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Norway to Offer New Acreage Only for Floating Wind
Norway will not offer acreage suitable for bottom-fixed offshore wind farm development when it next announces new tenders, and will instead focus on floating wind options, it said on Monday.The government had previously said it would offer new areas in its North Sea bordering Denmark suitable for turbines fixed to the seabed, that may also connect to other countries via so-called hybrid cables."We believe that it is not the time to proceed with planning hybrid cables now," Energy Minister Terje Aasland said in a statement, citing high cost levels and the lack of a European framework for hybrid connections.A study by grid operator Statnett had shown that building out the area known as Soervest F would require government support regardless of whether the wind farms connected to Norway only or also other markets, he added.Aasland also said he was sceptical of further exposing the Norwegian power system to the challenges in other markets such as Germany.Instead, the government will prioritise floating offshore wind projects with single-point connections to Norway, the minister said.Norway, whose domestic power generation is dominated by cheap, abundant hydropower has some of the lowest electricity prices in Europe, but also saw an increase in the wake of the European energy crisis in 2022.A net exporter of power through subsea cables linking it with Germany, Britain, Denmark and the Netherlands, these connections have been blamed for lifting prices domestically.Last year, the country tendered its first offshore wind farm, Soerlige Nordsjoe II, located in the area now being scrapped for immediate further development.(Reuters - Reporting by Nora Buli, editing by Terje Solsvik)
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Reports of a rise in U.S. crude stocks cause oil prices to fall
The oil market edged lower on Wednesday, as an industry report revealed an increase in U.S. stockpiles of crude and worries about tariffs weighed on the sentiment. However, stronger refining margins tempered the market's decline. Brent futures dropped 25 cents or 0.3% to $76.75 per barrel at 0408 GMT. U.S. West Texas Intermediate crude fell 28 cents or 0.4% to $73.04 per barrel. Brent prices rose by 3.6%, while WTI climbed 3.7%. According to Tuesday's American Petroleum Institute data, sources citing the American Petroleum Institute, crude oil stocks in the U.S. grew by 9.4 millions barrels during the week ended February 7. API data shows that gasoline inventories dropped by 2,51 million barrels and distillate stock fell by 590 000 barrels. The Energy Information Administration will release data later on Wednesday. The EIA has increased its estimate of U.S. crude oil production, while keeping its demand forecast the same. The EIA now estimates that U.S. crude production will average 13,59 million barrels of oil per day by 2025. This is up from the previous estimate of 13,55 million bpd. Prices fell on fears that the multiple U.S. Tariffs enacted, or even threatened, could slow global economic growth. Overall, however, the price declines were limited by higher refining margins. LSEG data show that complex refining margins have clawed back the losses of January, averaging $3 a barrel in the last week. "Prompt margins in refineries are healthy and reverse the margin trend from last month. June Goh is a senior analyst with Sparta Commodities and she replied to the question: "There's a strong demand for refineries running hard, especially as we move into turnaround season in Northwest Europe and Asia." The macroeconomic outlook was dominated by traders awaiting the key U.S. Consumer Price Index data, which will be released on Wednesday at 1330 GMT. This will provide clues about the economic performance of the country and its potential impact on interest rate. Jerome Powell, the chair of the U.S. Federal Reserve, said on Tuesday that he was not in a hurry to cut interest rates further but would do so if there were inflation. Continued decline Or the job market has weakened. (Reporting and editing by Christian Schmollinger, Kate Mayberry and Colleen Waye)
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Aluminum prices fall amid Trump tariff fears
Aluminum prices dropped on Wednesday, amid fears of a global trade war following the 25% tariffs imposed by U.S. president Donald Trump on imports of steel and aluminum. The London Metal Exchange's (LME) three-month contract for aluminium fell 0.8%, to $2,624 per metric ton, as of 0340 GMT. This is down 1.3% compared to the three-week-high of $2,662.50, which was reached on Monday when tariffs announced. Morgan Stanley says that the tariffs on Monday will have the greatest impact on aluminum, which is used for transport, construction, and packaging. Net imports account for 82% of U.S. needs. Since February 7, the U.S. premium on aluminium over the benchmark global price at the London Metal Exchange jumped by a quarter to 35 cents a pound. It has also risen by 60% since Trump's re-election in November 2024. After Trump announced tariffs against U.S. imported goods, volatility in the aluminum market is expected remain high. We expect that the U.S. aluminum industries will struggle in the short-term to avoid tariffs, putting upward pressure for prices", ANZ Research stated. Trump has not yet imposed tariffs on the copper but he threatened duties last week, without providing any further details. The LME copper benchmark traded flat at $9361.5 per metric ton. The expectation of a copper tariff pushed the premium between U.S. Futures on Comex and the global benchmark LME to an all-time high on Monday. Lead increased by 0.2% at $1,983.5, while zinc gained 0.7%, reaching $2,840.5. Tin fell 0.2%, to $31,105. The aluminum contract at the Shanghai Futures Exchange shed 0.6%, reaching 20,560 Yuan ($2,813.20), its highest level since December 2024. The SHFE copper fell 0.6%, to 76800 yuan. Nickel dropped 1.2%, to 124070 yuan. Zinc was unchanged at 23,730, while lead fell 0.1%, to 17,130, and tin slipped 0.1%, to 257330 yuan. $1 = 7.3084 Chinese Yuan Renminbi (Reporting and editing by Rashmi Nandy and Sumana Naandy; Additional reporting and editing by Eric Onstad)
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MSCI removes Adani Green Energy from the key global index and adds Hyundai Motor India
MSCI has added one Indian company to its Global Standard Index late Tuesday, the carmaker Hyundai Motor India. Adani Green Energy was removed as part of the index revision for February 2025. Changes will be implemented at the close of the market on 28th February. MSCI's previous index reconstruction in November added five Indian companies to the global standard index. This increased India's weighting in the indicator that tracks emerging market countries from 17% to 20%. Overnight, the MSCI India Domestic Smallcap Index was rebalanced to include 20 Indian stocks, including Ola Electric Mobility and Sundaram Clayton, as well as Zaggle Prepaid Ocean Services. The MSCI Smallcap Index was reduced by 17 stocks. According to IIFL Capital the MSCI rejig may lead to an inflow of passive funds between $850 million and $1 billion to Indian markets. According to IIFL Capital, the weight of IndusInd Bank - a private lender that is already included in the global standard index - has increased. MSCI has added eight Chinese stocks and deleted 20 from the second largest economy in the world. As part of this review, 107 securities will be deleted and 23 added to the MSCI Global Standard Indexes.
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Iron ore prices rebound on fears of supply disruptions
Iron ore futures recovered on Wednesday as investors focused their attention back on concerns over possible supply disruptions by major producer Australia, and the prospects of growing consumer China. The new tariffs announced by President Donald Trump, which go into effect on March 12, have caused prices to fall by more than 1 percent. U.S. president Donald Trump significantly raised tariffs on imports of steel and aluminum on Monday, to a flat rate of 25% "without any exceptions or exclusions". This was done to help struggling industries in the U.S. while also risking a trade war on multiple fronts. As of 0247 GMT, the most traded May iron ore contract at China's Dalian Commodity Exchange gained 0.43%. It was now worth 824.5 Yuan ($112.83) per metric ton. As of 0308 GMT the benchmark March iron ore traded on the Singapore Exchange had risen 1.76%, to $107.75 per ton. This is the highest price since October 16, 2024. Investors' concerns about supply disruptions have been rekindled after Western Australia's Port Hedland - the world's largest export point for iron ore - will close at 6 pm (1000 GMT) because of tropical cyclone Zelia. This has boosted investor sentiment and lifted prices. Analysts said that the prices were supported by a growing demand and the weather conditions becoming more favorable for outdoor construction. CITIC Futures reported that hot metal production, which is typically used to gauge demand for iron ore, will increase steadily after the week-long Lunar New Year holiday in China. This is due to relatively good profitability. Coking coal and coke, which are both steelmaking components, also fell further on the DCE, by 0.62% each. The Shanghai Futures Exchange's steel benchmarks extended their losses. Rebar fell 0.42%, while hot-rolled coils eased 0.09%. Wire rod fell 0.28%, and stainless steel dropped 0.68%. ($1 = 7.3075 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
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Aluminum tariffs eased by Trump
The price of aluminium fell on Wednesday, amid fears of a global trade war after U.S. president Donald Trump imposed 25% tariffs on imports of steel and aluminum. As of 0219 GMT on Monday, the London Metal Exchange's (LME) three-month aluminium was down 0.6% at $2,627.5 per metric ton. This is down 1.3% compared to a high of $2.662.50, reached on Monday, when tariffs were announced. Morgan Stanley estimates that the biggest impact will be felt on aluminum, which is used for transport, construction, and packaging. Net imports account for 82% of U.S. needs. Since Trump's election, the U.S. premium on aluminium over the benchmark global price at the London Metal Exchange is up by 25%. The current rate of 35 cents a pound has risen by 60%. After Trump announced tariffs against US imports, volatility in the aluminum market is expected remain high. ANZ Research stated that the U.S. aluminum industries are expected to struggle in the short-term to avoid tariffs, putting upward pressures on prices. Trump has not yet imposed tariffs on the copper but he threatened duties last week, without providing any further details. The LME copper benchmark rose by 0.2%, to $9373.5 per metric ton. The expectation of a copper tarrif pushed the premium between U.S. Futures traded on Comex and the global benchmark at the London Metal Exchange up to a new record on Monday. Lead increased by 0.3% at $1,985.5, while zinc fell 0.9% to $2,838, and tin rose by 0.1% to $30,200. The aluminum contract at the Shanghai Futures Exchange fell by 0.5%, to 20,570 Yuan ($2,814.76) per ton. This is its highest level since early December. SHFE copper fell 0.4% to 76950 yuan. Nickel lost 0.8% at 124450 yuan. Zinc was flat at 23715 yuan. Lead shed 0.2% at 17,105 yuan. Tin was unchanged at 257,000 yuan.
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Gold's record rally is halted ahead of US inflation data
The gold price fell on Wednesday, after reaching a record high the previous day, as Federal Reserve chair Jerome Powell's hawkish comments cemented investors' views that rate cuts will be slower this year. Investors also awaited an important U.S. Inflation Report. Gold spot fell by 0.1% at $2,895.38 an ounce as of 0232 GMT, after reaching a record-high $2,942.70 per ounce on Tuesday. U.S. Gold Futures fell 0.4% to $2922.40. Powell stated on Tuesday that the economy was in a great place, and the Fed wasn't rushing into further interest rate cuts. However, the Fed would be willing to do so if inflation dropped or the job market weakened. Bullion is a good hedge against inflation. However, higher interest rates make it less attractive. Tim Waterer is the chief market analyst for KCM Trade. He said that there was a risk of gold falling if the core CPI data showed an increase. The U.S. Consumer Price Index report (CPI), due later that day at 1330 GMT, and the Producer Price Index data (PPI), scheduled for Thursday. Powell will also testify to Congress in the afternoon. Mexico, Canada, and the European Union condemned U.S. president Donald Trump's Tuesday decision to impose duties on all steel imports and aluminium next month. This has sparked fears of a global trade war, as investors prepare for further announcements. Waterer stated that "the bullish trend in gold remains intact due to the uncertainty surrounding tariffs and the safe-haven flows that could continue to underpin the precious metal." Silver spot was unchanged at $31.83, platinum remained at $983.15, and palladium rose 0.3% to $978.75. (Reporting and editing by Rashmi aich and Subhranshu Sahu in Bengaluru.
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Sources say that Eneos, a Japanese metals company, aims to raise $2.6 billion at the IPO of its metals unit.
Eneos Holdings aims to raise 400 billion yen (2.61 billion dollars) through the listing of its metals division, according to two sources. This would be Japan's biggest IPO for seven years. Sources who declined to be identified because the information was not public said that Eneos expected to receive approval from the Tokyo stock exchange for the initial public offer of JX Advanced Metals JXAM as early as this week. They said that the refiner intends to sell half its JXAM share in the IPO, and is aiming for a market valuation of at least 800 Billion Yen. This is the first time that the size of the IPO has been reported. Eneos has said that it will not comment on anything other than what it has already stated. Japan Exchange Group (which owns Tokyo Stock Exchange) said that it could not comment on specific companies. Eneos' shares rose 1% after the report, compared to a flat market in Japan. According to LSEG, JXAM would have outperformed Tokyo Metro's IPO last year and become the largest listing Japan has seen since SoftBank's Telecoms Unit went public late 2018. According to LSEG, 87 Japanese companies raised almost $6.2 billion in IPOs last year. This is the highest amount since 2021. Eneos filed a listing application for the metals division in October, as the refiner sought to optimize its portfolio and concentrate on areas of growth. JXAM, a leading manufacturer in sputtering target materials that are used to produce thin metal films for chip production. In the past financial year, the semiconductor materials segment of the unit contributed about a third to its operating income of 81 billion yen. JXAM invested in a plant in Arizona to manufacture sputtering target. $1 = 153.3700 Japanese yen (Reporting and editing by Muralikumar Aantharaman; Additional reporting and editing by Yuka Hirata and Noriyuki Hirata)
AGL Australia posts lower profits as concerns about cost of living curb price increases
AGL Energy, Australia's largest power producer, posted a decline in its half-year profits and lowered its earnings forecast on Tuesday as concerns about cost of living forced it to absorb the higher electricity costs instead of passing them on to consumers.
The underlying profit dropped 6.5%, to A$373 ($234.8) million in the six-month period ending December 31, 2024. However, it was still higher than analyst expectations of A$307 millions.
The statutory profit fell to A$97 from A$576 and consumer earnings dropped by a quarter to A$102.
Damien Nicks, the chief executive, said that earnings were in line with expectations and "strong". He narrowed his guidance for full-year profits to A$580m and A$710m, with a midpoint higher than previously.
AGL, along with Origin Energy and Energy Australia, is Australia's largest electricity retailer.
The "Big 3" have been accused of exploiting their power in the face of a rising cost of living. An inquiry conducted by the Australian Council of Trade Unions found that they had overcharged consumers last year.
AGL stated that the wholesale price of electricity in all Australian states was higher, but held back from passing on these increases because it was concerned about affordability. This caused margins for supplying energy to customers to drop 16.7%, to A$270 millions.
Nicks stated that "assisting our customers to cope with the cost of living pressures continues to be a priority."
AGL said that it also saw margins shrink as customers chose lower-priced electricity and gas plans.
The telecommunications division of the company has seen a strong increase in gross margins, which jumped 53.8% from A$20 to A$20.8 million. This is due to an increased number of broadband and mobile customers.
AGL reported that its total operating costs rose by 3.2% due to inflationary pressures as well as higher costs for maintaining its thermal power plants.
Profits were also affected by increased investment in renewables such as Firm Power and Terrain Solar.
AGL increased its investment in battery storage, including construction of the Liddell Batteries project, to A$667 Million.
The Sydney-based firm, which counts technology billionaire Mike CannonBrookes among its largest shareholders, declared a dividend interim of 23 Australian cents for each share, lower than the 26 Australian Cents declared last year.
AGL shares were up by 2% early in trading, despite the ASX swinging between red and blue territory. Reporting by Christine Chen, Sameer Manekar, Rajasik Mukherjee and Shilpa Majumdar in Bengaluru. Editing by Shilpa Majumdar and Stephen Coates.
(source: Reuters)