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Ministry says that a drone attack has stopped the production of Sarsang oil in Iraqi Kurdistan.
Two drones that caused damage to another oilfield near Erbil overnight were the cause of a drone attack on Sarsang, an Iraqi Kurdistan oilfield. Two engineers said that production was stopped as a precautionary step after an explosion occurred at the Sarsang oil field. The Iraqi Kurdistan Ministry of Natural Resources claimed the blast was caused by a drone. The attack has not been claimed by any group, but Iraqi Kurdistan's security sources have said that preliminary investigations suggest that the drone originated from areas controlled by Iran-backed militias. The Ministry did not provide any further details on what it called "a terrorist act". One oil engineer said that heavy plumes of smoke rose from the Sarsang Field in northern Iraq's Dohuk region. HKN Energy, the field operator, said the production halt was due to firefighters trying to put out the fire. They later added that emergency response teams had contained the damage. The ministry and HKN Energy confirmed that there were no injuries. The company stated that the incident was under investigation, and a full damage assessment had been undertaken. It did not provide any further details on the cause of explosion. Two drones damaged the water pipes in the Khurmala Oilfield, near Erbil, Iraqi Kurdistan on Monday. Reporting by Ahmed Rasheed, Writing by Tala RAMADAN and Nayera ABDALLAH Editing by Louise Heavens & David Goodwin
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Wildfires are fuelled by climate change in Europe
In the past month, wildfires have ravaged hotspots across several Mediterranean countries. The blazes forced thousands to lockdown in Catalonia, Spain and even encroached on Marseille, France's second largest city. What is driving wildfires in Europe and what has happened so far this season? How bad is it this year? According to the European Forest Fire Information System, wildfires have burned 227,000 hectares since the start of the year. This is more than twice the average over the last two decades. Although it is above average, the EFFIS records go back to 2002. Europe experienced particularly bad fire seasons between 2003 and 2017 when more than 110,000 hectares of land was burned in each year. This is equivalent to the size of Jamaica. The fire season will determine if 2025 is a record-breaking year. EFFIS reported that the number of fires has also increased in Europe this year. As of July 8, there were 1,118 fires, compared to 716 during the same period in last year. The heatwaves that swept Europe this month ignited fires all around the Mediterranean. This includes in Syria where, according to U.N., more than 3% the forest cover of the country has been destroyed by fire. Wildfires in Greece's Evia and Crete forced thousands to flee their homes this month. While Europe has seen an increase in fires this year, the scientists who have been observing them say that, while they are destructive, the fires in the Mediterranean area have so far remained relatively isolated. WHAT IS DRIVING THEM? Scientists claim that the Mediterranean region is at a high risk for wildfires because of its hotter and drier summers. Fires can spread quickly and out of control in the Mediterranean region due to its dry vegetation. Climate change increases this risk by creating hotter, drier conditions. This has led to fire seasons starting earlier, causing more land to be burned, and breaking records in terms of intensity. Since pre-industrial times, greenhouse gas emissions, mostly from the burning of coal, oil, and gas, has heated up the earth by about 1.3°C. According to the World Meteorological Organization, Europe has warmed twice as much as the global average in the last 30 years. Heatwaves are also more common due to climate change. The Intergovernmental Panel on Climate Change, the United Nations panel of climate scientists worldwide, has confirmed this. Rest of Summer The countries are preparing themselves for more intense fires. EFFIS forecasts warmer-than-average temperatures across Europe in August. This means that fire danger will continue to be high throughout much of Southern and Eastern Europe. EFFIS stated that while Southern Europe will likely see normal rain patterns in August, the rest of Europe could be dryer than usual. This could increase the risk of fires in other areas. The governments are trying to adapt. Greece has gathered a record number of 18,000 firefighters in anticipation for severe fires. The government said that they have adapted their firefighting techniques and patrols to try to detect fires sooner and limit damage. Forest management is another factor that increases fire risk. As people migrate to the cities, rural populations are shrinking in countries like Spain. This has left fewer workers to clear vegetation to prevent forest fires from accumulating fuel. The U.N. has called on governments to focus more on prevention than just responding to fires that have already broken out. It has also warned that climate changes are expected to increase global extreme fires by as much as 14% by the year 2020. The U.N. stated that fire prevention includes setting controlled flames before the summer season to remove fuels on which blazes feed, as well as restoring peatland and wetlands ecosystems.
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Gold prices rise as tensions in the trade wars boost demand for safe-haven assets; US CPI data is in focus
Tuesday, gold prices rose as investors looked forward to a key U.S. Inflation reading. Investors were also concerned about the global trade conflict. By 0816 GMT, spot gold was up 0.5% to $3,361.39 an ounce. U.S. Gold Futures rose 0.3% to $3370.40. The U.S. Dollar was down by 0.1%, which made gold more affordable for buyers of other currencies. Han Tan, the chief market analyst of Nemo.Money, said: "Gold is moving higher as bulls take advantage today's dollar which is slightly lighter." Gold is supported by many factors including the expectation of Fed rate cuts and U.S. president Donald Trump's threats to impose tariffs, as well persistent geopolitical, economic, and political risks. The European Union accused the U.S. on Monday of resisting attempts to strike a deal on trade and warned that countermeasures would be taken if an agreement was not reached in order to avoid the punishing duties Trump had threatened to impose beginning August 1. Trump escalated his war of trade on Saturday by announcing that he would impose a 30% tax on the majority of EU and Mexican imports. He had previously issued similar warnings to trading partners. The U.S. Consumer Price Index (CPI) Report, which is due at 1230 GMT today, may give investors additional guidance about the Federal Reserve's future policy. The Fed is hesitant to resume rate cuts because the U.S. consumer price index likely increased in June. This could be the beginning of the long-anticipated increase in inflation caused by tariffs. The markets currently expect 48 basis point rate cuts to be implemented by the end this year. This will begin in October. Silver spot gained 0.5%, to $38.31 an ounce. It had reached its highest level since Sept. 2011 on Monday. Nitesh Sha, a commodities strategist at WisdomTree, said that if the current ratio of gold to silver prices is maintained and gold prices are above $3,440/oz we will see silver over $40/oz. Palladium dropped 0.3% to 1,189.69, and platinum rose 0.2%. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Harikrishnan Nair)
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Trade talks and US data have helped most Gulf markets to gain an advantage over the US.
The major Gulf stock markets rose early on Tuesday, ahead of U.S. data on inflation due later that day. This indicates investors' positive outlook for talks between Washington and major trading partner countries. After threatening to impose 30% tariffs on imports from Mexico and the European Union from August 1, U.S. president Donald Trump indicated he would be open to discussion on tariffs. The Yomiuri reported that the Japanese Prime Minister Shigeru Shiba is planning to meet with U.S. Treasury Sec. Scott Bessent this Friday. Investors will also be watching for U.S. consumer prices for June due Tuesday. They are looking for any upward pressure in the price of goods from tariffs, which could influence U.S. Federal Reserve rate decisions. As most regional currencies are pegged with the U.S. Dollar, the Fed's actions will have an impact on the monetary policy of the Gulf region. Dubai's main stock index rose 0.7%. This was led by the 2.7% increase of top lender Emirates NBD, and a 1.4% rise in blue-chip developer Emaar Properties. Abu Dhabi Commercial Bank jumped 6%, a 0.7% increase, while the Abu Dhabi index rose by 0.7%. According to LSEG, the lender, which is third largest in terms of asset volume within the Gulf, reported a net profit for the second quarter of 2,32 billion dirhams ($631.65 millions), exceeding both analysts' expectations and their consensus estimates. The Qatari index rose 0.1% thanks to a 0.4% increase in the petrochemical manufacturer Industries Qatar. Doha Bank, however, fell by 0.7% despite reporting a rise in its first-half profits. Saudi Arabia's benchmark stock index fell 0.3% due to a drop of 0.6% in the oil giant Saudi Aramco. Oil prices, a major factor in the Gulf's financial market, fell after Trump set a 50-day deadline to Russia for it to end its war with Ukraine and avoid sanctions. This eased supply concerns. ($1 = 3.6729 UAE Dirham) (Reporting and editing by Joe Bavier in Bengaluru)
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US planes and cars, as well as drinks, are on the EU's list of potential tariffs
The European Commission is proposing to impose tariffs if trade talks with Washington fail to produce an agreement. This is the second package put forward by European Commission which oversees the trade policy of the 27 nation European Union. The package is intended to counter U.S. car and auto parts tariffs and a 10% baseline tariff. The U.S. president Donald Trump is now threatening to impose a 30% baseline tariff on EU imports starting August 1. European officials claim that this level is unacceptable, and it would stop normal trade between the two largest markets in the world. The list was sent to EU members and seen on Tuesday. It covers U.S. imports of goods worth $84.1 billion. The list also includes agricultural and food products, including a variety of fruits and vegetables as well as wine, beer, and spirits, worth a combined total of 6.35bn euros. The first package of 21 billion Euros worth of U.S. goods approved in April was immediately suspended for the purpose to negotiate. This suspension has now been extended until August 6. EU officials stated on Monday they are still trying to reach a deal in order to avoid Trump’s tariffs. However, EU Trade Chief Maros SEFCIOC said that member states have agreed to countermeasures should talks with the U.S. fall through. In May, the Commission first presented the second package for public consultation. The proposal at the time concerned 95 billion euros worth of goods from the United States. The proposal has been reduced, but the majority of its main elements have not changed. The EU has not set a date to approve this package. Reporting by Philip Blenkinsop, Editing by Joe Bavier.
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Positive economic data and improved Australia-Ties help Iron Ore recover from its early losses
The price of iron ore futures rebounded Tuesday after a series of positive economic reports and the strengthening of ties between Australia, the world's largest producer and China, its top consumer, outweighed the persistent weakness in China’s property market. The September contract for iron ore on China's Dalian Commodity Exchange traded 0.13% higher, at 767 Yuan ($106.91). As of 0726 GMT, the benchmark August iron ore traded on Singapore Exchange was down by 0.84% to $98.75 per ton. China's Q2 Gross Domestic Product (GDP) grew by 5.2% compared with the same period last year. Meanwhile, June industrial production grew 6.8%, exceeding analyst expectations despite U.S. Tariffs. In a Tuesday meeting, Chinese President Xi Jinping vowed to expand the free trade and deepen cooperation between his country and Australia's Prime Minister Anthony Albanese. Albanese travelled to China with executives of mining giants Rio Tinto BHP, and Fortescue who met Chinese officials in the steel industry on Monday. In a recent note, analysts at ANZ stated that "strong steel production, healthy margins and low inventories of steel appear to have encouraged mills to restock their raw materials." ANZ said that the gains are limited, however, by the concern that authorities will continue reducing steel capacity. Market sentiment remained tempered despite the positive data on growth. In June, China's new-home prices experienced their biggest monthly drop in eight months. This reflects the continued weakness in the real estate sector. China's crude output of steel in June was down 3.9% on the previous month and 9.2% on an annual basis as steelmakers maintained equipment. In addition to the high temperatures in northern Europe and the heavy rains in eastern and southern Europe, outdoor construction was limited, which reduced the demand for steel. Coking coal and coke, which are used to make steel, also fell on the DCE. They were down by 0.38% and 0.85%, respectively. The Shanghai Futures Exchange saw a general decline in steel benchmarks. The rebar fell by 0.54%. Hot-rolled coils dropped 0.31%. Wire rods declined 2.13%. Stainless steels gained 0.08%. ($1 = 7.1745 Chinese yuan). (Reporting and editing by Rashmi Liew)
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Stocks rise ahead of important US earnings and data as trade talks loom
On Tuesday, shares rose worldwide and the dollar gained as investors entered a week that will be crucial for US earnings data, inflation figures and trade negotiations in a fairly optimistic mood. Oil prices fell after U.S. president Donald Trump set a deadline of 50 days for Russia to stop the war in Ukraine or face energy sanctions. Trump indicated he would be open to discussing tariffs following his threat at the weekend to impose 30% duty on Europe and Mexico starting August 1. Japan is trying to set up high-level discussions with the U.S. on Friday. The market has reacted well to the uncertainty surrounding tariffs, which makes this week's earnings in the United States all the more significant for clues. The MSCI broadest Asia-Pacific index outside Japan rose by 0.8%. Europe's STOXX benchmark increased by 0.2%. Nasdaq Futures also gained after Nvidia announced it would resume its sales of H20 chips in China. The EU warned that if a deal is not reached, it will take countermeasures. Trump said that he would be open to discussions with the EU and trading partners. The Yomiuri reported that Japan's Shigeru Shiba will meet U.S. Treasury Sec. Scott Bessent on Friday in Tokyo, before the August 1 deadline for 25% tariffs to go into effect. Ishiba will also have to deal with an election on Sunday. Polls show that his ruling coalition could lose its majority in the upper chamber to political opponents advocating expansive spending. The yield on the benchmark 10-year bond, which is the highest since October 2008, jumped to 1,595%. The data showed that China's economy shrank less than expected during the second quarter, despite U.S. Tariffs. Nvidia's CEO Jensen Huang will visit the country this Wednesday. His company is now planning to resume the sale of its H20 artificial-intelligence chips on the market. U.S. EARNINGS IN CENTER The U.S. earnings period will begin Tuesday with the release of major bank's second-quarter results. According to LSEG, S&P profits will rise 5.8% over the past year. The outlook for the S&P 500 has changed dramatically since Trump's trade war began in early April, when he predicted a 10.2% increase. Analysts said that Trump's repeated verbal attacks against Federal Reserve Chair Jerome Powell over the past few weeks reminded markets of the chaos his sometimes abrupt decisions can cause. Investors will also be watching for the U.S. consumer prices data for June due Tuesday and any price increases that may result from tariffs. After reaching a three-week peak, the dollar was barely changed at 147.62yen. After four days of declines, the euro rose 0.1% to $1.1680. U.S. crude fell 0.6% to $66.56 per barrel. Trump announced on Monday new weapons shipments to Ukraine and threatened sanctions against buyers of Russian exports until Moscow agreed to a peaceful deal within 50 days. Spot silver rose 0.3% to 38.25 dollars per ounce after reaching its highest level since September 2011.
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Saudi Arabia's annual inflation rate accelerated to 2.3% in July
The government reported on Tuesday that the inflation rate in Saudi Arabia increased to 2.3% from 2.2% last month. Since the start of this year, inflation has been mainly driven up by increases in housing rents. In June of last year, it was 1.5%. The General Authority for Statistics reported that the increase in rents for housing was due to a 7.1% rise in villa prices. The housing sector was responsible for the majority of the price increases in the category combined housing, water and electricity, gas, and other fuels. Last month, the Saudi government announced measures to balance Riyadh’s real estate market. This included setting aside some plots with price caps for Saudi citizens. Saudi Arabia recently approved a Real Estate Ownership and Investment Law that will make it easier for foreigners to purchase property when the law comes into effect next year. Saudi Arabia has begun building several new massive developments around Riyadh, as part of the Vision 2030 program to diversify the economy and move away from oil. It also aims to boost both the tourism industry and private sector. The city's real-estate projects must be completed in a timely manner to ensure that the new law will balance supply and demand. The International Monetary Fund (IMF) expects Saudi Arabia's inflation to stay at around 2%. This is supported by the Saudi riyal peg to U.S. dollars, domestic subsidies, and "an elastic supply" of expatriate workers.
Oil drops as Trump's deadline of 50 days for Russia eases supply concerns
Oil prices dropped on Tuesday as U.S. president Donald Trump's 50-day deadline to Russia for ending the Ukraine war in order to avoid sanctions reduced immediate supply concerns.
Brent crude futures dropped 29 cents or 0.4% to $68.92 per barrel at 0342 GMT. U.S. West Texas Intermediate Crude futures declined 35 cents or 0.5% to $66.63. Both contracts closed more than $1 lower the previous session.
"Trump’s more lenient stance on Russian oil sanctions eased fears of a shortage while his tariff plan continues mounting economic pressures," said Priyanka Sackdeva, Senior Market Analyst at Phillip Nova.
The news of possible sanctions caused oil prices to rise, but they later lost these gains, as the deadline of 50 days raised the hope that sanctions could be avoided. Traders also speculated whether the U.S. actually would impose high tariffs on countries who continue to trade with Russia.
Analysts at ING wrote in a Tuesday note that if Trump follows through with the sanctions and they are implemented, it "would drastically change the outlook of the oil market".
China, India and Turkey are among the top three buyers of Russian crude. The ING note stated that they would have to compare the costs of exporting to the US against the benefits of purchasing discounted Russian crude oil.
Trump announced on Monday new weapons for Ukraine, and said on Saturday that he would impose 30% tariffs on most imports coming from the European Union or Mexico starting August 1. He had also issued similar warnings to other countries.
Tariffs could slow down the global economy, which would reduce fuel demand and lower oil prices.
According to Russian media, the secretary general of the Organization of Petroleum Exporting Countries said that oil demand will remain "very strong" throughout the third quarter. This will keep the market in a tight balance for the near future.
Goldman Sachs raised its oil prices outlook for the second-half of 2025. The company cited potential supply disruptions and shrinking oil stocks in Organisation for Economic Co-operation and Development (OECD) countries as well as production constraints in Russia. (Reporting from Anjana Anil and Sudarshan Varadhan in Singapore, with editing by Jamie Freed.)
(source: Reuters)