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HF Sinclair's profit beats expectations in the second quarter on higher refining rates
Refiner HF Sinclair surpassed Wall Street expectations for the second-quarter profits on Thursday, as higher refining rates helped offset lower volumes. Its shares rose about 1% to $43.80 before market opening. Top U.S. refiners were expected to post higher second-quarter profits, rebounding from first-quarter losses as stronger-than-expected diesel margins lifted earnings. The higher margins allowed competitors such as Valero Energy, Phillips 66 and others to surpass Wall Street expectations. Fuel manufacturers have experienced an unexpected increase in profits in recent months. This is a relief to those who saw their earnings fall from the 2022 highs, due to a rebound in demand following the pandemic and disruptions in supply after Russia's invasion in Ukraine. The adjusted refinery margin per barrel of the company was $16.50, an increase of about 46% over a year ago. The company's adjusted margin for the mid-continent region increased by about 85% to $15.52 a barrel. The higher margins in the quarter helped offset the lower throughput volume, which was down 2.4% to 660,640 barges per day compared to a year ago, and refinery utilization fell from 93.6% to 90.8%. In a press release, the company explained that the lower volumes were due in part to turnaround activities in its Tulsa refinery and Parco refinery during the quarter reported. LSEG data shows that HF Sinclair's adjusted profit for the three-month period ended June 30 was $1.70 per common share. This compares to analysts' average estimates of $1.02 per common share. Tanay Dhumal, Bengaluru. Pooja Dasai, editing.
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Oil prices are affected by rising OPEC+ supplies and tariff uncertainty
A poll on Thursday showed that analysts are maintaining their oil price predictions for 2025 largely unchanged, due to the rising OPEC+ production and continued uncertainty over U.S. Tariffs. Analysts said that the continued threat of disruption to supply due to war in Ukraine and Middle East provides some support. In the last two week's poll, 37 economists and analysts were surveyed. They predicted that Brent crude will average $67.84 a barrel in 2025 and that U.S. oil would hover around $64.61, which is in line with estimates from last month of $67.86 a barrel and $64.51. The poll showed that Brent prices are likely to fall next year and reach $62,98 in the second half of 2026. According to LSEG, Brent and WTI prices have averaged around $70.60 each and $67.46 respectively so far this year. Investors are focused on the ongoing U.S. tariff negotiations and August 1 deadline. Markets anticipate that new tariffs by the Trump administration could slow global growth, and therefore oil demand. The uncertainty surrounding President Trump's plans to impose tariffs on goods and services affects the markets as well as demand. The OPEC+ alliance is also a source of increased supply. The mismatch between demand and supply remains," said Thomas Wybierek at NORD/LB. In April, eight members of OPEC+ (which includes Russia) began increasing production. Sources say that the eight countries are expected to hold a separate gathering on August 3, and will likely agree to an additional 548,000 bpd for September. Analysts polled by predict that global oil demand will grow by over 797,000 barrels per day (bpd) in 2025. This is compared to an estimate of 700,000 by the International Energy Agency. Most analysts have noted, however, that oil demand may weaken in 2025's fourth quarter due to a slowdown in the economy and seasonal factors. At the same time, OPEC+ will be expected to pump even more oil into the market. This could lead to an oversupply. Moutaz Alaghlibi is a senior energy economist with ABN AMRO. He said, "We expect to see prices decrease in the second halves of 2025 due to both a slower growth in demand and an increase in supply." Participants to the poll also noted that the geopolitical premium associated with the Russia-Ukraine War and Middle East tensions will likely persist until 2025. Cyrus De La Rubia is the chief economist of Hamburg Commercial Bank. He said that geopolitical factors would continue to support the oil price on the margin and help to keep Brent at higher $60s than lower $60s by 2026.
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Chile takes new measures to save the endangered Darwin's Frog
Chile has launched an effort to save Darwin's Frogs, tiny amphibians with leaf-like skin. The males of these amphibians carry tadpoles in pouches inside their mouths. The Climate Change and Sustainability Committee of the Chilean Government has launched an initiative to protect habitats, reproductive areas and working with private landowners. The goal of the project is to find new populations and, if feasible, increase the size of current populations. Originally thought to be one species, the frog actually consists of two species: the endangered Rhinoderma darwinii, also known as the Southern Darwin's Frog, and the Rhinoderma darwinii, or Northern Darwin's Frog, which is classified as "critically threatened" and almost extinct. Charles Darwin, during his 1834 journey around the globe, discovered this frog measuring 3 cm (1.18 inch) in Chile's south Chiloe Islands. The humid forests in southern Chile and Argentina, where Darwin's Frog lives, have been damaged by forest fires, climate changes, invasive species, and urbanization. Charif Tala is the head of the Environment Ministry’s Species Conservation Department. He said that the fragmentation in Chile’s forests caused the population of frogs to drop to 62. After a drastic decline, the Ministry of Environment only started monitoring frog population in recent years. Andres Valenzuela is the director of NGO Ranita de Darwin in Chile. He hopes that the initiative will bring awareness to the people of Chile about the plight of the frog. Valenzuela stated, "We are hopeful that this will improve conservation and that people in our country will start to appreciate the unique and important species that we have in our indigenous forests." (Reporting and writing by Rodrigo Gutierrez, Fabian Cambero, Daina Beth Soolo; editing by Sandra Maler).
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India's top Court to reconsider order cancelling JSW Steel's $2.3 Billion Bhushan Power Deal
The top court in India said Thursday that it would review its decision to halt the $2.3 billion acquisition of Bhushan Power and Steel by Indian steelmaker JSW Steel. It claimed that this order failed to take into account past precedents. The Supreme Court of India rejected the JSW Steel deal to buy Bhushan Power and Steel in May. This was six years after JSW Steel had been approved. It upset buyers and cast a shadow on Indian bankruptcy reforms that were introduced in 2016. JSW Steel then asked the top court for a review of its ruling. Judges heard the review appeal on Thursday and stated that the ruling quashing the agreement did not take into account the legal position established in past precedents. The top court said: "We find that this is a case in which the judgment under review should be recalled, and the matter must be considered again." The Supreme Court slammed the deal in May after finding "a whole spectrum of flaws and lacunas" in the process of taking over the company. It was one of the largest insolvency transactions in Indian history. The court also ordered that the banks return any funds they have recovered from JSW during its takeover. It halted the liquidation process a few weeks later, giving JSW Steel time to request a review. The Supreme Court will next hear the case on August 7. Reporting by Arpan chaturvedi from New Delhi. Writing by Abinaya Vijayaraghavan. Editing by Janane Vekatraman, Mark Potter.
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Jakarta: EU will grant zero tariff rate to 1 million metric tons of Indonesian crude palm oils
An Indonesian Minister said that the European Union would grant a zero-tariff rate for a 1 million metric ton export quota per year of Indonesian crude oil palm when both sides ratify an upcoming free trade agreement. Airlangga hartarto, Indonesia’s economic minister, stated that the EU and Indonesia will sign a free trade agreement in September, and the ratification should follow next year. He added that the EU would set a quota at a future date for Indonesian palm kernel oil exports, based upon Indonesia's shipments from a previous year. Susiwijono Megiarso said that the EU would impose a tariff of 3% on crude palm oil exported by Indonesians who do not meet the quota. Susiwijono, a Susiwijono official, said that the Southeast Asian nation exported around 1.9 millions metric tons crude palm oil to Europe last year. In Brussels, President Prabowo Subianto and Ursula von der Leyen of the European Commission reached a political accord this month in order to progress the free-trade agreement. The agreement has been named the Comprehensive Economic Partnership Agreement. (Reporting and editing by David Stanway, Gayatri Sulaiman and Ananda Teresia)
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Indian state refiners pause Russian oil purchases, sources say
Industry sources claim that Indian refineries have stopped purchasing Russian oil over the last week, as discounts are shrinking this month. Also, President Donald Trump has warned Americans against buying oil from Moscow. India, which is the third largest oil importer in the world, is the top buyer of Russian crude shipped by sea. Four sources familiar with the refiners’ plans to purchase Russian crude have told us that the country's state-owned refiners, Indian Oil Corp., Hindustan Petroleum Corp., Bharat Petroleum Corp. and Mangalore Refinery Petrochemical Ltd., have not purchased Russian crude for the last week or so. IOC, BPCL HPCL MRPL, and the Federal Oil Ministry did not respond immediately to'comments. Sources said that the four refiners buy Russian oil regularly on a delivery basis, and they have turned to the spot market for supply replacements - mainly Middle Eastern grades like Abu Dhabi's Murban oil and West African crude. Reliance Industries, Nayara Energy and other private refiners are India's largest Russian oil buyers. However, state refiners have control of over 60% India's total 5.2 million barrels a day refining capability. Trump announced 100% tariffs against countries that purchase Russian oil, unless Moscow agrees to a major deal of peace with Ukraine.
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Vedanta, an Indian mining company, misses its quarterly profit forecasts due to weak aluminium prices
Vedanta, an Indian conglomerate that converts metals into oil, missed its quarterly profit forecast on Thursday as lower aluminum and copper prices and increased tax expenses outweighed the impact of a strong local demand. Vedanta’s aluminium business in India is the largest and accounts for nearly 40% of its revenue. Copper is followed by zinc as the company's second largest business. During the quarter under review, benchmark aluminium and copper prices fell 4% and 4,1% respectively on an annual basis, due to geopolitical tensions, and uncertainty over U.S. Trade policies. Mining companies tend to see their margins and selling prices affected by lower commodity prices. Vedanta’s total revenue increased 6.2% on an annual basis to 374.34 billion Rupees ($4.3billion) for the quarter ending June 30. This was driven by increases in revenue from copper and aluminium, which both grew by 7.7% and 34.6% respectively. The net profit of the company has decreased to 31,85 billion rupees, from 36.06 billion a year earlier. LSEG data shows that analysts, on average, predicted a profit of approximately 34.83 billion rupees. The company's earnings before taxes, interest, depreciation, and amortization increased by about 2%, to 60.53 billion rupies, while its tax expenses rose to 15.96 billion rupies from 8.31 billion rupies a year earlier. Vedanta’s operating profit margin was flat at 21%. Vedanta subsidiary Hindustan Zinc reported a higher-than-expected profit in the first quarter, thanks to a strong demand for metal that helped offset the price impact. $1 = 87.6050 Indian Rupees (Reporting and editing by Manvi Pan and Anuran Sahdhu)
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The world stock market is mixed due to weak economic data, but also positive earnings.
The world stock market was mixed on Thursday as markets considered a range of economic indicators, including central bank rate decisions and inflation data, along with last-minute negotiations for a trade agreement ahead of U.S. president Donald Trump's deadline of August 1. Bank of Japan has recently increased inflation forecasts and held interest rates, indicating cautious optimism about Japan's economy. Japan's short-dated bond yields rose at one point to their highest level since early April. However, they retreated after the BOJ policy statement caused market participants to delay expectations of any future interest rate increases. The Nikkei closed just under 1% higher, and the yen gave up its early gains. Investors also focused on earnings. Nasdaq Futures rose 1.4% following better-than-expected results from Microsoft and Meta Platforms. S&P futures increased by over 1%. Dan Coatsworth is an investment analyst with AJ Bell. He said, "Microsoft and Meta have just delivered earnings that most companies only dream about." Investors are ecstatic because they've smashed the market predictions by a mile. Stock indexes across Europe were also supported by earnings. Around 1025 GMT, the Stoxx 600 pan-European index remained steady. The index is expected to finish the month up 1.6% as improved economic data from the U.S., Europe and other countries was better than expected. Standard Chartered, France's Societe Generale and the region's banks all posted gains of over 1.5% Thursday following positive results. MSCI's world-wide index was flat. This was due to the decline in Chinese shares after official PMI gauges revealed weaker economic activity than expected during July. China's blue-chip CSI 300 index ended 1.8% down, its largest single-day drop since April 7. Hong Kong's stock index also closed 1.6% down. Investors in Asia also considered the implications of the trade agreement between the U.S.A. and South Korea, as well as whether Trump’s initial announcement that a 25% tariff would be imposed on India should have been taken seriously. This was especially true since it came in the middle trade negotiations. The benchmark Nifty 50 index in India is just barely in positive territory, after recovering earlier losses. The Korean won rose 0.3% following Trump's announcement that the U.S. will impose a 15% tariff for imports from South Korea. In return, South Korea would invest $350 billion into U.S. projects as well as purchase $100 billion of U.S. products in energy. The announcement is part of a series that was rushed to be made before the deadline of Friday, April 2, in order to avoid the imposition by Trump of his "Liberation Day", or April 2 tariffs. Copper futures fell 19.4% as Trump announced that the U.S. will impose a tariff of 50% on copper pipes, wiring and other copper products. This was far less than the expectations of more sweeping restrictions. On Hold The Federal Reserve’s rate-setting panel voted on Wednesday 9-2 to keep U.S. interest rates unchanged for the fifth time in a row. Two Fed governors dissented for the first times in over 30 years. The comments made by Fed Chairman Jerome Powell after the decision undermined confidence in the ability of borrowing costs to fall in September. The dollar index remained steady at 98.718, down from its two-month high, 99.987, which it reached on Wednesday. The index will gain 3.1% for the month. This is its first increase since 2025. "Although Federal Reserve kept rates at their recent rate setting decision the possibility of rate reductions at upcoming meetings remain live, as they balance the softening economy data with the possible for persistent inflation," Manusha Samanthaweera, Fixed Income Investment Director at Capital Group. The U.S. Gross Domestic Product growth was higher than expected during the second quarter. However, the details painted a picture that showed an economy in decline and plagued with uncertainty due to Trump's protectionist policies. Brent crude futures, for September delivery, were down 26 cents at $72.98 per barrel. U.S. West Texas intermediate crude for September was down 25 cents at $69.75 per barrel as traders exited their positions that would expire on Friday. Brent crude futures for October also dropped 33 cents, to $72.13, amid reports that EU tariffs on crude palm oil and kernels may be removed. Reporting by Nell Mackenzie, Gregor Stuart Hunter. Additional reporting by Ankur Banerjee. Jamie Freed, Mark Potter and Mark Potter edited the article.
U.S. Steel names three American directors to its board of directors following the Nippon Steel deal
U.S. Steel announced on Wednesday that it has appointed three American board members to its company. This comes more than a week after Nippon Steel completed its $14.9 billion acquisition of U.S. Steel.
The company is now a Nippon Steel subsidiary and its board has seven members, of which four are U.S. Citizens, including three independent U.S. Directors.
John Donovan is a former CEO of Lockheed Martin and Robert Stevens was formerly a member of U.S. National Security Telecommunications Advisory Committee.
Timothy Keating was named as a member of the board. He is a retired admiral of the U.S. Navy who served previously as director of the Pentagon's joint staff as well as commander of United States Pacific Command.
Nippon signed the agreement last month to gain approval for the acquisition of U.S. Steel, after high-level opposition. It also
Pledged
A board with a majority of Americans and a CEO from the United States would help to calm down any concerns.
The agreement granted U.S. president Donald Trump an economic golden share as well as the right to nominate a board member.
It was not immediately apparent if any of the members of Trump's board were appointed directly by him.
The deal gives the U.S. Government a unique level of control over the companies, allowing it to veto a range of corporate decisions from shutting down plants to reducing production capacity and moving jobs abroad. Reporting by Utkarsh shetti and Aishwarya jain in Bengaluru, editing by Pooja desai
(source: Reuters)