Energy Markets

On Monday, global equity markets fell and gold reached a new record high after U.S. president Donald Trump announced that tariffs would cover virtually all countries. This stoked fears of a global economic recession due to a trade war. Trump's comments on Air Force One to reporters seemed to put an end to hopes that the levies could be restricted to a small group of countries who have the largest trade imbalances. Trump will receive recommendations for tariffs on Tuesday, and then announce the initial level on Wednesday. The auto tariffs are announced the next day. All three major Wall...

The head of Japan's banking lobby has said that Japanese banks might need to provide business turnaround assistance to companies affected by tariffs imposed on them by Donald Trump's administration. This week, many large Japanese companies, including major exporters, manufacturers and suppliers, will be facing U.S. tariffs on steel and aluminum imports, as well as a 25% duty on imported cars and small trucks. In an interview, Junichi Hanzawa said, "We believe tariffs could result in a decline in corporate earnings." Hanzawa said, "We'll have to see if this burdens employment and wages and becomes a burden on companies and...

The companies announced on Monday that Dow Chemical and X-energy Reactor Company had submitted a permit application to Nuclear Regulatory Commission for a proposed project at Seadrift in Texas. Why is it important? In recent years, the U.S. Nuclear Industry has experienced challenges with expansion. However, the industry is now experiencing a boom in demand due to the power-intensive nature of data centers, and the shift towards low-emission, alternative energy sources. Small modular reactors are becoming more popular among companies. They are compact, cost-effective and faster to construct than full-sized nuclear reactors which can take years to build. The project...

The threat by U.S. president Donald Trump to impose secondary duties of 25 to 50 percent on buyers of Russian crude is so outrageous and bold that it may achieve his stated goal of a ceasefire between Ukraine and Russia. What is important now is how the other key players react to the latest move of this mercurial, inconsistent U.S. president. Do Russian President Vladimir Putin and Indian Prime Minister NarendraModi, as well as Chinese President Xi Jinping, believe that Trump is going to follow through on his promises? If so, what will this mean for the energy situation of...

The oil markets shrugged Monday off the threat of U.S. president Donald Trump to impose tariffs on Russian oil buyers as the shock factor of the White House's barrage of threats begins to wear out with jaded traders. Analysts and traders have questioned the seriousness of Trump's proposal. Warren Patterson, ING's director of commodities strategy, said that the U.S. government's announcements on tariffs and other sanctions have a tired feel. He said that the market would not overreact until he could provide more concrete information. The price of oil fell on Monday. Brent crude futures, the most active, were down...

Cal Fire, the California Department of Forestry and Fire Protection said that a rapidly growing wildfire in California’s Eastern Sierra region has burned 1,000 acres and forced evacuations across multiple counties. Cal Fire reported that the Silver Fire, which erupted around 2:11 pm PT Sunday near Highway 6 & Silver Canyon Road, was still at zero percent containment. Cal Fire said that evacuation orders had been issued for a number of communities including Laws, in Inyo County; Chalfant, in Mono County; and White Mountain Estates. Also, a 30-mile stretch along U.S. Highway 6 has been closed. No immediate reports of...

Donald Trump, the U.S. president, threatened Iran on Sunday with bombings and secondary duties if Tehran failed to reach an agreement with Washington regarding its nuclear program. In a phone interview with NBC News Trump stated that U.S. officials and Iranian officials are talking, but did not provide any further details. Trump warned that if they do not make a deal there would be bombing. "But if they do not make a deal I may impose secondary tariffs like I did in 2004." Trump, in his first term 2017-21, rescinded the U.S.'s participation in a 2015 agreement between Iran and...

Gold, the safe-haven asset, hit a new record high Friday. An index of global stocks fell as investors worried about a trade war that could be triggered by Trump's tariff decisions. The latest inflation figures were a source of frustration for U.S. traders, but Trump's 25% auto import tariff and his plans to impose a much wider levies on next week continued to be a cause for concern. All three major Wall Street indexes finished lower, and recorded their third consecutive loss. Communication services, consumer discretionary and technology stocks were the biggest losers. Utilities stocks finished higher. The Dow Jones...

Gold, the safe-haven asset, hit a new record high Friday. An index of global stocks traded lower as investors worried about a trade war that could be triggered by Trump's tariff decisions. The latest inflation figures were a source of frustration for U.S. traders, but Trump's 25% auto import tariffs and his plans to impose even more levies in the coming week continued to be a cause for concern. All three major Wall Street indexes lost ground, and they were headed for their third consecutive session of losses. Communication services, consumer discretionary and technology stocks were the biggest losers. Utilities...

Canada is planning additional retaliation against the U.S. tariffs on autos and tariffs reciprocal to those imposed by President Donald Trump. These actions are scheduled for April. Mark Carney, the Canadian Prime Minister, said that he has not yet decided what he will do. actions Canada might take , however. Trump imposed tariffs of 25% on goods that were not compliant with the U.S. Mexico Canada free trade agreement, but deferred a 25% tariff for most Canadian goods by 30 days. He then imposed tariffs Steel and Aluminum Imports will be allowed on March 12. Here are the retaliatory actions...

Canada is planning additional retaliation against the U.S. tariffs on autos and tariffs reciprocated by U.S. trading partner countries scheduled to begin in early April. Mark Carney, the Canadian Prime Minister, said that he has not yet decided what he will do. actions Canada might take , however. Trump imposed tariffs of 25% on March 6 on goods that were not compliant with the U.S. Mexico Canada free trade agreement, but delayed a 25% tariff for most Canadian goods by 30 days. He then imposed tariffs Steel and Aluminum Imports will be allowed on March 12. Here are the retaliatory...

Asian stocks dropped on Friday, with South Korea and Japan seeing heavy selling. Meanwhile, gold reached a new record high after the latest tariff salvo by U.S. president Donald Trump raised investor fears of a full-blown trade war. Trump has moved forward with a 25% auto import tariff that will kick in next Monday. This move has drawn fierce criticism from politicians, industry executives and car manufacturers around the world. Trump's escalation of the global war on trade that he started upon regaining power has shocked the markets. Shares of automakers around the world have been hit especially hard. In...

The Kremlin announced on Monday that Russia and the United States are working together on ideas to find a peace settlement in Ukraine, and building bilateral relations despite Donald Trump's claim that he is "pissed" at Vladimir Putin. Trump told NBC News he had been very angry when the Russian leader questioned the credibility of Ukrainian president Volodymyr Zelenskiy. The U.S. President suggested he might impose secondary tariffs between 25% and 50% on buyers of Russian crude oil. Trump told reporters that he had been disappointed by Putin, but added "I believe we are making progress step-by-step." When asked about...

Six sources involved in the pricing discussions said that the premium for aluminium shipped to Japanese buyers from April to June is $182 per metric ton. This is a 20% drop compared to the current quarter as domestic demand remains weak. This is a lower figure than the $228 paid per ton in January-March and marks the first quarterly decrease in five quarters. However, it is still below the initial offers made by global producers of $245-$260 per ton. Japan is the largest Asian importer for premiums and light metals For primary metal shipments, it agrees to each quarter pay...

Sources said that the top Chinese copper smelters, who met on Monday, decided to not set guidance for second quarter copper concentrate treatment and refining costs (TC/RCs), as they are struggling with an acute lack of concentrate. Sources at the China Smelters Purchase Team in Shanghai said that, due to the scramble for stocks, spot TC/RC price has been negative since December. This has resulted in a benchmark so disconnected, it is now meaningless. A second source who spoke under condition of anonymity said that the CSPT had never given negative price guidance. A third source said that the tightness...

Four people with knowledge of the situation say that Toyota's gasoline/electric hybrids are in high demand, and suppliers are struggling to keep up. This has led to parts shortages and long waits for buyers. Two people said that Toyota dealers in major markets such as the U.S.A., Japan China and Europe have low stock of hybrids. Toyota, which is the leader in hybrids, faces a major challenge from this surge in demand. It also validates the Japanese automaker’s bet in the technology, despite predictions from some competitors that battery-only vehicles would wipe hybrid demand out. LMC Automotive's data shows that...

Taiwan won't raise electricity prices at this time due to global uncertainty about the impact of trade policies and geopolitical risk. However, the government will ask parliament for funds to help the state-run energy firm stem losses worth nearly $13 billion. In order to limit inflation, the government has heavily subsidised energy. However, it did increase power prices between September and April last year. After a meeting with its committee to review electricity prices on Friday, Taiwan's Economy Ministry said that the members "carefully examined the impact of electricity bill on prices and decided that electricity prices will not be...

In a Wednesday video call, China's Vice-Premier He Lifeng voiced "serious concerns" about U.S. duties and the planned "reciprocal", according to Xinhua. Xinhua reported that the two men exchanged "candidly and in depth" views on important economic and trade topics and agreed to keep in touch. The announcement came as U.S. president Donald Trump prepared to impose reciprocal duties next week. This could mean imposing more duties on Chinese products. Trump has imposed 20% tariffs on all Chinese imports, since he took office in January. He accuses Beijing of failing to do enough to stop the flow of chemical precursors...

After three sessions of losses in a row, Malaysian palm oils futures rose on Wednesday. This was due to bargain hunters after the contract reached a two-month low. The benchmark palmoil contract for June delivery at the Bursa Derivatives Exchange increased 0.33%, closing at 4,259 Ringgit ($962.05) a metric ton. When prices reached the lowest point of the day, they were too low to ignore. "We saw a great deal of bargain-hunting today. A lot of buyers came out and there was also a good amount of (short)covering," said Paramalingam Supramaniam of Selangor brokerage Pelindung Bestari. Intertek Testing Services, a...

After three sessions of losses in a row, Malaysian palm oils futures rose on Wednesday. This was due to bargain-hunting after the contract reached a two-month low. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange rose by 0.75% to $4277 per metric ton ($966.34). This week, the contract has fallen by 2.97%. When prices reached the lowest point of the day, they were too cheap to ignore. "We saw a great deal of bargain-hunting today. A lot of buyers came out and there was a (short)covering as well," said Paramalingam Supramaniam of Selangor brokerage Pelindung Bestari....

The U.S. Dollar remained tepid as markets awaited clarity about President Donald Trump's policy on trade ahead of next week's new tariffs. The White House gave traders some hope that it would be flexible after Trump announced on Monday that some levies wouldn't come by the deadline of April 2, and certain countries would receive breaks without giving further details. Trump also opened a second front in his trade conflict by directing 25% secondary tariffs to any country buying oil or gas from Venezuela. This initially sent oil costs higher, but its impact was somewhat offset by relief from Black...

The trade of Venezuelan crude oil to China, its top buyer, slowed on Tuesday following the U.S. President Donald Trump’s order that threatened tariffs against countries purchasing from Caracas. This came days after U.S. sanctioned China's imports of Iranian oil. Trump's surprise order caught Chinese traders and refiners by surprise. It states that, at the discretionary discretion of the Secretary of State, the U.S. can impose 25% tariffs starting April 2 on any goods imported from countries importing Venezuelan crude oil. Chinese traders and refiners are waiting to see the implementation of the order and if Beijing will instruct them...

The price of palm oil in Malaysia fell for the third time on Tuesday, to its lowest close in almost two months. This was due to lower prices for rival vegetable oils at Dalian and Chicago and weaker export data. The benchmark June palm oil contract on Bursa Malaysia's Derivatives exchange lost 58 Ringgit or 1.35% to close at 4,247 Ringgit per metric ton, its lowest price since January 27. Anilkumar bagani, head of commodity research at Mumbai-based Sunvin Group vegetable oils brokerage, said: "The sentiments in palm oil are bearish right now because it has been forced by the...

The financial markets started the week with a mixed bag. U.S. stocks futures rose, but the dollar weakened ahead of the coming week. This was due to data, Chinese earnings as well as the threat of steep U.S. Tariff hikes. S&P 500 Futures rose about 0.6% and Nasdaq100 futures increased 0.8% in the morning Asian session. Japan's Nikkei climbed 0.2% and Hong Kong's Hang Seng rose about 0.2% Early trade saw the euro rise 0.2% to $1.0835, after a slight drop last week. The Turkish lira is on the edge of a cliff in emerging markets as investors are uneasy...