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Singapore light distillate stocks at record high, data shows
LSEG data on Thursday showed that Singapore's light distillate stocks reached a'record high this week. This was due to a 'deep contango -structure of?gasoline price, which encouraged storing amid lower demand. In a contango-structure, the prices for immediate delivery are lower than those for future deliveries. Enterprise Singapore released data showing that Singapore's oil products onshore inventory, held by up to 14 major oil companies and oil storage firms, rose by 1.496 millions barrels during the week ending February 18. The contango in the gasoline market is so deep that everyone would like to "roll" (sell their current positions to buy later contracts). This refers to the practice of buying futures contracts and selling those with expiring dates. The gap in gasoline prices between the immediate and the next-month contracts has been at its highest since February 2020. In February, light distillate stocks in the Singapore Strait rose steadily amid high supplies of gasoline and naphtha. However, demand for these products has remained lacklustre. Priti Mehta is a senior analyst at Wood Mackenzie. She said that the increase in gasoline supply was due to higher utilization rates in refineries. Another factor, however, is that demand for Lunar Year in China has not increased. Mehta said that Chinese exports could increase as a result.
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Nigeria's Tinubu, Germany's Merz talk security, power deal in phone call
Tinubu's office said that the German Chancellor Friedrich Merz and Nigerian President Bola Tinubu discussed deepening their cooperation in security, power, and infrastructure during a phone call. The two leaders spoke for nine minutes on Wednesday about reviving the presidential electricity project that had been stalled in Nigeria, involving German conglomerate Siemens. They also discussed Nigeria purchasing used German helicopters. Tinubu told Merz that Nigeria needs help upgrading its power transmission network, according to the President's office. A 2019 agreement between?Siemens and German banks to renovate transmission lines and substations for power distribution, was funded by German banks. The goal of the project was to reach 7,000 MW?reliable energy by?2021, and 11,000MW by 2023. It has been faced with regulatory, logistical, and financial challenges. Tinubu’s office said that Merz had said Siemens was going to deliver the work, and Deutsche Bank would finance it. Tinubu has also requested that Germany supply used helicopters for a boost in'reconnaissance, intelligence and operations in the Sahel where there is a 'worsening of insecurity? which is pushing south towards coastal West Africa. Since 1965, Nigeria and Germany enjoy diplomatic relations. Both leaders agreed to expand their cooperation in rail transport, creative industry?and skill development. Merz supported?plans to create a museum of African arts', according to the statement, but did not provide any further details. (Reporting and writing by Camillus Eboh, Elisha Gbogbo, Editing by Susan Fenton).
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Israeli strikes on Lebanon kill 10 including a senior Hezbollah leader
Two security sources told us that at least 10 people were killed and 50 injured in Israeli strikes in Lebanon's Bekaa valley on Friday. The Israeli military had claimed it had targeted Hezbollah in the Baalbek region. The strikes, among the deadliest in eastern Lebanon over recent weeks, risk testing an already fragile ceasefire mediated by the U.S. between?Israel's and Shi'ite Islamist Hezbollah. This has been straining due to recurring allegations of violations. In a press release, the Israeli military claimed that it had struck Hezbollah's command centres in Baalbek in eastern Lebanon's Bekaa valley. Sources said that a senior Hezbollah leader was among the dead. Hezbollah did not immediately comment. Israel and Hezbollah agreed to a ceasefire, mediated by the United States in 2024. The agreement was intended to put an end to more than a decade of cross-border firing that culminated with Israeli strikes which weakened Iran-aligned groups. The sides have exchanged accusations since then of ceasefire violation. U.S. officials and Israeli officials have "pressed" Lebanese authorities into reducing Hezbollah’s arsenal. Meanwhile, Lebanese leadership has warned that wider Israeli strikes could further destabilize the country already ravaged by political and financial crises. Separately the 'Israeli military' said it had also struck a Hamas control centre that militants used to operate in the Ain al-Hilweh region in southern Lebanon. Ain al-Hilweh, a Palestinian refugee camp located near Sidon, is overcrowded. Hamas issued a statement condemning the 'Israeli attack on Ain al-Hilweh' and rejecting Israeli assertions regarding?the target. The site, according to Hamas, belongs to the Joint Security Force of the camp tasked with maintaining the security. Reporting by Laila Basam and Enas Alashray; Editing and Rosalba o'Brien by Rod Nickel
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FTSE 100 drops as Rio Tinto disappoints, US-Iran tensions are a factor
London's FTSE 100 fell from record highs Thursday. Rio Tinto, the global mining company, was blamed for the decline after it missed its expectations on annual earnings. Meanwhile, simmering U.S.-Iran tensions kept investors cautious. Blue-chip index fell 0.7% by 1101 GMT after two consecutive sessions of closing at record highs. The domestic mid-cap FTSE 250 fell 0.5%. Rio Tinto's shares fell by 4.4% following the announcement of flat earnings for its mainstay iron ore division, which missed expectations. However, this was offset by a strong performance from its copper business. Investors around the world were worried as Washington and Tehran increased military activity in the oil-rich Middle East even though Geneva talks on Tehran's nucleo programme showed signs of progress. Investors looking to diversify from U.S. stocks that are being pressured by AI concerns have flooded into UK stock markets in recent days. London Stock Exchange Group, among other movers rose 0.7% following reports that activist investor Elliott Investment Management was pressing the exchange operator to?conduct a full review and?launch an 5 billion pound buyback ($6.76 billion). British Gas's owner Centrica dropped 5.3% from the top of the blue-chip index, after it warned that the profit forecast for 2026 at its energy trading arm was likely to miss. It also halted the share buyback program after reporting a 39% decline in annual profits. (Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Mrigank Dhaniwala)
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Global stock markets fall with earnings and US/Iran tensions at the forefront
U.S. Futures and European Stocks fell on Thursday, as investors focused on earnings of companies. Meanwhile, tensions between Iran and the United States kept the markets on edge and supported gold and oil prices. The?STOXX 600 Index in Europe fell 0.7% after disappointing earnings reports from planemaker 'Airbus' and miner Rio Tinto. The index reached a new record on the previous day, as investors were able to shake off concerns about artificial intelligence disrupting businesses with a rally of banking and defence shares. The volatility caused by fears of disruptions from A.I. continued to drive the price declines in the futures contracts for the S&P 500 index and the tech-focused Nasdaq. The trend appeared to be continuing. Wall Street surged on Wednesday after?Nvidia announced it had signed a multiyear agreement to sell millions of artificial-intelligence chips to Meta Platforms. Nvidia Meta and other tech companies such as Apple were trading lower at pre-market. Matt Britzman said that geopolitics played a role. The rising tensions between the U.S. and Iran are adding to the uncertainty. We're seeing this play out through higher oil prices that are dampening general sentiment. U.S. megacap tech stocks as well as sectors such as software and trucking have had a shaky week as traders tried to figure out which companies were most at risk of A.I. Despite a resilient global economy, and the rotation into other sectors, indices have traded at or near records highs all over the world. Chris Turner, global director of markets at lender ING said investors can take comfort from the minutes of Wednesday's Federal Reserve Meeting, which indicated that some policymakers are open to rate increases if inflation continues to be high. He said, "The Fed is talking about an economy that's resilient in the U.S. and good for global economic growth." "Equities are doing well in Asia." GEOPOLITICS & FED IN FOCUS Oil prices continued to rise after the?surge in the previous session as investors priced potential supply disruptions based on fears of a war between the U.S. The New York Times, CNN and other U.S. media outlets reported on the buildup of American forces around Iran. However, they noted that President Donald Trump has not yet decided what course of action to take. Brent crude oil futures were up 1.4% at $71.22 per barrel, after a 4.4% jump in the previous session. U.S. crude oil rose 1.2% to $66.09. Michael Every, senior strategist at Rabobank said that the balance of risk now favors a U.S. strike after Friday's market close. He added that an attack "is more likely to last for weeks than to be over by Monday morning". Gold, a traditional safe-haven investment, increased 0.3% to $4.992 per ounce. The dollar held its gains after rallying on the back of better than expected U.S. economic data and Fed minutes. The dollar index (which?tracks currency against six major counterparts) was flat at 97.71 last after rising 0.59% on Tuesday. The MSCI index of Asian-Pacific shares excluding Japan rose by 0.32% over the weekend, despite a thinned-out trading environment in some markets due to Lunar New Year. Reporting by Harry Robertson and Rae Wee from London; Editing by Kim Coghill and Shri Navaratnam, and David Holmes
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Eramet, a struggling miner, slumps following a 'disastrous 2025' capital increase
Eramet shares plunged by 22% in France on Thursday, after the company announced a huge drop in its annual earnings and that it was planning to sell assets and increase capital. The mining and metalurgical group announced on Wednesday a core adjusted profit of 372 millions euros ($439million), down 54% since 2024. This was due to a variety of unfavourable circumstances, from low prices to production setbacks. The company also announced that it would not pay dividends in the next two-year period, putting the shares on a course to their worst trading day ever since December 2018. Varun Sikka, an analyst from AlphaValue, said that the capital increase of 500 million euros and the possible sale of stakes were prompted by "sweeping corrective measures". This was also in response to a rise in debt. Sikka said in his research note that any improvement is unlikely without the support of recovering key end markets. The analyst added that the French government could also sponsor the cash call. Eramet has been thrown into a crisis of management after it dismissed former CEO Paulo Castellari, and suspended finance chief Abel Martins Alexandre in a matter of days.
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US automakers caught up in the crossfire of Trump and California EV battle
The legal battle between the Trump Administration and California over 'auto-pollution regulations' is about to come to a head. This will have huge financial implications for EV manufacturers including Tesla, and traditional automakers that rely on fossil fuel vehicles. California is fighting a move by congressional Republicans that would have allowed the state to implement its own emission regulations. California could force U.S. automobile manufacturers to adhere to two regulatory schemes that are diametrically opposite: President Donald Trump’s?anti EV policy, and California's pro EV regime which eleven other states have adopted. California wants automakers to be required to sell 100 percent EVs by 2035. It has set aggressive interim targets that will begin this year. Trump's administration has, on the other hand, eliminated federal EV incentives and subsidies, resulting in a nationwide crash of electric vehicle sales. California has been setting its own auto-pollution standards for decades, with bipartisan support from the federal government. During recent Democratic administrations these rules were largely in line with federal policies promoting EVs. Californian and federal regulations are now heading in opposite directions. Trump relaxed some emission regulations during his first term, only to have them reversed by Democratic president Joe Biden. In his second term, Trump has taken a scorched earth approach to federal EV assistance. Last year, Congressional Republicans eliminated a $7500 per-EV subsidy as well as penalties for automakers that failed to meet fuel efficiency standards. Trump's Environmental Protection Agency last week reversed a scientific finding from the Obama era that greenhouse gas emission endanger human safety -- which was at the basis of EPA vehicle pollution rules adopted in 2010. Trump's strategy is to end the California waiver, but California's lawsuit claims that Congress did it illegally. The federal court hearing in Oakland, California is set for Thursday. The administration has filed a motion dismissing the case. California argues that Trump's EPA, and Congress, used a sleight of hand to reclassify California’s waivers as "administrative rules" subject to reversal by the Congressional Review Act. The EPA has been stating in its California decisions for decades that the waiver "is not a rule", and the act does "not apply". This is a major point of California’s lawsuit. S&P Global Mobility, a data provider, says that if the Administration wins, traditional automakers will face less pressure to offer money-losing EVs to Californians and other states. These 11 states account for 29% (according to S&P Global Mobility) of new vehicle sales in the U.S. Tesla and other EV manufacturers could lose out on critical revenue by selling regulatory credits to automakers who use them as compliance. The California rules are a "unachievable regulatory wormhole" according to the Alliance for Automotive Innovation, an industry lobby group. The?Alliance for Automotive Innovation is an industry lobby group that argues the California rules would limit consumer vehicle choices and have called them an "unaccountable, impossible regulatory wormhole". Mike Murphy, a Republican strategist and co-founder of the advocacy group EVs for All America said that the California-federal dispute highlights how automakers are being "whipsawed by political changes that upend their models-development and production plans." Since Trump's election in 2016, automakers have written down $55 billion on their EV investments. He said, "I hear them all saying, 'This short termism is killing' us. "We've got a monkey in Washington and it makes planning very difficult." Taylor Rogers, a White House spokesperson, called California's suit "frivolous." She also said that Trump had "canceled unpopular subsidies for green energy which wasted Americans' tax dollars." CALIFORNIA RULES EMERGE IN SMOG CRISIS California set its own standards for vehicle emissions in the 1950s, as it struggled with severe air quality problems caused by industrial and automotive pollution. Los Angeles was also engulfed by thick smog. Congress gave California the authority to continue its own regulations in the Air Quality Act of 1968. The EPA was given the right to grant California a California waiver. Since then, both partisan administrations have granted California more than 100 waivers. In 2019, Trump’s EPA rescinded portions of a waiver via a formal rulemaking. This was a slower procedure that California also challenged before a federal court. In 2022, the Biden administration restored the waiver. In Trump's'second term, Republicans attempted a shortcut – killing the waiver via the Congressional Review Act. The Government Accountability Office, an independent agency which has traditionally ruled whether agencies were complying with the Act, concluded in March last year that waivers do not constitute rules, as they are a case-specific, personal determination, and not a broad application of general principles. Congressional Republicans ignored the GAO conclusion arguing that Congress had the authority to determine what constitutes a regulation. California filed suit the day after Trump signed the legislation. California Attorney General Rob Bonta said the case highlights the Trump administration's "contempt" for the law and its use of "fringe legal theories" to justify breaking it. They knew. They knew. "They did it anyway",?Bonta stated in an interview. He called the move a dangerous expansion of congressional review power. The EPA stated that "the only alleged 'contempt of the law' is California's." The agency stated that "we live in a democratic society, where Congress makes the laws", adding that Californian regulations would have "crippled American Industry" and increased consumer prices. COURT CHALLENGE LEAVES AUTOMAKERS LIMBO Many questions that have been raised in court cases have not yet been answered, so there are few case laws to guide the court's decision. Paul Libus, a Van Ness Feldman LLP attorney who specializes in'vehicle emissions policy' said: "The level and confusion of this situation is unprecedented." California's Air Resources Board has informed automakers they have the option to comply or not with their new standards. However, they are warned that if California wins in court, penalties could be imposed for non-compliance. CARB records indicate that many automakers have chosen to comply. California adopted the regulations originally in 2022 when it was projected that electric vehicle sales would take off in the United States. California faces challenges to meet its ambitious EV adoption goals, as consumer demand is waning. This raises questions about the realisticness of these targets. Last year, EVs made up 21% of new car sales in the state. This is a slight decrease from a previous year. CARB said that it would not enforce its EV sales target for this year due to the uncertainty surrounding its regulations. Murphy, a former Republican EV supporter, expects automakers will compromise with California regulators, because they can't afford to bet on Trump's rollback in pollution standards lasting beyond his administration, and they have to compete internationally. In markets such as China and Europe where regulations are tightening on vehicle emissions, EVs will be essential. He said that automakers are aware of the fact that "the drunken holidays with federal regulations is not likely to last."
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Reliance and Adani lead India's AI drive with plans to spend $210 billion
Reliance and Adani, two of India's largest conglomerates, are increasing their investments in?AI infrastructure and data. Reliance has committed about $110 billion while Adani has pledged $100 billion. Both companies want to establish India as a hub for AI. India offers tax breaks to foreign companies operating out of domestic data centres. It also takes measures to attract more AI talent. Mukesh Amani, chairman of Reliance Industries, said that cheaper computing would spur innovation. His company wants to apply the same strategy it used in 2016 to disrupt the telecom industry by slashing prices for data and expanding access. The plans were announced as executives from Google, Amazon, Meta Platforms, and Microsoft gathered at a major summit in New Delhi. This was in response to the increasing investment in India's AI ecosystem and cloud by Google, Amazon, Meta Platforms, and Microsoft. Reliance and Adani both benefit from data centres powered by renewable energy, since their own assets reduce their reliance on expensive grid power. By placing facilities near power plants, transmission losses are reduced and they're protected from rising electricity costs. Ambareesh Baliga is an independent analyst. He said that renewable-powered data centers are the most cost-effective option for companies in the long term. BETTING ON DATACENTRES India's role in the AI boom is limited, due to the lack of large-scale chip production. Data centres are the most viable entry point into the rapidly growing infrastructure market. Jio, a Reliance unit, is building multi-gigawatt AI-ready data centers, including one in Jamnagar, a western city, that is expected to add 120 megawatts in capacity by the second half of 2018. Adani Enterprises announced on Tuesday that it would invest $100 billion in data centres powered by renewable energy and AI. Aishvarya dadheech, chief investment officer and founder of Fident Asset Management, stated that Reliance is aiming to build an integrated AI stack in India. However, execution and monetisation are still key risks. $1 = 91.0870 Indian Rupees
India to sign mining pact with Mongolia soon, govt source states
India is anticipated to sign a. preliminary contract with Mongolia soon in the area of geology. and exploration, a senior Indian government official with direct. knowledge of the matter said.
Landlocked Mongolia is abundant in deposits of copper and coking. coal, and India is mainly based on imports to satisfy increasing. demand for the red metal used in power, building and. electrical cars in addition to coking coal for steelmaking.
India's cabinet has actually approved the MoU (memorandum of. understanding) and both countries are expected to sign it quickly,. the source said, declining to be determined as the considerations. are not yet public.
India's federal mines ministry did not respond to a Reuters. email seeking remark.
Mongolia's Ministry of Mining and Heavy Industry did not. right away respond to a Reuters e-mail seeking comments.
Business such as Adani, Hindalco and Vedanta have actually revealed. an interest in sourcing copper from Mongolia, the source said. All 3 business did not respond to e-mails from Reuters. seeking comment.
Both Indian and Mongolian officials are working out supply. paths for Indian companies to source copper and coking coal,. with India choosing the route from Vladivostok in Russia. in spite of the longer range, the official said.
China is convenient but we prefer the route from Russia,. the official said.
Relations between Asian giants India and China were strained. after a lethal military clash on their contested border in 2020. however have actually been on the repair since they reached an arrangement in. October to draw back troops from their last two stand-off points. in the western Himalaya mountains.
Unlike China, India has typically maintained close ties. with Russia.
Resource-rich Mongolia can provide superior grades of coking. coal, industry officials state.
In November, India's JSW Steel and state-run Steel. Authority of India
(source: Reuters)