen as investors become more concerned about inflation and the ballooning debts of the government.
German and French bond yields fell on Tuesday, after earlier reaching their highest levels in 15 years and 18 year respectively.
Jeremy Stretch said that the G10 FX Strategy head at CIBC stated, "What we have seen over the past few days is the obvious selling off of the long end of the bond market, which could be problematic for other asset classes." The Treasury Secretary is aware of the risks and has taken steps to mitigate them. The dollar is cheapening and we see the yields on 30-year U.S. Treasury bonds falling sharply.
The rise of Japan's 10-year benchmark bond yield to 3% is a warning for global debt markets, which have relied for years on low Japanese interest rates to drive a constant flow Japanese investment overseas. The minutes of the Federal Reserve meeting in July, released on Wednesday, showed that concerns about inflation had grown last month. "Several" policymakers were ready to increase interest rates while "many" said a rise in borrowing costs was needed if inflation did not fall to the U.S. Central Bank's 2% inflation target. The Federal Reserve left interest rates on hold in July, but Chairman Kevin Warsh unnerved the markets by giving few hints on how policymakers would respond to persistent inflation.
Since the meeting, traders reduced their bets for a rate hike in September, due to benign inflation data, and a weak July jobs report. The markets now place a 31% probability of a rate hike in September, which will rise to 65% by the end of December.
(source: Reuters)