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In the Pertamina case, Indonesia contacts trading firms in Singapore
It was announced on Monday that the Indonesian Attorney General's Office had contacted a number trading firms in Singapore about a corruption probe involving Pertamina. In the first half of this year, a number of Pertamina subsidiaries executives were arrested for alleged corruption in relation to oil imports from 2018 through 2023. This allegedly caused state losses of $12 billion. Pertamina apologized publicly and promised to improve the transparency after the arrests. Harli Siregar, a spokeswoman for the Attorney General's Office said that investigators want to speak with some Singapore trading firms about the case. Siregar stated that earlier attempts to summon these companies to Jakarta, whose names were not disclosed, failed. Therefore, the companies may be questioned in Singapore. Siregar declined to provide any further details. "These companies will also be questioned in order to gather more evidence for the ongoing investigation." In response to an inquiry for comment, Fadjar Santoso, a Pertamina spokeswoman, said: "We respect and support the Attorney General's Office's investigation and law enforcement activities in accordance with the applicable regulations." Four sources familiar with the matter said that at least four trading firms have received a request to help with the investigation by Singapore's Corrupt Practices Investigation Bureau. They asked not to be named due to the sensitive nature. CPIB didn't immediately respond to an inquiry for comment. Bloomberg reported earlier that Singapore trading companies had been approached as part of the investigation. The Indonesian Attorney General's Office has said that it has interviewed hundreds of witnesses as part of the investigation.
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Six people killed by heavy rains in China's South, disaster alerts issued
State media reported that heavy rains over the weekend in China's southern Guangdong province and Guangxi affected trains and power supplies, and killed at least six. There were also alerts for geological disasters and severe flooding in certain parts of China. The National Meteorological Centre of China issued several heavy rain warnings from Sunday through Monday in the Jiangxi region, Zhejiang province, Fujian, Guangxi, Guangdong and Guangxi regions, and the northwestern province Xinjiang. The yellow alert, which indicates a high-risk of mountain flooding, was issued for parts of Zhejiang and Fujian. According to Shenzhen Railway authorities, heavy rains on Monday caused the closure of at least 10 railway lines that connect Shenzhen to other cities. State media reported that more than 620,000 homes in Guangxi had lost electricity in the past few days because of rain. As of Monday, the local power provider had restored electricity to about 600,000. China uses a four-tiered weather warning system, with the red color representing the most serious warning. This is followed by yellow, orange and blue. The Chinese meteorological data shows that 2024 is the hottest year since records started over 60 years ago. This is the second consecutive year where milestones have been broken. The warmer weather last year was accompanied with stronger storms, higher rainfalls and spikes in China's power consumption. CCTV, the state broadcaster, said that heavy rains were also expected in the Tianshan mountains and the far west region of Xinjiang from Monday through Tuesday. Reporting by Farah master and the Beijing Newsroom; editing by Sonali and Mark Heinrich
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British carbon prices increase after news of EU-Linkage Deal
As part of a broader reset in their relations, Britain and the European Union said Monday that they would work to link their respective carbon markets. This will lead to a 6% increase in British carbon prices. As part of a larger effort to reduce emissions and achieve climate targets, the EU and UK both charge power plants and industrial entities per metric ton they emit. A UK government statement stated that "Closer cooperation on emissions will improve the UK’s energy security by linking our respective Emissions Trading Systems and prevent businesses from being hit with the EU’s carbon tax which is due to be implemented next year." From 2026, the EU's Carbon Border Adjustment mechanism will impose an emission fee on steel, aluminium and cement imports into the EU, as well as electricity, hydrogen, fertilisers and fertilizers. Britain plans to launch their own CBAM in 2027. If both sides prioritise negotiations, then the timeline could be accelerated. Analysts at Veyt say that aligning systems to the UK's Carbon Border adjustment Mechanism (currently planned for 2027) could be ambitious. By 12.19 GMT, the benchmark UK allowance contract had risen 6% to 51.22 pounds (68.52 dollars) per ton. The prices in the UK is lower than in the EU. Analysts predicted that linking the systems would push UK prices closer to those in the EU. This could result in higher carbon costs in the UK for businesses, but they will save money in the long run because they won't have to pay the import levies. Frontier Economics' report, commissioned from several energy companies, stated that linking the two carbon market would reduce trade frictions and improve trading liquidity, as well as increase price stability, leading to an estimated 770 million pounds in savings between 2026-2030. The benchmark EU carbon trades at around 70.00 euros (78.86 dollars) per ton. (1 pound = 0.7475 pounds; 1 euro = 0.8876 euros). (Reporting and editing by Susanna Twidale; Editing by Louise Heavens David Goodman, Barbara Lewis.
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Sources say that Shanghai Exchange is looking to open up domestic nickel contracts to foreigners in this year.
Two sources familiar with the matter have confirmed that the Shanghai Futures Exchange is looking at opening its domestic nickel contract to foreign investors in this year instead of launching a new contract on its International Energy Exchange. ShFE has been exploring a more internationally-accessible nickel contract since at least 2023 as part of broader plans to build its global presence and challenge the dominance of rival the London Metal Exchange (LME). ShFE, according to industry sources, also wants to provide an alternative to LME Nickel after the trading disaster in March 2022. The LME contract had been suspended for eight consecutive days and left the industry without global benchmark pricing for the metal that is used in electric vehicle batteries and stainless steel. Two other attendees, who spoke on the condition of anonymity, said that ShFE will hold a two-day metals industry meeting in Shanghai this Thursday and Friday where nickel contract plans as well as other topics will also be discussed. The LME Asia Week, which concludes on Wednesday, is bringing together a large part of the global metals sector. Sources with knowledge stated that plans are being considered to open ShFE's existing domestic nickel contract to foreign institutional investors registered in China under the Qualified Foreign Institutional Investor Programme (QFII). QFII status allows the international market trade Chinese markets. A broker source told us that China has around 900 QFIIs. About 200-300 companies registered since September 2022 are primarily interested in commodities. In February ShFE opened a number of futures products, including stainless steel and petroleum fuel oil, to QFII Investors. When contacted by the reporter, a senior ShFE official refused to answer any questions about this topic. After hours, ShFE did't immediately answer questions sent by email. China Securities Regulatory Commission would have to approve any launch of domestic exchanges. According to a source familiar with its thinking, the commission has been encouraging exchanges to introduce international futures contracts in order to attract foreign investors. The market confidence was shaken by 2022, when the nickel price rocketed above $100,000 per metric ton. On March 8, the LME canceled all nickel trades for which the hedge fund Elliott Associates sued it. CME and ICE are also looking at cash-settled nickel derivatives, while Abaxx Technologies has launched a nickel sulphate contract this year.
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EU to lower price cap on Russian Oil to $50 Per Barrel
Valdis Dombrovskis, European Economic Commission Commissioner, said that the EU will propose this week to the G7 Finance Ministers a reduction of the current $60 per barrel cap on Russian oil seaborne as part the new sanctions against Moscow. Dombrovskis didn't mention the level at which the European Union wants the price cap to be lowered. However, EU officials who were briefed about the discussions stated that the EU would suggest $50 per barrel. When asked by reporters if the G7 Finance Ministers meeting in Canada next week would include a proposal to lower this cap, he replied: "Yes." The 18th Sanctions Package is a topic that we have raised from the side of the Commission. He said that he would also expect interest and discussion from the other G7 members in this area. G7 includes the United States, Canada and Britain. It also includes France, Germany, Italy, Japan, Germany, France and Japan. G7 meetings are also attended by the European Commission, and the euro zone's chairman of finance ministers. G7 agreed to a price cap in December 2022 that would ban trade in Russian crude oil shipped by tankers at a price above $60 per barrel. Shipping, insurance, and reinsurance companies are prohibited from handling cargoes of Russian Crude around the world unless they sell it for less. The goal of the measure was to reduce Russia's revenue so that it would have less money to pay its invasion in Ukraine, while also preventing a sudden drop in oil supplies worldwide. Russia is bypassing the G7 cap on prices by using a "shadow" fleet of tankers, which are not insured by western companies. They also use Russian Urals crude. The price of this stock has been above the cap for most of the time. The price of oil has dropped below $60 since early April as global concerns about economic growth, following U.S. tariff announcements, have also affected the price. (Reporting and editing by Louise Heavens, Emelia Sithole Matarise, and Jan Strupczewski)
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Aluminium prices fall as stocks and Chinese supplies increase
Prices of aluminium fell on Monday, following a rise in stocks registered at the London Metal Exchange and Chinese data showing a rising production. In official open-outcry trade, the benchmark three-month aluminum on the LME fell 1.2% to $2,452 per metric tonne. Aluminium stocks on warrant in the LME Daily LME data revealed that the number of tons rose to 343,025 after 92950 tons were returned on warrant. A title document conferring ownership, this is a document which confirms ownership. Reverse cancellation has reduced the number of cancelled warrants in total to 12.8%, easing concerns over the availability of aluminium on the LME ahead of this week's expiration of contracts. Spread between cash contract and 3-month aluminum On Friday, it was at a premium of $6. Data showed that China's aluminium production increased by 3,4% between January and April, to 14,8 million tons. This added further pressure. The slowdown in China's manufacturing output and disappointing retail sales figures, coupled with the stagnation of new home prices, also impacted sentiment. The LME Aluminium is supported by a 21-day moving Average of $2,435. Concerns about the future supply of bauxite, the raw material used to make alumina, from Guinea also contributed to a rise of 4.5% in alumina on Shanghai Futures Exchange. This was their highest level since March. Citi stated in a recent note that the decision of Guinea's military to revoke 51 mining licenses for bauxite and gold concessions as well as diamonds, graphite, and other minerals, last week, has added to the growing uncertainty around mining operations in Guinea. In official activity, LME copper climbed 0.7% to $9.515 per ton as the dollar dropped against a variety of currencies. Dollar-priced materials become more appealing to buyers who use other currencies when the dollar is weaker. Other metals saw a 0.1% decline in zinc to $2,689.5 per ton. Lead fell 0.7% to 1,986, Tin increased 0.1% at $32,860, and Nickel dropped 1.1% at $15,470. (Reporting and editing by David Goodman.)
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China's crude oil surplus surged in April, as refinery output dipped. Russell
In April, the amount of crude oil that was available in China for storage grew for a second consecutive month. Imports were relatively high while refinery processing declined. According to calculations based upon official data, China's crude surplus amounted to 1,89 million barrels a day (bpd), the highest since June 2023, and an increase from 1,74 million bpd last March. China, which is the world's largest crude importer and has been a major buyer of oil, has bought large quantities of discounted oil, mainly from Iran and Russia, in countries that are under Western sanctions. China does not reveal the volume of crude oil flowing in or out of its strategic and commercial stockspiles. However, an estimate can still be made if you subtract the amount of crude oil that is available through imports and domestic production from the total crude. According to data released by the government on Monday, refiners processed 14,12 million barrels per day in April. This is down from 14,85 million barrels per day in March, and 1.4% less than one year ago. Crude imports in April were down from a 19-month high (12.11 million bpd) in March. Last month, domestic production fell slightly from its 14-year-high of 4,48 million bpd in March. After subtracting the refinery output of 14,12 million bpd, there is a surplus 1.89 million BPD. The surplus crude was 880,000 barrels per day (bpd) in the first four quarters of the year. This is up from the 580,000 barrels per day for the first three months. China's refiners used up their inventories for the first time since 18 months in the first two-month period of 2025. They processed about 30,000 barrels per day more than they could get from crude imports or domestic production. The massive surpluses of March and April, however, have reversed this earlier trend. Not all this excess crude has likely been stored, as some is processed in plants that are not included in the official data. Even if you ignore the gaps in official data, there is no doubt that China imported crude oil at a rate far greater than what it needed to meet its domestic fuel needs in March and in April. Options What is the likely trajectory of China's crude oil imports and refinery production in the next few months? Refiners have more options with the large amount of crude oil surplus that has accumulated in recent months. China's refineries are known to buy surplus crude oil when prices are low and reduce imports when prices rise too fast or too high. The increase in imports between March and April is largely due to refiners purchasing Iranian and Russian crude. This was partly because these grades are cheaper than other grades but also partially due to fears that U.S. sanctions against vessels and buyers could be effective. According to commodity analysts Kpler, China's seaborne exports from Russia reached 1.38 million barrels per day (bpd) in April, and 1.22 millions bpd during March. These were the two strongest months since 1.51million bpd was recorded in October of last year. Kpler estimated that imports from Iran fell to 743,000 barrels per day (bpd) in April. This was down from 1,39 million bpd, the highest monthly figure since October. If they can find a way to avoid the U.S. sanction, it's likely Chinese refiners would continue to purchase Russian and Iranian crude. It would appear that if the volume of crude they can import from these two suppliers is limited, they will have enough in stock to avoid the risk of driving prices up by importing other sources. These are the views of a columnist who writes for.
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Blackstone's $11.5 billion TXNM Energy investment is a bet on the soaring demand for power
Blackstone Infrastructure is acquiring utility company TXNM Energy for $11.5 billion, including debt. The investment firm is betting on the rising demand for electricity in the U.S. and a move to cleaner energy sources. TXNM shares rose 9.2% in premarket trade to $57.75 after Blackstone Infrastructure, a New Mexico-based utility, announced on Monday that it valued the company at $61.25 a share. This represents a 15% premium compared to the last close of the stock, according to LSEG. More companies are investing in utilities as the U.S. is expected to have a record-breaking power demand in 2025. This will be driven by increasing energy consumption in AI and cryptocurrency datacenters, as well as residential and commercial consumers. Utility NRG Energy announced last week that it will acquire certain power generation assets in a $12 billion deal from energy infrastructure investment company LS Power. Earlier this month, KKR Investments and PSP Investments bought a 20% share in American Electric Power’s transmission network. The deal was worth $2.82 billion. Last week, it was reported that Blackstone is in negotiations to purchase the utility focused on New Mexico and Texas. This information came from people who are familiar with the situation. Blackstone, a $60 billion infrastructure asset manager, bets that the high capital requirements in grid modernization and stable, regulated returns make TXNM an ideal long-term investment. TXNM said that the long-term capital provided by Blackstone will help it meet its clean energy and electricity demands, while maintaining grid stability. The company also plans to issue another $400 million in equity before the Blackstone deal is completed. According to its website, TXNM Energy supplies electricity to 800,000. TXNM reported that CEO Pat Collawn would step down after the closing of the deal, which is expected to take place in the second half 2026. He will be replaced by Don Tarry, an insider. Tanay Dhumal reported from Bengaluru. Editing was done by Anil D’Silva and Shinjini Ganguli.
Gold prices rise on dollar weakness and US downgrade
Gold prices increased by more than 1% Monday. This was due to a weaker US dollar and a demand for safe-haven assets after Moody's lowered the credit rating of the U.S. Government amid persistent trade concerns.
At 0839 GMT the spot gold price was $3,234.41 per ounce, reversing previous session losses. U.S. Gold Futures rose 1.6% to $3237.70.
Carlo Alberto De Casa is an external analyst with Swissquote. He said that gold has recovered above $3,200 after a week of negative performance. This is due to the increased appetite for safe-haven assets as a result of concerns about the U.S. economy outlook.
Moody's, the largest rating agency, downgraded the United States' sovereign credit rating on Friday by one notch. The ratings agency cited concerns over the growing debt of $36 trillion.
The dollar fell 0.7% against a basket other major currencies. This made greenback priced gold more affordable for overseas buyers.
In television interviews, U.S. Treasury secretary Scott Bessent stated that Donald Trump would impose tariffs on trading partners who do not negotiate "in good faith" at the same rate that he had threatened last month.
The risk sentiment on the financial markets was also affected by China's soft economic data.
Gold, which is often used to store value during times of political or financial uncertainty, reached an all-time record of $3,500.05 for one ounce of gold on April 22, and has risen 22% this year.
Goldman Sachs stated in a report that despite the delayed Fed cuts and lower U.S. economic risk, they maintain their gold price forecast at $3,700/oz for year-end, and $4,000/oz for mid-2026.
In a Saturday social media post, President Donald Trump said that the Federal Reserve "should cut rates sooner rather than later".
Spot silver increased 0.6%, to $32.46 per ounce. Platinum rose 0.7%, to $994.60. Palladium gained 0.8% to $968.32.
(source: Reuters)