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Petrobras sold 20 million liters at auction of diesel in southern Brazil.
Two sources said that Petrobras, the Brazilian state-run oil company, sold 20 million liters of diesel in the southern Rio Grande do Sul State at an auction on Wednesday. The company also stated that the price was up to $1.78 ($0.3450) per liter higher than its current local distributor prices. The immediate impact of the?spike in prices for diesel resulting from U.S. and Israeli attacks on Iran is a threat to Brazil's agricultural sector. It will increase costs if producers are harvesting a record soybean crop or planting corn that can not be delayed. Diesel prices in Brazil are rising despite Petrobras not changing its prices. This is because some fuel is imported or produced locally by refineries who follow global oil price movements. The?report on Tuesday, citing?sources, said that?Petrobras planned?to hold an auction in response to reports of a shortage of diesel in?Rio Grande do Sul. One person stated the initiative was needed "to try?to calm the market nerves." In a Tuesday statement, the?company didn't?explicitly? confirm the auction.
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Oil pushes up, stocks fall and Treasury yields rise
?Global stocks fell on Wednesday and Treasury yields surged after data showed that U.S. Inflation picked up as predicted, while oil 'prices' resumed their rise as the U.S. - Israel war?on Irandragged out. The Labor Department reported that the Consumer Price Index rose by 0.3% in the month of February. This was in line with expectations and higher than the 0.2% rise in January. CPI increased 2.4% over the past year, while core rates, which exclude food and energy, rose 2.5%. Both are in line with expectations. Wall Street's major stock indexes ended flat or lower. The Dow Jones Industrial Average dropped about 0.6% while the S&P500 and Nasdaq Composite were barely changed. The consumer price index did not reflect the sharp rise in gasoline prices and other items that has occurred since the Middle East 'war' broke out 12 days ago. The markets already indicate that traders are increasingly confident about the likelihood of central banks raising interest rates in the near future. "February's numbers of inflation were going in the right directions, but the Middle East conflict has changed the course." We will see inflation instead of deflation as a result of energy. As the fertiliser market is chaotic, food prices could be showing signs of inflation. On Wednesday, oil prices rose nearly 5% due to fears of a supply disruption. Analysts said that the proposal by the International Energy Agency for a record-breaking release of reserves was not enough to calm these concerns. Brent futures?rose $4.18 or 4.8% to settle at $91.98 a 'barrel. U.S. West Texas intermediate CLc1 finished the session $3.80 or 4.6% higher at $87.25 a 'barrel. The MSCI All-World Index fell 0.2%, and European shares dropped. This left the STOXX 600 index down 0.6%. The broadest MSCI index of Asia-Pacific stocks outside Japan closed 1 percent higher. Investors are on edge, as the Middle East conflict could freeze global energy trading and spark a price spike. This is a threat that world leaders have been scrambling to address. Since the start of the conflict, ships have been hesitant to enter the Strait of Hormuz because of threats against vessels. Iran's military said that oil could reach $200 per barrel. Three other vessels were also hit by projectiles. Christine Lagarde, President of the European Central 'Bank said that on Tuesday they would do all they could to control inflation and avoid a repetition of?the energy price shock in 2022. The?euro dropped around 0.34%, to $1.157. Meanwhile, the pound remained unchanged at $1.341. The dollar rose 0.6% to 158.9, as the yen fell further. BOND YIELD SURGE ADDS ADDITIONALLY TO THE OVERHEATING CONCERNS U.S. Treasuries dropped?again Wednesday, pushing up the yield on 10-year benchmark note by 9 basis points to 4,226%. Concerns about other market segments, including private credit and massive investments in AI, are heightened by the recent surge in bond yields. Investors also were'reminded' of the vulnerabilities in private credit by a source 'close to JPMorgan Chase who said that the bank was tightening lending and had lowered the value of certain loans held by private credit groups. Blue Owl Capital, Ares Management and other publicly traded asset managers lost ground Wednesday due to the jitters felt in the financial sector. (Reporting from Lawrence Delevingne, Boston; and Amanda Cooper, London. Rae Wee contributed additional reporting from Singapore. Pooja Deai, Bernadette, Baum, Maclean, Nick Zieminski, and Aurora Ellis edited the story.
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Catsimatidis, a billionaire Catsimatidis, says that the pain at the pump will subside in about a month.
In an interview with NBC News on Tuesday, John Catsimatidis said that consumers will be relieved of the steep increases in fuel prices at the pump in the next month or two. Fuel prices have soared due to supply disruptions resulting from the Israel-U.S. conflict with Iran. This poses a serious threat to U.S. president Donald Trump and the Republican Party in advance of November's midterm elections. Catsimatidis said that he believed the worst of the price increases were over. U.S. average gasoline prices have risen by nearly 60 cents in the past month since the joint U.S. and Israeli attacks?on Iran began on February 28. They stood at $3.58 a galon on Wednesday according to?AAA's data. According to an Ipsos survey that ended on Monday, diesel prices have risen by more than $1 and Americans expect the price to continue to increase over the next 12 months. As the war continues, three more ships were struck in the Strait of Hormuz Wednesday. The Strait of Hormuz is a crucial chokepoint for the global oil supply and its near closure has forced Middle Eastern countries and their Asian customers to reduce refinery. Catsimatidis is the chairman and CEO of United Refining Co. He said that the current crisis has highlighted a need for increased investment in U.S. oil production and refinement, but this will require stability within White House policy. When asked if he'd consider upgrading or expanding United Refining’s 70,000 barrels-per-day refining facility in Warren, Pennsylvania he said: "Absolutely yes." Energy experts questioned whether the U.S. needed a new refinery after Trump announced Tuesday that a plant would be built on the southern border of the U.S. The opening of massive new refineries in Nigeria and other countries is putting pressure on the U.S.'s refining economy.
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US gasoline prices exceed $3.50 per gallon as the Iran war continues
Gasoline prices in the United States have risen to their highest level since May 2024. This is according to data from AAA and GasBuddy, two price tracking services. The 'Israel-U.S. War with Iran' has stoked supply concerns. Fuel prices have risen across the world due to disruptions in Middle Eastern oil exports via the Strait of Hormuz. This could pinch the wallets of consumers and derail the global economy. This could be the greatest risk to U.S. president Donald Trump and the Republican Party during the November midterm elections. Trump's vow to lower energy prices was a key factor in his re-election bid in 2024. The impact of geopolitical shockwaves on your finances doesn't take many months. "They take days," said Bill?Stern. Chief executive officer of U.S. based small business lending Cardiff. You feel it the moment you fill your car up to take your kids to practice. The average U.S. retail gasoline price has risen nearly?60 since Trump made his decision on February 28 to?join Israel and attack Iran. It stood at $3.58 per gallon on March 5. This rapid increase of 20% in just 11 days is comparable to the spike in prices four years ago, after Russia invaded Ukraine. It's an unprecedented rise. More increases will likely follow as more ships are hit in the Strait of Hormuz and the United States transitions to summer-grade gas, which is cleaner to burn but more expensive to produce. Denton Cinquegrana is the chief oil analyst for Oil Price Information Service. He said that spot and wholesale gasoline prices registered double-digit gains on Wednesday. The next day, wholesale price changes are usually reflected on the pump. The price of crude oil, the largest component in fuel prices, was also rising on Wednesday, despite the proposal from the Paris-based International?Agency for Energy to release 400?million barrels worth of oil. Cinquegrana stated that the IEA announcement on the release of oil raised more questions than it answered, as the group didn't announce who would release the oil or when.
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Oil pushes up, stocks fall and Treasury yields rise
Wall Street shares dropped but the dollar held steady on Wednesday after data showed U.S. Inflation picked up as predicted in February. However, most investors focused on the 'oil price' and the possibility that the U.S. - Israel war against?Iran could impact economic growth on a long-term basis. The Labor Department reported that the consumer price index increased 0.3% in the month of February, which was in line with expectations and higher than the 0.2% rise in January. CPI increased 2.4% over the past year, matching expectations. The core rate, which excludes energy and food prices, also rose 2.5% in line with predictions. Wall Street saw the Dow Jones Industrial Average fall about 0.6% and the S&P 500 drop 0.1%. The Nasdaq Composite remained unchanged. The consumer price index does not reflect the dramatic increase in prices of items like?gasoline that has occurred since the Middle East war began 12 days ago. The markets already indicate that traders are increasingly confident about the likelihood of central banks increasing interest rates in the near future. "February's numbers for inflation were going in the right directions, but the Middle East conflict has changed the course of the trend. We will see inflation instead of deflation as a result of?energy. As the fertiliser market is chaotic, food prices could be showing signs of inflation. The oil market had another volatile session, but the price movements were muted in comparison to Monday's record-breaking price swings. Three sources told us on Wednesday that the International Energy Agency would recommend releasing 400 million barrels, the most in IEA 'history', in order to curb soaring oil prices. Japan and Germany have announced that they will begin releasing reserves. Brent crude futures rose by around 4% to $91 per barrel after rising earlier by up to 6%, reaching almost $93. MSCI All-World fell by 0.2%, European shares declined and the STOXX 600 was down 0.6%. MSCI's broadest Asia-Pacific index outside Japan closed 1% higher. Investors are on edge, as the Middle East conflict could freeze global energy trading and cause a price spike. World leaders are scrambling for solutions to this risk. Since the U.S. and Israeli war against Iran, the Strait of Hormuz has been a dangerous place for ships to enter. Iran's military said that on Wednesday, the world must be "prepared" for oil prices to reach $200 per barrel. Christine Lagarde, President of the European Central Bank (ECB), said that on Tuesday it would do all to control inflation?to prevent a repeat?of?the energy price shock in 2022. Several ECB officials prefer to wait and see before taking any action. The euro dropped around 0.3%, to $1.157. Meanwhile, the pound remained unchanged at $1.341. The yen continued to weaken, leaving the dollar at 158.9 up 0.5%. The BOND YIELD SURGE Adds to Overheating Concerns Due to the fear of continued energy price pressures, bond yields have risen this week. This has added to worries about other market segments that are at risk of being overheated, including private credit and vast investments in AI. Investors also were reminded about the vulnerabilities in private credit when a source close to JPMorgan Chase revealed on Wednesday that the bank was reducing the value of certain loans held by private credit groups and tightening lending to the sector. Blue Owl Capital, Ares Management and other publicly-traded asset management firms lost ground Wednesday due to the jitters felt in the financial sector. U.S. Treasuries dropped again on Wednesday. The yield on the benchmark 10 year note increased by 8.2 basis points, to 4.218%. Reporting by Lawrence Delevingne, Boston; and Amanda Cooper, London. Rae Wee contributed additional reporting from Singapore. Pooja Dasai, Bernadette, Baum, William Maclean and Nick Zieminski edited the story.
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US gasoline prices exceed $3.50 per gallon as the Iran war continues
Data from AAA and GasBuddy, two price tracking services, showed that the national average retail price for gasoline surpassed $3.50 per gallon last week, its highest level?since May 20, 2024. The Israel-U.S. war with Iran is causing supply concerns. Fuel prices have risen across the world due to disruptions in Middle Eastern oil exports via the Strait of Hormuz. This could pinch the wallets of consumers and derail the global economy. This could be the greatest risk to U.S. president Donald Trump and his Republican Party during the Midterm Elections in November. Geopolitical shockwaves do not take months to affect your wallet. William Stern, the chief executive of small business lender Cardiff in the U.S., said that it only takes days. You feel it the moment you fill your car up to drive the kids to practice. The average U.S. retail gasoline price has risen by nearly 60 cents in the past two weeks since Trump decided to attack Iran with Israel on February 28, and was $3.58 per gallon on March 1. More increases are expected in the coming days as more ships were struck in the 'Strait of Hormuz' on Wednesday, and the United States transitions to summer-grade gas sales which burn cleaner but cost more to produce. Denton Cinquegrana said that spot and wholesale gasoline prices had double-digit growth on Wednesday. The wholesale price change is usually reflected on the pump the next day. The price of crude oil, which is the largest component in fuel prices, was also rising on Wednesday, despite the proposal from the Paris-based International Energy Agency (IEA) to release "a record 400,000,000 barrels" of?oil. Cinquegrana stated that the IEA announcement?on oil release raised more questions than it answered, as the group didn't announce who would release what amount of oil and when. (Reporting and editing by Nick Zieminski in New York. Reporting by Shariq Khan, New York)
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Aluminum rallies focus on disruptions in supply due to Middle East conflict
After a brief drop in prices triggered by comments made by the U.S. Donald Trump's comments on the?Iran war. Benchmark aluminum?on the London Metal Exchange?was up 1.1% at $3,444 per metric ton as of 1704 GMT. It reached $3,544 per ton earlier this week, its highest level since April 2022. Trump predicted on Monday that the conflict would be over well before his four-week timeline. Due to the closing of the Strait of Hormuz, the war has effectively "frozen" shipments and threatened global supplies of aluminum used for transport, construction and packing. Around seven million metric tonnes of?aluminium smelting is located in the Middle East, which represents 9% global capacity. Aluminium Bahrain, or Alba, one of the world's largest smelters declared force majeure last week to warn customers of delays in shipments. Meanwhile, Qatalum, a smelter in Qatar, began to shut down. Aluminium stocks in LME approved warehouses are a source of concern about supply. On Tuesday, the number of cancelled warrants and metal earmarked to be delivered was 177,325, which is 40%, up from 9% the previous day, before the Middle East turmoil began. Concerns about tight aluminum supplies have led to a premium for the cash contract on the LME. The global economy is under pressure due to concerns over the soaring price of oil and a stronger dollar. The dollar price of metals will become more expensive to holders of other currencies. This could reduce demand. Lead retreated by 0.3% to 1,937, while tin fell 1% to $49.950. Nickel gained 1.4% to 17725. In the last two weeks, nickel ore prices in Indonesia have increased significantly... The LME price floor is $17,000-18,000. This is based on the conversion costs for nickel pig-iron furnaces in order to produce LME grade metal, said Macquarie analyst Jim Lennon. We think that as the nickel market tightens amid increasing costs, NPI nickel and LME nickel have more upside. (Reporting and editing by Leroy Leo, Dita Pujara, and Pratima Dasai)
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Kast is sworn in to be the president of Chile in the biggest right-wing change in decades
On 'Wednesday', Jose Antonio Kast became the president of Chile, marking the sharpest rightward shift in years. Voters were alarmed by the rising level of insecurity and backed the broader conservative movement that has been sweeping Latin America. The regional presidents, including Argentina's Javier Milei and Ecuador's Daniel Noboa, Paraguay’s Santiago Pena and Spain's King Felipe traveled to Chile for the ceremony of the transfer of power in Valparaiso where Congress is located. Kast succeeds left-wing president Gabriel Boric to whom he lost 2021?election. At a time when Chileans worry about the rising crime rate and the economy. The shooting of a police officer in Puerto Varas, in southern Chile, earlier that day, which left him brain-dead, highlighted Kast's security concerns and led him to send Trinidad Steinert as his new minister for security to the city after the ceremony. "There will be a before and after." Kast said to reporters that whoever attacks a police officer attacks Chile when asked about the earlier shooting. We're going find them, try them and use the full force the law. Kast promised to crack down on crime and migration while boosting the economy through deregulation, cuts in spending and market-friendly policies. Chile is the largest copper producer in the world. Kast was elected at a time when the economy was booming, but now he takes over as the Iran War rattles global markets. The transitional period saw tensions rise between the new and old administrations over the increased pressures from the U.S. regarding a proposed Chinese underwater cable project. "(Kast will) have to manage a challenging international geopolitical environment," said Guillermo Holzmann a 'political analyst' from the University of Valparaiso. He noted economic risks from Iran war, U.S. security strategy in the area and China's impact in 'Latin America. "These decisions require sophisticated diplomacy as well as strategic long- and medium-term vision." Kast will have to deal with a divided Congress, which could hinder his agenda, which he has vowed?to achieve quickly. Nicholas Watson, Teneo's managing director, said that "a barrage" of initiatives are expected in the next three month. (Reporting and editing by Aidan Lewis; Cassandra Garrison, Alistair Bell and Aidan Lewis)
Sources say that Mercuria will withdraw almost 100,000 tonnes of aluminum from the LME due to disruptions in Middle East supply.
According to three sources of information, Mercuria, a commodity trader, plans to remove 'large' volumes of aluminum from LME storage facilities, due to the closure of the Strait of Hormuz, which has frozen Middle East shipments, and put further pressure on supplies in Europe, and the United States.
Around seven million metric tonnes of primary aluminum are produced in the Middle East each year, which is around 9%.
Since last week, aluminium shipments have been halted due to the closure of the Strait of Hormuz as a result of U.S. and Israeli war against Iran.
Swiss-based Mercuria?cancelled, or set aside for delivery, nearly 100,000 tons aluminium at LME-approved Port Klang warehouses.
Mercuria declined comment.
Aluminium Bahrain, Emirates Global Aluminium and Qatalum are among the Middle East's aluminium producers.
Alba, one of the largest smelters in the world, declared force majeure last week, warning its customers about delays. Qatalum, meanwhile, began to shut down.
Slow Process to Restart Production
To avoid damaging aluminium pots, smelters must reduce production gradually. After pots have cooled down, restarting is a long process that keeps metal off the market.
Sources said that Mercuria will need to use the aluminum stored in LME storage to meet its obligations to customers, particularly in Europe and the U.S. where aluminium is in short supply for transport, construction, and packaging.
Since the start of the war, the physical market premium that aluminium consumers pay in the United States and Europe above the LME price has increased. It is currently around $3450 per ton.
In Europe, the duty-paid aluminum premium, at $420 per ton, is at its highest level since September 2022 when consumers stopped purchasing Russian aluminium following?Russia's invasion of Ukraine.
The Midwest premium in the United States is at record levels, with a price of $1.09 per lb, or $2,400 per ton.
On 'Tuesday', the number of cancelled warrants (title documents conferring ownership) was 177,325, which is 40%, up from 9% in February, just before the Middle East turmoil began.
Sources claim that Gunvor, a Swiss commodity trader, cancelled over 45,000 tonnes of aluminum in LME Port Klang warehouses last week.
Gunvor declined comment. Gunvor declined to comment.
(source: Reuters)