Latest News
-
Oil below $100 as peace hopes lead to oil price drop
Investors were hopeful of a "near-term" resolution to the Middle East war. Oil prices were also pinned at below $100 per barrel. Investors are quick to see the positive side of any sign of a denouement in this month's Strait of Hormuz, through which about a fifth of world oil and gas is typically transported. The ceasefire that has been in place between Israel and Lebanon for the past 10 days came into effect Thursday. President Donald Trump also said that the next meeting of the U.S. with Iran could take place this weekend when the current ceasefire expires. Brent crude futures fell more than 1%, to $98.14 per barrel. U.S. West Texas Intermediate Crude futures dropped 1.6% to $93.15 per barrel. MSCI's broadest index of Asia-Pacific stocks outside Japan fell 0.6% but was still close to its high since March 2, when the Iran War broke out. Index is up 14.5% after a drop of 13.5% in march. Japan's Nikkei index fell 0.9% early in trading, after reaching a record high Thursday. Nearly all stock exchanges are back to their levels prior to the outbreak of the war at the end February. Andrew Chorlton, CIO of public fixed income at M&G, says that the markets' willingness to ignore the energy and conflict shocks in the past two weeks has been "surprising". He said that there was a stark contrast between the statements of policymakers and central banks about the risks created by this conflict compared to what the markets are implying. Chorlton continued, "That sounds a bit complacent." It seems unlikely that there wouldn't be an additional risk premium, either for growth or inflation. In March, the U.S. Dollar benefited from flows to safe havens but has since lost a lot of those gains. The euro bought $1.1779 last, which is just below its seven-week high from the previous session. S&P 500, the U.S. benchmark index and Nasdaq, a tech-heavy index, both rose modestly on Thursday to close at record highs for the second day in a row. "I believe equity markets remain positive, and some solid U.S. earning have helped. But - and this is a big but – we need to see some concrete evidence that the peace will last," said Nick Twidale. "To me, this is a complete reopening the Strait. Or we could see some significant corrections in global stock prices in the days and weeks to come." The International Monetary Fund downgraded its outlook for global economic growth after the closure of the 'waterway. They warned that a prolonged war could push the world into recession. The 'dollar index', which measures greenbacks against a basket?currencies, including the yen, the euro and others, was 98.24. It is nearing its lowest level since March 2. The index was down for eight consecutive sessions until Wednesday. The yen remained steady at 159.32 dollars, while the risky Australian dollar was trading for $0.7163. It is still near its four-year-high it reached on Thursday. Reporting by Ankur B. Banerjee, Singapore; Editing Kevin Buckland
-
Sources say that RPT-India’s RBI has asked state oil refiners in India to reduce spot dollar purchases.
Three sources claim that India's central banks has urged the state-run oil refineries to reduce their dollar spot purchases and use a special credit line to meet their foreign exchange requirements. This is a return to the measures taken during the Ukraine conflict to help ease the pressure on the rupee. The Indian currency has been battered by a surge in oil price and heavy outflows of foreign portfolios. The Indian currency has dropped more than 3% this year to new lows, making it Asia’s worst performing major currency. Two sources claimed that the use of the special credit facility could reduce the dollar demand by?refiners and ease the pressure on the rupee. Refiners buy a lot of dollars for paying for oil imports. Sources said that the state-owned refineries were asked to apply for credit through the State Bank of India. SBI, India's largest bank, is backed by the government. The three sources refused to name themselves as they were not authorized to speak with the media. SBI and the Reserve Bank of India did not respond immediately to emails requesting comment. Credit lines are available to the major state-run refiners Indian Oil Corp., Hindustan Petroleum Corp. and Bharat Oil Corp., who together control around half of India's refining capacity of 5.2 million barrels of oil per day. One source said that refiners were also encouraged to make daily dollar purchases via SBI rather than multiple banks. This person said that since SBI already handles a large amount of merchant flows, channeling oil-related FX through SBI could help reduce the overall impact on the market. A second source stated that refiners could either purchase dollars at the RBI's reference rate or use the credit line to meet their FX requirements. No refiner responded to an email seeking comment. Separate from the sources previously cited, three spot FX traders said that they saw a decline in activity by oil companies in the spot market in recent days. RUPEE?STRAIN Sources say that the RBI has been using crisis-era strategies to support rupee in response to pressures linked to the Iran war. Worries about the spillovers of the conflict pushed the rupee down to a record low, surpassing 95 dollars in late March. Central bank also took other measures to stabilize the currency. The central bank has taken other steps to shore up the currency. The RBI also sold dollars to support the currency. Following the bank's actions, the rupee strengthened by about 2% compared to its previous record low. The last time it was quoted, on Thursday, at 93.20 to the dollar. Reporting by Nidhi verma, Jaspreet kalra and Nimesh vora. Mark Potter (Editing)
-
Australian shares drop as concerns persist over US-Iran agreement; banks and miners drag
Australian shares fell on Friday. Miners and banks were the main culprits. Domestic?fuel supply worries and doubts about whether upcoming U.S. - Iran?peace negotiations would ease disruptions in Strait of Hormuz? weighed on risk sentiment. As of 0021 GMT the S&P/ASX 200 index was down by 0.5% at?8,914.30 after a 0.3% decline in the previous session. The benchmark is set to have its worst week since four years, with a 0.5% decline. Oil prices rose overnight as doubts grew about whether upcoming peace talks will ease supply disruptions. Energy supply 'concerns' have been brought to the forefront in Australia. A fire at the largest refinery of?Viva Energy has reduced petrol production by 60%, despite ongoing efforts to ensure fuel supplies. The "Big Four" bank losses ranged from 0.4% to?1%. The sub-index looks set to have its worst week ever since the Middle East conflict began on February 28. The decline in the mining sector was 0.2%, which is a continuation of the previous day's losses despite higher iron ore and Copper prices. BHP and Rio Tinto each fell by about 0.2%. If the current momentum continues, this sector is on track to achieve a fourth consecutive weekly gain. Gold miners declined 1.2%, and Consumer Discretionary stocks retreated by 1.5%. Brent crude futures rose $4.46 overnight, causing energy stocks to rise 0.2%. Santos and Woodside both advanced by more than 0.4%. Insurance Australia, a stock, fell as much as 1,6% among individual?stocks after the competition regulator of the country extended its investigation into the proposed takeover by the company of RAC Insurance. The probe was based on competition concerns. Paladin Energy, a uranium-producer, upgraded its full year production forecast at its Langer Heinrich Mine, and was one of the top gainers. The shares of 'Amplitude Energy' jumped up to 6.7% after a binding agreement was reached with AGL Energy for the supply of gas from their East Coast Supply Project. New Zealand's benchmark S&P/NZX 50 Index reversed early gains and traded 0.2% lower, at 13,039.86.
-
Vale records best-ever first quarter iron ore sales for eight years
Brazilian miner Vale announced on Thursday that it had sold the most iron ore in a first quarter since 2018. It also announced the suspension of pellet production in Oman due to the conflict in the Middle East. Iron ore sales for the company, including fines, pellets, and run-of mine, increased 3.9% from a year ago to 68.7 millions metric tons in the quarter January-March. Vale, a world-leading iron ore producer, reported that sales increased in tandem with production. A 5.5 million ton inventory drawdown was mainly due to in-transit stocks after increased production in the second halves of 2025. It said that the?average realized iron ore price rose by 5.5%, to $95.80 per tonne. Analysts at Itau BBA wrote: "Vale’s first-quarter sales and production figures were relatively in line with our expectations. This led to a slight upward adjustment of our proforma EBITDA first-quarter estimate." Vale announced that it had halted the production of its pellet plant in Oman for annual scheduled maintenance in mid-March and suspended construction on a?concentration plant at Sohar in the country. Due to recent developments in the Middle East, the company expects its Oman operations to resume by the end of third quarter. In the interim, the pellet feed that was originally allocated for Oman will now be diverted to the Tubarao plant in Brazil and sold as fines. Vale's pellet production forecast for the full year remained unchanged at 30 to 34 million tonnes. PRODUCTION BOOSTED BY SOUTHWEST BRAZIL Vale produced 69.68 millions tons of iron ore during the third quarter. This was a tick higher than Visible Alpha's consensus estimate of 69.43million tons, and represents a 3% increase?year-on year. The report revealed that a higher production in the southeastern Brazil region offset a decline of iron ore production in northern Brazil. The company, which will report its first-quarter earnings to the public on April 28, has also set its iron ore production forecast for 2026 at between 335 and 345 million tons. COPER AND NICKEL PRODUCTS RISE MORE THAN 12% Vale's base metals division reported an increase of 12.5% in its copper production, to 102,300 tonnes, thanks to its Brazilian operations Salobo and Sossego, despite lower output at its Canadian mines. The second furnace at Onca Puma mine in Brazil boosted nickel production by 12.3%, to 49,300 tonnes. Vale reported stable operations at Voisey's Bay Underground Mine in Canada, which also contributed to a record-breaking first quarter production at Long Harbour refinery. Reporting by Andre Romani from Sao Paulo, and Marta Nogueira from Rio de Janeiro. Editing by Kylie Madry and Inigo Alexander.
-
Oil prices fall on prospects of talks to end Iran War and revive supply
Early Friday morning, oil prices dropped on the optimism that the Middle East conflict could be coming to an end. A 10-day ceasefire between Israel and Lebanon went into effect after the inauguration of the ceasefire. Moreover, 'President Donald Trump' said the U.S. may hold talks with Iran over the weekend. Brent crude futures fell $1.34 or 1.35% to $98.05 per barrel at 0021 GMT. U.S. West Texas Intermediate Crude Futures declined $1.65 or 1.74% to $93.40 per barrel, reducing gains from the previous day. Trump addressed a major sticking point in talks to end the Iran War, which has shut the Strait of Hormuz?for seven weeks, and cut off approximately one-fifth the world's supply of oil. He said that Tehran had offered to not possess nuclear weapons for more than 20 years. We're going to see what happens. Trump said to reporters on Thursday outside the White House, "I think we are very close to a deal." Oil prices rose 50% in March, a record. They have fallen below $100 per barrel only recently but have remained within $90 for the entire week. Israel's campaign against Lebanon has been a major obstacle in securing the peace deal that?Trump is seeking to end his war with Iran, which he started in late February. Two Iranian sources have told?that U.S. negotiators and Iranian negotiators are now seeking a temporary agreement to avoid a return to conflict. Two Iranian sources told? on Thursday that U.S. and Iranian?negotiators have scaled back their expectations for a?comprehensive peace deal, instead seeking a temporary memorandum to prevent a return?to conflict. According to analysts from?ING, the Strait closure has disrupted oil flow by approximately 13 million barrels a day. Helen Clark, Sonali Paul and Helen Clark contributed to this report.
-
IMF and World Bank announce they will resume dealings with Venezuela
The International Monetary Fund (IMF) and the World Bank each announced on Thursday that they have resumed their dealings with Venezuela. These had been paused since 2019. This was due to issues regarding 'government recognition. This move could lead to the release of billions in funding through frozen special drawing rights. Kristalina Georgieva, IMF's Managing Director, said in a press release that the Fund was guided by the views of the majority of its members and now dealt with Venezuela's Government under the administration of the South American nation’s interim president Delcy Rodriguez. The World Bank Group released a statement also announcing that it would resume dealings with the Venezuelan government under Rodriguez. The statement stated that its last loan was made in 2005. The Venezuelan?information ministry and its central bank did not immediately respond to comments. After the U.S. administration of Donald Trump ousted Nicolas Maduro from power in Caracas in January, Washington has resumed a formal relationship. Washington has worked with Rodriguez since then and wants to expand its presence in Venezuela's mining and oil sectors. DEBT RESTRUCTURING and SHORT TERM FUNDING HOPES JPMorgan estimated that Venezuelan special drawing rights are worth $5 billion. Investors bet heavily on Venezuelan bonds, hoping that a change of government will allow for a restructuring. Analysts estimate that Venezuela has defaulted bonds worth?about 60 billion dollars, but the total external debt stands at approximately $150 billion to 170 billion. Last month, the IMF?said that it would begin to engage with Venezuela again. It began by collecting basic data and assessing its economy after many years of gaps. A full sovereign restructuring, however, is usually underpinned by the?new IMF lending program and data about what level of debt a country can sustain. Reporting by Libby George, Washington. Mrinmay dey and Daina-Beth Solomon contributed additional reporting from Mexico City. Editing was done by Chris Reese and Inigo Alexander.
-
Competition regulator extends probe into Insurance Australia’s proposed RAC Insurance merger
A 'watchdog' in Australia said that Insurance Australia’s proposed takeover RAC Insurance would?require a further review.? Citing?concerns about a deal which could reduce competition in motor vehicle, home and contents and insurance in Western Australia. The Australian Competition and Consumer Commission (ACCC) made its decision nearly a full year after Insurance Australia announced that it would invest A$1.35billion ($967.01m) to purchase the underwriting business and 'the Royal Automobile Club of Western Australia. The review is a follow-up to an initial investigation that ended in December when the regulator was against the deal. ACCC Chair Gina Cass Gottlieb stated that the acquisition would bring together two of?the biggest insurance companies in WA. IAG is waiting in line while the competition watchdog scrutinizes major deals that may hinder competition in Australia. Ampol, a fuel retailer, has sweetened its proposal to the competition regulator in response to concerns about its A$1.1billion takeover of EG Australia. This is the local arm owned by Britain's EG Group. Insurance Australia, in a separate statement released?on Friday', said that it would 'continue to work constructively' with the ACCC during this process. The deal, once finalised would add approximately A$1.5 billion to gross written premiums and support regional expansion for the insurer. The 'watchdog' said that the Phase 2 assessment could take up to 90 - days, unless it is extended. It will also look at if the takeover would affect the?smash repairs, which are services for repairing cars damaged in accidents.
-
G7 Finance chiefs call for "lasting peace" in the Middle East and warn of war's damaging economic effects
The finance?chiefs of Group of Seven nations agreed on Thursday that it was urgent to reduce the cost of the Middle East 'war' to the global economy and "reaffirmed the pressing need to move towards a lasting peace," said a?statement?from France, which is holding the G7 Presidency this year. The war was one of three major topics that the finance ministers and governors of central banks of the richest democracies in the world discussed on the fringes of the spring meeting of the International Monetary Fund (IMF) and World Bank (WB), which took place in Washington. The two also discussed the continued support of Ukraine as well as developing alternative supply routes to China for rare Earths and critical minerals. "The conclusion was unanimous - it's urgent to limit the costs to the global economic system of a conflict that continues." The statement said that G7 members reiterated the urgent need to work toward a lasting peaceful solution. "More so than ever before, coordination between G7 members is key in addressing the impact of the energy and economic crisis on the world economy. The G7 is particularly concerned about the indirect and direct effects of the crisis on the "most vulnerable" states. Roland Lescure, the French Finance Minister, told reporters on Thursday morning that the G7 nations must be prepared to take action to reduce the risks of inflation and economic instability caused by war-related energy and supply shocks. Last month, with the support of the G7, the International Energy Agency released a record-breaking amount of oil to counter the cutoff of supplies from Gulf nations through the Strait of Hormuz. Lescure stated that "we need to ensure that we know?where the risk balance is tilting over the next few week" after the G7 Finance Ministers and Central Bank Governors' meetings on Wednesday and Thursday. Lescure said, "We will be meeting again in Paris in one month and we want make sure we monitor the situation and evaluate the impact. If we need to take action, like we did when we released inventories a couple of weeks ago, we'll do so." Lescure said that it was also important to guarantee free transit of ships through the Strait of Hormuz. He added that G7 Ministers had agreed that vessels shouldn't have to pay "one dollar" to Iran for passing through the international waterway. This year, France is the host of the G7 summit, which includes the U.S.A., Canada and Japan as well as Britain, Germany, Italy, and France. Francois Villeroy de Galhau, Governor of the Bank of France, said that the G7 central banks had also committed to?take steps necessary to ensure that Iran's energy and commodities shock does not become embedded in core inflation second and third round price impacts. We will act without hesitation if necessary but are not in a hurry. We need more data about the impact of the price shocks. Aid for Ukraine Lescure stated that the G7 finance leaders met for the first time this year in person and also pledged to continue?to help Ukraine. This includes helping it?prepare?for next winter, after a difficult year this year due to constant Russian attacks against Ukrainian energy infrastructure. Lescure stated that "Ukraine must never be collateral damage in the war currently being fought in Iran." "Russia cannot benefit from the events in Iran." Scott Bessent of the U.S. Treasury Department, who missed Thursday's G7 meeting about critical minerals, announced on Wednesday that he will not renew the?30-day waiver of sanctions for Russian oil at sea. The waiver expired on April 11 and was intended to reduce price pressures through the release of more oil onto global markets. According to the French statement, the focus of the meeting was on Ukraine's economic reforms, under the $8 billion IMF programme, as well as the need to maintain economic pressure on Russia. It also mentioned the importance of Ukraine's energy requirements and the active contribution to the repair work at Chernobyl's confinement arches. The G7 finance chiefs also discussed how to develop alternative supply chains of rare earths, critical minerals and other essential materials to reduce the countries' dependence on China. Lescure stated that the group will continue to work on "very tangible steps" which could be presented at a G7 meeting in Evian-les-Bains, a French Alpine spa city. (Reporting and editing by Andrea Ricci, Paul Simao and David Lawder)
Copper nears six-week high on hope of new US-Iran discussions
The copper price rose on Wednesday, extending gains to hover near a 6-week high as the prospect of renewed U.S. - Iran peace talks sparked hopes for a 'de-escalation of Middle East conflict.
The Shanghai Futures Exchange's most traded copper contract closed the daytime trading session up 1.38% to 102,090 Yuan ($14.974.70) a metric ton. The contract reached its highest level since March 3, at 103130 yuan, earlier in the day.
The benchmark three-month copper price on the London Metal Exchange rose 0.24% to $13,317 per ton, after reaching its highest level since March 2, at $13,392.5.
U.S. president Donald Trump said on Tuesday that talks with Tehran to end the war may resume this week. This would send oil prices down and ease concerns about inflation and global economic recession, which could affect demand for industrial metals.
The prospect of an improving demand in the top consumer China, while imports fell, also influenced the price of red metal, which is used in construction, power and manufacturing.
A researcher at the state-owned China Minmetals Corp. said that refined copper consumption could increase by 3.7% annually on average over the next decade.
Both benchmarks have lost some of their earlier gains since the U.S. announced on Wednesday that its military has completely stopped trade entering and leaving Iran by sea.
The plan by China to stop exporting sulphuric acids has sparked fears that the acid could have a negative impact on copper and nickel processing.
Nickel prices have also risen as disruptions caused by the Iran war forced Indonesian nickel producers to reduce their output by at least 10%.
Shanghai nickel prices rose 2.51% while London prices increased 0.65%.
SHFE lead climbed 0.36%. Tin?climbed 2.8%. Zinc?climbed 0.27. Aluminium?fell 0.24% due to easing supply concerns.
Aluminium gained 0.45% on the LME, while lead and zinc both rose by 0.49%. Tin fell by 0.87%.
(source: Reuters)