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Prices for EUROPE GAS rise and reverse earlier losses
Dutch wholesale gas prices increased on Wednesday. They reversed earlier losses due to concerns about liquefied gas (LNG) supply if tensions escalate in Iran. LSEG data shows that the benchmark Dutch front-month 'contract' at TTF hub is up?1.42 Euros?at 32.55 Euros per megawatt hour by 1213 GMT. This is the highest level recorded since October 7, last year. The Dutch March rate was 31.66 Euros/MWh, an increase of 1.28 euros. The British day-ahead contract was down 0.40 pennies at 82.80 pence/therm. Iran warned its neighbours that it could strike U.S. military bases if Washington interferes with protests, despite the fact that weather forecast revisions showed?milder temperature than before and a strong supply. Gas?traders said that the market was nervous about the situation in Iran and possible risks to LNG supply. The oil price also rose for the fifth consecutive session due to fears that Iranian supplies could be disrupted by a possible U.S. strike on Iran, and possible retaliation on U.S. interests in the region. Analysts at LSEG said that the gas storage levels in North-West are likely to fall below 100 terawatt hours on March 1. This would be a positive factor. Prices fell this morning due to increased LNG exports and Norwegian?exports as well as lower demand forecasts for the coming days. LSEG data shows that the local distribution zone gas demand for north-west Europe is expected to decrease by 296 gigawatt-hours/day (GWh/d), to 3,600 GWh/d, in the next day. Wind speeds that are stronger than normal will also reduce the gas consumption of gas-fired plants. The benchmark contract on the European carbon markets was up by 0.13 euros at 90.87 euro per metric ton. (Reporting and editing by Nina Chestney, Susanna Twidala)
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Caledonia will spend $132m on Zimbabwe's largest gold mine in this year
Caledonia Mining Corporation announced on Wednesday that it will spend $132m this year to launch the development of Zimbabwe's biggest gold mine once it is operational. The record gold prices are helping miners expand production. Gold spot prices reached a new record of $4,639.48 per ounce on early Wednesday. This was fueled by the escalating tensions in Iran, concerns over the Federal Reserve’s autonomy, and softer inflation data that boosted bets for rate cuts. Caledonia stated in a production report that the planned expenditure, which is part of an overall capital expenditure programme of $162.5 millions for 2026, was subject to approval by the board and funding availability. Caledonia, which already operates ?the 80,000-ounce-per-year Blanket mine in Zimbabwe, plans to develop the Bilboes mine at a projected total capital cost of $584 million. The new mine will begin production in late 2028. A steady-state annual output of 200,000 ounces is anticipated starting from 2029, for an initial 10 year period. The company has said that it will fund the Bilboes Project through a combination of senior non-recourse debt, contributions made by existing operations, and specialised financing methods, such as streaming. In this method, investors provide cash in exchange for future metal supplies. Caledonia’s expansion plans got a boost last month after Zimbabwe’s government reversed its plans to double gold royalty rates and change the taxation of capital expenditure. (Reporting and editing by Nelson Banya, Joe Bavier and Chris Takudzwa Muronzi)
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Copper falls from record highs due to physical demand
The copper price hit a new record on Wednesday, thanks to persistent demand by speculative funds. However, some investors were concerned that the high price would discourage industrial buyers from buying. The benchmark three-month copper price on the London Metal Exchange fell 0.1% to $13,176.50 per metric tonne by 1030 GMT after reaching a record high of $13,407. LME copper prices have risen by 44% in the last 12 months. This is due to disruptions at the mines and concerns about deficits for this year. Also, a large flow of metal has been sent to the U.S. before potential tariffs which could tighten supply elsewhere. "With all the?concerns? about debasement and financial risks, as well as Fed independence, these hard assets are just sensational," Ole Hansen, head commodity strategy at Saxo Bank, in Copenhagen, said. There's a limit to industrial metals, where we?hit a wall when it comes to potential demand destruction. I don't even know where this level is or if it's already reached. He said that if you look at the?technical signal, a closing below $13,000 will cause a downward reaction. Hansen stated that the copper demand in China appeared to be stable and there was a potential for stocking before the Lunar New Year holiday. After hitting a record high of 105.650 yuan, the most-traded contract for copper on the Shanghai Futures Exchange ended daytime trading 0.9% higher, at 104.120 yuan per ton ($14.931.88). Investors bet that demand for tin, which is used in semiconductors, will grow rapidly as a result of the artificial intelligence boom. SHFE tin rose 8%, reaching the upper limit of 413,170 Yuan. LME tin increased 4.1%, to $51,550. The fundamentals of tin have not changed dramatically. Jing Xiao said that the price rally was fueled by speculative trading. Tom Langston?at The International Tin Association?agreed that supply-demand metrics had not changed, noting the record interest rates on the LME. Other metals saw a 0.1% increase in LME aluminium to $3.200 per ton. Zinc rose 1% at $3.232. Lead added 0.4% at $2.069, and nickel climbed 1.7% to 17.995.
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Malaysia's state utility signs a deal to send energy from Laos and Singapore, revitalizing a cross-border project
Malaysia's state-run utilities firm signed a 2-year energy - agreement to transmit electricity from Laos into Singapore. This deal revives a Southeast Asian multilateral power trade - agreement that has been stalled since the year 2024. Tenaga Nasional Berhad, in a filing to the bourse on Wednesday, said that Energy Wheeling Agreement Phase 2 is part of a project to integrate power from Laos with Thailand, Malaysia, and Singapore. This will allow up to 100 megawatts in Laos to supply power via Thailand and Malaysia to Singapore using existing transmission links. The first phase was signed in 2022 with a validity of two years that ended June 22, 2024. Malaysia's Energy Minister in October last said that the delay was due to?local political changes in Thailand. According to an agreement signed Wednesday, the state utility Electricite?Du Laos pays TNB for wheeling?services in order to transmit energy produced in Laos from Singapore. The deal is part ?of the second phase of ?the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project, which is a precursor to a ?broader ASEAN Power Grid initiative aiming to connect all ten member states and tackle the region's growing reliance on fossil fuels. (Reporting and editing by David Stanway; Ashley Tang)
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Gold and silver reach historic highs amid geopolitical tensions and Fed uncertainty
Silver broke through $90 for the first time and gold reached a new record on Wednesday. The escalating tensions in Iran, along with concerns about the Federal Reserve’s autonomy, fueled demand for safe havens, while lower inflation numbers boosted bets to cut rates. Gold spot rose 0.9%, to $4,627.72 an ounce, by 1001 GMT. This was after the gold price had reached a session high of $4.639.48. U.S. gold futures for delivery in February rose by 0.8% to $4 636. Jamie Dutta is the chief analyst at Nemo.money. He said that prices are rising because of "well-known haven characteristics" amid increased geopolitical risk, fiscal uncertainty and concerns over Fed independence. The Federal Reserve Chair Jerome 'Powell was backed by central bankers from around the globe on Tuesday. They issued an unprecedented statement of support after the Trump administration threatened to indict him, which could have a negative impact on the trust that people place in U.S. assets like the dollar. Dutta said that "protests in Iran maintain geopolitical tensions, resulting in a strong demand for bullion." HRANA, a rights group based in the United States, said that the death toll has reached 2,571, sparking threats from?U.S. intervention. The Bureau of Labor Statistics reported on Tuesday that the core Consumer Price Index in the United States rose by 0.2% from one month to the next and 2.6% over the course of a year. Powell, the Fed's chairman, has been urged by President Donald Trump to reduce interest rates "meaningfully". The traders expect?two rate cuts in this year. Low interest rates are usually in favour of non-yielding gold. Spot silver rose 4%, to $90.46 an ounce. This is down from a record high of $91.53. It has risen by nearly 27% within just 14 days of this year. Dutta stated that "long-term targets" are big numbers like $5,000 and $100 respectively for gold and Silver. After touching a session high of $2,406.75 per ounce earlier, spot platinum rose 3.5%. It hit a record $2,478.50/oz on December 29. Palladium increased 0.1%, to $1840.19 per ounce. (Reporting and editing by Clarence Fernandez in Bengaluru, with Pablo Sinha reporting from Bengaluru)
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TotalEnergies and Bahrain's Bapco Energies form Middle East Trading Venture
TotalEnergies, the French oil giant, announced on Wednesday that it had?formed BxT Trading a joint venture with Bahrain's Bapco Energies. The Middle East-focused venture is expected to trade products from Bapco’s Sitra refinery, which produces 267,000 barrels per day. The partnership builds upon a 2024 agreement?underwhich Total agreed to expand and modernise the?Sitra refinery to reach a throughput capacity 380,000 barrels per d?ay and to share its trading expertise. It also explored options to partner with Bahrain in projects involving renewable energy and liquefied gas. Bapco announced in December a new increase of capacity to 405,000 bpd. In a recent statement, Bapco Energies chairman Shaikh Nasser bin Hamad Al Khalifa said, "Through our partnership with TotalEnergies, we are strengthening our downstream value chain, and reinforcing Bahrain’s position as a trusted and competitive player on the international energy market." Patrick Pouyanne, CEO of TotalEnergies, said that the joint venture would strengthen Total's Middle East position Two executives signed a contract in Abu Dhabi on Tuesday. (Reporting by America Hernandez in Paris. Mark Potter (Editing)
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TotalEnergies sells its SPDC assets in Nigeria to a new buyer
By America Hernandez PARIS, January '14 - French giant TotalEnergies signed an agreement to sell its 10% non-operated stake in the Nigerian oil asset SPDC (renamed Renaissance JV) to Vaaris. This follows a failed sale to Mauritius based Chappal Energies last year. Total retains a 'full economic interest in the?deal, which includes stakes of three other licenses that produce mainly?gases for Nigeria LNG. The company did not provide any further information on the buyer. The inability of the buyer to pay the $860 million price tag was the reason why Nigerian regulators rejected Total's first deal with Chappal Energies for the SPDC stakes. This dealt a serious blow to Total's attempts to liquidate its mature and polluting assets, as well as to reduce debt. The SPDC was plagued by hundreds of oil spills due to theft, sabotage, and operational problems that resulted in costly repairs?and high profile lawsuits. Shell sold its 30% share in SPDC to a consortium made up of mostly local?companies last year for up $2.4 billion. Nigerian National Petroleum Corporation, or NNPC, holds a?55% stake in the joint venture while Eni of Italy has 5%. The Nigerian regulators must approve the deal. Reporting by America Hernandez, Editing by Jan Harvey & Tomasz Janowski
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Copper prices rise as concerns over supply outweigh dollar strength
The price of copper peaked on Wednesday as global supply concerns, mounting geopolitical risk and a stronger dollar outweighed the pressure. The Shanghai Futures Exchange's most-traded contract for copper closed the daytime trading session 0.85% higher, at 104120 yuan per metric ton, after reaching an all-time record of 105650 yuan. The benchmark three-month copper contract on the London Metal Exchange rose 0.58% at $13,240 per metric ton as of 0743 GMT after hitting a record high earlier. The price of copper has been supported by "disruptions" at mines, concerns about deficits in this year and an influx of red metal into the United States. Supply elsewhere is being squeezed by potential tariffs. Donald Trump, the U.S. president, said on Tuesday that help was on its way for Iranians. Analysts say that this fueled concerns about geopolitical risk, which led some investors to rush into commodities with "healthy fundamentals" such as copper or tin. A stronger dollar has capped the price increases. The tin price in Shanghai and London has also reached record levels, with gains so far this month of 23,6% and 30,4% respectively. Analysts say that more funds have been invested in the tin industry, as investors bet on the rapid growth of demand for this metal which is used to manufacture semiconductors and will?benefit the artificial intelligence boom'. SHFE tin increased 8%, reaching the upper limit of 413,170 Yuan. LME tin rose?more than 5 % to $52,495. Jing Xiao is an analyst with broker SDIC Futures. She said that she does not believe there has been a dramatic shift in tin fundamentals. The round of 'price rally' was driven by speculative trade. Xiao stated that the demand for tin in 'the AI sector was overestimated, while the consumption of traditional 'users were underestimated. The high prices of the products have dampened consumer demand, while this year's supply growth will probably exceed expectations. This points to potential downside risks." SHFE aluminium slipped 0.06%. Nickel slipped 0.11%. Lead dipped by 0.17%. Zinc grew by 0.51%. Aluminium, nickel, and lead are among the other metals traded on the LME.
Dollar and global shares rise as markets anticipate Fed rate cuts
The dollar and global shares were mostly up on Thursday as traders awaited a Fed rate cut. Wall Street stocks, however, were mostly flat following a series of economic reports.
After two sessions of gains in the U.S., stocks fell after choppy trading. The benchmark S&P 500 was down. Consumer discretionary, healthcare and consumer staples stocks suffered the greatest losses. Industrials, communications and energy advanced.
The Dow Jones Industrial Average dropped 0.19%. The S&P 500 fell 0.10%. And the Nasdaq Composite declined 0.03%.
STOXX 600 in Europe was up 0.45%, and is still on track for a modest gain each week. The FTSE 100 index in London was up 0.19%, while the DAX index in Germany gained 0.32%. MSCI's global stock index rose by 0.23%. Japanese stocks rose sharply following an auction of government debt that attracted strong demand from investors. This helped set the tone for broader equity markets. The Nikkei rose 2.33%.
Michael Farr, CEO of investment advisory firm Farr, Miller & Washington, said that after a 5% drop in stocks in late November, they have recovered and are trading near their all-time highs. On Thursday, data appeared to allay fears of a rapid deterioration of the U.S. labour market. Last week, the number of Americans who filed new claims for unemployment benefits dropped to a three-year low. The number of Americans filing new applications for unemployment benefits fell to a more than three-year low last week, at 191,000. This came after the U.S. Private Payrolls Data posted its largest drop in over two-and-a half years and following a service sector survey that showed activity remained steady in November, while hiring slowed.
Markets may be disappointed if they reduce rates by a quarter point, then pause. This is what every Fed speaker said. Farr added that if they do not cut rates and instead say we will wait until the next Fed meeting, then markets would be disappointed.
Fed funds futures have a 90% probability of a quarter point cut at the Fed's meeting on December 10. This is up from an 83.4% possibility a week earlier, according to CME Group's FedWatch.
The dollar index (which tracks the U.S.'s currency performance against six other currencies) was slightly up by 0.08%, easing previous losses and poised for an end to nine consecutive sessions of declines.
Brent crude futures rose 0.94%, to $63.26, while U.S. Crude futures climbed 1.22%, to $59.67.
US 10-YEAR BOND YIELD IS UP At the last check, the yield on a 10-year Treasury Bond in the United States was up 5.2 basis point at 4.11%. The Financial Times reported that on Wednesday, bond investors expressed concern to the U.S. Treasury about Kevin Hassett's potential to aggressively reduce interest rates in order to align himself with President Donald Trump.
Farr stated that the Trump administration had chosen to announce the President's choice of a new Fed Chairman in a way that would be perceived - whether correctly or incorrectly - as more dovish during this meeting, to appear to be an antidote for the message.
The government debt sale in Japan attracted the highest demand for more than six-years, helping to calm investor nerves over the long-term finances of the country, which have caused similar concerns about other economies. The dollar last fell 0.16% to 154.97 yen. This is the largest weekly gain for the U.S. currency against the yen in more than two months. The yen was also boosted by a report that said the Bank of Japan would likely raise interest rates next month, with the government tolerating such a move. Three government sources who are familiar with these discussions were cited.
In Hong Kong, offshore trading, the yuan weakened a bit, with the dollar gaining 0.17% to 7.069 yuan. On Wednesday, the Chinese currency reached its highest level in over a year against the dollar. After a recent run of hot metals, precious metals have cooled. After hitting a record-high of $58.98 Tuesday, gold was unchanged at $4,207.88 per ounce. Silver fell 2.54%, to $56.98, an ounce. Reporting by Chibuike Oguh and Gregor Stuart Hunter in New York; Editing by Ed Osmond, Lisa Shumaker
(source: Reuters)