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Moeve sells 25% of its offshore Suriname stake to TotalEnergies
By America Hernandez PARIS, 27 June - TotalEnergies announced on Friday that it had acquired from the Spanish company Moeve a 25% stake of Block 53 offshore Suriname. Financial details were not disclosed. The block is located adjacent to the Gran Morgu project, which Total invested in last October. It is estimated that this development will yield more than 700,000,000 barrels of recoverable oil. South America has not yet produced hydrocarbons but it has ambitions to follow in the footsteps of neighbouring Guyana where Exxon Mobil led a consortium that discovered over 11 billion barrels worth of recoverable oil. Total has announced that Block 53, which contains a discovery of oil and gas near Gran Morgu's border, will allow the project to expand. Moeve (formerly CEPSA), Spain's second-largest oil company, sold 70% of the assets it owned for oil production since 2022, as part of a plan worth 8 billion euros ($9.4 billion), to shift its focus toward low-carbon businesses. Houston-based APA operates Block 53 and owns 45% of the company, while Petronas holds 30%.
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Copper prices set to rise on the back of a weaker dollar and tariff concerns
London and Shanghai copper were set to post weekly gains on Friday. This was largely due to a declining U.S. Dollar and the persistent concern over potential U.S. Tariffs on Copper Imports. As of 0718 GMT the London Metal Exchange (LME), three-month copper fell 0.11%, to $9,889 per ton, after earlier reaching $9,917 – its highest level since March 27. The week's increase was 2.71%. Shanghai Futures Exchange copper increased 1.5%, to 79.920 yuan (11,148.93 dollars), after hitting 80.060 yuan or its highest level since March 31. The copper price was up 2% over the past week. Copper prices are being driven higher by topics that everyone is interested in, such as a weaker US dollar, the continued flow of copper from the LME to the U.S. on the possibility of a U.S. import tariff on copper, and concerns about supply shortages elsewhere. The dollar fluctuated on Friday and hovered near its lowest levels in 3-1/2 year against the euro, sterling, and other currencies as traders bet on further U.S. interest rate cuts, while waiting for trade agreements ahead of President Donald Trump’s July tariff deadline. The greenback is less expensive to buyers of other currencies. The LME Cash Copper Contract Premium over the Three-Month Contract The price of copper on the Comex rose to $1.403 per ton or its highest level since April 25, indicating a tightening supply in the near term. LME lead dropped 0.32% to a ton of $2,032, tin was down 0.28% at $33,655, aluminum fell 0.14% to 2,580 and nickel fell 0.06% to $16,200. SHFE Zinc was up by 1.15% at 22,410 yuan. Aluminium gained 0.98% at 20,580 yuan. Tin rose 0.73% at 268,550 yuan. Lead fell 0.46%, to 17,125. Click or to see the latest news in metals, and other related stories.
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China's Iran Oil Imports Surge in June due to a rise in shipments and teapot demand
Analysts said that China's imports of Iranian oil surged in June, as shipments increased before the recent conflict and the demand from independent refineries improved. According to data from ship-tracking firm Vortexa's, the world's largest oil importer, and biggest buyer, of Iranian crude, imported more than 1.8 millions barrels per day between June 1-20. This is a new record. Kpler data puts the average month-to date of China's Iranian condensate and oil imports to 1.46 million barrels per day as of June 27. This is up from 1 million barrels per day in May. Kpler data revealed that the rise in imports is partly due to the increased discharge of large volumes of Iranian crude oil into the water. In May, exports from Iran had reached an all-time high of 1,83 million bpd. It usually takes about a month for Iranian crude oil to reach Chinese port. Analysts Kpler and Vortexa said that China's Iran imports will likely remain high, given the large volumes of cargoes loaded in May and early-June. Xu Muyu is Kpler's senior analysts. He said that independent Chinese "teapots" refineries, which are the main buyers for Iranian oil, showed a strong demand for discount barrels, as their stockpile depleted. She added that a possible relaxation of President Donald Trump’s policy regarding Iranian oil sanctions would further boost Chinese purchases. Trump said that Washington had not abandoned its maximum pressure campaign against Iran, including restrictions on Iranian crude oil sales. However, he indicated a possible easing of enforcement in order to assist the country's rebuilding. Two traders with knowledge of the matter reported that Iranian Light crude oil is being traded this week at a discount of around $2 a barrel below ICE Brent, for deliveries between late July and early August. This compares to a previous discount of $3.30 to $3.50 a barrel for July deliveries. The traders said that the tightening of discounts was prompted by fears of oil flow disruptions through the Strait of Hormuz - a vital waterway connecting Iran and Oman. The market fears of a chokepoint closure had risen after the U.S. strike on Iranian nuclear sites last weekend, but they have eased since Iran and Israel announced a ceasefire on Tuesday. The decline in futures prices coincides with a tightening of discounts on Iranian oil. ICE Brent crude oil futures were hovering at $68 a barrel on Friday. This was their level prior to the Israel-Iran war and down 19% since Monday's peak.
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JSW expands its paint business with AkzoNobel India $1.6 billion deal
JSW Paints is buying the Indian division of Dutch paint maker AkzoNobel in a deal worth about 1.4 billion euro ($1.64 billion), excluding debt. The acquisition will expand its paints range amid increasing competition in India. The deal is made amid increasing challenges for Indian paint manufacturers, including volatile costs of raw materials, increased competition after Grasim Industries entered the market, and a weakening in urban spending. Data sourced from Dealogic, and seen by revealed that the transaction could be India's largest paint deal ever. After the announcement of the deal on Friday, shares of Akzo Nobel India rose more than 11%. However, they are still down around 1.4% for this year. Akzo Nobel (the maker of Dulux Paint) announced last year that it would review its South Asia operations in order to reduce costs and increase its core coatings business. The Dutch parent company, which is the fourth-largest in the world in terms of market capitalisation, behind PPG, Nippon Paint, and Sherwin-Williams will retain its Indian research and development centres and industrial coatings businesses. JSW Paints will purchase a 74.76% share in AkzoNobel India, a $23 billion company, for 89.86 Billion Rupees ($1.05 Billion) and make an open offer to the approximately 25% of public shareholders. Amit Purohit is senior vice president of Elara Capital. He says that while this acquisition presents JSW Paints with a significant opportunity to scale up, the near-term challenges in integrating could present an opportunity for existing players to improve their market position within the luxury segment. The deal is expected to close by the fourth quarter 2025, and Akzo Nobel will likely earn 900 million euro in net proceeds.
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Dollar struggles due to Fed concerns; Asia shares reach three-year high
Asia shares reached their highest level in over three years on Friday, as they followed a Wall Street rally. However, the U.S. Dollar struggled due to concerns about the Federal Reserve’s independence and the expectation of early rate cuts. The stock indexes around the world are expected to close the week in a positive manner, as worries over tensions in the Middle East along with uncertainty about tariffs and trade agreements have been put on hold for the time being. Early in the session MSCI's broadest Asia-Pacific share index outside Japan reached its highest level since Nov 2021, while the gauge for stocks around the world hit another record high. The DAX and EUROSTOXX50 futures both rose more than 0.5% while the FTSE Futures were barely changed. S&P 500 and Nasdaq Futures both gained 0.1%. The news that Washington and Beijing had reached an agreement on how to expedite the shipment of rare earths to the United States was one reason for the positive mood. U.S. Treasury secretary Scott Bessent said also on Thursday that after Washington reached an accord with the Group of Seven industrialized countries, he asked Republicans to remove Section 899 of their tax and spending bills. When that provision was adopted by the House, it made some investors nervous, particularly foreign investors. If that provision is removed, it will ease one of the fears of foreign investors, said Khoon Gh, ANZ's head of Asia Research. The positive developments that have been made in the market over the past few months are all contributing to this buoyant mood. Nikkei, the Japanese stock exchange, rose 1.4% to surpass the 40,000-mark for the first five-month period. Hong Kong stocks and mainland China's shares traded slightly lower. However, the CSI 300 was on course for a 2.6% weekly gain, the biggest since November 2024. FED CUTS COMING The Wall Street Journal reported on Friday that U.S. president Donald Trump was considering the possibility of announcing the replacement of Fed chair Jerome Powell by September or Oct. The dollar was further weakened as traders worried about the erosion of Fed's independence, and began to price in additional rate cuts for this year. The dollar was near its lowest level in three-and-a half years on Friday, and it was heading for a weekly loss of 1.4%. This would be the largest drop since over a month. The greenback has already fallen more than 10% for the year. If it continues to fall in the coming days, this will be the biggest half-year drop since the beginning of the free-floating currency era in the early 1970s. The euro, against a weaker US dollar, was at its highest level in more than three years. It stood at $1.1688. Last time, the pound bought $1.3725. "Trump's wish to'shadow,' the Fed by using a designated successor for Chair Jay Powell, isn't a great way to promote perceptions of autonomy and integrity in U.S. Policymaking, and, by extension that of reserve currency status of U.S. Dollar," said Thierry Witzman, global FX rates and FX strategist at Macquarie Group. The Fed's bets on a Fed cut have been strengthened by a series of U.S. data that were weaker than expected. Attention is now focused on the release of Friday's core PCE Price Index, the U.S. Central Bank's preferred inflation measure. The yields on U.S. Treasury bonds were unchanged in Asia, after a previous session that saw them fall. The two-year yield was at 3.7418% while the benchmark 10-year rate was at 4.2573%. Oil prices are set to decline by a week's end, as the ceasefire between Israel and Iran continues. This has eased concerns about Middle East supply. Brent crude futures rose 0.58% to $68.12 per barrel, while U.S. Crude rose 0.6% at $65.63 a barrel on Friday. However, both are headed for a drop of more than 10% in the coming week. Spot gold dropped 1% to $3.294.50 per ounce.
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The biggest weekly drop in oil prices since two years is expected as the war premium disappears
The oil price fell to its lowest weekly level since March 2023, Friday, due to the lack of supply disruption caused by the Iran-Israel conflict. Brent crude futures gained 35 cents or 0.52% to $68.08 a barge by 0429 GMT, while U.S. West Texas intermediate crude rose 40 cents or 0.61% to $65.64. Both contracts are now on track for a weekly decline of around 12%. The benchmarks have now returned to the level they were before Israel began the conflict on June 13 by firing missiles against Iranian military and nucleonic targets. Prices reached a five-month-high after the U.S. launched an attack on Iranian nuclear sites over the weekend. However, prices plummeted to their lowest level in more than a week when U.S. president Donald Trump announced a ceasefire between Iran and Israel. Traders and analysts say they do not see any material impact of the oil crisis at this time. Macquarie analysts said in a Thursday research note that, "absent the threat of significant disruption to supply, we still see oil as fundamentally undersupplied. Our 2025 balances indicate a surplus of approximately 2.1 million barrels a day (bpd)." Analysts expect WTI to be around $67 per barrel this year and about $60 next year. After factoring in the geopolitical premium, each forecast is raised by $2. Prices rose slightly in the second half of the week, as U.S. data revealed that crude oil and fuel stocks had fallen a week before. Demand and refining activities were also on the rise. The market is beginning to realize that crude oil stocks are extremely low, said Phil Flynn. Senior analyst at Price Futures Group. A Wall Street Journal article stating that Trump intended to select the next Federal Reserve Chief earlier than usual also supported prices. This fueled new bets that the U.S. would cut interest rates, which is what typically boosts demand for oil. Reporting by Siyi Liu and Nicole Jao, both in Singapore; editing by Tom Hogue and Christopher Cushing
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Sources say that Antofagasta's copper smelters have won a better than expected $0 TC/RC contract from China.
Four sources familiar with the matter said that Antofagasta, a Chilean miner, had agreed to a new record-low processing fee for copper concentrates. The fees will be $0 per ton of copper concentrate and $0 cents per pound. The low prices reflect the shortage of copper concentrate and are compared to the benchmarks for 2025, which were $21.25 per ton and 2.125cents per pound as agreed by the Chilean company with Chinese smelters. Two analysts and one smelter who spoke on the condition of anonymity said that it was "better than anticipated". Antofagasta didn't immediately respond to an outside office hour request for comment. Spot charges hover around $43 - meaning smelters will have to pay the copper miner for processing their concentrate. The contracts will still result in smelter losses, especially for China, which is the largest refiner and consumer of copper. These fees are the main source of income. Analysts, smelters, and traders all said that the new low would eventually force some smelters into cutting production. This year, the shortage of concentrates has increased as more smelter capacities are coming on line in China.
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The Financial Times reports that Britain's Centrica will take a 15% stake in the Sizewell C nuclear plant.
The Financial Times, citing sources familiar with the talks, reported that British Gas' owner Centrica was set to acquire a 15% stake at the Sizewell C nuclear plant in southeast England. The report stated that all sides were eager to make a final decision about the project's investment before the British Parliament recess, which begins on July 21. Could not confirm immediately the report. The government announced earlier this month that it would invest an additional 14.2 billion pounds (19.25 billion dollars) in the construction of the Sizewell C Nuclear Plant, bringing its total investment to 17.8 billion pounds. Britain wants to replace its aging nuclear fleet with new plants in order to improve its energy security and reach its climate goals, as well as create new jobs. The Financial Times reported that Canada's Brookfield Asset Management was still in discussions about investing in Sizewell C, and may be willing to take a bigger stake than Centrica. Sizewell C was initially being developed by France’s EDF and China’s General Nuclear Power Group, but the government purchased the Chinese firm’s stake in 2022 due to security concerns. EDF reported its financial results in February that the UK government held 83.8% of the company and EDF 16.2%. EDF's share is expected to decline following Britain's investment this month. Outside of regular business hours, Centrica Sizewell C or Brookfield Asset Management didn't immediately respond to requests for comments.
Europe's auto part suppliers suspend production due to China's restrictions on rare earths
As concerns grow about the impact of China's new restrictions on mineral exports, some European auto part plants have suspended production. BMW has also warned that its supply network is affected by a shortage of rare earths.
China's April decision to suspend the export of rare earths, magnets, and other related products has disrupted supply chains for automakers, aerospace companies, semiconductor firms, and military contractors all over the world. China is using this move to demonstrate its dominance in the mineral industry that is key to green energy and as leverage against the U.S. president Donald Trump. China produces 90% of all rare earths.
BMW, the German automaker, announced on Wednesday that a part of its supply network is affected by a shortage of rare earths but that its own factories are running normally.
The European auto supplier association CLEPA has warned that the shortage of rare earths is threatening manufacturing.
CLEPA said that only one quarter of the hundreds requests for export licences submitted by auto suppliers between April 1 and now have been granted. Some requests were rejected due to "highly formal" reasons, according to the association.
The warning did not name the companies, but it warned of future outages.
The process seems to differ from province to province, and IP-sensitive data has been requested in some cases, it stated. It added that if this was not done soon, then more plants could be affected as inventories run out in the coming weeks.
The curbs are not only a part of the broader package to retaliate against Washington's trade tariffs but they apply worldwide and are causing concern among business executives all over the world.
German and U.S. automobile manufacturers have complained about China's restrictions threatening production. This follows a similar complaint from an Indian electric vehicle maker last week.
Many people are lobbying for their governments to come up with a quick fix and scrambling to look for alternatives.
In an email, Wolfgang Weber said that some companies have only enough supplies to last for a few months or weeks.
He said that companies in China feel left out by the politicians, and they are looking to solve their problems on their own.
Swedish Autoliv, the largest maker of airbags in the world, has said that its operations have not been affected. However, CEO Mikael Bratta said he had set up a special task force to deal with the situation.
RELIANCE ON CHINA
Many automakers, including BMW, General Motors and ZF have been researching or developing motors that contain low-to-zero rare earths in an effort to reduce their dependence on China. However few have scaled production to lower costs.
BMW's latest electric car generation uses a motor that is magnet-free, but smaller motors like those powering windshield wipers and window rollers still require rare earths.
Volkswagen, the German automaker, has been informed that only a small number of Chinese export licences for rare earths have been issued to subcontractors. The company does not currently see any shortages.
Trump has focused his criticism on China's slow pace in easing its crucial mineral export controls. He claims that Beijing has violated the truce agreed last month for tariffs to be rolled back and trade restrictions to be lifted.
Trump is trying to redefine trade relations with China, the United States' largest economic rival. He has imposed steep tariffs on imported goods worth billions of dollars in an effort to narrow a deficit and bring back lost manufacturing.
Trump had imposed tariffs of up to 145% on China, only to reduce them after the stock, bond and forex markets sank due the the broad nature of the measures. China responded by imposing its own tariffs, and using its dominant position in supply chains to convince Trump to back off.
This week, Trump and Chinese President Xi Jinping will meet to discuss their differences. The export restrictions are likely to be a major topic of discussion.
In a post on social media, Trump stated that Xi was "VERY TOUGH AND EXTREMELY DIFFICULT TO MAKE A DEAL", highlighting how fragile the deal is. (Reporting from Victoria Waldersee, Marie Mannes and Hakan Ersen; Additional reporting from Hakan in Frankfurt; Writing Josephine Mason; Editing Emelia Sithole Matarise).
(source: Reuters)