Energy Markets

For years, the 5% benchmark US 10-year Treasury rate was seen as the threshold at which the global financial markets began to experience turbulence. This threshold is now 'becoming less of a ceiling, and more like an 'approach point. Investors are now forced to consider an unsettling thought: what if the number 6% should keep them awake at night instead of this month's breaching 5%? This theory hasn't been tested enough by the latest move above 5%. Mike Bell, BlueBay Asset Management’s head of Market Strategy, says that it was always a psychological indicator and not a tripwire. Bell explained...

Investors weighed the'simmering Middle East tensions' and prospects of a 'talk between China and the United States. Tokyo's markets opened?after?a three-day break, and the 10-year Japanese government bonds yield shot up to a 30 year high following a sharp sell-off overnight in the U.S. The greenback and oil prices both eased off recent highs after the leader of Iran vowed that they would never give up following Donald Trump's warning to "annihilate Iran". Investors waited for future rate hike signals from central bank speeches, economic releases and U.S. unemployment claims. The market was also focused on a summit between Trump...

Two US Senators from Maine, a state that is heavily reliant upon 'home heating oil', have asked President Donald Trump to tap into the emergency fuel stockpile of the country as diesel prices are soaring and pushing up household costs. In a letter sent to Trump on Tuesday, Senators Susan Collins (a Republican) and Angus King (an independent who is a member of the Democratic caucus) asked him to release the home heating oil held in the Northeast Home Heating Oil Reserve. This would protect Mainers against the high prices which are imposing a financial burden. Collins, who has a...

On 'Wednesday', US shares dropped and 10-year Treasury yields rose to their highest levels since 2007. This was after data revealed that US business activity had risen?to more than five-year highs in September. Fueled by an increase in new orders. S&P Global said that its US Composite PMI Output Index (which tracks manufacturing and service sectors) increased to 58.4 in this month. This is the highest level recorded since July 2021. Will Compernolle is a macro-strategist at FHN. The yields are at multi-year highs due to traders pricing in the possibility of more Federal Reserve interest rate increases, while inflation...

A White House official denied on Wednesday a report that claimed the US was preparing to ban diesel exports for 90 days in order to curb record fuel prices. The price of diesel has risen to a record high of $6.50 per gallon due to the conflict in Iran and Ukraine, which is affecting oil and fuel deliveries. This poses a risk for President Donald Trump as he prepares for the midterm elections. US Energy Secretary Chris Wright stated earlier that such an ban would not be effective and could increase gasoline and jet fuel costs. The US is currently...

US ultra-low sulfur?diesel?futures fell 4% on?Wednesday?after Politico reported the White House was preparing a 90-day ban on diesel exports, which Trump Administration denied. According to AAA, the average US diesel price is nearing record levels at $6.52 per gallon. This puts pressure on farming, transportation, and other industries that depend on this fuel. The wars in Iran and Ukraine has led to a sharp drop in exports by some of the largest?producers, such as Russia and Saudi Arabia. White House officials said that a report that the US is considering a temporary flat export ban wasn't correct. The October futures...

Analysts said that a US diesel export ban would be a self-defeating measure. It would not only do little to ease high US fuel costs, but it could also worsen economic disruptions and supply problems around the world. Donald Trump, the US president, reportedly said on Tuesday that he supported a ban. According to AAA, the average US diesel price has risen to a record $6.51 per gallon. Diesel is essential to the global economic system because it powers the transportation equipment, farm machinery and machinery that makes and moves goods. Fuel prices are high, and they increase the cost...

Masoud Pezeshkian, the Iranian president, told the annual gathering at the United Nations of world leaders on Wednesday that Iran would not surrender to the United States in the war, but that he believes in diplomacy as a way to resolve the conflict. The United States delegation left the room at the beginning of Pezeshkian’s speech. The US'mission at the United Nations didn't immediately respond to an?invitation for comment. The Strait of Hormuz has become the focal point of tensions between Iran, and the US. It was a conduit for a quarter of 'global oil, and liquefied gas, before 'the...

South Texas is a long stretch of highways with flat terrain, dotted with pump jacks and mesquite trees. Gas stations in South Texas have prices that voters say shouldn't be so high. This territory went heavily for Donald Trump in the 2024 election, but could change again in 2026. The trip took us from the outskirts San Antonio to McAllen via historic ranchlands and more than 30 Latinos who all had the same refrain: "as president, Trump missed a great opportunity to lower prices in this vast expanse where trucks and beef barbacoa reign supreme." Many people are not convinced...

Seoul's Presidential Office said that during a 30-minute discussion on the sidelines of the UN General Assembly on Wednesday, South Korean President Lee Jae Myung welcomed "significant progress" on strategic investment projects. The meeting took place after the South Korean Industry Ministry briefed legislators on Tuesday about implementation plans under countries' $350-billion investment package. A Texas gas-fired project was identified as a possible first investment as well as potential investments in nuclear energy, and an Alaskan Liquefied Natural Gas project. National Security Advisor Wi Sung Lac told a press briefing that "the two leaders appreciated the significant progress in discussions...

Oil prices and Treasury yields dropped?in choppy trades as crude flow?throughout the Middle East improved. Micron Technology and other AI-related companies boosted the Nasdaq as AI demand did not show signs of slowing down, while corporate earnings were resilient. Ulrike Hoffmann Burchardi is the chief investment officer Americas, and global head for equities, at UBS Chief Investment Office. The Nasdaq Composite increased 0.45%, while the S&P 500 remained flat and the Dow Jones Industrial Average dropped 0.36%. The MSCI index of global stocks rose by 0.11%. The pan-European STOXX 600 index gained 0.13%. The lower oil prices have increased risk...

Texas Governor Greg Abbott barred the state's Environmental Agency from issuing any new permits for data centers until the governing bodies complete a massive audit on the energy-hungry installations that are seeking to connect to Texas electrical grid. The Republican Governor's directive to Texas Commission on Environmental Quality effectively "freezes" all state-issued data center permits. Texas is one of the fastest growing data hubs worldwide since the artificial intelligence boom started about three years ago. Abbott was prompted by the growing public backlash and concerns about AI to order a review of the data centers and to freeze their connection...

On Wednesday, the US dollar reached its highest level since nearly two months as 'investors' priced in an upcoming rate-hike cycle from the Federal Reserve. Meanwhile, oil prices rose as a result of comments made by 'Iran regarding progress in peace negotiations. Following the rate hike by the Federal Reserve last week, several Federal Reserve officials also hinted at the possibility of further rate increases in the event that inflation continues to rise. Federal Reserve Governor Michael Barr stated on Wednesday that the US central banks took an important step to "recalibrate", short-term borrowing rates to bring down inflation. He...

European stocks rose on Wednesday, as oil prices dropped for the sixth consecutive session. Meanwhile, a new wave of AI optimism boosted tech stocks worldwide. Saudi Arabia has reportedly resumed operations on its East-West Pipeline. It may have also re-started exports through the Red Sea port of Yanbu. US President Donald Trump said that talks with Iran had progressed in New York, but threatened to "annihilate the country" if an agreement was not reached. Brock Weimer is an analyst at Edward Jones. He specializes in investment strategy. The markets are watching reports that he may hold discussions with Trump. The...

On Wednesday, Asian shares aimed for a sixth consecutive session of gains as the consumer appetite for AI apps continued boosting tech stocks. Meanwhile, oil prices dropped further due to'reports about increased supply from the Middle East. Saudi Arabia has reportedly resumed exports through the Red Sea port Yanbu and may already have done so, according to sources. US President Donald Trump claimed that talks with Iran had progressed in New York, but threatened to "annihilate the country" if no deal was reached. The markets are agog at reports that he could hold talks with Trump. Brent futures fell 0.9%...

Tuesday, the Nasdaq's tech-heavy index hit an intraday high for the first time since?June. Meanwhile, oil prices fell to their lowest levels in two weeks as signs of a?improvement?in supply?in the Middle East. The tech stocks have regained the spotlight, as AI demand shows no signs of slowing down and corporate earnings remain resilient. Ulrike Hoffmann Burchardi is the CIO Americas at UBS and global head of Equities. She said: "We continue to maintain a positive outlook on AI, supported by increasing adoption and monetization as well as rising capital spending." The Nasdaq Composite increased 0.40% to 27,231.59, while the...

Global stocks rose Monday, as new evidence of booming AI demanded lifted tech shares. Oil fell?on news that more oil was leaving the?Gulf, despite ongoing conflict, than previously believed. The bond market has recovered after a six-week slump in the previous week, amid high interest rates and persistently high oil costs. European debt led the rally. The MSCI All-World Index rose by 1.03% while European shares gained 1.12%. The Nasdaq Composite gained 1.62%, the S&P 500 gained 1.05 % and the Dow Jones Industrial Average rose by 0.49%. Intel gained 13% among chipmakers, Advanced Micro Devices soared 9.2%, becoming the...

On?Monday, Asian share markets rose as AI's demand for data boosted chipmakers. Oil eased on hopes that Saudi Arabia would boost its supply to offset news of the Houthi attack in?Riyadh. The Silver Week holiday in Japan has been a slow one, with little trade. As a result, the dollar remained at 157.00yen on Wednesday. Investors were wary that the Bank of Japan might take advantage of this lack of liquidity and intervene to support its currency. Nikkei reported that the yen rose on Friday, after Japanese authorities checked the rate of the currency market. South Korea's technology-heavy index, the...

Tom Westbrook gives us a look at what the future holds for European and global markets. As expected, the Bank of Japan increased interest rates. However, it lowered the yen's value by sounding less hawkish than other central banks. The 'hike', which comes just three months after the last rate increase, is a significant break from the pattern of twice-yearly increases. Even Friday's decision was dovish, with two dissenting voices. By the middle of next summer, it is expected that US interest rates will increase by three. Two more are expected for Japan. The?newsconference of BOJ Governor Kazuo Ueda will...

High spot prices are deterring buyers from China and South Asia, resulting in Asia's lowest September imports in eight years. According to data compiled by Kpler, the top-importing continent will see arrivals of?20.09 million tons of super-chilled gasoline in September. This is the lowest figure for this month since September 2018 when 19.88 million arrived. Asia's imports have dropped?from 22.27 millions tons in September of last year and also from 22.25 in August. The slump in Asian LNG demand has freed up cargoes to Europe, where it is struggling to store enough natural gas ahead of the winter. The European...

Stella Qiu gives us a look at what the future holds for European and global markets. It turns out that the man?Trump hired for a rate cut actually raised rates instead. Kevin Warsh, the Fed's chief economist, delivered the first rate hike in over three years. He did it in lock-step with his colleagues. Warsh did not provide any forward guidance after the Fed’s last rate decision. He insisted he would not fixate on a single data point. The markets are aware that hikes can be like cockroaches. If you see one there's probably more behind the wall. The dot...

Treasury yields on 10-year U.S. Treasury notes have risen to their highest level in 19 years. This is just as Treasury Sec. Scott Bessent is preparing to speak to Congress, and the Federal Reserve begins its two-day critical meeting. Government bonds sold across the globe overnight as the prospect of rising interest rates and energy prices remained a primary aggravating factor. Japanese 10-year yields rose back to above 3%. Brent crude prices rose above $107 a barrel again on Tuesday after a brief drop on Monday, following President Trump’s suggestion that Russia and Ukraine could reach an agreement to spare...

Asian shares struggled on Tuesday, as investors considered Middle East tensions. Industry figures also called for a halt in AI development. Meanwhile, higher oil prices and bond yields heightened caution ahead of 'key' central bank meetings taking place in the U.S. Yemen's Houthis, who are aligned with Iran, launched a new offensive on Saudi Arabia Monday. Riyadh had blamed Iran-backed fighters based in Iraq for an assault on the east-west oil pipeline of the kingdom that could disrupt up to 4% global supply. Gulf Arab states have also delayed planned talks with Iran. Brent crude was up by 1.21% at...

Singapore, Asia's main fuel trading hub, has seen its oil product stockpiles rise to a two-month high, according to government data released Thursday. The increase in stocks of light and middle distillates was also noted. Enterprise Singapore reported that the combined onshore oil products inventories stood at 40.47 millions barrels for the week ending September 9. This compares to 39.04million barrels one week earlier. Multiple?trade sources this week said that September exports to Asia are expected to remain robust for diesel and jet-fuel, but may slow down for gasoline because of margin concerns. Diesel was the major concern in some...