Latest News
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Kazakhstan's oil production is expected to exceed plans in this year, reports TASS
Erlan Akkenzhenov, the Energy Minister, was quoted saying that Kazakhstan's oil production will probably exceed its original plans of 96.2 millions tons for 2024 due to expansion in the Chevron-led Tengiz Field, despite pressure from OPEC+. Kazakhstan has cited the rising production at Tengiz as the reason it has consistently exceeded quotas established by OPEC+. OPEC+ is made up of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Kazakhstan and Russia. The Russian state-run news agency TASS reported that Akkenzhenov said in a podcast on Thursday night that the expansion of Tengiz was brought forward earlier than planned this year. This increased production by 25%. He said that "we will probably end the year higher than" the planned production of 96.2 millions tons, which is equal to about 2 million barrels per daily (bpd). A request for a comment from the Kazakh Energy Ministry was not responded to immediately. The energy ministry of Kazakhstan has stated repeatedly that it is committed the OPEC+ accord. Kazakhstan's OPEC+ quota rose from 1.473 to 1.486 millions bpd under the latest OPEC+ deal. Western oil companies, such as Shell, TotalEnergies, Eni, ExxonMobil, and Chevron are involved in oil projects in Kazakhstan. (Reporting and editing by Mark Trevelyan; Vladimir Soldatkin)
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Taliban talks with Russia and China about trade in local currency
Afghanistan's acting Commerce Minister said that the Taliban administration has advanced discussions with Russia to allow banks from both sanction-hit economies, Russia and Afghanistan, to settle trade transactions in local currency worth hundreds of millions in dollars. Haji Nooruddin, Azizi's minister, said on Thursday that the Afghan government had made similar offers to China. He said that discussions had taken place with the Chinese Embassy in Kabul. Azizi stated that technical teams in both countries were working on the proposal with Russia. As Moscow looks to use national currencies as a way to move away from the dollar, and Afghanistan is seeing a sharp drop in U.S. dollars entering the country as a result of aid cuts, the move makes sense. "We are engaged in specialist discussions about this issue, taking into account the regional and global perspectives on economics, sanctions and the current challenges Afghanistan faces, as well those that Russia is facing. "Technical discussions are under way," Azizi stated in an interview in his Kabul office. Requests for comments from the Chinese Foreign Ministry and Russian Central Bank were not immediately responded to. Azizi said that bilateral trade between Russia Afghanistan is currently at around $300 million, and this will likely grow as both sides increase investment. He said that his administration expects Afghanistan to purchase more plastics and petroleum products from Russia. Azizi stated, "I'm confident that this option is very good...we can use it for the benefit and interest of our people and country." He said that Afghanistan did around $1 billion worth of trade with China every year. A working team consisting of the (Afghanistan) Ministry of Commerce, the Chinese Embassy which is the authorized body that represents China in economic programs has been formed and talks are currently ongoing. Afghanistan's financial system has been cut off from global banking due to sanctions imposed on certain leaders of the Taliban government, which took control of the country after foreign forces left in 2021. In recent years, the US dollar's dominance as the dominant currency in the world has been questioned again due to the conflict with China and the fallout of the Russian war in Ukraine. In December, Russian president Vladimir Putin questioned whether it was necessary to keep state reserves in foreign currency, as they could be easily confiscated for political purposes. He said that domestic investments of such reserves were more attractive. Dollars have dominated commodity trading and Washington has been able to restrict market access to producers from Russia, Venezuela and Iran. Since 2022, Afghanistan has imported gas and oil from Russia. This is the first significant economic agreement since the Taliban returned to the power after 20 years of fighting against U.S. led forces. The United States has cut billions of dollars from aid to Afghanistan this year, and as a result, far fewer dollars are being flown into the country in cash to fund humanitarian operations. The Afghani currency, according to economists and development agencies, has remained relatively stable so far but could face future challenges. Azizi stated that his administration would not run out of U.S. Dollars in Afghanistan due to the stability of its currency and efforts made by the government to increase international investment, including through the Afghan diaspora. Mohammad Yunus Yawar reported from Kabul, and Charlotte Greenfield from Islamabad. Additional reporting was provided by Antoni Sladoski and Elena Fabrichnaya. Editing was done by Raju Gopikrishnan.
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Shell Indonesia transfers gas station business from Citadel to Sefas JV
Shell Indonesia announced on Friday that it has sold its gas station business ownership to a joint-venture between Citadel Pacific Limited, Sefas Group and Citadel Pacific Limited. The company will retain its lubricant division. Shell has said that the deal will be finalized by the end of next year. It includes 200 gas stations and a fuel terminal in Gresik. The move is part of its strategy to transform the company's portfolio. The company stated in a press release that "after completion, Shell will remain in Indonesia via brand licensing agreements." Citadel Pacific, a private holding company based in the Philippines, has businesses across a variety of industries, including aviation, telecommunications, gas distribution and fuel marketing. According to the statement, Sefas Group, the largest Shell distributor in Indonesia is Shell Lubricants. Citadel Pacific Group and Sefas Group have not responded to comments immediately. Shell has said that Indonesia is a key market for growth in its lubricants division. It owns a plant to blend lubricants oils with a capacity of 300 million litres per year and another plant, which is under construction, will produce grease. (Reporting and editing by Bernadette Cristina and Ananda Terresia)
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Iron ore posted a weekly loss due to a slowdown in Chinese steel demand and property weakness
The price of iron ore futures fell on Friday, and the weekly loss was due to persistent property weakness in China along with a slowdown in demand for steelmaking ingredients. The September contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 1.24% lower at 718 yuan (US$99.73) per metric ton. The contract fell by 1.51% in the last week. As of 0707 GMT the benchmark June iron ore traded on the Singapore Exchange had fallen 0.76% to $98.25 per ton, a loss of 1.81% for this week. A poll shows that the property market in China is likely to continue to be weak this year, with home prices expected to fall by nearly 5%. Prices are also set to stagnate in 2026. Mysteel, a consultancy, said that "the inventories of finished products held by Chinese traders...decreased by 398.500 tonnes in one week" during the week between May 16-22. According to Mysteel, the pace of stock decline has slowed due to a combination of hot and rainy weather in China. Everbright Futures, a broker, stated in a report that on the demand side three new blast-furnaces were reopened and six others were overhauled. Everbright said that the hot metal production, which is typically used to gauge demand for iron ore, fell by 11,700 tonnes month-on-month in May to 2.436 millions tons. Analysts at ANZ say that "supply growth has disappeared as producers remain cautious of the weak demand and are increasing use of scrap steel." This should limit the downward movement of iron ore prices. Coking coal and coke, which are used to make steel, also fell, by a combined 4% and 1.81%. The benchmarks for steel on the Shanghai Futures Exchange have lost ground. The rebar fell by 0.42%. Hot-rolled coils dropped by 0.75%. Wire rods declined 0.15%. Stainless steels fell 0.04%. $1 = 7.1991 Chinese Yuan (Reporting and editing by Mrigank Dahniwala, Eileen Soreng).
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Australian shares finish slightly higher after miners limit bank's gains
Australian shares closed slightly higher on the Friday as investors remained cautious due to concerns about domestic growth and global uncertainty. The S&P/ASX 200 closed 0.2% higher at 8,360.9. The benchmark was mostly unchanged for the week. Caution prevailed after Republican-controlled U.S. House voted by a slim margin to pass U.S. President Donald Trump's proposed tax cut bill that could add $3.8 trillion to America's debt. The domestic economy's outlook was also clouded Thursday by a Purchasing Manager's Index reading that was the lowest in three months. The rate-sensitive financials increased by 0.5%, with the "Big Four" banks of the country ending between 0.1% to 0.9%. The Index has gained 0.4% this week, boosted by the Reserve Bank of Australia’s decision to reduce rates by 25 basis-points. Markets are betting that there will be more easing in the future due to potential global trade tensions impacting the local economy. The probability of a rate cut in July has now been priced at 60%, and a total ease of 65 basis points is expected by the end year. The real estate stocks added 0.8%. The sub-index is up over 1% this week. Michael McCarthy, Moomoo Australia's chief executive officer, says that the cautious approach of large funds after the RBA decision caused some volatility, as short-term investors moved quickly in. However, today's gains reflect a growing confidence in rate-sensitive industries offering defensive income streams. While uranium miner Paladin Energy, Boss Energy, and Deep Yellow all rose by 5.8%, 4.2%, and 1.2%, respectively, following reports that Trump planned to sign executive order supporting the nuclear industry. The benchmark S&P/NZX50 index in New Zealand ended 0.5% lower. It ended 1.5% lower after a three-week streak of gains. A poll indicated that the Reserve Bank of New Zealand will lower its cash rate on May 28 by 25 basis points. Sherin Sunny reports from Bengaluru.
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ASIA GOLD - High prices dampen Indian demand for gold, but China premiums remain firm
The physical gold demand in India this week was subdued, as a rise in global prices, a weaker rupee and retail purchases were limited. Premiums in the top consumer China remained stable. This week, Indian dealers offered a discount Last week, the discount was up to $34, but this week it's up to $49 per ounce. Last week, prices were falling and buyers began to buy. Now that the prices have rebounded, buyers are stepping back from the market again", a jeweller in New Delhi said. On Friday, domestic gold prices traded at around 95,900 rupies per 10 grams after reaching a low of 90 890 rupies last week. The rupee dropped to 86.10 per dollar on Thursday. This was its lowest level for more than a week. Jewelers do not want to build inventory at these prices because retail demand is low. A Mumbai-based dealer of bullion with a private banking firm said that they were getting old jewellery for the new. As of Friday morning, 0526 GMT, spot gold was trading at $3,320.37 and was on track for its largest weekly gain in over a month. Prices reached $3,120.14, their lowest since April 10. Dealers in China, the world's largest gold consumer, charged premiums between $16 and $30 per ounce above the global benchmark spot rate. This compares to premiums ranging from $9 to $50 last week. "Chinese Investors seem to have not been spooked" by the gold price reversal, which shows a high degree of conviction. This was stated by Ross Norman an independent analyst. Peter Fung of Wing Fung Precious Metals, the head of trading, predicted that physical demand for gold will remain high in China over the medium and long term. In Hong Kong, gold Dealers in Singapore sold it at a premium of $2. Gold sold at a premium up to $2.50 over the benchmark global price. In Japan, bullion The price was $1 more than the flat rate. (Reporting and editing by Eileen Soreng in Mumbai, Rajendra Jadhav from Bengaluru)
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French and Benelux stocks: Factors to watch
Here are some company news and stories that could impact the markets in France and Benelux or even individual stocks. ARCELORMITTAL Bloomberg News, citing an individual familiar with the deal, reported that Aditya Mittal is the CEO of the steelmaker and will invest $1 billion into a group buyout of the Boston Celtics. EURONEXT It announced on Thursday that the stock exchange operator had placed convertible bonds until 2032, totaling 425 million euro ($481.14million), at a fixed coupon of 1.5% annually. The group of real estate investors announced Thursday that it had completed an bond buyback totaling 265 million euro. SODEXO The French caterer announced on Thursday that the purchase price for some of their outstanding notes due in 2026 will be $975.9. Satellite operator Impulse Space and SES signed a multilaunch agreement to help SES satellites reach their orbital positions faster. The first mission will be launched in 2027 according to the two groups. Pan-European market data: European Equities speed guide................... FTSE Eurotop 300 index.............................. DJ STOXX index...................................... Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurotop 300 sectors..................... Top 25 European pct gainers....................... Top 25 European pct losers........................ Main stock markets: Dow Jones............... Wall Street report ..... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt items......... CAC-40................. Paris items............ World Indices..................................... survey of world bourse outlook......... European Asset Allocation........................ News at a glance: Top News............. Equities.............. Main oil report........... Main currency report..... ($1 = 0.8833 euros)
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Trump presses EU to reduce tariffs or face additional duties, reports FT
Financial Times, Friday, reported that U.S. President Donald Trump’s trade negotiators were pushing the EU for unilateral tariff reductions of U.S. products, saying the bloc would not advance in negotiations without concessions to avoid additional "reciprocal", 20% duties. The newspaper cited unnamed sources to report that U.S. trade representative Jamieson Greer will be preparing to inform European Trade Commissioner Maros Sefcovic, on Friday, that the recent "explanatory notes" provided by Brussels in connection with the talks fall short of U.S. expectation. The FT also stated that although the European Union had been pressing for a framework text to be agreed upon by both sides, the two sides are still too far apart. The report could not be verified immediately. The European Commission and Office of the United States Trade Representative didn't immediately respond to an inquiry for comment. In March, the U.S. imposed tariffs of 25% on EU cars and steel and aluminum. They then imposed tariffs of 20% on other EU products in April. The U.S. then reduced the tariffs by half until July 8 and set a 90-day period for negotiations to reach a comprehensive tariff agreement. The EU, which is made up of 27 member states, suspended its plans to impose retaliatory duties on certain U.S. products and proposed zero duty on all industrial goods for both sides. (Reporting and editing by Jacqueline Wong, Sonali Paul and Mrinmay dey in Bengaluru)
Oil prices fall on stronger US Dollar, possible increase in OPEC+ output
The oil prices fell on Friday due to a stronger dollar and the likelihood that OPEC+ would increase crude oil production.
Brent futures dropped 37 cents per barrel to $64.07 by 0015 GMT. U.S. West Texas Intermediate Crude Futures fell 39 cents to $60.81.
Brent fell 2% in the past week and WTI dropped 2.7%.
The U.S. Dollar strengthened Thursday against a basket of foreign currencies, thanks to the House of Representatives' passage of the bill by President Donald Trump for tax and expenditure cuts.
Oil is usually traded inversely to the dollar, because a stronger dollar makes the commodity costlier for buyers outside the United States.
Bloomberg News' report that OPEC+ would consider a large increase in production at a June 1 meeting also pushed the oil price lower.
The report cited delegates as saying that delegates discussed the possibility of increasing production by 411,000 barrels per day (bpd). However, no agreement was reached.
OPEC+ was reported to have accelerated oil prices.
The price of oil was also affected by a large crude oil stockpile in the U.S. that occurred earlier in the week.
The Tank Tiger storage broker reported that the demand for crude oil in the United States has risen in recent weeks, to a level similar to the COVID-19 epidemic. This is as traders prepare to receive a surge in supply from the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the coming months.
Baker Hughes will release data on Friday that can be used to predict future oil and gas supply. (Reporting and editing by Tom Hogue; Laila Kearney is the reporter)
(source: Reuters)