Energy Markets

The Federal Reserve has more reasons to maintain interest rates at the same level until 2027, as U.S. consumer inflation grew at its fastest pace in three years during May. According to the Labor Department Bureau of Labor Statistics, on Wednesday, the Consumer Price Index rose 4.2% over the 12-month period ending in May. This is the biggest gain since April 20,23. In April, the CPI increased 3.8% on a year-on-year basis. Prices rose 0.5% monthly after a 0.6% increase in April. Economists surveyed by predicted?the CPI to increase 4.2% on an annual basis and gain 0.5% monthly. Inflation has...

Sempra, an energy infrastructure company, announced?on Wednesday it had received approvals for a number of new transmission projects in Texas. These, along with earlier go-aheads are expected to cost over $7 billion. Last week, the Electric Reliability Council of Texas, the operator of?the electricity grid in Texas, approved the new projects. According to the U.S. Energy Information Administration (EIA), U.S. electricity demand reached'record levels' in 2025, and it is expected to continue to rise 'this year as tech companies rapidly build data centers that use as much electricity as an entire town at one site. Sempra’s latest projects include new...

Amitabh Kumra, a trade official in India, said that India did not have'surplus manufacturing capacity' in textiles and steel as claimed in the Section 301 investigation by the U.S. Trade Representative. Washington has cited structural surplus capacity in Indian industries, from solar panels and petrochemicals, to steel and textiles. It also cites its $42 billion goods trade deficit with the United States by 2025. Kumar, India's Additional Trade Secretary, said that its textile and Steel output should be evaluated in relation to the size of its population, its domestic demand, and its growth needs rather than its absolute production. "Overcapacity"...

U.S. president Donald 'Trump' is trying to project strength in his 80th year, but setbacks both at home and abroad expose the limits of his power and push him towards the lame-duck situation he told aides that he was determined to avoid. His approval ratings are declining and the courts are pushing him back. He is 17 months into his second tenure. His fellow Republicans are also defying his leadership, though his core supporters remain loyal. Trump still has considerable clout. He has helped to oust Republican incumbents from primaries and has pursued aggressive trade policies. Trump has pursued high-profile...

After?the U.S. The military launched new attacks against Iran, and market data revealed another large drawdown in U.S. oil stocks. Brent futures climbed 66 cents or 0.7% to $92.11 a bar at 0406 GMT. U.S. West Texas intermediate crude crude crude climbed by 60 cents or 0.7% to $88.80. After President Donald Trump promised to act on the downing of an Apache attack helicopter by the U.S., this was a new escalation which threatened to unravel a fragile truce between Washington and Tehran. Priyanka?Nova, a senior analyst at Phillip 'Nova, stated that the latest attacks have shifted traders’ focus to...

The Middle East conflict has increased the prices of energy products in the United States, and this will give the Federal Reserve more ammunition to maintain interest rates at the same level for the rest of the year. Wednesday's Consumer Price Index readings, which are expected to be the third consecutive month of high year-over-year comparisons, will likely highlight increasing pressure on households as more consumers use their savings to fund their purchases. The inflation rate is expected to exceed wage growth for the second consecutive month in May, which could have a negative impact on economic growth. The rising...

In average, the U.S. Treasury issues more than?half-a-trillion dollars in T bills per week. The spike in short-term funding is not a problem for the moment, but it could be if U.S. lending costs continue to rise. Trump's administration has a good reason for favoring the short end of the "borrowing curve". The term premium has increased due to the persistently large budget deficits and the elevated inflation that has been above the Federal Reserve’s 2% target for five years. This is what investors want to compensate them for purchasing long-term bonds. It makes short-term loans more appealing. The problem...

Energy costs are squeezing soybean and grain growers in the U.S. Farm Belt as the Iran War chokes fuel supply through the Strait of Hormuz, pushing diesel prices to record highs. Farmers were already under pressure and faced a fourth consecutive year of shrinking margins due to a resurgent dry spell, high input costs, and the fallout from President Donald Trump's policies on trade, which has impacted crop prices. Diesel prices in the Midwest, America’s main corn- and soybean-producing region rose to record highs as a result of the conflict in May. This was just as farmers were ramping up...

MSCI's global equity index lost ground Tuesday, as investors chose safer bets and heavyweight U.S. tech stocks tumbled. Oil prices also fell as Middle East updates were vague on the progress of peace. Iran and Israel had raised hopes for a reduction in tensions on Monday when they announced that they would cease to attack each other. U.S. president Donald Trump'said'?on?Tuesday that Iran had shot down a U.S. Apache helo that was patrolling Strait of Hormuz over night and vowed?to respond without providing any details. Israel had attacked the historic port of Tyre, in southern Lebanon, on Tuesday and killed...

MSCI's global equity gauge retreated from its earlier gains as Wall Street investors waited anxiously for inflation data. The dollar also dropped along with oil prices in hopes of easing Middle East tensions following the ceasefire between Israel and Iran. U.S. Energy Sec. Chris Wright stated on Tuesday that the ship traffic in the Strait of Hormuz, a vital energy conduit, is increasing "very significantly." Israel's Tuesday attack on the historic port of Tyre, in southern Lebanon, killed at least eight people, but the progress towards a Middle East peace still seemed uncertain. Tehran had warned on Monday it would...

Statistics Canada reported that the Iran War has increased the price of crude oil, which is a major factor in the increase in Canada's April goods trade surplus. Analysts surveyed by? Analysts polled by? Statscan reduced March's surplus to C$1.75 from C$1.78. The total exports rose 1.6% to a record C$75.16 Billion in April. Exports of energy goods increased 9.7% in April after a 23.4% increase in March. Statscan stated in a comment that "Both increases were primarily due to higher prices which continued to increase in April despite the uncertainty created by the conflict in Iran." Crude oil experts,...

The U.S. Treasury issues more than half a billion dollars in T-bills each?week. For now, this spike in short-term funding is not a concern, but it could be if U.S. lending costs continue to rise. Trump's administration has a good reason for favoring the short end of the curve. The term premium has been pushed up by persistently large?budgets deficits, and high inflation that has exceeded the Federal Reserve's target of 2% for over five years. This is what investors are paying for long-term bonds. It makes short-term loans more appealing. The problem of rolling over $500 billion in bills...

Asian stocks dropped on Wednesday, while oil prices surged as escalating Middle East tensions unsettled the markets. Dimming hope for an end to a months-long conflict that has driven commodities higher and stoked concerns about inflation. After President Donald Trump claimed that Tehran had shot down an American Apache helicopter in Strait of Hormuz investors were on edge about a fragile ceasefire. The broadest MSCI index of Asia-Pacific stocks outside Japan fell 0.6%. The Nikkei of Japan fell by 0.9%, while the South Korean KOSPI, which is dominated by tech stocks, dropped 2%. In early trading, oil prices rose about...

Four?trade? sources said that China issued its second batch fuel quotas this year. The total is?18 millions metric tons. Despite existing export restrictions, the overall levels are largely unchanged year on year. China has cut back on outbound shipments since March to protect its domestic oil supply, in light of the protracted conflict in Middle East which is disrupting oil flow. Sources said that out of the total, 13 million tons quotas had been allocated for the export of gasoline, diesel, and jet fuel while 5 millions tons were reserved for marine fuel oil. Sources said that Sinopec, CNPC, and...

The Asian stock markets tried to stabilize on Tuesday. Oil prices fell after Israel and Iran announced that they would halt their attacks against each other for the time being. Ever-hopeful investors, however, bought up the latest dip in semiconductor stocks. Analysts warned that the rebound was only a small one, with 60% of S&P 500 ending in the red over night even though the index as a whole edged upward. In early trading, share futures on Wall Street and Europe also fell. The Strait of Hormuz remains severely restricted, and higher bond yields continue to challenge equity valuations. Analysts...

NHK, the public broadcaster, reported that Japan aims to ensure a stable power supply by rebuilding between two and five nuclear reactors. The proposal, which will be presented by the Ministry of Economy, Trade and Industry during a meeting about nuclear policy, reflects an increased reliance on atomic power to help "meet increasing energy demand and reduce expensive fuel imports." After the Fukushima disaster in 2011, Japan closed its?54 nuclear reactors due to public concern about safety standards. 15 of the 33 units which are still operational have been restarted. Tokyo revised its energy policy last year to maximize the...

What is important in the U.S. and international markets today by Mike Dolan Editor-at-Large of Finance and Markets On Wednesday, the?S&P 500 did not achieve its 10th consecutive daily gain and some clouds are forming in the markets. Broadcom, the sixth largest company in the world by market capitalization, has stumbled despite the frenzy surrounding the hot chip sector. Stocks of the chipmaker dropped by more than 13% overnight after a slight miscalculation in sales and revenue estimates. This?reaction is a sign of the high bar that companies have to meet in order to impress the markets during the AI...

China will reduce domestic retail prices on 'gasoline and Diesel' from Friday, its second cut since the start of the Iran War which has caused global oil prices to rise and constrained global energy supplies. The National Development and Reform Commission, a state planner, announced on Thursday that the retail gasoline and diesel prices would be reduced by 525 Yuan ($77.52), and 505 Yuan ($50.52), respectively. A 50-litre fuel tank filled with?92-octane gas can be filled for about 20.5 Yuan less. After factoring in Thursday's price reductions, Beijing has raised diesel retail prices by 1,530 yuan a ton since the...

Analysts and industry officials say that China will continue to draw on its record crude oil inventories, as refiners reduce imports while maintaining production curbs in order to minimize losses due to weak fuel demand. The tepid demand from the world's largest crude importer is partly limiting global oil prices. They have fallen 19% since May, despite a strained truce between the U.S.A. and Iran. And the Strait of Hormuz remains largely closed a third time. Beijing has taken a number of measures to protect the country against the soaring Middle East crude oil prices. These include maximizing domestic drilling...

Iran's energy boom may mask a larger inflation concern. AI prices are rising, and this boom will outlast any Gulf hiatus. Not least the major central banks are watching the crude price fluctuations around the Iran conflict to see how it will affect the cost of living. The AI investment frenzy has also been fueling a flurry of factory activity, a rise in construction, and a possible increase in prices. The massive business investment expenditure is expected to reach trillions of dollars in the future. Already, it is affecting company earnings, stock prices and projections, as well the aggregate GDP....

Investors regained their footing on Tuesday in unsteady trades as they brushed aside doubts regarding the durability of a Middle East ceasefire and opted to return to AI-based plays. MSCI's broadest Asia-Pacific share index outside Japan rose 0.4%, after trading began. The index fluctuated between gains and losses. Korean shares fell as much as 3,3%, despite an initial higher opening. Gains in China and Hong Kong helped stabilize the regional benchmark. S&P 500 futures fell 0.3% while the Nikkei225 in Japan dropped 0.7%. "This is not a revaluation of the AI market; it's a profit-taking following a blistering-fast run," said...

Emmanuel Macron, the French president, said on Monday that companies?have committed a 'total of EUR93 bn ($108 bn)?worth investments in France during this year's Choose France Summit. The projects will cover 71 initiatives and are expected to create over 15,600 jobs. SoftBank has pledged a total of?45 billion euro for three data centers?with 3.1 Gigawatts in the Hauts de France region?by the year 2031. The investment could rise to 75 billion Euros, according to Macron. Macron is trying to use 'France's fleet 57 nuclear reactors as leverage to promote the country as an artificial intelligence hub and data centre, both...

Chinese coking coal prices slid on Friday, but are headed for the best week in six as Beijing's calls to ensure energy supplies during?the summer peak demand period? only partially offset supply fears sparked by mine closures following a fatal accident. According to a late-night statement posted on WeChat by China's official planner, efforts should be made to ensure the production and supply primary energy sources like coal and natural gases to meet peak electricity generation needs. Analysts said that this helped ease concerns about coal supply losses caused by?production halts at coal-rich Shanxi Province mines after a deadly gas...

Shanghai copper prices rose on Friday. They are on track to reach a'second consecutive monthly increase, as the hopes of a U.S. - Iran 'peace deal' pushed down oil prices and dollar, easing concerns of a higher inflation? and a global sluggishness that could crimp a lowering of demand for a metal. As of 0520 GMT, the most traded copper contract at the Shanghai Futures Exchange had risen 0.9% to 104,940 Yuan ($15 478.45). The contract is up 2.9% this month. The London Metal Exchange's three-month copper contract fell 0.2%, to $13,670.50 a metric ton. Both contracts rose for the...