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Report: Gas Investments in Australia Stalling
Australia is losing its competitive edge in attracting investment in natural gas exploration and production, threatening the nation’s energy security, economic growth and emissions reduction targets, a new report by Wood Mackenzie has found.The ‘Australia’s Natural Gas Investment Competitiveness’ report found that while global investment in gas exploration has grown by nearly 30% in the past five years, investment in Australia is lagging with just 15% growth recorded over the same period. The analysis included a CEO sentiment survey of Australian gas producers. 95% of those surveyed believe Australia is a less attractive place to invest today, compared with five years ago. More than 95% of those surveyed reported direct investment impacts from changing government policy and regulatory settings, and one in five affected projects were either cancelled or relocated offshore.Australia is now attracting only a 15% share of the investment portfolio of major international oil companies, down from 40% just over a decade ago.Australian Energy Producers Chief Executive Samantha McCulloch said the findings underscored the importance of competitive and stable policy settings for Australia to attract future investment in gas exploration and development.“The new political landscape presents opportunities for industry to work with the Government and Opposition on bipartisan and enduring policy reforms for Australia’s long-term energy security and economic growth,” McCulloch said.“The report highlights Australia’s abundant natural gas resources and access to global markets makes it ideally placed to attract significant new investment and remain a global energy powerhouse. “Key to realizing this opportunity and restoring investor confidence will be addressing approval uncertainty and delays, supporting critical energy infrastructure, and recognizing the vital role of gas in the energy transition.”Wood Mackenzie also highlight the huge growth opportunity on Australia’s doorstep. Global LNG demand is forecast to rise 58% by 2050, with the Asia Pacific region accounting for three quarters of total LNG demand by the middle of the century. But investment in Australia’s LNG capacity is only a quarter of that in the rest of the world. Wood Mackenzie found: “Whilst Australia led the mid-2010s wave of LNG projects, a subsequent emerging wave is being led by the United States and Qatar, with Australia no longer featuring significantly.”“Australia now trails peer nations such as the United States, Canada, Qatar, Norway and countries in South-East Asia and Africa in key investment areas including exploration and LNG capacity,” McCulloch said. Australia will also face fierce competition for future carbon capture, utilization and storage (CCUS) investment unless supportive policy frameworks and regulatory certainty are established.“Energy and climate policy must go hand-in-hand with economic policy. Without a stable policy and regulatory environment, Australia risks losing its energy edge and missing out on the next wave of global investment,” McCulloch said.
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Iron ore declines due to tepid China demand and higher shipments
The price of iron ore futures fell for the fourth session in a row on Wednesday. This was due to a combination of a lower demand for this steelmaking ingredient from China, the world's largest consumer, and increased shipments by Australia and Brazil, two major producers. By 0300 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.21% lower. It was 698 yuan (US$96.94) per metric ton. The benchmark June Iron Ore traded on the Singapore Exchange fell 0.18% to $95.9 per ton. Mark Ferguson, Director of Metals and Mining Research at S&P Global Commodity Insights, told a conference in Singapore on Wednesday that China's crude output is expected to drop to 968 millions metric tons in 2025, down 37million tons from 2024. Lange Steel, citing data from the China Iron and Steel Industry Association, said that daily crude steel production at key steel companies in May decreased by 0.3% on a month-to-month basis to 2.2 millions tons. Data from Mysteel revealed that the total volume of iron-ore shipped from Australia and Brazil increased by 0.9% week-on-week as of 25 May, reaching 27.3 million tonnes. Mysteel attributes the increase to increased ore shipments by Australia. They increased their shipments to China from 10.4% to 17.4 millions tons week-on-week. The Brazilian government also dampened sentiment by renewing 25% tariffs, which were originally imposed on 19 steel products last year. Official data released on Tuesday showed that China's industrial profit increased in April. This gives policymakers reason to be optimistic, as recent stimulus measures are helping keep the economy afloat, despite the trade tensions between the United States and China. Coking coal and coke, which are used to make steel, also fell by 0.99% and 0.75%, respectively. The Shanghai Futures Exchange saw a decline in most steel benchmarks. Rebar fell 1%, while hot-rolled steel coils lost 0.74%. Stainless steel also slipped 0.82%.
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France's Macron and Indonesia's Prabowo discuss defense ties
The French president Emmanuel Macron and his Indonesian counterpart Prabowo Subito will meet in Jakarta on Tuesday, with a focus on strengthening defence ties between Paris and its largest arms client in Southeast Asia. Indonesia is the second stop on Macron's regional tour after Vietnam where both countries signed deals valued at over $10 billion. He will fly to Singapore Thursday. Sjafrie Sjamsoeddin welcomed Macron to Indonesia on Tuesday evening. He said that the two countries will sign a letter of intent on defence and work together on "strategic weapons hardware". He cited fighter jets, submarines, and other military hardware. The Foreign Ministry had said earlier that the two sides will discuss "existing partnerships" but did not give specifics about the topics of discussion. In 2022 the two countries will sign an $8.1 billion deal in defence that includes an order for 42 Rafale jet fighters manufactured by France's Dassault aviation, as well a number of agreements, including sub-development and ammunition. "Some commitments require follow-up and Indonesia showed interest in other military hardware but there have been no advances yet," said Khairul FAHMI, a military specialist at the Institute for Security and Strategic Studies, an Indonesian-based institute. Rafale jets are not yet delivered to Indonesia. In February, Mohamad Tonny Harjono, the chief of Indonesian Air Force Mohamad Tonny Harjono stated that six jets will arrive in Indonesia by early 2026. In addition to the Rafale agreement, Indonesia has also announced that it will buy 13 Thales long-range air-surveillance radars in 2023 and two "Scorpene' submarines in 2024 from France. Prabowo was Minister of Defence when these deals signed. Paulo Castellari, the new CEO of Eramet, is part of Macron's delegation to Indonesia's mineral-rich Indonesia. Eramet Chairwoman Christel Bories said that they would be looking to discuss mining permissions in relation to Weda Bay Nickel Mine. Indonesia has the largest known nickel reserves and is the world’s leading producer. Eramet, among other companies, has complained about the reduction of volume allowances. Eramet is still interested in nickel processing, despite having dropped a plan last year to build a BASF plant. (Reporting and writing by Ananda Teresia in Jakarta and Stanley Widanto, in Paris. Editing and proofreading by John Mair.
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Gold prices rise as investors purchase gold on dips, and look to US economic data for clues
The gold price rose on Wednesday as investors bought at the bottom. However, gains were capped due to easing U.S. - EU trade tensions. Now, the market is awaiting the upcoming U.S. Personal Consumption Expenditures Report for clues on interest rates. As of 0237 GMT spot gold rose 0.3% to $3,308.99 per ounce. This was a slight recovery from the 1% drop in the previous session. U.S. Gold Futures increased 0.2% to $3.308.00. Donald Trump, the U.S. president, has backed off his threat to impose a 50% tariff on the European Union. He will now delay its implementation until the 9th of July, in order to allow time for negotiations between White House officials and the 27-nation group. Gold's drop below $3300 attracted some buyers. The broader market, however, is still generally optimistic now that US-EU tensions have eased. This is capping gold's upward run for the moment," said Tim Waterer. If support continues to hold in the $3.250-$3,280 range, gold could make another move towards $3.400, if risk appetite declines. Market participants are now awaiting the U.S. PCE for April data, which is due on Friday, in order to determine if Federal Reserve will be reducing interest rates. Data show that U.S. consumer sentiment rebounded in may, ending a five month slide. This was aided by a temporary truce between the U.S. and China trade war. Since December, the Fed's policy rate has remained unchanged at 4.25% to 4.50% as officials wait for more clarity about the economic and pricing impact of Trump’s tariffs. "More definitive moves in gold may need to be delayed until we have a better read on Nvidia's results and U.S. Waterer stated that Core PCE will be released on Friday. Spot silver remained at $33.31 per ounce. Platinum was up 0.4% to $1,084.07, and palladium was down 0.2% at $976.22.
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Copper prices rise as risk appetite increases after tariff relief
The copper price in London was stable on Wednesday. This was due to an improved risk appetite in the financial markets after President Donald Trump’s latest tariff relief. However, a strong dollar held gains in check. The London Metal Exchange's three-month copper price remained at $9,593.5 a metric ton as of 0214 GMT. The Shanghai Futures Exchange's (SHFE) most-traded contract for copper edged up 0.1% to 78.390 yuan per ton ($10,886.29). Copper prices have traded in line with the overall sentiment on the global stock exchange in the past two weeks. The US stock market has been lifted by trade optimism, and this has had a ripple effect on copper prices, said Kelvin Woong, senior market analyst for Asia Pacific, OANDA. Trump reversed his decision to impose tariffs of 50% on EU imports next month. He restored the deadline of July 9 to allow time for negotiations. The risk-taking sentiment on the financial markets was boosted. Tuesday, data showed that U.S. consumers' confidence improved in May after five months of declines. This was due to a truce between Washington and Beijing in their trade war. The dollar index also added to the overnight gains. This made dollar-denominated investments more expensive for holders of other currencies. In its latest monthly bulletin, the International Copper Study Group reported that the global refined copper market had a surplus of 17,000 metric tonnes in March compared to a surplus of 180,000 metric tonnes in February. Other London metals include aluminium, which fell 0.3% at $2,478.50 per ton. Zinc also fell 0.1% to $2703, while lead declined 0.3% to 1,979.5, and nickel fell 0.3% at $15,370. Tin rose 0.1% to $22,630. The SHFE aluminium price rose by 0.5%, to 20,165 Chinese yuan per ton. Lead was down by 0.2%, at 16,765 Yuan. Nickel was 0.4% lower at 121,870 Yuan. Zinc was unchanged at 22,415 Yuan. Tin fell 0.3%, to 264440 Yuan. ($1 = 7.2008 Chinese Yuan) (Reporting and editing by Sherry Jacobi-Phillips in Bengaluru)
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Asian shares and the U.S. Dollar climb on positive data, technology optimism
The dollar gained on Wednesday, as the United States economy showed promising signs and speculation about strong tech earnings. The markets welcomed the apparent easing of trade frictions between Europe and the U.S., while global bond market settled after an alarming surge in long term yields. The U.S. consumer sentiment surprised to the upside before Thursday's closely watched employment figures. Nvidia's shares jumped by more than 4% on Tuesday and it will be the final of the Magnificent Seven tech giants in the U.S. to announce earnings after the close of U.S. markets. Chris Weston is the head of Pepperstone's research and said that there was renewed confidence in Nvidia to beat consensus estimates. He said that if Nvidia delivers better than expected sales and profit margins, "the rally will be on." According to LSEG, the chipmaker will report that its first-quarter revenues grew by 66.2% and reached $43,28 billion. According to two sources with knowledge of the situation, European Union officials are asking companies about their U.S. investments plans. MSCI's broadest Asia-Pacific index outside Japan rose 0.3% during morning trading, while Japan's Nikkei gained 0.6% for a fourth consecutive session. The dollar index (which tracks the greenback versus a basket currencies) rose by 0.1% on Tuesday, adding to the 0.6% gain of that day. The dollar rose 0.1% against the euro to $1.132. Australian shares rose 0.17% but the currency fell 0.2% as April consumer prices data exceeded expectations. The kiwi currency fell 0.3% as the Reserve Bank of New Zealand reduced rates, as expected. Japanese bonds fell, trimming an increase yesterday, in advance of a bid for 40-year-old securities and amid speculation that the Ministry of Finance would reduce the issue of long-dated instruments. Early trading saw oil prices rise as the U.S. banned Chevron CVX.N's export of crude from Venezuela due to a new authorization for its assets in Venezuela, raising the possibility of a tighter supply. Brent crude futures increased 0.4% to $64.37 per barrel while U.S. spot gold rose 0.1% following a drop of more than 1% Tuesday.
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France's Macron and Indonesia's Prabowo discuss strategic partnerships
On Wednesday, French President Emmanuel Macron and his Indonesian counterpart Prabowo Subito will meet in Jakarta to discuss defence ties. This is Paris' largest arms client in Southeast Asia. Indonesia is the second stop on Macron's regional tour after Vietnam where both countries signed deals valued at over $10 billion. He will fly to Singapore Thursday. The Indonesian foreign ministry stated that the two countries would discuss "existing partnerships" without providing specifics about the topics of discussion. In 2022 the two countries will sign an $8.1 billion deal in defence that includes an order for 42 Rafale jet fighters manufactured by France's Dassault aviation, as well a number of agreements, including sub-development and ammunition. "Some commitments require follow-up and Indonesia showed interest in other military hardware but there have been no advances yet," said Khairul FAHMI, a military specialist at the Institute for Security and Strategic Studies, an Indonesian-based institute. Rafale jets are not yet delivered to Indonesia. In February, Mohamad Tonny Harjono, the chief of Indonesian Air Force Mohamad Tonny Harjono stated that six jets will arrive in Indonesia by early 2026. In addition to the Rafale agreement, Indonesia has also announced that it will buy 13 Thales long-range air-surveillance radars in 2023 and two "Scorpene' submarines in 2024 from France. Prabowo was Minister of Defence when these deals signed. Paulo Castellari, the new CEO of Eramet, is part of Macron's delegation to Indonesia's mineral-rich Indonesia. Eramet Chairwoman Christel Bories said that they would be looking to discuss mining permissions in relation to Weda Bay Nickel Mine. Indonesia has the largest known nickel reserves and is the world’s leading producer. Eramet, among other companies, has complained about the reduction of volume allowances. Eramet is still interested in nickel processing, despite having dropped a plan last year to build a BASF plant. (Reporting and writing by Ananda Teresia in Jakarta and Stanley Widanto, in Paris. Editing and proofreading by John Mair.
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Oil prices rise as U.S. bans Chevron's export of Venezuelan crude
The oil prices rose in the early hours of trading on Wednesday, as the U.S. banned Chevron's exports from Venezuela due to a new authorization for its assets there. This raised the prospect of a tighter supply. Brent crude futures gained 47 cents or 0.73% to $64.56 per barrel at 0028 GMT. U.S. West Texas Intermediate crude rose 49 cents or 0.8% to $61.38 per barrel. Sources reported that the Trump administration had issued a new approval for U.S. giant Chevron, which would allow it to retain assets in Venezuela without allowing them to export oil or expand their activities. Robert Rennie, Westpac's director of commodity and carbon strategies, wrote in a report that the loss of Chevron Venezuelan barrels will lead refiners to rely more on Middle Eastern crude. The previous license had been revoked by the U.S. president Donald Trump on 26 February. The licenses granted to Chevron, and other foreign oil companies in recent years have helped to support a small recovery of Venezuelan oil production that was hit by sanctions. This has risen to around 1 million barrels a day. The European Union has begun to ask top EU companies about their U.S. investments plans. This is a sign that Brussels will be advancing trade negotiations with Washington. Trump's move comes after he backed down from his threat over the weekend to impose tariffs of 50% on European goods, which would have hurt demand for oil and economic activity. The gains on Wednesday have largely recovered the losses of Tuesday when prices fell by around 1% following signs of limited progress in the fifth round of Iran and U.S. nuclear negotiations. The market anticipates that any resolution between Iran and the United States could increase Iranian oil supply on the market. The Organization of the Petroleum Exporting Countries (OPEC+) and its allies will meet in full on Wednesday. However, no major policy changes are anticipated. Sources say that eight members of OPEC+ could decide on a July output increase when they meet this Saturday. Rennie stated that the most likely scenario for July would be a 411,000 barrel increase per day. This would "add to the rising inventory as we approach the summer driving season here in the U.S."
Trump's trade tariffs and threats
The President of the United States,
Donald Trump stated on Sunday that he was most concerned about securing a fair deal with China after his tariff policy had shook the consumer and business confidence around the world and caused a contraction in U.S. economy during the first quarter.
After the U.S. government held a series of meetings with its trading partners following Trump's April 2 announcement, there were signs of a possible de-escalation of the trade war.
10% Discount
On most countries, and suspend higher levies for 90 days on many trading partners.
On July 8, the duties will now be imposed.
He also levied 25% on autos and steel, and 25% on imports of Canada and Mexico, and 145% on China.
In his latest move Trump imposed a
Get 100% Discount
On movies made outside of the United States that are sent to the country.
Here's a summary of Trump’s trade-related actions and threats to date.
BROAD TARIFFS
Trump's vision is based on a gradual rollout of tariffs that will apply to all U.S. imported goods.
Trump's economics team was tasked with developing plans to impose reciprocal tariffs against every country that taxes U.S. Imports. They also had to address non-tariff barriers, such as vehicle safety regulations that exclude U.S. automobiles as well as value added taxes that raise their price.
Specific COUNTRIES
Trump's tariff proposal targets several key trading partners.
MEXICO AND CANADA : Mexico and Canada were the two largest trading partners of the U.S. from 2024 to November. Trump's new tariffs of 25% on imports from Mexico, Canada and the European Union took effect on 4 March as a response to migration and fentanyl.
Tariffs were imposed on energy imports from Canada and Mexico, as well as on the majority of goods imported. Canada exports mainly crude oil, other energy products and cars and auto components within the North American automotive manufacturing chain. Mexico exports a variety of goods to the U.S., including industrial and automotive products.
Canada retaliated with 25% tariffs against US imports worth C$30 billion (21,13 billion dollars), including orange juice and peanut butter. Other products include beer, coffee, motorcycles, appliances, and motorbikes.
The Canadian government said that it will impose additional duties on C$125billion of U.S. products if Trump's Tariffs are still in effect in 21 days. This could include vehicles, steel and aircraft, as well as beef and pork.
U.S. commerce secretary Howard Lutnick stated that U.S. officials could still work out a partial solution with the two neighboring countries, and added that they need to do more in the fentanyl arena.
In response to Trump's tariffs on steel and aluminum, Canada announced that it would impose retaliatory duties of C$29.8 Billion ($20 Billion) on U.S. imports.
The two countries are exempted from the "Liberation Day", announced on April 2 tariffs, but they face a separate 25% tariff on auto imports.
Canada has asked the WTO to consult with the U.S. about its import duties on steel and aluminum products as well as levies placed on Canadian cars and parts.
CHINA: Trump imposed 10% tariffs on all Chinese imports to the U.S. effective February 4, after repeatedly warning Beijing that it was not doing enough to stop the flow of illegal drugs into the U.S.
On March 4, he imposed another 10% tariff on Chinese products.
China announced additional tariffs between 10% and 15% on some U.S. exports starting March 10, as well as a number of new restrictions on exports for certain U.S. entities. It then complained to the WTO about the U.S. Tariffs.
Trump increased the tariffs on China by 34% in April, making the total to 54%. China responded with a 34% duty on all U.S. products.
Trump replied that the U.S. will impose an extra 50% tariff on China, if Beijing doesn't withdraw its retaliatory duties on the U.S. and said "all discussions with China regarding their requested meetings with the us will be terminated."
Washington's new round of tariffs raised duties on China to 145%. Beijing then increased levies against U.S. products by 125% as a result.
Trump has said that the EU, and other countries, have alarming trade surpluses against the U.S. He said that the products of the other countries will be subject to tariffs, or he would demand they purchase more oil and natural gas from the U.S.
Steel, aluminum, and cars will be subject to import tariffs of 25%, while other goods will face tariffs of up to 20%, starting April 9. Pharmaceuticals are among the most vulnerable industries, since U.S. companies such as Johnson & Johnson, Pfizer, and others have large facilities in Ireland. Ireland is also a leading exporter of medical equipment.
The European Union announced on April 7 that it had offered to offer a "zero for zero" tariff deal in order to avoid a trade conflict. EU ministers agreed to prioritise negotiations and to strike back with targeted countermeasures the following week.
In response to Trump's metals duties, the EU announced on March 12 that it would begin imposing counter-tariffs next month on goods worth 26 billion euros (28 billion dollars) from the United States. As a result of the U.S. auto and wider tariffs, the EU is expected to release a more comprehensive package of countermeasures at the end of April.
Trump announced on March 13 that he would slap 200% tariffs on European wines and spirits as a response to EU plans to impose tariffs next month on American whiskey, among other products.
PRODUCTS
AUTOS: Trump announced a 25% tariff for imported cars and light truck on March 26. The 25% tax would be added to previous duties on imported finished vehicles beginning on April 3.
On April 29, he issued a couple of orders that aimed to reduce the impact of his auto tariffs by combining credits with relief from other levys on materials.
The Republican President has given automakers two years to increase the percentage of domestic components used in U.S.-built vehicles.
Metals: On March 12th, Trump raised tariffs for all imports of steel and aluminum to 25% and extended duties to hundreds downstream products. These include everything from nuts and bolts, to bulldozers blades, to soda cans.
More than half of the U.S.'s aluminum and steel imports come from Canada, Mexico, and Brazil.
Trump ordered on February 25, a new investigation into the possibility of new tariffs on imports of copper to rebuild U.S. manufacturing of this metal, which is critical for electric vehicles, military equipment, semiconductors, and a variety of consumer goods.
Just over half of the refined copper that is consumed in the U.S. each year is produced domestically.
SEMICONDUCTORS : Trump stated that tariffs would start at "25% or higher" and would increase substantially over a period of one year. He did not, however, specify the date when they would be implemented.
Taiwan Semiconductor Manufacturing Co., the largest contract chipmaker in the world, produces semiconductors for Nvidia and Apple, among other U.S. customers. In 2024, it will generate 70% of its revenues from North American clients.
LUMBER: On March 1, Trump ordered a new investigation into trade that could add more tariffs to imported lumber. This would be in addition to the existing duties on Canadian Softwood Lumber and 25% tariffs for all Canadian and Mexican products.
ALCOHOL: Trump threatened on March 13 to slap 200% tariffs on wine, cognac, and other alcohol imported from Europe in response to an EU plan to impose tariffs American whiskey and other products. This is itself a retaliation for Trump's 25% tariffs that went into effect on steel and aluminium imports the day before.
PHARMACEUTICALS - While Trump's "Liberation Day' announcement spared the pharmaceutical sector from reciprocal duties, the president said that duties were "under review." He warned that the tariffs could be "at a new level you haven't seen before."
ELECTRONICS - Trump exempted smartphones, computers, and other electronics, mostly from China, from the steep tariffs. This was a relief to major technology companies such as Apple, Dell Technologies, and other importers.
This move exempts certain electronics from Trump's baseline 10% tariffs on most goods imported from countries other than China.
(source: Reuters)