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The Lindsey refinery in Britain will close after no buyer is found
Michael Shanks, the Energy Minister of Britain, said that no buyer had been found for Britain's Lindsey insolvent oil refinery. After its owner Prax went bankrupt at the end last month, the refinery was handed over to an official receiver. Shanks stated that "after a thorough evaluation to determine if a sale is possible, there have not been any credible offers to buy the refinery and it will wind down operations." Lindsey, one of the five remaining refineries in Britain with a daily capacity of 113,000 barallons, is one of only five refineries left. FTI Consulting is the special manager of the refinery during the insolvency procedure. It employs about 420 people. Shanks condemned the "untenable situation in which the owners have left Prax Lindsey Oil Refinery" and called for the refinery's owners to "do what is decent and publicly commit themselves to make a voluntary financial commitment to support the workers". Prax, headed by Sanjeev Soosaipillai as Chairman and CEO, was not available for immediate comment. After the announcement of insolvency, fuel deliveries were resumed by the refinery. It had been able secure crude supplies that prevented immediate closure. All direct employees at the refinery will be guaranteed employment in the next few months, according to the energy minister. He said that the official receiver continues to seek buyers for individual assets within the Prax Group. (Reporting and editing by Tomasz Janowski, Jan Harvey, and Robert Harvey)
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Alteia, a French AI company, will be acquired by GE Vernova for the purpose of enhancing AI tools in utilities
GE Vernova, a maker of power equipment, announced on Monday that it would buy Alteia in France, a company that makes artificial intelligence tools for utility companies. GE Vernova offers Alteia software through GridOS Visual Intelligence. The tool allows utilities to assess damage along electrical lines and inspect assets. GE Vernova stated that the acquisition would enhance the system by providing visual and operational data. This will allow the companies to “see and feel” the grid. The financial terms of the purchase, which is expected on August 1, were not disclosed by the company. Christopher Dendrinos, an analyst at RBC Capital Markets, said that GE Vernova had highlighted the fact that growth could accelerate in its electrification-software segment, which includes GridOS. He said that the segment has grown at single-digit percentage rates over the last two years. GE Vernova has seen its stock rise since it was spun-off from General Electric in 2017. The surge in power demand for data centers that use AI and cryptocurrency technologies is a major factor. This year, the power demand will be at an all-time peak. The company will release its second quarter earnings report before the bell on July 23, 2018. (Reporting and editing by Sahal Muhammad in Bengaluru, with Sumit Saha from Bengaluru)
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Due to repairs, Nornickel has cut its nickel and palladium production forecast for 2025.
Russia's Nornickel, one of world's biggest nickel producers, and the largest palladium producer, lowered Monday its 2025 nickel forecast to 196,000-204,000 tons. The previous guidance was 204,000-211,000 tonnes. The company has also revised down its palladium production forecast, expecting now between 2.677-2.729 million pounds compared to the previous 2.704-2.756,000 pounds. In a press release, Nornickel Senior Vice President Alexander Popov stated that "a series of major repairs are scheduled for the second part of the year in order to improve the reliability and operation of new mining equipment substituted by imports." The forecasts for nickel, copper and platinum group metals are virtually unchanged compared to the previous forecasts. The copper production is forecast to be between 343,000 and 355,000 tons instead of the previous range of 353,000-373,000. Nornickel has also released its operational results for the second quarter. The nickel production was 45,000 metric tonnes, an increase of 9% on the previous year, while palladium production reached 658,000 ounces. This is a 11% decrease. (Reporting and writing by Anastasia Lyrchikova; editing by Mark Trevelyan).
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As dollar and yields are easing, gold gains more than 1%.
Gold prices rose over 1% Monday, as the dollar and U.S. bonds yields fell amid uncertainty about trade talks in advance of an August 1 deadline for U.S. countries to reach agreements or face additional tariffs. At 9:52 ET (1350 GMT), spot gold rose 1.2% to $3,390.79 an ounce. U.S. Gold Futures rose 1.3% to $3.402.40. The U.S. Dollar Index was down by 0.4%. This made dollar-denominated Gold more affordable to buyers who use other currencies. Meanwhile, benchmark yields on 10-year U.S. Treasury notes hit a record low. David Meger is director of metals futures at High Ridge Futures. According to EU diplomats, the European Union is looking at a wider range of counter-measures that could be taken against the United States as prospects for a trade agreement acceptable with Washington are fading. According to the CME FedWatch tool, traders have priced in a 63% probability of a rate reduction in September. U.S. Treasury secretary Scott Bessent stated that the Federal Reserve as an institution needed to be examined and whether or not it was successful. Meger says that speculation about a rate cut earlier than expected in the U.S. is increasing, and that speculations around a possible Fed Chair Jerome Powell replacement or reshaping the Fed are adding to market anxiety. Gold is a hedge for uncertainty, and it tends to do well in an environment with low interest rates. China, the largest gold consumer in the world, imported 63 metric tonnes of the precious metal during the month of June, the lowest since January. In June, its imports of the precious metal fell by 6.1% compared to the previous month. Silver spot gained 1.8%, to $38.86 an ounce. Platinum rose 2.2%, to $1,453.17, and palladium rose 3.5%, to $1,284.46. Reporting by Sherin E. Varghese in Bengaluru and Ashitha S. Shivaprasad, Editing by Mark Potter
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New EU Russia curbs could increase Indian oil refiners’ reliance on traders
After the latest round European Union sanctions, Indian private refiners who have used cheap Russian crude in order to boost their margins will need to find ways to work around it and depend more on traders for finding new markets for products. In recent years, refiners like Reliance Industries or Nayara Energy have benefitted from the pressure that sanctions imposed on Russia's crude oil prices due to its invasion in Ukraine. Many of these refiners have exported their refined products to European buyers. In its 18th package against Russia, which was approved on Friday by the European Union, it banned imports from third-country refiners of petroleum products derived from Russian crude, except for a few Western nations. The sanctions also target Nayara Energy (a Russian refinery owned by Rosneft), a major oil company in Russia. The package will be implemented over a six-month period. In the first seven month of this year, LSEG data on ship tracking showed that Reliance was India's biggest buyer of Russian oil products and refined products. It shipped 2.83 million barrels per month of diesel fuel and 1.5 million barrels per month of jet fuel to Europe. This accounted for roughly 30% and 60% respectively of its exports of both products. Nayara Energy exports 4 million barrels of refined products per month including jet fuel, diesel, gasoline, and naphtha, but only jet fuel is typically shipped to European markets. Sources said that under the sanctions, traders will likely play a larger role in the placement of refined products made with Russian crude. They will likely get creative in their routes due to the long transition period. Singapore traders have said that traders will likely swap Indian diesel with Middle East cargoes to export to Europe. The traders said that they may also send Indian cargos to floating storage in the Middle East and West Africa for re-export. They said that Indian refiners could either divert jet fuel cargoes into local markets or ship supplies in Asia. Reliance and Nayara didn't immediately respond to comments. A trader in Asia said that the changes would benefit traders, as they will generate more trade, but be costly to producers and consumers. He added that Europe may be forced to pay more for refined fuel as winter approaches. Nayara condemned in a Monday statement the EU’s “unjust and unilateral” decision to impose sanction on the company. India, on the other hand, said that it did not support "unilateral" sanctions by the EU. Refining sources say that Indian refiners who also purchase Russian crude are less likely to be affected by sanctions, as they sell the majority of their fuel locally, and export it through tenders to buyers mainly in Asia, such as Singapore. Mangalore Refinery and Petrochemicals Ltd, an Indian state refinery, said that the latest sanctions would not affect the diesel exports of the company. LSEG reports that traders have sold some of MRPL’s diesel parcels to the UK in recent months. "We do not directly sell diesel to our end customers." The trader picks it up after a tendering procedure," said M Shyamprasad Kamath, managing director of M Shyamprasad Kamath. He added that he doesn't see any problems with selling refined fuels because of the sanctions. A tender document obtained by revealed that Nayara Energy, in response to the EU sanctions, amended the terms of the naphtha bid issued on Monday, requiring payment in advance.
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Wimbledon expansion plans cleared by UK court following challenge
Wimbledon's plans for expanding the grounds of the oldest and most prestigious Grand Slam Tennis Tournament in the world overcame their first legal hurdle Monday. The London High Court dismissed a challenge by campaigners to the project. Save Wimbledon Park, a campaign group, has taken legal action against the All England Lawn Tennis and Croquet Club. The AELTC wants to triple the size of the main site with a project worth 200 million pounds ($269.6 million). The expansion will feature 39 new courts including an 8,000 seat show court. This could increase the daily capacity from 42,000 people to 50,000 and allow for qualifying rounds to take place on site. Novak Djokovic and local residents have backed the AELTC’s plans to develop an old golf course that it owns. The Greater London Authority approved planning permission last year. However, Save Wimbledon Park claimed at an hearing held this month that GLA did not properly account for restrictions on the redevelopment of the land agreed upon when AELTC’s parent company purchased the freehold golf course in 1993. Save Wimbledon Park was unsuccessful in its challenge of the legality of the planning permission. However, Wimbledon's plans will still have to overcome a second legal hurdle regarding the status of land. This case is scheduled for hearing early next year. AELTC Chair Debbie Jevans expressed her delight at the ruling and said that the club would "now turn its attention to separate legal actions" regarding the former golf course property. Save Wimbledon Park's director Christopher Coombe announced that the group would appeal Monday’s decision. He said it would set a "worrying precedent" for the development of public open space and protected greenbelt.
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Russia-backed Indian refiner condemns EU restrictions, weighs legal options
Nayara Energy, a Russian-backed refiner in India, condemned Monday the European Union sanctions against it and said that it was exploring its legal options to combat the latest "restrictive" measures. The EU approved Friday its 18th package against Russia for its war in Ukraine. This includes sanctions on Nayara Energy - a refinery owned by Rosneft, the Russian oil giant. In a press release, it stated that "Nayara Energy condemns strongly the European Union’s unjustified and unilateral decision to impose restrictions on our company." Rosneft owns 49.13% of Nayara, and a similar amount is held by Kesani Enterprises Co Ltd., a consortium led by Italy's Mareterra Group, and Russian investment group United Capital Partners. Nayara asserted that the EU's latest sanctions were "without legal basis". The company has invested more than 800 billion rupees (about $8 billion) in projects such as petrochemicals, and expanding its retail fuel stations. It said: "We categorically declare that this unilateral action by the European Union rests on baseless claims, and represents an unwarranted extension of authority which ignores international law as well as the sovereignty of India." India has stated that it does not support the "unilateral sanction" of the EU.
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Brazil admits that it is possible there will be no US-Brazil trade deal before August 1
Brazil's Finance Minister said on Monday that his country will not give up on negotiations with the U.S., but acknowledged that it may not be possible to reach a deal by August 1, which is when President Donald Trump’s tariffs of 50% on Brazilian products are set to come into effect. Fernando Haddad, in an interview with CBN radio station, said that Latin America's biggest economy is still waiting for a response from Washington to trade proposals originally submitted in May. Trump announced the steep tariffs in early this month. He cited what he called "a witch hunt" against Jair Bolsonaro - a former Brazilian president who is currently on trial for plotting a coup - and unfair trade practices. Haddad said Brazil has contingency plans for dealing with potential tariffs and that it could redirect more than half of its current U.S. imports to other markets. He warned, "But it would take some time." U.S. officials claim that the threat of tariffs is unjustified because the U.S. has a surplus in trade with Brazil. This includes oil, steel, coffee, aircraft, and orange juice. Trump's decision would have a major impact on companies such as Embraer which has the U.S. market as its primary market. Haddad stated that the Brazilian government might need to support sectors most affected by tariffs but stressed such measures wouldn't necessarily result in higher primary spending. Haddad said on Monday that Brazil will not punish U.S. firms operating in Brazil if the tariffs are implemented as promised. The minister stated that "we cannot pay in kind what we consider unfair." (Reporting and editing by Sharon Singleton and Bernadettebaum; Dale Hudson, Sharon Singleton and Bernardo Caram)
Russell: Asia's refined oil imports fall, but margins are still strong
In April, Asia's imports for key refined fuels like gasoline and diesel dropped to their lowest level in four years. This was due to refinery maintenance as well as a weaker demand from the region that is the largest importer.
According to commodity analysts Kpler, the total imports of light distillates and middle distillates in April were 166.37 millions barrels, down from March's 195.54 and the lowest since April 2020.
The sharp fall in imports for April was due to a decline in shipments by key exporters of refined goods.
Kpler reports that India, which is the top fuel exporter in the region, saw its exports of middle and light distillates plummet to a 30 month low of 29,2 million barrels, down from 42,66 million barrels exported in March.
China, with the largest refinery capacity in Asia, saw its exports for light and middle distillates fall to 17,4 million barrels per day in April. This is down from 21.5 millions in March, and it's the lowest amount on a daily basis since December.
Singapore, the Asian trading hub and refining center for crude oil and products, saw its exports of light and middle distillates drop to a 7-month low in April, from 26,15 million barrels in March.
In India, for example, refineries are undergoing maintenance.
There are signs of weakness in other fuel exporters. China's refinery production was largely flat compared to the same period last year, which limits export volumes.
Asia's imports for the first four-month period of 2025 totaled 746.73 millions barrels, a decline of 11.6% compared to the same period of 2024.
The decline in sales would suggest that profit margins of refiners are under pressure, as they compete to gain market share.
This hasn't yet happened. The margins for a typical Singapore refinery processing Dubai crude are still too high.
Fuel Margin
The price of crude oil, which is the intermediate distillate used to make diesel and jet fuel, has fallen faster than gasoline and gasoil.
Brent crude futures, the global benchmark, have fallen 20% since their peak on January 15, when they reached $82.63 per barrel. They closed at $66.09 on Wednesday.
However Singapore gasoline
This is an indication that the supply of refined fuel into Asia has been restricted, allowing refiners maintain margins despite falling crude oil prices.
The trade war that Donald Trump has launched is likely to have a negative impact on the economic growth of Asia.
The overall picture remains that U.S. tariffs on imports will likely end up significantly higher than before Trump took office.
Even if successful trade agreements are negotiated, Asia’s exporters will still face higher costs and a more difficult market access in the United States.
The trade war poses a further threat to the oil product market, as Indonesia, Asia's largest fuel importer, has indicated that it might buy more from the U.S. in exchange for a deal.
Indonesian Energy Minister Bahlil Lahadalia stated on May 9th that Southeast Asian nation Indonesia may move as much as 60% of their fuel purchases from Singapore to the United States.
The proposal to increase fuel imports to the U.S. from Indonesia is part of an overall proposal to Washington that addresses the tariffs. Jakarta has also indicated its desire to boost U.S. imports of energy by around $10 billion.
Indonesia imports 14 million barrels per month of light and middle distillates, and switching to buy the bulk from America would disrupt regional flow of refined products.
Alternative markets would be required in Europe, Africa, and Latin America. This would increase costs and reduce profits.
These are the views of the columnist, an author for.
(source: Reuters)