Energy Markets

The International Energy Agency stated on Thursday that the world oil supply would rise faster than expected in 2018, as OPEC+ member countries increase their output and the supply from outside of the group increases. It also suggested that a surplus may grow by 2026. The IEA, a consultancy for industrialised nations, has said that the supply will increase by 2.7 millions barrels per day in 2025. This is up from 2.5million bpd, as previously predicted. And by a further 2.1million bpd in next year. OPEC+ has added more crude oil to the market since the Organization of the Petroleum...

DTEK, a Ukrainian private energy company, announced on Thursday that it has built the largest battery storage facility in the country to ensure stable electricity supplies as a result of Russian attacks against Ukraine's energy industry. Russia is attacking Ukraine's energy system and denying millions of Ukrainians power. It launched a full scale war against Ukraine 2022. DTEK reported that its total investment for the project was 125 million euro ($146.13million). It said that six battery storage systems were connected to the electricity grid in Kyiv, the capital of Ukraine, and the Dnipropetrovsk region in eastern Ukraine. The combined facilities...

The oil prices fell a little on Thursday due to a weakening demand in the United States, and a general oversupply risk. This was in contrast to the concerns over the attacks in the Middle East as well as the Russian war in Ukraine. Brent crude futures fell 14 cents or 0.21% to $67.35 a barge by 0433 GMT. U.S. West Texas Intermediate Crude futures dropped 15 cents or 0.24% to $63.53. The benchmark contracts increased by more than $1 on Wednesday, following Israel's attack the day before on Hamas leaders in Qatar. Poland also scrambled their own air defences...

Democratic U.S. legislators on Wednesday called for President Donald Trump's cancellation of a plan that would make surplus plutonium derived from Cold War era atomic weapons available to nuclear power operators as fuel, citing a proliferation threat. In May, Trump signed executive orders that directed the government to stop a large part of its current program to dilute plutonium and dispose of it and to instead use it as fuel for advanced nuclear technology. The administration announced last month that it would make about 20 metric tonnes of plutonium, which was derived from decommissioned nuclear warheads, available as fuel for...

The Energy Information Administration reported on Wednesday that U.S. crude oil and fuel stocks rose during the past week, despite a drop in demand and exports. The EIA reported that crude stockpiles increased by 3.9 millions barrels, to 424.6million barrels for the week ending September 5. This was compared to analysts' expectations of a drawdown of 1 million barrels. The EIA reported that crude stocks at Cushing, Oklahoma's delivery hub, fell by 365,000 barges in the past week. U.S. crude oil exports dropped by 1.1m barrels per day, to 2.8m bpd. Meanwhile, net crude imports increased by 668,000 barrels a...

In a telephone call with her Indian counterpart Narendra Modi on Wednesday, Giorgia Mello praised the "excellent" relations between her country and India. She did not mention U.S. demands that the EU impose tariffs up to 100 percent on Indian imports. Officials claim that Donald Trump, the U.S. president, asked the European Union to impose new import duties on China and India this week as part of an effort to pressure Russia, the main oil supplier for both nations. The Italian Premier's Office said that Meloni, Modi, and their respective offices reaffirmed the commitment to deepening cooperation in trade, investment,...

A government document published on Wednesday showed that Russia was considering a moratorium for bankruptcies within the metals sector. This is a sign of increasing concern over a struggling industry battling with falling demand and high interest rates, as well as a strong rouble. In the document, which was a protocol of the meeting held by the Financial Stability Commission on August 28, the ministry of economy and the ministry for industry were asked to submit proposals on October 28 regarding the feasibility of a ban on bankruptcy in the sector. Kommersant was the first to report on this news....

Phillips 66, a U.S.-based refiner, announced on Tuesday that it would acquire the remaining 50% of WRB Refining shares from Cenovus for $1.4 billion. This will give it complete ownership of two major U.S. refining plants. WRB includes Wood River Refinery in Illinois, and Borger Refinery in Texas. These refineries have a combined capacity of 495,000 barrels a day (bpd) for crude oil. The refineries, which would add approximately 250,000 bpd of net refining to Phillips 66’s capacity, can process both heavy and medium sour as well as sweet crudes and produce a large percentage of transportation fuels. Phillips 66...

Ship-tracking data revealed that a third tanker carrying natural gas liquefied from Russia's Arctic LNG 2 project, sanctioned by the United Nations, arrived in a Chinese port Tuesday. According to Kpler, a provider of ship tracking data and LSEG, the sanctioned Russian gas tanker Zarya has arrived at Tieshan's LNG terminal in China's southwest province of Guangxi. LSEG data shows that the cargo is larger than 160,000 cubic metres and was loaded at Arctic LNG 2 in Gydan, northern Siberia, on July 30. The Arctic Mulan tanker delivered the first cargo of the project sanctioned in late August. Second cargo...

The crude oil market is now expecting a decline in prices. At the largest gathering of the industry in Asia, the discussion was more about timing rather than direction. The outlook for prices is the main topic of discussion and presentations at the annual APPEC Conference. This week was no exception. The market has changed and this year the bull was the least sighted amongst a sea full of bearish participants. The two factors that dominated APPEC, despite the fact that there are many other factors that influence crude oil prices were the decision of OPEC+ not to continue to...

China's sales of hybrids and electric vehicles in August grew at their slowest rate in over a year and a half as the government continues to try and stop punishing price wars. China Passenger Car Association's data on Monday showed that EV and hybrid car sales surpassed gasoline car sales for the sixth consecutive month in August. However, annual growth has slowed to 7.5%, down from 12.5% in July. This was the lowest gain since February 2024 when the segment recorded an 11.6% decline in sales due to the shifting timings of a week-long Chinese holiday. Last month, the total...

Goldman Sachs forecasted a slight increase in oil surplus by 2026 as improvements in supply in the Americas will outweigh Russia’s downgrade, and any improvement in global demand. The U.S. Investment Bank kept its Brent/WTI 2025 price forecasts unchanged and projected averages for 2026 at $56/$52 per barrel. "Risks in our 2025-2026 forecast are both upside and downside, but slightly skewed to the top," it said. OPEC+ - which includes the Organization of the Petroleum Exporting Countries, Russia, and other allies - agreed on Sunday that oil production would be increased from October, as Saudi Arabia, its leader, tries to...

Elliott Management, an activist investor and Kansai electric power shareholder, has said that the Japanese utility can become a better long-term investment if it sells non-core assets, boosts profitability, and increases shareholder returns. Elliott is now one of the three largest shareholders in Kansai, Japan's largest nuclear power company by number of reactors online. The stake, which ranges between 4%-5%, was disclosed on Wednesday by a source familiar with the situation. In a Wednesday statement released from London, Elliott stated that it looked forward to working closely with Kansai's management team and other key stakeholders in order to enhance the...

EU sources say that the European Union will not impose tariffs on India and China, which are the two main buyers of Russian crude oil, as the U.S. president Donald Trump has asked the bloc to. This week, an EU delegation including the EU's Russia sanction chief flew to Washington to discuss the ways in which the two sides could coordinate sanctions against Russia for its full-scale invasion into Ukraine. Officials have said that Trump has urged the EU, to hit India and China up to 100% with tariffs to put pressure on Russian president Vladimir Putin who depends on...

Malaysian palm futures were little changed on Tuesday, as edible oils traded in Dalian and Chicago sideways. Market participants also awaited the Malaysian Palm Oil Board's (MPOB) data that was due the following day for clues about inventories and demand. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for delivery in November gained 1 ringgit or 0.02% to 4,489 Ringgit ($1,067.28) per metric ton. A survey shows that Malaysian palm oil inventories will rise for the sixth consecutive month in august, as production continues outpacing exports, despite an improvement in demand. Darren Lim is a commodities...

Rae Wee gives us a look at what the European and global markets will be like tomorrow. Politics is never quiet. In the last few days, British Deputy PM Angela Rayner, and Japanese Prime Minster Shigeru Ishiba resigned. French lawmakers voted Francois Bayrou out of office. The party of Argentinean President Javier Milei suffered a crushing defeat. And Indonesia replaced its longtime finance minister. Investors will be watching to see who President Emmanuel Macron appoints France's 5th Prime Minister in less than 2 years. Macron has not yet called a snap election. He appears to be set on appointing a...

The Russian state nuclear company Rosatom is planning to issue bonds in yuan currency in China, a spokesperson for the company said on Monday. The spokesperson did not provide any further information. The announcement by Rosatom comes after Russian President Vladimir Putin visited China last week and called for a joint financial infrastructure between countries in the "Global South". Alexei Likhachev, Rosatom's chief executive officer On the sidelines the four-day trip, the Russian giant said that it was willing to help China surpass the United States when it comes to installed nuclear generation capacity. Likhachev stated that Russia has helped...

Customs data released on Monday showed that China's coal exports reached an eight-month peak in August. This was largely due to higher prices at home, but volumes were still below those seen a year ago. According to the General Administration of Customs, the country imported 42.74 millions metric tons of coke last month. This was the highest since December but down around 7% compared to August 2024. Toby Hassall is the lead analyst of LSEG's coal market. He said that "the rise in imports reflected a widened arbitrage as China’s domestic prices climbed following a reduction in coal production locally...

Kazatomprom announced plans on Friday to triple its exploration in Kazakhstan, and explore opportunities for international expansion, following recent agreements signed with Jordan and Mongolia. State-controlled company currently produces its uranium in Jordan, but last week signed an agreement with Jordan to develop the country's assets. "We have been recognized for our mining capabilities, which is why... we also look at opportunities overseas," Meirzhan Yossupov, Chief Executive of the World Nuclear Symposium held in London. Kazatomprom has also signed a deal with Mongolia's Mon-Atom, in addition to its Jordan agreement. Yussupov stated that his company was exploring other options. We...

Early Friday, European stocks rose while bond yields on long-dated bonds fell as the markets awaited a rate cut by the United States. This helped to ease concerns over fiscal deficits across various countries. The S&P 500 reached a new record high on Thursday, after the weekly jobless claims data revealed more than expected. Overnight, Asian stocks followed Wall Street's upward trend. At 0752 GMT the MSCI World Equity Index had gained 0.3% for the day, and Europe's STOXX 600 Index was also up 0.4%. Both are expected to finish the week with a slight gain after recovering from the...

Kevin Buckland gives us a look at what the future holds for European and global markets. The markets are in a positive mood as they anticipate that the Fed will continue to reduce rates by this month, and again at year's end. The previous month's payrolls shockingly high reading sparked speculation that the U.S. would have to change its monetary policy quickly. This time, economists expect a slightly higher reading. Fed Chair Jay Powell shocked many last month at the closely watched Jackson Hole Symposium with a keynote suggesting a reduction on September 17, unless data get in the way....

Shipping data revealed that Venezuelan oil exports surpassed 900,000. barrels per day during August, their highest level since November. This was after energy producer Chevron obtained a license allowing the OPEC nation's crude to be returned to the U.S. after a 4-month pause. Last month, the U.S. Treasury Department issued a limited authorization to Chevron, a major partner of Venezuelan PDVSA state company, to export oil and operate in Venezuela, despite the sanctions. According to data from tanker movements, the resumption in Chevron flow to the U.S. and larger cargoes going to Venezuela's main destination, China, resulted in a 27%...

A spokesperson for the European Commission said that measures will be proposed this year to stop countries from avoiding its border carbon tariff. Some in Brussels are concerned that Chinese companies could restructure their trade to avoid paying the tax. Carbon Border Adjustment Mechanism, the first carbon border tax in the world, will begin to charge fees for CO2 emissions from imported goods, including steel, aluminum, cement, and fertilisers, starting in January. The system is designed to bring foreign producers up to par with European manufacturers who pay for their carbon emissions through the European Carbon Market. Brussels officials are...

Ankur Banerjee gives us a look at what the future holds for European and global markets Nestle, the maker of Kitkats and a major player in the data world, will be the focus of investors' attention after it abruptly fired its CEO. According to economist estimates, euro zone inflation was likely stable at 2.0% in August. Last week, data from Germany, France Italy and Spain showed that inflation was close to the European Central Bank target. Market watchers expect the ECB to leave its key interest rate unchanged at 2% during its policy meeting in July, and they also expect...