Energy Markets

Hungary has signed a framework deal with Azerbaijan to purchase up to 800,000,000 cubic meters of gas over a period of two years. Peter Szijjarto, Hungary's foreign minister, announced this at a press conference on Thursday. Hungary has signed a framework agreement with Azerbaijan for the purchase of up to 800 million cubic meters of natural gas over a two-year period, Peter Szijjarto, the Foreign Minister in Hungary told?a briefing on Thursday. This is a framework contract that allows up to?800 million cubic metres in deliveries to be realized. How much of the agreement will be completed in the next...

Cenovus Energy, a Canadian company, forecast a higher crude oil production in 2026 due to the completion of major oil sands project. The company anticipates an upstream production of between 945,000 and 985,00 barrels of oil-equivalent per day (boepd), exceeding its forecast of 805,000 to 845,00 boepd for 2025. The producer said that it would spend C$850,000,000 on the newly acquired Christina Lake North assets acquired from MEG Energy. The Calgary-based company had previously?stated that its capital expenditure will fall to C$4 billion in the next year as major expansion projects are completed, excluding assets of its high-profile C$6 billion...

The stock market in Asia was teetering on Thursday, after disappointing earnings from U.S. cloud computing company Oracle sent a warning about AI profitability. Bonds were strong and the dollar suffered losses following a Federal Reserve interest rate cut. Oracle shares fell more than?11% in Asia trading. S&P futures were down 0.3% and Nasdaq futures about 0.5%. AI-related stocks suffered the most in Tokyo as Oracle missed its profit and revenue forecasts, and executives cited higher spending as a sign infrastructure investments aren't turning into profits at the rate investors hoped. Japan's Nikkei Index traded between flat and slightly higher...

On Wednesday, the major stock indexes mainly edged up while the dollar fell as a divided Federal Reserve board faced crunch time. Oracle's earnings were eagerly awaited after the Wall Street closing bell. This and other results may test artificial intelligence valuations that are sky high. When the Fed announces its decision at 2 pm, it is expected that interest rates will be cut. Investors are worried about the outlook for rates next year. How many Fed members predict that there will be one, two, or no cuts in the next year? Analysts suspect that at least two out of...

Investors waited for a decision by the U.S. Federal Reserve on interest rates and watched progress in Russia-Ukraine talks. Brent crude futures rose 7 cents or 0.1% to $62.01 per barrel at 0500 GMT. U.S. West Texas Intermediate Crude was trading at $58.32 per barrel, an increase of 7 cents or 0.1%. Suvro Sarkar is a DBS Bank energy analyst and said that the American Petroleum Institute reported a decline in U.S. oil inventories. Oil prices could be supported by the U.S. Fed's rate-cut policy, which is another macro-driver. Citing market sources The API numbers are a good way to...

By Laila K. Kearney and Lewis Jackson NEW YORK - The CEO of GE Vernova, Scott Strazik, said on Tuesday that the company is working with?U.S. Scott Strazik, CEO of GE Vernova, said that the U.S. government is increasing its stockpiles for the rare earth element?yttrium. Strazik, one of the three largest gas turbine manufacturers in the world, said that GE Vernova has enough yttrium to last until 2025, and possibly into next year. He did not specify how long supplies would last. He added that the company was also looking at alternatives to certain rare 'earths' used in production,...

The major stock indices were little altered on Tuesday, and the dollar edged up as investors focused their attention on the Federal Reserve meeting. They also digested the news that Washington has allowed Nvidia to export its second-best chips into China. Treasury yields rose slightly after U.S. data on the labor market. The dollar extended its gains following the data which showed that U.S. employment increased modestly during October while hiring was subdued. Donald Trump, the U.S. president, said Washington would allow Nvidia to export its H200 processors to China. A 25% fee will be charged for such sales. Nvidia...

The Energy Information Administration announced on Tuesday that U.S. production of oil is likely to be higher than expected this year. The EIA raised its forecast of 2025 oil production to 13.61 million barrels a day, which is the highest ever recorded. The EIA, however, lowered its estimate for 2026 total production by 50,000 barrels per day to 13.53 millions bpd. The EIA's 'update' in the U.S. production estimate for this year adds to the expectation that oil?markets are heading towards a supply?overhang. The Department of Energy’s statistical arm also raised its oil consumption estimate for?2025 by 100,000 bpd, to...

The Senate of Nigeria approved President Bola Tinubu’s deployment of troops to Benin Republic on Tuesday after Benin’s government asked for assistance from its larger neighbour on Sunday. Tinubu wrote to legislators that Benin had requested "exceptional and urgent air support" from Nigerian armed forces following a report of an "attempted unconstitutional seizure and disruption of democratic institution." According to Nigerian law?the president is required to seek Senate approval before deploying troops into a foreign country. Benin's Government said on Monday that Nigerian fighter jets carried out airstrikes in order to?thwart an attempted coup by mutinying troops who tried to...

HF Sinclair forecast capital expenditures for '2026 of $775 million. This is a 11% drop from 'its estimated spending this year. After operating at full capacity in 2022 due to supply shortages resulting from Russia's invasion, U.S. refineries have focused on maintenance. The company's budget would be reduced by $325 million, which is less than the $410 millions it had forecasted for 2025. The independent refiner based in Dallas, Texas, said that it was considering expanding its pipeline system across the Rocky Mountain range and West Coast, to "bolster fuel supplies" for markets such as California and Nevada. The West...

On Tuesday, the global bond sale paused a bit and stocks began to drift as traders focused on the Federal Reserve meeting that was to be held next week. They also considered the potential implications of the U.S. permitting Nvidia’s second-best chip to be exported to China. The Reserve Bank of Australia also?held? rates steady on Tuesday as expected, but it was more notable that they ruled out any further policy easing, and warned that the next step could be upwards if inflation pressures are stubborn. The Australian dollar was just a few cents shy of its near three-month peak....

U.S. Treasury Yields and the Dollar gained on Monday, as investors prepared for this week's Federal Reserve Meeting, where investors are widely expecting a rate cut. Major stock indexes, however, were lower. Investors also assessed the potential impact of an earthquake with a magnitude of 7.6 that struck Japan's northeast. About 90,000 residents were ordered to evacuate and tsunami warnings which were later downgraded. The iShares MSCI Japan ETF fell by 0.6%. The dollar gained 0.3% versus the yen. The Fed's Wednesday announcement will be key this week. Some strategists believe that the Fed's policy group could be divided, despite...

Henrique Braun's appointment as Coca-Cola’s next CEO is a gamble on Henrique's experience from Latin America and China. The company will use this to expand the brand in new markets and appeal to consumers who are strapped for cash. They will also develop healthier products to meet changing tastes. The 57-year old?American who was raised Brazil is expected to take over in March. This comes as Coke, Sprite, and Fairlife Milk have been reshaping their offerings and changing the size of the packs. They also acquired companies to help them appeal to health-conscious consumers and low-income customers. Coke's stock is...

An official from the China National Nuclear Corporation's (CNNC) research arm said that China would begin commercial operation of the Linglong One small modular reactor in the first half of 2026. The APC100 reactor, also known as APC100 was the first SMR approved by the International Atomic Energy Agency (IAEA) in 2016. The first project to use the Linglong One technology, CNNC's project on China's island of Hainan began in 2021. Wang Zhenqing of the China Institute for 'Nuclear Industrial Strategy', spoke at an international energy conference in Beijing. SMRs can be built faster and smaller than traditional reactors, and...

The dollar suffered losses following the Federal Reserve's interest rate cut. Bonds were also firm. Oracle shares fell more than 11% in Asia trading. S&P futures were down 0.9% and Nasdaq futures 1.3%. AI-related stocks suffered the most in Tokyo as Oracle missed its profit and revenue forecasts, and executives cited higher spending as a sign infrastructure investments aren't turning into profits at the rate investors had expected. Japan's Nikkei Index fell by 1%, with the AI-exposed SoftBank Group contributing 7.5% to the decline. The Hang Seng index in Hong Kong rose only 0.06%. MSCI's broadest Asia-Pacific share index outside...

The?dollar, U.S. Treasury yields and most major stock indices fell on Tuesday as the Federal Reserve is expected to cut interest rates. However, policymakers may also make hawkish remarks. Treasury yields and dollar rose after the release of U.S. Labor Market Data, which showed that U.S. Job Openings grew modestly in October but hiring remained low. Investors expect the Fed to announce a rate reduction on Wednesday, but policymakers are expected to remain divided. Some policymakers are concerned that the price pressures may easily return, while others are more concerned with the health of labor markets. It's quiet before the...

The dollar and major stock indices edged up on Tuesday, as investors focused their attention on the Federal Reserve meeting. They also digested the news that Washington has allowed Nvidia to export its second-best chips?to China. Treasury yields were barely changed, after the data on U.S. employment market erased earlier declines. The dollar extended its gains following the data which showed that U.S. employment increased modestly during October while hiring was subdued. Donald Trump, the U.S. president, said Washington would allow Nvidia to export its H200 processors to China. A 25% fee will be charged for such sales. Shares of...

Sources said that Saudi Arabia's crude oil exports to China are set to reach a record high in January, after it lowered its official selling prices for Asia. Saudi Aramco, the state oil company, will send about 49.5 millions barrels or 1.60 million barrels a day to China in January, according to a list of allotments to Chinese refiners. According to records, the allocation volume is up from the two previous months when it was?under 40 millions barrels. It's also the highest since last October. Sources said that PetroChina, Rongsheng Petrochemical, and Shenghong Petrochemical were among the companies who planned...

Asian stocks fell on Tuesday and the dollar remained steady as investors braced themselves for a?cut in U.S. rates this week. The yen remained calm after an earthquake that rocked Japan’s northeast region, though the impact was minimal. Investor sentiment remains cautious as the markets await a number of central bank meetings. This includes a decision that is expected to be made by the Reserve Bank of Australia. All three banks, the RBA, SNB, and Bank of Canada, are expected to keep rates unchanged this week. The Federal Reserve, on the other hand, is expected to reduce borrowing costs Wednesday....

Investors weighed the possible impact of an earthquake in Japan on the U.S. Treasury yields and the Japanese yen, while the major stock indexes dipped slightly. The northeastern region of Japan was shook by a powerful earthquake measuring 7.6 on the Richter scale, prompting tsunami alerts and evacuation orders. The iShares MSCI Japan ETF fell 0.7%. Dollar was up 0.4% last against yen. This week, the Federal Reserve will make an announcement on Wednesday. A rate cut is expected by many, but some analysts believe the Fed's Policy Committee could be divided. Investors speculated that this meeting might be the...

U.S. utilities are racing to sign supply deals with data-center operators as the artificial-intelligence boom sparks a surge in power demand, setting the stage for higher profits in the coming quarters. Goldman Sachs reported in May that data centers will account for 8% (compared to 3%) of the electricity generated in the U.S. in 2030. Here are some of the deals that utilities have announced for 2024 and 2025. NextEra Energy has expanded its partnership to Alphabet’s Google Cloud in order to increase data center capacity across the U.S. by multiple gigawatts, and improve energy infrastructure. Meta Platforms has signed...

Two people familiar with the project said that a Chinese refinery operator, whose main business suffered when Washington sanctioned it in May over its purchase of Iranian oil, is pushing ahead with a $3.6billion petrochemicals extension project. Construction at the Xinhai Chemical Site in Cangzhou, north China, shows how independent refiners in the country, Iran's biggest oil customers, maintain their business despite being on the growing Western blacklists aimed to curtail oil revenues for governments such as Tehran and Moscow. State media reported that Hebei Xinhai Holdings Group, the parent company, announced a plan in early last year to convert...

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! As we enter the final month of 2018, it's time to look at the 2026 market forecasts. It's hard to find U.S. equity bulls but forecasts come with a lot of qualifiers. This is understandable, given the uncertainty surrounding an artificial intelligence boom. AI adoption may really take off in 2019, but according to ROI's editor-at-large Mike Dolan, U.S. growth will likely be constrained by the 150-year trendline of 2%, especially if technology innovation...

Investors are confident that the Federal Reserve will cut rates next week despite a crucial reading of U.S. Inflation. This weighed down on the dollar, and helped gold. The European stock market opened higher on Monday, boosted by mining stocks after copper prices reached record highs. STOXX 600 was up 0.3% at mid-morning, after gaining 0.7% in the past week. U.S. Stock Futures are up between 0.2% and 0.4%. This indicates a modest Wall Street rally later. The government bonds that have been the focus of much of the market activity this week traded steadily in advance of U.S. monthly...