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Binh Son refinery in Vietnam increases US oil imports
Two sources familiar with the matter on Tuesday said that Binh Son refinery in Vietnam is expected to purchase 1 million barrels West Texas Intermediate crude oil in January. This will be its second purchase within three months, as it increases imports from the United States. Since Trump threatened to impose tariffs against Vietnamese products in April, Vietnam has sought to purchase more U.S. products to close the trade gap. Vietnam wants to import a variety of U.S. products, including farm produce, liquefied gas, aircraft, and crude oil. Sources said that Swiss trader Mercuria had sold the cargo of 1 million barrels, which is due to be delivered between 7-11 January. Companies don't usually comment on commercial transactions. BSR received 700,000 WTI barrels on November 14. This was the first import for BSR since December 2024. Data from shipping analytics company Kpler revealed this. The refiner announced on Sunday that it had exceeded its target by producing more refined products than expected in the first eleven months of 2018. BSR is operating at 120% designed capacity and will ramp up to 123%-125% in the next year.
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Gold reaches a new high after Fed comments renew rate-cut bets
The gold price rose on Tuesday, reaching its highest level in over a week. This was despite a strong dollar. Fed policymakers' dovish remarks revived the prospects of an American rate cut in December. As of 0303 GMT the spot gold price rose by 0.2%, to $4147.51 an ounce. This is the highest level since November 14. It follows a 1.8% increase on Monday. U.S. Gold Futures for December Delivery were 1.2% higher, at $4.144.70 an ounce. Kelvin Wong, senior market analyst at OANDA, said that gold prices recovered in the short-term due to expectations of a rate reduction. Wong said that "market participants will be watching any data related to demand in the U.S. economy with much greater interest at this time." Fed Governor Christopher Waller stated on Monday that the job market was weak enough to warrant a further quarter-point cut in rates for December. However, any action beyond this depends on a upcoming flood data that has been delayed due to the government shutdown. Waller's remarks come after New York Fed president John Williams stated on Friday that U.S. rates of interest could fall "in a near term." According to the CME FedWatch Tool, investors now price in an 81% probability of a Fed Rate Cut in December. This is up from 40% last Monday. Gold that does not yield a return tends to perform well in environments with low interest rates. This week, the Fed will release key economic data that was delayed due to the government shutdown. These include U.S. retail sale figures, unemployment claims and producer prices. Gold priced in dollars has seen gains capped as the dollar remained near its six-month-highs from last week. The price of spot silver was unchanged at $51.42, platinum increased 1.1% to 1,560.60 and palladium rose 0.2% to 1 398.88. (Reporting and editing by Subhranshu sahu, Ronojojo Mazumdar, and Ishaan arora)
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Wild spring storm brings huge hail to parts of Australia's eastern coast
As a powerful springstorm swept across Australia's east coast, giant hailstones rained down on Queensland and more than 95,000 houses were left without electricity. The Bureau of Meteorology in Australia reported hail as big as 14 cm (5 inches), damaging solar panels, roofs, and cars. Energex, an energy distributor, said that the wild weather produced wind gusts up to 100 km/h (62mph) and over 800,000 lighting strikes. These caused power lines to be downed and cut off electricity for 95,000 customers. The weather bureau has forecast more severe storms for Tuesday in south-east Queensland, north-east New South Wales and the surrounding areas as the high humidity and hot temperatures persist. Miriam Bradbury, Senior Meteorologist at ABC, told the national broadcaster that severe storms were still expected across most of the South-east today. We're seeing today a similar setup to yesterday. Bradbury said that the weather will not be as "intense" as it was on Tuesday. This means the risk of "giant hail is slightly reduced in comparison to yesterday". The Bureau of Meteorology also issued a heatwave alert for the northern parts of Queensland. Maximum temperatures are expected to exceed 40 degrees Celsius. Queenslanders shared images of huge hailstones on social media. One Reddit user posted a photo of a large hailstone that measured 10 cm in diameter and weighed 188.8 g (6.66 ounces). Reporting by Christine Chen, Sydney; Editing and proofreading by SonaliPaul)
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Honeywell is chosen by Nigerian Dangote to support ambitious capacity expansion
Honeywell has been contracted by Nigerian oil refinery Dangote to help double the capacity of its refinery to 1.4million barrels per day in 2028. This is the clearest sign yet that the company's plans to become the largest refinery in the world are taking shape. Honeywell's equipment and catalysts will help Dangote process a wider range of crude grades, which is needed to support their planned expansion of output. Dangote also plans to license Honeywell's Oleflex Technology to increase its polypropylene production - a material used in plastic containers and auto parts. The financial terms of the agreement were not revealed. Contracts of this nature vary depending on the complexity of the project, but a source with knowledge of the situation estimated that the deal could be worth over $250 million. Nigeria, Africa's biggest crude oil producer, imported almost all of its refined fuel for decades due to the non-functioning state-owned refining facilities, resulting in chronic fuel shortages and subsidy scandals. This put heavy pressure on the foreign exchange reserves. The Dangote Refinery, Africa's and the World's Largest Single-Train Facility at 650,000 Barrels Per Day, is designed in order to reverse this paradox, by meeting Nigeria's entire domestic fuel requirements and creating surpluses for export. Dangote, who spent $20 billion to build the refinery at Lekki in Lagos, announced last month plans to double plant capacity by adding a single-train unit to the facility over the next three year. Dangote's capacity would allow him to process all of Nigeria’s crude oil production, which is currently around 1,5 million barrels per day. Honeywell is in the process to split itself into two companies. The aerospace division, Honeywell's biggest source of revenue, will be separated out. (Reporting and editing by Daniel Wallis in Dubai, Utkarsh shetti from Dubai)
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Asian stocks rise as US interest rate cuts are expected
Asian shares rallied Tuesday, as investors bet on a Federal Reserve rate cut in December. They also piled into technology stocks around the world, despite concerns that the sector is becoming overheated. MSCI's broadest Asia-Pacific share index outside Japan gained 1%, led by tech stocks. This is a partial recovery of last week's 4% drop. The index is expected to drop 3.8% in the month. This will be its first monthly decrease since March. Japan's Nikkei rose 0.8% at the start of trading on Tuesday, after returning to work on Monday from a long holiday. Last week, the index fell 3.5% as risk-off sentiment swept markets. In a note, Charlie Aitken said, "It's nice to see a lot of green across asset classes this morning, as volatility has eased a bit and the Fed puts comes back into play." This is a classic bull equity market behavior. The market is experiencing a short, sharp drop in the stocks and sectors which have been leading the market. There will be a release of those who are over-leveraged and then a start to a recovery, led by growth stocks and cyclicals. After Fed Governor Christopher Waller stated that available data indicated the U.S. employment market is still weak enough to warrant a further quarter-point reduction in interest rates, it's likely we will see a rate cut. According to CME's FedWatch Tool the markets are now pricing in a 85.1% probability of a 25 basis point cut at the December meeting. This is up from 42.4% one week ago. The U.S. central bank will be meeting on December 9-10. Mary Daly, president of the San Francisco Federal Reserve Bank, told the Wall Street Journal that she supports lowering interest rates during the central bank meeting next month because she sees an improvement in the job market. The yield on 10-year Treasury bills was unchanged at 4.0344% during the Asian trading session. The two-year rate, which increases when traders expect a higher Fed Funds rate, was flat at 3.4872% during Asian trading hours, after falling 2.5 basis points the previous session. Dollar has been impacted by the sudden change in bets on rate cuts. After a small overnight gain, the euro bought $1.1522 at last. Early trading saw the dollar index at 100.2. The Japanese yen, despite the slight dollar weakness this week has remained vulnerable. It traded at 156.95 to the dollar in the early Asian hours. This is not far off the 10-month-low of 157.90 that it reached last week. The ongoing dispute between Tokyo and Beijing continues to be in the spotlight. It is over a comment made by Japan's prime minister Sanae Takaichi in November, stating that a Chinese invasion of Taiwan would trigger a Japanese response. Takaichi spoke with Donald Trump on Tuesday after his Monday call with Chinese President Xi Jinping. She claimed that Trump had explained U.S. China relations to her. Trump announced on Monday that he will travel to Beijing, China in April. This is at the invitation from the Chinese government. The meeting proposal was seen as another sign that diplomatic and political ties between China and the United States are improving after their truce in their trade war. Wall Street saw the Dow Jones Industrial Average rise 0.44%. The S&P 500 rose 1.55% and the Nasdaq composite rose 2.69%, boosted by tech stocks. This was the Nasdaq’s best two-day performance since November 2024 and its biggest daily percentage increase since May 12. The U.S. stock and bond market will be closed Thursday, November 22, for Thanksgiving. Trading will resume on Friday for a half-day. Brent crude futures fell 0.2% to $63,16 per barrel. U.S. crude was also down 0.2%, at $58,70. Spot gold fell 0.2% to $4,130 per ounce. (Reporting and editing by Sonali Paul; Scott Murdoch)
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Oil prices rise as investors focus on Ukraine and concerns over supply
The oil prices remained unchanged on Tuesday, despite the fact that they had risen in the previous session. This was due to concerns about the supply exceeding demand in 2019. These fears outweighed the worries about Russian shipments remaining under sanctions if the talks to end Ukraine's war are unsuccessful. Brent futures dropped 17 cents or 0.3% to $63.20 per barrel at 0158 GMT. West Texas Intermediate crude (WTI), which is a blend of crude oil from Texas, fell 12 cents or 0.2% to $58.71. The two crude benchmarks rose 1.3% each on Monday, as a growing doubt about the peace agreement to end the Russia/Ukraine conflict reduced expectations of an unrestricted flow of Russian fuel and crude oil supplies. These are currently under sanctions by Western nations. While market participants are concerned about Russian crude oil shipments, there is a more relaxed outlook for the supply and demand balances of crude oil in 2026. This is because many forecasts predict that supply will grow faster than demand next year. In a Monday note, Deutsche Bank said it sees an oil surplus in 2026 of at least two million barrels a day. It also stated that there is no clear way to return to deficits by 2027. Analyst Michael Hsueh stated that "the path forward to 2026 remains bearish." Prices were supported by the expectation of softer markets in 2019. This is despite the fact that the U.S. failed to resolve the dispute between Ukraine and the U.S. over the U.S.'s peace proposal, which Kyiv and Europe viewed as a Kremlin list. The possibility of a Russia-Ukraine deal leading to the lifting of sanctions on Moscow could result in an increase in oil supply. Oil markets still find some support in the expectation that U.S. interest rates will be cut at their policy meeting on December 9-10, as Federal Reserve members have indicated support for a reduction. Lower interest rates can stimulate economic growth, and increase oil demand.
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Market awaits Fed clarification as copper prices rise due to supply concerns
The price of copper rose on Tuesday as traders took into account supply developments, record U.S. stocks and the uncertainty surrounding the Federal Reserve’s interest rate decision for December. As of 1300 GMT, the most traded copper contract at the Shanghai Futures Exchange had risen 0.33% to 86,320 Yuan ($12154.32) a metric tonne. The benchmark three-month copper price on the London Metal Exchange rose 0.31% to $10,806 per ton. Freeport Indonesia announced on Monday that it had reduced its production plans for 2026 at its flagship Grasberg Mine to 478,000 tonnes of copper cathode, from an earlier expectation of 700,000 tons, after a deadly mudflow in September, which killed seven people. UBS increased its copper price forecast for next year. The bank cited tightening supplies from mine disruptions including the Grasberg closure, as well as strong long-term demands, in a Friday note. Comex stocks of copper have surpassed 400,000 short tonnes for the first. Profitable arbitrage continues to draw metal into the United States. Stockpiling by traders ahead of possible U.S. Tariffs in 2026 is a major reason why inventories are far higher than LME or Shanghai levels. Market caution dominated the overall trading, as traders awaited more clarity about a rate cut from the Fed in December. Analysts at Sucden Financial said that with few macro-cues in a U.S. data schedule and little direction coming from fundamentals there was "little incentive" for prices to move decisively outside of their current ranges. Auminium, nickel, tin, and lead all declined, while zinc was relatively unchanged. Lead added 0.25$ to the price of zinc, and aluminium, nickel, and tin were all little changed. Tuesday, November 25, DATA/EVENTS - (GMT) 0700 Germany GDP Detailed QQ, SA, YY NSAQ3 1330 US Machine Manufacturing Sep 1330 US Sales MM Sep 1530 US Consumer Confidence (Nov) ($1 = 7.1020 Chinese yuan renminbi). (Reporting and Editing by Dylan Duan, Lewis Jackson, Rashmi aich.
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Globe and Mail: Ottawa closes uranium agreement with India valued at $2.8 billion
The Globe and Mail, which cited people familiar with this matter, reported that Canada and India were close to finalizing a trade agreement valued at approximately US$2.8 billion. If finalized, a deal between Canada and India to supply uranium for India would last for 10 years, according to the report. The uranium will be provided by Canada's Cameco Corp. The report suggested that the deal could be part a larger nuclear cooperation effort between India and Canada. Requests for comments were not immediately responded to by the Indian government, Indian Trade Ministry, Canadian government or Canadian Trade Ministry. Could not verify the report immediately. On Sunday, the Canadian Prime Minister Mark Carney and the Indian Prime Minister Narendra modi had a discussion at the G20 Summit in Johannesburg, South Africa. After a diplomatic spat in 2012, the Indian government announced on Sunday that both countries had agreed to resume stalled trade talks. The statement from India’s Prime Minister’s Office stated that "The leaders agreed on the start of negotiations for a Comprehensive Economic Partnership Agreement" (CEPA), which aims to double bilateral trade up to USD 50 billion in 2030. (Reporting and editing by Tom Hogue in Bengaluru, Leslie Adler and Devika Nair)
Letter shows that activist Palliser is putting pressure on Rio Tinto in order to bid for Teck.
A letter seen by the Board shows that the activist fund Palliser capital has increased pressure on Rio Tinto, asking it to launch a "now-or-never" counterbid to acquire Teck Resources. The letter urges Rio Tinto's dual listed structure to be unified and to spin off the base metals division to create a powerhouse in copper.
In a letter dated October 17, Rio shareholders Palliser and Palliser encouraged the company to contest Teck's merger agreement with Anglo American in order to gain control over a copper portfolio of tier one that could produce combined 1.3 million tons of copper a year.
Palliser, which according to sources in the know, holds a stake of $400 million, or less that 1%, in the miner confirmed the authenticity but declined to comment.
The letter stated that the deal would diversify Rio's business beyond iron ore and unlock cost synergies of at least $800,000,000. It also said it would accelerate the copper growth for a decade, at a lower cost and risk than if the miner had expanded greenfield, thus better positioning Rio to take part in the global transition towards clean energy.
In response to the letter Rio Tinto said it was focused on "maximising value for shareholders" and would provide an update on the strategy at its Capital Markets Day five weeks later.
Shareholders had rejected the arguments Palliser made in support of its dual listing.
A LETTER STATES THAT ENDING THE DUAL LISTING IS NECESSARY TO MERGE
Palliser’s plan to counterbid Teck would see Rio, which is currently listed in both London and Sydney, unify and become a holding company in Australia. It would then split into two companies: one focusing on copper, aluminum and zinc in Canada and the other concentrating on iron ore.
The shareholder, who has been campaigning for more than a year for Rio to be unified, stated in the letter that the dual-listed company structure makes an offer based on stock for Teck "structurally impossible", forcing the miner to expensive or dilutive alternative.
The letter stated that "unification is not an option - it's a requirement for any credible strategic alliance", and urged the board to move quickly before the AngloTeck tie-up was finalised.
A LETTER ALSO URGENT DEMERGER
The company said that a split into two separate entities would release trapped value and attract investors looking for pure-play copper stocks.
It said that Rio Tinto could make a more attractive offer with a premium up front, and also allow Teck shareholders to take part in Rio Tinto’s potential re-rating, as FutureMetalsCo will be demerged.
Anglo and Teck have agreed to merge, without offering a premium for shareholders who will vote the deal on 9 December.
Sources close to the issue said Palliser holds a small shareholding in Canadian miner. The fund didn't respond to an inquiry for comment about that holding.
Rio's 2025 Annual General Meeting saw shareholders vote overwhelmingly against Palliser’s proposal to review the dual listed structure. They sided with the board.
Palliser's suggestion that a unified list would provide greater flexibility in large M&A deals was not taken into consideration by the miner's boards at the time.
Rio Tinto said Monday that it "strongly rejects" all the unfounded claims made by Palliser about the quality of the analysis presented to shareholders. Clara Denina, Jan Harvey (Editing and Reporting)
(source: Reuters)