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Oil prices steady as traders assess supply risks ahead of key US-Iran discussions
Investors assessed the risks of a supply disruption after Iran conducted naval exercises near the Strait of Hormuz, just before nuclear talks with the U.S. that day. Donald Trump, the U.S. President, said on Monday that he will be "indirectly involved" in the Geneva talks. He also stated that he believes Tehran is interested in a deal. Trump stated at the weekend that a regime change in Iran would be "the best thing to happen." Brent crude futures fell 0.2% to $68.59 per barrel at 0106 GMT after a 1.3% rise on Monday. U.S. West Texas Intermediate crude oil was $63.73 a barrel, up 84c or 1.34%. However, the price increase included the entire Monday's movement as the contract had not settled that day because of the U.S. Presidents Day holiday. There are many markets closed for Lunar New Year on Tuesday, including those in mainland China, Hong Kong and Taiwan, South Korea, and Singapore. In a recent research report, Daniel Hynes, a?ANZ analyst, stated that "the market remains unsettling amid ongoing geopolitical uncertainty." The risk premium built into the oil price could quickly unwind if the tensions in the Middle East were to ease or if meaningful progress was made in the Ukraine crisis. Oil prices could be boosted by a negative outcome, or if the situation escalates. Iran started a military exercise on Monday at the Strait of Hormuz. This is a crucial international waterway and oil export path from Gulf Arab countries, who have appealed for diplomacy in order to resolve the dispute. Iran, along with Saudi Arabia, the United Arab Emirates Kuwait and Iraq, export the majority of their crude oil via the strait to Asia. Citi also said that if disruptions in Russian supply continue to keep Brent at $65-$70 per barrel in the coming months, OPEC+ will likely respond by increasing production from spare capacity. Three OPEC+ sources have said that OPEC+ is leaning toward a resumption of oil production increases in April as the group prepares to meet 'peak summer demand, and prices are bolstered due to tensions between U.S. and Iran relations. Citi stated that "it is our base case" that both Iran's and Russia's-Ukraine's deals will happen before or during this summer, contributing to the decline of prices to $60 to $62 per barrel Brent. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Kevin Buckland)
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BHP profits beat forecasts, as copper outperforms iron ore on AI-driven demand
BHP Group reported a stronger-than-expected ?half-year underlying profit driven by copper, which for ?the first time surpassed iron ore in the top global miner's earnings, ?as ?prices for the red metal surged on AI-fuelled demand. BHP's shares jumped 7% to an all-time high, with investors applauding a much stronger-than-expected dividend and the prospect of sizeable payouts ahead, despite falling iron ore prices. The result is impressive as the demand for copper continues to grow, driven by the rapid increase in power consumption for artificial intelligence data centers and the move towards cleaner energy. This is driving competition between mining giants for high quality copper assets. BHP, world's largest copper producer, played down the importance of acquisitions and highlighted its own growth options. Last year, BHP walked away from an offer to purchase Anglo American. Visible Alpha's consensus was $6.03 billion. The underlying profit attributable for the first half rose by 22%, to $6.20 Billion. BHP declared a dividend of 73c per share. This was higher than the market estimate of 63c, and represents a payout of 60%. Andy Forster said, "It was an excellent result," a BHP investor and portfolio manager for Argo Investments. "They exceeded everyone's dividend expectations." BHP's operating profits for the six-month period ending December 31 were $7.95 billion, which is higher than the $7.50 billion earned by iron ore. This represents 51% of BHP's total operating earnings, which were $15.46 billion. This was due to a 32% increase in the realised price of copper and a surge in precious metals prices. Iron ore production in the first half of 2008 was at a record high, and prices rose as well. Inflation is driving up production costs, and the 'push' to concentrate on copper coincides with an?expected ease in iron ore prices as supply increases over the next few years. This week, iron ore prices fell to a low not seen in seven months. Iron ore unit costs increased by 7%, to $19.41 a metric ton during the first half of 2018. Takeovers - No Burning Required BHP's Chief Executive Officer Mike Henry stated on a conference call with media that given the company's organic growth options it did not feel any pressure to pursue acquisitions or mergers in order to grow copper. He said that he had the means to pursue the few discrete opportunities that would fit our very strict criteria, but he didn't feel a burning need to do so. Rio Tinto was negotiating to purchase Glencore. The deal would have been a major one for the global copper industry, but Rio Tinto backed out of the talks earlier this month, citing disagreements over valuation. BHP is pushing to increase its copper production towards the end decade. It raised the lower end of its copper output forecast for this coming year to between 1.9 and 2 million tons in January. This was due to strong operational performance at its copper assets. It announced on Tuesday an 18 billion dollar multi-year plan for developing copper, gold and silver mines in northern Argentina at its Vicuna Corp. joint venture with Canada’s Lundin Mining. The unit is capable of producing more than 500,000 tonnes of copper per year in peak production by the end next decade. Henry stated that "tough negotiation" continued with?China regarding iron ore supplies as CMRG (the state buyer) tries to get better terms for Chinese Steelmakers. He said that he is confident the issues will be solved, but it will take some time. BHP reported that it had experienced a 'price impact' from CMRG’s ban on Jimblebar Fines in its quarterly report for January, but didn't provide any further details in its earnings report. The miner has announced an agreement to stream silver with Wheaton Precious Metals. Wheaton will pay $4.3 billion upfront at the completion of the project, and deliver silver from Antamina's share of production. Henry explained that this payment was part of the $10 billion BHP is aiming to raise through existing assets. This could boost BHP's dividend payout for the entire year.
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Oil prices rise on US-Iran talks, causing a cautious start for Asian markets
The Asian financial markets treaded carefully in Tuesday's holiday-thinned trade, but oil prices rose as U.S.?and Iran nuclear negotiations in Geneva were due to start later that day. The markets in Mainland China, Hong Kong and Singapore, Taiwan, South Korea, and Taiwan were closed Tuesday to celebrate Lunar New Year. Monday,?U.S. markets were closed for Presidents' Day. The Nikkei fell 0.5% and the Topix, which is a broader index, dropped 0.2%. The S&P/ASX200 index in Australia was almost 0.5% higher. The 10-year Treasury yields fell 1 basis point on Tuesday to 4,044%, the lowest since December. Japan's 5-year yield dropped 2 basis points to 1,65%, its lowest level since February 2. Early Asian trading hours saw Nasdaq Futures down by 0.1%, and S&P500 Futures up by 0.2%. The dollar index (a measure of U.S. currency compared to major rivals) was flat last night at 97.07 after a slight gain of 0.2% overnight. The weakening of Japan's economy was the main topic on Tuesday after GDP figures that were much lower than expected. On Monday, the country reported that its economy had grown by an annualised 0.2% during the fourth quarter. This was far below the forecasted 1.6% increase. Government spending was a drag on the activity. The Japanese yen rose 0.15% to 153.28 dollars per yen on Tuesday. Economists say that the weak figures should encourage Prime Minister Takaichi to push for more aggressive fiscal stimuli. BOJ will meet again to discuss rates in March. Traders predict a slim chance of a rate hike. Last month, economists polled predicted that the central bank would wait until July to tighten policy again In a research note, NAB analysts stated that the market had likely assumed the softer GDP figures in the fourth-quarter would encourage PM Takaichi to offer more fiscal support and lower the sales tax for food. The pricing for BoJ rate increases has been a little lower since the GDP data. Only 4 basis points have been priced for the March meeting, and 16 basis for April. The central bank of Australia said that it was unable to predict the future direction of inflation if they had not increased interest rates this month. They were not sure yet if any further tightening is required. Prices of oil were higher before U.S. Iran?talks aimed to de-escalate tensions?against a background of expected OPEC+ production increases. West Texas Intermediate crude in the U.S. was up by 1.29%. Brent crude futures rose 1.33% overnight. The semi-official Tasnim News Agency reported that the Iranian Revolutionary Guards Navy held a drill on Monday in the 'Hormuz strait, just a day before the renewed Iran-U.S. Nuclear?negotiations. About 20% of the world's oil is shipped through this passage. Analysts at ANZ said that geopolitical uncertainty is still causing investors to be cautious, as they await the outcome of US-Iran and Ukraine talks this week. In recent weeks, speculation has increased. The risk premium built into oil could quickly unwind if tensions in the Middle East ease or a meaningful breakthrough is made regarding the Ukraine conflict. Gold fell 0.85% to $4949.5 an ounce, as the dollar rose on Monday and made gold priced in greenbacks more expensive for holders other currencies. Silver spot was down 2%. (Reporting and editing by Scott Murdoch)
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Trump declares that the US government will step in to protect Potomac River following sewage leak
Donald Trump, the U.S. president, said that the federal government would step in on Monday to protect the Potomac River after a major sewer pipe collapsed in Washington, D.C., last month. In a post on social media, Trump said: "I'm directing Federal Authorities immediately to provide all necessary management, direction, and coordination to protect the Potomac River, the Water Supply of the Capital Region, as well as our precious National Resources in our Nation’s Capital City." Maryland's Democratic governor Wes Moore has accused the Republican administration of failing to act on this issue. He also said that the U.S. Environmental Protection Agency had not attended a legislative hearing held Friday?on cleanup. The spokesperson for the Governor said that the Trump administration had not gotten the memo about their actual responsibility here. She added that the federal government was responsible for the Potomac Interceptor sewage line, the source of the sewage spill. On January 19, a sewer line collapsed in Montgomery County, Maryland. This caused an 'overflow of over 240 million gallons of wastewater (909 million liters). The University of Maryland has called it the largest sewage spill in U.S. History. Researchers at the University of California, Berkeley have found high levels of bacteria that cause disease and fecal pathogens. This raises urgent concerns for public health and highlights the dangers posed by an aging sewer system. The EPA stated that it did not invite Maryland state legislators to brief them on the spill, as DC Water and Maryland had led the response to the leak. The EPA will continue to perform its oversight function, coordinate with DC Water, and inform Congress. FEMA TO STEP IN, SAYS PRESIDENT Trump stated that the Federal Emergency Management Agency (FEMA), which has experienced significant staff reductions since Trump took office in early 2025 will coordinate the response. Climate activists have criticised Trump's reductions in domestic climate regulations as well as the U.S. withdrawing from global environmental agreements. Muriel Bowser, the mayor of Washington, D.C., said that she had no comment about Trump's announcement, but pointed out a page from the website of the local government which stated that?drinking waters in the area were safe and weren't affected by the sewage leak. According to the website,?DC Water has been working on measures that will contain the spill and fix the pipeline. Trump, since returning to the White House in 2017, has tried to exert control over Democratic-led areas, including the nation’s capital. He has done this by using armed immigration agents, National Guard troops and threats of?cutting federal funding. Since Trump's first deployment in August, more than 2,000 National Guard soldiers have been stationed in Washington. Trump claims that his actions are meant to improve domestic security. Democrats and rights activists say that these actions are aimed at political opponents, and they amount to federal overreach. (Reporting and editing by Scott Malone; Paul Simao, Lisa Shumaker, and Scott Malone)
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Havana's trash piles up as US oil chokehold stops garbage trucks
The U.S. effort to prevent oil reaching the Caribbean's largest island has resulted in a swarm of flies and the smell of rotten foodstuffs. This is one of the visible effects of the U.S. attempt. Cubadebate, a state-run news outlet, reported that fuel shortages had caused only 44 out of Havana’s 106 garbage trucks to continue operating. This slowed down the garbage collection. Residents have been sorting through cardboard boxes, used plastic bags, rags, and other waste to find scraps that they can reuse, but motorists, pedestrians, and cyclists must avoid the huge piles. Jose Ramon Cruz said that the garbage was all over the city. It's been over 10 days since the last garbage truck. Residents in other?towns of the island, which is home to 11 million people, took to social media warning about the dangers to public health. Cuba's communist regime has implemented rationing to protect essential services. The country was already experiencing severe shortages of fuel, food and medicine. In just two months, the national oil supply has dropped dramatically. Venezuela, once Cuba's largest supplier, stopped shipping shipments at the end of December. Mexico also announced that it would stop shipments to Cuba after Washington threatened tariffs on countries who send supplies there. Last week, a Russian newspaper reported that Russia is preparing to ship crude and fuel cargoes to Cuba soon. The report did not give a date. The U.S. embargo against Cuba has been in place since 1960. However, President Donald Trump's administration recently stepped up its efforts to enforce the embargo, by sanctioning oil-shipping vessels and threatening tariffs on suppliers. The 'U.S. The administration claims that the measures will increase political pressure in Cuba. The United Nations has voted repeatedly for the U.S.?to end its embargo. Leaders from Mexico and Venezuela have said that blocking fuel could have serious humanitarian effects. Stephane Dujarric, the spokesperson for Secretary-General Antonio Guterres, told reporters Monday that Guterres was "very concerned" by the situation. Teams are working with the Cuban government to support humanitarian relief efforts. He said, "The secretary-general would love to see all sides pursue dialogue and respect international law once again." (Reporting and writing by Alien Fernandez, Mario Fuentes and David Brunnstrom. Additional reporting and writing by Sarah Morland. Editing and revision by Dave Sherwood and Nick Zieminski.
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Cuba's Havana is piled high with garbage as US chokehold stops garbage trucks
Havana's garbage piles up on the streets, attracting hordes flies, and smelling of rotten foods. This is one of the visible effects of the U.S. effort to prevent oil reaching the Caribbean's largest island. Cubadebate, a state-run news outlet, reported that only 44 out of 106 Havana's rubbish trucks could continue to operate due to fuel shortages. This slowed down garbage collection. Residents sorted through the piles of cardboard boxes, plastic bottles, rags and used bags to find scraps that they could reuse, but motorists, pedestrians, and cyclists were forced to avoid the massive heaps. Jose Ramon Cruz, a local resident, said: "It is all over the place." It's been over 10 days since the last garbage truck. Residents in other towns of the island - which is home to 11 million people – took to social media to warn about the dangers to public health. Cuban government implemented rationing to protect the essential services of a country already facing severe shortages in food, fuel and medicines. In just two months, the country's oil supplies have dropped dramatically. Venezuela, once Cuba's largest supplier, stopped shipping shipments around mid-December. Mexico's government said that it was also halting its shipments following Washington's threat to impose tariffs on countries who send supplies Cuba. Last week, a Russian newspaper reported that Moscow is preparing to?send crude and fuel cargoes into the Communist-run Island in the near future? without giving a date. Since the 1960s the United States has had an embargo against Cuba. But in recent months, the administration of Donald Trump has stepped up its stance by sanctioning vessels that ship oil to Cuba, and threatening tariffs for suppliers. The government claims that the measures will force a "political shift in Cuba". The United Nations has voted in favor of the U.S. for a long time. Leaders from Mexico and Venezuela have said that blocking fuel would have serious humanitarian consequences. (Reporting and writing by Alien Fernandez, Mario Fuentes and Sarah Morland. Editing and reviewing by Dave Sherwood, Nick Zieminski and Nick Sherwood)
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Oil prices rise by 1% in advance of US-Iran nuclear negotiations
Prices of oil?increased on Monday, as?investors weighed up the implications of upcoming U.S. - Iran?talks aimed at deescalating tensions in light of the expected OPEC+ increase in supply. Brent crude futures closed 90 cents or 1.33% higher at $68.65 per barrel. U.S. West Texas Intermediate Crude was $63.75 per barrel at 2:14 pm EST (GMT 1914), up 86 cents or 1.37%. Due to the U.S. Presidents Day Holiday, there was no settlement of this contract on Monday. Tamas Varga is an analyst at PVM. He said that the fear of a disruption in supply due to tensions between Iran and the U.S. has helped stabilize oil prices. The looming Lunar New Year holidays, which are taking place in China, South Korea and Taiwan have also dampened the trade. Brent settled about 0.5% lower last week and WTI lost?1% after Donald Trump's comments that Washington might reach a deal with Tehran in the next month. Two countries will hold a second round of nuclear talks on Tuesday in Geneva. Iran's Foreign Minister met the Director of the International Atomic Energy Agency (IAEA), the U.N. Nuclear Watchdog on Monday in preparation for the talks with Washington. DIPLOMAT: IRAN WANTS BROAD ECONOMIC DEAL with U.S. A diplomat from Iran was quoted as saying Iran was pursuing a nuke agreement with the U.S. which would provide economic benefits to both parties. Energy and mining investments, and aircraft purchases are all on the table. U.S. officials said that if talks fail, they are preparing to launch a'sustained military campaign. Iran's Revolutionary Guards warned that they would retaliate if any strikes were made on Iranian soil. The Iranian Revolutionary Guards have warned that if there are strikes on Iranian territory, they could retaliate against any?U.S. Brent could reach $80 per barrel if tensions with Iran increase. In a recent note, SEB analysts stated that fading tensions would bring it back to $60 per barrel. While tensions between the United States and Iran are pushing up oil prices the Organization of the Petroleum Exporting Countries (OPEC+) is dampening 'them' by deciding at its March 1 meeting that they will resume production increases?from?April after a three month halt. The oil prices were also supported by China's strong crude imports as well as some disruptions to oil exports. Giovanni Staunovo is an oil analyst with UBS. According to ship tracking data and traders, China's imports will increase for the third consecutive month in February. This is after India cut its purchases due to U.S. pressure. (Shadia Nasralla in London and Enes Tunagur in New Delhi, Florence Tan in Singapore, and Mohi Nrayan in New Delhi contributed to this report; Andrei Khalip, Kevin Liffey, and Paul Simao edited it.)
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Nexperia receives $60 million loan from Invest International for boosting chip production
The Dutch state-owned financial institution Invest International will lend a total of $60 million to the chipmaker 'Nexperia, in order to finance a series of global investments at 'its production sites. The funds will be used to boost production, modernise the production lines and improve productivity. Nexperia in the Netherlands, a unit of China's Wingtech, was caught up in a corporate standoff with Europe after a Dutch state intervention installed an European management team last year. According to the Dutch newspaper FD, this move scared away investors and caused a global crisis in terms of chip supplies for the automotive industry. A spokesperson for FD confirmed that other financing discussions are in progress with Nexperia. The spokesperson stated that "it's not like?Nexperia has dire financial problems, but we are always grateful for any funding that can be tapped into to preserve our?reserves so that they can be used for other, ongoing activities." Nexperia couldn't be immediately reached for comment. A Dutch?court last week ordered an investigation into Nexperia's mismanagement. It allowed the European management to remain in place. (Reporting and editing by Jan Harvey; Charlotte Van Campenhout)
Leaders focus on renewables on UN sidelines
A coalition of some of the world's greatest business, finance homes and cities advised governments on Tuesday to embrace policies that they stated might let loose up $1 trillion in clean energy investments by 2030.
The group Mission 2025, backed by Britain's Energy Transitions Commission, said policies such as setting new capacity targets and offering tax credits or long-lasting electrical power agreements would increase the market's case for investment.
Nations are talking this week on the sidelines of the U.N. General Assembly. With international energy demand on the rise, countries will require to utilize more renewable energy in order to prevent burning more nonrenewable fuel sources.
Leaders from Kenya, Barbados, the European Union and other countries were set to discuss their countries' efforts to triple renewable resource capacity by 2030-- an essential promise made at last year's COP28 summit in Dubai.
Independently, U.S. President Joe Biden is set to address to the U.N. General Assembly for the last time as president, and a. separate occasion will discuss his administration's push for tidy. energy under the $360 billion Inflation and Decrease Act passed. in 2022.
What he will show is how the United States has changed the. playbook fundamentally-- not focused on the doom and gloom,. focused rather on the enormous financial opportunity, an opportunity to. construct U.S. manufacturing and infrastructure, and a chance to. build the American middle class, White Home National Environment. Advisor Ali Zaidi.
Sounding a rather hopeful note, the International Energy. Agency stated Tuesday that the objective of tripling tidy energy. capability was within reach-- but will require a huge effort to. unlock bottlenecks such as permitting and grid connections.
The company alerted that increasing renewables alone would not. lower energy prices or nonrenewable fuel source use without a collective push. to build and modernise 25 million kilometres of electrical energy. grids by 2030, along with some 1,500 GW of energy storage. capacity.
African leaders are especially nervous to discover ways for. growing their electrical power portolios, both to sustain advancement. and to reach numerous countless individuals who still have no. access to electricity at all.
The African Advancement Bank and World Bank presidents spoke. Monday about their job to broaden electrical power access to more. than 300 million people on the continent, for which the banks. were seeking $30 billion in personal sector investment.
You can not truly grow the worldwide economy without energy,. stated Africa Development Bank president Akinwumi Adesina, during. an event hosted Monday by the Global Energy Alliance for People. and Planet.
You can not industrialize in the dark..
(source: Reuters)