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Suncor, Canada's largest oil company, says it may reduce its capital expenditure in 2026 if oil prices remain low.
Suncor Energy, Canada's second largest oil producer, said that a recent campaign to cut costs had helped it weather the lower oil prices in the world. However Suncor Energy did not rule out cutting capital expenditures next year if economic conditions continue to be weak. Rich Kruger, CEO of Suncor, told analysts in a conference call on Tuesday that Suncor had not altered its capital budget range for 2025 of C$6.1billion ($4.43billion) to C$6.3billion and planned to spend less next year - between C$5.7billion - already. Kruger stated that the 2026 budget would be cut if needed. He said, "If we feel that the business environment warrants it further, then that is exactly what will be evaluated." The global oil price hit a 4-year low Monday, after the Organization of the Petroleum Exporting Countries (OPEC+) and its allies agreed to a second accelerated increase in oil production for June. Since Donald Trump was inaugurated in January, his unpredictable tariff policy has also had a significant impact on the oil price. Kruger stated that Suncor has become more resilient and able to withstand commodity price fluctuations due to its efforts to reduce operating costs. He said, "It allows us to execute our plans without having to hit the gas or the brakes." Under Kruger's leadership, Suncor's financial results have improved dramatically under his leadership. He was hired by the company in 2023. The company announced a first-quarter profit on Tuesday of C$1.7billion, or C$1.31 a share. This was higher than analysts' expectations. It also achieved its highest ever first-quarter production, of 853,000 barrels / day. Suncor has also had its best ever first quarter in terms of refinery sales and throughput. Kruger stated that Suncor was well underway with its efforts to increase revenue from its chain Petro-Canada retail station. This includes closing some locations, renovating and upgrading at other stations. The company wants to increase earnings by C$200m by the end 2026. Kruger responded that continued growth of the Petro-Canada chain is another way to protect the company from oil price volatility. He said: "I wouldn't say never. But right now, that is an extremely valuable part of our operations." (1 Canadian dollar = 1.3783 dollars) (Reporting and editing by Nia William in Calgary)
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Putin and Venezuelan Maduro sign a strategic partnership agreement at Moscow
In a ceremony broadcast on state television, Russian President Vladimir Putin signed a strategic agreement with Venezuelan President Nicolas Maduro. Interfax, a Russian news agency, reported that the two leaders also spoke about energy and oil in their meeting at Moscow. In the agreement, Russia & Venezuela stated that they would promote joint efforts within OPEC +, the Gas Exporting Countries Forum, and other organisations involved in the energy industry. The agreement stated that "the parties will promote an equitable and stable development of global markets for energy without using unfair competition instruments." The two companies agreed to work together to explore and develop new oil and natural gas fields, as well as expand their oil trading operations. The document envisages a closer collaboration between Russia and Venezuela in the United Nations, other organisations and the field of arms control as well as a joint opposition to unilateral sanctions. Dmitry Peskov, Kremlin spokesperson, described the strategic accord as "a substantial and important framework document". The three-year war between Russia and Ukraine has caused a breakdown of relations with many Western countries. This has prompted Moscow, which wants to counteract the influence of the "collective west", as the Kremlin refers to it, including the United States, to strengthen its ties with those other countries. Since 2022, Russia already has strategic partnership agreements with China, North Korea, and Iran. Venezuela's recent relationship with the United States has been fraught, marked by shattered diplomatic relations, sanctions, and accusations of criminal activities and coup plotting. Maduro will also attend events commemorating the 80th anniversary since the Soviet Union defeated Nazi Germany. Military Parade On Friday. (Reporting and editing by Andrew Osborn, Gareth Jones, and Vladimir Soldatkin)
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China's BYD and Tsingshan cancel plans for Chilean lithium plants
Sources from the government and BYD, a Chinese automaker, confirmed on Wednesday that they have withdrawn multi-million dollar plans for building lithium cathodes in Chile, which is a major producer. The two Chinese giants' retreat is a blow for Chile, which aims to increase domestic processing of lithium - a metal that is essential to electric vehicle batteries. Chile is ranked as the No. The world's No. Tsingshan has announced that it canceled plans for a $233-million project to produce 120,00 metric tons (LFP) of lithium iron phosphate. Chile's National Assets Ministry said that BYD had filed an intention to withdraw their plans in January. BYD declined to comment. BYD announced delays last year to a planned $290-million plant that was supposed to produce 50,000 tons of LFP per year for cathodes. The first newspaper to report the scrapped investments was Chilean Diario Financiero. BYD's and Tsingshan’s plans were both part of an agreement for a special price to buy lithium. The Chilean government awarded this deal in order to encourage investment in lithium products in Chile. The arrangement is no longer attractive, according to a person who knows the situation. This is due to the falling prices of lithium on the international market. (Reporting and editing by Alexander Villegas; Sarah Morland, Emelia Sithole Matarise and Emelia Sithole Matarise).
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Sources say that Guinea has cancelled EGA's mining license
Two people familiar with the matter said on Wednesday that Guinea had begun a process of revoking Emirates Global Aluminium's mine licence. Emirates Global Aluminium is owned equally by Abu Dhabi sovereign fund Mubadala and Dubai sovereign fund Investment Corporation of Dubai. It operates through its Guinea Alumina Corporation subsidiary one of the world's largest bauxite mining operations in Guinea. In a reply, the company stated that it "continues to work hard to find a solution with the government so we can resume our operations." EGA and the Government of Guinea have been involved in a dispute since October last, when the authorities suspended its bauxite mining operations and exports. They cited customs duties as the reason for the suspension. We have withdrawn the mining license of GAC. "A notification has been sent in this regard," said one source, a senior official of the government who asked to remain anonymous because they weren't authorised to talk. Guinea's decision to cancel EGA’s licence is part of a larger trend in which resource-rich nations are seeking greater control over their wealth. This could have a major impact on the global mining industry. In particular, the military-led governments of Guinea, Mali and Niger, as well as Burkina Faso have been pushing to rewrite laws and contracts governing mining, detain executives in mining, suspend operations and seize product in order to gain more control and revenue. The Emirati Company began operations in Guinea in 2019. It will export around 14 million tons of bauxite by 2022. In March, it said that the suspension of activities in Guinea led to a decrease in exports of bauxite from 14,1 million wet-metric tonnes in 2020 to 10,8 million wet-metric tonnes in 2024. Guinea is the second largest producer of bauxite in the world after Australia. EGA's operations in Guinea include a 690 square kilometer mining concession which contains approximately 400 million tonnes of mineral resources. Saliou Samb, Conakry, Guinea. Additional reporting by Hadeel al Sayegh, Abu Dhabi, and Maxwell Akalaare Adombila, Dakar. Writing by Bate Felis Editing by Tomaszjanowski, Elaine Hardcastle, and Matthew Lewis.
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Markets retrench as they focus on US-China talks and Fed rate decision
The world stock market fell on Wednesday, while Treasury yields dipped. This was after the news that top U.S. officials would be meeting with Chinese counterparts soon and before a Federal Reserve statement about its monetary policy at the conclusion of their two-day meeting. After three days of declining against the yen, the dollar index has risen. Gold, the safe-haven asset, fell after a two day rally. The Fed is expected to maintain interest rates at their current level. The U.S. Treasury secretary Scott Bessent, and the chief trade negotiator Jamieson Grer will meet China's highest economic official at the weekend for discussions. This could be a first step towards an agreement after U.S. president Donald Trump ignited the trade war last month with China's second largest economy. Bessent believes the meeting in Switzerland will be about "de-escalation." China, on the other hand, sounded more cautious and quoted a Chinese proverb that said actions speak louder than words. "It is a step in the right directions." Chris Zaccarelli said that until you start talking, you cannot make any progress. He said that "until a framework or agreement is announced, market participants don't know what to make of the talks." The upcoming Fed report also slowed down market movements. Investors are not expecting any rate changes, but will be closely monitoring Chair Jerome Powell’s press conference. He'll be asked to provide more information on the Fed's current position. Do they tend to lean more toward protecting the job markets or do they lean more towards combating inflation? Zaccarelli said. Wall Street At 11:01 am, the Dow Jones Industrial Average rose by 131.77, or 0.33 percent, to reach 40,963.18, while the S&P fell by 1.16, or just 0.01% to 5,606.14, and the Nasdaq Composite dropped 55.37, or about 0.30% to 17,636.66. The MSCI index of global stocks fell by 0.56 points or 0.07% to 841.35. The pan-European STOXX 600 fell by 0.6%. The U.S. Dollar rose against the Japanese Yen, while the Euro was barely lower. Traders awaited Fed's latest update as uncertainty about trade negotiations weighed on the sentiment. The dollar index measures the greenback in relation to a basket including the yen, the euro and other currencies. The index fell by 0.13%, to 99.37. The euro fell 0.02% to $1.1366. The dollar gained 0.6% against the Japanese yen to reach 143.3. The yield on the benchmark U.S. 10 year notes dropped 3.7 basis point to 4.281% from 4.318% at the end of Tuesday, while the 30-year bond rate fell 5 basis points, to 4.7628%. The yield on the 2-year bond, which is usually in line with Fed expectations, increased 0.8 basis points from late Tuesday to 3,797%. Oil prices dropped on commodity markets as investors awaited the outcome of U.S. China trade talks. U.S. crude dropped 0.58%, to $58.75 per barrel. Brent was down to $61.71 a barrel on the same day. As traders awaited Fed's decision, gold prices declined due to a stronger dollar and optimism in the U.S. China trade talks. Spot gold dropped 1.27% to $3385.76 per ounce. U.S. Gold Futures dropped 0.73% to an ounce of $3,386.60. Pakistan's bonds and stocks suffered heavy losses after India attacked the country as a response to the April tourist murders. The attacks sparked the worst fighting between the two nuclear-armed neighbors in more than 20 years.
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EU warns Romania that it faces legal action if it does not remove the gas price cap
The European Commission warned Romania Wednesday that it could face legal action if it did not remove its gas price cap. According to the EU executive branch, the policy violates EU rules on the energy market. Since November 2021, gas and electricity bills for Romanian households and small businesses, as well as public institutions, are capped at certain levels of consumption per month. The suppliers are compensated for any difference. In a statement published on Wednesday, The European Commission stated that the Romanian policy violates EU regulations on the free formation wholesale gas prices since it forces firms to sell a part of their production for a wholesale price fixed. The Commission stated that "Regulated wholesale prices on the EU's entire market distort price signalling and market effectiveness." After Russia restricted deliveries, European wholesale gas prices began to rise in 2021. The following year, prices reached record levels after Moscow cut supplies further in response to its February 2022 invasion. The EU has given the Romanian government two months to respond. If the warning is not resolved, the Commission may refer the case to Europe's highest court. Romania has an interim government in place ahead of the run-off presidential election on May 18, which is unable to issue decrees or implement policies. The former prime minister Marcel Ciolacu announced his resignation on Monday, after George Simion, a hard-right eurosceptic who won the first round in the re-run of the presidential elections. The president who was elected in this month's election will name a new Prime Minister. The former government extended in February the gas price ceiling for an additional year and the electricity price limit until June to help consumers control their bills. Romania produces most of the gas that it consumes in its own country, via producers OMV Petrom and Romgaz, as well as offshore producer Black Sea Oil & Gas.
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Rio Tinto first gallium extracted in collaboration with Indium
Rio Tinto, a mining giant, announced on Wednesday that it had successfully extracted the first primary gallium in a joint venture with Indium Corp. of the United States. The collaboration aims to produce commercial quantities of this rare metal. This development coincides with China's restrictions on metal exports to the United States, including gallium, antimony and germanium. These are part of Beijing’s response to Washington’s trade war. Rio Tinto reported that the first extraction took place at Indium’s R&D facility located in New York. The next phase will assess techniques to enable the production of larger quantities of gallium on a pilot scale. Rio Tinto predicts that if the miner is successful in bringing production to commercial scale in its refinery located in Quebec, Canada it will produce up to 40 tonnes per year, which would be worth 5%-10% the current global output. Rio Tinto and Indium Corporation are working to improve the North American supply of gallium, said Rio Tinto executive Jerome Pecresse in a press release. China is the largest producer of germanium, antimony and gallium. These metals play a niche role in chipmaking, defence and clean energy. However, Beijing's targeting of U.S. supply chain is driving prices up. Reporting by DhanushVigneshbabu in Bengaluru, Editing by Vijay Kishore & Devika Syamnath
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Barrick CEO claims he doesn't know where Mali keeps miners' confiscated gold
Mark Bristow, CEO of Barrick Mining, said that the Canadian company spends $15 million per month to run its Mali mine. He also stated that he doesn't know where the Mali government keeps the gold they confiscated from Barrick. Bristow, in an interview with the authorities of the West African country, said that the government had reneged on an agreement at least three times and referred to the imprisonment of Barrick workers in the nation as a violation of human rights. Bristow stated, "You have four senior executives from Western companies incarcerated. This can only be described as a human rights violation." He claimed that the executives in jail had worked harder for Mali then the people currently leading the negotiations for the government. He said, "We don’t know where the Gold is. It is allegedly in safe custody but we don’t know this." Barrick and Mali’s government have been in dispute over the Loulo-Gounkoto Complex, Barrick’s largest mine in Mali, for more than six month. Authorities confiscated approximately 3 metric tons of gold, in addition to arresting four Barrick employees in January, following allegations that Barrick had not met its tax obligations. This led the miner, Barrick, to close the mine. According to the current gold rate, the value is approximately $318 million. Barrick announced a profit for the first quarter on Wednesday, beating analysts' expectations. The surge in gold prices helped offset lower production. Gold prices soared to over $3,100 an ounce in 2025's first quarter, driven by a surge in demand for safe havens amid rising tariff uncertainty that could fuel inflation or reduce global economic growth. Bullion is up around 29% this year after climbing more than 27% last year. The Toronto-based company expects total gold production in 2025 to be between 3,15 million and 3,50 million ounces. Loulo-Gounkoto is excluded from the outlook. Barrick stated that it would update its guidance to include Loulo Gounkoto once we had more certainty about the timing of the restart. Barrick, which has been streamlining operations since merging with Africa-focused Randgold Resources in 2010, said that it was moving forward with its plans to divest the Tongon mine in Ivory Coast, and its Hemlo operation in Canada. The average realized gold price of the company for the first three months rose from $2,075 to $2,898. Total gold production dropped to 758,000 from 940,000. Barrick's total costs, which reflect the industry's overall expenses, increased by 20.4% in the first quarter to $1,775 an ounce. The company said that the per-ounce price is expected to decrease over the remainder of the year due to higher production. According to data compiled and analyzed by LSEG, on an adjusted basis the company, formerly known as Barrick Gold earned 35 cents a share during the third quarter. This compares with the average analyst expectation of 28 cents a share. Reporting by Arunima Kumna in Bengaluru; Divyarajagopal and Daina Beth Solon in Toronto; and Shounak Dasgupta, and Paul Simao for editing.
Sino-US trade talks and Chinese stimulus have boosted iron ore prices to a 2-week high.
Investor sentiment was boosted by China's recent stimulus measures, and the hopes that trade frictions between the two world's largest economies will be eased.
As of 0154 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.78% higher. It was 711 yuan (US$98.47) per metric ton.
Earlier in the session, the contract reached its highest level since April 24, at 726 Yuan per ton.
The benchmark June Iron Ore traded on the Singapore Exchange rose 0.81%, to $98.3 per ton. It had previously reached a peak of $99.85.
The People's Bank of China will reduce the amount of cash banks are required to hold as reserves, for the first time in 2025. This is part of a policy designed to boost the economy during a prolonged trade war with the United States.
The magnitude of the stimulus package somewhat exceeded our expectations, and that is the main driver of the price strength, said an iron ore trader in Singapore. He requested anonymity because he was not authorised to talk to the media.
Prices were also supported by positive signals about the possible easing of global trade tensions.
U.S. Treasury secretary Scott Bessent, and chief trade negotiator Jamieson Grer will meet China’s top economic official on Saturday in Switzerland. This could be a first step in resolving the trade war that is disrupting the global market.
The benchmark steel prices on the Shanghai Futures Exchange have gained some ground. Rebar rose by 0.39%, while hot-rolled coils rose by 0.59%. Stainless steel also gained 0.67%.
Other steelmaking ingredients listed on the DCE, however, posted losses due to weak fundamentals. Coking coal and a coke both lost 0.16 and 0.2% respectively. ($1 = 7.2208 Chinese yuan). (Reporting and editing by Amy Lv, Lewis Jackson)
(source: Reuters)