Latest News
-
EDF, France's EDF is looking for investors to finance its SMR project
The French utility EDF confirmed a media report on Thursday that it hopes to attract investors for its small-modular reactor subsidiary, Nuward, by the end 2026. While SMRs have not yet been mass-produced, dozens of companies are racing to get the technology on the market. The smaller reactors are said to be a cheaper and more flexible source of power that is low-carbon than conventional nuclear plants. EDF, the state-owned company that generates 70% of France's power with its fleet of 57 nuclear reactors, has scrapped its Nuward design because it was deemed too expensive and has redesigned this project. EDF's spokesperson said that the financing strategy is designed to bring European?customers? and industrial partners together to develop an initial batch of reactors suited to their specific needs. EDF wanted to finalise its conceptual design for the reactor by the end of 2026. It aimed to have 30 small reactors operational by 2050. Nuward's nuclear reactor was designed to provide industrial users with stable baseload electricity. It is expected to generate 400 megawatts and 115 MW. The first prototype was expected to be online by 2035. EDF planned to build a reactor every year until the company has completed four units in two countries. The Financial Times had reported on Thursday that EDF hoped to launch the Nuward SMR commercially in 2029. EDF has not provided any details on Nuward's value or the amount of capital that it plans to raise. China aims to start commercial SMR production this year. This puts it ahead of Western competitors. Westinghouse is developing a prototype in Darlington (Canada) that is the most advanced Western project. Reporting by Forrest Créllin. Mark Potter (Editing)
-
Shell profits more than double to $9.8 Billion, the second highest on record as Iran war raises prices
Shell's second-quarter net profit surpassed expectations by more than doubling from last year, reaching $9.84 billion. This was due to higher energy prices and increased market volatility caused by the Middle East conflict. The British major was able to offset lower sales volume due to disruptions in its Qatar operations by a combination of higher oil and gas prices and stronger LNG and oil trading. Shell's adjusted earnings (its measure of net profit) were expected to be $8.92 billion by analysts, compared to $4.26 billion the year before, according a consensus provided by the company. Shell has benefited by the disruptions in the market and the volatility caused by the U.S./Israeli war against Iran. This created more opportunities for large trading companies like Shell, BP, and TotalEnergies. Shell's refineries ran at 102% nameplate capacity to take advantage of the high fuel prices. This helped to increase jet?fuel production by a fifth compared to last year, according to Shell spokesperson. Shell shares gained 1.6% at 0821 GMT compared to a 0.4% gain in the European energy sector. HIGHEST PROFIT EVER SINCE 2022 The second highest profits in Shell's history were achieved during the first quarter of the year 2022 when the Russian invasion of Ukraine shook global energy markets. It reported its highest operating-cash flow, including movements of working capital, since 2022. It said that it would continue to buy back shares at a pace of $3 billion per month over the next 3 months. Shell's integrated business in gas, which includes the largest LNG trading desk in the world, has comfortably surpassed expectations with profits of $2.7 billion. This is 55% higher than last year, despite a 31% drop in gas production quarter-on-quarter. Shell's Chemicals and Products unit, which houses its oil product trading desk outperformed expectations as well, with a jump from $118 to $2.9 billion, a 55% increase. This is the highest quarterly profit for this division since 2021. Shell predicted third-quarter integrated production of 570,000-630,000 barrels equivalent per day, after 631,000 BOED in the previous quarter. LNG liquefaction volume was forecast to be 7.1 million to 7.7 millions tons, after 7.7 mt in the prior quarter. The company expects to produce upstream a total of 1.68 million to 1.88 millions boed. This is due to increased maintenance, after 1.82 million boed during the second quarter. Shell's Pearl plant, a gas-to liquids facility in Qatar, was forced to stop production in March following an attack that damaged one of the two trains. Shell said that repairs would take approximately a year. In the meantime, Shell's output in Canada, Nigeria, and Australia helped to make up for the capacity loss. Shell produces 550,000 barrels per day of oil equivalent in the Middle East, about 10% of which is linked to Qatar. Shell's net liability dropped from $52.6 billion to $41.8 billion by the end of first quarter 2026. Gearing, which is the debt-to equity ratio, including leases, dropped to 18.7%, from 23.2% in the last quarter. Brent crude prices were around $97 per barrel during the third quarter. Meanwhile, benchmark European gas prices were about EUR46 per Megawatt-hour. Both are up significantly from a year ago.
-
Singapore's oil products stocks fall to their lowest level since mid-June
Singapore's oil product inventories, Asia’s main fuel trading hub, continued to decline as both residual fuel and middle distilates inventories fell, according to government data released on Thursday. Enterprise Singapore's data shows that total?onshore?oil products stocks were around 37.95 millions barrels during the week ending July 29. This compares to 39.64million barrels one week earlier. The Middle East conflict has continued to engulf the oil and product markets. Shipping risks in both the Bab el-Mandeb Strait and the Hormuz Strait remain high in the short-term. This could lead to a reduction in global refinery 'runs' and production. MIDDLE DISTRILLATES, RESIDUAL FUEL FELT The Middle Distillates Inventory fell for the second week in a row, to its lowest level in over two months?of about 7.7 million barrels. The net exports of jet fuel, kerosene and gasoil increased by two to three times compared with a week ago. Inflows of diesel and gasoil cargo were mostly from South Korea and India, and exports went to New Zealand, Malaysia and Vietnam. Preliminary shiptracking data showed that India's July diesel loadings into Singapore were at their lowest level for five months. More shipments are expected to arrive in the West for now. Preliminary shiptracking data showed that more South Korea- and China's origin barrels will be arriving in the next couple of weeks. The data revealed that despite an increase in net imports the level of residual fuel oil inventories fell to a six week low. They were down 6.8% on a week-to-week basis at 18,13 million barrels (2,86 million tons). Total fuel oil imports increased 12.1%, to about 971 000 tons. Saudi Arabia was the largest supplier of fuel oil in the past week with imports totaling nearly 160,000 tonnes. The UAE came second at 90,000 ton. Total fuel oil exports to Singapore tanks dropped 57.4%, reaching about 150,000 tonnes. Bangladesh and Vietnam became the main destinations for?the week. Singapore's fuel markets remain steeply backwardated in the front months. This means that immediate prices are higher than future prices. LIGHTS?RISE The inventories of light distillate, including naphtha, gasoline and other liquids, increased to 12,084 million barrels for the first week in July after dropping for four consecutive weeks. This was due to the fact that imports of naphtha, which totaled 255,000 metric tonnes (2.3 millions barrels), far outweighed exports, which only amounted to 2,800 tons. Malaysia, with around 35,000 tonnes, was the second largest source of naphtha, after Russia. Singapore's gasoline imports totaled?about 194,000 tonnes (1.6million barrels), and exports reached?roughly 438,000 tons. This makes the city-state an?net exporter? of about 244,000 tons. Indonesia led the way with about 131,000 tonnes, followed by Australia with nearly 117,000. Taiwan led the gasoline inflows at almost 60,000 tons. Saudi Arabia was second at around 38,000 tons. (Reporting and editing by David Holmes, Trixie Yap, Jeslyn lerh and Mohi narayan)
-
Gold prices rise as the markets evaluate Fed rate stance and Middle East situation
Investors weighed the decision of the Federal Reserve to hold interest rates at the same level this month, as well as the rising tensions that are affecting the Middle East and have raised inflation concerns. The spot gold price was unchanged at $4,062.30 an ounce as of 0841 GMT. U.S. Gold Futures for August Delivery rose by 0.7% to $4,060.60. Kevin Warsh, the U.S. central bank's chief, pledged to keep inflation under control. After the decision, spot gold prices rose by about 2%. The U.S. Military said that it had struck dozens Islamic Revolutionary Guard Corps targets in Iran in response to Tehran's firing of ballistic missiles at U.S. soldiers in?Jordan, on Wednesday. Brent crude prices rose by more than $1 per barrel on Thursday. The higher oil prices are keeping the market expecting a Fed rate hike, which does not help gold, according to Giovanni Staunovo, an analyst at UBS. Staunovo said that to see gold rise, there must be an improvement in investment demand. This requires the market participants' expectations to be shifted towards rate reductions. The 'non-yielding' characteristic of bullion tends to reduce its appeal, despite it being a?hedge against inflation. According to the CME FedWatch Tool, traders are pricing in a probability of about 65% that the Fed will raise rates at its September meeting. Investors now await June U.S. Data on Personal Consumption Expenditures is due at 1230 GMT. The World Gold Council reported that India also saw an increase in unofficial inflows of gold since the government raised import tariffs earlier this year. Silver spot fell 0.03%, to 57.62 dollars per ounce. Platinum dropped 0.4%, to 1,605.20. Palladium rose by 1.8%, to $1268.56.
-
France, Spain, and Greece fight wildfires in Europe's heatwave
France, Spain, and Greece all faced major wildfires Thursday, as high temperatures, parched vegetation, and powerful winds continued a summer that saw deadly fires, massive evacuations, and mounting disruption throughout Europe. Spain battled a fire in the province of Castellon, while Greece fought fires on two fronts which killed three firefighters and forced residents and tourists to flee Crete. The wind can be so strong that you cannot stand it at times. "The flames were enormous, it was scary," said Chrissa GIOUKAK, a resident of Agia Galini on Crete's south coast, where tourists and locals sought shelter in an indoor gymnasium. EUROPE IS THE FASTEST WARMING Continent Emergency crews faced a summer of heatwaves, fires and a dry Europe. Wildfires are a record high in the EU, and they have already surpassed 2025's previous record. According to Climate Monitor, Thursday's temperatures in Europe showed that it was the continent farthest away from its historical norm. The average high temperature is expected to be 25 degrees Celsius (77.5 Fahrenheit), 3.6C higher than what was normal between 1961 and 1990. Authorities in southwest France said that the fires around Bordeaux did not spread over night, and the burned area remained at 42,000 ha. The local administration did not provide any further information, but said that two people had been arrested on suspicion of setting fires. French fires forced 220,000 people to flee their homes and forced holidaymakers and residents to leave. However, 60,000 of them have been allowed back. Officials said that thousands of businesses temporarily suspended their operations are gradually reopening. The conditions are expected to improve around Bordeaux, with a?possibility for thunderstorms, increased humidity, and temperatures lower than recent peaks. A heat alert remains in place in Gironde (the department in which Bordeaux is located), and the authorities have warned that the fires are not yet out. Meteo France's?latest bulletin warned on Wednesday that the greatest danger of wildfires is now in the Mediterranean and southeastern France. The number of wildfires in France has now exceeded any other year since 2006. GALE FORCE WINDS FAN FLAMES GREECE Two firefighters were killed after they became trapped in an ensuing fire in central Crete while driving between firefronts on Wednesday. A separate fire in Peloponnese caused the death of another. Residents and tourists from Krya Vrysi, and the surrounding villages were evacuated by sea or land as the wind blew the fire out. The situation is dire. Yiannis TARTARAKIS, the mayor of Agios Vassilios in a municipality which includes several villages affected by this disaster, said that it was tragic that two firefighters had died. Strong winds prevented the deployment of firefighting aircraft, said Tartarakis. Wind is one of the extreme weather phenomena that can be caused by intense heat from wildfires. New Fires as Spain Faces "EXTREME" Crisis Spanish Prime Minister Pedro Sanchez stated that the crisis facing the nation was "extreme", and at least 10 wildfires were causing concern. Sanchez said on Wednesday that the high temperatures, low humidities, and strong winds were all contributing to the fires. He said that, speaking from Mallorca, he had written to the European Commission President Ursula von der Leyen asking her to establish a new EU Wildfire-fighting Centre?for western Mediterranean on the Balearic Island. Authorities reported on Thursday that new wildfires had erupted amid the fourth heatwave this summer in the northwest Spanish provinces Zamora and Leon, while the fire in the eastern province of Castellon continued to spread. Three separate fires in north-central Leon have forced more than 300 people from their homes. Antonio Rodrigo told reporters in Castellon late on Wednesday night that the 82-kilometre-perimeter (51-miles) of the fire had been established, but it was not secure after flames destroyed more than 9,300 acres (23,000 hectares). Rodrigo said that the overnight operation, which involved 400 firefighters, was "critical" in determining whether the situation would be stabilized within 48 hours. The weather conditions were optimal, and efforts could continue without interruption until Thursday's heat.
-
Israeli strikes kill four Palestinians, including two children in Gaza amid new ceasefire
Health officials reported that Israeli strikes in the Gaza Strip killed at least four people on Thursday. Two of them were children. This occurred as'mediators' held new talks with Hamas to discuss full implementation of an American-brokered Gaza Peace Plan. A medic said that an Israeli airstrike in Khan Younis in the southern part of the enclave killed a woman and a girl aged eight. According to medics, in the Bureij Refugee Camp, located in central Gaza Strip an Israeli airstrike struck a house, killing an 18-month old child and wounding eight others. A Palestinian man riding a bicycle near a tent camp housing displaced families was targeted by an Israeli airstrike on Thursday. One person died and 10 were injured. The Israeli military claimed that the strikes were against Hamas militants without giving any further details. Gaza's health officials report that the latest deaths bring to more than 1,200 Palestinians killed by Israeli attacks, mainly civilians, since the ceasefire came into effect. Hamas doesn't usually reveal its losses. The ceasefire has stopped the full-scale combat but not Israel's near-daily strikes. Four Israeli soldiers were killed in Gaza by militants during the same time period. CAIRO TALKS Hamas leaders met in Cairo with mediators from Egypt and Qatar, to discuss the implementation of the second stage of President Donald Trump’s Gaza Plan, as presented by the Board of Peace that oversees the plan's implementation. The plan included a massive increase in humanitarian assistance, a civilian Palestinian government, Hamas disarmament, Israeli withdrawal from Gaza, and an international force deployed to maintain security. Progress has been stalled for the past few months. Hamas' official stated that the group would be coming up with a "positive" and good response. However, he didn't say if the group agreed to disarm fully, which has been a major sticking point during the last four months. Hamas demands that Israel end its attacks on Gaza and withdraw its forces. Hamas sources said that the group would "confine and store" heavy arms?under a Palestinian authority,?and not give them to Israel. Hamas has not commented on this. Israel and the Board of Peace have not confirmed whether they will accept the new Hamas position or the fate of personal or light weapons. The Board of Peace has declined to comment immediately on the Cairo negotiations. Israel wants Hamas disarm and cede all power in Gaza. Hamas disbanded a de-facto Gaza government in the last month, but kept a "caretaker" body that provided vital services to residents. Israel controls approximately 64% of Gaza's tiny coastal strip, which was bombed into ruins during Israel's two year military offensive that followed the 2023 Hamas attacks on southern Israel. Hamas controls Gaza, where nearly all its 2 million residents live in a tiny sliver on the coast. They are mostly living in tents, or in damaged buildings, and face dire living conditions. (Reporting and editing by Gareth Jones, Kate Mayberry, and Nidal al Mughrabi)
-
US 30-year yield reaches 2007 high; stocks try to recover after earnings
The long-term borrowing costs of the?U.S. The?U.S. government's long term borrowing costs reached their highest level since 2007. Global shares also staged a recovery after investors were reassured by?some encouraging earning signals. The yield on 30-year Treasury bonds hit a high of 5,239% on 'Thursday. It had previously broken above 5,2% the day before in New York after the Federal Reserve held interest rates. However, Chair Kevin Warsh sent mixed signals on the outlook for inflation and monetary policy. Traders were unable to predict the Fed's next moves, a problem made worse by Warsh's decision not to provide any forward guidance. Investors are frightened by the steep drops in some of the largest winners of the AI boom. South Korea's KOSPI dropped 1.23%, ending its third consecutive negative day. Sanjiv Tumkur is the head of equity analysis at Rathbones. Microsoft and Meta's earnings reinforced the idea that investors are looking for signs?that AI investment is paying off. Microsoft shares rose 7.97% in premarket trading after the tech giant said that it expected to continue generating cash until fiscal 2027. Meta shares, on the?other?hand, fell 8.47% after earnings that reflected its expensive AI bets. Analysts at Jefferies wrote that Microsoft has "hit the jet stream" while Meta is still building the runway. Futures tracking?The tech-heavy Nasdaq 100 gained 0.41% while S&P and Dow futures each gained 0.24%. The benchmark STOXX Europe 600 index rose by 0.48%. After two sessions of declines, the MSCI All Country World Price Index climbed 0.11%. GREY SKIES Ahead Investors are finding it difficult to assess the inflationary impact of higher oil prices, as renewed Middle East tensions have made it more complicated. Brent crude prices dropped last month, which helped to keep inflation in June under control. However, oil prices have since risen to over $92 per barrel. Three Fed policymakers spoke out in favor of a rate increase on Wednesday. This led some analysts to wonder if Warsh’s “good family fight” may be more difficult to navigate if inflation pressures persist. RBC Economics strategists wrote: "As Fed enters the second half, we expect it to be confronted with inflation as a constant issue." The central bank could use the rate hold to buy time until their next meeting in September. This would allow them to analyze two more inflation reports. According to CME FedWatch, the odds of an increase at the September meeting are now 65.2%. They were 57.3% just a week earlier. There are still questions about whether or not hikes will be useful. Brian Jacobsen, chief economist at Annex Wealth Management, said that it was foolish to raise rates when faced with a sudden supply shock and a surge in inflation. The main inflation threat is currently rooted in the prospect of a limited oil supply if the disruption in the Strait of Hormuz persists. The Bab el-Mandeb Strait is an important shipping route for oil flows around the world. The Houthis-backed Iranians have also attacked the alternative route through Bab el-Mandeb Strait, further worsening the situation. Reporting by Niket Nishant in Bengaluru, and Ankur Banerjee, Rae Wee, and Amanda Cooper in Singapore. Editing by Christian Schmollinger and Shri Navaratnam.
-
ArcelorMittal South Africa's losses increase as rescue talks continue
ArcelorMittal South Africa announced on Thursday that its?half-year loss had increased by a staggering?47%, as the 'business was weighed down by a sluggish steel price and a surge in steel imports mainly from China. The South African division of steelmaker ArcelorMittal reported a headline loss?1.489 billion Rand ($89.29 millions) for the six-month period ended June 30. The company had reported a loss of?1.014bn rand in the previous year. The company is battling a weak 'local demand', high electricity prices as well as competition from South African scrap metal recycling micro-mills as well as imports from China. ArcelorMittal South Africa confirmed that talks are continuing with the Industrial Development Corporation, a state-owned corporation. However, it declined to give any details about progress. It hasn't disclosed whether the transaction is a bailout package or an outright takeover. Last year, the company closed its long-steel plants to reduce?losses. The long steel operations provided rail, rods, and bars to the construction, manufacturing, mining, and manufacturing sectors, as well as the automotive industry.
Association says South Korean refiners are considering Venezuelan crude imports
An official of the Korea Petroleum Association stated that South Korea's refiners were considering importing Venezuelan crude to diversify their supply sources, as the conflict in the Middle East is disrupting shipments through the Strait of Hormuz.
GS Caltex is one of the country's largest refiners. In June, it imported 110,000 barrels from Venezuela to?test its quality. The association official confirmed a?local report.
Officials said that the refiner would assess whether or not the crude is suitable for their facilities, and evaluate product yields.
Officials said that the other 'three refiners - HD Hyundai Oilbank SK Innovation, and 'S-Oil - also 'weigh potential crude imports out of Venezuela.
Officials from the association said that refiners were looking to reduce their reliance on Middle East oil by focusing on competitive prices and stable supply.
The official said that they are also looking at alternative sources of oil, including Canada and Australia. However, U.S. shale is not an option due to the small size of each individual supplier.
South Korea began considering imports of Venezuelan goods after U.S. president Donald Trump called on oil companies to invest $100 billion into the nation and rebuild its energy sector.
Some U.S. Some?U.S. (Reporting and editing by Ed Davies. Heejin kim)
(source: Reuters)