Energy Markets

Oil prices rose on Friday, but are still on course for a loss of a week's worth as a potential OPEC+ production increase and a ceasefire in the Russia/Ukraine conflict could raise supply while at the same time contradictory U.S. Tariff signals limit demand. Brent crude futures rose 5 cents, to $66.60 per barrel at 0001 GMT. They are on course to drop 2% this week. U.S. West Texas Intermediate crude (WTI), which is a blend of West Texas and Texas, rose 6 cents a barrel to $62.85, but it was expected to fall 2.9% this week. In an interview...

Eastman Chemical said Thursday that it will cut expenses to respond to the market volatility caused by President Donald Trump's tariff plans. In extended trading, shares of the company fell 3.5% to $78.00. Chemical companies are facing a weak market and high input prices, especially in Europe where the regulatory environment is challenging. This has forced them to rethink strategies. Trump's unpredictable trade policies have added to the uncertainty in the chemical industry. On Thursday, Dow Jones said that it expected earnings to be further pressured due to the persistent uncertainty. LSEG data shows that the company expects its second-quarter...

The major stock indexes rose Thursday as investors waited for further developments in U.S. China trade conflict. Meanwhile, the dollar fell after recent gains. The S&P 500 Technology sector rose 3.5% in one day, which is the highest of any sector within the benchmark index. After-hours trades for Alphabet, the parent company of Google, saw shares rise more than 3% following its release of first-quarter earnings. These results included earnings that exceeded analysts' expectations. The stock closed the regular session with a 2.5% gain. This earnings season will still bring us more results from the top U.S. technology companies. Donald...

Valero Energy on Thursday said it would cease operations at its 170,000-barrel-per-day San Francisco-area oil refinery next year amid worries about California's declining fuel supplies and high gasoline prices. The refinery in Benicia will be able to continue operating until the end of 2026, after the refinery based in San Antonio, Texas, announced last week its intention to "idle or restructure" the refinery by that date. Valero said that it recorded a pre-tax impairment of $1.1 billion for its California refineries. Valero CEO Lane Riggs said that the challenging regulatory and enforcement environments was the reason for Valero's decision to...

PG&E Corp. missed its first-quarter profit estimate on Thursday as it was hit by higher operating expenses and interest costs. Interest rates that are higher for longer increases the borrowing costs of utility companies. These companies need to borrow more money for their expenses, such as grid maintenance. PG&E's interest costs rose by 2.7% in the first quarter of this year, to $734 millions. In January, multiple wildfires scorched thousands of acres in Los Angeles. This is expected to be the costliest natural disaster in U.S. History. Electric utilities in the area have also been under increased scrutiny. The utility...

Gary Simmons, the Chief Operating Officer of Valero Energy Corp. told analysts during a conference call on its first-quarter earnings that Valero Energy Corp.'s license for fuel imports into Mexico had been reinstated after a suspension early in April. The Mexican tax authorities, who are the biggest buyers of U.S. fuels in Mexico, have suspended Valero’s import license since the beginning of this month, amid a crackdown on illegal motor fuel flows into the country. Simmons stated that Valero received the notice of suspension on April 9, as the Mexican customs had questions about Valero arising from an investigation Valero...

PG&E Corp. missed its first-quarter profit estimate on Thursday as it was hit by higher operating expenses and interest costs. Interest rates that are higher for longer increases the borrowing costs of utility companies. These companies need to borrow more money for their expenses, such as grid maintenance. PG&E's interest costs rose by 2.7% in the first quarter of this year, to $734 millions. In January, multiple wildfires scorched thousands of acres in Los Angeles. This is expected to be the costliest natural disaster in U.S. History. Electric utilities in the area have also been under increased scrutiny. PG&E will...

CenterPoint Energy announced a decline in its first-quarter profits on Thursday. However, the U.S. utility increased its capital expenditure plans to meet anticipated demand from data centres used for artificial intelligence technology. In January, a winter storm along the U.S. Gulf Coast slowed down major cities such as Houston and New Orleans and broke the record for coldest day in the region. Damage to power lines, and the widespread outages that followed, increased operating and maintenance costs for utilities. CenterPoint reported that its O&M cost rose by 5.4% compared to a year earlier, reaching $747 million in the third quarter....

Investors struggled to sort through the noise of the Trump administration, its erratic stance on tariffs, and the Federal Reserve leadership. This week, U.S. president Donald Trump attacked Fed chair Jerome Powell. He then retracted his calls for his resignation. Investors were left in the dark about the final state of tariffs against China, despite the many headlines. A source said on Wednesday that, in the event of talks with Beijing, the Trump administration may consider lowering tariffs for imported Chinese products. This follows a Wall Street Journal article that suggested the White House was considering reducing tariffs for Chinese...

The dollar rose against the euro, and other currencies on Wednesday. Meanwhile, gold-backed safe-havens fell as the Trump Administration signaled its willingness to deescalate the trade war. U.S. Treasury secretary Scott Bessent stated that the high tariffs between China and the United States are not sustainable. Meanwhile, U.S. president Donald Trump indicated he would be open to easing the trade tensions. Persons familiar with the discussions said that the White House was open to a rate reduction on Chinese imports to help advance the negotiations with Beijing, but would not be doing so alone. Trump, who had threatened to fire...

The dollar rose against the euro, and other currencies. Gold, a safe haven for investors, fell as Trump's administration indicated a willingness deescalate the trade war. Scott Bessent, U.S. Treasury secretary, said that the high tariffs between China and the United States are not sustainable. U.S. president Donald Trump told journalists that the U.S. "will have a fair agreement with China," without giving any details. Trump, who had threatened to sack Federal Reserve Chairman Jerome Powell on Tuesday evening, has now backed down from his threats. Peter Cardillo is the chief market economist of Spartan Capital Securities, a New York-based...

The oil prices fell 3% on Tuesday as sources claimed that OPEC+ was considering accelerating their output increases for June. However, losses were reduced following a report stating that U.S. president Donald Trump could reduce tariffs on Chinese imports. Brent crude futures fell $1.92 or 2.85% to $65.52 at 1:42 pm EDT (1742 GMT), while U.S. West Texas intermediate crude dropped $1.99 or 3.13% to $61.68. Three sources familiar with OPEC+ discussions said that several OPEC+ members would suggest to the group that it increase oil production for a second month consecutive in June. Recent tensions have arisen among OPEC+...

Taiwan's Premier proposed on Thursday another $10 billion as a budget special to help the economy cope with the impact U.S. Tariffs. Taiwan was due to receive 32% U.S. Tariffs in two weeks, but President Donald Trump suspended his "reciprocal Tariffs" for 90-days. At a press conference held in Taipei on Tuesday, Premier Cho Jung Tai said that the initial T$88.9 billion ($2.71billion) aid package will be increased up to T$410.9 billion ($12.61billion), which includes financing assistance for businesses, measures to stabilize the job market, and subsidies for electric. The special budget must be approved by the parliament. Opposition parties,...

The dollar rose against the euro, and other currencies on Wednesday. Meanwhile, gold-backed safe-havens fell as investors became more optimistic about the possibility of a de-escalation of the U.S.-China trade war. According to a source with knowledge of the situation, President Donald Trump’s administration will consider lowering tariffs for imported Chinese products pending discussions with Beijing. Source's comments follow a Wall Street Journal article, which cited people familiar with the issue, stating that the White House was considering lowering its tariffs on Chinese products in an effort to reduce economically damaging tensions between Beijing and Washington. Trump, who had threatened...

On Wednesday, the chief designer of China’s lunar exploration program accused the United States of interfering with Beijing’s efforts to cooperate in space programmes with Europe and other partners. Wu Weiren told foreign media in a rare, exclusive interview that China had a policy of "open space diplomacy" in contrast to the U.S. and was open to cooperating with both developing and developed nations on lunar exploration. Wu said that the International Lunar Research Station, an initiative led jointly by Russia and China, to establish a permanent lunar base by 2035 was progressing well. Already, 17 countries and organisations have...

A senior official revealed on Wednesday that China was considering building a nuke plant on the Moon to power an International Lunar Research Station with Russia. China wants to be a major spacepower by 2030 and send astronauts to the moon. Its planned Chang'e-8 lunar mission in 2028 will lay the foundation for the construction of a permanent manned lunar base. Pei Zhaoyu, Chief Engineer of the 2028 Mission, presented in Shanghai that the energy supply for the lunar base could be based on large-scale solar panels, as well as pipelines and cables built on the surface of the moon....

Republican lawmakers who are working to extend President Donald Trump’s tax cut legislation face a clean-energy dilemma at home. Major clean energy investments are being made in their districts, but Trump’s skepticism about the industry is at odds. The Ways & Means committee of the House of Representatives, which is responsible for drafting the tax legislation to extend the 2017 tax cuts, has 11 Republicans who represent regions that have seen green energy investments of hundreds of millions or billions of dollars over the past few years. Clean energy investments boomed after former President Joe Biden's Inflation Reduction Act passed...

Three sources with knowledge of the situation said that India intends to eliminate taxes on U.S. imports of ethane, liquefied petrol gas (LPG), and other petroleum products. The move is part a broader negotiation with Washington to reduce India's trade surplus and lower its tariff burden. India is considering scrapping the import tax on U.S. LNG and increasing purchases of fuel from the United States. As President Donald Trump’s sweeping tariffs rattle markets and economies, several Asian nations with trade surpluses in Washington are importing more U.S. Energy to avoid heavier tariffs. India levies an import tax of 2.5% on...

John Elkann, Chairman of Stellantis, said on Tuesday that the U.S. Tariffs and strict European Union emission standards put automakers in danger at a time they are facing increased competition from China. Elkann, at a shareholder's meeting, said that the American and European auto industries were at risk due to the current course of tariffs and regulations. He said: "That would be tragic as the car industry is a source for jobs, innovation, and strong communities." Elkann is leading the group as it searches for a new chief executive officer after Carlos Tavares departed late last year. He said that...

China's imports were low in the first quarter. The challenge is to determine whether this was due to temporary factors, or a deeper economic malaise. In the first quarter of 2025, the four biggest commodity imports - crude oil, iron ore coal and copper - all fell compared to 2024. The soft imports can be explained by the fact that the second largest economy in the world is still trying to gain momentum for economic growth. This task is made more difficult by the trade war escalating by U.S. president Donald Trump. This ignores some factors that are unique to...

Data released on Monday showed that China's crude imports rose sharply in March compared to the previous two month and nearly 5% compared to a year ago. This was due to an increase in Iranian oil as well as a rise in Russian oil deliveries. According to records of customs, March imports totaled 51.41 millions metric tons. This is equivalent to 12.1 million barrels per a day. It was the highest level since August 2023. This is an increase from 11,55 million bpd, in March 2024, and 10,38 million bpd during the period of January-February. In March, independent refiners stocked...

The dust has settled after a brutal week, tempered by President Donald Trump's tariff suspension. Global investors have made their point loudly and clearly: the market turmoil is here to remain. Trump announced on Wednesday that he would lower temporarily the heavy duties imposed recently on dozens countries, while increasing pressure on China. The S&P 500 index jumped nearly 10% on Friday, its largest one-day gain since October 2008. On Thursday, Japanese stocks soared 9% while European shares are set to have their best day since the year 2020. Analysts and investors said that the de-risking of U.S. market would...

The lack of infrastructure in Russia will make it difficult for the country's exporters to compensate for any disruptions to U.S. LPG supplies caused by tariffs. Insiders in the industry say that Chinese petrochemical manufacturers that purchase U.S. LPG for $11 billion a year are likely to reduce production or close down their plants as retaliatory duties on U.S. imported goods drive up prices. LPG (or propane and butane) is used primarily as a fuel for cars and heating, and also to make other petrochemicals. Russia is the fifth largest producer of LPG in the world, but it exports its...

KY Lin, a spokesperson for Taiwan's Formosa Petrochemical Corp, said that the company is running its refinery at only 68% of its capacity, or 370,000 barrels per a day, this month, down from 70% last March, due to planned maintenance in one of its units. Formosa, a major exporter in Asia, operates a refinery complex capable of producing 540,000 barrels per day at Mailiao. Lin reported that the company started an 84-day program of maintenance on its residue liquid catalytic cracked unit (RFCC). He said that due to maintenance, he planned to keep the operating rate at a lower level....