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Law firm claims that Venezuelan oil tycoon Ruperti has been released from custody.
A law firm representing Venezuelan oil businessman Wilmer?Ruperti said that the country's intelligence police had released him from a detention, after a video was posted on social media of him at his home. Ruperti attended a meeting on March 19, which was organized by the authorities. Ruperti's security detail was arrested and released soon after. Winston & Strawn, a law firm, said in an email that "he was released from the Sebin police detention but we have no explanation or charges from the Government stating the reason for his detention." "We find his detention to be inappropriate and are concerned about his safety and health." The Venezuelan information ministry didn't immediately respond to a comment request. Maroil Trading was a Ruperti-owned company that had been a key exporter of Venezuelan petroleum?coke, under a deal with the state-owned energy?company PDVSA. However, this later became entangled in a dispute regarding payments and contract terms. PDVSA suspended deliveries to Maroil in 2023 after an audit was conducted on receivables. Reporting by Mayela Aras, DeisyBuitrago and MariannaParraga; editing by Mark Porter
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Sources say Trump will reduce tariffs on steel and aluminum derivative products
Two sources familiar with Trump's plans say that the administration will reshape the steel and aluminum tariff regime. It plans to keep a tariff of 50% on?commodity imports, while reducing the duty to 15% or 25% for derivative products made from these metals, depending on the product. Details could change, and are subject to the tariff proclamation by President Donald Trump. This is expected on Thursday. The White House spokesperson didn't immediately respond to my request for comment. The Wall Street Journal was the first to report on the tariff adjustment plan. Sources told us that this change was made to simplify the overly complex tariff regime that was put in place by Trump last year, when he doubled his Section 232 tariffs for steel and aluminum from 25% to 50%. This?increase?also added tariffs?to thousands?of derivative products?made with the metals?to encourage domestic production?, from tractor parts?to stainless steel sinks?and gas ranges?. The 50% duty was only applicable to the steel or aluminum content, which created a headache for importers who had to calculate the figure. Sources said that the latest change would apply a lower tariff to the total value imported derivative?products, making it easier for compliance. Trump's announcement is expected to include a revised annexe listing the products that are subject to tariffs and duties. Sources said that steelmaking equipment may qualify for a lower 15% tariff rate as the Trump administration increased tariff rates last year in order to encourage more investment into domestic steel production. These equipments are often imported from Germany or Italy and made of heat-resistant alloys. Reporting by David Lawder, Washington; Carlos Mendez, Mexico City. Editing by Chris Reese & Andrea Ricci.
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After Trump's vow to continue attacking Iran, prompt oil prices have hit a record-high premium for next-month deliveries.
On Thursday, traders scrambled to get barrels after U.S. president Donald Trump pledged to continue his attack on Iran. Investors may perceive that supplies will be limited in the short-term if they see a widening backwardation. This is the term used to describe immediate deliveries which are trading at a higher price than barrels due for delivery in a future month. WTI crude futures?May delivery traded around $15.70 higher per barrel than the June contract during the session. The U.S. and Israeli war against?Iran is nearing its fifth week. This has caused millions of barrels of oil to be removed from the market every day, driving up energy prices and causing fuel shortages for countries that rely on oil and natural gas flowing through Strait of Hormuz. Around 20% of?the world's oil passes through this critical chokepoint. In a speech on Wednesday, Trump promised to "hit Iran extremely hard" within the next two to three weeks. However, he did not present a plan for opening the Strait. In recent days, he has suggested that other nations should lead the way in clearing the strait for shipping traffic. Reporting by Georgina Mcartney, Houston
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Gold falls on stronger dollar and rising bets of higher interest rates
The gold price fell on Thursday, as the U.S. dollar and oil prices rose after President Donald Trump announced that 'the U.S. The U.S. would continue its attacks on Iran. This will increase inflation fears and raise expectations for higher interest rates. As of 11:22 am EDT (1522 GMT), spot gold was down by 2%, at $4.660.95 an ounce. This is after it had hit a session high two weeks earlier. U.S. Gold Futures dropped 2.6% to $4686.80. The greenback price of bullion has become less affordable for other currency holders due to the sharp rise in the?dollar. David Meger is director of metals at High Ridge Futures. He said that the market was very focused on Trump's remarks, which have so far shown little indication of a rapid resolution to the?energy situation. He said that this is impacting gold and silver prices, since there are less chances of rate reductions. Trump claimed in a televised address that the U.S. military was close to achieving its goals in Iran. He did not provide a timeline for the end of the war, and promised to bomb Iran back into "the Stone Ages". Oil prices rose in response. Energy prices are rising, which leads to higher inflation and a reduction in the ability of central banks to reduce rates. Gold is not a good inflation hedge, and it does not pay any interest. Since the Iran 'conflict began on February 28, spot gold has dropped 12%. The news that the Turkish central bank’s gold reserves fell by 69.1 tons to 702.5 tonnes last week shook the mood. This brings the total fall of the two previous?weeks up to more than 120 tons, as authorities try to'mitigate the market impact from the war. In Asia, India saw gold prices rise for the first two months, as lower prices boosted demand. Premiums in China were slightly down as buyers awaited further corrections. (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Jan Harvey and Shalesh Kuber) (Reporting and editing by Jan Harvey, Shalesh Kuber, and Ashitha Shivaprasad from Bengaluru)
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Trump's speech will cause more harm to US consumers, with gasoline at $5 and diesel reaching record levels
Market experts say that U.S. President Donald Trump’s speech to the nation on Wednesday, where he promised more aggressive'strikes' on Iran, is putting consumers on a course for record fuel prices at the pump, just ahead of the peak summer travel season in the country. Americans were expecting Trump's speech would outline a plan for ending the Iran war and opening the Strait of Hormuz. Iran's blockade of this global oil conduit is causing oil and fuel costs to skyrocket, pinching the wallets of consumers. Trump, however, promised to bomb Iran into the "Stone Ages", and that the Strait of Hormuz would "just naturally" open when the war ended. Patrick De Haan said that the comments caused U.S. crude prices to surge more than 10% on Thursday. The average U.S. retail gasoline price is now expected to rise to between $4.25 to $4.45 per gallon by the end of next week. It had crossed $4 per gallon at the beginning of this week for the first time since 2022. The pain could get worse. De Haan stated that if there is not a viable plan for reopening the Strait of Hormuz the U.S. gasoline average will likely reach record levels in a month and cross $5 per gallon. On Thursday, wholesale markets began moving higher, with increases of 17 cents per gallon at midday in the Great Lakes and Great Plains markets, as well as the Northeast, West Coast and Gulf Coast. Tom 'Kloza, the chief energy advisor for Gulf Oil, posted on social media. De Haan also said that diesel prices could reach a record in two weeks. Although less visible for consumers, they are arguably more significant as they are 'directly tied to the costs of making and moving goods. De Haan stated that the national average retail price of diesel is expected to rise from $5.47 per gallon on Thursday, to $5.80 and over $6 in two weeks. In 2022, the average U.S. retail price reached a record $5.83 per gallon. (Reporting and editing by Aurora Ellis in New York, Shariq Khan)
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Stocks fall on Trump's statements as oil prices continue to climb
On Thursday, oil prices spiked and U.S. bonds yields spiked. Global equity markets also gave back gains following remarks by U.S. president Donald Trump that dashed hope for a quick resolution of the Middle East conflict. Brent crude soared by more than 7%, to $110 per barrel. This was after Trump announced in a prime-time speech on Wednesday that he would "hit Iran extremely hard" over the next few weeks and "bring [them] back to the Stone Ages". Stocks on Wall Street opened lower in the final trading day of the previous week as markets were closed for Good Friday. European stocks also fell and Asian markets closed lower. The yields on government bonds jumped as central banks raised interest rates or held them at the same level on expectations of a spike in inflation. The dollar index rose by 0.39%. "Over the past 48 hours, Tehran has exchanged statements with Washington, some of which suggest a de-escalation is more likely. "At the same time kinetic actions have continued unabated," BCA 'Research's Felix Antoine Vezina Pouirier said. Our GeoMacro Strategists provide simple advice for weighing headlines that are volatile: stick to the facts. Shipping through Hormuz increased over the last few days. Second, "Iran is intentionally shifting its focus from GCC to Israeli targets." ASIA CLOBBED WALL STREET POINTS The MSCI index of global stocks fell by 0.43% to 924. Wall Street saw the Dow Jones Industrial Average fall 0.12% to?46 511.17. The S&P 500 fell 0.02% at 6,574.05 while the Nasdaq Composite dropped 0.10% at 21,818.35. Trump stated in a widely watched speech on Wednesday that?U.S. In the next two or three weeks, Trump will intensify his attacks against Iran. This came just one day after he said the U.S. was "out of Iran fairly quickly". The pan-European STOXX 600 fell by 0.2% while Europe's FTSEurofirst 300 fell by 5.30 points or 0.22%. Asian stocks were the hardest hit by the reaction, with South Korea's Kospi index falling 4.7% and Japan's Nikkei dropping 2.4%. Prashant Nnewnaha, senior rate strategist at TD Securities said, "The only thing really important is whether the Strait of Hormuz opens soon." He was referring to this narrow chokepoint, through which a quarter of the world's?oil & liquefied gas is transported. Trump's speech does not imply that this will happen as fast as the markets expected." Trump said that the U.S. didn't need the oil pipeline and that the U.S. would not require it once the conflict is over. Spot gold dropped by 1.48%, and spot silver by 3.17%. Emerging markets that import oil are increasingly expressing urgency. India's central banks banned the trading of "non-deliverable" forwards to stop the rupee from falling to record lows. The currency rose 2% after the move, but analysts were unsure how long it would last. Brent futures rose 5.21% to $106.43 a barrel as U.S. West Texas Intermediate surged 8.43% at $108.56. Jon Withaar, Pictet Asset Management, said that the fact that the market can expect another 2-3 weeks of action and that?boots were not ruled-out (during Trump’s TV address), as well as the threats to strike infrastructure, will place the market on the defensive. The yield on the benchmark 10-year U.S. notes dropped 2.8 basis points, to?4.293%. The yield on the 2-year note, which is typically influenced by expectations of interest rates for the Federal Reserve fell 1.1 basis to 3.792%. The benchmark Bund yields in the Eurozone ended a three-day slide and traders increased bets on interest rate hikes. German borrowing costs are still on course for their first weekly decrease since the beginning of the war. The yield on the 10-year government bonds fell by 0.7 basis points, to 2.989%.
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Lula, the Brazilian president, wants to cancel Petrobras' liquefied gas auction
Luiz Inacio Lula da Silva, Brazilian President, said that the government would seek to annul a Petrobras auction on Thursday where the state-run oil company sold liquefied petroleum gas (LPG) at prices he deemed too high because of the war in Iran. Fuel prices are a concern for the leftist President as he runs for reelection in this year. Fuel prices are also a growing concern for Petrobras, as it attempts to satisfy the government and comply with internal rules that require it to make a profit from fuel sales. Lula told?TV Record Bahia that "people were aware of the government's and Petrobras guidance: we won't raise LPG prices". "But they held an 'auction against the wishes of Petrobras management and we are going to annul this auction," he said, noting that premiums reached around 100% above local reference prices. Lula didn't provide any further information on the auction. Petrobras cancelled the diesel and gasoline auctions in March after premiums of up to?2.00 per liter were found on diesel. Sources said that it decided to sell diesel fuel at lower prices if the contract was renewed, rather than auctioning it off. Brazil is still dependent on imports for its gas and diesel, which makes it vulnerable to price fluctuations. Lula's government announced a number of measures to reduce?prices, including a tax on oil exports, since the U.S. and Israel conflict began with Iran. Petrobras didn't immediately respond to a comment request. Reporting by Gabriel Araujo, Fabio Teixeira, and Marta Nogueira from Sao Paulo; Editing and production by Louise Heavens & Paul Simao
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Andy Home: LME traders at the ROI were wrongly pricing metal supply crises.
Metals traders began the year fretting about an upcoming supply crunch for copper, but ended the first quarter with a very imminent aluminium supply crisis. In its fifth week, the Iran war has calmed some of the frenzy of speculation that erupted in the London Metal Exchange's (LME) base metals complex in January. It has pushed aluminium to its highest level since 2022, with two Gulf smelters being damaged by Iranian missile strikes and shipping through the Strait still severely restricted. Even though energy prices are surging, the metals bulls still have a good grip on the market. EXPLOSIVE ALUMINIUM The Iran War has revealed the fragility in the Western Aluminium Supply Chain. Around 9% of the world's smelting capability and 18% global exports are accounted for by the Gulf. Initial impact was the logistical squeeze that resulted from the closure of the Strait of Hormuz. The Qatari smelter Qatalum, as well as Aluminium Bahrain (Alba), both reduced their operating rates in order to conserve?raw materials stocks. Next came direct attacks. Alba, which was hit by Iranian missiles, has now been reduced to 30% of its capacity. The giant Al Taweelah, operated by Emirates Global Aluminium is also completely out of action due to damage to the power plant. The supply chain is being shook by a crisis no one could have predicted. Western aluminium buyers face a 'double blow' from the simultaneous increase in the LME aluminum price and the sharp jump in physical prices. The LME copper price hit a nominal record of $14,527.50 a metric ton last January, as investors bought in to the enticing "bull narrative" of stellar demand growth. However, there is no shortage of the metal in the present. Global exchange stocks ended March at just under 1.4 million metric tonnes, which is a multi-year record. LME's three-month copper ended the quarter at $12335.50 per tonne, 15% lower than the peak of January and essentially flat compared to the beginning of the year. In January, tin reached a record-high price of $59 040 per ton as investors chased a similar meme of scarcity. Industrial players also responded to the scarcity of tin by delivering it into LME's warehouses. Since the beginning of the year, registered tin stock has increased by 60%. Another 2,951 tonnes are in the LME’s non-warranty stocks. As with copper, the LME spread structure for tin shows no signs of tightness. Both metals are in wide contango and there is no shortage of units. Nickel and lead markets are not in danger of a shortage. Both LME stocks are very high, and the time-spreads have been relaxed. LME lead stock has risen to over 500,000 tonnes and is set to replace aluminium as the metal of choice for financing. Zinc is still an "outlier", the galvanising material stubbornly refusing to perform as script. LME inventories have not been rebuilt in a meaningful way. Stocks are only up 7,900 tonnes on the start the year. It is currently trading at a marginal contagious of $5.00 per tonne. SECOND-ROUND ?IMPACT As we enter the second half of the year, the biggest question hanging over LME base metals is the impact that the Iran War will have on demand. The escalating energy costs are bad news for both manufacturers and consumers. It is important to consider how long the hostilities will last. This is why metals went from being in the spotlight in January, to following them slavishly in March. The war in the Gulf has been going on for too long, and it will be felt for months. Andy Home is a columnist at. This column is great! Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
PetroChina's Jieyang refinery to get very first Venezuelan oil freight
PetroChina's Jieyang refinery will get its first direct crude oil freight from Venezuela this weekend, according to trade sources and shiptracking data on Kpler, after Washington temporarily lifted sanctions on the OPEC manufacturer.
The 2 million barrels of Venezuelan Merey crude onboard supertanker Elysia is due to get to Jieyang on March 24, Kpler data showed.
PetroChina did not immediately react to an ask for remark.
reported in November that mention oil company Petroleos de Venezuela SA (PDVSA) and PetroChina remained in talks for an unrefined supply deal during the six-month reprieve.
Washington in 2015 relaxed sanctions on Venezuela's oil market in return for pledges to open its governmental election to worldwide observers and permit the opposition to pick its prospect, which has not taken place.
If the U.S. does not renew next month the license given in October that lifted sanctions, PDVSA would probably go back to using intermediaries to offer its oil to purchasers such as China, likely at discounts.
Jieyang, a greenfield 400,000-bpd refinery and petrochemical complex in southern China Guangdong province, is the latest amongst PetroChina's refining centers.
The plant began trial runs in late 2022 and was designed to process heavy oil such as crude from Venezuela.
PetroChina dropped PDVSA as the partner for the Jieyang complex in 2019 after the United States imposed sanctions on PDVSA to weaken the rule of Venezuelan President Nicolas Maduro.
(source: Reuters)