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Tajikistan has requested 2.5 million tonnes of fuel and oil from Iran
The Central Asian country's Transport Ministry said that Tajikistan had asked for 2.5 million metric tonnes of?oil from Iran, while its traditional supplier, Russia, is also experiencing fuel shortages. The ministry posted a statement on its website last week stating that Tadjikistan had requested 2,55 million tons, which included?2 millions tons of crude oil, 150,000 tonnes of gasoline, 300,000 metric tons of diesel, and 100,000 metric tons of jet fuel. Tajikistan has traditionally imported up to 80% of its petroleum products from Russia. However, the Persian-speaking nation also shares close cultural and linguistic links with Iran. The timeframe was not given for the supply. In recent months, Russia has experienced a 'fuel shortage' as Ukraine waged a drone campaign against its oil refineries. In July, Tajikistan’s?energy? minister said that the authorities were in negotiations with Kazakhstan, Turkmenistan and Iran regarding additional supplies. Export bans for aviation kerosene, diesel fuel and gasoline have been implemented in Russia to stabilize the domestic fuel market. The ban does not apply to intergovernmental supply agreements. Reporting by Felix Light, Editing by Kirby Donovan
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Singapore's oil product inventory falls to a two-month low
According to government data, oil product inventories in Singapore, Asia’s main fuel trading hub, fell for the second consecutive?week, reaching two-month lows. Light distillates inventories are nearing a 5-year low. Enterprise Singapore reported that combined onshore oil products inventories were around 37.67 millions barrels for the week ending August 19. This is down from 38.44million barrels one week prior. Even though the imports of refined fuels like diesel, gasoline, and jet fuel from China dropped, they were in line with the expectations that the market had set since Beijing began to loosen its control over exports in July. As U.S. peace talks with Iran faltered, the markets were still worried about supply risks. Meanwhile, shipping through the Strait of Hormuz was unchanged on Wednesday from the previous day. MIDDLE DISTILLATES LIGHT?DISTILLATES SLIP Stocks of both middle and light distillates fell from a previous week. The stocks of light distillates have fallen to just under 11 million barrels, the lowest level since November 2021. The majority of gasoline imports came from countries in Northeast Asia, such as China and South Korea. Exports of gasoline were mainly to Indonesia, Malaysia, and Pakistan during the week. The city-state is a net jet fuel importer despite a 89% decline in its net diesel and gasoil exports week-on week. Imports of diesel and gasoil increased by over?10 compared to a week ago, with China as the main contributor. It was the same for jet fuel and Kerosene as China's volumes grew to nearly 70,000 metric tonnes. The traders expect more Chinese cargoes to be exported in the remaining months of August and September. RESIDUAL STOCK REMAIN BELOW THE AVERAGE EVEN AFTER WEEKLY GAINS The residual fuel stockpiles rebounded after a drop last week but are still below the average. The data showed that inventories were up 6.9% on a week-to-week basis, at 18.42 millions barrels (2.90million tons), reaching a two-week high. The total imports of fuel rose by 77.9%, to over 746,000 tonnes. Mexico was the largest supplier of fuel oil for the past week. Exports increased by 40.1% compared to the previous week, reaching a total of?over 348,000 tons. The majority of these exports went to China. Market sources reported that spot premiums on the low-sulfur fuel market showed some signs of easing this week even though the supply was still tight.
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Gold falls after a 2-month high on US Treasury move
Gold prices fell Thursday, as investors took profits after the price of gold climbed to its highest level in more than two months. This was due to a U.S. Treasury announcement that it would provide liquidity support for long-term bonds. The unexpected announcement weakened dollar values and reduced Treasury yields. By 0750 GMT, spot gold had fallen 0.7% per ounce to $4488.19. Bullion was earlier at $4,525.79 - its highest price since June 2 - after a more 4% increase on Wednesday. U.S. Gold futures were little changed at $4,462.30. Treasury Department announced it would double its liquidity support 'buyback operations' for longer-dated bonds and notes. This came after investors demanded a higher return on bonds due to increased inflationary risk stemming the U.S. and Israeli war against Iran. The U.S. Dollar was hovering near three-month lows. Ilya Spirak, global macro head at Tastylive said: "There's going to be a certain amount of digestion in the markets after such a large move." The $4,400-$4,500 price range is now cleared. The upward momentum will likely continue if prices remain above this range. The total amount of U.S. government debt has surpassed $40 trillion, causing new warnings about a?fiscal emergency. Edward Meir is a Marex analyst. "The increasing concern over the financial stability of market due to borrowing and debt, and the inability for fiscal?side spending cuts are very bullish on gold." Minutes of the Federal Reserve meeting on last month showed that concerns over inflation had?intensified. "Several" policymakers were ready to increase interest rates. According to the CME FedWatch Tool, traders are currently pricing in 69% of a Fed hold and 31% of a rate increase in September. Gold is often seen as a hedge to inflation, but higher interest rates can reduce the appeal of non-yielding gold. Silver spot fell 0.5% per ounce to $66.60, platinum 1.6% to $1794.91 and palladium 0.5% at $1325.94.
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Sources say that Coal India is planning a Singapore trading hub to hunt for critical minerals assets.
Two sources claim that Coal India Ltd., the world's biggest?coal manufacturer, will open its first overseas trading office in Singapore. The company aims to diversify by trading iron ore and critical and strategic minerals. The move comes as Indian state-run firms step up their efforts to secure overseas supply of critical minerals like lithium and bauxite to reduce dependency on China. However, such efforts so far have not yielded much fruit. Sources involved in the discussion, who requested anonymity because the talks were not public, stated that Coal India had applied to Singapore authorities to register an office. This 'will also support efforts for mineral assets to be acquired overseas. One source stated that the Singapore office would help Coal India to?expand and develop its vital minerals business, pursue overseas acquisitions, and support its iron-ore business. Coal India didn't immediately respond to our request for comment. Looking for opportunities in Africa, Chile and Canada Source: Coal India evaluates?opportunities' in mineral-rich areas, including Ghana and other parts in Africa. The miner is also interested in rare earth minerals. The second source stated that the miner was focusing its efforts on Chile for lithium while also evaluating other mineral assets in Canada and Australia. However, these opportunities are still at an early stage. The company has begun diversifying its business into other mineral industries. It won a?iron-ore block in eastern Odisha via a competitive 'auction this month, marking its?entry into iron ore mining. Coal India is considering buying a unit from Canada's wealth Minerals, which has lithium mining assets located in Chile. This would give Coal India access to the key metal for batteries used in electric cars and energy storage devices. India's efforts to secure strategic mineral resources abroad in order to support its clean-energy?ambitions, and manufacturing growth have met with limited success. It has only signed one lithium mining and exploration pact overseas, which covers five blocks in Argentina in 2024. Reporting by Sethuraman NR, Neha Arora and Mayank Bhardwaj; Editing by Clarence Fernandez and Mayank Fernandez
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Exxaro's half-year earnings are down 20%; solar production is up.
Exxaro Resources, a South African diversified mining company, reported on Thursday a 20% decline in its half-year earnings as production costs rose and the rand strengthened. Exxaro reported headline earnings per share ($0.855) of 13.77 rand for the six-month period ending June 30 compared to 17.24 rand during the same period last year. The company stated that mining input costs increased due to a Middle East conflict which disrupted supply chains globally and negatively affected income from its iron ore joint-venture. Exxaro owns a 21% share in Sishen Iron Ore Company, a Kumba Iron Ore subsidiary. The company increased its coal production by 11% in the first half of this year, to 21.5 metric tons. Exports also rose by 15% to 3.9 million tons due to improved logistics. Exxaro produced 1.8 million tonnes of manganese from its newly acquired assets, up 11%. Increase in renewable energy generation Exxaro Cennergi's renewable energy production increased 12%, to 378 gigawatt-hours. The Lephalale Solar Plant helped offset the effect of lower wind power. Exxaro said that the Lephalale solar power plant, with a 68-megawatt capacity, has helped reduce the dependence of its flagship Grootegeluk coal mine on the national electricity grid by 30 percent. Exxaro targets 1.6 gigawatts (or more) of renewable energy by 2030 as part of a broader strategy of energy diversification and carbonisation. The increase in production at Exxaro helped to'soften' the impact of rising costs. Exxaro unit costs increased by 4.6%, while diesel prices rose 21% in the first half. Exxaro has announced that it will pay a?interim?dividend of 7 rands per share. This is a reduction of 17% from the interim dividend paid last year.
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The LME copper inventory has increased to $14,000 due to the weakening dollar
Copper edged down on Thursday but held above $14,000 a metric tonne psychological level as higher inventories at the London Metal Exchange (LME), relieved supply concerns, and offset the support from sharp drops in the?dollar. Benchmark 'three-month' copper on the LME fell 0.26% to $14,013.5 per metric tonne by 0703 GMT. Shanghai Futures Exchange's most traded copper contract edged up 0.21% to 107200 yuan (about $15,943.13) per ton. On warrant copper stock, which means metal that is not yet marked for removal from the warehouse, on LME Exchange data showed that copper production rose by over 35,000 tonnes on Wednesday. This increase eased supply concerns caused by the outflow of refined copper to U.S. storage facilities due to its?potential tariffs. Stocks on the LME are up more than 50% since the beginning of the week but still less than half their levels from three months ago. The LME cash to three month copper spread has narrowed from its highest level since 2021, earlier in the week. The most recent backwardation was $280 per ton, indicating lingering concerns about material availability. The market is still vulnerable following months of inventory withdrawals. This was partly due to the diverting of metals towards?the US in anticipation of tariffs. As FX investors digested the measures announced by?U.S., the dollar dropped to its lowest level in three months. Treasury Department?to calm down the bond market. Copper recovered from its two-week lows on Wednesday thanks to the decline. The dollar is usually weaker when compared to other currencies. A weaker dollar usually increases the price of commodities denominated in dollars by making them more affordable for buyers who use other currencies. Aluminium, zinc, lead, and nickel all dropped in price on the LME. Tin, however, gained 0.32%. Aluminium?lost 0.61 %, zinc fell 0.28%, lead remained unchanged, only dropping 0.03%. Nickel gained 0.9%, and tin gained 1.39 %. $1 = 6.7239 Chinese Yuan Renminbi (Reporting and editing by Janane Vekatraman, Rashmi aich).
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CORRECTED - India tightens restrictions on sugar bulk buyers and imposes stockholding limits
A government order issued on Wednesday showed that India is attempting to control'record-high sugar prices by ordering that no bulk consumers using more than 10 tons of sweetener per month should hold their stocks for longer than 15 days. The notification stated that the order would come into effect on?September 1, and will remain in place until November 30. Tuesday,? On Tuesday,? India's sugar demand usually increases from August to November, as the country celebrates festivals like Ganesh Chaturthi and Dussehra. Bulk consumers, such as confectionery and biscuit makers, build up inventories before the festival season. India, which is the largest sugar consumer in the world, asked dealers to keep stocks for only 30 days last month to boost supplies. Indian sugar prices are at a record high after a 10% increase in the last?month. They will remain high for the next three to four months, as supplies tighten up and demand increases during the festival season. Sugarcane crops have been hit by a combination of patchy rains and dry weather. This is because they require a lot of water to irrigate. In India, sugar is a politically sensitive issue. Sweets are popular and poorer families rely on the commodity as a cheap energy source. (Reporting and editing by Chris Reese, David Gregorio and Akanksha Khaushi from Bengaluru)
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Gold falls after a 2-month high on US Treasury move
Gold prices fell Thursday, as investors took profits after the price of gold climbed to an 'over two-month high on a surprise U.S. Treasury's announcement of liquidity support for long-duration bond, which weakened the dollar and sent Treasury rates lower. By 0604 GMT, spot gold was down by 0.7% to $4,487.63 an ounce. Bullion was earlier at $4,525.79. This is its highest price since June 2 after a more-than-4% gain on Wednesday. U.S. Gold Futures was?little different at $4,545.60. Treasury Department announced that it would double its liquidity support 'buyback operations' for bonds and notes with longer maturities. This came after investors demanded higher returns due to the increased inflationary risk resulting from the U.S. and Israeli war against Iran. The U.S. Dollar was hovering near three-month lows. Ilya Spirak, global macro head at Tastylive said: "There's going to be a certain amount of digestion in the markets after such a large move." The $4,400-$4,500 price range is now cleared. The upward trend is likely to continue if prices remain above this price range. The total U.S. outstanding debt surpassed $40 trillion for the very first time. This prompted new warnings about a?fiscal emergency. Edward Meir is a Marex analyst. He said: "The increased concern over the financial stability of markets with debt and borrowing, and the inability to reduce spending on the fiscal side are very bullish for the gold." Minutes of the meeting showed that concerns over inflation were 'deepened' at a Federal Reserve meeting held last month. "Several" policymakers were ready to increase interest rates. According to the CME FedWatch Tool, traders are currently pricing in 69% of a Fed hold and 31% of a rate increase in September. Gold is often seen as a hedge to inflation, but higher interest rates can reduce the appeal of non-yielding gold. Silver spot remained at $66.90 an ounce. Platinum fell 1.4% to 1,798.41 and palladium dropped 0.5% to 1 325.95.
How long can the Bessent last?
Rae Wee gives us a look at what the European and global markets will be like today.
The markets were calmer on Thursday after the U.S. Treasury put a stop to an ugly bond selloff that occurred this week. However, the respite could be short-lived.
U.S. - Treasury yields in Asia were stable, while Japanese government bonds yields dropped after the U.S. Treasury announced that it would double the buyback size for 10- to 30 year Treasury debt securities up to at least 4 billion dollars per operation.
Scott Bessent, the U.S. Treasury secretary, intervened again in the currency markets on August 1, joining Japan to stop the yen’s?slide.
The sell-off of Treasuries wasn't without cause.
The total U.S. government debt is now over $40 trillion, a record high. Investors around the world are also demanding higher compensations to cover the massive borrowing requirements of developed economies.
Analysts warn that Bessent’s willingness to interfere in market forces may prove costly over time.
Data showed that, on other markets, Australian employment fell unexpectedly in July, and the unemployment rate?hit its highest level since late 2021. This data added to signs of a cooling labor market, and eased pressure for another rate increase.
The markets are predicting that the Reserve Bank of Australia will not raise rates next month. However, a decision by the end of this year is still viewed as a toss of the coin, and much depends on the inflation outcome.
Sweden's Riksbank will keep its policy rate at 1.75%, despite the mild headline inflation due to a fossil fuel-free energy system.
The following are key developments that may influence the markets on Thursday.
Germany Producer Prices (July).
Reopening in France of auctions for government debt with terms of 3, 5, 6, 8, 17, and 21 years
- Riksbank rate decision (Editing by Jamie Freed)
(source: Reuters)