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Sources say that Pakistan is considering US oil imports as a way to reduce the trade imbalance.
According to a source involved in the proposal as well as a refinery executive, Pakistan may import crude oil for the first to time from the United States to counterbalance a trade deficit that led to higher U.S. duties. As President Donald Trump's import duties shake economies and markets, countries are scrambling for ways to reduce their U.S. duty burdens. This includes buying more U.S. gas and oil. A government source involved in the proposal made to the Prime Minister to purchase more U.S. crude said, "It's one of the products that are being reviewed before a delegation leaves for the U.S. It is being actively considered. "We are looking at the opportunities and structure, but it has to be approved by the PM," he added. Trump imposed a baseline 10% tariff on all imports into the U.S., and increased duties on dozens more countries. Pakistan will face a 29% duty due to its $3 billion trade surplus with the U.S., but this is subject to Trump's 90-day pause announced last week. The refinery executive said that they would buy U.S. oil equivalent to Pakistan’s current imports, which is about $1 billion worth of oil. Sources declined to name names as the proposal was still in its early stages. The Pakistani petroleum ministry didn't immediately respond to an inquiry for comment. Data from analytics company Kpler revealed that Pakistan imported 137,000 barrels of crude per day in 2024. Most were light grades, mainly from the Middle East. Saudi Arabia and United Arab Emirates were its main suppliers. Data from Pakistan's Central Bank showed that oil imports totaled $5.1 billion by 2024. Saudi Arabia, via the Saudi Fund for Development, extended to Pakistan a $1.2billion financing facility in February for the importation of oil products for one year. Since 2019, the SFD has given Islamabad approximately $6.7 billion for oil products. Pakistan had said it would send a delegation to the U.S. to negotiate new tariffs in the weeks ahead, before Trump's partial tariff suspension last week. To reduce trade surpluses, several big energy importers want to buy more oil from the U.S. The Indian state-owned gas company GAIL India Ltd. issued a tender last Friday to purchase a 26% share in a U.S. LNG project and import LNG. Japan, South Korea, and Taiwan are also considering participating in an LNG development in Alaska, the U.S. Reporting by Ariba Sharif in Karachi, Editing by Florence Tan and Tony Munroe. Saad Sayeed.
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Kuna reports that Kuwait has begun the merger of KNPC and KIPIC state oil companies.
Kuwait is taking steps to merge its two state-owned oil companies, reported the news agency Kuna on Tuesday. The OPEC producer wants to restructure their energy industry. Kuwait National Petroleum Company (KNPC) plans to acquire Kuwait Integrated Petroleum Industries Company (KIPIC), Kuna reported citing KNPC Chief Executive Officer Wadha Al-Khateeb. KIPIC is in charge at Al Zour Refinery, while KNPC oversees Kuwait's refinery industry. Al-Khateeb, cited by Kuna as saying that the rapidly changing global oil and gas industry places a huge responsibility on the energy sector of a country to adapt to and enhance such changing dynamics. Kuna reported that she also reaffirmed Kuwait's commitment to meeting its obligations to clients and maintaining growth, while maintaining Kuwait's position as an international energy industry. Brent crude oil prices fell by 20% in a week, reaching a 4-year low. Since then, prices have recovered a bit to around $66 per barrel. Kuwait Petroleum Corporation CEO Sheikh Nawaf Saud al-Sabah said to reporters in January that Kuwait's daily production capacity was over 3,000,000 barrels. Last year, the wealthy Gulf state announced that it had made a huge oil discovery. The estimated reserves are 3.2 billion barrels. (Reporting and editing by Gerry Doyle, Christopher Cushing and Hadeel al Sayegh)
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Banks vote for loosening climate coalition membership requirements
Chair of the world's largest bank coalition, which is working to combat climate change, has announced that it will be removing some of the more strict membership rules in order to reflect the slower pace of change within the real economy. Net Zero Banking Alliance, a UN-backed coalition that promotes climate action in financial services, has canvassed its members about changes to the rules it follows. This is despite the withdrawal of many of the largest banks from the coalition and the United States leading calls for abandoning climate action. The banks voted to abandon the more strict target of aligning all sector financing to 1.5 degrees Celsius over pre-industrial levels by mid-century, and replace it with an ambition that is more flexible to align their business with a target well below 2 degrees Celsius. Changes reflect the fact that real economic progress has not been as rapid as expected, and policy and technological advances haven't occurred at the pace predicted by banks and asset managers when they first declared collective action on climate change at COP26 Glasgow. Shargiil Bahir, Executive Vice President and Chief Sustainability Officer at First Abu Dhabi Bank, said that "the knowledge we had about what was possible in 2021 has been very different from where we are now." He cited housing and aviation, as two examples. "Some industries are not transforming as quickly as we anticipated four years ago. Either the technology has not moved as fast as expected or the policymaking has not moved as fast," said the expert. Over 100 member banks of the group have already set sector targets aligned with 1.5 degrees, but to increase its numbers the group is looking to attract banks from countries that are not aligned with 1.5 degrees. Bashir explained that the overhaul represents NZBA’s next phase, as it transitions from being primarily an organisation which sets targets to one which assists banks in implementing those changes via webinars, sectoral documents and other capacity building activities. Bashir stated that the financial sector will discuss how it can use different accounting methods to calculate or reduce planetary warming emission, such as avoided emissions and carbon markets. Over 80% NZBA members cast votes, and 90% were in favor of the proposals. (Reporting and editing by Stephen Coates; Virginia Furness)
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IEA: Russia's oil export revenues down 21% y/y in March
The International Energy Agency reported on Tuesday that the revenue Russia received from crude oil sales and oil products fell by 21% compared to a year ago, falling from $16,29 billion to $14.29 Billion. The report also stated that Russian oil exports fell by 390,000.00 barrels per daily (bpd) between March 2024 and 5.06 million bpd in the last month. Fuel exports fell by 210,000 barrels per day (bpd). Last month, the total Russian oil and petroleum products exports dropped by 600,000 compared to last year. The IEA stated that "the widening discounts on Russian grades compared to global benchmarks since the 10th of January contributed to overall price weakness." But strong sour crude supply kept Urals discounts against Dubai delivered to India's west coast at their lowest level since December last year. Washington announced its most extensive sanctions against Russian oil companies, and tanks carrying Russian oil in early January. This was due to Moscow's involvement in the conflict with Ukraine. The IEA reports that Russia's crude production fell to 9,07 million bpd last month from 9,08 million bpd during February, but it was still higher than the country's OPEC+ quota at 8,98 million bpd. OPEC data released on Monday revealed that Russia's crude output fell by 10,000 bpd to 8.963 millions bpd during March. IEA reported that Kazakhstan's production was unchanged from March to the previous month but 390,000 bpd above the target set by OPEC+, a group of major oil producers. Kazakhstan will pump 60,000 barrels per day more than its quota in 2024. However, the output increased further in February due to Tengizchevroil ramping up their expansion towards full capacity. According to the IEA, Western integrated oil companies operate more than half of current Kazakh production. Reporting by Olesya A. Astakhova, Vladimir Soldatkin and Kirby Donovan.
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Saudi Arabia could soon be a motor racing team owner
According to the chairman the Saudi Arabian Automobile and Motorcycle Federation, after sponsoring and hosting a Grand Prix, Saudi Arabia could own a Formula One Team. Prince Khalid bin Sultan Al-Abdullah Al-Faisal, in a video conference with reporters ahead of the race this weekend in Jeddah, said that there was interest. He said: "It's possible, and it might happen soon. "If you're going to buy an F1 team, people will do it for the money. Especially if one of PIF's (Saudi Public Investment Funds) companies is going to purchase it. "We are seeing Formula One reaching new markets and sales increasing globally... It's hard to know which team to purchase and how to manage it. We have a great deal of interest... we host Formula One and sponsor teams. "I wouldn't be shocked if a Saudi Arabian team was announced." Saudi Arabia hosted the first Formula One race in 2021. The energy giant Aramco, which is also the title sponsor of Aston Martin's team, is a global partner and sponsor of the sport. The PIF has invested in McLaren since 2021, and it already owns a 20,5% stake in Aston Martin luxury carmaker. This is separate from the team owned by Canadian billionaire Lawrence Stroll. Aston Martin said it will raise more than 125 millions pounds ($163.5million) through Stroll (who is also the company's chairman), and by selling its stake in its F1 team. Stroll has commissioned Raine Group to find a buyer of this holding. The future of the Renault owned Alpine team is still a subject of speculation, despite Renault's assurances that it is not planning to sell the team. 'WHY NOT?' Qatar Investment Authority (QIA), which holds a minority stake in Audi's team, will debut next year. Mumtalakat, the sovereign wealth fund of Bahrain, is a major shareholder in McLaren. Abu Dhabi's CYVN Holdings acquired McLaren Automotive recently. Saudi Arabia has heavily invested in sports in recent years, but critics claim that the kingdom is engaging in "sportswashing", in response to criticism of its human rights record. The country denies allegations of human rights violations and claims that it protects national security by its laws. According to Nielsen Sports, Formula One has a surge in support from the Middle East. Younger female fans are the fastest-growing demographic worldwide. Four of the 24 races are held in this region. Netflix's docuseries "Drive to Survive" has attracted new audiences to Formula One teams. Alpine was ranked sixth last year, with Aston Martin in fifth place. In 2023, after a $200 million investment group bought a 24 percent stake, the value of Alpine and Aston Martin would be around $900,000,000. There is still room for another team next year, when General Motors' Cadillac will be joining the league as the 11th. Prince Khalid said, "I personally would like to see an all-Saudi team." "But, if Saudi Arabia is involved or one of their companies in one of these teams, I want them to do things the right way. I also want them to be successful. Why not? It's a difficult question. 1 pound = 0.7645 pounds (Reporting and editing by Alan Baldwin)
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Bonds hold steady, shares gain on tariff relief
Asia shares rose Tuesday, but futures showed weakness in Europe and America after President Donald Trump said he could grant exemptions to auto-related tariffs. U.S. Treasury Bonds steadied after staging a recovery over night following last week’s historic selloff. Meanwhile, the dollar continued to lose favour with investors. Trump said Monday that he is considering a change to the 25% tariffs on imports of foreign autos and auto parts from Mexico, Canada, and other countries. These tariffs can increase the cost of a vehicle by thousands of dollars. Trump stated that car companies need "a little time" to manufacture cars in the United States. This followed Trump's Friday decision to exempt some electronics, including smartphones, computers, and other electronic devices from his "reciprocal tariffs" in the U.S. His administration stepped up investigations into semiconductor imports after Trump announced on Sunday that he would announce the tariff rate in the coming week. The Trump administration is also conducting investigations into the importation of pharmaceuticals. Illiana Jain is an economist with Westpac. She said, "When we see these exemptions flowing through, it helps the markets to think that tariffs aren't going to be something that will be all-encompassing and that they may actually be reprieved." Shares rose after investors seized on any good news that they could find following last week's massive selling. The broadest MSCI index of Asia-Pacific stocks outside Japan rose 1%. Japan's Nikkei index rose by 1%. Shares of automakers Toyota and Denso, which makes auto parts, were among the biggest gainers. Gains were modest as the uncertainty surrounding Trump's trade policy and his back and forth on tariffs continued to cloud markets and global economic outlook. U.S. Futures fluctuated between losses and gains, closing the last trades lower following an overnight gain in Wall Street. Nasdaq Futures dropped 0.2%, while S&P futures declined 0.13%. In Europe, EUROSTOXX futures fell 0.1% while FTSE Futures rose 0.12%. Bank of America, Citigroup and other big banks will be reporting earnings this week. The numbers from chipmaker TSMC will be a highlight later in the week. Hong Kong's Hang Seng Index and China's CSI300 blue chip index both declined by 0.2%. Bharat S. Sachanandani is the head of flow strategies and solutions in Asia Pacific for Societe Generale. The asset markets seem to indicate that higher prices will lead to a reduction in demand, and the probability of a recession is increasing. U.S. RATE After a wild selloff that caused the biggest weekly rise in borrowing costs since decades, U.S. Treasuries managed to hold onto their overnight gains on Monday. Bond yields are inversely related to bond prices. The benchmark 10-year rate remained at 4,3505% after falling nearly 13 basis points the previous session. The yield on the two-year bond was also little changed, at 3.8574%. It had dropped 12 basis points Monday. Analysts have attributed the decline in yields to comments made by Federal Reserve Governor Christopher Waller. He said that on Monday, the Trump administration’s tariff policies were a major shock for the U.S. Economy and could cause the Fed to lower rates in order to avoid a recession, even if the inflation rate remains high. Raphael Bostic of the Atlanta Fed Bank, on the other hand, suggested that U.S. Central Bank should remain on hold until more clarity is available. The markets are pricing in a 84-bps easing of rates by December. Most expect the Fed to keep rates at current levels next month. The dollar was near its three-year low against the euro, at $1.1356. It was also not far off from the decade-low it had reached against the Swiss Franc. Sachanandani, of SocGen, said that the U.S. Dollar's behaviour has changed recently. It now ignores rate differentials and responds more to capital flow. The U.S. Dollar does not like the prospect that U.S. companies will be less profitable and U.S. consumers will face higher inflation. Foreign investors' appetite for U.S. assets is also declining. assets." The latest exemptions from tariffs announced by Trump helped to boost oil prices. Brent crude futures rose 0.28%, to $65.06 a barrel. U.S. crude oil was up 0.36% at $61.75. Gold spot was nearing a record at $3,224.56 per ounce.
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Indian auto stocks rise 3% after Trump announces tariff exemptions
India's auto stocks jumped over 3% on Monday and were on track for their best day in January after U.S. president Donald Trump suggested that he may grant exemptions to auto-related import duties. Trump announced on Monday that he would be considering a change to the 25% tariffs on imports of foreign autos and auto parts from Mexico, Canada, and other countries. These tariffs can increase the cost of a vehicle by thousands of dollars. Trump stated that car companies need "a little time" to manufacture cars in the United States. The auto index rose 3.3%, with shares of auto part makers rising the most. Samvardhana, India's largest component maker based on market capitalisation, jumped by 7.7%. Bharat Forge, Sona BLW, and Bharat Forge rose between 6% and 7.3%. Tata Motors' luxury unit Jaguar Land Rover, which gets about one-quarter of its sales in the U.S.A., increased 5%. The auto index was the second biggest winner, and the blue-chip Nifty 50 was also up over 2%. Since Trump's announcement of auto tariffs, on March 26, the 15-member index has fallen by 2.5%. Samvardhana posted the smallest drop and Tata Motors the largest. Trump's comments come days after he announced he would suspend "reciprocal tariffs" imposed on dozens countries for 90-days. Nomura stated in a Friday note that they expect Indian suppliers will benefit from the pause of tariffs as U.S. Automakers seek to source parts elsewhere than China due to the tit-fortat tariffs between Washington, D.C. and Beijing. According to data compiled from LSEG, ten of the fifteen Nifty auto stocks have an average rating of "buy", while the remaining are rated as "hold". Reporting by Nandan Mandyam, Bengaluru. Editing by Mrigank Dahniwala and Varun K.
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BP, Chevron Make Deepwater Oil Discovery in Gulf of America
BP and its partner Chevron have made an oil discovery at the Far South prospect in the deepwater U.S. Gulf of America.BP drilled the exploration well in Green Canyon Block 584, located in western Green Canyon approximately 120 miles (193 kilometers) off the coast of Louisiana in 4,092 (1,247) feet of water.BP is the operator of the Far South, with 57.5% share, with Chevron as its partner holding 42.4% working interest.The well was drilled to a total depth of 23,830 feet (7,263 meters).Both the initial well and a subsequent sidetrack encountered oil in high-quality Miocene reservoirs. Preliminary data supports a potentially commercial volume of hydrocarbons.“This Far South discovery demonstrates that the Gulf of America remains an area of incredible growth and opportunity for BP. Our Gulf of America business is central to bp’s strategy. We are focused on delivering more affordable and reliable energy from this region, building our capacity to over 400,000 barrels of oil equivalent per day by the end of the decade,” said Andy Krieger, Senior Vice President, Gulf of America and Canada.BP expects to grow its global upstream production to 2.3 – 2.5 million barrels of oil equivalent in 2030, with the capacity to increase production out to 2035. Around 1 million barrels of oil equivalent per day are expected to be delivered from the U.S. onshore and offshore regions by 2030.
U.S. Steel announces that activist investor Ancora now supports the Nippon Steel merger
U.S. Steel announced on Tuesday that activist Ancora Holdings has "flipped-flopped", and now claims support for the transaction.
Ancora recently announced a plan in connection with the proposed transaction that could result in a cash offer at $75 per share. The investor, who owns less than one percent of the company, has said it will not stand in the way for the Nippon deal of $55 per share.
U.S. Steel, based in Pittsburgh, called Ancora’s “last-minute plan” inconsistent, and asked, "If Ancora believes that their plan will deliver $75+ per shares, why do they suddenly support a cash deal of $55 per share with Nippon Steel?"
Separately, Ancora called on U.S. Steel’s board on Monday to delay the annual shareholders meeting until after June 18 The meeting is currently scheduled for May 6.
The decision comes after U.S. president Donald Trump instructed the Committee on Foreign Investments (CFIUS), to conduct and complete a new review within 45 days.
Ancora has launched a challenge in the boardroom at U.S. Steel to remove CEO David Burritt. It has nominated 9 candidates for the board of directors.
U.S. Steel stated in a press release on Tuesday that the shareholders should vote for each of the 10 nominees for director standing for election, and "discard any materials sent by Ancora."
Ancora didn't immediately respond to an inquiry for comment made late on Tuesday. (Reporting and editing by Rishabh J. Jaiswal in Bengaluru, Mr. Mrinmay D. Dey)
(source: Reuters)