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Diamondback Energy beats quarterly profit estimates, raises production forecast
Diamondback Energy beat analysts' expectations on Monday for its second-quarter profits and raised its annual production forecast. The high global oil prices are due to supply disruptions caused by the Middle East conflict. The war in Iran that began in late February nearly stopped the flow of Middle East goods through the Strait of Hormuz. Brent crude went from an average of $69.82 per barrel in January, to $126.41 by April, and WTI from $65.17, to $109.64. Diamondback expects to produce over 1 million barrels of oil-equivalent per day by 2026, up from its previous projection of 972,000 BOEPD. The company produced 1018 Mboepd during the second quarter. This is up from 919 879?boepd one year ago. Diamondback, a shale producer based in the U.S. enjoys the benefits of higher commodity prices, just like other oil producers. The realized price per barrel of oil for the company was $94.33, up from $62.34 one year ago. According to LSEG, the Midland, Texas, based company reported an adjusted profit per?share of $6.48 for the three'months' ended June - 30. This was compared with analyst estimates of $6.01. (Reporting and editing by Sriraj Kalluvila in Bengaluru)
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Gold prices fall as markets consider Middle East instability and inflation risks
Gold prices fell on Monday, as concerns about inflation and the war in the Middle East remained. The markets will also be watching the U.S. Federal Reserve policy direction this week. Spot gold dropped 0.3% per ounce to $4,030.34 by 2:00 pm EDT (1800 GMT), and U.S. gold futures for delivery in August settled at $4,090.50, a 0.4% decline. Gold has been in a trading band for over a month, roughly between $4,000 and $4200. The fact that the market may be anticipating a rise in inflation is a positive factor, particularly in July when fresh data are expected to reverse much of the decline in June," Marex analyst Edward Meir stated. Three Fed officials, who dissented at last week's meeting and voted in favor of a rate increase, said that delaying the higher borrowing costs could keep inflation over the Fed's target of 2%. New York Fed President John Williams stated that the central bank is ready to increase rates if inflation pressures do not ease. Brent futures rose by more than 20% in the last month as a result of renewed fighting between Iran and the U.S., and after attacks on tankers near Oman raised?security concerns. The expectation that the Fed would keep rates high to combat inflation is exacerbated by higher energy prices, which weighs on gold. Iran said on Monday that there are no ongoing talks with the U.S., and?no plans?for any meetings. This contradicts President Donald Trump's claim that talks would be held to justify calling off a?attack. This week, market participants will closely monitor a number of U.S. jobs reports. These include the ADP Employment Report and the Nonfarm Payrolls Data. South Korea's central banks said that they would buy gold from local producers in order to diversify their sources of supply, and increase their holdings of precious metal. Silver spot was unchanged at $57.63 an ounce. Platinum fell 1.6% to $1.615.25, while palladium declined 1.7% to 1,252.62. (Reporting by Sukanya Mitra in Bengaluru; Editing by Sahal Muhammed)
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Chevron gives staff special bonuses following earnings blowout
Chevron is giving its employees a bonus for their operational performance so far in this year. This follows the U.S. Oil Producer's record earnings on Friday, which was?boosted by the high oil prices due to the ongoing war?in Iran. In an internal message that was seen by?, CEO Mike Wirth praised Chevron employees for meeting cost reduction targets, achieving deal synchronizations from the Hess purchase ahead of schedule, and operating safely amid the?geopolitical turmoil this year in Venezuela, and the Middle East. Wirth wrote, "Results such as these in an year like this one are not normal." They reflect an extraordinary effort in extraordinary circumstances. Email stated that the bonus would be equal to half of the monthly base pay for many employees. The cash announcement came as U.S. President Donald Trump continued his criticism of oil companies, calling on them to lower their gasoline prices. He also called out Wirth in a Sunday Fox News TV interview for failing to credit the administration with the company's successes. Get your retail (consumer!) "Oil Prices MUST DROP NOW!" Trump wrote in a blog post on Truth Social. Chevron did not respond immediately to a comment request about the statement. Sheila Dang reported from Houston. Nathan Crooks, Mark Potter and Nathan Crooks edited the report.
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Trump to attend mining executives' event amid critical minerals drive
Donald Trump is expected to participate in a roundtable with?mining executives on Friday, hosted by the United States. According to two people who are familiar with the plans, State Department. The event is a part of the Trump Administration's efforts to increase domestic and allied supply of critical minerals required for energy, defence and advanced technology. According to sources, the agenda, participants, and other details are fluid and could change. The administration has prioritized securing vital minerals supply chains, and is taking steps to increase domestic production, decrease reliance on China, and strengthen partnerships with its allies. It argues that to expand the sector, it will not only require investment in mines and processing facilities, but also an increase of skilled workers. This includes engineers, geologists miners, and technicians, since companies are facing a shortage of talent for future projects. According to a person who has direct knowledge of the plans, the U.S. Department of Energy will also host a Friday event focused on workforce training. The event will feature?representatives of all 14 accredited U.S. Mining Schools, and is intended to increase awareness about mining as a profession while?highlighting that more students are needed to enter this field, according to the?source. China's extensive network of mining school has made it the world's leading minerals producer. White House, Department of Energy and State Department have not responded to requests for comment. Ashley Burke, a representative of an industry trade association, said: "We are looking forward to working with the administration on solutions that will responsibly develop our nation's vast resource, secure our supply chains, and create the mining workforce of tomorrow."
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Stocks rise amid hopes for peace with Iran, oil falls; yen firms gain after intervention
On Monday, oil prices?dropped? and major stock indices gained?on signs that U.S. -Iran tensions are easing?again. Meanwhile, the yen?strengthened?against?the euro and dollar?after the?U.S. Japan and the United States confirmed their joint support. Oil prices fell sharply after U.S. president Donald Trump delayed a new attack on Iran, hoping to seal a deal quickly that would boost oil supply from the Gulf. U.S. crude oil was down by 6.07% to $79.53 per barrel at the end of yesterday, and Brent fell to $83.64 a barrel at the close. This is a 4.88% drop on a daily basis. Iran, however, said that no negotiations were underway with the U.S. or any plans to meet. The optimism over earnings has helped support the stock market. LSEG data shows that more than 300 companies in the S&P 500 have already reported their earnings. Approximately 85% of these firms beat expectations. Peter Cardillo is the chief market economist of Spartan Capital Securities, based in New York. "The sharp fall in oil prices due to Trump's cancellation of severe attacks against Iran, and hopes for a diplomatic solution, got things moving this morning," he said. He said that "so many earnings have exceeded expectations" and the guidance is positive. This has also been a positive for stocks. Amazon's market cap surpassed $3 trillion on Monday. This was aided by a strong rally after strong earnings, and signs that AI is driving demand for cloud computing services. The Dow Jones Industrial Average rose 512.69, or 0.98% to?52.998.45. The S&P 500 gained 96.74, or 1.29, points to 7,586.46. And the Nasdaq Composite gained 512.28, or 2.02% to 25,886.13. The MSCI index of global stocks rose 8.86 points or 0.79% to 1,129.37. The pan-European STOXX 600 rose by 0.45%. AstraZeneca shareholders punished the pharmaceutical company on Monday after reports of merger discussions with U.S. competitor Bristol Myers Squibb, which could make it the world's largest drugmaker with a combined valuation of nearly $400 billion. Japan's Nikkei ended 1% lower while South Korea's KOSPI fell more than 5%. Japan and the U.S. have conducted a coordinated yen buying intervention and won't hesitate to take additional action, Japan’s finance ministry announced on Monday. This confirms a rare bilateral effort to stop the yen’s slide to new 40-year-lows. Trump stated on Sunday that U.S. was helping Japan to prop up the Japanese yen in a show of friendship and for the benefit of the global economy. The dollar index, which measures the greenback in relation to a basket of currencies, including the yen, the euro and others, increased by 0.24%, reaching 99.95. Meanwhile, the euro fell 0.18%, at $1.1506. The dollar fell 0.44% against the Japanese yen to 156.87. Tokyo's unilateral intervention between late April and early may caused only a short yen recovery, while the Bank of Japan rate hike in June provided little support. This highlights the challenges policymakers face due to rising oil prices and an interest-rate gap with other major economies. As oil prices dropped, U.S. Treasury rates also fell. Traders continued to assess the chances of a Federal Reserve rate increase if the war lasted. The yield on benchmark U.S. 10 year notes The rate dropped by 5.52 basis points, to 4.69%. On Friday, it reached the highest level since January 2025 at 4.747%. After peaking on Friday at 5.2811%, the 30-year bond yield dropped 4.44 basis points to 5,2306%.
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Gold prices fall as markets consider Middle East instability and inflation risks
Gold prices fell a little on Monday, as concerns about inflation and the war in the Middle East remained. The markets are also watching the latest job reports to determine the Federal Reserve's next policy move. Spot gold dropped by 0.1% at $4,037.01 an ounce as of 12:37 pm EDT (1637 GMT) while U.S. gold futures for delivery in August fell by 0.3% to $4,000.05. "Gold is stuck in a range of trading for over a month, roughly between $4000 and $4200. The fact that the market may be anticipating a rise in inflation is a positive factor, particularly in July. "New data will likely reverse a large part of the decline in June," Marex analyst Edward Meir stated. Three Fed officials, who were against a rate increase at the policy meeting last week, said that delaying higher borrowing rates could keep inflation above the Fed’s 2% goal. New York Fed President John Williams stated that the central bank is ready to increase rates if inflation pressures do not ease. Brent futures rose more than 20 percent last month as fighting resumed between the U.S.A. and Iran and after attacks on tankers in Oman raised security concerns. The expectation that the Fed would keep rates high to combat inflation is exacerbated by higher energy prices, which weighs on gold. Iran stated 'on Monday that there are no talks in progress with the U.S., and?no plans to meet. This contradicts President Donald Trump, who had used talks as a justification to call off 'attacks. This week, market participants will closely monitor a number of U.S. jobs reports. These include the ADP Employment Report and the Nonfarm Payrolls Data. South Korea's central banks said that it would buy gold from local producers in order to diversify its sources of supply, and increase its precious metal holdings. (Reporting by Sukanya Mitra in Bengaluru; Editing by Sahal Muhammed) (Reporting by Sukanya Mitra in Bengaluru; Editing by Sahal Muhammed)
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Trafigura holds large amounts of LME Zinc as Prices Hit Four-Year High
Two industry sources claim that Trafigura, a commodity trading house, holds a large share of zinc available on the London Metal Exchange. This is despite the fact that the prices of zinc, which is used to galvanize steel, have reached their highest levels in nearly four years. Available, or on-warrant, LME zinc stocks Just 73,850 tons of refined zinc were consumed in the world last year. This is equivalent to two days' global consumption. According to the International Lead and Zinc Study Group, the world consumed 13.8 million tonnes of refined zinc in 2012. LME data shows that three entities have large holdings of LME Zinc warrants, which are title documents conferring ownership. This gives three large entities significant control over the immediate supply of zinc and fuels concerns about availability at?the LME. Trafigura refused to comment. The other two holders' identities are unknown. On Monday, the benchmark three-month zinc price on the LME increased by as much as 1,7% to $3703.50 per tonne, its highest level since August 16, 2022. However, it then lost all gains and fell 0.3% to $3633 at 1500 GMT. A fear of a shortage has created a premium or "backwardation" for contracts that are close to maturity over those with longer maturities. The LME cash zinc?contract trades at about $60 per ton more than the forward three-month contract The premium has eased from $73 a week earlier, but is still?in steep backwardation', which indicates near-term tightness. The premium for August is higher than the forward three-month contract. The spread is now above $63 per ton. This is the highest level since May 20, when the spread began trading. Exchange data 0#MZN FBR> reveal that one market participant had a short position equating to?to 20%-29% of the open interest in the LME August 'zinc contract. This could have been a bet made on lower prices, or a producer protecting its output. Positions?must then be squared, or rolled?over?before contract expires August 19th. The company might struggle to find the zinc it needs for delivery, unless they are a manufacturer. Also, if the supply is tight, rolling the position will be expensive. Reporting by Pratima Dasai and Tom Daly. Mark Potter edited the article.
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Beiersdorf says Middle East conflict disrupts Gulf sales, deliveries
Beiersdorf, the maker of Nivea, said that the conflict in the Middle East was disrupting sales and deliveries in key Gulf markets. This highlights how geopolitical tensions continue to impact consumer goods companies in the region. Vincent Warnery, Chief Executive of the company, said that due to the conflict the company was unable to ship some products to Saudi Arabia or the United Arab Emirates. "This is something that impacts not only our costs, but also consumption." We hope the war will end soon so that we can get back to business as usual," he said in a press conference. Beiersdorf warned in April that sales in the Middle East were being adversely affected by conflict. Warnery also said that the company was closely monitoring the oil markets, given the possible impact of higher crude costs on packaging and other input costs. Warnery stated that despite the sharp rise in oil prices following the intensification of the conflict between the United States and Iran, prices have not reached the levels Beiersdorf had predicted. He said that the "good news" was that the sustained increases in oil prices will eventually filter through to the costs of the company because it uses a large amount of plastic packaging. Beiersdorf lowered its full-year outlook on Monday, citing "a difficult market climate and a slower than expected recovery" at its core Nivea product.
Dollar rises as uncertainty over peace talks boosts the dollar
On Wednesday, stocks recovered from a crash in technology shares due to caution about overstretched AI valuations. Meanwhile, crude oil prices dropped towards four-month-lows and the dollar climbed up to a one-year-high.
The technology stocks that were hard hit on Tuesday edged higher ahead of Micron's earnings, whose chips are key to the AI boom. Investors chose the dollar as a safe haven because sentiment was fragile.
Michael McCarthy, a market analyst at Moomoo Securities Australia, said that the price action on markets in the past seven trading days was alarming. Not only when it fell, but when it rose as well. When markets move rapidly in either direction it is a sign that there's instability.
The wild swings overnight in Asian stocks that saw South Korea’s Kospi rise 3.5% on Wednesday, despite a 10% fall on Tuesday, did not translate to high volatility in Europe.
The regional stock market was essentially unchanged for the day. The broader regional stock market was roughly unchanged on the day.
U.S. Stock Futures rose between 0.1% and 0.4%. The dollar rose against a basket major currencies for the third day in a row, reaching its highest level in over a year.
The strategists at Scotiabank believe that the dollar is overvalued, given the expectations of at least one rate increase from the Federal Reserve in this year. This has boosted the currency.
The dollar continues to enjoy a 'fear premium,' due to the lingering geopolitical concerns and in particular the US/Iran Conflict," they stated.
On Wednesday, oil prices dropped more than 1%, continuing this week's losses, and trading at near four-month lows. This was on the back of signs that more tankers stuck in the Gulf will be moving out of the Strait of Hormuz.
The outlook is uncertain, as the U.S., and Iran, have given conflicting reports on the key elements of their agreement, such as nuclear inspections, and control of strait.
The yield on the benchmark 10-year U.S. notes fell by 1 basis point to 4.48%.
The 'euro' was one of a few?main losers of Wednesday’s dollar strength, as investors lowered their expectations that the European Central Bank would raise rates more than they had expected this year. They also increased the likelihood that the Federal Reserve will increase borrowing costs.
The euro traded at its lowest level in over a year. It was down for the third day, trading at $1.1354. It has already lost more than 2.5% of its value in June, and is on track to have the worst month since July.
The yen also fell on the day and traded around 161.695. This kept markets on edge about a possible currency intervention designed to support the?battered Japanese?currency.
The minutes of the Bank of Japan’s latest?meeting at which interest rates were raised to a 31 year high of 1.00% showed that policymakers discussed the rising inflation risks. Some called for a faster increase in interest rates to bring borrowing costs closer to levels considered neutral to the economy.
Gold prices continued to fall, with the dollar rising, and fell 0.7%, or $4,078 per ounce. This is nearing the two-week lows. (Editing by Lincoln Feast, with additional reporting from Satoshi Fugiyama in Tokyo)
(source: Reuters)