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Copper prices rise on concerns about supply, but inventories are weighing
The price of copper rose on Tuesday, as disruptions in supply and lower interest rates offset concerns about high inventories and the slowdown in global economic growth. By 0920 GMT, the benchmark three-month price of copper at the London Metal Exchange had risen by 0.2% to $9,990 per metric tonne. "We must deal with disruptions in mine supply but we also have healthy increases in inventory levels, particularly in the U.S.," Ole Hansen said, head of commodity strategies at Saxo Bank, Copenhagen. The U.S. rate reductions last week have added to the positive mood, but it is important to remember that they are being done from a place of weakness and not strength. After an incident early in September, production remains suspended at Freeport Indonesia’s Grasberg Mine, one of the largest copper mines in the world. The U.S. Comex exchange's inventories soared in the first half of this year, anticipating U.S. Tariffs. They have since continued to rise, and now total 318,285 metric tons, up by 241%. LME copper is up 13% this year but has fallen from the 15-month high of $10,192.50 reached last week. The question is, will the upward trend that we have seen since May continue? Hansen said that we need to keep the price above $9,850 to avoid a further decline. The most traded copper contract at the Shanghai Futures Exchange ended daytime trading with a 0.3% decline, closing at 79.930 yuan per ton ($11,237.80). According to an anonymous Singapore hedge fund analyst, some traders have closed their long positions since SHFE closed Monday above the psychologically important level of 80,000 Yuan per ton. Lead fell 0.3% at $1.992 and Nickel dipped by 0.1%.
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Serbia will sign a gas import agreement with Russia in October
The head of Serbia's state gas company, RTS, told the public broadcaster on Tuesday that Serbia will sign a deal for a three-year supply of gas with Russia. Dusan Bajatovic, Srbijagas, said that Serbia already has daily gas supplies of 2.5 millions cubic metres from Azerbaijan. It also receives 9.5 million cubic meters daily from Russia. Bajatovic said that Serbia has a single gas storage facility which holds 780 millions cubic metres of gas. If needed, an additional 200,000,000 cubic metres can be obtained from a storage in Hungary. Serbia is one of the few European countries that still buys Russian gas, despite its desire to join the European Union. The government is under pressure from Western nations, but has not yet taken action. The oil monopoly of the country, NIS, which is owned in majority by Russia's Gazprom and Gazprom, is asking for a 7th waiver to delay U.S. sanction that could put its crude oil supply at risk. Aleksandar Vucic will meet with U.S. State Secretary Marco Rubio on Tuesday to discuss, among other issues, tariffs and sanctions. (Reporting and editing by Louise Heavens, Ivana Sekularac)
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Gold reaches record highs on bets that further rate cuts will occur ahead of Powell's speech
The gold price reached a new record high on Monday, driven by expectations that the U.S. Federal Reserve will continue to cut rates. Investors were waiting for Jerome Powell’s speech at the Federal Reserve later in day, which would provide further policy clues. As of 0840 GMT the spot gold price rose by 0.6% to $3,769.48 an ounce. This is a new record high. U.S. Gold Futures for December Delivery rose by 0.7% to $3.801,70. Stephen Miran, the new Fed governor, called for rate cuts aggressively on Monday. He said that the Fed misread how tight its monetary policy was and would put the job markets at risk. This view was countered by remarks made by three of Miran's colleagues, who felt the central bank should remain cautious regarding inflation. "Miran’s dovish position certainly heightens expectations of more rate cuts, as it appears the U.S. Administration is keen to push for this. This is a positive outcome," said Ross Norman, an independent analyst. Investors can expect two 25-basis-point cuts in December and October, according to CME FedWatch. The tool predicts a 90-73% probability of each. Gold that does not yield tends to perform well in an environment of low interest rates. Norman said that "gold is seeing good interest from institutional investors, who may be rotating out of the equities market as it reaches its peak. India also has a good demand for gold." The physical gold premium in India reached a 10-month-high this week, as investors continued to buy bullion to take advantage of record prices in the run up to the festive season. Norman said that the gold rate in the short-term depends on the Indian demand, the Chinese purchasing, and the durability of the increase in ETF holdings. SPDR Gold Trust said that its holdings increased 0.60% from Friday to 1,000.57 tonnes, which is a three-year-high. Silver spot fell by 0.1%, to $44.04 an ounce. This is near the 14-year high. Platinum rose 1.6% to $1,438.97, and palladium climbed 1.9% to $1,000.94. (Reporting by Ishaan Arora in Bengaluru; Editing by Joe Bavier)
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Miliband: 'Don't listen to the doomsters.'
Ed Miliband, Britain's Energy Minister, said that talk of an American-led retreat from climate action is overstated. He also stated that the economic arguments for net zero are strong enough to overcome domestic and international scepticism. Miliband spoke from New York Climate Week where speakers called on world leaders to put climate promises into actions, in the backdrop of U.S. president Donald Trump's agenda to boost fossil fuels and roll back pollution regulations, and to defund science and climate action. Not everyone is in favor of climate action He said via video link: "There are many people who say that countries are reversing their climate action and clean-energy policies, but don't listen to the doomsters." When you examine what is really going on, the story is actually very different. He also cited a more positive than expected vibe at Climate Week, and data that showed clean energy technologies had attracted $2 trillion in investments in 2024 -- twice as much as fossil fuels. TRUMP DESCRIBED WIND POWER AS AN EXPENSIVE JOKE Trump, on a recent high-profile visit to Britain described wind energy - which is a major component of Miliband’s plans to decarbonise UK power production by 2030- as "expensive" and encouraged the country to tap into its remaining oil reserves. Miliband responded that countries are entitled to act according to their own interests and that, for many people outside of the U.S.A., focusing on climate goals could lead to more affordable and secure energy. The International Renewable Energy Agency published a report in July that found the majority newly installed renewable energy to be more cost-effective than fossil fuels for electricity production. UK POLITICAL OPPOSITION PREFERS FOSSIL FUEL Miliband is facing opposition from Nigel Farage’s Reform UK party, which currently leads British opinion polls in advance of a 2029 election. They accuse him to be driving up bills through subsidising renewable energy. Farage has pledged to scrap net zero targets, subsidies and support drilling for gas and oil. "I believe they are on a wrong side of the British public, to be honest. People want action on the environmental. Miliband stated that they want it to help tackle the cost-of-living crisis. "We are happy to fight for the future of Britain, and I think it's a battle we can win." (Reporting and editing by Aidan Lewis in London, William James)
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Gulf markets fall as investors consider regional rate cuts and Fed outlook
Gulf stocks fell in the early trading on Tuesday, as investors digested the regional interest rate reductions following U.S. Federal Reserve’s moves. However, lingering uncertainties about its policy outlook kept sentiment cautious. The Fed cut its benchmark rate on Wednesday by a quarter of a percentage point in response to an improving labour market. However, it signaled a cautious approach to future monetary policy ease, leaving investors uncertain about the pace at which further moves will be made. Saudi Arabia, United Arab Emirates and Qatar have all cut their rates by 25 basis point each. Dubai's main stock index fell 0.6% with the majority of sectors slipping into negative territory. Emaar Properties, which was poised to break a three-day streak of winning, fell by more than 1%. Emirates NBD Bank dropped by 0.8%. National Central Cooling (better known as "Tabreed") fell 0.7% before its ex-dividend day. Consumer discretionary performed better, thanks to a 2.3% increase in Taaleem Holdings. ADNOC Logistics' 0.5% decline weighed on Abu Dhabi’s index, which fell 0.1%. Presight AI, a technology stock that has been down more than 1% compared to global peers, was the biggest laggard. Together with investment firm Shorooq the company announced the launch a $100 million fund to accelerate AI innovations. Qatar's stock market index fell by 0.1% on its way to a third consecutive day of losses, with the selling concentrated in energy and financial shares. Qatar National Bank, which is the largest lender in the region, fell 0.5%. Qatar Fuel also dropped 0.4%. Saudi Arabia closed for National Day. (Reporting and editing by Andrew Cawthorne in Bengaluru, Amna Marieyam)
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Shanghai copper prices fall, due to higher demand and prices
The price of copper fell slightly on Tuesday, after two days of gains. This was due to higher prices and the uncertainty surrounding China's economy. These factors outweighed a weaker dollar and concerns about supply disruptions. As of 0800 GMT, the most traded copper contract on Shanghai Futures Exchange had closed its daytime trading at 79.930 yuan per metric ton ($11,237.80). By 0809 GMT, the benchmark three-month price of copper at the London Metal Exchange had fallen 0.13% to $9,960 per ton. According to an anonymous Singapore hedge fund analyst, the dip was caused by traders closing long positions on Monday after SHFE closed above a key psychological level of 80.000 yuan/ton. China also kept its benchmark lending rate unchanged on Monday for the fourth month in a row, as authorities keep markets guessing regarding further stimulus. Analysts at Everbright Futures wrote in a Tuesday note that the combination of higher prices, uncertainty over stimulus, and U.S. rates of interest weighed on China's procurement appetite, despite restocking demands, in advance of National Day, which runs from October 1-8. The dollar's slight weakness helped to limit the decline. The dollar's weakness makes commodities priced in greenbacks cheaper for traders who use other currencies. Benchmark Mineral Intelligence analysts said that uncertainty over the future of Freeport's Grasberg Mine also clouds the outlook, as it is uncertain about the balance between supply and demand. Nickel, aluminium, zinc, and lead were all down, while tin was up 0.55%. The LME metals fell 0.19% in aluminium, while zinc dropped 1.07%. Lead was down 0.58%. Tin was down 0.4%. Nickel was virtually unchanged. $1 = 7.1226 Chinese Yuan Renminbi (Reporting and editing by Dylan Duan, Lewis Jackson)
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European shares start higher as utilities gain momentum, but ASMI caps gains
European shares edged up on Tuesday. Wind energy stocks took the early lead, after Orsted surged on a favorable U.S. Court ruling regarding its stalled projects, but a decline in Dutch firm ASMI held gains back. As of 0712 GMT, the pan-European STOXX 600 index was up 0.3% to 555.1 points. Spain and the UK regional bourses gained around 0.3% each. Orsted shares jumped 9.4% on Monday after a U.S. Federal Judge ruled that Orsted can resume work on a nearly completed project off the coasts of Rhode Island. The utilities sector rose 1%, while Vestas' rival gained about 3%. ASM International, which has been limiting its gains, fell 5.6% following the company's reduction of revenue targets for the second half 2025. ASML, a Dutch company, dropped by 1.3% and was one of the largest drags on STOXX 600. Investors will be watching for comments from Federal Reserve officials, including Chair Jerome Powell, to assess the U.S. Central bank's rate path after it reduced interest rates last Thursday.
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Guinea voters endorse post-coup constitution, partial results show
According to partial results announced late Monday, voters in Guinea overwhelmingly supported a new Constitution that would allow Mamady doumbouya, the coup leader to run for President if he so chose. Djenabou toure, the head of Guinea's general directorate of elections, told reporters that 90.6% of votes were in favor of the constitution and 9.4% were against. These figures are based on approximately 91% of the votes cast during the referendum. Officials did not have an overall number for voter turnout, but they had counted over 4.8 million votes from more than 6 million registered voters. This means that turnout exceeded 70%. Doumbouya took power in Guinea in 2021, the country with the largest bauxite reserves in the world. This was one of eight coups in West and Central Africa that took place between 2020 and 2023. After the coup, a charter was adopted that prohibited members of the Transitional Government from running for office. The language in question was not included when the Constitution was presented to voters on Sunday. Doumbouya’s opponents have criticized the referendum as an attempt by him to grab power. The Doumbouya government has missed the deadline of December 31, 2024 that it set for itself to return to civil rule. The current expectation is that the presidential elections will take place in December. Doumbouya voted with his wife, a former member of France's Foreign Legion. He wore sunglasses and a baseball hat emblazoned with a drawing of an ancient mask that symbolizes fertility. He hasn't yet announced whether he plans to run for office. Cellou Dalein Diallo, the main leader of Guinea's opposition, and former president Alpha Conde had both called for a boycott. Human Rights Watch accuses the government of arbitrarily suspending news outlets and removing political opponents. The government denied that it played a role in the disappearances, but promised to investigate these allegations. (Reporting from Guinea newsroom Reporting Robbie Corey Boulet)
Exxon Mobil opens new Singapore refinery unit to boost sour crude oil imports
Exxon Mobil Corp. has begun production at its Singapore oil refining complex at new facilities to produce base stock from residue fuel. It said on Tuesday that this would increase the plant's intake high-sulfur crude.
Exxon released a statement that said the technology uses a combination of processes to transform fuel oil and other crude products at the bottom of barrels into more valuable lubricant base stocks and distillates.
Exxon said that the new facilities will increase its Group II base stock production capacity by 20 000 barrels per day.
According to Kpler data, Crude imports from Exxon Singapore's refinery reached a record high of 541,000 barrels a day in August. This is the highest level since 2016. The region has been experiencing sulphur-rich crude oil demand.
Data showed that the refinery had stopped importing low-sulphur U.S. oil since April and was now only buying high-sulphur crude.
According to data, in August, United Arab Emirates ranked first with Murban crude and Upper Zakum oil while Qatar ranked second with al-Shaheen crude.
According to data, the refinery imported Arab Light crude in August from Saudi Arabia for first time since November 20, 23. Oman and Iraq are also suppliers.
Exxon's Jurong Island crude oil processing capacity is 592,00 barrels per day.
Base stocks for industrial and commercial applications are used to make engine oils, gear oil, marine oils and greases.
(source: Reuters)