Energy Markets

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...

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 fell. 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 0.3% last against the 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...

The dark comedy "One Battle After Another", starring Leonardo DiCaprio, received nine Golden Globe nominations in a row on Monday. This puts the thriller at the top of the list for Hollywood's race to the Academy Awards. DiCaprio stars in the movie directed by Paul Thomas Anderson as a revolutionary who takes action when his daughter is threatened. Warner Bros' film will be competing in the category of best movie musical, or comedy against other films such as "Bugonia" and "Marty Supreme". Norwegian family drama "Sentimental Value", which won eight nominations in total, was just one ahead of the supernatural...

NextEra Energy announced on Monday that it has expanded its partnership between Alphabet’s Google Cloud and NextEra Energy to increase data center capacity. Meta also secured over 2.5 gigawatts in clean energy contracts across the U.S. In premarket trading, shares of NextEra rose 2.7%. The companies, under the new agreement with Google Cloud will build multiple new data centres of gigawatt scale (GW), each with its own generation and capacity. NextEra plans to launch a product powered by AI in mid-2026. The AI-powered solution will predict equipment problems, optimize crew scheduling, and improve grid reliability during storms and with aging...

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...

The dollar fell and was poised to lose its 10th consecutive day against a basket major currencies, fueled by expectations of a U.S. interest rate cut. The benchmark S&P500 was flat in the early morning trade, after two sessions of gains. The biggest losses were in healthcare, consumer discretionary, and materials stocks, while real estate and financials were on the rise. The Dow Jones Industrial Average dropped 0.09%. The S&P 500 slipped 0.06%. And the Nasdaq Composite fell 0.14%. STOXX 600 in Europe was up by 0.42%, and is still on track for a modest gain each week. The FTSE...

The Russian rouble fell and the stocks in Russia dropped on Wednesday, after late-night talks at the Kremlin between President Vladimir Putin and Donald Trump's top representatives failed to produce a breakthrough regarding a solution to end Ukraine's war. The talks between Putin, Steve Witkoff (Trump's special representative) and Jared Kushner, Trump's son-in law, went well past midnight. Yuri Ushakov said that "compromises had not been reached" after the talks. The rouble fell 0.6% against the dollar at 0820 GMT and was down 0.5% against the Chinese Yuan at 11,01 on the Moscow Exchange where it is most traded. The...

Rae Wee gives us a look at what the European and global markets will be like tomorrow. In the last month, there have been several instances where a rally in the market was suddenly halted due to sudden risk aversion. Sometimes this happened without any obvious cause. Shortly afterward, an upswing followed. Wednesday was another example of this. After a Monday drubbing, global stocks rose and bitcoin reclaimed its $90,000. It was at its highest level in almost two weeks. The European markets were also poised for a steady opening, as investors waited for the remarks of European Central Bank...