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Brazil Plans Additional Offshore Oil Auction for 2025
Brazil plans to hold an additional oil auction this year for uncontracted areas in the pre-salt offshore region after Senate approval of legislation that clears the way for the sale, a senior energy official said on Wednesday.The government aims to boost revenue to meet this year's fiscal targets after Congress overturned a presidential decree to increase financial transaction tax on certain operations, cutting an estimated 12 billion reais ($2.2 billion) from projected revenue this year.State-run oil company PPSA will hold the oil auction this year, said Pietro Mendes, secretary for Oil, Natural Gas and Biofuels at the Ministry of Mines and Energy, in a social media post. Mendes also chairs the board of state-run oil company Petrobras.PPSA is responsible for selling the portion of oil that companies producing under sharing contracts in pre-salt oilfields must hand over to the government under Brazilian law.Government sources had previously estimated the auction could raise between 15 billion and 20 billion reais.The measure gained Senate approval on Tuesday, having already been passed by the lower house, and now awaits presidential sanction.Treasury Secretary Rogerio Ceron had indicated that, with full congressional backing, gains from the auction could be included in the government's next bimonthly revenue and expenditure report, due by July 22.($1 = 5.4269 reais)(Reuters - Reporting by Marcela Ayres; Editing by David Goodman)
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Trump signss order raising national park fees for foreign tourists
The President Donald Trump signed a directive on Thursday that will increase the entrance fees for foreign visitors to U.S. National Parks, even though his administration is trying to reduce national park spending by over a third. The White House announced in a press release that the additional revenue from higher fees for foreign tourists would raise hundreds of millions to fund conservation and maintenance projects. The order does not specify how much the fee will increase or when it will be implemented. The agency did not specify how many of its 433 park units will be affected. Admission fees are charged at only 100 of the Park Service's sites. The order also directs that the Park Service give priority to U.S. citizens in its reservation or permit systems. The statement stated that U.S. citizens pay more to visit scenic natural wonders, historic landmarks, and other national parks than foreign tourists because they are required to pay admission fees, as well as contribute a portion of the tax revenue from the U.S. The statement continued, "International tourists are charged higher fees for entrance to national parks around the world." The Trump administration proposed to cut more than $1 billion in the Park Service's budget for fiscal 2026. This would be a reduction of over a third from the previous year. Cuts to federal employees have already worsened the staffing shortage in national park across the nation. The National Parks Conservation Association (a watchdog and advocacy group) released an analysis Wednesday that showed the permanent staffing of the Park Service has decreased by 24% since Trump's January inauguration. Only 4,500 out of the 8,000 season workers the administration had promised for this summer were hired. The NCPA stated that reduced staff levels in some national parks including Yosemite National Park in California and Big Bend National Park in Texas have led to closures, reduced programs and hindered emergency response activities. In recent years, visitors have continued to flood into national parks at record numbers. Admissions last year reached a new high, a whopping 331 million, an increase of 6 million since 2023.
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Asian stocks tumble, dollar edged down as tariff deadline focused
As President Donald Trump's trade deadline looms next week, most Asian equity markets struggled Friday, despite overnight record highs on Wall Street. As traders weighed the implications of Trump's sweeping spending bill, the dollar lost some of its gains from Thursday. Japan's Nikkei gained 0.3% at 0152 GMT, after trading in the early hours saw gains and losses. Hong Kong's Hang Seng fell 1.3% while mainland Chinese blue-chips edged lower. Taiwan's equity index lost its early gains and fell by 0.2%. South Korea's KOSPI fell more than 1%. The U.S. S&P futures index dipped by 0.2% after the cash index had risen overnight by 0.8% to reach a new closing high. Wall Street will be closed on Friday in observance of Independence Day. Investors cheered on a surprising robust jobs report, sending all three main U.S. equity indices soaring in a short session. The House approved Trump's 869-page signature bill after the vote ended. According to the nonpartisan Congressional Budget Office, this would add $3.4 trillion dollars to the $36.2 trillion national debt. Trump said that he will also start sending letters to his trade partners, stating their tariff rates. Deals are still elusive before the deadline of July 9. After announcing an agreement with Vietnam on Tuesday, the U.S. president said that he expects "a few" more agreements to be added to the framework agreements signed with China and Britain. Scott Bessent, the U.S. Treasury secretary, said this week that an agreement with India was close. The White House had once said that agreements with Japan and South Korea would be announced as soon as possible. However, it appears these deals have fallen through. Tony Sycamore is an analyst with IG. He said that the lack of confidence in the market for the deals was responsible for the weakness of equity markets around the world, especially Japan and South Korea. Sycamore stated that the jobs data on Thursday showed "the U.S. Economy is holding up better than most people anticipated, which indicates to me that markets could easily continue to perform better from here." The data on jobs led traders to abandon any expectation of a Federal Reserve rate cut in this month. The U.S. Dollar rallied on Thursday, rising as high as 0.7% against a basket major counterparts before it pared back its gains to finish the session at 0.4%. The U.S. dollar gave up some of its gains early on Friday. It fell 0.2% to 144.62 Japanese yen, and 0.1% to 0.7942 Swiss Franc. The euro rose 0.1% to $1.1766 while the sterling traded unchanged at $1.3650. The U.S. Treasury Bond market is closed on Friday due to the holiday. However, 10-year yields increased 4.7 basis points to 4.34% and the 2-year yield rose 9.3 bps at 3.882%. Gold rose 0.1%, to $3329.54 an ounce. Brent crude futures climbed 1 cent to $68.81 per barrel while U.S. West Texas Intermediate crude gained 3 cents to $70.73. (Reporting and editing by Stephen Coates; Kevin Buckland)
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Weekly gain in gold heads as US tax cut bill fuels fiscal concerns
Gold was up slightly on Friday and is expected to gain a lot this week as the tax-cutting bill for President Donald Trump passed through Congress. This has raised concerns about fiscal matters. As of 0221 GMT, spot gold increased 0.1%, to $3,329.67 an ounce. Bullion has risen 1.7% in the last week. U.S. Gold Futures fell 0.1% to $3,339.30. Trump's tax cut legislation cleared the final hurdle of the U.S. Congress Thursday. It will fund Trump's immigration crackdown and make permanent his 2017 tax cuts. He also promised new tax breaks during his campaign for 2024. Edward Meir, Marex analyst, said that this bill would be "bad for the dollar" and "bullish for gold" in the long run. The nonpartisan Congressional Budget Office estimated that the legislation would add $3,4 trillion to the nation's debt of 36,2 trillion dollars over a ten-year period. The labor market data released on Thursday revealed that U.S. companies added more than expected 147,000 jobs in the month of June, and that the unemployment rate dropped unexpectedly to 4.1%. This strengthened the argument for the Federal Reserve's decision to keep interest rates unchanged. Trump announced on Friday that he would start sending out letters containing tariff rates for imports, a departure from his earlier promises to negotiate individual deals. Meir stated that "if Trump insists on July 9 as a date of no return and he imposes tariffs again, we will see the dollar weakening and gold could move higher." Trump announced reciprocal duties of 10%-50% on April 2. He later reduced the rates to 10% for most countries until July 9, to allow time for negotiations. In a low interest rate environment, non-yielding gold bullion is a good investment. Silver spot fell by 0.5%, to $36.66 an ounce. Platinum rose 0.7%, to $1376.67, and palladium dropped 0.6%, to $1130.60. (Reporting and editing by Rashmi aich in Bengaluru, Anmol Choubey from Bengaluru)
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Weekly gains in copper; US tariffs could be on the horizon
The London Metal Exchange (LME) and Shanghai Futures Exchange (SFE) saw copper prices rise for the second consecutive week on Friday despite minor fluctuations. Traders were also watching for possible U.S. import tariffs. The LME's three-month copper added 0.06% at $9,960 a metric ton as of 0106 GMT. This week it has risen by 0.85%. Meanwhile, the SHFE's most traded copper contract eased 0.31%, to 80,510 Yuan ($11231.24). It is up 1.02% for the week. The dollar has strengthened as the United States is unlikely to cut interest rates anytime soon, despite better than expected payrolls and unemployment figures. Also, the "big beautiful bill" has passed and the attention of the copper markets has shifted back to possible U.S. import tariffs. Two analysts in China have dismissed the significance of recent increases in copper stocks In warehouses registered with the LME. Three consecutive days, from July 3 to 7, the volume increased by 3,700 tonnes or 4.1% after a gradual decline since mid-April. A metals analyst from a Shanghai futures company stated that "Copper will continue to be shipped into the U.S. as long as the U.S. Tariff is not finalized." On Thursday, the COMEX copper price premium was around $1300 per ton, and metal that had been earmarked for LME warehouses to be released, or canceled warrants totaled 31,900 tons. LME Nickel fell 0.33% at $15,400 per ton, and zinc dropped 0.31% at $2,742. SHFE nickel rose 0.75%, to 122400 yuan per ton. Lead increased 0.12%, to 17,280, and tin gained 0.08%, to 2692,20. Aluminium fell 0.12% to 20660 yuan. Click or to see the latest news in metals, and other related stories. Data/Events (GMT 0600 Germany Industrial orders MM, Manufacturing O/P Cur Price SA Consumer Goods SA Mai 0830 UK S&P Global PMI: MSC Composite - Output June ($1 = 7,1684 Chinese Yuan) (Reporting and Editing by Sumana Niandy; Reporting by Hongmei Li)
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The world's largest climate fund increases investment plans
The largest multilateral climate fund in the world said that it would make its biggest ever investment and accelerate dealmaking to help poorer countries respond to global warming. Green Climate Fund shareholders, including the United States, approved a plan this week to release $1.2 billion in funding for 17 projects mainly in Asia and Africa. This comes against a turbulent political background that has seen aid cuts. In a report published in June, the OECD stated that official development assistance may fall by 17% in this year, after a 9% decline in 2024. This is due to President Donald Trump's massive cuts in U.S. government aid. In a press release, GCF Co-Chair Seyni NAFO said: "At a moment when collective climate action has never been more necessary, GCF is taking steps to fulfill its mandate." The GCF has allocated $227 million to expand the green bond market in 10 countries. Green bond markets is where companies raise funds for projects that reduce climate change or benefit the environment. In South Asia it will invest 200 million dollars in the India Green Finance Facility, which will scale up renewables and energy-efficiency, while in East Africa, it will spend $150 million on the food system, to support almost 18 million people. All projects combined will bring GCF's investment portfolio up to $18 billion in 133 different countries. To date, countries have paid $21 billion and pledged 29.9 billion dollars to the GCF. The GCF board approved plans for a faster pace of work with its partners, including accrediated entities such as other multilateral lenders or so-called Direct Access Entities (DAEs) in developing countries. The aim is to reduce the average time taken to accredit an DAE to nine months by revising its procedures and completing much of the due diligence during the project phase. (Reporting and editing by Emelia Sithole Matarise; Virgina Furness, Simon Jessop)
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Eastern China is sweltering under an early heatwave that threatens crops and industry
On Friday, sweltering heat engulfed China's east coast as a high pressure system settled over its most populous area, baking agricultural and manufacturing hubs on the Yangtze River, and raising fears of potential economic losses. Over the next week, large swathes in China's economic core are expected to reach temperatures between 37 and 39 degrees Celsius (99 and 102 Fahrenheit). Forecasters warn that temperatures in parts of Anhui, Zhejiang, Hubei, and Henan provinces could reach 40 C. This year, the subtropical heat wave has come early. The 'Sanfu Season,' an ancient agricultural mark in China that has been used for more than two millennia, usually begins mid-July. It lasts until late August. People seek shelter from the intense heat of summer. Meteorologists have linked extreme heat to climate change. This has become a major problem for Chinese policymakers. In addition to scorching crops and eroding incomes from farms, higher temperatures also impact manufacturing hubs, disrupt operations in important port cities and strain the already overburdened health care systems. Authorities in eastern and central China warned workers about the dangers and urged them to take precautions. Extreme heat and high humidity combined with commutes create a higher risk of heatstroke. China experienced its worst heatwaves in 2022. Many parts of the country were subjected to a 79 day hot spell between mid-June and late August. China doesn't keep a count of heat-related deaths and neither did the Chinese government. However, domestic media sometimes report on fatalities that are attributed to local authorities. A report in The Lancet from 2023 estimated that heat wave-related deaths in the second largest economy in the world would double to 50,900 in 2022. The national meteorological center forecasts more torrential rainfall in parts of north and south-west China this weekend. Videos on Chinese social media show residents canoeing their way through the flooded streets of Chengdu. (Reporting and editing by Lincoln Feast, Xiuhao Chan and Joe Cash.)
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Sources say that the hydrotreater at Marathon Galveston Bay Refinery will remain closed until September.
Sources familiar with the plant's operations on Thursday said that a fire-damaged hydrotreater will be closed at Marathon Petroleum Galveston Bay Refinery, Texas until September. All other units at the 631,000-barrel-per-day (bpd) refinery in Texas City, Texas, are operating at or near full capacity following the June 14 fire at the 400 train hydrotreater, which is part of the 64,000-bpd Residual Hydrotreating Unit (RHU), the sources said. Sources who refused to identify themselves because the information was not publicly available did not quantify exactly the production impact. In an email sent Thursday night, Jamal Kheiry, the spokesperson for Marathon, declined to comment on operations at its refinery. According to the U.S. Energy Information Administration, the Galveston Bay Refinery has the second largest capacity in the United States. The 400 train is the third of three hydrotreaters that are part of the RHU. It uses hydrogen to remove sulfur in feedstocks, and products derived from them. This helps to meet U.S. Environmental Rules. The RHU has also a heavy oil unit which uses hydrogen as a boost to the motor fuels feedstocks, which can be squeezed from residual crude. This thick residue is most commonly used to make petroleum coke and asphalt. Sources said that following the fire, production of the 144,000 bpd gasoline producing fluid catalytic Cracker 3 (FCC-3), was reduced for several days. Reporting by Erwin Seba, Editing by Sandra Maler & Jamie Freed
Stocks drop as Trump says tariffs start Tuesday; euro gains
U.S. stock prices ended sharply down Monday. The S&P 500 posted its largest daily percentage drop since 18 December after U.S. president Donald Trump announced that 25% tariffs will be implemented on Canada and Mexico on Tuesday. Meanwhile, the euro gained after European leaders agreed on a peace plan for Ukraine.
The U.S. Indexes fell to session lows following the tariff news. After the tariff news, both the Canadian dollar and Mexican Peso hit a one-month low.
Trump said that there was "no space left" to negotiate a deal which would avoid the tariffs against Canada and Mexico. He said that reciprocal tariffs would begin on April 2.
"It appears that tariffs will definitely go through, and this increases the likelihood of a serious economic fallout." Thomas Martin, Senior Portfolio Manager at Globalt Investments Atlanta said that the markets were not interested in waiting for this to happen.
"Saying 'no space' for negotiations is a firm line, an absolute statement."
General Motors shares fell 3.6%, while other automakers also declined.
U.S. data released on Monday also affected stocks. The data showed that manufacturing was stable in February. However, a measure at the factory door jumped to nearly three-year levels and material deliveries took longer. This suggests that tariffs will soon affect production.
The Dow Jones Industrial Average dropped 649.67 points or 1.48% to 43,191.24, while the S&P 500 declined 104.78 or 1.76% to 5,849.72, and the Nasdaq Composite was down 497.09 or 2.64% to 18,350.19.
MSCI's global index of stocks fell by 7.14 points or 0.83% to 855.81. The pan-European STOXX 600 ended up by 1.07% with shares of European arm makers surging.
The dollar index, which measures greenbacks against a basket currencies, dropped 0.72% at 106.54.
After the clash between Trump and Ukrainian President Volodymyr Zelenskiy in the Oval Office, European leaders decided to create a peace plan that they would present to the United States.
"That is certainly a positive thing for Europe, because it unifies more of Western Europe, including Ukraine, and draws a line in the sand for the Russians who have made it very clear that they wish to recreate the Soviet Union," said Tim Ghriskey senior portfolio strategist with Ingalls &Snyder, based in New York.
Reports indicate that the parties involved in discussions to form Germany's next government may consider setting up a defence fund.
Bitcoin fell after a weekend of highs, as Trump suggested a possible new U.S. Strategic Reserve that would include tokens.
Trump announced on Truth Social on Sunday that his executive order of January on digital assets will create a stockpile, including Bitcoin, ether, Solana, and Cardano.
Trump did not provide any details on the fund's operation, but the news was enough to revive the crypto bulls who were severely beaten last week.
Matt Simpson, City Index's senior analyst and market expert, said that Trump had just given crypto traders the boost they were waiting for.
Bitcoin fell 8% on Sunday.
The yields on longer-dated U.S. Treasury bonds fell following the latest manufacturing sector reading.
The yield on the benchmark U.S. 10 year notes dropped 7 basis points from 4,229% to 4.159% on Friday.
This week, the U.S. payroll report for January is due this Friday.
Recent economic data that have been softer has led to expectations that the Federal Reserve will be more active about lowering interest rates.
The Fed is expected to reduce rates by 67 basis points this year. Earlier, the Fed was believed to have reduced rates by 50 basis points.
There is a general expectation that the European Central Bank will cut rates at its meeting on Thursday. However, there are fewer expectations about what this might mean for the outlook of monetary policy, due to geopolitical issues.
The oil price fell 2%, to a new 12-week low. This was due to reports that OPEC+ would increase its planned oil production in April.
Brent futures dropped $1.19 or 1.6% to settle at $71.62 per barrel. U.S. West Texas Intermediate crude (WTI), however, fell $1.39 or 2.0% to settle at $68,37.
Spot gold rose 1.1%, to $2.890.57 per ounce. (Additional reporting in London by Amanda Cooper and Carolina Mandl; editing by Edwinn Gibbs and Emelia Sithole Matarise in New York, Susan Fenton in New York, Richard Chang in New York, and Nia William in London)
(source: Reuters)