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Exxon to shut down Scottish chemicals plant by 2026 amid uncertainty
Exxon Mobil announced Tuesday that it will close its Fife Ethylene Plant (FEP) located in Scotland by February 2026. The company said the plant is no longer viable due to high supply costs, weak markets and the UK’s economic and political environment. The European Union's fourth largest exporting sector, after machinery, automobiles and pharmaceuticals has been under pressure due to soaring energy prices following Russia's invasion in Ukraine, and an aging infrastructure. This has led them to become more dependent on imports for key feedstocks like ethylene and propylene. Exxon said that the closure would affect 179 employees and 250 contractors. However, 50 employees could be transferred to the Fawley Petrochemical Complex. Exxon said it had evaluated various options for continuing production and tested the markets for a possible buyer for the ethylene facility located near the town Cowdenbeath, in Fife. The company stated that "FEP was a cornerstone in chemical production in Britain for over 40 years. Its closure reflects the challenges in operating in an environment where policies are accelerating the departure of vital industries and domestic manufacturing and the high-valued jobs they provide." The shutdown comes as a result of the falling capacity for oil refining in Europe, where companies are looking to convert or close assets. Michael Shanks, the Energy Minister, said that Britain's Lindsey refinery was insolvent and would close down after it failed to find buyers. (Reporting and editing by Shilpa Majumdar in Bengaluru. Pooja Menon is based in Bengaluru.
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Exxon to shut down Scottish chemicals plant by 2026 amid uncertainty
Exxon Mobil announced Tuesday that it will close its Fife Ethylene Plant (FEP) located in Scotland by February 2026. The company said the plant is no longer viable due to high supply costs, weak markets and the UK's economic and policy climate. The European Union's fourth largest exporting sector, after machinery, automobiles and pharmaceuticals has been under pressure due to soaring energy prices following Russia's invasion in Ukraine, and an aging infrastructure. This has led them to become more dependent on imports for key feedstocks like ethylene and propylene. Exxon has said that it has assessed different options for continuing production and tested the markets for a possible buyer for the ethylene facility located near the town Cowdenbeath, in Fife. The U.S. Oil Major said that "FEP was a cornerstone in chemical production in Britain for over 40 years. Its closure reflects the challenges in operating in an environment where policies are accelerating the departure of vital industries and domestic manufacturing and the high-valued jobs they provide." Financial Times reported this development first earlier that day. The report said that the company will lay off 200 employees as a result. Closures and conversions of oil refining assets are being undertaken by companies in Europe due to a decline in refining capacities. Michael Shanks, the Energy Minister, had stated in July that Britain's Lindsey refinery insolvent would close after it failed to attract buyers. (Reporting and editing by Shilpa Majumdar in Bengaluru)
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Russell: China increased its crude stockpiles in October, as oil prices declined.
In October, China's crude oil storage volumes likely increased as robust imports from China and domestic production outweighed an increase of refinery processing. According to calculations based upon official data, China's crude oil surplus was 690,000 barrels a day (bpd), up from 570,000 bpd a month earlier. China's rate of adding crude oil inventories to its reserves is seen as an important factor for the demand for crude oil in the world’s largest importer. It also adds uncertainty to price forecasts. According to the National Bureau of Statistics, data released on November 14, China's refineries produced 14.94 million barrels per day in October. This is an increase of 6.4% over the same period last year. However, this is down from the previous two-year peak of 15.26 millions bpd achieved in September. In October, crude imports totaled 11.39 million barrels per day (bpd) while domestic production stood at 4.24 million. This gives a total of 15.63 millions bpd available for refiners. After subtracting the refinery processing, there are 690 000 bpd of crude oil that can be added to strategic or commercial storage. China does not reveal the volume of crude oil flowing in or out of strategic and commercial stocks, but it can be estimated by subtracting the amount processed from total crude produced domestically and imported. Not all the excess crude is likely to have gone into storage. Some of it was processed in plants that are not included in the official data. Even if you allow for these gaps, however, it's clear that China imported crude oil at a much higher rate from March to July than was necessary to meet its domestic fuel needs. The surplus crude for the first 10 month of the year is about 900,000. This is because the combined imports and domestic production are 15.65 millions bpd. Refinery processing was 14.75 million. The surplus was built up from March, after refiners drew on their inventories for the first time in January and Feburary when they processed crude at a rate that exceeded available crude by approximately 30,000 bpd. It was the first since September 2023 when the throughput of crude oil from domestic production and imports exceeded the amount imported. Price Impact The decline in inventories for 2025 was accompanied by rising oil prices. Brent futures, the benchmark contract, reached their highest level so far this season of $82.63 per barrel on 15 January after steadily increasing from a price of around $70 at the beginning of December. Since then, crude oil prices have been trending lower with some spikes due to geopolitical tensions like the conflict between Israel and Iran that occurred in June. Brent crude oil ended Monday at $64.20 per barrel, the midpoint of a range of $60-$70 that has been in place since the beginning of August. China's refiners, as well as the authorities in Beijing, don't discuss their strategies publicly, but it is clear that they import more crude oil when they consider prices reasonable and reduce them when prices are too high. In September, the excess crude fell to 570,000 bpd from 1.10 million in August. Brent crude reached a six-month-high of $81.40 per barrel on June 23, when the Israel-Iran war was raging. China's refiners are now buying more crude oil as prices have fallen since June. China's storage flows are a floor and a ceiling for crude oil prices, which means that China is likely to absorb any global surplus as OPEC+ increases output targets. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
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Gold falls to a one-week low after traders reduce US rate cuts bets
The price of gold fell to its lowest level in over a week Tuesday, as faded bets that the Federal Reserve would cut interest rates next month weakened demand before delayed U.S. Economic Data releases this week. As of 1213 GMT spot gold was down 0.1% to $4,039.71 an ounce, after reaching its lowest level since November 10, earlier in the session. U.S. Gold Futures for December Delivery fell by 0.9% to $4.039 an ounce. Market participants are pricing in interest rate reductions for the United States following more hawkish remarks from Fed officials, said UBS analyst Giovanni Staunovo. Gold prices are expected to drop soon as the Fed is still cutting rates multiple times in the next quarters and central banks continue to diversify into gold. The CME FedWatch tool revealed that the markets have reduced their bets on a rate reduction next month from 67% to just under 46%. Last week's end of the longest U.S. shutdown resulted in a stoppage of official economic data. This left policymakers and traders blind before next month’s Fed policy meeting. The traders had hoped that the return of official data could make the case for an interest rate cut in December, but their hopes have faded since more Fed officials signaled caution last week. Fed Vice Chairman Philip Jefferson said that on Monday, the central bank must "proceed gradually" with further rate reductions. Gold that does not yield tends to perform well when interest rates are low and in times of economic uncertainty. Investors will look for additional clues in the release of minutes on Wednesday from the Fed's most recent meeting, and the September non-farm payrolls that are due Thursday. "We continue to see a long-term positive fundamental backdrop for the gold market." "The U.S. economic climate continues to cool. U.S. rates will fall, and the U.S. currency should weaken in response," said Julius Baer's Carsten Menke. Palladium rose 0.7%, to $1,402.73, while platinum edged up marginally at $1,534.30. (Reporting and editing by Alexander Smith, Emelia Matarise and Jan Harvey; reporting by Noel John from Bengaluru)
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African Rainbow Minerals is considering a Papua New Guinea Copper Venture with Newmont Corp
African Rainbow Minerals is evaluating a significant copper venture in Papua New Guinea, in partnership with U.S. mine giant Newmont Corporation. Chairman Patrice Mtsepe announced this on Tuesday. Motsepe told Bloomberg that he was currently examining a massive investment in Papua New Guinea. "We have a partnership with Newmont which could require up to four or five billions of dollars in investment down the road." Motsepe stated that his company has a strong financial position to undertake such a large project. He said the company had 13 billion rand in cash ($756.2m) plus 7 billion rand of facilities. He said that a large portion of the money would be spent in Australia and Papua New Guinea which are primarily regions rich in copper. Shareholders should expect that company to consider these areas. Motsepe stated that the Papua New Guinea Investment is viewed by him as a long term strategy in line with global trends of decarbonisation and increasing demand for essential minerals. The chairman said that ARM would continue to invest in South Africa in gold, platinum metals, manganese, iron ore, and iron, as well as a stake in copper in Canada.
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Eight people arrested in connection with possible plot against Brussels prosecutor
The Belgian State Prosecutor's Department announced on Tuesday that eight people in the drug-trafficking underworld had been arrested for a possible assassination plot against the Brussels Chief prosecutor. The arrests took place on Tuesday, following searches at 18 locations in Brussels. The Brussels police informed the Belgian state prosecutor in July 2025 of a plot to assassinate the Brussels chief prosecutor. The Belgian prosecutor said that the main suspects had a criminal history linked to organised drug trafficking and could be involved in the Albanian criminal mafia. In recent years, Brussels has seen a rise in violence associated with drug gangs. Officials have stated that more than 100 of Europe’s most dangerous criminal organizations operate in Belgium. The authorities in Brussels had to close several metro stations during the month of February as they searched for two suspects after a shooting that was linked to drug dealers. (Reporting and editing by Benoit van Overstraeten; Sudip Kar Gupta)
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Wadephul, a German MP, says that Serbia's EU candidate must adhere to the bloc's Russia policies
German Foreign Minister Johann Wadephul on Monday urged Serbia to align its foreign policy and security towards Russia with that of the European Union, if it wanted to join the bloc. Serbia's populist President Aleksandar Vucic tries to balance his country's European Union candidacy with its traditional ties to Russia and China. Serbia depends on Russian gas and its only oil refiner NIS (Russian-owned) is subject to U.S. sanctions because of the conflict in Ukraine. Wadephul told his Serbian counterpart Marko Dridic that Ukraine is fighting for freedom not only for itself but also for the whole of Europe. "We need to see a commitment from all the states in the European Union, and also from the countries that are joining." He said that before Serbia can join the 27-nation group, it must show it is "on a clear road towards the European Union," which includes aligning itself with EU foreign policy and security. Belgrade, despite refusing to join Western sanctions against Russia for its invasion of Ukraine has condemned Moscow's policy in international forums such as the United Nations. Reporting by Alexander Ratz, Writing by Ivana Skularac and Aleksandar Vasovic; Editing by Alexandra Hudson
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Copper drops for a third day amid fears of tech valuation
Copper fell for the third consecutive session on Tuesday. It hit its lowest level in almost two months, as industrial metals slid along with a wide sell-off of risky investments sparked off by fears about an overvalued technology sector and faded hopes of a U.S. interest rate cut. As of 1026 GMT, the benchmark three-month copper price on the London Metal Exchange had fallen 0.7% to $10,702.50 a metric tonne. The metal, which is used for construction and power, and was expected to be a beneficiary of the AI boom, fell by as much as 1.1% earlier to $10,660.50. Its lowest price since November 5. Copper has fallen by around 4.5% since the peak of 11,200 dollars it reached on October 29. One trader, however, attributed the recent drop in copper to a "correction", rather than to an AI bubble burst. He added that "the AI trend will continue". LME Copper Stocks The highest level since October 1 was reached by an increase of 4,450 tons. Cash LME contracts were trading at a discount of $36.50 per ton to the forward three-month contract There is no shortage of metal in the near future. The government shutdown delayed the release of September U.S. jobs data. Investors are more sensitive to the labour market signals, as they re-evaluate the Federal Reserve's near-term course. Aluminium, another LME metal, fell by 0.8%, to $2,792.50 per ton. It also lost ground for the third consecutive day, and reached its lowest level since October 21. Tin fell 0.4% to $35,665, and lead was unchanged at $2 037.50. Zinc fell 0.6% to 2,977 dollars, its lowest level since October 20. Nickel dropped 0.3% to $14,595 after reaching a new seven-month low. LME nickel stocks The 257,832 tonnes are the highest since May 20,21. (Reporting and editing by Subhranshu Sahu, Shreyan Biswas and Subhranshu Sahu; Additional reporting by Dylan Duan & Lewis Jackson)
EU sets quotas for ferroalloy imports
The European Union established import quotas for alloys of steel that contain manganese and silicon on Tuesday to protect domestic producers from a flood of cheap imports.
The three-year measure will consist of country-specific import quotas for each type of ferroalloy. This will limit the amount of imports allowed into the EU without paying duty.
If the prices of imported goods exceed thresholds, they may be allowed to enter the country without paying any duties. The tariff is applied if the price does not reach the threshold.
In a press release, European Trade Commissioner Maros SEFCIC said that "the EU cannot afford to allow a strategic sector to collapse under the pressure of increasing import pressures". He added that these measures are necessary to protect the industrial resilience of the EU.
According to an investigation by the European Commission, imports grew by 17% from 2019 to 2024, and the share of EU producers dropped from 38% to 24%.
Euroalliages, a sector body, said that EU companies are struggling to compete against exporters from China and India, who sell at lower prices.
The EU has designated silicon and manganese metals as critical raw materials. These metals are used in the production of steel that is stronger and more corrosion resistant for construction, automotive, aeronautics, and military applications. Many EU countries are increasing their spending on these materials.
These safeguard measures are also applicable to Norway and Iceland as they represent about half the imports. The Commission announced that it would consult with both countries on a quarterly basis and review the measures.
Aluminium is also produced using manganese-based alloys and silicon-based elements. A small portion of the aluminium goes to chemical companies, which are often used for solar panels. (Reporting and editing by Sudip K. Gupta, Joe Bavier and Alessandro Parodi)
(source: Reuters)