Energy Markets

After three days of declining prices, oil prices rose on Friday on concerns about an excess of supply and a slowing in demand in the U.S. Prices are still set to fall for a second consecutive week. Brent crude futures increased 28 cents or 0.44% to $63.66 per barrel at 0421 GMT. U.S. West Texas Intermediate Crude was up 29 cents or 0.49% at $59.72 per barrel. Brent and WTI will fall by about 2% in the coming week. This is the second consecutive week that Brent and WTI have fallen, due to major global producers increasing their output. Tony...

Investors are uneasy with the pace of the artificial intelligence stock rally, and have shifted their focus to safer assets like bonds and the Japanese yen. S&P 500 and Nasdaq futures firmed up a bit in Asia's morning. However, overnight the Nasdaq fell 1.9%. The world's largest tech index has fallen 2.8% this week. If that trend continues, it would be the biggest drop in a single week since March. This is a shock for an juggernaut which had gained more than half its value from the lows reached when tariffs were first announced in April. In morning trading, Japan's...

Alliant Energy increased its capital expenditure plan for the next four years on Thursday as it bets that demand for electricity will continue to rise. Utilities must contend with a surge in demand for power from data centers that are dedicated to artificial-intelligence operations and cryptocurrency. U.S. utilities have added billions to their investment plans in order to fund upgrades to critical infrastructure such as power lines and electrical grids. Alliant has increased its contracted data center energy demand by 3 gigawatts. It also expects to see a 50% increase in peak energy consumption by 2030. Lisa Barton, CEO, said:...

Industry sources report that Russian oil has been trading at the steepest discount to Brent for an entire year in Asia as refiners in India and China reduce their purchases in response to new U.S. sanction against leading Russian producers. According to four sources in the Russian oil supply chain involved in trading and refining, the price gap between Brent for December arrival and Russia's Urals crude has widened from $2 to $4 per barrel, which is the largest discount in a little over a year. These discounts, while less severe than the ones seen in 2022 after the first...

Vistra Corp forecast adjusted core profit for 2026 higher than the outlook it gave this year. This reflects its confidence in its expanding power generation portfolio, and its strong demand throughout U.S. market. As it expands its gas-fired energy and clean energy capacities, the Texas-based electricity company expects an adjusted EBITDA of between $6,8 billion and $7.6billion in 2026, up from a forecast range for 2025 of $5.7 to $5.9billion. Vistra's Board also approved an extra $1 billion worth of share buybacks. According to the U.S. Energy Information Administration, a surge in AI- and cryptocurrency-based data centers combined with the...

DuPont announced that it would raise its core earnings forecast for the full year and announce a share repurchase program of $2 billion after reporting earnings in the third quarter which exceeded Wall Street expectations, due to strong demand from electronics, healthcare, and water markets. The industrial materials manufacturer's forecast increase and share repurchase program, announced on Thursday, demonstrate confidence in the company's strategy to refocus its efforts on high-growth markets such as technology and water following the planned separation and divestiture of the Qnity electronics division and Aramids. The company will rely on the strong demand for semiconductors, biopharmaceuticals...

DuPont, a maker of industrial materials, forecast sales and adjusted profits for the current quarter below Wall Street expectations on Thursday. This was due to its planned spin-off of Qnity Electronics and Aramids divestiture. Wilmington, Delaware based company is undergoing a strategic restructuring and trying to streamline its product portfolio. The chemicals industry is struggling with rising feedstock and energy prices. The industry is also affected by the lack of demand, particularly in Europe where strict regulations have increased the costs of manufacturing. DuPont announced in August that it would sell Aramids (which includes brands like body armor maker Kevlar)...

Donald Trump, the U.S. president, will host five leaders from Central Asian countries at the White House this Thursday. The U.S. is seeking to gain influence in the region that has been dominated for decades by Russia but increasingly courted and influenced by China. The talks are taking place as the competition for Central Asia’s mineral resources intensifies. Western nations want to diversify their supply chains and move away from Moscow or Beijing. The U.S., in particular, is seeking new partnerships to secure vital minerals, energy supplies and overland trading routes that circumvent geopolitical competitors. The C5+1 platform, which was...

Google's biggest deal to remove carbon emissions involves financing the restoration of Amazon rainforests with Brazilian startup Mombak. This comes as big tech searches for high-quality credits that can offset emissions from energy-hungry data centres. Companies said the deal would offset 200 metric tons carbon emissions. This is four times more than a pilot agreement signed in September 2024 between Google and Mombak, its sole supplier of forestry credits. Both companies declined comment on the deal's value. The agreement shows how big tech wants to mitigate the climate impact of its massive investment in data centers that use a lot...

Rae Wee gives us a look at what the European and global markets will be like tomorrow. The Bank of England announced its interest rate decision Thursday. What had seemed to be a simple hold, is now being scrutinized. The markets are now pricing in a nearly one-in-3 chance that the rate will be cut to 3.75%. This is up from one-in-10 a month earlier. The UK's 3.8% inflation rate is the highest of the Group of Seven advanced economies. However, a steady reading, and a cooling labor market, have shown some signs of a easing of inflationary pressures. The...

Ameren Corp, an utility company, beat Wall Street expectations for its third-quarter profits on Wednesday. It also raised its profit forecasts for the year citing increased rates and strong demand. U.S. utilities are seeking higher rates due to the extreme weather conditions and the growing demand for data centers. According to a study backed by the Department of Energy, the power demand for data centers is expected to triple within the next three to four years. This could consume up to 12% of all electricity in the U.S. Ameren expects a 2025 adjusted profit between $4.90 and $5.10 per common...

The major stock indexes rose on Wednesday, as U.S. payrolls and corporate earnings were better than expected. Treasury yields also increased following the economic data of the day. According to a survey of economists, the private payrolls in the United States increased by 42,000 positions in October. This was more than double what most economists expected, which was a gain of 28,000 jobs. Some industries, such as professional services, have lost jobs for the third consecutive month. In addition to the payroll numbers for private employers, data revealed that U.S. service sector activity increased in October due to a strong...

Customs data released on Friday showed that China's imports of coal in October were down 10% from the previous year, due to a holiday which reduced the number working days during the month. Imports will be supported in 2025 by the winter restocking of products during the last two months. Imports in October fell from 46.25 to 41.74 millions metric tons, a drop of almost ten percent. Imports in September reached 46 million metric tonnes, a record high for nine months. Feng Dongbin is vice-general manager of Fenwei Digital Information Technology. He said that imports decreased sequentially, and also from...

Donald Trump, the U.S. president, will host five leaders from Central Asian countries at the White House this Thursday. The U.S. is seeking to gain influence in the region that has been dominated for decades by Russia but increasingly courted and influenced by China. The talks are taking place as the competition for Central Asia’s mineral resources intensifies. Western nations want to diversify their supply chains and move away from Moscow or Beijing. The U.S., in particular, is seeking new partnerships to secure vital minerals, energy supplies and overland trading routes that circumvent geopolitical competitors. The C5+1 platform, which was...

HSBC released a new set of climate targets on Thursday that are softer and more flexible for near-term sectors like oil and gas. This is in response to the slow rate of change in real economy. The targets for the end of the decade follow a review that was announced by British bank earlier this year, when it dropped its goal to reach net-zero emissions in all of its operations by 2030. HSBC is still aiming for its operations, funded by the loan book, to produce zero emissions by 2050. It and other banks who have set similar climate goals...

According to documents and shipping data from the state-owned firm PDVSA, Venezuelan oil exports fell 26% in October to 808,000 barrels a day as its stocks decreased and it imported fewer volumes of diluents for exportable crude grades. Exports from the OPEC nation reached a 5-year high in Septembre, after being boosted in part by a stable crude oil production of around 1.1m bpd. Also, robust imports of naphtha and light crude - mainly from Russia – earlier in the year were made to reduce its heavy oil output. The data and documents revealed that imports dropped to 41,000 bpd...

The dollar was near its three-month-high versus the Euro due to the fading expectations of a large U.S. interest rate cut. Amazon shares rose more than 4% after the multi-year, $38 billion Amazon OpenAI deal. As expected, the Federal Reserve cut interest rates last week. Jerome Powell, the chair of the Federal Reserve, said that another rate cut in December is "not a certainty", contrary to what investors believed. On Friday, some Fed officials expressed their dissatisfaction with the central banks decision to lower rates. Meanwhile, influential Fed Governor Christopher Waller argued for further policy easing in order to support...

Ankur Banerjee gives us a look at what the future holds for European and global markets The markets are still recovering after a week of action packed events that have left the risk momentum intact. This week, the focus has shifted on a few private economic data that could shed light on the state of the U.S. labor market. The U.S. government shutdown is expected to continue, and there will no longer be any economic data from the government. So, no nonfarm payrolls, no JOLTS job openings. Investors will instead analyze private employment data provided by ADP in order to...

The Nigerian Government on Saturday pledged to continue fighting violent extremism, and expressed hope that Washington would remain an ally. President Donald Trump had added the West African country to a U.S. Watch List over what he called threats to Christianity. The Federal Government of Nigeria continues to defend its citizens regardless of their race, religion, or creed. "Like America, Nigeria cannot help but celebrate our diversity as it is our greatest strength," said the Ministry of Foreign Affairs in a press release. The ministry said that Nigeria is a country of God-fearing people who respect tolerance, faith, diversity, and...

The dollar rose after some Federal Reserve officials made hawkish remarks. Global stocks are on track for their third consecutive week of gains, and seventh consecutive month. Earnings from Apple and Amazon megacaps eased concerns about high valuations. Amazon soared by about 11% following the announcement that cloud revenue grew at the fastest rate in almost three years. This allowed the company to forecast quarter sales above expectations. Apple shares climbed to $271.76 after paring gains from an intraday high of $277.32. The company reported quarterly earnings, forecast holiday-quarter iPhone and overall revenue which exceeded Wall Street expectations due to...

The prices of the main grades in seaborne thermal coal have been recovering modestly from their four-year lows. However, the gains come at the expense of volume as major importers reduce demand. According to analysts DBX Commodities, China, India and South Korea are on course for lower coal arrivals in September than October. The prices of the main Australian and Indonesian grades have been rising since early June after a downward trend that began in October 2023. The lower prices in July and August did increase import demand, but the higher prices are now causing buyers to pull back. DBX...

China's car industry has been a major disruptor of the global automaker industry for the last decade. Its electric vehicle producers have replaced combustion engine cars at home, and have also flooded the global market with record exports. The country may have to reverse its electric vehicle exports and output following a major policy shift that will reduce EV subsidies in the upcoming five-year plans. China's top industrial policymakers have omitted electric cars from the list of strategic industries in their 2026-2030 Development Agenda, China's main industrial strategy blueprint. Industry analysts interpret the omission as Beijing's willingness to let the...

Kansai, Japan's largest nuclear power company, revised its profit forecasts for the fiscal year that ends in March next year by 65 billion yen, to 360 billion ($2.4 billion), due to an increase in electricity demand. Kansai, a company in which activist investor Elliott from the United States has recently become a major minority shareholder, raised its forecast for the full year dividend to 75 yen, up from 60 yen. The nuclear capacity factor (which measures how much of total nuclear power capacity available is actually used) was left unchanged at around 80% from the previous forecast. Kansai's net profit...

BHP, world's largest miner, and South Korean Steelmaker POSCO announced on Thursday they had signed an agreement for the advancement of the production "near-zero emissions" iron. This is a major step towards manufacturing green steel. Iron will be produced in a demonstration facility at POSCO’s steelworks, located on the port side of South Korea’s city of Pohang. The process is based on hydrogen and uses an electric smelting oven. Construction will begin shortly, with the commissioning scheduled for 2028. The plant is expected to be able to produce 300,000 tons of molten metal per year. According to the International Energy...