Latest News
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China's CNOOC begins producing heavy crude oil at Bohai Kenli Oilfield
CNOOC Ltd., a Chinese company, announced on Tuesday that it had begun production in the Kenli 10-2 offshore oilfield of the Bohai Sea. The Kenli 10-2 field is estimated to hold 100 million metric tonnes or 730 million barrels geological reserves. The oil company said that the project was the largest shallow lithologic offshore oilfield and expected peak production to reach 19,400 barrels equivalents per day by 2026. CNOOC is the operator and holds a 100% stake. The project, which has an average depth of water of 20 meters, includes a central platform and two wellhead platforms. Plans are to drill 79 wells for development. The field produces heavy crude. CNOOC plans to increase total production at Bohai to 40 million tons of oil per year. The company said that it is the most complex production platform in the Bohai area and the first large thermal recovery platform in the southern Bohai Sea. According to the company, in 2024 the Bohai oilfield will produce more than 36,000,000 tons of crude oil, or 720,000 barrels of oil per day. This is nearly one-sixth the total output of China and contributes more than half the annual growth of production.
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Japan launches antidumping probe against stainless steel sheets imported from China and Taiwan
The Japanese trade and finance ministry announced on Tuesday that it has opened an investigation into the anti-dumping of nickel-based stainless steel cold-rolled sheets and strips imported to Japan from China and Taiwan. This move comes after a petition was filed by Nippon Steel, and other domestic producers, on May 12. They claim that they were forced to lower their prices because of a weakening demand in the domestic market, with buyers shifting to cheaper imports. The Ministry of Economy, Trade and Industry and Ministry of Finance intend to finish the investigation in a year and then decide if anti-dumping duty will be imposed. According to the request submitted by the steelmakers imported products are sold in Japan for prices that are 20% to 50% less than in China, and 3%-20% lower than in Taiwan. The Japanese steelmakers say that they are unable to set price that reflects rising costs. This has led to a decrease in operating profit and other damages. The exports and excess production of Chinese steelmakers has become a global concern. Japan is one of many countries who have criticised Chinese firms for receiving subsidies from the government to produce surplus steel, and then exporting at low prices. This has worsened global market conditions. Japan is the only country that has not taken anti-dumping or similar measures against China. Tadashi Ima, president of Nippon Steel and chairman of the Japan Iron and Steel Federation, has warned repeatedly that the rise of protectionism in the world could make Japan vulnerable to cheap steel imports and hurt domestic production. The Chinese commerce ministry didn't immediately respond to an inquiry for comment. Taiwan's economic ministry also said that it wasn't able to make a comment immediately. (Reporting and editing by Joe Bavier, Jan Harvey and Jan Harvey; Additional reporting in Beijing by Amy Lv and Ben Blanchard; Reporting by Yuka obayashi in Taipei)
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Heatwave grips Greece and Balkans. Tourists, workers seek relief.
On Tuesday, tourists and workers sought shade as Greece suffered its third heatwave this summer. High temperatures also gripped the Balkans region and caused wildfires to spread in Albania. Greece, located at the southernmost point of Europe, is known for its hot, dry summers. Climate change has caused heatwaves to be longer and more intense, and also led to destructive floods and fires. The labour ministry announced that couriers, food delivery drivers and builders from the greater Athens area and other areas were ordered to stop work between midday and 5 pm, because the mercury could reach as high as 42 degrees Celsius. To avoid heat stress, workers with health problems were encouraged to work remotely. A soldier outside the central Athens parliament building used a towel on a presidential guard to wipe off the sweat. Athens is one of Europe's most densely-populated capitals. It sits on a plain flanked with mountains. Tourists sought out air conditioned stores and restaurants. ACROPOLIS SHUT Authorities have announced that, as is common when temperatures are high, the Acropolis will be closed from noon on Tuesday and on Wednesday for five hours. Greek Meteorological Service said that the heatwave would continue until Sunday. The heatwave also engulfed Bulgaria, a neighboring country on Tuesday. Authorities urged businesses to provide free water and reduce physical work during high-risk times. Major roads in Montenegro were congested with people rushing to the beach to escape the heat. Four aircraft from Italy, Greece and Albania helped firefighters in Albania battle two wildfires near the village of Dukat and a national park located in the north. Last month, large areas of Western Europe were sweltered by another severe heatwave. This caused many deaths and triggered forest blazes and health warnings throughout the region. Globally, 2024 was the hottest year ever recorded, with temperatures rising 1.5 degrees Celsius above pre-industrial levels for the first. A study published last week revealed that temperatures around Athens have risen by up to 10 degrees Celsius in some areas since July 2024, after fires destroyed the vegetation. Reporting by Stamos PROUSALIS, Angeliki KOUNTANTOU and Fatos BYTYCI; Writing by Angeliki KOUNTANTOU; Editing Aidan Lewis
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Copper prices rise, while others fall due to uncertainty
The price of copper rose on Tuesday as investors hoped for a stronger Chinese demand. However, they were concerned about the impact tariffs would have on economic growth and inflation. As of 0912 GMT the three-month contract for copper on the London Metal Exchange had increased by 0.2%, to $9,884 per metric ton. It was at its highest level in almost two weeks during the previous session. The launch of the massive Tibet hydropower station and the Chinese government's plans to stabilize industrial growth are positive signals for the metals markets, according to a Beijing based futures analyst. The price of other LME base metals fell amid worries about the negotiations ahead of a deadline on August 1 for countries to sign trade agreements with the U.S., or face high tariffs. There are many reasons to be cautious in the coming month. "We might see a drop in the price of base metals," Dan Smith, managing Director at Commodity Market Analytics. "I think that the next few months could be very interesting, with all the pressure on the Federal Reserve for them to reduce rates. But in fact inflationary pressure may be building up in the U.S." Smith said that the period from now until September will also be a weak season for demand. The most active contract on the Shanghai Futures Exchange rose 0.75%, to 20,900 Yuan ($2,913.26) per ton. A metals analyst from a Shanghai futures company stated that "Aluminium Fundamentals are the strongest among metals in China." LME aluminium fell 0.3% at $2,639.50 per ton. Zinc slid 0.2% to 2,832, while lead dropped 0.3% to $2,000, nickel dropped 0.1% to $16,505, and tin remained unchanged at $33,800. Click here to see the latest news in metals.
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Canada's Couche-Tard resumes its share buyback program after cancelling the Seven & I bid (July 21, 2018)
Alimentation Couche-Tard, a Canadian company, announced on Monday that it would resume its share repurchase programme. This comes just days after Circle K's parent company scrapped its $46 billion attempt to purchase Japan's Seven & I. The company announced that it would buy up to 77.1 millions shares, worth approximately $4.2 billion. This is part of its efforts to boost shareholder value following the failure of the long-term effort to purchase the Japan-based convenience-store chain. Couche-Tard with a market cap of $53 billion announced last week it would not pursue its bid to acquire Seven & I because the Japanese retailer refused constructive engagement on the deal. It would have been the largest foreign acquisition in Japan history if it had succeeded. Couch-Tard closed its stock up 8.3% when it canceled the deal with Seven & I on July 17. Stock is down 5% this year. Couche-Tard announced that the authorized share purchase program will start on July 23 and run through July 22 2026.
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Japan launches antidumping probe against stainless steel sheets imported from China and Taiwan
The Japanese trade and finance ministry announced on Tuesday that it has opened an investigation into the anti-dumping of nickel-based stainless steel cold-rolled sheets and strips imported to Japan from China and Taiwan. This move comes after a petition was filed by Nippon Steel, and other domestic producers, on May 12. They claim that they were forced to lower their prices because of a weakening demand in the domestic market, with buyers shifting to cheaper imports. The Ministry of Economy, Trade and Industry and Ministry of Finance intend to finish the investigation in a year and then decide if anti-dumping duty will be imposed. According to the request submitted by the steelmakers imported products are sold in Japan for prices that are 20% to 50% less than in China, and 3%-20% lower than in Taiwan. The Japanese steelmakers say that they are unable to set price that reflects rising costs. This has led to a decrease in operating profit and other damages. The exports and excess production of Chinese steelmakers has become a global concern. Japan is one of many countries who have criticised Chinese firms for receiving subsidies from the government to produce surplus steel, and then exporting at low prices. This has worsened global market conditions. Japan is the only country that has not taken anti-dumping or similar measures against China. Tadashi Imai, chairman of the Japan Iron and Steel Federation and president of Nippon Steel, has warned repeatedly that a global increase in protectionism could make Japan vulnerable to cheap steel imports and hurt domestic production. (Reporting and editing by Joe Bavier; Yuka Obayashi)
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Gold falls from its five-week high after investors book profits
The price of gold eased Tuesday, as investors took profits after the prices reached a five-week peak. Meanwhile, market participants focused on trade negotiations ahead of U.S. president Donald Trump's deadline on August 1. By 0808 GMT, spot gold had fallen 0.3% to $3386.25 an ounce. Bullion had reached its highest level since June 17 earlier in the session. U.S. Gold Futures fell 0.2% to $3,398.40. Jigar Trivedi is a senior commodity analysts at Reliance Securities. He said that gold prices fell amid profit-booking, but they remained near the five-week-high due to the lingering uncertainty before the August 1 deadline for tariffs. Gold is expected to remain bullish. Near $3,420 is a strong resistance. He said that $3,350 was a strong support. The U.S. Dollar index increased by 0.1% against its competitors. Gold priced in greenbacks becomes more expensive to other currency holders when the dollar is stronger. Diplomats from the European Union said that the bloc was exploring wider counter-measures to the United States, as the prospects of a trade deal with Washington are fading. Trump has threatened to impose 30% tariffs on European imports, if a deal is not reached by the deadline of August 1. U.S. Treasury secretary Scott Bessent stated that the administration prioritizes the quality of trade agreements over the timing. The U.S. Federal Reserve monetary policy meeting, scheduled for next Monday, is another important event. It is expected that the central bank will hold interest rates at current levels and begin reducing them in October. Gold is more likely to do well when interest rates are low and there's geopolitical or economic uncertainty. Spot silver dropped 0.3% per ounce to $38.81, platinum remained steady at $1.437.65, and palladium fell 0.2% to $ 1,261.91. Nornickel in Russia, the world's largest palladium producer, has lowered its forecast for palladium production. It now expects between 2.677-2.729 million ounces, down from the previous estimate of 2.704-2.756,000 million ounces. (Reporting and editing by Subhranshu S. Sahu in Bengaluru.)
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Iron ore increases for the fifth session of Beijing hydropower stimulus
The iron ore futures closed higher on Tuesday for the fifth consecutive session, boosted by expectations of additional stimulus following Beijing's announcement of a $170 billion project to boost the economy. The contract for September iron ore on China's Dalian Commodity Exchange was up 2.49% at 823 Yuan ($114.72). As of 0745 GMT, the benchmark August iron ore traded on Singapore Exchange was $1.61 higher per ton at $105.15. "Iron Ore Futures extended recent gains amid the prospect of additional stimulus measures. Beijing's announcement about the $170 billion project to build hydropower promises to deliver a positive boost for steel," ANZ analyst said in a report. ANZ stated that the move had also sparked an optimism among investors, who believe the government will return to its traditional fiscal stimulus strategy to boost economic growth. This positive feeling is further supported by the ongoing efforts to reduce excessive competitiveness and overcapacity within the steel industry. Mysteel, a consultancy, stated that the Chinese government's efforts to limit "involution-styled" competition between industrial enterprises has reinforced market optimism. The competition in China is characterized by an overcapacity of manufacturers and price reductions to get rid of excess stock. In the meantime, Chinese steelmakers bypass tariffs by exporting semifinished steel billets. These are not subject to trade restrictions in many countries as finished steel products. This strategy is a major factor in the rapid increase of exports by the world's biggest steel producer. Coking coal and coke, both of which are used in steelmaking, have also seen a spike. The price of coking coal futures has reached its highest level since the 19th March, as rumours about a possible government inspection into overproduction have sparked fears that supply could be disrupted. All steel benchmarks at the Shanghai Futures Exchange increased. Rebar jumped 3.12%, hot-rolled coil soared 2.84%. Wire rod soared 4%. Stainless steel rose 0.47%. ($1 = 7,1740 Chinese yuan). (Reporting and editing by Janane Venkatraman, Mrigank Dhaniwala.)
Vaar Energi, Norway's largest energy company, is looking to cut spending as its Q2 operating profits lag.
Norwegian oil company Vaar Energi reported a lower than expected operating profit for the 2nd quarter on Tuesday. It said that it intends to cut costs, while maintaining dividend payments totaling $1.2 billion in this year and next.
The company's earnings before tax and interest (EBIT) rose from $992 to $1.2 billion in April-June, but still fell short of the $1.34 billion average forecast by nine analysts surveyed.
Vaar, majority-owned by Italy's Eni in a press release, said that it planned to cut spending by $500,000,000 "for the period of 2025-2026", to improve its competitiveness and resilience in an unstable market.
Vaar CEO Nick Walker stated that "with current production exceeding 350,000 barrels equivalent per day (boepd),we expect to reach approximately 430,000 boepd by the fourth quarter. This will help us achieve our plans for transformational growth in 2025."
He added that the company is on track to maintain production between 350,000 and 400,000 boepd by 2030, with a portfolio of 30 new projects. Of these, more than 10 will be sanctioned in this year. (Reporting and editing by Terje Solsvik, Nerijus Adomiaitis)
(source: Reuters)