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Guyana Set to Sign Oil Exploration Deal with TotalEnergies-Led Group
Guyana expects to soon sign an oil production-sharing agreement with a consortium led by France's TotalEnergies that will allow it to explore an offshore area, Energy Minister Vickram Bharrat told Reuters.Guyana is the world's fastest-growing oil-producing country and is on course to reach capacity of 940,000 barrels per day this year - nearly 1% of global supply - up from an output of 616,000 bpd last year.A consortium led by U.S. major Exxon Mobil produces all Guyana's oil. The government, which has sought to diversify the sector, awarded TotalEnergies's consortium the block in an auction in 2023.As well as the agreement with TotalEnergies, at least three other contracts for exploration blocks awarded in that auction should be signed this year, Bharrat said in an interview with Reuters on the sidelines of an industry conference in the capital Georgetown on Wednesday.Guyana is also exploring options to reoffer an offshore block where a consortium by Toronto-listed Frontera Energy and CGX Energy made oil discoveries, Bharrat said.The Corentyne block was seen as the likely next area for development after Exxon's success at the Stabroek block, where more than 11 billion barrels of recoverable oil and gas resources have been found.Frontera and CGX's license on Corentyne has expired, according to the government, which did not approve the consortium's application to extend the license last year.Earlier this month, the consortium said the government notified them of the license cancellation. The firms have sent a letter disputing the cancellation to the government, Bharrat said, which means the case could go to court."We have been very lenient with CGX, very helpful to them like we are with any company investing in Guyana, but there's a limit too," Bharrat said."There's only so much we can bend... without breaking our laws. And there was no legal ground for me to extend (the license)," he added.Frontera and CGX discovered light oil and condensate in Corentyne in 2022 and 2023, but failed to complete an appraisal of the block in 2024.In 2023, Frontera said the company was looking for investors to help finance development of the project. The company has yet to disclose any partners."It's both a capacity and a financial problem," the minister said when asked about the consortium's struggles to complete the mandatory exploration program. Delays in the delivery of drilling equipment contributed, he added.Frontera and CGX did not immediately reply to a request for comment.The government could open a bidding round to reoffer the block or negotiate directly with interested parties, Bharrat said."Once it's completely cleared, I think there will be a lot of companies interested in it," he said.Corentyne could still be developed fairly soon, he said, but the Exxon group would continue to dominate Guyana's oil industry in the coming years.Contracts To ComeThe government and the Exxon consortium have yet to agree terms for exploring another area the group won in the 2023 auction, he added.The consortium and the government recently reached an agreement on a portion of Stabroek to be returned to the government this year, Bharrat said. The areas are scattered across the block, however, so they might need to be delimited again to be reoffered in the future, he added.The government is forecasting average oil output of 675,000 bpd this year versus 616,000 bpd in 2024. Guyana expects to receive one or two cargoes this year as a share of oil produced at Exxon's fourth floating output facility, which is expected to begin production in the third quarter, the minister said.(Reuters - Reporting by Marianna Parraga and Kemol King; Editing by Simon Webb and Nia Williams)
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ExxonMobil’s Esso, Mitsui and Woodside to Invest $200M in Gas Project Off Australia
ExxonMobil’s Australian subsidiary Esso Australia Resources and its partners have announced a nearly $200 million investment in the Kipper 1B project which will bring online additional gas supply from the Gippsland Basin.The project, which was approved by Esso Australia, and its co-venturers, MEPAU A (Mitsui), and Woodside Energy, will utilize the Valaris' jack-up rig VALARIS 107 to drill and install one subsea well into the Kipper field, and involve significant upgrades to the West Tuna platform.Drilling into the Kipper field is set to begin later this year, with upgrades to the West Tuna platform happening simultaneously.The project is expected to expand capacity from the Kipper field, delivering crucial gas supplies to the market ahead of winter 2026.Kipper 1B follows the successful completion of the recent Kipper Compression Project, and the West Barracouta project that came online in 2021.“Esso Australia continues to invest in multiple projects that ensure our Gippsland operations sustain gas production well into the 2030s.“Projects like Kipper 1B are vital to help meet the country’s energy security needs by bringing new supply online, which will be used exclusively for Australia’s domestic market, said ExxonMobil Australia Chair Simon Younger.Esso operates assets in Bass Strait that form part of the Gippsland Basin joint venture between Esso and Woodside, and the Kipper Unit Joint Venture, with Esso, Woodside, and Mitsui as partners.
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Strong refining margins and concerns about supply from Iran sanctions have led to oil gains.
The price of oil rose for the second consecutive day on Tuesday, as new U.S. sanction imposed against Middle Eastern producer Iran raised concerns about a possible tightening in supply and global refining margins were strong. Brent crude futures were up 38 cents or 0.5% to $75.16 per barrel at 0401 GMT. U.S. West Texas Intermediate Crude Futures rose 47 cents or 0.7% to $71.17 per barrel. Both contracts rose in the Monday session following a $2 decline last Friday. "In the near term, I still think crude oil will be looking for a new base." "The new U.S. sanction announced against Iran overnight, as well as the Iraqi Oil Minister's commitment to rein in its oversupply will likely help with this," said IG Market Analyst Tony Sycamore. On Monday, the U.S. imposed new sanctions against more than 30 brokers and tanker operators as well as shipping companies who were involved in transporting Iranian crude oil. Donald Trump said that he wanted to reduce Iran's crude oil exports to zero. According to a report on OPEC's output, Iran was the third largest producer, with 3.2 million barrels of oil per day, in January. Some analysts claim that the strength of fuel demand in Western countries is currently also supporting oil markets. Sparta Commodities analyst Neil Crosby said in a recent note that the global refining margins were looking strong, with fuel oil and distillates crack in particular benefiting from heating oil demand due to the cold snap in the U.S. Gulf Coast region and Northwest Europe. LSEG data shows that margins for a typical Singapore refinery processing Dubai benchmark crude have averaged $3.5 a barrel in February, compared to $2.3 a barrel last month. The uncertain outlook for demand has capped the gains. Donald Trump, the U.S. president, said Monday that tariffs on Canadian and Mexican imports are scheduled to begin on March 4, "on time and in schedule", despite efforts made by both trading partners to address Trump’s concerns regarding border security and fentanyl. Analysts believe the tariffs will have a negative impact on global oil demand. In Europe, Ukraine welcomed European leaders for the three-year anniversary to mark Moscow's invasion. U.S. officials, however, stayed away as a symbol of President Trump’s closer relationship with Russia. Markets have viewed Trump’s warming relationship with Moscow as an indication of a possible easing in sanctions against Russia, which could add to the global oil supply. "While there is hope for an end to the Ukraine war, I don’t think it's likely under the conditions that Russia and the U.S. want and without widespread European support," said IG's sycamore. She added the conflict could be supportive for the oil markets in near-term. (Reporting and editing by Christian Schmollinger, Shri Navaratnam).
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London copper prices fall on stronger dollar and tariff risks
London copper prices fell on Tuesday due to a stronger dollar, and worries about metal demand after President Donald Trump announced his tariff plans. As of 0359 GMT, the price for three-month copper at the London Metal Exchange was $9,467.5 per metric ton. The dollar gained after it fell to its lowest level in over two months at the beginning of the week. This was boosted by flows into safe-haven assets after Trump announced that tariffs against Mexico and Canada will proceed as planned. The dollar is stronger, and therefore the prices of commodities in U.S. dollars are higher for foreign buyers. Trump said that tariffs on Canadians and Mexicans imports were "on schedule and on time" despite efforts made by both countries in order to improve border security and reduce the flow of fentanyl entering the U.S. before the deadline of March 4. Benchmark Mineral Intelligence stated in a report that "Markets will continue to navigate a geopolitical landscape and macroeconomic environment which is becoming increasingly complex." Separately, the markets are closely monitoring any developments in advance of the implementation 25% tariffs for Canada and Mexico on March 5. China's Two Sessions Policymakers' Meeting is set to begin next week. This could shed light on China’s stimulus policy and response to Trump’s trade policy." Other metals include LME aluminium, which fell 0.9% to 2,633, LME Zinc, which dropped 0.6% to 2,833.5, Nickel, down 0.4% at $15,380; Tin, down 0.03% at $33,235; and Lead, up 0.08% to 1,986.5. The price of SHFE aluminium dropped 1.2%, to 20,490 Chinese yuan ($2,823.99) per ton. SHFE copper fell 0.3%, to 77.060 yuan. Zinc dropped 1.5%, to 23,660 yuan. Nickel dipped by 0.5%, to 124.680 yuan. Lead rose 0.2%, to 17,145 yuan. Tin declined 0.8%, to 263,540. $1 = 7.2557 Chinese Yuan (Reporting and editing by Sherry Jacobi-Phillips, Subhranshu Shau)
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Sources say that RPT-Indian gold imports in February will hit a 20-year-low due to record-high prices.
India's gold exports will drop by 85% from the previous year in February, to their lowest level in 20 years. The demand for the precious metal has been sapped by record high prices, according to a government official, and three bank dealers. Reduced gold imports may help India reduce its trade deficit, and could also support the rupee, which is currently trading at a record low against the US dollar. India is the second largest consumer of gold in the world. "Banks, jewellers and other businesses have cleared very little gold through customs this month." We are unlikely to see an improvement in import numbers unless prices crash within the next two to three days," said a government representative who refused to be identified as he wasn't authorised to speak to the media. On Monday, spot gold prices reached a new record of $2.956.15 an ounce. The official said that India's gold imports are expected to drop to 15 metric tonnes in February. This is the lowest monthly figure for at least 20 years, down from 103 tons of gold in February, 2020. India imported an average of 76.5 tonnes of gold per month in the last decade. The price spike killed demand and we were stuck using the gold that we bought in January. "There's no point in importing any more gold in February," said the head of the bullion division at a bank that imports gold in Mumbai. Last week, the price of 10 grams of gold in India reached a new record high. A Mumbai-based dealer in bullion said that at least two Indian banks had moved gold stored in a duty-free zone to the U.S. because the Indian market was trading below par. He said that when the U.S. offers a nearly 1% premium on gold, it makes no sense to sell in India at a discount of $35 per ounce. A bullion dealer in Kolkata said that the sharp decline in imports in February was an unusual occurrence for the jewellery sector, since the wedding season in India is still ongoing. Normally, demand increases during this time. In India, weddings are the main reason for gold purchases. Bullion in the form jewellery is a key part of brides' attire and is a common gift given by family members and guests. (Reporting and editing by Christina Fincher; Reporting by Rajendra Jhadhav)
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Iron ore prices fall on the back of a recovery in shipments and duties on Chinese steel
The price of iron ore futures fell on Tuesday due to a rebound in iron ore exports, as well as increased taxes and laws on Chinese steel imports. As of 0246 GMT, the most traded May iron ore contract at China's Dalian Commodity Exchange was trading 1.14% lower. It was priced at 821.5 Yuan ($113.27). The benchmark March ore price on the Singapore Exchange fell by 1.49% to $106.75 per ton. A group of bipartisan lawmakers has introduced a bill to address the issue of Chinese-supported firms moving parts of their production overseas to avoid American duties. This legislation will also strengthen anti-dumping regulations. According to the U.S. government, China is the main source of excess steel production in the world, despite only exporting a small amount of steel to it. According to a document from the trade ministry, Vietnam will also impose a temporary antidumping levy against some steel products imported from China. The U.S. announced tariffs of 25% on all steel imported earlier this month. South Korea imposed tariffs provisionally on Chinese steel imports the previous week. Analysts at ANZ stated that "Iron Ore Prices were also Lower, as Data showed a Pick-up in Supply which weakened Support for the Steelmaking Raw Material." According to Chinese consultancy Mysteel, the total volume of iron-ore shipped from companies in Australia, Brazil and other countries under Mysteel's tracking program ended a slump of two weeks and recovered to 25,8 million tons on February 23. This is doubling from week to week. Coking coal and coke, which are used to make steel, also lost ground. They fell by 1.89% and 1.90%, respectively. The benchmark steel prices on the Shanghai Futures Exchange fell. Rebar fell 1.29%; hot-rolled coils and wire rods were both down around 1% while stainless steel dropped 0.11%. $1 = 7.2527 Chinese Yuan (Reporting and editing by Rashmi aich; Michele Pek)
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Prices of oil rise for the second day in a row as US sanctions against Iran increase supply concerns
Oil prices increased for the second day in a row on Tuesday, as new sanctions were imposed by the United States on Middle Eastern oil producer Iran. This raised concerns about a possible shortage of supply. Brent crude futures were up 38 cents or 0.51% to $75.16 per barrel at 0217 GMT. U.S. West Texas Intermediate Crude Futures rose 43 cents or 0.61% to $71.13 per barrel. After a drop of $2 on Friday, both contracts rose in the session Monday. Tony Sycamore said that WTI was looking for a support area between $65-$70 per barrel. "As long as it remains above this level, there will be a return to normalcy." On Monday, the U.S. imposed new sanctions against more than 30 brokers and tanker operators as well as shipping companies who were involved in the transport of Iranian oil. Donald Trump said that he wanted to reduce Iran's crude oil exports to zero. According to a report on OPEC's output, Iran was the third largest producer, with 3.2 million barrels of oil per day, in January. The uncertain outlook for demand capped gains. Donald Trump, the U.S. president, said Monday that the tariffs on Canadian and Mexican imports are scheduled to begin on March 4, and they will be "on schedule and on time" despite attempts by both trading partners to address Trump’s concerns regarding border security and fentanyl. Analysts believe the tariffs will have a negative impact on global oil demand. In Europe, Ukraine welcomed European leaders for the three-year anniversary to mark Moscow's invasion. U.S. officials, however, stayed away as a symbol of President Trump’s closer relationship with Russia. Markets have interpreted Trump's warming relationship with Moscow as an indication of a possible easing of sanctions against Russia, which could add to the global oil supply. (Reporting and editing by Christian Schmollinger; Colleen howe)
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Argentina relaxes transit regulations along key grain transport river
The Argentinean security minister announced on Monday that the country has loosened the safety regulations for shipments travelling on a river, which is a major grain transport corridor. This move could increase cargo transported through the waterway up to 7%. The Parana-Paraguay river will be able carry more cargo now, said Security Minister Patricia Bullrich on social media site X. She added that it would increase efficiency and lower costs without compromising safety. Argentina is the top exporter in the world of soy oil, flour and corn. It's also a major supplier of wheat. Over 80% of Argentina's agricultural products are transported along the river. In recent weeks, the government has refocused on the Parana River after a scandal involving an auction for maintenance contracts was halted and scrapped after only one company entered the bid. Bullrich stated that "clear rules, predictability, and firm decisions will guarantee a competitive waterway." The Rosario Grains Exchange referred to the change in regulation as "important progress" towards improving efficiency of agricultural exports. The decision of the prefecture to implement the new security measures is welcomed by Gustavo Idigoras the president of Argentina's CIARA CEC grains export chamber. He added that the measure will have "concrete effects" on loading and navigation. He added that it was now more important than ever to continue with the waterway-auction process to benefit from this change. The National Ports Chamber did not respond immediately to a request for comment. After the investigation into possible sabotage of the auction is completed, a new tender will be issued for the contract. The Belgian dredger DEME Group was the sole bidder in the first round. DEME claimed it didn't know why other firms did not bid, but the government is investigating possible "pressure" DEME could have put on its competitors. DEME said, however, that the tender was biased against Jan de Nul. The current concession holder. (Reporting and writing by Maximilian Heath, Kylie Madry, Lincoln Feast, Christian Schmollinger and Natalia Siniawski)
London copper prices fall on stronger dollar and tariff risks
London copper prices fell on Tuesday due to a stronger dollar, and worries about metal demand after President Donald Trump announced his tariff plans.
As of 0208 GMT, the price for three-month copper at the London Metal Exchange was $9,464 per metric ton.
After falling to its lowest level in over two months at the beginning of the week, the dollar gained strength, thanks to safe-haven flows following Trump's announcement that tariffs against Mexico and Canada will proceed as planned.
The dollar is stronger, and therefore the prices of commodities in U.S. dollars are higher for foreign buyers.
Trump claimed that tariffs were "on schedule and on time" for Canadian and Mexican imports, despite efforts made by both countries in order to improve border security and reduce the flow of fentanyl entering the U.S. before the deadline of March 4.
Benchmark Mineral Intelligence stated in a report that "Markets will continue to navigate a geopolitical landscape and macroeconomic environment which is becoming increasingly complex."
Separately, the markets are closely monitoring any developments in advance of the implementation 25% tariffs for Canada and Mexico on March 5. China's Two Sessions Policymakers' Meeting is set to begin next week. This could shed light on China’s stimulus policy path and response to Trump’s trade policy," the report said.
Nickel fell by 0.3% at $15,395, while tin dropped by 0.3% at $33,145. Lead rose 0.1% to $1989.5.
SHFE aluminium fell 1.2% to 20480 yuan (2,822.03 dollars) a ton. SHFE copper dropped 0.3% at 77,000, zinc slipped 1.7% to 23610, nickel declined 0.7% to 124,510, and lead rose 0.3% to 17155 yuan. Tin eased by 0.9% to 263,260.
(source: Reuters)