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Palm oil prices end lower than Chicago soyoil amid concerns about economic headwind
Malaysian palm futures closed lower on Monday as they tracked the weakness of rival soyoil on the Chicago market. Meanwhile, escalating U.S. - China trade tensions despite a suspension of tariffs for other countries also weighed down sentiment. At the close, the benchmark June palm-oil contract traded on the Bursa Derivatives Exchange in Malaysia lost 42 ringgit or 1% to 4,170 Ringgit ($945.58) per metric ton. Darren Lim is a commodities analyst at Singapore-based Phillip Nova. He said that despite the U.S. tariff suspension of 90 days, the broader economic headwinds, and lingering uncertainty, have continued to limit any meaningful upside. He added that the downward pressure this morning indicates traders are still unsure about the impact of the suspension on the market in the long term. Dalian's palm oil contract, which is the most active contract, lost 0.21%. Prices of soyoil on the Chicago Board of Trade fell by 0.34%. As palm oil competes to gain a share in the global vegetable oil market, it tracks price changes of competing edible oils. A trade group said that India's imports of palm oil in March increased by 14% compared to the previous month, reaching 424,599 tonnes. AmSpec Agri Malaysia, an independent inspection company, reported that exports of Malaysian products containing palm oil for the period April 1-10 increased by 52.8%, to 301.113 tons. According to Intertek Testing Services, cargo surveyor, it increased by 29.3%, to 323,160 tonnes. The oil prices rose on Monday, boosted by U.S. exemptions from some tariffs as well as Chinese data that showed a sharp rise in crude imports during March. However, gains were limited due to concerns about the potential impact of the U.S.-China trade war on global economic growth. Palm oil is a slightly more attractive feedstock for biodiesel due to the stronger crude futures. The palm ringgit's trade currency strengthened by 0.23% compared to the U.S. Dollar, increasing the price of the commodity for foreign buyers. ($1 = 4.410 ringgit). (Reporting and editing by Rashmi aich; Dewi Kurniawati)
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The UK approves the appointment of British Steel's interim CEO and CCO
British Steel announced on Monday that it had approved the appointment of two long-term employees as interim chief executive officer and chief commercial officers, following the weekend's passage of legislation giving the government control. Britain passed a bill of emergency on Saturday, after the government reported that the owners of British Steel, China's Jingye Group, wanted to close the furnaces at Scunthorpe after refusing a government financing proposal. British Steel announced on Monday that Allan Bell has been appointed interim CEO of the Scunthorpe Plant, and Lisa Coulson who worked there for 19 years will be acting as interim Chief Commercial Officer. British Steel confirmed that the minister had approved all of the appointments. Bell stated in a press release that "our sole focus is to ensure a sustainable and secure future for British Steel production in Scunthorpe." Our immediate priorities include securing raw materials to continue our blast furnace operations. We also need to ensure that we have dedicated personnel to operate those furnaces and maintain the highest level of health and safety amongst our workforce.
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Gold drops from a record high, but still holds above $3200 due to tariff fears
Gold prices dropped from their record highs on Monday, after U.S. president Donald Trump excluded smartphones, computers, and other electronic devices from his tariffs. However, the uncertainty surrounding tariff plans kept gold prices above $3,200 an ounce, which is a significant level. As of 0852 GMT, spot gold fell 0.4%, to $3,222.49 per ounce. Bullion reached a record-high of $3,245.42 in the morning. U.S. Gold Futures dropped 0.2% to $3.238.50. The market sentiment improved this morning, after President Trump exempted electronics and smartphones from US Tariffs. "This has partially caused a drop in gold prices due to profit taking," said Zain Vwda, a MarketPulse analyst. Gold has traditionally been viewed as an investment that can protect against economic and geopolitical uncertainty. On Friday, the White House announced that smart phones and computers would not be subject to China's steep tariffs. Trump announced on Sunday that he will announce the tariff rate for imported semiconductors in the coming week. Vawda said that any drop in the gold price is likely to be only temporary. Gold is a safe haven asset that continues to be in demand, as a US-China agreement seems unlikely. Vawda also added that the falling US dollar is a factor in gold's appeal. Dollar-priced gold is now cheaper for foreign buyers. Gold's rally has continued, with a rise of over 23% this year. It surpassed the $3,200 barrier for the first-time on Friday. Bullion's price has been boosted by several factors including the economic uncertainty caused by Trump's tariff plans and central bank demand. Goldman Sachs has increased its year-end gold forecast to $3,700, citing stronger-than-expected central bank demand and heightened recession risks impacting ETF inflows. Spot silver remained at $32.27 per ounce while platinum gained 1% to $952.10. Palladium rose 2.2% to $935.38. (Reporting and editing by Shashesh Kuber in Bengaluru, Anmol Choubey from Bengaluru)
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BP discovers new oil off US Gulf Coast
By Sheila Dang BP, a UK-based oil company, announced on Monday that it had made a discovery of oil in the Far South Field in the U.S. Gulf of Mexico. The exploration well was located in Green Canyon Block 584, about 120 miles from the coast of Louisiana. The company stated in a release that both the original well and the sidetrack found oil. Preliminary data indicated a potential commercial volume of gas and oil. BP announced a radical shift in strategy in February, reducing planned investments in renewable energy to refocus its efforts on oil and natural gas production. By 2030, the company plans to increase production in Gulf of Mexico from 400,000 barrels of equivalent oil per day to 400,000 boepd. By the end of this decade, global production will reach 2.3 to 2.5 million barrels of oil equivalent per day (boepd). BP operates Far South, with a 57.5% share. Chevron has a 42.5% stake. BP plans to do more exploration of the ocean basin. It has approved the development of Kaskida, a complex geological formation called the Paleogene. The company plans to move forward with the second Paleogene project, Tiber.
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Spot prices drop on wind supply
On Monday, the strong gains in wind energy supply across the region put downward pressure on spot prices as they offset the growing demand and reduced solar power supply. LSEG data shows that the German baseload electricity for Tuesday at 0845 GMT was 67.50 Euros ($76.83). The French power of the day was 18.25 Euros/MWh. The prices were lower than the closing values of 103.75 and 68 euros, respectively, last Monday. Both contracts were traded on Friday, but for delivery Monday. Riccardo Paraviero, LSEG analyst, said: "Wind surges (again) on Tuesday painting a firmly negative outlook for German electricity prices." The wind generation will be strong during the morning and then decrease in the evening. He added that the strong growth will completely offset the rise in demand and decrease in solar supply. LSEG data indicated that the German wind output is expected to increase by 16.7 gigawatts to 22.1 GW while French output will rise by 5.9 GW up to 8 GW. LSEG data indicated that the German solar generation is expected to drop by 1.4 GW to 12.1 GW on February 2. On Tuesday, power consumption in Germany will increase by 1.9 GW up to 55.1 GW. In France, demand is expected to rise by 1.4 GW up to 43.4 GW. The French nuclear capacity increased by three percentage points to 74% as three reactors were brought back online. The German baseload power for the year ahead rose by 0.6%, to 81.20 Euros/MWh. In France, it was between 61.25 and 62.15 Euros. The benchmark carbon contract in Europe was up 1.7% to 65.89 euro per metric tonne. ($1 = 0.8786 euro) (Reporting and editing by Shailesh Kumar)
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Trade war worries persist despite oil rising on the back of China's rebounding imports
The oil prices rose on Monday, after Chinese data revealed a sharp rise in crude imports for March. However, concerns about the impact of the trade war between China and the United States on global economic growth weighed. Brent crude futures rose 6 cents or 0.09% to $64.82 per barrel at 0632 GMT. U.S. West Texas Intermediate Crude Futures were trading at $60.59 a barrel. This is up 9 cents or 0.15%. Data released on Monday showed that China's crude imports rose sharply in March compared to the previous two month and nearly 5% compared to a year ago. The increase was attributed to a rise in Iranian oil as well as a rebound in Russian deliveries. Brent and WTI are down about $10 per barrel since the beginning of the month. Analysts have also revised their oil prices forecasts downwards, as the trade conflict between the two world's largest economies intensified. Goldman Sachs predicts Brent will average $63 per barrel and WTI $59 per barrel for the rest of 2025. Brent is expected to average $58 in 2026 and WTI $55. Analysts led by Daan Stuyven wrote in a report that they expect global oil demand to rise by only 300,000 barrels a day in the fourth quarter 2025, given the weak growth outlook. They also noted that this slowdown will be most pronounced for feedstocks used in petrochemicals. BMI, an arm of Fitch Solutions cut its Brent price prediction to $68 a barrel from $76 for 2025, as they expect the slowing economy to reduce demand. BMI reported that the Brent price differential between December 2025-2026 also entered contango, as investors priced-in concerns about oversupply and lack of demand. A contango market is one where the front-month price is lower than that of future months. This indicates no shortage in supply. Beijing raised its tariffs against U.S. goods to 125%, retaliating to President Donald Trump’s decision to increase duties on Chinese products. The trade war is now more serious and could disrupt global supply chains. Trump granted exemptions from steep tariffs for smartphones, computers, and other electronics, largely imported from China. But on Sunday, he announced that he would announce the tariff rate on semiconductors imported over the next few weeks. The trade war has increased concerns that unsold exports may continue to drive down prices in China. "China's inflation data were a window to an economy not ready for a trade war." In terms of year-on-year comparisons, consumer prices dropped for the second consecutive month, while producer price fell by 30%. This was revealed in a Moody's Analytics weekly note referring to April 10 data. Baker Hughes reports that as companies prepare for possible demand declines, U.S. oil firms cut the number of oil rigs last week by the largest amount in a single week since June 2023. This is the third consecutive week the oil and gas rig count has been reduced. Chris Wright, the U.S. Energy Secretary, said that Trump's plan for pressure on Iran over its nuclear program could potentially support oil prices. Officials said that both countries had "positive" and constructive" talks on Saturday in Oman and agreed to meet again next week to discuss Tehran's rapidly expanding nuclear program. In a recent note, ING analysts led Warren Paterson stated that "this may help reduce some of the sanctions risk affecting oil markets if the talks continue to move in the right directions." (Reporting from Katya Golubkova and Florence Tan in Tokyo; editing by Sonali Paul.)
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Wood Group in the UK receives conditional bid by Sidara for $450 million cash
Wood Group announced on Monday that Dubai's Sidara had made a conditional offer for the British oilfield engineering and services firm. The proposal included 35 pence per share and an injection of up to $450 million in cash. Wood Group resumed discussions with Sidara in February, after the company had repeatedly rejected its approaches. Sidara had withdrawn their acquisition plans due to increased geopolitical risk and uncertainty on financial markets last year. Sidara’s latest offer values Wood Group at approximately 242 million pounds. This comes just before the deadline of April 17, when the Dubai-based engineering firm and consulting company was required to submit a formal bid. If such an offer were made, the British company would "be inclined to recommend" it to its shareholders. Wood Group projected that in February, after a turbulent period -- marked by problems within its Projects division, activist investors' pressure to pursue a sell, failed takeover efforts, and a strategic review -- it would experience another year of negative operating cash flow. Wood Group announced on Monday it is seeking to extend its debt facility and Sidara has made "significant progress" in its due diligence.
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London Copper pares gains due to concerns about US semiconductor tariffs
London copper prices lost their gains on Monday, weighed down with concerns about President Donald Trump's threats of tariffs against semiconductors. Meanwhile, hopes for Chinese stimulus helped to limit losses. As of 0404 GMT the benchmark three-month price for copper on the London Metal Exchange was up by 0.1% to $9,160 per metric tonne, after reaching its highest level in over a week. The Shanghai Futures Exchange's (SHFE) most traded copper contract rose by 1.5%, to $75,920 yuan per ton ($10,389.61). The dollar index dropped 0.4% against its competitors. The dollar is weaker, making commodities priced in greenbacks cheaper for buyers of other currencies. Trump announced on Sunday that he will announce tariffs for imported semiconductors in the coming week. He also said there would be some flexibility with certain companies. Trump's desire to reset the trade in semiconductors will probably result in a short-term exclusion of computers and smartphones from the reciprocal tariffs he imposes on China. BMI, an arm of Fitch Solutions, said that tariff threats are still a major concern for copper. Beijing's response, which could be a massive stimulus package, is likely to offset the losses. Last week, Chinese Premier State media reported that Li Qiang stated China needed to implement proactive macroeconomic policy and quickly roll them out, as "external pressures" had pressed on China's stabilisation. Investors await additional stimulus measures by China to reduce the impact of Trump’s tariffs. SHFE aluminium increased by 0.4% at 19,695 Yuan per ton. Zinc rose 0.5% at 22,465 Yuan. Lead gained 0.7%, reaching 16,885 Yuan. Nickel was up 1.5%, at 122760 Yuan. Tin advanced 2.5%, to 260480 Yuan. LME aluminium rose by 0.5%, to $2408.5 per ton. Lead rose by 0.2%, to $1918, while tin rose 2.1%, to $31,870. Zinc rose 0.4%, to $2661, and nickel increased 0.6%, to $15,155. $1 = 7.3073 Chinese Yuan Renminbi (Reporting and editing by Rashmi aich and Sumana Nandy in Bengaluru)
Gold soaring past $3,200 as dollar falls, gold flows
Gold broke the $3,200/oz key level for the very first time on Friday to reach a new high. This was fueled by the weakening dollar and the escalating global trade war, which sent investors running towards safe-haven assets.
As of 0230 GMT, spot gold was up 1.3% to $3,216.48 per ounce. Bullion reached a record high of $3,219.73 in the early session, up over 5% on the week.
U.S. Gold Futures rose 1.9% to $3236.00.
The rapid depreciation of the U.S. Dollar seems to be driving gold's recovery at this time. This seems to be a reflection of an ongoing exodus away from USD-based assets. Stocks and bonds are falling amid uncertainty over tariff policies, said Ilya Spirak, global macro head at Tastylive.
Dollars dropped, lowering the price of greenback bullion for foreign buyers.
Major stock indexes fell as well after U.S. president Donald Trump increased tariffs on Chinese goods to 145%. However, he paused for 90 days on tariffs previously announced against dozens of other countries.
China has matched each of Trump's increases in tariffs with its own, causing fears that Beijing may push tariffs against the U.S. above the current 84%.
"$3,500 will be the next number that people are looking at." Kyle Rodda, Capital.com financial analyst, said that he believes we will not reach our goal immediately or without any bumps.
The metal's rise this year was also fueled by central bank demand and expectations of rate cuts from the Federal Reserve. Geopolitical unrest in the Middle East, Europe and the Middle East, as well as increased flows into exchange-traded gold funds, were also factors.
Data showed that U.S. consumer price fell in unexpectedly, but inflation risks are on the rise.
The traders now bet on the Fed cutting rates again in June, and most likely by an entire percentage point before the end of 2025.
Platinum fell 0.4%, to $934.20. Spot silver declined 0.2%. Palladium increased 0.7% to $914.70. (Reporting and editing by Sumana Nandy, Sherry Jacob Phillips and Anushree mukherjee from Bengaluru)
(source: Reuters)