Energy Markets

After U.S. president Donald Trump announced that he had made a decision on his choice to head the Federal Reserve, reports pointed towards Kevin Warsh. While?Warsh is a former Fed Governor, and advocate for lower interest rates, it is considered that he is one of the more moderate choices of all the names raised. He is perhaps less aggressive on monetary stimuli than other candidates. The MSCI broadest Asia-Pacific index outside Japan fell as much as 1,4%. This was the largest one-day drop in the last month. S&P 500 futures fell 0.7% and Nasdaq futures dropped 0.9%, after it was...

Donald Trump, the U.S. president, threatened new tariffs against countries that supply oil to Cuba on Thursday. This is part of a pressure campaign aimed at the Communist-run island and long-time enemy of the United States. The executive order, which was issued under the national emergency declaration, did not specify tariff rates, nor did it single out any specific countries whose goods could be subject to U.S. duties. Cuba's state media reacted'shortly' after Trump's announcement. They warned that the order could paralyze electrical generation, agricultural production, water supply, and health services in an island already experiencing a crippling financial crisis....

Valero Energy announced on Thursday that it had 'purchased' Venezuelan crude oil from authorized sellers. The company expects this grade to be a major part of the heavy oil diet for its refineries as soon as next month. U.S. refining companies are expected to gain from President Donald Trump’s efforts to increase oil production in Venezuela and to rebuild the country’s deplorable oil sector after the capture of Nicolas Maduro this month. Valero said that it had engaged with all three authorized sellers, and bought barrels from each of them. This was in an email sent to customers on Thursday...

On Thursday, oil prices rose 3%, reaching a five-month peak. This was due to growing concerns about the disruption of global supply if the U.S. attacked Iran, one OPEC’s largest crude producers. Brent futures gained $2.31 or 3.4% to settle at $70.71 per barrel. U.S. West Texas Intermediate gained $2.21 or 3.5% to settle at $65.42. This pushed both crude oil benchmarks into technical overbought terrain, with Brent closing?its?highest level since July 31, and WTI closing its highest level since September 26. Multiple sources claim that U.S. president Donald Trump is considering options against Iran, including targeted strikes on leaders...

U.S. refining company Valero Energy kicked off earnings season in the U.S. on Thursday with strong profits for the?fourth quarter,? thanks to a rebound of margins and a higher volume. Fuel manufacturers have made unexpected profits in the third quarter. Product margins, largely driven by the ongoing Russia-Ukraine conflict, recovered from multi-year lows that were seen in 2024, when earnings dipped from their post-pandemic peak. The San Antonio-based company reported that its refining margin increased by over?61% compared to a quarter ago, reaching $13.61 per barrel. Its average throughput volume also rose, from 2.9 million barrels per days a few...

Dow will cut 4,500 jobs or 13% of its total workforce as part of a massive restructuring designed to boost profitability by at least $ 2 billion. However, the company's first-quarter revenues are expected to be below expectations due to persistently low demand. In the morning of Thursday, shares of the company dropped 5.8%. On a call after earnings, executives said that the job cuts would also reduce the roles and resources of third parties. The company is using automation and AI in order to improve efficiency and lower costs. Chemical producers around the world are reevaluating their strategies due...

Wayne Cole gives us a look at what the future holds for European and global markets. Who would have thought that building AI could cost so much? Microsoft and Meta both reported a staggering amount of money spent on capex. Microsoft spent almost $38 billion during the first quarter, a two-thirds increase over the previous year. Meta increased its capital expenditure plans by 73% for this year, to a range of between $115 billion and 135 billion. Investors reacted to these plans very differently, knocking $240 Billion off Microsoft's value and lifting Meta $140 Billion. Microsoft's drop in value was...

Energy analysts expect top U.S. refiners to report stronger profits in the fourth quarter as margins boosted by the Russia-Ukraine conflict?boosted earnings. Fuel producers have made unexpected profits after their earnings had slid in 2022. That was the year that a'recovery in demand after the pandemic, and Russia's invasion in Ukraine, drove up fuel prices. In a recent note, Tudor, Pickering, Holt & Co's Matthew Blair stated that the main reason for diesel margins was Ukrainian drone attacks on Russian refineries, which affected global supply. He said that the widening differentials between Brent, the global benchmark crude oil price, and...

The U.S. announced on Wednesday that it is requesting input from U.S. state governments on their interest in hosting a site for the development of nuclear fuel lifecycles, including storing nuclear wastes and spent fuel reprocessing. The U.S. Energy Department calls these sites Nuclear Lifecycle Innovation Campuses. They could provide federal funding for the deployment of advanced reactors as well as co-located computer centers. Campuses could be used to enrich uranium. By April 1, the department is seeking input from all states. Donald Trump is looking to quadruple the U.S. nuclear power capacity to 400 gigawatts in 2050, as electricity...

On Wednesday, oil prices were mixed. Brent was down slightly while the U.S. contract edged higher. Supply concerns increased after a winter storm disrupted production and stopped Gulf Coast exports at the weekend. Brent crude futures dropped 6 cents or 0.1% to $67.51 a 'barrel' by 0122 GMT. U.S. West Texas Intermediate Crude rose 4 cents or 0.1% to $62.43 a 'barrel. Both benchmarks rose by about 3% Tuesday. Analysts and traders estimate that U.S. oil producers lost as much as 2 million barrels of crude oil per day, or 15%, over the weekend due to the storm straining the?energy...

Dollar?was near multi-year lows Wednesday after investors aggressively sold it when?U.S. Donald Trump appeared to dismiss its recent decline while Wall Street?marched to new record highs. The plunge in the dollar has pushed the euro above $1.20, the Australian dollar to a record high of 70 cents, and the gold and commodities prices that are measured in dollars have risen sharply. The ailing yen accelerated away from recent lows before trading settled in the morning hours of the Asia session. When asked by a reporter if the dollar had dropped too much recently, Trump replied "Dollar is doing great." Before...

Four people who are familiar with these reports in recent days have expressed doubts that interim Venezuelan president Delcy Rod will cooperate with Trump's administration by cutting off ties to U.S. enemies. Officials of the United States have publicly stated that they want Venezuela's interim president to cut ties with allies such as Iran, China, and Russia. They also want their diplomats and advisors expelled from Venezuela. Rodriguez, who was sworn in by the representatives of these countries at the beginning of this month, has not yet publicly announced such a decision. She was elected president on January 3 after...

Even though oil prices rose 15% in January on the back of fears that a new U.S. attack on Iran was imminent, they remain in a narrow range. A well-supplied oil market makes it unlikely that either side will be able to push prices higher. It would take a massive, sustained action to make a significant impact on the global supply-demand imbalance. Brent crude futures are at their highest level since July?last year. This puts the global benchmark in line for its largest monthly gain since January 20,22, when Russian troops were preparing to enter Ukraine. A series of major...

U.S. president Donald Trump said that it was dangerous for Britain to get into Business with Beijing On Friday, Prime Minister Keir starmer visited China and lauded its economic benefits. Starmer, the latest Western leader to visit?China as they reel from Trump's unpredictable behavior, is the latest. In a three-hour 'talk' with President Xi Jinping, on Thursday, British Prime Minister David Cameron called for a'more sophisticated relationship, with better market access, lower taxes and investment deals, while also discussing Shakespeare and soccer. Trump responded to questions in Washington about the close ties by saying, "Well it's dangerous for them to...

Tokyo Electric -Power announced on Thursday that its subsidiary TEPCO Power grid will "sell" up to 26 million shares of its Kandenko affiliate as part restructuring efforts to improve the financial health of its company and pursue growth. The sale of shares, which is valued at approximately 150 billion yen (979 million dollars) based on Kandenko’s closing price on Thursday, forms part of Tepco’s plan, announced on Monday, to raise?about?200 billion yen by selling assets over the next three-year period. Tepco stated that the proceeds will be used to?capital invest in order to maintain a stable supply of electricity and...

Analyst and traders say that Russia's naphtha shipments to Asia will fall in January as U.S. sanctions force key buyers such as Taiwan, India, and Venezuela to find new markets. After Washington imposed sanctions against top Russian oil producers the buyers have become more cautious. Sellers are forced to store naphtha in foreign storage or on ships, where it can then be re-exported. Armaan Ashraf is the director of Asia oil and natural gas liquids at FGENexant. He added that this means that premiums for "legitimate barrels" of heavy full range naphtha or?discounts to Russian cargoes would widen. Russia exports...

The dollar took a breather on Wednesday, after a sell-off became a rout. U.S. president?Donald Trump appeared to dismiss recent weakness in the global reserve currency. Meanwhile,?stocks? scaled record highs due to optimism over earnings. The dollar's plunge lifted the euro above $1.20, the highest level since 2021. It also sent the Australian dollar to a 3-year high of 70 cents, lifted gold prices to new heights, and increased commodity prices, which are measured in dollars. The dollar clawed back to 152.76 yen in the Asia session, after which trade settled. Dollar selloffs are the most severe since Trump's tariff...

Stella Qiu gives us a look at what the future holds for European and global markets. Donald Trump has done it again. The U.S. president suddenly announced that he would raise tariffs against South Korea from 15% to 25% for failing to implement the trade agreement agreed in July. This?affects? autos, lumber, and pharma. Yet, stocks in South Korea jumped by 2%, to new record highs. South Korea's KOSPI fell over 1% initially, but this only attracted buyers who wanted to gain exposure to Asia’s best-performing markets of 2025. There is a good chance that the tensions will de-escalate, as...

Investors hoped that a barrage?U.S. Mega-cap earnings were a big factor, but uncertainty due to President Donald Trump's tariff moves against South Korea capped broader gains. Trump increased tariffs to 25% on autos, lumber, and pharmaceutical imports to the U.S. from Asia's 4th-largest economy. The Nasdaq Futures rose 0.2%, as investors prepared for the earnings of the Magnificent Seven, including Microsoft, Apple, and Tesla, on Wednesday. Even South Korea's KOSPI reversed earlier losses and was last to gain 0.8%. Silver surged 6.4% to $110.60 per ounce and is not far off the record set just on Monday. Christopher Louney is...

China's securities regulator announced that foreign investors can now trade an additional 14 options and futures products, giving them access to two major Chinese commodity exchanges. The Shanghai Futures Exchange opened its doors to foreign investors. Prior to this, both exchanges were closed to foreign investors. The regulator announced in a statement on Friday that other contracts included petrochemicals listed on the Zhengzhou Commodity Exchange?and three energy options and metals listed on the Shanghai international Energy Exchange?. China is the largest consumer of commodities in the world. It has been eager to use the yuan more and increase the financial...

By Anna Szymanski What Mike Dolan, the ROI team and I are looking forward to reading, watching and listening to this weekend. From the Editor Hello Morning Bid readers! Greenland will soon be a "piece of ice", but the Arctic saga of this week is still significant. This week's Arctic saga is a reminder that President Donald Trump will always find a way out, even when it didn't seem possible a few hours ago. It also shows that no deal made with the U.S. should be regarded as final. The major U.S. equity indexes suffered their largest one-day percentage drop...

Tom Westbrook gives us a look at what the future holds for European and global markets. The Bank of Japan only did enough to keep the yen stable in the Asia session. They also boosted inflation forecasts, but this didn't deter the market from expecting two rate hikes for the year. Dollar was also under pressure in general as investors may have anticipated that the Greenland drama of the past week will make the U.S. less attractive as an investment destination. The world's net long U.S. positions total $27,6 trillion. This leaves a lot of room to trim. After retracting...

Asian stocks continued to lose ground on Wednesday. This was largely due to the heightened tensions surrounding U.S. threats of acquiring Greenland in advance of President Donald Trump’s Davos address, while Japanese bonds bounced back sharply after a recent meltdown. The fear of the "Sell America" trade, which emerged in the wake of last year's "Liberation Day tariff announcements" in April, gripped the markets overnight as Wall Street fell over 2% and the U.S. Dollar suffered its largest fall in more than a month. This sent investors running to gold. It soared by 2.1%, reaching a record high of $4,865...

Tokyo Electric Power (TEPCO), after completing inspections, will restart a reactor on Wednesday at the?Kashiwazaki - Kariwa?nuclear plant. This is its first move of this kind since the Fukushima nuclear disaster in 2011. TEPCO announced that it would bring online the 1,36 gigawatt reactor (GW) No. 6 after 7 pm (1000 GMT). The reactor No. 6, which is one of seven in Kashiwazaki-Kariwa's nuclear power plant, can produce 8.2 GW at full capacity. TEPCO investigated an alarm malfunction. TEPCO reported that the equipment was working normally as of early Wednesday morning. Reactor No. Reactor No. Reactor No. Reactor No. 7...