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Galp Secures Three Exploration Blocks in Brazil
Portugal's Galp has been awarded three offshore blocks as part of Brazil’s fifth Open Permanent Concession bid round.Galp acquired offshore early-stage exploration blocks P-M-1670/1672/1741 in the Pelotas basin, in the southern region of the country.The awarded consortium is composed by Petrobras, as operator with 70%, and Galp with a 30% interest.The gross aggregate signature bonus for the blocks amounts to approximately $2.08 million.The fifth cycle of the Permanent Concession Offer hosted today by the Brazilian National Petroleum, Natural Gas and Biofuels Agency (ANP).
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EEW SPC Delivers Last Three Monopiles for Sofia Offshore Wind Farm
EEW Special Pipe Constructions (EEW SPC) has loaded out the last three monopiles for RWE’s 1.4 GW Sofia offshore wind farm, being built off the U.K.’s North East coast.The total of 100 monopiles, with weights of 1,143 to 1,521 tons and lengths of up to 91.8 meters, were loaded onto a barge without incident using the RoRo (roll on/roll off) method with EEW's own SPMTs.In the meantime, 90 foundations have been transported to the installation site in the North Sea and installed by the transport and installation company Van Oord using the ship Aeolus.The Sofia wind farm will go into operation in 2026 and will then produce green electricity for around 1.2 million British households.Currently under construction on Dogger Bank, 195 kilometers from the nearest point on the U.K.’s north east coast, it will comprise 100 Siemens Gamesa 14 MW offshore wind turbines.First Turbine Stands Tall at RWE’s Sofia Offshore Wind FarmSofia Offshore Wind Farm Buzzing with Construction Activity
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Dalian iron ore continues to decline as China property slump weighs
The price of iron ore futures eased on Thursday for a sixth consecutive session, as the protracted property crisis in China continued to weigh down on demand prospects. As of 0300 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.36% lower. It was priced at 692.5 Yuan ($96.32), per metric ton. The benchmark July ore traded on the Singapore Exchange at $92.35 per ton. Hexun Futures, a broker, stated in a report that the Chinese downstream demand has entered its off-season and inventories are continuing to build. Steelhome data shows that the total iron ore stocks across Chinese ports increased by 1.06% in a week to 133.4 millions tons as of June 13. Hexun added that the market has become cautious and real estate sales have slowed. Official data released on Monday showed that China's new house prices dropped in May, continuing a stagnation of two years. Goldman Sachs projected late Monday that demand for new homes will remain below the 2017 market peak in the coming years. This suggests that China, the second largest economy in the world, is in for a prolonged property slump. The dollar index (which measures the currency in relation to six other units) was at 98.957, and it is expected to gain 0.8% for the week. This will be its best weekly performance since the end of February. Dollar-denominated investments are less affordable for holders of currencies other than the greenback. Coking coal and coke, which are both steelmaking ingredients, fell by 1.07% and 0.69 %, respectively. The benchmarks for steel on the Shanghai Futures Exchange are mixed. The benchmarks for steel on the Shanghai Futures Exchange were mixed.
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As Middle East tensions increase demand, gold prices are on the rise
Gold prices rose on Thursday as the Middle East tensions boosted demand for safe-haven assets. However, the cautious U.S. Federal Reserve stance regarding future rate reductions kept gains in check. As of 0215 GMT, spot gold rose 0.2% to $3,376.48 per ounce. U.S. Gold Futures fell 0.4% to $3393.70. Gold has seen a modest rise as we wait for the next step in the Israel-Iran dispute. "If the U.S. decides to directly get involved in the conflict, this could increase the geopolitical risks," KCM Trade's Chief Market Analyst Tim Waterer stated. As geopolitical tensions increased, U.S. president Donald Trump refused to confirm whether the U.S. will join Israel in its bombardment of Iranian missile and nuclear sites on Wednesday. Residents of Tehran were forced to flee the city as air strikes continued. Two U.S. government officials said on Wednesday that the U.S. military had moved aircraft and ships out of bases in the Middle East which could be vulnerable to an Iranian attack. Gold is used to store value in times of geopolitical or financial uncertainty. The Fed kept interest rates unchanged on Wednesday. Fed policymakers are still expecting to cut rates by a half-percentage-point this year but have slowed down the pace. Jerome Powell, Fed chair, warned against placing too much emphasis on this forecast, warning that "meaningful" inflation is coming as import tariffs increase. "The Fed wasn't as dovish and hawkish as many had hoped. I would argue Powell was just a little more hawkish than most people wanted. Matt Simpson, senior analyst at City Index, said that the U.S. Dollar is likely oversold and this will likely cap gold gains over the next couple of weeks. Platinum rose 1.5% to 1,342.36, and palladium increased 0.6% to 1,055.18.
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Copper prices remain flat as traders evaluate geopolitical risk and supply constraints
The Shanghai Futures Exchange (SFE) and London Metal Exchange (LME) saw a largely flat price for copper on Thursday as the market focused mainly on the developments in the Israel/Iran conflict, while a tight supply supported the price. The LME’s three-month contract for copper was almost flat at $9,657.50 a metric ton as of 0107 GMT. SHFE’s most traded copper contract also showed little change, with a decline of 30 yuan, to 78 590 yuan (about $10,930.31) per ton. Investors closely followed tensions in the Middle East as U.S. president Donald Trump kept the rest of the world guessing as to whether Washington would join Israel’s bombardment against Iranian nuclear sites. The conflict entered its seventh-day. ANZ stated that in the long term, "any sustained increase in energy prices will likely end up weighing on the copper markets due to the higher costs to producers," Copper supplies are limited, and stocks are low In LME-registered storage warehouses, 107,350 tonnes has dropped 60% since March and is at its lowest level since May 2024. The U.S. Central Bank held interest rates at the same level on Wednesday, signaling that borrowing costs will likely continue to decline in 2025 (nL6N3SL0HH), while the U.S. Dollar Index traded higher against the majority of major currencies. Metals prices tend to rise when the dollar increases, limiting gains in price. LME aluminium remained flat at $2.546, tin rose by 0.3% to $22,465, while zinc gained 0.1%, reaching $2,640. Lead increased 0.1%, to $1.995.5. Nickel increased 0.1%, to $15,065. SHFE nickel rose by 0.6% to 119.030 yuan per ton. Tin increased 0.3% to 264,240 yuan. Aluminium advanced 0.2% at 20,680, lead advanced 0.2% at 16,870, and zinc fell 0.1% to 21980 yuan. Click or to see the latest news in metals, and other related stories. (GMT 1100 UK BOE June Bank Rate)
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Nippon Steel CEO downplays risk of management freedom under US golden share
Nippon Steel's CEO stated on Thursday that the U.S. Government's ownership in a golden stake in U.S. Steel would not prevent it from taking management actions as it sees fit. Eiji Hashimoto spoke at a Tokyo press conference a day after Japan’s top steelmaker completed its $14.9 billion purchase of U.S. Steel. The companies confirmed they agreed to grant the U.S. Government unusual powers, which helped to end Nippon Steel’s 18-month struggle for a deal. The agreement on national security signed with the Trump Administration gives the government an economic golden share, and the president has the power to name board members. Hashimoto replied, "It will not prevent us from doing whatever we want," when asked about the impact of golden shares on management freedom. He said that Nippon Steel had proposed the golden share. After a long and rocky road to approval, spurred on by high-level opposition from politicians, the final deal reached with the U.S. Government represents an unusually high level of control that the companies conceded to save the deal. The golden share grants the U.S. Government a veto on any future acquisitions, relocation of U.S. Steel from Pittsburgh, a change in name, or a possible transfer of jobs abroad. Nippon Steel is also required to invest approximately $11 billion by 2028 in the U.S. as part of the agreement signed with the Administration. Hashimoto stated that he did not see any problem with this requirement, as the company intends to expand its investments beyond current plans. He said that the Trump administration's shift in policy towards higher tariffs increased the strategic value of the U.S. Steel purchase. (Reporting and writing by Yuka Obayashi, Editing by Sonali Paul; Written by Chang-Ran kim)
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As the Middle East conflict escalates, Asian stocks fall and gold increases with yen.
The stock markets in Asia dipped on Thursday, while safe havens like gold and the Japanese currency gained. Investors remained on edge as they awaited the United States' possible involvement in the Israel-Iran war. Donald Trump, who spoke to reporters in front of the White House Thursday, said, "I might do it." I may or may not do it." The Wall Street Journal reported that Trump told his senior aides that he had approved plans for an attack on Iran, but was waiting to give the final order until Tehran abandoned its nuclear program. The Nikkei fell 0.8% in Japan, and the yen's strength, which lowers overseas revenue for Japan's major exporters, added to the downward pressure. Taiwan's benchmark stock index fell 0.9% and Hong Kong's Hang Seng dropped 0.8%. U.S. S&P500 futures were 0.4% lower on Thursday, despite the fact that most U.S. market are closed for a holiday. Gold rose 0.3% to $3.378 an ounce. Kyle Rodda is a senior financial market analyst at Capital.com. He said, "Market participants are still edgy. He said: "Speculations remain rife -- probably strategically fed by the Trump Administration -- that the U.S. would intervene. This would be a material escalation, and could invite direct retaliation by Iran against the U.S. This scenario could lead to a regional conflict that would have implications for the global energy supply, and possibly economic growth. Brent crude slipped to $76.32 a barrel but was still not far off the peak reached Friday, which was $78.50. The yen rose 0.2%, to 144.92 dollars, and the U.S. dollar itself gained 0.1%, to $1.1472 euros, and 0.2%, to $1.3398 against sterling. The Swiss Franc fell 0.1%, to 0.8193 dollars. Both the Bank of England (BOE) and the Swiss National Bank (SNB) will announce their policy decisions in the afternoon. The BOE is expected to maintain interest rates at current levels, while the SNB may cut rates by up to 25 basis points. The Federal Reserve sent mixed messages to the markets overnight. As expected, policymakers kept rates at the same level and maintained projections of two quarter-point cuts in interest rates this year. Jerome Powell, the Fed chair, was cautious about future easing, and said at a press conference that he expected "meaningful" inflation as a result Trump's aggressive tariffs.
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Oil prices fall as investors consider the possibility of US intervention in Iran/Israel conflict
Oil prices fell on Thursday, as investors were hesitant to make new investments after U.S. president Donald Trump's mixed signals about the country's possible involvement in the ongoing Israel/Iran conflict. Brent crude futures dropped 37 cents or 0.48% to $76.33 per barrel at 0110 GMT, after rising 0.3% during the previous session, which was marked by high price volatility. Prices fell as much as 2.7%. U.S. West Texas Intermediate Crude for July dropped 28 cents or 0.37%, to $74.86 per barrel. It had risen 0.4% the previous month despite a drop of up to 2.4%. The August contract, which is more active, was down 21 cents or 0.29% to $73.29 per barrel. Tony Sycamore said that traders are still waiting to see if the next step in the Israel-Iran conflict will be a U.S. military strike or peace negotiations. Sycamore stated that the former could cause prices to increase by $5, while peace talks may lead to a decline of about the same magnitude. Trump told reporters on Wednesday that he could decide to have the U.S. join Israel's missile attacks against Iran. On Thursday, the conflict entered its seventh day. Analysts say that direct U.S. involvement in the conflict would escalate the conflict and increase the risk of an attack on the energy infrastructure. Iran is OPEC’s third largest producer. It extracts about 3.3 millions barrels of crude oil per day. The Strait of Hormuz is a vital waterway that transports 19 million barrels of oil per day (bpd) and its products. There are widespread concerns about the impact of the fighting on trade. The U.S. Federal Reserve held interest rates at the same level on Wednesday, but penciled in two rate reductions by the end the year. Jerome Powell, the chair of the Federal Reserve, cautioned that rate cuts will be "data dependent" and said more consumer inflation was expected as a result of President Trump's import tariffs. Lower interest rates could stimulate the economy and increase demand for oil. However, this could also lead to an increase in inflation. (Reporting and editing by Christian Schmollinger; Colleen howe)
IEA: World oil demand will continue to grow this decade despite China's peak in 2027
The International Energy Agency announced on Tuesday that global oil demand would continue to grow until the end of the decade, despite a peak in China's top importer in 2027. Cheaper gasoline and a slower adoption of electric vehicles in the United States will support oil consumption. The IEA which advises industrialised nations did not alter its prediction that oil demand would peak in this decade. This is a stark contrast to the view of the producer group, the Organization of the Petroleum Exporting Countries, who say consumption will continue to grow and have not predicted a peak.
A table from the IEA annual report in Paris shows that oil demand will reach a peak of 105.6 million barrels a day (bpd), by 2029, and then begin to decline in 2030. Global production capacity will rise by over 5 million barrels per day (bpd) to 114.7 millions bpd in 2030, according to the IEA's annual report.
Conflict between Israel and Iran highlighted the risks to Middle East oil supplies, which helped send oil prices up by 5% on Friday to over $74 per barrel. The IEA stated that the latest forecasts indicate ample supplies until 2030 if no major disruptions occur.
Fatih Bilo, IEA's Executive Director, said in a press release that the oil market will be adequately supplied in the coming years. Birol stated that recent events have brought to light the geopolitical threats to oil supply.
China's oil consumption has slowed down after decades of being the world leader in global demand. It is also facing economic challenges and a major shift to electric vehicles. According to the IEA, oil consumption in the world's second largest economy will peak in 2027 due to a boom in EV sales, high-speed rail, and trucks that run on natural gas. The IEA predicted in February that China's demand may already have peaked for fuels used for air and road transport.
The IEA has said that China's total oil demand in 2030 will only be marginally higher than it was in 2024. This is compared to the growth of 1 million bpd predicted in last year's IEA report.
The IEA reported that lower gasoline prices in the United States and slower EV adoption have increased the 2030 oil forecast by 1.1 millions bpd compared to the previous prediction. Donald Trump, the U.S. president who returned to office in 2017, has been demanding lower oil prices from OPEC and taking aim at EVs by signing resolutions that were approved by legislators. (Editing by Tomasz Janovowski)
(source: Reuters)