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Oman confirms the next round of US and Iran nuclear talks amid fears about regional risks
The Omani Foreign Minister announced on Thursday that the sixth round of U.S. - Iran nuclear talks would be held in Muscat on Sunday, following Donald Trump's reiteration on Wednesday that Tehran will not be permitted to possess a nuclear device. Trump announced on Wednesday that U.S. personnel was being relocated from the Middle East, because it "could be a dangerous area". U.S. sources and Iraqi ones said that earlier, the U.S. prepared to evacuate its Iraqi Embassy and allow military dependents leave Middle East locations due to increased security risks. The four U.S. sources and two Iraqi ones did not specify what security concerns prompted this decision. The reports of a possible evacuation drove up oil prices more than 4%, before prices began to ease on Thursday. A senior Iraqi official in charge of operations at the southern oilfields said that foreign energy companies continued their normal operations. An official from the State Department of the United States confirmed that Bahrain and Kuwait had been authorized to leave on their own accord. The State Department updated their worldwide travel advisories on Wednesday evening in order to reflect the most recent U.S. position. The advisory stated that "on June 11, the Department of State issued an order to depart non-emergency U.S. Government personnel due the increased tensions in the region." The U.S. decision to evacuate personnel occurs at a time of high tension in the region. Trump's attempts to reach a deal on a nuclear weapon with Iran seem to have hit a deadlock. U.S. Intelligence indicates that Israel is preparing for an attack against Iran's nucleus facilities. Trump told reporters, "They're being moved because it could potentially be a dangerous area. We'll see what happens." "We have given notice to leave." When asked if anything could be done in order to lower temperatures in the area, Trump replied: "They cannot have a nuclear weapons." They can't possess a nuclear device. Trump has repeatedly warned to strike Iran should the stuttering nuclear talks fail. In an interview published earlier on Wednesday, Trump said that he was less confident in Tehran's willingness to agree to stop enriching Uranium. This is a major American demand. A senior Iranian official said to Press TV that the departure of U.S. military dependents did not pose a threat, even though it raised concerns over a possible regional escalate. Shipping Warning Iran's Defence Minister warned Washington on Wednesday that Tehran will strike U.S. bases in the region if nuclear talks fail and if it is drawn into war. The United States maintains a strong military presence in the oil-producing regions of the world, with bases located in Iraq, Kuwait and Qatar as well as Bahrain and the United Arab Emirates. A U.S. official confirmed that U.S. Secretary of Defense Pete Hegseth authorized the voluntary removal of military dependents across the Middle East. A second U.S. official confirmed that this was mainly relevant for family members based in Bahrain, where the majority of them reside. The British maritime agency warned on Wednesday that tensions in the Middle East could lead to a military activity escalation that would impact shipping along critical waterways. It warned vessels to exercise caution when travelling through the Gulf of Oman, Straits of Hormuz and Gulf of Oman, all of which border Iran. Since the beginning of the Gaza war in October 2023 tensions in Iraq have increased, as Iran-aligned groups have repeatedly attacked U.S. forces, although attacks have decreased since last year. Reporting by Daphne Psaledakis and Idrees Al, Humeyra Pauk, Steve Holland, and Jeff Mason in Washington; Michelle Nichols and Ahmed Rasheed in Baghdad; Parisa Hafezi and Timour Azhari, in Dubai; and Ahmed Elimam. Additional reporting by Sam Tabahriti and Aidan Lewis in London.
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The Gulf countries retreat over geopolitical issues
The major stock markets of the Gulf region fell on Thursday morning amid uncertainty over the U.S. move to remove personnel from the Middle East in advance of the nuclear talks with Iran. Donald Trump, the U.S. president, said that U.S. personnel was being removed from the Middle East on Wednesday because it "could be a dangerous area." He added that the United States wouldn't allow Iran to possess a nuclear device. According to U.S. sources and Iraqi ones, it was reported on Wednesday that due to increased security risks in the Middle East the U.S. will be preparing to evacuate its Iraqi Embassy and allow dependents of military personnel to leave certain locations throughout the Middle East. Saudi Arabia's benchmark stock index fell 1.3%, as all of its constituents were in the negative zone including Al Rajhi Bank which was down by 0.6%. Saudi Aramco, the oil giant, was among other losers. Its shares fell by 0.4%. The U.S. decision to evacuate personnel occurs at a time of high tension in the region. Trump's attempts to reach a deal on a nuclear weapon with Iran seem to have hit a deadlock. U.S. Intelligence indicates that Israel is preparing for an attack against Iran's nucleus facilities. Aziz Nasirzadeh, the Iranian Minister of Defence, said that on Wednesday if Iran were to be attacked it would respond by attacking U.S. bases located in the area. Dubai's main stock index fell 1.7% intraday, its largest fall since April. Losses across sectors were to blame, but the blue-chip developer Emaar Properties was at the forefront of this decline, with a 3% drop. ADNOC Gas' 2% drop in price caused the index to fall 1% in Abu Dhabi. The Qatari Index traded 0.8% lower with the petrochemical manufacturer Industries Qatar falling 1%.
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Sources say that RPT-Barrick Mining has removed the Mali gold complex production forecast for 2025.
Four sources have confirmed that Barrick Mining removed the Mali gold complex's output forecast from 2025. This is a result of a two-year dispute with West African authorities over new mining laws aimed at increasing revenue. The Loulo-Gounkoto complex, one the Canadian miner’s largest assets in Africa, has been closed since January. This is because the military-led government of Mali blocked gold exports, detained employees and seized 3 metric tons during separate negotiations for a new mining agreement with Barrick. Both sides are hoping to make at least $1 billion in revenue this year, thanks to the record-high gold prices. Barrick's shares are lagging behind those of its peers, and Mali is at risk of repelling investors. Sources spoke under condition of anonymity, as they weren't authorized to speak in public. Barrick's spokespersons and the Mali Mines Ministry did not respond immediately to requests for comment. Barrick's Mali production forecast has not been made public. Morningstar analysts, however, had predicted that Mali would contribute approximately 250,000 ounces by 2025. Jefferies reports that Mali, as a shareholder, requested a court to appoint an interim administrator in May. This would mean Barrick losing control of the mines, which accounted for 14% its total production. On Thursday, a court hearing is scheduled to be held on this matter. Parallel to the court case, negotiations are underway. Two people with knowledge of the situation said that Mali made a concession by allowing Barrick to repatriate 20 percent of its earnings to an international account. This was a concession not granted to any other foreign miner who had recently renegotiated their contracts with the government. Mali and Barrick still have a disagreement over the future handling of disputes. According to a source and a person familiar with the issue, Barrick believes that any new mining contracts should be covered by an international treaty. In the event of disputes in the future, they will be resolved through international arbitration. The threat of a temporary administration has investors worried, according to one source. Even though strong gold prices have helped Barrick increase its global revenue, a threat of a temporary administration is a concern, another source said. Barrick initiated international arbitration proceedings in December against Mali. In May, Barrick asked the World Bank arbitration court to stop court proceedings in Bamako due to provisional administration. Two people who were aware of this development said that the tribunal denied the request. The President of the Arbitration Tribunal for this case declined to comment. Barrick's revenues in the first nine-month period of 2024 were $949 million due to production in Mali. Jefferies estimated in a December report that Barrick's earnings for 2025 would be reduced by 11% if its Mali complex remained idle. This was before taxes, interest, depreciation and amortization. Mali, Africa's largest gold producer, is ranked third in the world. The Malian authorities who seized power through coups in 2020 and in 2021 say that their current Barrick agreement is unfair. The state has negotiated with other multinational miner companies. Last year, the chief executive of Australian mining company Resolute spent more than a full week in detention during negotiations. Reporting by Divyarajagopal from Toronto and PortiaCrowe in Dakar, Editing by Veronica Brown & Rod Nickel
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China removes decade-old rubbish from the park that inspired the sci-fi movie 'Avatar.'
China has removed 51 tonnes of rubbish from a scenic region in the south, famed for its craggy peak that was featured in Hollywood blockbuster Avatar. The removal came after social media videos showing ancient caves being used as a garbage dump went viral. Videos on Chinese social media showed that the caves of Hunan province in southern China were filled with rotting garbage piled up to seven to eight stories high. This led to an accumulation of sewage. The Zhangjiajie Park is a UNESCO World Heritage Site that inspired the scenery of James Cameron's 2009 sci fi film. On Sunday, Cili County officials posted on their official Wechat account that they had removed 51 tonnes of trash from the Datiankeng Caves and Yangjiapo Caves. Some of this garbage dated back to 2010 and 2016. They added that villagers had dumped their waste in the area after the local authorities banned incineration, and before they established a new service for waste collection and treatment. They said that four officials were suspended and 12 farms are being investigated for illegal discharges of waste water. The authorities have established a whistleblower system for reporting illegal waste disposal. The Cili officials, who live near the caves, claimed that the "prominent" environmental and ecological issues prompted them to take action against those responsible for the caves and their companies. (Reporting and editing by Farah master, Beijing newsroom)
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Oil prices drop as the market evaluates Middle East tension
Oil prices fell on Thursday, reversing gains earlier in the Asian session. Market participants analyzed a U.S. move to remove personnel from the Middle East before talks with Iran about its nuclear activities. Brent crude futures fell 30 cents or 0.4% to $69.47 a bar at 0433 GMT. U.S. West Texas Intermediate Crude was 23 cents or 0.3% lower at $67.92 a bar. Brent and WTI both rose more than 4% the day before, reaching their highest levels since early April. Donald Trump, the U.S. president, said that the U.S. is moving personnel to the Middle East because it "could become a dangerous area". He said that the United States will not allow Iran to possess a nuclear device. Iran claims its nuclear activities are peaceful. The increased tensions with Iran have raised the possibility of oil supply disruption. Both sides will meet on Sunday. The rise in Brent oil prices to above $70 per barrel is overdone. The U.S. did not identify any specific threats regarding an Iranian attack, said Vivek Dahar, director of Mining and Energy Commodities Research at Commonwealth Bank Australia. Dhar stated that the response from Iran depends only on U.S. escalated, He said: "A price pullback makes sense. But a geopolitical bonus that keeps Brent at $65 per barrel is likely to persist until more clarity about U.S. nuclear talks with Iran is revealed." U.S. sources and Iraqi ones reported that the U.S. was preparing to evacuate its Iraqi Embassy and allow dependents of military personnel to leave Middle East locations due to the increased security risks in the region. Iraq is the Organization of Petroleum Exporting Countries' second largest crude oil producer, after Saudi Arabia. A U.S. official confirmed that military dependents could also leave Bahrain. Kelvin Wong, senior market analyst at OANDA, says that prices have weakened after hitting key technical resistance levels in Wednesday's rally. Some market participants also bet on a reduction of tension following the U.S.Iran meeting scheduled for Sunday. Trump has said repeatedly that the U.S. will bomb Iran if both countries are unable to reach an agreement regarding Iran's nuclear activities, including uranium enrichment. Aziz Nasirzadeh, Iran's Minister for Defense on Wednesday, said that Iran would strike U.S. military bases in the area if negotiations fail or if the U.S. starts a conflict. Steve Witkoff, the U.S. Special Representative for Iran, plans to meet with Abbas Araghchi on Sunday in Oman to discuss Iran's reaction to a U.S. deal proposal. Analysts at ANZ say that despite Trump's statements, the chances of a deal disappearing are decreasing. Trump said he was less confident in his ability to convince Iran to cease its nuclear activities. The Energy Information Administration reported that U.S. crude oil inventories dropped 3.6 million barrels, to 432.4 millions barrels, last week. The analysts polled had predicted a drawdown of 2 million barrels. Reporting by Arathy S. Somasekhar, in Houston; Emily Chow, in Singapore. Editing by Sonali Paul & Christopher Cushing
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No relief for US-China Trade Trance
Johann M. Cherian gives us a look at what the future holds for European and global markets. The mood of European investors is set to change as a result of the rapidly increasing tensions in Middle East, and another tariff salvo by U.S. president Donald Trump. This has triggered a wave dollar selling and risk off moves. The U.S. and China talks, which were much hyped up, ended in a fragile truce. This may have temporarily quelled the simmering tensions on trade between the two largest economies of the world. However the investors are still uneasy due to the lack details. China's President Xi Jinping has not yet approved the 'deal.' Details on the new tariffs and how they will be implemented have yet to be worked out. Also, U.S. restrictions on exporting high-end artificial Intelligence chips remain in place. Trump has returned to his unilateral policymaking style as the deadline for worldwide tariffs on July 8 is fast approaching. He said that he will send letters to dozens of countries in one to two week outlining trade terms, which they can accept or reject. The markets will be looking for another TACO Moment. Companies are beginning to raise the alarm, even though inflation reports from the past do not reflect current price pressures. Inditex, Zara's owner, was the latest company to release a disappointing quarter report and warn of trade uncertainty. As if investors didn't have enough to deal with, geopolitical tensions are escalating in the Middle East, increasing the risk of inflation as crude prices rise. Brent and West Texas Intermediate futures reached two-month highs, each at nearly $70 per barrel. As my colleague Jamie McGeever has pointed out, the valuations of stocks and equities are starting to look stretched. This increases the risk to investors in case of a selloff. Futures in Europe were down by 0.7% while those in the U.S. point to a lower opening on Thursday. However, the benchmark indexes of the two regions are only 2% apart from their respective records highs. Investors continue to doubt the dollar's status as a safe-haven currency. The euro reached a seven-week peak on Thursday and has gained 11% in 2018. It is poised to make its largest annual gain since 2017. Next week's central bank bonanza could shed more light on global economic outlook. Next week, the U.S. Federal Reserve, the Bank of Japan, and the Bank of England will announce their policy decisions. Investors will also be watching for UK economic data, including the gross domestic product (GDP) and manufacturing output reports later that day. Both reports are expected to show a decrease in activity on an annual basis. This is due to the BoE’s cautious approach towards monetary policy ease. Thursday's key developments could give investors more guidance on the markets. - In UK: data on GDP, industrial production, manufacturing output, and trade In the U.S., data on producer inflation, initial weekly claims for unemployment and an auction of bonds for 30 years worth $22 billion - Policymakers including David Jacobs, Reserve Bank of Australia and Jose Luis Escriva of the ECB are expected to speak. - UniCredit CEO says Commerzbank is too expensive, and that there are few chances of a BPM deal. - Oracle raises annual forecast on robust cloud services demand Fitch downgrades Warner Bros credit rating to junk on the split-up
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Market awaits clarity about Sino-US trade talks progress
Iron ore futures were in a range on Thursday as investors awaited further details about the trade talks between China and the U.S., even though U.S. president Donald Trump made a positive statement. The September contract for iron ore on China's Dalian Commodity Exchange closed the morning trading 0.07% lower, at 705 Yuan ($98.16). As of 0400 GMT, the benchmark July iron ore traded on Singapore Exchange fell 0.53% to $84.6 per ton. Trump said on Wednesday that he was extremely happy with the trade deal which restored a fragile truce to the U.S. - China trade war. Beijing hasn't confirmed any progress in the trade negotiations. It would be a good thing if both countries were able to reach an agreement, as this would remove some uncertainty in the export industry, but it could also reduce the likelihood of Beijing introducing more stimuli. Ge Xin said that the focus has temporarily shifted from the deteriorating fundamentals to the Sino-US trade talks until there is greater clarity. Ge stated that "Steel production has declined for the past two weeks. This indicates a lower consumption of raw material, including iron ore." Coking coal and coke, which are both steelmaking ingredients, have also lost ground. They fell by 1.9% and 1.33% respectively. The Shanghai Futures Exchange saw a decline in most steel benchmarks. Rebar fell 0.8%, while hot-rolled coil, wire rod, and stainless steel all gained 0.76%. ($1 = 7.1818 Chinese Yuan Renminbi)
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Chartwell Marine to Design CTV for NR Marine Services
NR Marine Services has commissioned Chartwell Marine to design a new crew transfer vessel (CTV) in response to client requests for a new class of vessel capable of supporting older generation assets, now referred to as legacy turbines.Chartwell Marine has developed the Defiant Class vessel, a 20-meter CTV designed to Workboat Code Edition 3 with IMO Tier 3 compliance featuring a step free flush forward deck, superstructure and modern furnishings and materials used in larger CTVs.The Defiant Class comes in response to the need for a new class of smaller CTV required for legacy turbines.The vessel will retain flexibility to be tailored to different projects from a water jet propulsion system for shallow water sites and hybrid options where budgets allow to internal modularity to suit different racking and seating solutions. “It is always enjoyable bringing a new class of vessel to the market. What’s interesting in this case, is the vessel is based-on ‘legacy vessel’ parameters but with modern up-to-date experienced thinking.“With the Defiant Class, we are able to utilize our proven high efficiency, high seakeeping performance hull form, in a smaller, more dynamic cost-effective platform, appropriate for the legacy turbine projects the vessels are intended to support,” said Andy Page of Chartwell Marine.“NR Marine Services is excited to be the first to bring the brand-new Chartwell DEFIANT Class CTV to the market. With strong industry focus being on the HSOSC market space, the CTV development has been taken away from the smaller vessel market. “Working closely with Chartwell Marine and Diverse Marine we have looked at incorporating as many of the recent CTV developments a possible into a smaller package.“Following an internal fleet review long with external market research, the data shows that there is a potential to replace older tonnage which is between 10-15 years old for near shore projects which have a lifespan that warrants investment in new CTV’s,” added Richard Thurlow of NR Marine Services.
Tanure, a Brazilian businessman, has been courting banks since he hatched Braskem with Novonor.
Nelson Tanure, a Brazilian businessman, has started talks with banks to secure a deal for the petrochemical company Braskem. He hopes to close a deal by year's end and give Petrobras an increased role in its operations.
Braskem, Latin America's biggest petrochemical company, has been looking for a buyer since years. Novonor is the controlling shareholder and wants to get out of bankruptcy protection. It also wants to put an end to a massive corruption scandal.
Tanure is a new bidder trying break the deadlock between Novonor and the banks that hold Braskem shares in collateral, and Petrobras which is a key shareholder and supplier to the company.
Tanure, in his first public remarks since announcing his Braskem offer last month, said that he had begun courting the engineering group Novonor (formerly known as Odebrecht) after Abu Dhabi National Oil Company’s failed bid to purchase its Braskem share over a decade ago.
Tanure responded to questions by writing: "After Adnoc withdrew its offer, I started confidential discussions with Novonor in absolute secrecy."
Tanure stated that Novonor will remain a shareholder of the proposed deal. The latest proposal reduces its stake from 38.3% down to 3.5%. He added: "I wouldn't make an agreement without them remaining involved."
Tanure confirmed that the deal is still being discussed. Novonor confirmed that the talks took place in May but declined to comment further on details provided by Tanure.
In the decade prior to the scandal, Novonor had used its Braskem shares as collateral for bank loans totaling 15 billion reais (US$2.7 billion). As profit margins on petrochemical markets have fallen, the value of these shares has decreased and covers less than one quarter of this debt.
According to two sources familiar with the situation, despite Tanure's progress in Novonor, its creditor view his offer as sceptical, since they have other plans for Braskem.
Reports in November stated that the State Development Bank BNDES, along with other major banks, have proposed to pool the shares pledged for collateral into a Private Equity Fund. This fund would then make investments and turn around the company before selling its shares.
Aloizio Mercadante, President of BNDES, confirmed that talks were underway with Petrobras and the other banks at the time to resolve the dispute. The bank refused to comment on Tanure’s competing offer to Novonor.
Tanure said that "the success of this acquisition depends on alignment (with the banks)" but he rejected the notion that lenders control Braskem.
It's important that we clarify that these shares are still owned by the Novonor Group. The shares are pledged as collateral to the banks.
The Rio de Janeiro businessman has a history of investing in companies undergoing controversial restructuring. He is a major investor in the oil and power company Prio.
Tanure believes that Petrobras will have a greater role if he is able to close the deal with Braskem. Petrobras has a first right of refusal on Novonor’s stake, as per their shareholder agreement.
Tanure stated, "I think their presence (in Braskem's operations) is small and should be expanded." We must recognize that Petrobras' seniority in the oil industry and its management expertise are comparable to those of the world's best.
Petrobras declined comment. Last week, Petrobras CEO
Magda Chambriard said
Braskem is a great asset, but the current management "is not what we want." When asked by about Tanure’s offer, she replied: "We cannot do anything but applaud." We are looking for a solution.
Tanure stated that his goals for Braskem included transforming the Camacari Complex in Bahia into a center for sustainable innovation, "green" petrochemicals and lower emissions. Reporting by Luciana Magnalhaes Editing done by Brad Haynes Lisa Shumaker Nia Williams
(source: Reuters)