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Sources say that QatarEnergy and Iraq's SOMO offer to load crude oil inside Hormuz through tenders.
Multiple trade sources reported on Monday that 'Iraqi state oil marketer SOMO and QatarEnergy are offering crude in rare tenders which require buyers to load their cargoes within the Strait of Hormuz. Sources said that SOMO offered September-loading Basrah Medium or Basrah Heavy Crude from Iraq's Basrah Oil Terminal or Single Point Mooring?and its related facilities. Iran's official news agency IRNA said that Baghdad had repeatedly requested permission to allow a number of Iraqi tankers to cross the Strait of Hormuz. The bids for Iraqi oil will close on the 26th of August. QatarEnergy, in addition to SOMO, has also offered al-Shaheen?, 'Qatar Marine'?and Qatar Land?crude for loading on September and October at their respective loading ports in Qatar. The tender is valid until August 25. Reporting by Nidhi Verma and Siyi Liu from New Delhi; Editing by Christopher Cushing and Christian Schmollinger.
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Exxon and Lyondell are among the bidders for Shell's US chemicals assets. The deal could be worth $8 billion according to FT.
The Financial Times reported that Shell has attracted interest from bidders such as ExxonMobil, LyondellBasell and others for its U.S. chemical assets, which could fetch up to $8 billion. The report cited people who were familiar with the matter as saying that the private equity firm Apollo Global Management, and the chemicals division of the state-owned Kuwait Petroleum Corporation, had also expressed an interest in the?assets. Shell is looking to sell off underperforming chemical?plants. Shell, ExxonMobil and Kuwait Petroleum have not responded to requests for comment outside of regular business hours. Shell, ExxonMobil, LyondellBasell Apollo and Kuwait Petroleum did not immediately respond to? The FT reported that Shell's U.S. chemical business includes plants in Louisiana, Texas, and Pennsylvania, which produce chemicals for plastics, pharmaceuticals, and detergents. The newspaper reported that potential buyers had submitted non-binding bids last month. These included proposals for both the whole business and parts of it. According to FT, the reported price represents a significant discount from the amount of capital Shell invested in the facilities. Shell has agreed to sell its renewables business in Europe onshore to TotalEnergies earlier this month as the British energy giant 'continues' to reduce its low-carbon investment and focus more on its upstream operations and trade.
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British company offers to restart Australian manganese smelter
Natrium Redox Technologies is a British green technology startup that has made a 'firm proposal to the Tasmanian Government to purchase and restart Australia’s only manganese smelter to supply global battery and electric car markets. EY?Parthenon announced last month that the Liberty Bell Bay Smelter (LBB) would be closing after a failed sale. The former GFG Alliance owned by British industrialist Sanjeev Gupta entered voluntary administration and liquidation in March after suspending its operations at the end of last year. We have been working with EY Parthenon, the Tasmanian government and other stakeholders on this project for over six months. "We have also informed the federal government," said Natrium Redox Technologies in a press release. Our restart proposal asks for shared funding with the government of up to?A$15m ($10.75m) over a 16-week period, and the continuation of the current electricity contract. EY Parthenon, Tasmanian Business Minister Felix Ellis and others did not immediately comment. Natrium Redox Technologies stated that it initially planned to restart the smelter using conventional smelting techniques before building a new pilot plant which would use a new technology to create high-purity and low-emissions Manganese powder. This process removes oxygen from manganese ore by using liquid sodium instead of coking coal. The process operates at lower temperatures and produces no carbon emissions. The company stated that the new technology will add between 20% and 40% to the site's production. It will also elevate the smelter from a conventional alloys smelter to one of the most valuable manganese operations around the world, producing battery-grade material. "Battery-grade materials sell at a?far higher?price?than conventional alloys. This secures LBB's future financial stability and ensures it remains an important strategic minerals asset for Australia." Natrium Redox Technologies stated that its proposal would "provide more than 200 new jobs, previously associated with the smelter as well as secure other during construction." The company also proposed to reprocess A$210,000,000 worth of environmental?liabilities that have accumulated over decades?of slags and wastes, thus removing the environmental liability?from government. The company stressed that time is of the essence, as the longer furnaces sit idle, the more difficult and expensive it will be to restart them. ($1 = 1.3953 Australian dollars) (Reporting by Melanie Burton; Editing by Jamie Freed)
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Gold reaches a 3-month high before US inflation data and Fed chair speech
On Monday, gold prices reached their highest level in more than three month's time as a'subdued' dollar lent support. Meanwhile, attention shifted towards key U.S. data on inflation and Kevin Warsh speaking later this week. As of 0427 GMT spot gold was up 0.8% to $4,641.27 an ounce after reaching its highest level since 15 May earlier in the session. Prices rose by more than 5% in the last week. U.S. Gold Futures edged up 0.4% to $4,697.70. The dollar was teetering near multi-month lows as the market remained unsettled after the U.S. Treasury promised to?buy back more long bonds. The weaker dollar allows holders of other currencies to afford greenback-priced gold. Tim Waterer is the chief market analyst for KCM Trade. He said that gold is in a good mood to begin the week. It has moved back into a bid mode, and is taking its cues from the weaker dollar. For new clues about the U.S. rate outlook, the July Personal Consumption Expenditures price index data will be closely watched. Also, Fed Chair Warsh’s speech this week at the Jackson hole?symposium is also worth watching. "Traders are closely watching for any change in tone regarding the policy direction and how that fits with recent bond market developments. Waterer stated that a cautious or balanced tone, which allows for some flexibility, would allow gold to continue its rise. The U.S. warned Iran of "the greatest financial offense ever marshaled" in preparation for economic sanctions targeting?Iran’s trade partners. Oil prices fell?more that $1 per barrel as investors took profits before the announcement. Silver spot remained steady at $68.98 an ounce. Platinum increased 0.1% to $1 878.88 while palladium remained flat at $1 350.00.
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Morning Bid Europe-Mixing trade wars, economic wars and actual warfare
Wayne Cole gives us a look at what the future holds for European and global markets. Investors are awaiting details about President Trump's economic 'war' on Iran. This has led to a nervous start for the Asian markets. The main move was a drop of 1.5% in the oil price. Treasury Secretary Scott Bessent will hold a press briefing at 2 pm EST (1800 GMT) on Wednesday to announce even more severe economic sanctions against a country which has been subjected to near-continuous sanctions since 1979's Islamic Revolution. Trump said that sanctions would also be imposed on any country that supports Iran. However, he never mentioned Russia or China. It will be interesting to see how Bessent avoids the topic in front of the media. If there is no action taken against?China or India, then the steps would lack credibility, and oil prices could rise. Analysts worry that Tehran could retaliate with attacks on energy infrastructure in Gulf. Iran has already promised to stop all oil exports out of the Gulf if "the economic war" continues. The White House is also perceived to be admitting that military action failed and that the conflict would continue indefinitely. Bessent will also face questions regarding 'his double-buyback plan for Bonds which have, to date, had limited success at calming the Treasury Market. The yields on 30-year bond are currently trading at around 5.25%. This is within striking distance of the 19-year high of 5.3371% that was reached last week. Many analysts have pointed out that buybacks don't address the debt and deficit problems at their core. They simply swap longer-dated paper for shorter-dated papers, and most likely with higher yields. Bessent's efforts to loosen financial conditions are at odds with Fed chair Warsh, who seems to rely on the bond markets to tighten policies so that he does not have to increase the cash rate or risk Trump's anger. Warsh's response to questions about the?buyback at Jackson Hole, on Friday, will be very interesting. Canada is another country that faces the threat of a full-blown?trade conflict. The?loonie initially dropped in response, but has since recovered most of its loss. At 1.3791, the greenback isn't far from the three-month low of?1.3729. Carney is betting that adding a war of trade to an already existing one just weeks before the midterm elections will not endear Trump to the consumers who are already irritated by the cost of living. The tech-heavy markets of Japan, South Korea, and Taiwan are also awaiting Nvidia’s results, which will be released on Wednesday. Although blockbuster profits seem to be all but assured, they may not meet the high expectations. Options suggest a range of 5,0% to 6,5% after the results. Market developments on Monday that may have a significant impact Norges Bank Governor Ida Wolden Bache's speech Chicago Fed Activity Survey for July
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Gold reaches a 3-month high before US inflation data and Fed chair speech
On 'Monday,' gold prices reached their highest level in more than three month as a subdued Dollar lent support. Meanwhile, attention shifted towards key U.S. Inflation data and Kevin Warsh's speech this week. As of 0155 GMT spot gold was up 0.5%, at $4,627.42 an ounce. It had earlier reached its highest level since May 15 during the session. Prices rose by more than 5% in the last week. U.S. Gold Futures edged up 0.1% to $4,683.80. The dollar was teetering near a multi-month low in a market unsteady by the?U.S. Treasury's promise of buying back more long-term bonds. The weaker U.S. Dollar makes greenback priced bullion more accessible to holders of other currencies. Tim Waterer is the chief market analyst for KCM Trade. He said that gold is starting the week in a positive mood. It has re-entered the bid mode and is taking cues from the weaker dollar. The higher yields could be a sign of underlying economic tensions and policy uncertainties. For new clues about the U.S. rate outlook, watch the July Personal Consumption Expenditures price index data as well as Fed Chair Warsh’s speech this week at the 'Jackson Hole Symposium. "Traders are watching for any shift in tone regarding the policy direction and how that fits with recent bond market developments. Waterer said that a cautious or balanced tone, which leaves room for flexibility, would allow gold to "extend" its gains. The U.S., on the geopolitical side,?threatened Iran by launching "the greatest financial offense ever marshaled" in preparation for economic sanctions that target Iran's trading partners. Oil prices dropped by more than $1 per barrel as investors took profits before the announcement. Silver spot fell by 0.3%, to $68.76 an ounce. Platinum fell 0.5% to $1868.03, while palladium dropped 0.3% to $1345.87.
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Russell: The debate over the volume of crude oil in Hormuz hides a real shortage of refined fuels
The crude oil market is currently debating the wrong issue about how much oil actually moves through the Strait of Hormuz. Instead, it should focus on the restricted flows of'refined products' around Asia. Energy Secretary Chris Wright of the U.S. has claimed repeatedly that vessel tracking analysts such as Kpler cannot see how much crude oil is flowing through the disputed Strait. Wright claimed that 15 million barrels of oil per day (bpd), or about 500,000 barrels a day, left the Strait of?Hormuz in a single day last week. If true, this would bring the volumes to?what they were before U.S. & Israel attacked Iran on 28th February. Wright also stated that transits averaged around 9 million bpd during a 7-day period. However, he did not specify exact dates or provide details like vessel names and intended destinations. The Strait of Hormuz is estimated to be leaving around 5,000,000 bpd, including dark transits from smaller vessels onto larger tankers. The dispute over crude oil volume is false. If Wright's claim is true, then Asia will see a rise in oil imports as the crude that he says is coming from the Middle East reaches ports. The market will soon be able to determine whether Wright's numbers are accurate or if they're overstated. As a result of sharply reduced volumes and high refining margins, the markets for Asia's refined products remain under stress. Kpler estimates that Asia's imports for light and middle distillates in August will be 5.59 million barrels per day, which is the same as the 5.60 millions barrels per day seen?in July. These volumes, however, are down 21% compared to the average of 7.08 million bpd in the three-month period ending February. Asia will have to absorb a loss of 1,49 million bpd in key fuels like diesel, jet-fuel and gasoline. UNEVEN FALLOUT Impact is not evenly distributed across the continent that consumes the most energy, with the less-wealthy countries bearing a greater share of the product volume loss. The imports of Indonesian light and middle distillates were estimated to be 432,000 bpd during August. This is the lowest level in 13 months, and down from the average of 533,000 in the three-month period prior to the Iran conflict. In August, the Philippines will see an arrival of 257,000 bpd for light and middle distillates. This is down from the average of 362,000 in the last three months. Kpler estimates that August imports of middle and light distillates were 863,000 bpd. This is only slightly less than the 880,000bpd of the three months before the Iran War. Securing fuel comes at a cost. Product prices are near record levels, and refinery margins remain high. A Singapore refinery made a profit of $71.29 per barrel of gasoil (the building block of diesel) on August 21. This was down from the high of $85.63 a month earlier on March 30, but still 226% more than the $21.90 a day prior to the start of the conflict on February 27. Middle distillates have been under the most pressure due to the limited supply of Middle East crudes. Many of these are medium-gravity. Asia's refineries have been adapted to convert this oil type into products like jet fuel and diesel. Even gasoline, which is the primary light distillate, commands a premium with a large profit margin Ending at $20.74 per barrel on August 21 up?159% since $8.00 on Feb 27. The market's message is that, while crude oil may reach Asia in sufficient quantities, it is not necessarily of the right grade and countries with surplus refining capacity do not increase exports to meet the demand. 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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Oil prices fall ahead of US announcements on new Iran sanctions
Prices of oil fell by more than $1 per barrel on Monday, as investors took a profit ahead of an announcement that Washington is expected to make about additional sanctions against Iran. This could further disrupt Middle East supplies. Brent crude futures dropped $1.22 or 1.29% to $93.17 at 0035 GMT. U.S. West Texas Intermediate was $85.86 per barrel, down by $1.20 or 1.38%. The two contracts both posted their second weekly gains, up over 5% last week as the peace talks between Iran and the U.S. hit a deadlock, limiting oil shipments across the Strait of Hormuz, where a fifth of the world's supply once transited. Scott Bessent of the U.S. Treasury Department, who will hold a press briefing at 2 pm EDT (1800 GMT) on Monday afternoon, has warned that "the harshest sanctions in human history" could be imposed on Iran. President Donald Trump also?threatens to impose sanctions against Iran's trading partner. Vivek Dhar is a commodities analyst with Commonwealth Bank of Australia. He wrote in a recent note that it was unclear whether the U.S. strategy to economically isolate Iran would be effective. If the U.S. sanctions work as intended, Iran’s ability to retaliate with increased violence will become a greater?risk to energy markets. Iran has condemned U.S. sanctions plans, even though President Masoud Peshkian is calling for a diplomatic resolution. Tony Sycamore, IG Markets analyst, said that "the?more pragmatist members of the Iranian Leadership would prefer de-escalation but?the Hardliners would 'probably prefer to fight until the bitter end." I think we'll know by the end this week which side has the upper-hand in the?Iranian government." According to trade sources, Iranian crude offers to Chinese buyers are down and prices have increased as the U.S. sanctions have cut off?Tehran shipments. Iran has reportedly allowed a number Iraqi oil tankers through the Strait after repeated requests by Baghdad. This was reported by Iran's official news agency IRNA on Saturday. (Reporting and editing by Clarence Fernandez, Lincoln Feast and Florence Tan.)
Gold reaches a 3-month high before US inflation data and Fed chair speech
On?Monday, gold prices reached their highest level in over?three month as a subdued Dollar?lent support. Meanwhile, attention shifted to important U.S. Inflation data and Kevin Warsh's speech this week.
As of 0644 GMT spot gold rose 0.9% to $4,643.63 an ounce. This is the highest price since mid-May. Prices rose by more than 5% in the last week.
U.S. Gold Futures increased by 0.4% to $4,699.10.
The dollar was a little off its multi-month lows as the market was unsettled after the U.S. Treasury announced that it would buy back additional long bonds. A weaker dollar means that holders of other currencies can afford to buy greenback-priced gold.
Tim Waterer is the chief market analyst for KCM Trade. He said that gold has started the week in a positive mood and has returned to the bid mode. It's taking its cues from the weaker dollar, and it's also focusing on the higher yields, which may signal underlying economic strains or policy uncertainty.
Watching the July Personal Consumption Spending price index and Fed Chair Warsh’s speech this week at the Jackson Hole Symposium will give us new clues about the U.S. rate outlook.
The traders will pay close attention to any change in tone regarding the current policy and its relationship with recent developments on the bond market. Waterer stated that a 'balanced' or 'cautious? tone, which leaves room for flexibility, would allow gold to continue its gains.
The U.S., on the geopolitical side, threatened Iran with "the greatest financial offense ever marshaled" as they prepared to roll-out economic sanctions targeting?Iran’s trade partners. Investors took profits before the announcement.
Silver spot gained 0.1% to $69.03 an ounce. Platinum gained 0.5%, reaching $1,887.28, and palladium added 0.3%, at $1,353.34.
(source: Reuters)