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As sanctions threaten Russian supplies, Asia's refining margins are on the rise.
Analysts and trade sources reported that Asian oil refinery profits had risen to their highest level in 20 months. This was due to a strong diesel performance, which has been boosted by a tightening of the outlook following US sanctions against two major Russian suppliers. Singapore's complex refinery margin, a proxy of Asia's refining profitability rose to almost $9 a barrel Tuesday, a record high since February 2024. LSEG data shows that the margin was about $2 a barrel at the beginning of October. The global diesel market has been the main driver of strength in recent weeks, with a strong demand and tighter supplies. On Tuesday, the price of refining cracks used to refine 10ppm gasoil benchmarked at sulphur reached $26 per barrel. This is a record high for more than 1 1/2 years. The European market has followed a similar pattern, rallying due to supply concerns and benchmark diesel margins On Monday, oil prices rose to their highest level since mid-February of 2024. US SANCTIONS RUSSIAN OPEC EXPORTERS The markets were further boosted last week by U.S. Sanctions on Russian Oil Exporters Rosneft & Lukoil. In a recent research note, ING commodities strategists stated that "the latest sanctions against Russia threaten diesel flow as Russia exports approximately 1 million barrels of diesel per day." There is also a risk that Indian refiners will reduce their run rates if they cease to buy Russian oil. This would result in lower export volumes of middle-distillate from India", ING added. Diesel supplies from India were shifting to Europe before the latest sanctions as refineries reached peak maintenance and production dropped. According to June Goh of Sparta Commodities Senior Oil Market Analyst, the current diesel rally is a result of reduced Russian diesel exports as a result Ukrainian drone attacks and seasonal refinery turnarounds, along with limited Chinese clean products export quotas in Q4. "Also, the distillate arbitrages in the Arab Gulf and West Coast India are pointing East and tightly shutting into Europe. The diesel shortage in Europe is expected to be more severe, said Goh. The short-term sentiment was also boosted by the market talk that fewer spot shipments from Asian suppliers including South Korea China and Taiwan for November shipments. Other parts of the Barrels The profit on processing a barrel gasoline has risen nearly 30% to $13 per barrel this month, due to the tight supply caused by unplanned outages in Southeast Asia, while margins are narrowing in other regions as winter approaches, traders reported. Energy Aspects' monthly outlook on middle distillates stated that "Strong margins will keep refinery operations high and a rising OPEC+ supply, particularly medium sours, is expected to improve crude slate optimisation, and boost clean products yields." The margins on fuel oil and naphtha remained mediocre this month. Low-sulphur cracks are down, while high-sulphur cracks are ranging.
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Copper drops on profit-taking ahead of Fed meeting, US-China discussions
The price of copper fell on Tuesday, as investors held on to their gains following Monday's rally that led to a record-high. Investors are now focused on the Federal Reserve rate announcement and a meeting between U.S. president Donald Trump and his Chinese counterpart Xi Jinping. At 1015 GMT, the benchmark three-month copper price on London Metal Exchange fell 1.1% to $10.910.50 a metric ton. The metal reached $11,094 Monday, only a few cents short of its record high of $11,104.50. This was driven by the hope that Trump and Xi would reach a deal on Thursday to ease U.S. China trade tensions. Traders said that investors were making profits following the rise in copper prices. WORSE DOLLAR SUPPORTS There seems to be disappointment among bulls. Tom Price, Panmure Liberum analyst, said that copper "just keeps hitting a wall". He noted how open arbitrage to send metal to the U.S. continues to increase Comex inventories. . Price stated that "no one is concerned about the short-term supply." The LME cash copper contract was almost $24 cheaper than the forward three-month contract There is little immediate need for metal. The Yangshan Copper Premium is a premium in China The price of copper per ton was $35, down from $58 in late September. Brokers expect the Fed will trim its short-term lending rate by 25 basis point at its meeting that ends on Wednesday. Chair Jerome Powell could also indicate whether an additional reduction in December is likely. Price noted that the U.S. shutdown of the government is a drag on the dollar. Dollar-denominated commodities are more affordable to holders of other currencies when the dollar is weaker. Price explained that there were three factors which should push copper prices above their previous record. Price said, "Even if I'm a bearish on the long-term outlook for Copper, I think that this could be a pretty buoyant few weeks." Aluminium dropped 0.6%, to $2.856 per ton. Zinc fell 1.1%, to $3.020.50. Nickel fell 0.7%, to $15.165. Tin fell 0.2%, to $35.820. Lead lost 0.4%, to $2.016. (Reporting from Tom Daly. Lewis Jackson and Dylan Duan contributed additional reporting. Sherry Jab-Phillips, Mark Potter and Sherry Jacob Phillips edited the article.
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Police report that Israeli forces killed three Palestinian militants on the West Bank
A police spokesperson confirmed that Israeli security forces had killed three Palestinian militants on Tuesday in the West Bank occupied. Hamas, a militant Palestinian group, said that two of the three men died in an encounter with Israeli forces. According to Israel's police, and military, the Israeli forces fired at militants planning attacks near the Jenin Refugee Camp, then struck them by air. The Jenin camp has been left in ruins and abandoned after a large-scale Israeli military operation in January. This area has historically been a stronghold for militant groups such as Hamas and Islamic Jihad. Reporting by Maayan Loubell in Jerusalem, Nidal Al-Mughrabi near Jenin and Raneen Sawafta in Cairo; Editing and production by Kim Coghill & Hugh Lawson
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Delhi uses cloud seeding for rain and pollution control
Manjinder Singh Sirsa, the Environment Minister in Delhi's capital territory, said that authorities began to seed clouds in the city on Tuesday in order to bring artificial rain in and reduce pollution levels. The city has been struggling with poor air quality for several days. This method aims to increase rainfall by adding chemical particles around the water droplets that form in clouds. This is the first attempt in the Indian capital. Although cloud seeding has been used by several countries to increase rain and improve air quality, or to water crops during a drought, it was not until now that the technique had been tried. Studies have shown mixed results on the effectiveness of cloud-seeding. Sirsa stated that the Indian Institute of Technology believed rainfall could occur anywhere between 15 minutes and four hours after the seeding procedure, in any amount. He said that if the trials are successful, then a long-term strategy will be implemented until February. Images shared by IIT-Kanpur show substances being released as flares are attached to an airplane while it is flying in a cloudy atmosphere. Delhi and the surrounding areas are susceptible to pollution each winter, as the cold, heavy air traps dust from construction, vehicle emissions and smoke from fires in crops, causing respiratory problems for many of Delhi's 20 million residents. According to the Central Pollution Control Board (CPCB), an air quality index between 0 and 50 is considered 'good.' The air quality in the city remained'very bad' on Tuesday afternoon with a reading 304. Manindra Agrawal is a scientist from IIT-Kanpur. She said that artificial rain caused by cloud seeding could reduce pollution by up to 50%. However, it may be necessary to repeat the process. "If it rains pollution will come down (but) it'll rise again because... the source hasn't gone." "Whenever there is cloud cover, you have to repeat the procedure," he said. (Reporting and editing by YPrajesh, Kim Coghill, and Sakshi Dayal)
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German economist: US sanctions against Russia exclude Rosneft Germany
The German economy minister said on Tuesday that U.S. officials had written assured that Rosneft's German assets would not be subject to new energy sanctions, as they are no longer controlled by Russia. Katherina Reiche, Economy Minister, said that the United States released a "Letter Of Comfort" yesterday night acknowledging the separation of Rosneft Germany's operations from its Russian parent. Germany sought clarification from Washington following the introduction of sanctions by President Donald Trump, which prohibit western banks and clients from engaging in business with listed Russian companies. Berlin argued that the refineries are under German state trusteeship from 2022 and "decoupled" (from the parent group) while essential to the nation's supply of fuel. The PCK refinery, located in Schwedt and one of the largest in Germany, accounts for more than 12% of the fuel processing capacity of the country. PCK Schwedt is a major employer for Brandenburg. The region has seen a rise in support for the extreme right Alternative for Germany party (AfD). (Written by Ludwig Burger and edited by Kirsti Knolle).
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Japan's SoftBank and other heavyweights are eyeing a $550 billion US investment package
A factsheet released by the U.S. and Japan on Tuesday showed that around 20 companies have expressed an interest in projects which could contribute to Tokyo’s commitment to invest $500 billion in the United States under a trade deal. In a July deal, U.S. president Donald Trump agreed to lower tariffs on Japanese auto imports and other goods. The agreement also included a Japanese commitment to invest $550 billion in U.S. project. According to a list of possible projects, SoftBank Group, Mitsubishi Electric, and Hitachi are among the companies interested in participating. The list includes energy, AI infrastructure, and critical minerals. It is estimated that it could represent an investment of up to $400 billion. Japan's investment package includes equity, loans, and loan guarantees by state-owned agencies. The list was released after President Donald Trump and Japanese Prime Minister Sanae Takayichi met in Tokyo, Japan on Tuesday to sign deals relating to trade and rare Earths. Westinghouse plans to build small modular reactors, pressurized water reactors, and other reactors worth up to $100 billion. Japanese companies such as Mitsubishi Heavy Industries, Toshiba, and IHI may be involved. GE Vernova would be able to build small modular reactors, and provide power equipment if Japanese companies were involved. According to the list, SoftBank's founder and CEO Masayoshi son, who met with Trump in person, is interested a $25 billion development project for large-scale infrastructure. Panasonic and Carrier can build energy storage systems. Murata, TDK, and Fujikura are also interested. (Reporting and editing by Clarence Fernandez, Thomas Derpinghaus, and Makiko Yamazaki)
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US stock futures stable after recent rally; focus on large corporate earnings
U.S. index futures hovered around record highs Tuesday. After a rally the previous session, investors focused their attention on the major corporate earnings as well as the much-anticipated Federal Reserve decision that is expected later this week. The third quarter earnings season is about to get busy for market participants. At least 172 companies from the S&P500 are scheduled to report results. Popular names like UnitedHealth, UPS Royal Caribbean, D.R. Horton, JetBlue, PayPal and others are expected to report prior to the bell. Later in the week, Microsoft, Alphabet Apple, Amazon, and Meta will all be expected to announce earnings. The bull market rally on Wall Street, which celebrated its third anniversary this month, has been bolstered by artificial intelligence. Traders will be looking at how companies are monetizing technology to ensure that spending continues to increase. Fed officials will discuss interest rates later today and the plans to end "quantitative tightening", which Jerome Powell hinted earlier. The central bank will announce its decision on Wednesday. The U.S. Government has been closed for almost a month. This delays important economic data, and forces traders to rely solely on corporate and private announcements. Various sources claim that Amazon and Paramount are the two latest companies to announce layoffs. Separately the Conference Board consumer confidence report and surveys from the Richmond Federal Reserve and Texas Federal Reserve are due to be released Tuesday. The majority of major brokerages expect that the U.S. Central Bank will lower borrowing rates by 50 basis points before the end of the year. At 5:44 am. At 5:44 a.m. ET, Dow E Minis dropped 10 points or 0.02%. S&P 500 E Minis dropped 3 points or 0.04%. Nasdaq E Minis rose 6.75 or 0.03%. Rambus, a semiconductor licensee that missed quarterly profit targets, was among the top movers. NextEra Energy gained 2,6% after it reached an agreement with Google to produce nuclear energy. Qorvo's shares jumped by 10.2% following a report that rival Skyworks Solutions held discussions in recent months about buying the smartphone chipmaker. Investors believe that U.S. president Donald Trump will reach a long-awaited deal with China on his Asia tour. Trump just signed an agreement with Japan for the mining and processing of rare earths and critical minerals. U.S. listed shares of rare-earth miners like Trilogy Metals, NioCorp Developments, and NioCorp Developments fell 1% and 2.6% respectively. They looked set to continue Monday's losses after a U.S. China truce that halted tariffs and export restrictions on minerals. The recent rally in gold and silver was largely due to optimism about trade deals. Gold Fields, Harmony Gold and other precious metals miners listed in the United States were affected by the declines. Both lost over 4%. (Reporting and editing by Pooja Deai in Bengaluru, Johann M Cherian)
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Mexico's Cemex exceeds expectations in the third quarter thanks to higher prices and cost reductions
Mexico's Cemex beat expectations to post a 19% increase in core earnings for the third quarter as it increased prices and benefitted from cost-cutting initiatives. The cement manufacturer announced on Tuesday that its earnings before interest taxes, depreciation, and amortization (EBITDA), for the period July-September were $882 million, which was comfortably higher than an LSEG consensus of $858 millions. While cement sales volume remained flat, aggregates like sand and stone and ready-mixed concrete also declined slightly. Around $90 million was saved through cost-cutting, including reductions in headcount. Cemex reduced its workforce to just under 40,200 workers in the third quarter. This is a 9% drop from the same time last year. The net income fell 35%, to $264 millions. This was mainly because of one-time gains from the previous year resulting from the sale operations in Guatemala. Cemex reported that without this factor, the net profit rose 8%. Cemex, under the leadership of CEO Jaime Muguiro who assumed the role in April, after his predecessor retired from the company, has been working to divest non-core assets in order to focus on its aggregates operations in the United States. In July, Muguiro announced that more divestitures would be made.
German union on VW: 4-day week 'possible', will think about all options
Germany's largest trade union, which sits on Volkswagen's supervisory board, said on Thursday it will leave no stone unturned in coming up with options to the carmaker's dangers of plant closures, with a. fourday week as one alternative.
Volkswagen said on Monday it was considering. taking the extraordinary step of closing factories in Germany. and ending job warranties at six of its plants in a drive to. deepen a 10 billion euro ($ 11 billion) cost-cutting strategy.
Asked if the union would think about a four-day week as an. alternative option, Christiane Benner, chair of IG Metall. nationwide, said it was imaginable. We will leave no concept. undiscovered, she said.
Still, it was impossible to set out comprehensive proposals. without more info on what services the business was. proposing, she added.
We need forward-thinking ideas on where capacity can be. discovered, Benner stated. VW has actually made it through tight spots. in the past.
Thorsten Groeger, head of IG Metall for the Lower Saxony. region where Volkswagen is based, said contracts struck between. the company and unions throughout previous crises were designed. specifically to get the carmaker through tight spots. and should not be tossed overboard in this one.
As part of another cost-cutting drive, board member Peter. Hartz agreed with unions under then CEO Ferdinand Piech and the. works council to introduce a four-day week of 28.8 hours from. 1994 onwards, a 20% decrease in working time with a smaller sized cut. in pay.
Commonly viewed as an ingenious model to conserve 30,000 jobs at. its 6 German plants, the two-year contract was adapted in. subsequent years up until management decided in 2006 it was harming. competitiveness and moved far from it.
Volkswagen executives stated on Wednesday at a jam-packed personnel. conference in Wolfsburg that it has maybe one, 2 years to turn. its main cars and truck brand around to survive electrification.
(source: Reuters)