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ASIA GOLD - Price rise dampens activity in major Asian hubs
This week, physical gold demand in major Asian hubs declined as rising prices dampened interest in buying while higher rates encouraged others to sell their holdings. Gold isn't a popular purchase at the current prices. Some investors are selling the gold bars and coins they bought when prices were cheaper, said Ashok Jain of Mumbai's Chenaji Narsinghji. On Friday, gold prices in India were around 102.100 rupees (1,165.45 dollars) per 10 grams after reaching a record-high of 102.191 rupees. Indian dealers have this week offered a discount The discount last week was up to $7. A Mumbai-based dealer of bullion with a private banking firm said that jewellers are reluctant to purchase gold because the demand for their largest market, which is the United States, will likely fall due to tariffs implemented by President Donald Trump. Bullion was traded in the world's largest consumer, China, at a premium of $2 per ounce to the global benchmark spot rate . Dealers quoted gold last week between a discount and premium of up to $12 per ounce. Last week we saw some interest in buying gold, but prices are on the rise this week so there is less interest. Peter Fung is the head of trading at Wing Fung Precious Metals. He said that people are buying gold when prices dip. In Hong Kong, gold In Singapore, the price was $1.60 higher than par. Gold traded at par prices with a premium of $2.50. We see more retail and wholesale sales as gold prices rise. We are seeing more people borrowing gold now that prices have risen, said Brian Lan of GoldSilver Central in Singapore. In Japan, bullion A Tokyo-based trader said that the product was sold at $0.25 more than spot prices. $1 = 87.6060 Indian Rupees (Reporting from Brijesh Patel in Bengaluru, and Rajendra Jhadhav in Mumbai. Additional reporting by Anushree Mukerjee. Editing by Subhranshu S Ahu.
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Trump's tariffs on Russia’s oil buyers brings economic and political risks
Donald Trump, the U.S. president, has used tariffs to achieve a variety of foreign policy goals. Trump's favorite trade tool has been put to a new, if risky, use. He gave Russia a deadline of Friday to reach a peace agreement in Ukraine, or else its oil customers would face secondary tariffs. Wednesday, the administration took an important step in punishing Moscow's clients by imposing a 25% additional tariff on goods imported from India due to its imports Russian oil. This is the first financial sanction aimed at Russia during Trump's second tenure. A White House official confirmed on Wednesday that secondary measures Trump had threatened against countries purchasing petroleum would be expected on Friday. The latest of Trump's threats to impose tariffs on non-trade matters include attempting to stop the fentanyl delivery from Mexico and Canada and penalizing Brazil for what he called a "witchhunt" against the former president Jair Bolsonaro. Secondary tariffs may hurt the Russian economy by cutting off a major source of funding to President Vladimir Putin's war efforts, but they are also costly for Trump. The oil price will rise and cause him political difficulties before the midterm elections in the U.S. next year. Tariffs could also hinder the administration's attempts to reach trade agreements with China and India. Putin, for his part has indicated that Russia is ready to weather any economic hardships imposed by the U.S. According to Eugene Rumer a former U.S. Intelligence Analyst for Russia, who is now the Director of Carnegie Endowment for International Peace’s Russia and Eurasia Program, there are "nearly zero chances" that Putin will agree to an agreement to ceasefire because Trump has threatened tariffs and sanctions against Russia. Theoretically, if you stopped Indian and Chinese oil purchases that would be a heavy blow to Russian economy and war effort. "But that's not going to happen," said he, adding that China has signaled that they will continue buying Russia's crude oil. The White House didn't immediately respond to an inquiry for comment. The Russian Embassy in Washington has not responded immediately. NEW COSTS FOR RUSSIA Russia would be hurt by secondary tariffs, as it is the second largest oil exporter in the world. Since late 2022, the West has imposed a price limit on Russia's oil exports to reduce its ability to finance wars. This cap has increased costs for Russia, as it forced the country to redirect oil exports to India and China. These countries were able to buy huge quantities of oil at reduced prices. The cap kept oil flowing on global markets. The White House has said that Putin and Trump may meet as early as next week. This follows a Wednesday meeting between U.S. ambassador Steve Witkoff with the Russian leader. Some analysts doubt that Moscow will stop the war. Brett Bruen is the former adviser on foreign policy for Barack Obama, now director of Global Situation Room. He warned that Putin had found ways to evade economic sanctions and sanctions. Even if sanctions and tariffs reduce Russia's revenue, Putin does not feel much pressure at home. Bruen stated that secondary tariffs could cause economic pain. "But it is still unclear whether this will actually change Putin's behavior." Tariffs could create problems for Trump's administration, as it seeks to pursue sweeping trade agreements with India and China. Kimberly Donovan is a former U.S. Treasury Official who said that the tariffs may hamper U.S. trade and bilateral relations with India and China. Donovan is now the director of the Economic Statecraft Initiative at the Atlantic Council’s GeoEconomics Center. China has shown its leverage by cutting off the U.S.'s mineral exports. New tariffs could upset the delicate balance that was negotiated in May to restart these vital flows for a number of U.S. Industries. India has leverage on generic pharmaceuticals and precursor chemicals exported to the U.S. Both countries claim that the purchase of oil is a matter for their sovereigns and that they adhere to the old rules. This includes the price cap placed on Russian crude. RUSSIAN ROULETTE Secondary tariffs will increase the price of imported products into the United States from Russia's clients, which could encourage them to purchase their oil somewhere else. By squeezing the shipments, Trump could face political problems due to a spike in fuel prices and inflation worldwide. Fears of disruptions by Russia in the month following Moscow's invasion of February 2022 pushed crude oil prices near $130 per barrel. This was not far off their previous high of $147. Analysts said that if India stopped buying 1.7 millions barrels of Russian crude per day, which is about 2% global supply, the world price would rise from $66, as it currently does. Analysts at JP Morgan said that it would be "impossible", this month, to sanction Russian crude oil without causing a price spike. Brent oil could reach $80 or more if there is a perceived disruption in Russian oil shipments. They said that despite Trump's claims that U.S. producers will step in, the country would not be able to ramp up quickly. Russia could respond by closing the CPC Pipeline, which would create a global shortage. Western oil companies Exxon, Chevron, Shell, ENI, and TotalEnergies can ship up to one million barrels a day through CPC. The CPC has a total capacity of approximately 1.7 million bpd. Cullen Hendrix is a senior fellow at Peterson Institute for International Economics. He said that energy shocks were never welcomed, particularly in the context of a weakening job market and a softening house price. The key question is if Trump can make any economic pain seem necessary in order to get Russia to negotiate. Hendrix said, "Of his tariff gambits this one could resonate the best with voters in principle, at least," It's also a move with massive downside risk." Timothy Gardner, Don Durfee, Diane Craft, Don Durfee, Matt Spetalnick and Patricia Zengerle reported from Washington, and Seher Dareen and Patricia Zengerle were in London.
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India's IOC and BPCL have said they will buy 22 million barrels non-Russian oil for delivery in September-October
Trade sources reported that Indian Oil Corp. and Bharat Petrol Corp., two of the largest state refineries in India, had bought at least 22,000,000 barrels non-Russian oil for delivery between September and October. This was after U.S. pressed India to stop buying from Russia. After the Russian invasion of Ukraine, Indian state refiners began to purchase cheaper Russian crude. After pressure from U.S. president Donald Trump, they halted their Russian purchases at the end of July. Sources said that in its latest tender IOC purchased 2 million barrels on a delivered-basis of U.S. Mars Crude, 2,000,000 barrels Brazilian grades, and 1,000,000 barrels Libyan crude. BP sold high-sulfur Mars crude cargo for $1.5-$2 a bar above Dubai prices in September, they said. Sources said that Petraco, a European trader, sold 1 million barrels each of Libyan Sarir Mesla and Brazilian Sepia crudes and Totsa (the trading arm of TotalEnergies) sold 2 million barrels each of Brazilian Sepia Sururu crudes. Prices for these cargoes are not yet available. These deals come after IOC purchased 8 million barrels from Middle East, United States of America, Canada, and Nigeria through tenders last week. A source familiar with these purchases revealed that India's second largest state refiner BPCL purchased 9 million barrels through negotiations in September for arrival. He said that the oil included 1,000,000 barrels from Angola Girassol and 1,000,000 barrels from U.S. Mars. 3,000,000 barrels came from Abu Dhabi Murban, while 2,000,000 barrels were Nigerian. Companies usually do not comment about crude deals, citing confidentiality. Sources said that the arbitrage economics for Asian refiners have improved, allowing them to support these purchases. Reporting by Nidhi verma from New Delhi, and Florence Tan from Singapore; editing by Jacqueline Wong & Edwina Gibbs
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Iron ore to gain weekly as China's steel imports reach record high
Iron ore futures dipped on Friday, but are still on track to gain a week-long gain. This is due to China's record steel exports, strong mill margins and low inventories. As of 0318 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.57% lower. It was 787 yuan (109.58 dollars) per metric ton. The contract has risen by 0.57% this week. The benchmark iron ore for September on the Singapore Exchange is down 0.49% at $101.75 per ton but has gained 1.9% this week. After reporting lower half-year profits, major miners have paid out the lowest dividends they've ever paid in order to keep cash on hand for their major projects. BHP plans to invest up to $7.4billion in its Jansen Potash Mine in Canada. Rio Tinto will spend over $13billion in the next 3 years in order to develop new Iron Ore mines in Western Australia, as reserves are declining. China's exports of steel continued to rise in July. They increased by 1.7% on a month-to-month basis, and the total for the entire year is at its highest level since 1990. The move comes despite countries introducing more trade barriers because they are worried that cheap Chinese Steel is undercutting domestic manufacturers. Analysts from ANZ said that iron ore imports in July increased by 2% on an annual basis, which is well above the average monthly imports of the year. This was due to healthy mill margins, and low inventories, motivating mills to restock. S&P Global, a global ratings agency, has maintained China's credit rating at A+. It noted that the country's fiscal stimulus measures will support its economic growth even though it faces challenges in the property sector and from tariff pressures. Coking coal and coke, which are used to make steel, also fell on the DCE. They were down by 0.82% each and 1% respectively. The benchmarks for steel on the Shanghai Futures Exchange have mostly fallen. The price of rebar fell by 0.8%, the price of hot-rolled coil dropped by 0.87% and that for wire rod was down 0.64%. Stainless steel rose 0.08%. ($1 = 7,1820 Chinese yuan). (Reporting and editing by Rashmi Liew)
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Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal
Offshore drilling contractor Shelf Drilling has secured short-term contract for the Shelf Drilling Enterprise and a contract extension for the Trident 16 jack-up drilling rigs.The Shelf Drilling Enterprise has been hired for one firm well operation in Vietnam, with an estimated duration of three months.Shelf Drilling Enterprise, built in 2007 and upgraded in 2022, features Baker Marine Pacific Class 375 design. The jack-up drilling rig is capable of operating in maximum water depth of 375 feet.The rig recently completed its previous campaign in Thailand in late July, and operations in Vietnam are expected to begin in early October 2025 shortly after mobilization.The Trident 16 has been awarded a three-month extension in direct continuation of its current contract with Petrobel Egypt for operations in the Gulf of Suez offshore Egypt, with the rig now firm until November 2025.Trident 16 is a 1982-built jack-up drilling unit featuring Modec 300 C-38 design, that was last upgraded in 20212. The drilling rig is capable of operating at maximum water depth of 300 feet.The estimated combined value of these two awards is approximately $14 million. “These awards contribute to our backlog and near-term revenue visibility and reflect the continued demand for our versatile fleet across core markets. We remain committed to delivering safe, reliable and best-in-class operations for our customers,” said Greg O’Brien, CEO of Shelf Drilling.Earlier in August, Saudi Arabian oil and gas drilling contractor ADES International Holding agreed to buy Shelf Drilling for $379.8 million.The transaction is expected to close in the fourth quarter of 2025.The combined group will boast a fleet of 83 offshore jack-ups, including 46 premium units across the world’s most attractive basins, with a total combined backlog of $9.45 billion as of 30 June 2025.Saudi Rig Owner ADES to Buy Shelf Drilling in $380M Deal
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SBM Offshore Ups 2025 Revenue Forecast After Strong Half-Year Results
Dutch oil and gas services company SBM Offshore raised its full-year core profit and revenue forecasts on Thursday, following a strong financial performance in the first half of 2025.The company, which provides floating production services to the offshore energy industry, sees directional earnings before interest, taxes, depreciation and amortization (EBITDA) of around $1.6 billion this year, $50 million higher than it had originally guided.It also sees directional revenue of more than $5 billion, after saying it would exceed $4.9 billion in February. Analysts on average had projected revenue of $4.96 billion for the year, according to a company-compiled consensus.Strong execution and the commissioning of two major floating production, storage and offloading vessels (FPSOs) in Brazil contributed to the improved first-half results and the outlook hike, CEO Øivind Tangen said in a press release.The Amsterdam-listed company reported half-year directional EBITDA of $682 million, up 10% from the same period a year ago, beating analysts' consensus of $673 million."The deepwater market outlook remains robust, driven by the demand for cost-efficient and low-emission oil production," Tangen said.SBM Offshore operates in the deepwater segment, where production costs per barrel are typically lower than in other offshore regions. This positioning helps shield the company from oil price volatility, making its business model more resilient amid market fluctuations.The group's directional revenue rose 26% to $2.31 billion in the six-month period, beating analysts' consensus of $2.29 billion. It was supported by the turnkey segment, which builds and sells FPSOs, where revenues doubled in the first half.SBM Offshore uses directional reporting, which recognizes revenue from payments received during construction phases before lease contracts are activated.(Reuters - Reporting by Anna Peverieri in Gdansk, editing by Milla Nissi-Prussak)
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Gold futures record highs after US tariffs reported on gold bars
Gold futures reached a new record on Friday, following a report that the United States has imposed tariffs for imports of 1 kg gold bars. Spot gold also continued to rise on the back of tariff turmoil and hopes for interest rate cuts in the United States. Gold spot was down 0.3% to $3,386.30 an ounce as of 0305 GMT after reaching its highest level since July 23 earlier in session. Bullion has risen by 0.7% this week. U.S. Gold Futures for December Delivery were up by 0.9% to $3,484.10 after reaching a record high of $3.534.10. After the Financial Times reported Thursday that the United States had placed tariffs on the import of 1-kg bars of gold, citing an official letter from Customs and Border Protection, the price spread between New York Futures and Spot Prices widened to more than $100. The letter, dated 31 July, said that 1-kg and 100 ounce gold bars would be classified under a special code, which could lead to higher tariffs. This move could affect Switzerland, the largest gold refining center in the world. Brian Lan, Singapore's managing director of GoldSilver Central said that the tariffs on gold bar "will cause a disruption or more accurately some issues with regards to settlement by large banks". This was reflected this morning in the liquidity prices, which jumped everywhere. The U.S. President Donald Trump increased tariffs on imports of dozens countries on Thursday. This left major trading partners like Switzerland, Brazil, and India scrambling to find a better deal. Gold is used to store value in times of political or financial uncertainty. The FedWatch Tool of CME Group indicates that there is a 91% chance of a reduction in interest rates by 25 basis points next month. Other metals include spot silver, which fell 0.6% per ounce to $38.09, platinum, up 0.7% at $1,343.61 while palladium, down 0.8%, is $1,142.
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The US National Weather Service will restore hundreds of positions cut by Trump
Members of Congress stated on Tuesday that the Trump administration has allowed the U.S. National Weather Service (USNWS) to restore the majority of the hundreds of positions eliminated by the Department of Government Efficiency, which was once headed by Elon Musk. U.S. officials have announced that the National Oceanic and Atmospheric Administration (NOAA), parent agency of NWS, will hire 450 meteorologists, radar technicians and hydrologists to work for its weather service. In a statement released on Thursday, Representatives Mike Flood (a Nebraska Republican) and Eric Sorensen (an Illinois Democrat) said that they plan to hire 450 weather service meteorologists, hydrologists, and radar technicians. Two lawmakers have introduced legislation that would exempt employees of the weather service from DOGE's layoffs or early retirement, by reclassifying these positions as being critical to public security. Musk was initially named by Donald Trump as the leader of the DOGE program. However, the billionaire entrepreneur left the administration a few months later. Flood and Sorensen welcomed the turnaround in hiring but will continue to push for the passage of their bill so that the newly hired employees remain permanent and are protected from future reductions. Sorensen stated that "Hundreds of vacant positions have forced NWS offices throughout the country to cancel weather ballon launches, skip overnight staffing, and force remaining Meteorologists to overwork," Mark Alford, a Republican from Missouri, was also one of the lawmakers who praised the "move" by the administration to hire 450 mission-critical frontline staff at the NWS. CNN, who broke the news ahead of statements from legislators on Capitol Hill reported that the new figure included 126 previously approved positions by NOAA, an agency within the U.S. Commerce Department. No immediate comment could be obtained from the NWS or NOAA. CNN reported that layoffs and "buyouts" of early retirement had reduced the NWS's workforce from its levels prior to Trump's second tenure by over 550 employees, leaving less than 4,000 workers. The announcement on Thursday of a reverse comes amid a summer full of extreme weather, including the flash floods which devastated Texas Hill Country in July, killing at least 137 people. Devastation in Texas Hill Country raised the question of whether the number of job vacancies at the local NWS offices was a factor. Last month, Senate Democratic Leader Chuck Schumer asked the Commerce Department acting inspector general to investigate whether staffing gaps at the NWS San Antonio office led to "delays or gaps in accuracy" of forecasts. In May, Ken Graham, chief of the National Weather Service, said that large budget and staff cuts at NOAA and his agency would not affect the government's capability to forecast and warn about storms. The NWS also predicted a hurricane season in 2025 that was above normal. (Reporting and editing by Kate Mayberry in Los Angeles, with Steve Gorman reporting from Los Angeles)
Japan index reaches record highs on earnings boost; other Asian markets decline
Japanese shares rose on Friday following positive earnings reports, and the expectation that the U.S. will remove overlapping tariffs against the country's products. Other Asian markets were lower after the Wall Street session ended with a late retreat.
MSCI's broadest Asia-Pacific share index outside Japan fell 0.4%, with Hong Kong leading the declines. This comes after U.S. shares ended their previous session with mild losses despite having reached a near-one-week-high.
The Nikkei index rose 2%, while the Topix index set a new record by trading over 3,000 points for the first.
SoftBank Group shares rose as high as 11% following the announcement that the technology investor had returned to profitability in the first-quarter. Sony Group added 6% to its 4.1% gain on Thursday, fueled by earnings.
The S&P 500 eminis and Nasdaq Futures were both up 0.3%. Both are on course to extend their gains into a second day.
Tony Sycamore is a market analyst with IG in Sydney. He said that the rally for stocks came "against... an emerging titanic dovish reversal at the Federal Reserve."
The U.S. president Donald Trump announced on Thursday that he will nominate Stephen Miran, the chairman of the Council of Economic Advisers for the vacant Federal Reserve seat while the White House continues to search for a permanent addition for the central bank's board of directors and searches for a new Fed Chair.
Bloomberg News reported that Fed Governor Christopher Waller was the leading candidate to succeed Chair Jerome Powell whose term expires on May 15, 2026.
After a weak auction of 30-year bond, the yield on the benchmark 10-year Treasury note rose to 4.2461%. This is the latest in a series of disappointing sales this week.
The Japanese stock market has rallied after a mixed bag earnings report from the country's largest exporters. Some companies, like Toyota Motor, slashed profit forecasts while Sony and Honda claimed the impact was less than expected.
Tokyo's chief trade negotiator announced that the U.S. government promised to adjust some of the overlapping tariffs it has on Japanese products in order to avoid paying duties twice on certain goods.
The Hang Seng Index in Hong Kong fell by 0.6%. Technology shares led the declines, while China's blue chip CSI 300 index dropped by 0.1%. Australian stocks fell 0.2%.
The dollar increased by 0.1% to 147.27 yen.
Japanese household spending data released Friday, which provides clues to consumption and wage trends that the Bank of Japan is monitoring to determine the timing of its next rate hike, rose at a slower-than-anticipated 1.3%.
The euro was unchanged at $1.1669 after gaining 2.23% over the past month. Meanwhile, the dollar index which measures the greenback's value against other major currencies was up by 0.2% to 98.124.
Brent futures remained unchanged at $66.45, while U.S. crude oil futures were barely changed at $63.81 per barrel. Gold fell 0.4%, and the last price of bullion was $3391.157.
(source: Reuters)