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Oil drops on eased Russia supply concerns following Trump-Putin meeting
The oil prices fell on Monday, as the U.S. failed to exert further pressure on Russia in order to end the Ukraine conflict by implementing additional measures to disrupt Russian crude exports following the Friday meeting between the presidents of both countries. Brent crude futures fell 26 cents or 0.39% to $65.59 a bar by 0028 GMT, while U.S. West Texas intermediate crude was down 18 cents or 0.29% at $62.62 a bar. The U.S. president Donald Trump met with Russian President Vladimir Putin on Friday in Alaska and came away more aligned to Moscow regarding the need for a peace agreement instead of first a ceasefire. Trump will meet with Ukrainian President Volodymyr Zelenskiy on Monday, and European leaders to reach a quick deal to end Europe’s deadliest conflict in 80 years. The U.S. President said that he would not have to immediately consider retaliatory duties on countries like China because they bought Russian oil, but he might "in two to three weeks". This will help to calm concerns over a disruption of Russian supply. China is the world's largest oil importer, followed by India. Helima Croft, an analyst at RBC Capital, said that the primary issue was the secondary tariffs targeting key importers. President Trump has indicated he would pause taking incremental action, at least in China. Croft stated that the status quo is largely unchanged for the time being, and that Moscow would not back down on its territorial demands. Ukraine and certain European leaders are expected to reject a land-for peace deal. Investors will also be watching Federal Reserve Chairman Colin Powell’s remarks at the Jackson Hole Meeting this week for clues about the direction of interest rate reductions that could propel stocks to new record highs. Tony Sycamore, IG's market analyst, said that he expected him to remain non-committal. He would also be dependent on data.
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China still stores crude oil despite refinery run-up: Russell
China's refiners increased their processing rates in the month of July. However, strong crude oil imports from abroad and domestic production meant that there was still an excess of over half a million barrels a day (bpd). Calculations based on data from the official sources show that crude oil surplus in July dropped to 530,000 barrels per day (bpd) from 1.42million bpd. The key is that refiners will likely continue to add to their stockpiles despite the drop in oil surplus. This will allow them the ability to reduce imports if prices increase to levels they feel are not justified. China does not reveal the volume of crude oil flowing in or out of its strategic and commercial stockspiles. However, an estimate can still be made if you subtract the amount of crude oil that is available through imports and domestic production from the total crude. Refiners in July processed 14.85 millions bpd crude, an increase of 8.9% over the same period last year. However, this was a decrease of 2% compared to June, which had been the highest month since September 2023. According to data released by the government on August 15, the utilisation rate increased to 71.84%, an increase of 1.02 percentages points from June, and 3.56 percentages points from July 2024. In July, China's crude imports were 11.11 million barrels per day (bpd), while its domestic production was only 4.27 million. The refiners had a total of 15,38 million bpd available. Subtracting the 14,85 million bpd processed, leaves an excess of 530,000. The surplus crude in China for the first seven month of the year was 980,000 bpd. This is mainly due to the fact that crude imports, domestic production and refinery processing increased at a higher rate from March. Not all this excess crude has likely been stored, as some is processed in plants that are not included in the official data. Even if you ignore the gaps in official data, there is no doubt that since March China has imported crude oil at a rate far greater than what it requires to meet its own domestic fuel needs. CRUDE IMPORTS The market will be looking to see if the recent strength of crude imports is going to continue or if it will decrease in the coming months, as refiners begin using more oil from their stocks. Prices are the key. China's refiners tend to increase imports when prices seem reasonable but reduce them when prices have increased too much or too fast. The rise in crude imports since March coincided with the decline in prices. Brent crude, the global benchmark, fell from an all-time high of $82.63 per barrel on January 15, to a low of just $58.50 per barrel on May 5. Brent crude oil prices have been volatile since then. The conflict between Israel, Iran and the United States, which was later joined by other countries, sent Brent to an all-time high of $81.40 per barrel on June 23. Prices then dropped to $65.57 a barrel in the early Asian trading on Monday. China may reduce imports of cargoes due to arrive in late August or early September because the prices have risen from their low in May to the high in June. This is the period when they were planned. China may buy less cargoes as a result of the move by Saudi Arabia, the world's largest exporter, to raise its official selling price for August- and September-loadings. Imports of crude oil may be held up if the rate of refinery processing continues to increase and Chinese refiners keep up their recent trend of supplying more fuels, such as gasoline and diesel. You like this column? Check out Open Interest, your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of a columnist, who is also an author.
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Ampol's H1 profits slump on lower volumes and refinery margins
Ampol, Australia's largest fuel retailer, posted a 23% drop in profit for the first half 2025. The result was better than expected, as it was affected by weather and operational disruptions. The planned maintenance shutdowns, as well as production losses due to a cyclone, disrupted the operations. Meanwhile, low Singapore refining margins impacted profitability at the Queensland refinery. The refinery's operating profit fell from A$89.5 to A$1.1 (roughly $716,210) compared to A$89.5 a year earlier. Earnings from the fuel and infrastructure division were also reduced by almost half to A$118.3 millions. The company's net income after taxes from its continuing operations dropped to A$180.2m on a cost-replacement basis for the six month period ended June 30 compared to A$233.7m a year earlier. This was a significant increase over the Visible Alpha consensus estimate, which was A$165.6 Million. Ampol announced an interim dividend at 40 Australian cents a share. This is lower than the 60 Australian cents a share that was paid out last year.
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Oil prices drop as Russia's supply concerns ease following Trump-Putin meeting
The oil prices fell in the early Asian trading on Monday, as the United States didn't exert any more pressure on Russia for the end of the Ukraine War by implementing additional measures to disrupt Moscow’s oil exports following the presidents of both countries meeting on Friday. Brent crude futures fell 32 cents or 0.49% to $65.53 a barrel by 2213 GMT, while U.S. West Texas intermediate crude dropped 23 cents to $62.57 a barrel. The U.S. president Donald Trump met with Russian President Vladimir Putin on Friday in Alaska and came away more aligned to Moscow regarding the need for a peace agreement instead of first a ceasefire. Trump will meet with Ukrainian President Volodymyr Zelenskiy on Monday, and European leaders to reach a quick deal to end Europe’s deadliest conflict in 80 years. Helima Croft, an analyst at RBC Capital, said that the primary issue was the secondary tariffs against the main importers of Russian oil. President Trump has indicated he is halting his incremental actions on this front - at least in China. She said that the status quo is largely unchanged for now, and that Moscow would not back down on its territorial demands. Meanwhile, Ukraine and certain European leaders may balk at a land-for peace deal.
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Spain fights 20 major fires in scorching heat and deploys more soldiers
The scorching heat on Sunday made it difficult to control 20 major fires in Spain, leading the government to send 500 additional troops from its military emergency unit to help with the firefighting efforts. In the northwest region of Galicia several fires have converged to form a large fire, forcing the closing of highways, and rail services in the region. Spain is one of the worst-hit countries in Southern Europe, experiencing its worst wildfire season in 20 years. Portugal, which is next door, has also been battling widespread fires. In just the last week, three people have died and more than 115,000 acres of land have been burned. The Spanish weather agency AEMET has said that temperatures could reach 45 degrees Celsius on Sunday in some parts of the country. "We still have some difficult days ahead, and unfortunately the weather isn't on our side," said Prime Minister Pedro Sanchez at a press conference in Ourense. This was one of the worst affected areas. He announced that the number of soldiers deployed in Spain has increased to 1,900. Virginia Barcones of the Spanish Public Television, Director General of Emergency Services, said temperatures are expected to fall from Tuesday but that for now, weather conditions are "very adverse". Barcones stated that "Today, there is an extremely high temperature with a very high risk of fires. This complicates firefighting efforts." VILLAGERS RESORT BUCKETS The desperate neighbours of Villardevos, Galicia have gathered water buckets to fight the fires themselves as there is no electricity in the area to power the water pumps. "Fireplanes are everywhere, but not here," Basilio Rodrguez, a local resident, said on Saturday. Another local resident, Lorea Pascual said: "It is insurmountable. It couldn't get worse". According to data from the Interior Ministry, 27 people were arrested and 92 others were being investigated for arson suspicions since June. According to preliminary data from the ICNF forestry institute, wildfires in Portugal have burned 155,000 hectares so far this season - three times more than the average for the period 2006-2024. Around half of this area was burned in just the last three days. Eight large fires were being fought by thousands of firefighters in northern and central Portugal. The largest was near Piodao - a picturesque mountainous region popular with tourists. Trancoso is further north and another fire has been burning for eight days. On Friday, a smaller fire in the area east of Trancoso claimed a local's life - it was the first death this season. Reporting by Guillermo Martinez and Ana Cantero; editing by Andrei Khalip, Clelia Oziel and Andrei Khalip
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Russia claims to have prevented a Ukrainian drone attack against Smolensk Nuclear Power Plant
The Russian Federal Security Service (FSB), said it prevented a Ukrainian drone from attacking the Smolensk Nuclear Power Plant in western Russia, on Sunday. Smolensk, a Soviet-era nuclear power plant, is located about 330 km southwest of Moscow, near the border with Belarus. It has three RBMK-type reactors, which are the same design as those at Chernobyl. The FSB (the main successor of the Soviet KGB) said that Russian radio-electronic war systems intercepted a Ukrainian UAV over the territory Smolensk Nuclear Power Station. The FSB released a statement saying that "Electronic Warfare forces intercepted a aircraft-type UAV – a Ukrainian made 'Spis" attack UAV – over the territory the Smolensk Nuclear Power Plant." The Ukrainian military continues to provoke by attempting an attack on Russian nuclear power facilities using unmanned aerial vehicles. Smolensk Nuclear Power Station said that it is operating normally. No damage was reported to the reactors or other key infrastructure. RIA Novosti, the Russian state-owned news agency, published images of what it called parts of the drone. Interfax reported that the Russian defence ministry claimed the Ukrainian drone was heading toward the Smolensk Nuclear Power Station. It was not possible to verify immediately the battlefield reports of either side. Ukraine did not immediately comment on the Russian reports. (Reporting and editing by Guy Faulconbridge).
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Uganda targets increased exports with its first large-scale Gold Mine
Uganda's first large-scale mine for gold has been inaugurated. The project, which is owned by China and costs $250 million, will refine the gold to 99.9% purity. The east African landlocked country has copper, cobalt, and iron ore among other minerals. It wants to expand the mining industry, and become a major gold exporter and producer. According to data from the central bank, Uganda's gold exports accounted for $3.4 billion in revenue last year, or 37% of its total export revenues. This figure includes gold that was brought into the country and is re-exported. Nearly all of the domestic production comes from small-scale, artisanal mines. Although its gold export earnings increased in recent times, it still lags behind Africa's biggest bullion producer Ghana which earned $11.6 billion last year from the shipment of metal. In a late-Saturday statement, President Yoweri Mueveni stated that "to wake up the minerals sector we must have full added value for all minerals, like gold, lithium and tin, among others." Museveni inaugurated the Wagagai Gold Mining Project on Saturday. The project, which is owned by Wagagai Mining (U) Limited, covers just over nine square kilometers in Busia District. According to a statement, the plant has begun operations and is expected to process about 5,000 tons gold ore each day, producing 1.2 metric tonnes of refined gold per year. Uganda's domestic production in 2023 will be just 0.0042 tonnes. Museveni stated that Uganda will use revenue generated from gold exports to develop assets like power stations and its railway. The landlocked country of Uganda is building a standard gauge rail system worth 2.7 billion euros ($3.16 billion), to reduce costs associated with transporting exports and imported goods via Kenya. ($1 = 0.8549 euro) (Reporting and editing by Wendell Roelf, Kirby Donovan).
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Northern China flash flood kills 8, Xinhua reports
State media reported that at least eight people died in a flash flooding in northern China on Sunday. Four others are still missing. The East Asian monsoon is continuing to create atmospheric chaos in the second largest economy in the world. Reports said that the banks of a river flowing through grasslands in Inner Mongolia burst around 10:00 pm (1400 GMT) Saturday night, washing 13 campers away on the outskirts Bayannur city, a major agricultural center. One person was rescued. Since July, China has been hit by weeks of extreme weather. The monsoon is stalling in the north and south. As flash floods threaten to displac thousands of people and cause billions in economic losses, weather experts are putting officials under pressure. Bayannur, a major national base for grain and oil production as well as a centre of sheep breeding and processing, is a key location in the country. At the other end of the country, a three-and-a-half-month fishing suspension in the southern province of Hainan ended on Saturday, state media reported, after agricultural affairs officials ordered ships to shelter in port owing to persistent, heavy rain. A police report on Saturday stated that "severe" weather caused two deaths and three injuries at a beer fest in Mianzhu on Friday. The truss had fallen on the festival attendees. Inner Mongolia is experiencing a deluge after a deadly rainstorm in Beijing, just over 1,000 km away. Last month, the downpour killed 44 people in Beijing and forced more than 70,000 residents to evacuate. Last week, the central government allocated 430 million yuan (59.9 millions) for new funding to help with disaster relief. This brings the total amount of funds allotted since April up to at least 5,8 billion yuan.
Brazil's Lula criticizes Trump tariffs during a meeting with Putin
Brazilian President Luiz Inacio Lula da Silva, who met with Russian counterpart Vladimir Putin on Friday in Moscow, criticized the U.S. president Donald Trump's policies regarding trade and tariffs. He said that they were harmful to multilateralism.
Lula is visiting Russia to celebrate the 80th anniversary since the Soviet Union defeated Nazi Germany during World War Two. Russia celebrated this milestone on Friday.
Major Military Parade
Also in attendance was Chinese President Xi Jinping.
"The recent decisions of the U.S. President to unilaterally impose tariffs on all trade with countries around the world undermines the great idea? "Free trade and strengthening multilateralism" was Lula's message during a bilateral discussion with Putin.
Leftist leader says he wants to boost Brazil's strategic relationship with Russia. He cites "political and commercial interests, as well as cultural, scientific, and technological ones" in order to increase trade.
Lula also mentioned that he would be interested in working with Russia to build small nuclear power plants.
Brazil and Russia were both founding members of BRICS, a group of emerging economies that includes India, China and South Africa, as well as the newest additions, Egypt, Saudi Arabia and the United Arab Emirates. Ethiopia, Indonesia, and Iran are also part of this group. (Reporting and writing by Isabel Teles, with additional reporting by Lisandra paraguassu. Editing by Mark Heinrich.
(source: Reuters)