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Rosneft says costs offset high oil prices, which explains the 73% drop in net income for 2025.
Rosneft said that the company's net income for 2025 will be down 73%, to $293 billion ($3.60 billion), due to high interest, a high tax on profits, and other factors. Igor Sechin is the Rosneft CEO and a close ally of President Vladimir Putin. He said that the Russian oil industry was caught in an "ideal storm" last year, which included negative geopolitical conditions, tight domestic macroeconomic conditions, as well as high interest rates. The United States sanctioned Rosneft, Russia's second largest oil producer Lukoil in October last year. Sechin stated that the Middle East conflict has boosted oil prices this year. However, rising freight rates, insurance, and other costs have offset these high prices. Brent futures for the front-month hit a record gain of 64% during March, according LSEG 'data going back to June 1988. U.S. benchmark West Texas Intermediate has gained 52% this month, the biggest gain since May 2020. Rosneft CEO stated that the freight rate for transporting Russian oil from the Baltic Sea to India in 'March' exceeded $20 per barrel. This is ten times more expensive than shipping oil from Russia into Europe in early 2022.
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The global equities market has recovered on the back of de-escalation expectations, ending a poor month
The global equity and bond market jumped on the Tuesday due to speculation about a possible de-escalation of the Middle East conflict, which has led to the largest one-month rise in oil prices ever recorded. Financial assets suffered despite the rally due to fears of stagnant growth and rising inflation. Oil prices have risen due to the worst energy supply interruption in history. This has caused investors to flee the stock and bond markets. The benchmark STOXX 600 Index in Europe fell by 8% in the month of March. This was its biggest monthly drop in almost four years, and ended an eight-month streak of gains. Unconfirmed reports suggest that Iran's president, who is less powerful than the supreme leader of the country, has said that the country is ready to end its month-long conflict. The Wall Street Journal reported that Donald Trump told his aides in an earlier report that he was willing to stop the military campaign if the Strait of Hormuz remained largely closed. Trump has contradicted himself at times. He also said that the U.S. will "obliterate", Iran's energy and oil plants if the strait is not opened. The strait is used to transport roughly one-fifth (or a fifth) of the world's oil. Colin Graham, the head of Robeco's multi-asset strategy, said that equity markets "take the U.S. government at its word" and believe it will end the war. They haven't even moved on to the second day, when?the Strait of Hormuz may still be closed." Brent crude futures in May closed up 4.94% to $118.35 a barrel before expiry. Brent June settled at $103.97 a barrel, down $3.42. U.S. crude oil futures were down $1.50 (1.46%) at $101.38. On Monday, the average retail price of gasoline in the United States was $4 per gallon. The War's Global Reach The U.S.-Israeli war that began in late February with coordinated strikes on Iran has shocked global markets and raised the possibility of a worldwide economic recession. The MSCI index of global stocks rose by 18.07 points or 1.88% to 978.94. Wall Street saw the Dow Jones Industrial Average rise 2.49% to 46341.51, S&P 500 gain 2.91% at 6,528.52 while the Nasdaq Composite rose 3.83% at 21,590.63. Alonso Munoz is the chief investment officer of Hamilton Capital Partners. He said that "what we've seen in terms of messaging from the administration" may be an indication that they are either starting to wind down or pivot. You get these periods when the market is so oversold, that you only have relief rallies if there are any good news. The pan-European STOXX 600 Index rose by 0.41% and Europe's FTSEurofirst 300 Index gained by 0.40%. Investors are worried that a surge in fuel prices could harm demand for goods and service, forcing the Federal Reserve into raising interest rates to control inflation. U.S. employment openings, which are a measure for labor demand, dropped more than expected in the month of February, and hiring fell to its lowest level in almost six years, according to government data released on Tuesday. Fears of inflation and growth In March, the oil shock drove euro-zone inflation above the European Central Bank’s 2% target. Investors appear to be refocusing on the risks of a weaker economy due to the energy crisis. Government bond yields have retreated at the beginning of this week from multi-year highs. After a month's heavy selling, U.S. Treasury yields fell as demand for government bonds was boosted by the hopes of a de-escalation. The German yield on the two-year bond fell by 3.3 basis points, to 2.588%. Ahead of a Tuesday emergency meeting, the European Union's Energy Chief has warned governments to be prepared for a "prolonged disruption" of energy markets as a result if the war. Robeco's Graham stated that this is not yet true. The dollar index (which'measures the greenback versus a basket of currency) fell by 0.69%, to 99.86. However, it remained on course for a gain in the month. The Japanese yen increased by 0.62% to 158.73 dollars per yen. The Japanese finance minister stated that the government is ready to fight volatility in foreign exchange "on all fronts", underlining Tokyo's alarm at the recent slide of the yen. Spot gold increased 3.52%, to $4669.09 per ounce. However, it was still expected to end the month with a decline of over 10%. U.S. Gold futures closed 2.7% higher, at $4678.60. (Reporting and editing by Keith Weir and Chizu Nomiyama; Additional reporting and Twesha Dkshit by Purvi Agarwal; Editing and reviewing by Keith Weir and Elizabeth Howcroft)
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EIA data show that US oil production fell to its lowest level in two years during the January winter storm.
The Energy Information Administration reported on Tuesday that U.S. crude oil production fell the most in two years last month following a'severe winterstorm' which knocked production offline?in large parts of the country. The EIA data showed that U.S. crude output dropped 410,000 barrels a day in January, compared to the previous month, to 13,25 million barrels a day, the lowest level since February 2025. The EIA reported that the total U.S. crude and petroleum product consumption fell by 201,000 barrels per day in January to 20.7 millions bpd, which is the lowest level since November '2025. The demand for gasoline dropped'sharply' during the winter storms of January. The EIA's measure for demand for motor gasoline finished fell by 501,000 bpd in a month. This is the lowest level since January 2022. Retail gasoline prices topped $4 per gallon on Monday, as the Iran War upended the global oil markets. This could put more pressure on fuel demand in the U.S. In January, the demand for distillate fuels (diesel and heating oil) increased due to unusually cold temperatures. The EIA data revealed that the average amount of distillate fuel products supplied in January was 4.03 million bpd, an increase of 213,000 bpd from month to month. This is the largest increase in over a year. (Reporting and editing by Chris Reese, Will Dunham, and Shariq Khan from New York)
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Oil sets a record monthly increase as global equities end a weaker month
The global equity and bond market jumped on the Tuesday due to speculation about a possible de-escalation of the Middle East conflict, which has led to the largest increase in oil prices ever recorded in a month. Financial assets suffered despite the rally due to fears of stagnant growth and rising inflation. Oil prices have surged on the back 'the 'worst ever energy supply interruption. This has caused investors to flee both the stock and bond markets in March. The benchmark STOXX 600 Index in Europe fell by 8% in the month of March. This was its biggest monthly drop in almost four years, and ended an eight-month streak of gains. Unconfirmed reports suggest that Iran's president, who is less powerful than the supreme leader of the country, has said the country is ready to end its month-long conflict. Wall Street Journal reported that Trump told his aides earlier this year that he was willing to end military operations even if crucial Strait of Hormuz remained largely closed. Trump, however, has contradicted his own message on occasion, as he warned that the U.S. will "obliterate", Iran's oil and energy wells, if the strait is not opened. The strait is used to transport roughly one-fifth the world's oil and gas. Colin Graham, the head of Robeco's multi-asset strategy, said that equity markets "take the U.S. government at its word" and believe it will end the war. The Strait of Hormuz may still be closed on day two. Brent crude futures for the front-month held above $110 per barrel following an attack and fire set by Iran on a fully loaded tanker near Dubai, early Tuesday morning. Brent crude futures rose nearly 5%, to $118.38 per barrel. This is on track to be the biggest monthly gain in history before the expiration of this contract. Brent, the contract for the next month, fell 2.5%, to $104.65. U.S. crude dropped 63 cents, to $102.26 per barrel. On Monday, the average retail price for gasoline in the United States was $4 per gallon. THE WAR'S GLOBALISATION The war that began with the U.S. and Israel striking Iran in late-February has sent shockwaves through global markets, and increased the risk of an international recession. The MSCI index of global stocks rose by 16.72 points or 1.7% to 977.59. The index has fallen about 9% for the month. Wall Street saw the Dow Jones Industrial Average rise 2.2% to 46203.56. The S&P 500 rose 2.5% to 6502.69, and the Nasdaq Composite increased 3.5% to 21513.34. The Dow Jones Industrial Average and S&P 500 were still on course for their largest monthly declines in almost four years. They both fell 5.3% and 7.7% respectively. Alonso Munoz is the chief investment officer of Hamilton Capital Partners. You get these periods when the market is so oversold, that you only have relief rallies if there are any good news. The pan-European STOXX 600 Index rose by 0.41% and Europe's FTSEurofirst 300 Index gained by 0.40%. U.S. jobs openings, which are a measure for labor demand, dropped more than expected in February, and hiring fell to its lowest level since nearly six years. Fears of inflation and growth were heightened by the oil shock that pushed euro-zone?inflation? above the European Central Bank?s 2% target?in March. The government bond yields have fallen from their multi-year highs after the conflict. Investors are now focusing on the possibility of a weaker economy due to the energy shock. After a month's heavy selling, U.S. Treasury price rose, sending yields lower. The de-escalation hope boosted demand for government bonds. The yield on the German two-year bond fell by 4.8 basis points, to 2,574%. Before a Tuesday emergency meeting, the European Union's energy chief warned governments to be prepared for "prolonged disruptions" in energy markets due to war. Graham, from Robeco, said that if the Strait of Hormuz remained closed for another week or two we would?raise our probabilities of a recession in our scenario analyses. However, this is not the case yet. The U.S. Dollar fell but was still on course to gain a month-long gain. The Japanese yen increased 0.57% to 158.82 dollars per yen. The Japanese finance minister stated that the government is ready to fight volatility in foreign exchange "on all fronts", underlining Tokyo's concern over the recent yen slide. Spot gold increased by 2.25%, to $4.612.60 an ounce. However, it was still expected to end the month with a decline of over 10%. U.S. Gold futures closed 2.7% higher, at $4678.60. (Reporting and editing by Keith Weir and Chizu Nomiyama, with additional reporting by Purvi agarwal and Twesha dikshit)
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Nikkei reports that Japan and France are considering a rare earths agreement to reduce China's reliance
The Nikkei reported on Wednesday that the French President Emmanuel Macron and Japanese Prime Minister Sanae Takaichi will create a roadmap to 'diversify supplies of rare Earths and other essential minerals. According to the report, a joint declaration expressing concern about export restrictions for critical minerals will be issued by both leaders. Could not verify immediately the information contained in the report. Nikkei reports that the Japanese and French governments are planning to launch a public-private partnership in southwest France by year's end to refine heavy rare earths, which can be used for electric vehicle motors as well as other technologies. The report said that both Takaichi, and Macron would?confirm' this plan and others to build rare earths independent supply chains from China. The deal is timely, as Japan, Western governments, and manufacturers are scrambling for supplies of 'rare earths minerals' to reduce their dependence on China, which is the dominant supplier and producer of 'rare earths. In March, Japan Australia Rare Earths (co-owned by the state-run Japan Organization for Metals and Energy Security and Sojitz Corp) struck a deal to supply Australia's Lynas Rare Earths - the world's largest rare earths producer outside China. Japan Australia Rare Earths has committed to buying half of the total production of heavy rare Earths. On March 20, the U.S., Japan and other countries released an action plan to develop alternatives to China in the?critical mineral and rare earths supply chain. The initial focus was on pricing floors for select minerals. Japan and France will also cooperate in the space sector. Companies from both countries are expected to sign Memorandums Of Understanding on 12 joint projects. These include space debris removal, rocket launches, and space debris removal. The report said that the Japan Aerospace Exploration Agency, (JAXA), and CNES, France’s space agency, would?provide financial support for corporate space technology developments, offering capital to businesses from their respective countries who take part in joint project. (Reporting by Rajasik Mukherjee & Nichiket Sunil in Bengaluru; Editing by Shailesh Kuber)
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Gold is up over 3% but it's on track to be the worst month for gold since 2008.
Gold was up on Tuesday but still on course for its'severest monthly decline' since October 2008 as inflation fears and expectations of higher interest rates due the Iran War weighed heavily on the metal. By 1:31 pm EDT (1731 GMT), spot gold had risen 3.2%, to $4652.31 an ounce. This was the highest price since March 20. U.S. Gold Futures closed 2.7% higher, at $4678.60. The U.S. Dollar slipped but was still on track for a gain of 1% per month. A stronger dollar increases the price of greenback-priced gold for holders of foreign currencies. The current gold rally is encouraging, and it's due to increased optimism regarding de-escalation of the Middle East. "I need to see more upside performance before I can say that this is a pattern to continue," said Peter Grant. "In the longer term, the underlying trends remain bullish and the key fundamentals such as de-dollarization and the central bank buying of bonds are still in place." The Wall Street Journal, citing officials in the administration, reported that Donald Trump would be willing to end his military campaign against Iran, even if the Strait of Hormuz remained largely closed. U.S. defense secretary Pete Hegseth warned Tehran to make a decision soon in the war with Iran. The price of spot gold fell 11.8% in march as the Middle East war?weighs on bullion. Energy prices have risen dramatically, causing inflation fears to increase and for markets to reassess their expectations of interest rates. High rates increase the opportunity costs of holding metal, despite it being a hedge against inflation and uncertainty. Goldman Sachs and BMI both forecast that the price of gold will reach $5,400 per ounce by 2026. Spot silver increased 6.7%, to $74.64, however it was down 20.4% in the last month. BNP Paribas analysts expect silver to trade in the range of $65-$75 per ounce until 2026, and that physical markets will be surplus by 2027. Palladium rose by 5.2%, to $1,479.25, and platinum gained 3.1%, to $1,958.05. Both metals are on course for a monthly decline. Ashitha Shivprasad, reporting from Bengaluru and Paul Simao, editing by Tasim Zahid
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OMV Plastics CEO: Profits will increase dramatically for the giant plastics company
Alfred Stern, CEO of Austria's OMV said that the giant new plastics group Borouge International is a significant step towards increased profitability. He added that a listing was expected to take place in 2027. The new group was completed on Tuesday and was created by combining ADNOC with OMV subsidiaries, along with the acquisition of NOVA Chemicals. Stern stated that the group is expected to have higher margins than average and a stronger price premium compared with other companies in the market. Stern stated that around 70% of the production is based upon low-cost raw materials, while premium products enjoy an average price premium of 18%. EARNINGS ARE ALREADY HIGH, AND WE EXPECT THEM TO RISE Borouge International, based on its existing companies, would have had a margin of earnings before interest tax, depreciation, and amortisation?of about 25% in the past five years. OMV, the Austrian group that combines oil, chemicals and gas, reported profits higher than expected earlier this year. The chemicals division was a major contributor to these results. In order to launch Borouge International in 2026 with a solid balance sheet and an investment grade rating, OMV and ADNOC have said that they would forgo the half of their dividend. Stern stated that this will not change OMV's dividend policy. In the beginning, it was planned to list Borouge International in this month around the time of the company's formation. The company denied that the delay was directly related to the Middle East conflict, saying they were simply trying to choose the best date for their shareholders. Stern stated that the company is now targeting a 2027 initial public offering through a three stage process. Borouge's existing shares will first be exchanged and then listed in Abu Dhabi, at the same time that a capital increase is being carried out to allow its inclusion in the MSCI Emerging Markets Index. Borouge International's headquarters will be in Vienna where a secondary IPO has been planned. In a press release?on Tuesday, it was stated that the merger would generate synergies worth at least $500 million, with 75% occurring within the first 3 years. However, the statement did not provide details as to how this would be achieved. Borouge International will have a production capacity of more than 12,000,000 metric tons per year, placing them in the fourth position globally. In Abu Dhabi, new plants are expected to be commissioned this year. This will add 1.4 million tonnes of additional capacity. Reporting by Alexandra Schwarz Goerlich, writing by Maria Rugamer. Editing by Olaf Brenner, Barbara Lewis and Barbara Lewis.
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War and weather focus on March gains for EU wheat
Euronext Wheat rose on Tuesday to confirm a gain for the month as dry weather threatened U.S. Harvest prospects and the latest developments in Iran war boosted gains on wider markets. The euro's sharp rise against the dollar has slowed down Tuesday's gains on 'Euronext'. The grain markets also took in the U.S. plantation estimates. The data surprised traders because it showed corn acres far above the average expectation of analysts, who were expecting a greater shift to soybeans due to rising fuel and fertilizer costs. Euronext's benchmark May milling wheat settled at 204.75 euro per metric ton, up 0.5%. The contract increased 1.6% in March, its third consecutive monthly gain. However, the increase was less than a 4.4% leap in February. Chicago wheat prices rose by more than 1%. Brent crude oil was on course to set a new monthly record, as news of an attack on a tanker in the Middle East heightened supply concerns. The broader market was buoyed by a report that U.S. President Donald Trump told his aides that he would be willing to end this war, even if the Strait of Hormuz remained largely closed. The price of grains has largely tracked the price of crude oil since the Iran War, a reflection of the use corn for biofuels as well as the rising costs associated with energy and fertilisers. The impact of the war in Iran on the wheat demand was also being assessed by traders. Tunisia won a tender to purchase 100,000 tons of soft grain at a price of $274.73 per tonne cost and freight. This was higher than the previous tender of $271.69. Jordan, on the other hand, completed its purchase of 60,000 tonnes of hard wheat at $275.95 per ton cost and freight (c&f), lower than $277.50 per ton paid in a tender held on March 17. The traders reported that for the April/May shipment,?Russian, Polish/Baltic and 12.5% Wheat was priced between $238 and $239 per ton (free on board) while German and Romanian wheat was priced between $240 and $243 per ton. U.S. hard-red winter wheat remains less competitive with a price of more than $279 per ton FOB. U.S. prices have increased as the drought has worsened conditions for crops. The European Union's soft wheat exports have risen 7% on an annual basis to 17.48 million metric tons so far this year, according to data released by the European Commission on Tuesday. Other traders were puzzled by a sudden jump in Danish barley imports to China.
Miners improve Australian shares; NZ cenbank keeps rates stable
Australian shares ended higher on Wednesday, buoyed by mining and health care stocks, while stocks in New Zealand held gains after the country's central bank kept the money rate unchanged for the 6th successive time.
The S&P/ ASX 200 index closed 0.3% higher at 7,848.500 points, its 3rd straight session of gains.
New Zealand's benchmark S&P/ NZX 50 index ended up 0.5% at 11,971.9200 points.
The Reserve Bank of New Zealand (RBNZ) played a straight bat to hold onto its cash rate of 5.50% and suggested interest rates require to remain high for longer to tame inflation.
We retain a view that the economy (New Zealand) is most likely to continue to underperform, assistance will likely move in a more dovish instructions over coming months, and the RBNZ can commence a reducing cycle around August, stated Andrew Ticehurst, a senior economist at Nomura, said in a customer note.
Internationally, traders acutely wait for the U.S. inflationary print for March, due later on in the day, which might offer a better idea of when the Federal Reserve might start cutting rates.
Equity markets will likely be delicate to any outside shift in rate cut expectations. As such, U.S. inflation information will be key, Tim Waterer, chief market expert at KCM Trade, stated.
In Australia, mining stocks increased 0.9% in tandem with a dive in iron ore prices.
Mining bellwether Rio Tinto rose 1.9%, its third successive sessions of gains, while BHP Group and Fortescue ended 0.7% and 1.9% higher.
Health care stocks jumped 1%, with heavyweight CSL rising 1.2%.
In contrast, financials shed 0.4%, with 2 of the so-called Big 4 banks losing between 0.1% and 0.8%. Westpac and National Australia Bank traded flat.
Energy companies inched 0.4% lower, with index heavyweight Woodside losing 0.9%, while smaller competitor Santos rose 0.7%.
(source: Reuters)