Energy Markets

The Trump Administration announced on Tuesday that it had loaned Constellation Energy Corp. $1 billion in order to restart the nuclear reactor of a Pennsylvania facility formerly known by the name Three Mile Island. Constellation and Microsoft signed a contract in 2024 to restart an 835 megawatt reactor that shut down in 2019. This would offset Microsoft’s data center energy use. The plant's other unit, now called the Crane Clean Energy Center after a 1979 accident that froze the nuclear industry, was shut down in 1979. The U.S. is experiencing its first increase in power demand since the 1990s, thanks...

The U.S. Court of Appeals denied a motion made by Toronto-listed Gold Reserve on Tuesday to stop all proceedings in the court ordered auction of Citgo Petroleum’s parent company in Delaware. This is yet another setback to the miner, who has been fighting in court for its $7.9billion bid for Citgo Holding's parent PDV Holding. PDV Holding is a U.S.-based subsidiary of Venezuelan state-owned energy firm Petroleos de Venezuela S.A. (PDVSA). In late August, a court officer supervises the sale of goods. Recommended by A rival offer by an affiliate of Elliott Investment Management. Motions Disqualify The earlier this month,...

Wildfires caused the largest tropical forest losses in 2024 Global warming is expected to worsen destruction Communities put in the center of fire prevention at COP30 By Andre Cabette Fabio The government agencies responsible for the environment and forests in Ecuador, Peru Ghana and Kenya, along with more than 30 environmental and indigenous groups from around the world, signed an agreement that will secure $100 million by 2030. The pledge will initially focus on the Amazon Basin - the largest tropical forest in the world, which is located mostly in Brazil. Fires are raging in forests that were not likely...

Exxon Mobil announced Tuesday that it will close its Fife Ethylene Plant (FEP) located in Scotland by February 2026. The company said the plant is no longer viable due to high supply costs, weak markets and the UK’s economic and political environment. The European Union's fourth largest exporting sector, after machinery, automobiles and pharmaceuticals has been under pressure due to soaring energy prices following Russia's invasion in Ukraine, and an aging infrastructure. This has led them to become more dependent on imports for key feedstocks like ethylene and propylene. Exxon said that the closure would affect 179 employees and 250...

German Finance Minister Lars Klingbeil spoke about overcapacity on China during his Tuesday visit to Beijing. He also stressed that if no solution is found, the European Union will act. Klingbeil stated: "I made it very clear that, in the event of a need, decisions would be taken at the European level, to better protect our market." "I would like to avoid this, but at the end of the day, Europeans - and we Germans - must not be left behind." Klingbeil's second day in China saw him attend the Party Dialogue, where he discussed the war in Ukraine, German-Chinese...

The demand from tech giants for high-quality credits to offset their AI emissions is fueling a shortage, which experts say is what's needed to stimulate investment in this nascent industry. Credits tied to forest preservation projects will be nearly four times as expensive in 2024 due to heavy purchases by companies such as Microsoft and Google over the past two years. Credit experts report that Big Tech collectively has spent hundreds of millions on carbon removals which capture and store CO2 for an extended time, a large portion of this in the past two years. According to CDR.fyi, the total...

The oil prices fell on Tuesday, as traders assessed the impact of Western sanctions against Russian flows, and supply concerns eased after the loading of cargo at a Russian hub was resumed following a drone strike in Ukraine. Brent crude futures fell 46 cents or 0.72% to $63.74 per barrel as of 0420 GMT. U.S. West Texas Intermediate crude futures fell 45 cents or 0.75% to $59.46 per barrel. According to two industry sources, and LSEG data, the Russian port of Novorossiysk resumed oil loadings Sunday after a two-day interruption caused by a Ukrainian drone and missile attack. In a...

The U.S. Treasury announced on Monday that U.S. sanction against Russian oil giants Rosneft, and Lukoil have already reduced Russian oil revenues. They are also likely to reduce Russian oil sales in the future. In a press release, the Treasury's Office of Foreign Assets Control stated that their analysis of the first market impact of sanctions announced on the 22nd of October showed they were "having their intended effect of dampening Russian revenue by lowering Russian oil prices and therefore the ability of the country to fund its war against Ukraine." The Treasury's action was one of the strongest U.S....

U.S. stock prices fell and Treasury yields dipped as investors began a week filled with accelerated data releases following the longest shutdown of government in US history. Nvidia, the chipmaker that is a bellwether for artificial intelligence, will report its quarterly earnings on March 28. The results of this sector are expected to be closely scrutinized by investors looking for signs of waning interest in the area which has been driving the recent stock market rally. In early trading, all three major U.S. indexes were modestly lower. The U.S. Federal Reserve is expected to implement its third rate reduction of...

European stocks fell while bond yields dropped on Monday as markets awaited a report of earnings from $5 trillion chipmaker Nvidia, and U.S. employment data that would be released later this week. These could provide direction to the nervous global markets. The benchmark European index of 600 large stocks fell 0.4% after a global sell-off last week, triggered by concerns over the overvaluation of technology shares and diminished expectations of Federal Reserve rate cuts. Wall Street was set to open slightly higher with S&P futures rising 0.2% and Nasdaq futures gaining 0.4%. After hesitant comments from policymakers worried about inflation,...

Stocks and bond rates held steady on Monday as markets took a breather after a wobble last week in tech stocks that could be repeated or reversed when $5 trillion chipmaker Nvidia releases earnings on Wednesday. Investors are also awaiting the headline U.S. job data, due on Thursday. However, the report could do little more than confirm private market surveys that showed the labour market was slowing. The benchmark European index of 600 large stocks gained 0.1% during a subdued morning trading session. Wall Street is expected to follow suit as S&P futures moved up 0.6% and Nasdaq futures rose...

Tom Westbrook gives us a look at what the future holds for European and global markets. On Monday, the U.S. economy will start to flow again with figures on construction spending for August. On Thursday, September's jobs data will be released. The next month will bring more up-to date figures on labour and prices. However, due to concerns over the quality of these data and hawkish comments from policymakers, expectations for a December rate cut are fading. The main event for markets this week is likely Nvidia earnings after the close on Wednesday, which are shaping as a test for...

In October, China's crude oil storage volumes likely increased as robust imports from China and domestic production outweighed an increase of refinery processing. According to calculations based upon official data, China's crude oil surplus was 690,000 barrels a day (bpd), up from 570,000 bpd a month earlier. China's rate of adding crude oil inventories to its reserves is seen as an important factor for the demand for crude oil in the world’s largest importer. It also adds uncertainty to price forecasts. According to the National Bureau of Statistics, data released on November 14, China's refineries produced 14.94 million barrels per...

The price of palm oil in Malaysia rose by more than 1% Tuesday, marking the fourth consecutive session that prices have risen. This was largely due to the higher Chicago soyoil after China bought American soybeans. The benchmark contract for palm oil delivery in January on the Bursa Derivatives exchange ended 59 ringgit or 1.42% higher, at $4210 ringgit (1,012.02) per metric ton. David Ng, a proprietary trading at Kuala Lumpur's Iceberg X Sdn. Bhd., explained that the contract tracked gains on the Chicago soyoil markets today. Two traders who were familiar with the transactions said that China purchased at...

China is prepared to intensify cooperation with Russia on energy, agriculture, and other investments. Premier Li Qiang made this statement during a Monday meeting in Moscow with Russian Prime Minster Mikhail Mishustin. Li told Mishustin, the Russian official news agency Xinhua reported that China welcomed more agricultural and food product from Russia. Xinhua reported, citing Li, that China hopes Russia will also make it easier for Chinese companies to invest and operate in Russia. Mishustin said to Li that the bilateral cooperation has proven resilient in the face of external challenges. According to a transcription of the meeting posted on...

JPMorgan reported on Thursday that around 1.4 million barrels of Russian oil per day, or about a third, of the country's potential seaborne exports, are still in tankers due to the U.S. sanction against Rosneft, and Lukoil. In the first sanctions that President Donald Trump has imposed directly on Russia since his second term began, the U.S. gave itself a deadline of November 21 to end all business with Rosneft or Lukoil. The sanctions have caused Lukoil to struggle, forcing the company to sell foreign assets, and disrupting operations in Iraq, Finland, and Bulgaria. According to trading sources, the overall...

The market for liquefied gas is preparing itself for an increase in supply, mostly from the top exporter, the United States. However, it is not clear how low the spot price will need to fall to clear these additional volumes. According to commodity analysts Kpler, the global supply of super-chilled gasoline is forecast to reach 475 million metric tonnes in 2026. This represents a 10.2% increase over the 431 millions tons predicted for 2025. This figure is comparable to South Korea's total annual demand, which is the third largest LNG importer in the world behind China and Japan. Go Katayama,...

Several sources familiar with the situation said that Saudi Arabia will export to China at least 36,000,000 barrels of crude, a slight decrease from the previous month. As some Chinese refineries prepare for maintenance, and independent refiners wait for Beijing's 2026 import quotas, the expected drop in oil supply for the second consecutive month from the top oil exporter to world's biggest importer comes at a time when many refineries in China are preparing for maintenance. Sources said that one of the Chinese buyers has reduced their December volume because they have already lifted the majority of their full-year contract...

According to a draft version of the stimulus package presented by premier Sanae Takaichi on Wednesday, Japan's government is expected to pledge to increase its spending "without hesitation" in order to help an economy that's on the verge of emerging from stagnation. The draft doesn't mention how much money will be spent, but it does call for "bold strategic" investments in growth and crisis management areas. This is a clear indication that the package will include hefty spending. The draft said that the government would spend "boldly and without hesitation" on the necessary policies. Drafts of the package showed that...

Gregor Stuart Hunter gives us a look at what the future holds for European and global markets. The U.S. Government is about to reopen, restoring potential pay for unpaid federal employees and ending the drought of economic data which has left the Federal Reserve virtually blinded for more than one month. The latest sign that normalcy is returning could be Congressmen taking advantage of the free publicity. Thousands of flights have been delayed or cancelled due to the shutdown. Some Congressmen are carpooling with their colleagues, or taking a 16-hour Harley Davidson across the country to return to Washington D.C....

Japan condemned as "absolutely inacceptable" the extension of a Russian entry ban to another 30 citizens, including a spokesperson for the foreign ministry, following Tokyo's sanctions against Moscow's nearly 4-year-old conflict in Ukraine. Japan, following similar moves made by Western nations in September, had imposed additional sanctions on Russian individuals, companies and other entities, as well as lowered its cap on Russian crude oil at sea. The Russian Foreign Ministry published a list on Tuesday of Japanese who are now facing an "indefinite" ban. Toshihiro kitamura was added to the list, along with journalists and academics. Minoru Kihara, the Chief...

The U.S. Congress appeared to be on track to end the shutdown, and traders were looking for guidance in the absence any clues from the government data services. MSCI's broadest Asia-Pacific index outside Japan rose 0.1% early in trading, as House of Representatives members prepared to vote on legislation that would restore funding for government agencies and bring an end to the shutdown which began on October 1, and is the longest in U.S. History. The Australian stock market led the gains with a 0.2% gain as lithium mining stocks drove commodity stocks up, while Japan’s Topix rose 0.6%. Analysts...

The dollar held steady on Tuesday as global shares rose, boosted by the relief that the U.S. shutdown will soon be over. However, gains were moderated by persistent concerns about the valuations of the technology sector. European shares rose early in trading. The gains were led by London's FTSE 100 which reached record highs. This was due to the pound falling after British employment data gave investors greater confidence that the Bank of England would cut rates next month in order to boost growth. On Monday, the U.S. Senate approved a deal that will restore funding to the U.S. government...

Tom Westbrook gives us a look at what the future holds for European and global markets. The longest U.S. Government shutdown in history appears to be nearing an end. Traders are riding a wave that started late last week. The Senate has approved a compromise which would restore funding to the U.S. Government. The bill now heads to the House where Speaker Mike Johnson said he wanted to pass it by Wednesday. The Nasdaq and gold have both posted their best gains for months. Gold is trying to regain the momentum it had in October, when it reached record highs....