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Oil prices rise 1% following US tariff-driven selling
The oil prices increased by more than 1% Tuesday. This is a rebound after recent heavy losses, mainly due to fears that U.S. Tariffs could depress demand or lead to a recession. Brent crude futures increased 81 cents or 1.26% to $65.02 a barrel. U.S. West Texas intermediate crude futures increased 92 cents or 1.52% to $61.61 at 0051 GMT. Oil prices fell 2% on Monday, approaching a four-year record low. This was due to concerns that the latest tariffs imposed by U.S. president Donald Trump could push global economies into recession, and reduce energy demand. The markets, however, expect a possible limit to the downward trajectory for oil prices. Trump claims that tariffs of at least 10% on all U.S. imported goods, and targeted rates up to 50% would help revive the U.S. industry base. He says it has declined due to decades' worth of trade liberalisation. Many countries, such as China, the second largest economy in the world after the U.S. have announced plans to reciprocate tariffs. Trump has said that he will impose more tariffs against China if Beijing doesn't withdraw its countermeasures. Tony Sycamore of IG said that if China were to remain firm, its total tariff rate for imports into the U.S. could reach 104%. This would likely trigger a further deterioration of risk sentiment and steep falls in global stock markets, as well as accelerate the pace at which the global economy is heading towards recession. The market expects a weak demand for crude oil. A preliminary poll conducted on Monday showed that U.S. crude and distillate inventory levels were expected to rise by an average of 1.6 million barrels last week. Analysts estimate that the break-even cost for oil production in America, the world’s largest oil producer, is around $60 per barrel. This could set a ceiling on how low oil prices can go if some decide to reduce investment and drilling. If prices continue to be low, which is likely, this would lead to a slowdown in the growth of output and a fall in U.S. production from its current level at 13.4 million barrels / day. Eurasia Group stated in a report that the reduced activity is likely to support WTI prices in the $50s. (Reporting and editing by Muralikumar Aantharaman, Jacqueline Wong, and Katya Glubkova from Tokyo)
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China's state-owned firms pledge to increase share purchases in order to stabilize the market
On Tuesday, several Chinese state-owned companies pledged to increase their share investments as Beijing intensifies efforts to stabilize the stock market that has been soaring due to U.S. trade tariff woes. China Chengtong Holdings Group, and China Reform Holdings Corp made their announcements after Chinese state fund Central Huijin announced the day before that it would increase its shareholdings in order to promote stability on the markets. China's benchmark stock index fell 7% on Sunday amid investor concerns about the possibility of a trade war that could cause damage and a global economic recession. Washington imposed tariffs of 34% extra on China last week, and China responded with 34% additional levies against U.S. imports. Chengtong's investment units are increasing their holdings of stocks and exchange-traded funds (ETFs), to ensure market stability. The state investment firm stated in a press release that it was "firmly optimistic" about the growth prospects for China's capital market. It also pledged to support the high-quality growth among Chinese listed companies. China Reform Holdings Corp., or Guoxin as it is also known, announced in a separate press release that its investment unit would increase holdings of tech companies, ETFs and state-owned firms, utilizing a refinancing scheme to buy back shares. The initial investment will be 80 billion Yuan ($10.95billion). China Electronics Technology Group is another state-owned holding company that has announced it will increase share buybacks of listed units in order to boost investor confidence.
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US Health Department to issue new recommendations on fluoride
A spokesperson announced on Monday that the U.S. Department of Health and Human Services would reconvene an independent panel of experts in order to make a recommendation regarding fluoride being added to drinking water. Since decades, the use of this mineral in water, which strengthens tooth enamel and promotes dental health, is a controversial political issue. A spokesperson for HHS said that "HHS will reconvene the Community Preventive Services Task Force in order to study fluoride and make new recommendations on it." This statement was made in response to an Associated Press article quoting Robert F. Kennedy Jr., Secretary of Health and Human Services, saying that he would tell the Centers for Disease Control and Prevention not to recommend fluoride for drinking water at an event held in Salt Lake City. According to an EPA announcement, the U.S. Environmental Protection Agency, in coordination with HHS will also review the new scientific information regarding the potential health effects of fluoride, as an initial step towards deciding standards for its inclusion. Administrator Lee Zeldin stated this at the same event. Utah is the first U.S. State to have banned the use of fluoride as a water treatment agent after Governor Spencer Cox passed legislation in this regard last month. The American Dental Association has opposed the Utah law, and continues to support community water fluoridation as a way to prevent tooth decay. The U.S. Public Health Service suggests that fluoride levels in drinking water should not exceed 0.7 milligrams per liter. It is known that levels above 1.5mg/l, or twice the recommended limit of that level, increase health risks, such as thyroid disease, bone fractures and nervous system damage. The EPA has set a limit of 4.0 mg/L as the enforceable limit. A federal judge in California issued an order to the EPA on September 20, 2024 to tighten its regulations. The judge said that the compound poses a risk to children, even at the levels currently common across the country. Kennedy, who opposes adding fluoride in public water systems has claimed that, despite the lack of conclusive proof, water fluoridation is linked to numerous health problems including cancer. According to CDC data, as of 2022, fluoride is present in the water of 63% of Americans. Ahmed Aboulenein, Washington; Jasper Ward, Additional Reporting Editing by Caitlin and Matthew Lewis
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Maple Leafs extend division lead with Panthers' loss
Toronto Maple Leafs are aiming for a win against the Florida Panthers in Sunrise, Fla. on Tuesday night. This would help them tighten their grip on first place in the Atlantic Division. The Maple Leafs (46-25-7, 98) were four points in front of the Tampa Bay Lightning (94 points), and six points ahead of Carolina (44-29-4). Toronto will face Tampa Bay on Tuesday. Last Wednesday, the Maple Leafs won their first game against Florida in three years by beating the Panthers with a short-handed team 3-2 at Toronto. The Panthers lost 2-1 to the Detroit Red Wings in Detroit on Sunday. It was their fifth consecutive loss as they played with a reduced roster. Aleksander Barkov, Matthew Tkachuk, Nico Sturm, Sam Reinhart, Sam Bennett, and Gustav Forsling were all missing. This trio rested on Sunday. Panthers coach Paul Maurice stated, "You want to get every advantage, home ice, and all of that, but you have to heal these guys." We have to give ourselves the chance to play in the playoffs physically and our schedule will not allow that at this time. Rasmus Asplund Jesse Puljujarvi, and Matt Kiersted have been recalled by Charlotte's AHL affiliate and thrust into the fire on Sunday. Kiersted's first NHL appearance was since December 23, 2022. "We had some guys come in, and they did a great job," said Panthers' forward Mackie Samoskevich who was credited with an assist. It was almost seamless. "They played well and fitted into the game immediately." Anton Lundell's goal at 19:20 in the third period saved the Panthers from being shutout for two consecutive games. The Panthers had been defeated 3-0 by the Ottawa Senators in their previous game. Maurice commented, "It's good to think about how we measure ourselves by what we give up regardless of who is in the lineup." Samoskevich stated, "I would not say that it matters where we finish." You have to beat everyone if you want to win the championship. It's not about opening our game. I think we need to stay tight and work on our forecheck. This is what works during the playoffs. "I think we're already doing it." The Maple Leafs won 5-0 at home against the Columbus Blue Jackets on Saturday, following their victory over the Panthers. William Nylander scored twice, as did Nicholas Robertson. Mitchell Marner's 70th career-best assist extended his point streak to seven (three goals and eight assists). Toronto goaltender Anthony Stolarz said, "I thought we were very disciplined in our third period. We didn't just sit back." Stolarz made 27 saves and earned his second shutout this season, as well as his 10th career. We continued to forecheck, press their defence and force them turn pucks over, and that allowed us open ice to score some goals. Defensively, I think we were fantastic. We didn't give up any opportunities." Toronto had lost both previous meetings with Columbus. Toronto's playoff performance was disciplined. Craig Berube, the coach of Toronto, said that "staying in tight games is important. It's checking tight." "Not forcing it, not opening it up and then getting frustrated. Then taking over in the third." "That's what I love most about my life right now." Toronto's Jake McCabe, and David Kampf took part in the optional practice at the rink on Monday. However, they will not be traveling to Florida. Field Level Media
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Brent futures and options volume surpasses pandemic record, as oil market reels
Brent crude futures contracts and options traded on the Intercontinental Exchange, or ICE, reached record volumes on Friday. This was higher than the COVID-19 pandemic levels as investors prepared for a trade war around the world and OPEC+'s oil production increases. The end of the last week saw oil prices plummet to their lowest level in four years, the biggest weekly drop since a year-and-a-half. According to ICE, market participants traded 4.067 millions ICE Brent futures contracts and options, breaking the previous record of 4.063 million set in 2020 when the global pandemic shook energy markets and sent traders scrambling, as oil demand shrank. The U.S. president Donald Trump shocked the financial markets by imposing a new tax on Wednesday. Tariffs on sweeping goods Some countries, such as China, face significantly higher duties on imports. Oil prices fell further after the Organization of the Petroleum Exporting Countries (OPEC+), which is a group of oil-exporting countries and their allies, decided to move forward with plans for increased production. The group now plans to return to the market 411,000 barrels of oil per day in May. This is up from the 135,000 barrels per days that were originally planned. Brent traded as low as $62.52 per barrel on Monday as Trump vowed to impose even higher tariffs against China, and major banks increased their recession risk estimates. Benchmark Brent, as defined by the ICE is a barometer of three-quarters of all crude oil traded internationally, and therefore a good indicator of the health of oil markets. "People were waiting to enter the market, but once they saw some of the tariffs and OPEC's news unfolding, they began to take a negative position," said Alex Hodes. He is the director of marketing strategy at StoneX, a financial services firm. OIL INVESTOR WHIPLASH Analyst Giovanni Staunovo of UBS said that in the days leading up to Trump's announcement, the oil market was focused on the growth of demand, low oil stocks, and the threat that sanctions against Russia, Iran, and Venezuela could disrupt supply. Trump warned on March 30, that he would impose secondary tariffs ranging from 25% to 50% for buyers of Russian crude oil if he believed Moscow was blocking him in his attempts to end the conflict in Ukraine. According to LSEG, in the week leading up to April 1, money manager positions on ICE for Brent crude futures or options were at their highest level since April 30, 2024. Brent futures closed at an all-time high of $74.74 per barrel on March 31. This helped to boost bullish sentiment. Staunovo stated that "now the focus is on how much the global economy will weaken as a result the trade war, and how much the oil demand growth will slow over the next few months." Hodes, of StoneX, said that he expects this week's traders' data to be more bearish. (Reporting and editing by Nia William in Houston, Georgina McCartney from Houston)
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Brazil's Energy Minister asks Petrobras CEO about diesel price reduction
Sources with knowledge of this matter said that Brazil's Mines and Energy Minister has asked Petrobras to consider a new reduction in the average price for diesel sold to Brazilian distributors. Sources said that Minister Alexandre Silveira had cited recent drops in oil prices as well as the stability of the US dollar to justify a price reduction for Petrobras Chief Executive Magda Chabriard. The talks took place last week, they added. CNN Brasil had previously reported Silveira's demand. The request is made as oil prices are falling due to President Donald Trump's tariffs, which could cause economies all over the world to go into recession and reduce the demand for energy. Petrobras announced its global tariffs on April 2, just one day before Trump. Diesel prices are being cut The first time since 2023 that fossil fuels have been reduced by 4,6%, or R$0.17 a liter. The Brazilian government is constantly pressuring Petrobras to lower fuel prices for distributors in an effort to lower the cost of living for Brazilians as well as boost Lula's popularity. Petrobras has recently increased its diesel prices above the import parity, and they were 5% higher on Friday according to Abicom.
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US talks to Pakistan about tariffs, minerals and immigration
The State Department and Pakistani foreign ministry released separate statements confirming that U.S. secretary of state Marco Rubio had spoken to Pakistani Foreign minister Ishaq dar on Monday. They discussed tariffs, trade relationships, immigration, and the prospects for engagement in relation to critical minerals. Last week, President Donald Trump announced that he will impose a baseline 10% tariff on all imports into the U.S., and even higher duties on other countries. This includes some of Washington's largest trading partners. The announcement rattled global markets, and confused U.S. ally. The Trump administration imposed 29% on Pakistan. The State Department reported that "they (Rubio, and Dar) discussed U.S. bilateral tariffs against Pakistan and how to progress towards a fair and equal trade relationship." The Secretary expressed his interest in increasing commercial opportunities for U.S. companies." The Pakistani Foreign Ministry said that Rubio "recognised the desire to collaborate in trade and investments with Pakistan, particularly critical minerals". The Trump administration also uses the prospect of engagement with other countries over critical minerals. As an example, the US is trying to reach a deal with Ukraine over vital minerals as part of discussions related to Russia-Ukraine War. Washington said that it was open to exploring partnerships for critical minerals with Congo, and helping end the conflict in the east of this African country. The State Department reported that Rubio stressed the importance of Pakistani cooperation with the U.S. in law enforcement, and the fight against illegal immigration. Last month, Pakistan highlighted their cooperation with Washington in countering extremism following the arrest of Mohammad Sharifullah. The U.S. has blamed him for an attack 2021 on its troops at Kabul Airport, during a military operation on the border with Afghanistan. The Pakistani foreign ministry confirmed that Rubio and Dar had discussed the Afghan situation. Reporting by Kanishka Sing in Washington, edited by Alistair Bell
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Chile's Codelco increases copper production, Chairman bullish despite trade conflict
Codelco, Chile’s state-owned copper manufacturer, increased production in the first quarter of 2025. Trade war escalates Maximo Pacheco, chairman of the board, said that there is a growing relationship between China and the U.S. The world's largest copper producer recorded slightly higher production in the first quarter than the same period of 2024. It is also maintaining its production guidance, even after a nationwide power outage in Februrary crimped the output. In an interview given ahead of the CESCO/CRU conferences on the copper industry in Santiago, Pacheco stated that "we will have a quarter which will be slightly better than the first of last year." Codelco aims to produce between 1.37 and 1.4 millions tons of copper in this year. This will be the second year that production has increased after a 25-year low was reached in 2023. Pacheco said that he was confident in the long-term demand for copper due to the need of global energy transformation, despite the short-term volatility on commodities markets after the sweeping tariffs implemented by U.S. president Donald Trump. Pacheco stated, "I'm convinced that long-term fundamentals remain very strong and difficult to change." "I understand the nervousness of the markets and people who are experiencing this turbulence. But we operate on a different circuit," Pacheco said. Codelco is trying to remain flexible as global demands fluctuate, he said. Last week, the company said that it was sending more spot sales into the U.S. as buyers were stockpiling copper in anticipation of possible tariffs. He said, "We must have a flexible and diversified vision with a good service for our clients." Codelco also wants to strengthen its ties with India following a recent visit by President Gabriel Boric and an agreement with Adani Group. Pacheco stated that "we will continue to grow our business in India". Pacheco said that the company has also been in contact with Saudi Arabia. The country is very interested in lithium and copper, which are both essential for electric vehicle manufacturing. They have a great deal of interest within Chile and in Codelco. Codelco lost 5,000-7,000 tons of production due to the blackout that lasted several hours in Chile during February. However, the miner recovered the loss, according to the official. He said: "It does not mean the production will be lower than last year." (Reporting and editing by David Gregorio, Fabian Cambero, Daina Beth Solon)
Copper prices rise after China's stockpiling plans revealed
The copper price in London rose on Friday and hovered near the psychological $10,000 mark, following a report by media that China intends to increase its strategic reserves this year of key industrial materials including cobalt.
Bloomberg News reported that the National Food and Strategic Reserves Administration (NFSRA), which manages official commodity stockpiles and inquires about prices and bids for metals, did so without providing details on volume or timing.
As of 0303 GMT, the benchmark three-month price for copper at the London Metals Exchange was up by 0.3%. It now stands at $9,970 per metric ton.
A trader stated that the lack of specifics in the news about strategic metals buying has had little impact on today's metals prices.
The dollar strengthened, helped by the U.S. Federal Reserve saying that it has no immediate intention to lower interest rates.
After gaining 0.36% Thursday, the dollar index increased by 0.03 at 0238 GMT to 103.82.
The dollar price of metals increases when purchased with other currencies.
LME aluminium increased 0.3% to $2.666 per ton. Lead was up by 0.1% at $2.057.5. Zinc gained 0.5% at $2.932. Tin was down by 0.1% at $35,310. Nickel price fell 2.0% to $16,240.
SHFE copper rose by 0.2%, to 81.540 yuan (11,252.64) a ton. SHFE aluminium was unchanged at 20,845 Yuan a ton. Zinc increased 0.6%, to 23.895 Yuan. Lead was down 0.5%, to 17.590 Yuan. Nickel lost 0.3%, to 129.890 yuan. Tin rose 1.0% to 281,620 Yuan. (1 Chinese Yuan = 7.2463 Chinese Renminbi)
(source: Reuters)