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Chief supervisor candidate: Indonesia will build a trustworthy commodity exchange
The upcoming Indonesian minerals and strategic commodities exchange will be built with infrastructure that is trustworthy, said the president's nominee for commodity trading on Monday. The commodity bourse will begin operations on January 1 and is part of a government effort to exert greater influence over its commodities' prices, which are some of the most dominant in the global market. The resource-rich Indonesia exports the most thermal coal, nickel and palm oil in the world. Indonesia is a major exporter of tin and copper. It also produces bauxite and coffee beans. Sarjito stated that people will always judge the market based on whether or not it is transparent, fair and orderly. Sarjito (also known as Sarjito) said that traders and industry players would not be able to trust the market if it was not deep or had no integrity. He is the only candidate of President Prabowo for the post of chief supervisor of commodities trading at the Financial Services Authority, locally known as OJK. Sarjito, a former OJK deputy commissioner for consumer protection who retired in 2024, needs parliamentary approval before he can be appointed to the position. The big-tent coalition that controls the Parliament is likely to approve his appointment. This is especially true after the Financial Committee endorsed him following the hearing on Monday. Sarjito said that OJK and the bourse must work immediately to build trust in the market. He said that the exchange doesn't have to be huge from its first transaction, but must be trusted. FAIR PRICES Prabowo launched a series policies to tackle what he called commodity shipment leakages. He accused exporters of under-invoicing and transfer pricing in order to shift profits overseas. In May, Prabowo announced a controversial policy to centralise exports under the sovereign wealth fund Danantara. This policy roiled commodity markets. Later, he softened the plan by saying that commodity exports will be monitored and not controlled. Sarjito stated that the country is pursuing its goal to become the price maker of its major commodities. However, the prices on the exchange should be fair. Sarjito said that a presidential regulation would be released detailing commodities which'must be traded at the exchange. He did not provide any additional details. He said that trading through the exchange will be mandatory. However, he didn't specify whether this would apply to domestic or export sales. Two privately-owned commodity futures exchanges are already operating in the country, which handle transactions on commodities such as gold, tin, palm oil, and forex. Sarjito stated that he believes there should be only one commodity exchange in Indonesia. He also said he will evaluate the future of current bourses. (Reporting and writing by Bernadette Cristina and Stefanno sulaiman, Gayatri suroyo and editing by David Stanway & John Mair).
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China's oil purchases are put in the spotlight by US sanctions against Iran
China has been buying Iranian oil for many years. The U.S. is threatening heavy economic sanctions against Tehran. The Treasury Secretary,?Scott Bessent, was to hold a media conference on Monday at 1 pm EDT (1700 GMT). According to Kpler, a ship-tracking company, the following are some key facts about?China?s oil trade with Iran. How much oil does China currently buy from Iran? It's less than it used be. On July 13, the U.S. re-imposed its blockade on Iran's ports and ships in an effort to stop oil sales, as a deal aimed at ending their war fell through. This slowed down Iranian exports. According to Kpler, there haven't been any visible crossings of the Strait of Hormuz in recent years, even though many vessels turn their transponders off, making them difficult to track. Kpler's preliminary data shows that the number of barrels shipped per day has fallen to 534,000 in August, down from the previous month when it was 785,000. Who are the Chinese buyers? Chinese independent refiners are the biggest Iranian crude buyers. They're attracted to what is typically a steep discount compared to mainstream barrels. China's state-owned refiners have avoided?Iranian crude since the U.S. reinstated sanctions against Tehran in 2019. China's customs data shows no purchases of Iranian oil. Refinery sources and traders in the industry have confirmed that Iranian oil is delivered to China under the Malaysian and Indonesian names, and settled in Chinese currency. The trade involves a complex network of intermediaries who are difficult to track. HAD PREVIOUS U.S. SANCTIONS BEEN "EFFECTIVE"? Since President Donald Trump's return to the White House in early 2018, Washington has increased its efforts to crack down on Chinese purchases Iranian oil. It has imposed sanctions on smaller Chinese refiners and others in the supply chain. These sanctions have been disruptive in some cases. The?U.S. The Treasury Department has warned two large Chinese banks that they may face secondary sanctions should Iranian funds be found in their systems. However, it has not designated them. Washington imposed sanctions in April on Hengli Petrochemical Dalian refinery and about 40 shipping firms and vessels. Washington accused Hengli to have bought billions of dollars of Iranian oil. Hengli denies 'buying Iranian oil. The sanctions have not been able to significantly reduce the overall flow of Iranian oil into China. Kpler data shows that China's imports of Iranian oil stood at 1,24 million and 1,58 million bpd respectively in January and Februar. What does China say? China, who has rejected unilateral sanctions, called for a solution through diplomatic and politic means.
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As markets await US inflation figures, gold reaches a three-month high.
Gold reached its highest level in more than three months on Monday. A muted dollar helped to boost appeal. Investors awaited U.S. data on inflation and comments from Federal Reserve chairman Kevin Warsh, this week, for clues on interest rate path. Gold futures in the U.S. rose?0.2%, to $4,691.10, while spot gold gained 0.7%, reaching its highest level since 15 May. Bullion prices rose by more than 5% in the last week, after the U.S. Treasury Department’s buyback plan pushed down the dollar and made greenback-priced gold more affordable to foreign investors. The?U.S. dollar will remain under?pressure and Treasury yields will either stabilize at current levels or continue to decline," said ActivTrades senior analyst Ricardo Evangelista. "The dollar will remain under 'pressure, and Treasury yields will stabilize at current levels or decline further," ActivTrades Senior Analyst Ricardo Evangelista stated. On Monday, the dollar fell to a multi-month low. Market participants will now be awaiting Wednesday's release of the Personal Consumption Spending Price Index and Warsh’s speech at the Jackson Hole Symposium, which is scheduled for Friday. This information will help them gauge policymakers' views on interest rates. According to the CME FedWatch Tool, traders are pricing in a 36% probability of a September rate hike, and a 64% likelihood of the Fed keeping rates the same. Gold is often seen as a hedge against inflation, but higher interest rates can reduce its appeal because it doesn't yield any income. The U.S. is preparing to impose economic sanctions against Iran's trading partners on Monday, which it has called the "greatest financial offensive" ever. Oil prices dropped by more than $1 per barrel as investors took profits before an announcement expected from Washington. Spot silver dropped 0.2%, to $68.81 an ounce. Platinum gained 0.1%, to $1877.84. Palladium fell 0.9%, to $1337.23.
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Sources say that Pakistan's Munir talked to Trump before the Tehran visit
According to three pakistani sources, U.S. president Donald Trump met with Pakistani army chief Asim Munir in the last week, a few days before Munir was scheduled to visit 'Tehran' on Monday. One of these sources said that the U.S. wanted to use Pakistan to influence Iran to return to negotiations. Trump warned last week that any country providing "any kind of lifeline" to Iran would face economic consequences as he sought to isolate the Islamic Republic. Iran, in turn, has promised to stop all oil exports out of the Gulf. According to two Pakistani source, Trump initiated the call last week, which was not previously reported. The White House Office of the Press Secretary didn't immediately respond to an inquiry for comment. Uncertain was what Munir discussed with Trump in detail. Pakistan's army confirmed that Munir and Mohsin Naqvi arrived in Tehran with Munir on Monday. They said it was "part of Pakistan’s efforts to promote peace and stability in the region." Pakistan has been a major trading partner for Iran during the recent conflict. One Pakistani source claimed that Munir would meet on Monday with close associates of Iran's Supreme leader Ayatollah Khamenei. A second source in the Pakistani government said that while U.S. - Iran tensions would be a major focus of Munir's visit, he was also expected to talk about recent attacks by Iran-aligned Houthi Fighters against Pakistan's ally Saudi Arabia, as well as -the recently signed mutual -defence agreement - between Pakistan, Turkey, and Saudi Arabia. In June, an interim peace agreement was signed between the U.S.A. and Iran as a result of Pakistan's mediation efforts. The Islamabad Memorandum was quickly shattered amid new fighting between Iran, the U.S. and other regional powers in recent weeks. A third?Pakistani said that there was a lack of trust between the U.S.A. and Iran. Munir, he added, wanted to alleviate the lack on mutual trust by Monday. Reporting by Asif Shahid, Ariba Shehid and Mubasher Bukhari; Editing and production by Rick Noack & Hugh Lawson
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Thames Water's creditors form new board as part of proposed rescue deal
Senior creditors of Thames Water announced Monday the first set of directors who will oversee a decade long overhaul of Britain's struggling water utility, if its plan for rescue is approved. The group includes a turnaround expert and a retired civil servant. The UK's biggest water company, which is saddled with a debt of around PS20 billion ($27billion), has been struggling to survive after its owners have failed to adequately invest in the aging?infrastructure. Public anger has also been directed at the company over sewage spills into rivers. In July, the senior creditor consortium known as London & Valley Water proposed a revised plan of rescue that included a 10-year programme of transformation and a potential 'golden stake' for?the Government in an attempt to prevent the company from being taken under?public ownership by Prime Minister Andy Burnham's administration. The plan is designed to address critical issues like pollution and leakage by investing in Thames Water’s infrastructure. The appointments are dependent on the turnaround plan being approved, the water regulator Ofwat clearing all directors, and the new capital structure through a court sanctioned restructuring. The 'creditors', who hold PS17 billion in debt for the utility, have proposed that Openreach chair Mike McTighe be appointed to the board of 'Thames Water.' Other candidates include former Yorkshire Water CEO Liz Barber and ex-CEO Clive Selley. McTighe, the man who will lead the new Thames Water board and oversee the overhaul of the governance, said, "It's going to take some time for us to fix Thames Water. But we are committed to restoring trust with our customers -and the public that Thames Water serves." The group of directors collectively has experience in turning businesses around and running regulated utilities. In an emailed message, a spokesperson from the utility stated that Thames?Water is working constructively in order to?reach a long-term agreement which will support its financial stability.
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UK informs energy chiefs of cyber attacks linked to Iran
Britain briefed the 'chiefs' of energy companies on Monday on how to protect their assets, after reports that Iran-linked hackers had allegedly'shut down a small energy facility. The Telegraph and Financial Times both reported that a cyber-attack, which they said occurred?in July? and was attributed to hackers with Iranian links, forced a small British generator off line for four days. Michael Shanks, Minister for Energy, did not say who or where the incident occurred, but he said that the government and industry took the incident very seriously. They were working with regulators and National Cyber Security Centre in order to assess threats and improve protections. Shanks, in a blog post on X, wrote: "To be clear: There was no threat to the wider grid and no one lost power." The generator is small, especially when compared to?what many of us would consider a "power station/plant". A spokesperson from Britain's energy department stated that there is no risk to the system as a whole, and added that the country has a "highly-resilient" energy network. The?Iranian Embassy in?London didn't immediately respond to an inquiry for comment.
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Sources say that QatarEnergy and Iraq's SOMO offer to load crude oil inside Hormuz through tenders.
Multiple trade sources reported on Monday that 'Iraqi state oil marketer SOMO and QatarEnergy are offering crude in rare tenders which require buyers to load their cargoes within the Strait of Hormuz. Sources said that SOMO offered September-loading Basrah Medium or Basrah Heavy Crude from Iraq's Basrah Oil Terminal or Single Point Mooring?and its related facilities. Iran's official news agency IRNA said that Baghdad had repeatedly requested permission to allow a number of Iraqi tankers to cross the Strait of Hormuz. The bids for Iraqi oil will close on the 26th of August. QatarEnergy, in addition to SOMO, has also offered al-Shaheen?, 'Qatar Marine'?and Qatar Land?crude for loading on September and October at their respective loading ports in Qatar. The tender is valid until August 25. Reporting by Nidhi Verma and Siyi Liu from New Delhi; Editing by Christopher Cushing and Christian Schmollinger.
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Gold reaches a 3-month high before US inflation data and Fed chair speech
On?Monday, gold prices reached their highest level in over?three month as a subdued Dollar?lent support. Meanwhile, attention shifted to important U.S. Inflation data and Kevin Warsh's speech this week. As of 0644 GMT spot gold rose 0.9% to $4,643.63 an ounce. This is the highest price since mid-May. Prices rose by more than 5% in the last week. U.S. Gold Futures increased by 0.4% to $4,699.10. The dollar was a little off its multi-month lows as the market was unsettled after the U.S. Treasury announced that it would buy back additional long bonds. A weaker dollar means that holders of other currencies can afford to buy greenback-priced gold. Tim Waterer is the chief market analyst for KCM Trade. He said that gold has started the week in a positive mood and has returned to the bid mode. It's taking its cues from the weaker dollar, and it's also focusing on the higher yields, which may signal underlying economic strains or policy uncertainty. Watching the July Personal Consumption Spending price index and Fed Chair Warsh’s speech this week at the Jackson Hole Symposium will give us new clues about the U.S. rate outlook. The traders will pay close attention to any change in tone regarding the current policy and its relationship with recent developments on the bond market. Waterer stated that a 'balanced' or 'cautious? tone, which leaves room for flexibility, would allow gold to continue its gains. The U.S., on the geopolitical side, threatened Iran with "the greatest financial offense ever marshaled" as they prepared to roll-out economic sanctions targeting?Iran’s trade partners. Investors took profits before the announcement. Silver spot gained 0.1% to $69.03 an ounce. Platinum gained 0.5%, reaching $1,887.28, and palladium added 0.3%, at $1,353.34.
Russell: Imports of crude oil and fuel from Asia are recovering, but still below pre-Iran War levels.
Asia's crude imports rose to the highest level since the Iran War began in July, but they were still 15% lower than pre-conflict.
According to Kpler commodity analysts, the top energy consuming continent imported 22.82 millions barrels per day during July.
The average?26.89 mbpd for the three months before the U.S. and?Israeli attack on Iran was?4 mbpd lower.
According to Kpler, imports of refined fuels showed some improvement in July. Arrivals of light and medium distillates were 5.76 million barrels per day, which is 18.5% less than the average of 7.07 million barrels per day in the three-month period ending in February.
The July crude imports are up significantly from the April levels. This is because the Strait of Hormuz was closed in April. It was this narrow waterway that carried about 20% of all oil and petroleum products before the war.
Kpler data shows that Asia's crude imports in April were the lowest since November 2015.
The lowest imports in Kpler history were made in June, when the arrivals of light and medium distillates fell to?only 5.21 million bpd.
The market must decide whether the increase in crude and product imports during July is an indication that flows will begin to normalise or if it is only a temporary blip, and Asian markets are still stressed.
It is true that a part of the increase in imports was due to the short ceasefire that took place in mid-June, which allowed the tankers to leave the waterway that were stranded because of the closure of the Strait of Hormuz.
The strait was the main route for Asia to import light and middle distillates. In July, the number of bpds increased from a low of 144,000 in May, but it is still far below the 1.51m bpds in the last three months.
The average crude oil arrivals through the Strait of Malacca were 4,05 million barrels per day (bpd) in July. This is up from 1,59 million barrels per day in April, but 70% less than the 13.60 millions bpd that was the norm in the three-month period prior to the beginning of the war.
HORMUZ FLOWS
Imports could drop after August, as some of the crude oil and other products that left the Strait of Hormuz in the three-week ceasefire agreement between Iran and the United States are likely to be delivered.
After August, it is likely that Asia will import goods at levels far below those before the beginning of the conflict.
The Asian countries must continue to draw down their inventories, and hope that China will continue its recent trend to drastically reduce its crude oil purchases.
According to Kpler's data, China's seaborne crude imports reached 6.94 million barrels per day (bpd) in July. This is up from the decade low of 5.99 million bpd recorded in June, but down 39% when compared to the average of 11.43 millions bpd over the three-month period ending in February.
China's reduction in seaborne crude oil imports of over 4 million bpd has offset losses from the Iran War, but it is unclear how long this will continue.
China's crude stockpile is estimated to be at least 1.2 million barrels. It can certainly keep imports low for a few months. But it would be logical to assume Beijing will not be eager to reduce inventories significantly.
China, like a majority on the crude market, could anticipate that U.S. president Donald Trump would be forced, by economic realities, to accept a deal that reopens strait?on Tehran's conditions.
The flow of crude oil and refined products to?Asia suggests that the window before real economic hardships are felt is closing.
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These are the views of the columnist, an author for.
(source: Reuters)