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Sources say that Chevron and Valero are in discussions to reactivate the supply agreement for Venezuelan oil to US.
Three sources familiar with the preparations told reporters on Tuesday that Chevron Energy and Valero Energy were working to resume the supply of Venezuelan crude oil to Valero’s U.S. refining facilities under an agreement which was paused. This follows a newly granted license to the U.S. energy major. Washington issued a new limited authorization to Chevron in late July, allowing it to trade oil with Venezuela and export crude. This was a shift in policy following the prisoner exchange. Last week, the U.S. oil producer said that it expects to resume oil deliveries this month. While Chevron awaits the Venezuelan state-owned company PDVSA's allocation of cargoes to be delivered in August, Chevron, Valero and others are working out details of their agreement. This includes resuming ship-to-ship operations off Aruba, an island in the Caribbean. One source said that Valero could resume its cargo transfer from Aruba as early as this month following inspections required by law and negotiations on vessel contracts. Chevron and Valero didn't immediately respond to comments. According to shipping data, Chevron shipped from Aruba around 50,000 barrels of Venezuelan heavy oil per day to Valero refineries in the first quarter before its license to operate was revoked. Data showed that the volume was about 20% of Chevron’s total Venezuelan oil exports during this period. The deal is crucial for Petroboscan, Chevron’s second-largest joint venture in Venezuela. This project produces heavy Boscan crude, and storage limitations have previously forced production cuts. (Reporting Marianna Pararaga and Arathy Sommesekhar; additional reporting by Sheila Dang; editing by Deepa Babbington)
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Tariffs continue to pinch earnings, from ingredient costs to declining demand.
Caterpillar and Marriott, among others, noted on Tuesday that the tariff war waged by U.S. president Donald Trump has resulted in higher prices and a weaker demand. Global tariff tracker estimates that global companies who have reported their earnings in the current quarter will see a loss of $15 billion by 2025. The majority of the affected sectors are industrial, manufacturing, and automotive, while the financial and tech sectors have been less affected. Trump said that tariffs were necessary to correct the U.S.'s trade imbalances, and to restore manufacturing power. He also said that the import taxes would bring more jobs and investment into the United States. Steve Sosnick is the chief market analyst for Interactive Brokers, Greenwich Connecticut. He said, "I believe we are just getting started." "The tariffs have just begun, particularly with major trading partners such as Canada, China, and India still in flux." The earnings report on Tuesday shows the many ways that trade policy affects companies. From the increasing costs of metals and other imported materials to the slipping consumer confidence which has slashed demand, the results show the impact of the various aspects of the trade policy. Caterpillar saw its revenue fall by 0.7%, but the cost of its goods increased by 6.5%. CEO Joe Creed said that tariffs "will likely be a greater headwind for profitability in 2025's second half." Molson Coors, a beer maker in the United States Midwest, said that it expected costs between $20 million to $35 million for the second half due to an increase in aluminum prices driven by tariffs. In June, the duty on aluminum imported into the United States was doubled from 25% to 50%. MARKET RESILIENCE Markets have, however, remained resilient, even as Trump's policy continues to change. He announced on Tuesday that, as part of a continuing spat with India over its purchases from Russia of oil, he will raise the tariffs on goods imported to India from their current 25%. The U.S. equity market has rebounded from its April lows after what Trump called "Liberation Day" when he unleashed an international tariff wave. S&P 500 reached all-time highs in January on the back of solid earnings. The Magnificent Seven, a grouping of tech companies who have benefited from a surge of investment in artificial-intelligence, were the main contributors. According to LSEG, of the 370 S&P 500 companies that have reported earnings, 80.3% reported quarterly earnings exceeding analyst estimates. Their earnings growth rate was 11.9%. "We're figuring out some industries might be affected but they may also gain, because (new markets) are now open to them which may have been shut in the past. Kim Forrest is the chief investment officer of Bokeh capital Partners. Recent market strategists have warned of a possible correction, but remain optimistic. Analysts at Evercore ISI believe that the market may dip between 7% to 15% during the period of September-October as inflation and growth slow down. However, the AI-driven bull run should continue. Yum Brands' parent company, Taco Bell, saw its profits eroded by higher ingredient costs. Like McDonald's, the fast food chain relies on meal deals that are affordable to increase demand, as Americans cut back on eating out because of rising costs. Marriott International lowered its forecast for 2025 due to a softer travel demand. Meanwhile, agribusiness giant Archer-Daniels Midland reported its lowest profit in the past five years. While some market participants said that the uncertainty caused by tariffs was likely to continue this year with more than 100 global companies withdrawing their financial guidance or cutting it, others stated in the long run, investors and companies would be able see some green sprouts. Ross Mayfield is an investment strategy analyst with Baird. Companies will have to be very deft to navigate these (tariffs), and there is no other choice than to pass on some of the costs to consumers. S&P margins are hovering at record highs. It wouldn't be surprising if they dipped a bit in the next quarters.
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Wall Street drops after US data and oil drops for the fourth consecutive session
Wall Street indexes fell on Tuesday as U.S. economic figures were weaker than expected, while stocks in Europe and Asia rose. The U.S. service sector activity was flat in July, with no change in orders or employment. Input costs rose by the highest amount in almost three years. This highlights the uncertainty surrounding the impact of Trump’s tariff policy. The Dow Jones Industrial Average dropped 40.08 points or 0.09% to 44,133.14. The S&P 500 declined 0.71 points or 0.01% to 6,329.23. And the Nasdaq Composite rose by 39.72 points or 0.19% to 21,093.99. Investors raised their bets that the Federal Reserve will act to support the world's biggest economy. Gold prices dropped from two-week highs and oil prices fell on the back of rising OPEC+ supplies and concerns about weakening global demand. After disappointing job data on Friday, U.S. stocks had rallied Monday on the back of generally positive earnings reports. Bets on a Fed rate cut in September also increased. The pan-European STOXX 600 rose by 0.35%, echoing Asia's markets where MSCI’s broadest Asia-Pacific share index outside Japan closed at 0.77%. Diageo's earnings in Europe jumped 4.55%. Amelie Derambure is a senior portfolio manager of Amundi. She said that the removal of uncertainty was one factor helping European markets. Even though the tariff rate may be higher than what European politicians or market participants would have expected. The question is: Is bad news bad (the economy slowing down)? Or is it good (the Fed moving toward rate cuts)? Mohit Kumar, a Jefferies strategist, said that the answer depends on whether or not bad data is priced in and how bad it is. "A modest slowdown in the economy is good news, as the Fed should ease up more." A sustained and sharp increase in unemployment rates, however, would be a concern as it could affect growth and earnings. The dollar index (which measures the U.S. Dollar against a basket currencies including the yen, the euro and others) rose by 0.36%, to 98.99. The euro rose 0.29% to $1.1536. CME Fedwatch says that the odds of a rate cut in September are now at 94%. This is up from 63% on July 28. The market participants expect at least two quarter point cuts before the end of the year. The news that Trump may fill the governorship at the Fed in a short time added to concerns about politicization. Trump threatened again to increase tariffs on Indian goods above the 25% level announced by Trump last month, due to India's Russian oil purchases. New Delhi called Trump's attack "unjustified", and pledged to protect its own economic interests. The strategists of ING questioned whether the primary goal is to threaten secondary sanctions against India for its financing of Russia. This move could be a way for the United States to increase its leverage over India, allowing it to import more agricultural products or buy U.S.-produced energy. Prices of oil fell for the fourth consecutive day as concerns about economic growth and oversupply increased. Brent crude futures fell 1.21% to $67.93 a barrel, while U.S. crude was down 1.33% at $65.41. Investors are still waiting for results from Walt Disney, Caterpillar and other companies this week. The data released on Tuesday revealed that the business activity in euro zone increased at a faster rate in July than it did in June. However, the pace remained slow. Separate UK research showed that British businesses experienced their biggest drop in new order in nearly three years and the largest reduction in staff in six months in July. The service sector in Asia's two largest economies has shown resilience. S&P Global's final services purchasing managers’ index (PMI), which measures the performance of the service sector in Japan, grew to 53.6 from 51.7 in the previous month. This was the largest increase since February. China's service sector expanded last month at the fastest rate in over a year. Gold spot prices fell 0.04% last to $3,371.59 per ounce. Palladium spot prices dropped as high as 3%, to $1169.50, before paring their losses.
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Gold prices steady as dollar strength offsets rate-cut bets
The gold price held steady Tuesday, as the dollar strengthened and countered bets on a rate cut in the United States. Market participants were waiting for President Trump to announce his new Federal Reserve appointments. By 0947 am, spot gold had risen 0.1% to $3,376.80 an ounce. After reaching its highest level in over a year on Monday, ET (1347 GMT), gold prices rose 0.1% to $3,376.80 per ounce. U.S. Gold futures rose also 0.1% to $3,430. Gold priced in greenbacks is now more expensive for foreign buyers due to the dollar's 0.2% increase. Bob Haberkorn is a senior market analyst at RJO Futures. He said that despite the fact that gold is under pressure from a stronger dollar, the expectation of a Fed rate cut in September remains very positive. After Friday's unanticipatedly poor June hiring data, the markets are pricing in two rate reductions by year-end. Gold is a good investment during times of political and economic uncertainty. It also thrives when interest rates are low, as it pays no interest. Trump also said that he will announce soon his decision on the short-term replacement of Federal Reserve Governor Adriana Kulgler, who announced on Friday her resignation, as well as on his choice for the next Fed Chair. The latest data shows that the U.S. Trade Deficit narrowed by a large margin in June, largely due to a drop in imports of consumer goods. This is the latest proof of the impact Trump's tariffs are having on the global economy. Investors are now awaiting Thursday's U.S. employment data to get more clues about the Fed's possible rate path. Spot silver increased 0.4% to $37.53 an ounce, its highest level since the 30th of July. "I am more bullish about silver than gold at the moment." Haberkorn stated that he believes silver will break through $40 and, if this happens, the next price target is likely to be $42. Palladium lost 1.7% and platinum 1.3%, to reach $1,186.18. Sibanye Stillwater, a South African miner, has asked the United States for consideration of imposing a tax on Russian imports of palladium to ensure the viability and long-term sustainability of U.S. supplies.
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Trump claims that a drop in energy costs will cause Putin to halt killing people
U.S. president Donald Trump said on Tuesday that declining energy prices may pressure Russian President Vladimir Putin into ending the war in Ukraine. Trump stated in an interview with CNBC that if energy prices drop enough, Putin will stop killing people. "If you can get energy down another $10 per barrel, his economy will be in ruins." Last week, Trump gave Putin until August 8 to take action to end the conflict in Ukraine. If he fails to do so, he will face harsher U.S. sanction. His administration has also pressed India and China into stopping the purchase of Russian oil. Trump told CNBC the fall in energy prices is due to an increase in production by OPEC and other countries, and he expects further drops. He said, "If you look at OPEC or OPEC+ they are drilling more. I believe they want to make me happy." OPEC+ reached an agreement on Sunday The company will increase oil production by 547,000 barges per day in September. This is the latest of several accelerated output increases to gain market share as concerns grow over possible supply disruptions related to Russia. This move represents a complete and early reversal in OPEC+’s largest batch of output cuts, plus a separate rise in production for the United Arab Emirates of about 2.5 million bpd or around 2.4% of global demand. Eight OPEC+ member countries held a short virtual meeting amid increased U.S. pressure to India to stop Russian oil purchases – part of Washington’s efforts to get Moscow to the negotiating tables for a peace agreement with Ukraine. The International Monetary Fund (IMF) last week reduced its projection for Russian economic growth from 1.5% in April to just 0.9% this year.
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As US trade tensions escalate, Indian jeweller Titan is looking to shift some manufacturing to the Gulf.
C.K. Venkataraman, the Managing Director of India's largest jeweller and watchmaker Titan, said that it is considering moving some production to the Middle East Gulf in order to maintain low tariff access to U.S. markets amid tensions between Washington D.C. and New Delhi. Venkataraman told reporters on Tuesday. Titan, a part of Tata Group, announced plans this month to acquire a major stake in Dubai's luxury retailer Damas. Damas operates 146 outlets across the Gulf. Venkataraman said that the deal is valued at $283m and the region will be used as a "manufacturing base" to export goods to the U.S. His comments show how companies around the world may look for new ways to overcome trade barriers as the U.S. imposes or threatens tariffs against international trading partners. Last month, U.S. president Donald Trump imposed a 25% surprise tariff on Indian imports and threatened to increase the rate this week due to India's purchases Russian oil. The United Arab Emirates, on the other hand, will face a tariff of 10% under Trump's base rate. Titan's Tanishq has several U.S.-based stores and plans a major expansion. Its diamond-focused label CaratLane was launched in the U.S. last October. Titan started talks with Damas to purchase the company in 2024 before U.S. Trade Policy shifts became a focus. Venkataraman, in a video with the. He said that the U.S. was a less viable manufacturing base because of cost and skill constraints, particularly for artisanal jewellery. Venkataraman stated that "if the tariffs stay as they are now threatened to be then any arbitrage... any significant arbitration would be meaningful to us," Venkataraman. (Reporting and editing by Susan Fenton; reporting by Luke Tyson)
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Zimbabwean platinum miners owe millions of dollars in unpaid export revenues
The mining chamber said that under Zimbabwe's government's rules on foreign currency retention, platinum miners in Zimbabwe are owed millions in unpaid exports revenue. This is hurting operations for a sector still struggling to recover after a price crash. All exporters are required to convert the remaining 70% of their foreign currency proceeds into local currency. It says that it needs foreign currency in order to repay loans and fund imports. Government data show that platinum producers in Zimbabwe such as Valterra Platinum and Impala Platinum’s Zimplats and Mimosa (a joint venture between Impala and Sibanye Stillwater) exported PGM concentrates and mattes worth $690m in the first six months of this year. An official from the mining chamber said that the government hasn't paid the miners in local currency the equivalent of their export profits since January. Kuda Mnangagwa, deputy finance minister, confirmed that the government was behind in paying miners. Mnangagwa said on Tuesday that cash flow issues were present, especially in the first quarter when revenue collections are lowest. He said that the government is talking to platinum miner to "ensure these delays do not burden their operations". Zimbabwe's second-most valuable mineral export is platinum group metals used in catalytic convertors to reduce vehicle emissions. Zimbabwe exported gold worth $1.8billion during the first half 2025. This is up from $870m during the same period in the previous year. Gold producers in Zimbabwe have also complained of Zimbabwe's foreign exchange retention rule. They claim that it reduces their income by converting a portion of their export earnings into an overvalued currency.
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Public Service Enterprise exceeds quarterly profit expectations on increased energy consumption
Public Service Enterprise Group beat estimates for the second quarter profit on Tuesday, thanks to higher electricity demand during June when homes and businesses increased air conditioning in hot weather. The hotter than normal temperatures in June increased power demand, at a moment when utilities are already dealing with record usage due to the growth of the data centers and electrification trend. Ralph LaRossa is the CEO of PSEG. He said, "We were able to operate through three consecutive 100degF days, resulting in high electricity consumption that led to a peak summer load of 10,229MW on June 24, which was our highest system load since 2013. The total operating revenue increased by about 15%, to $2.8 billion. The utility also confirmed its forecast for operating earnings of $3.94 - $4.06 per share. PSEG Power has reported an increase in nuclear output to 7.5 Terawatt Hours (TWh) from 0.5 TWh last year. This is due to a 2024 Hope Creek power outage. Investors and companies are increasingly interested in nuclear energy because it is almost carbon-free. PSEG reported that large load service requests, mostly from current and potential data centers, increased to 9,400 megawatts by June 30 from 6,400MW at the end March. According to data compiled and analyzed by LSEG, the company reported an adjusted profit per share of 77 cents for the three-month period ended June 30. This compares with the average analyst estimate of 70 cents. Reporting by Pranav mathur in Bengaluru, editing by Shreya biswas and Vijay Kishore
Naturgy raises free float by selling 5.5% of its shares
The Spanish power utility Naturgy announced on Tuesday that it had sold approximately 5.5% of its stock through an accelerated sale and a bi-lateral sale, as part of a plan to increase the free float of its shares and return to its main indexes.
A bookbuilding accelerated, which opened on Monday, raised 500 million Euros ($577.30 Million) by selling 2% of the company's shares at 25,90 euros.
Morgan Stanley advised on the bookbuilding.
The company did not disclose the price of each share. In another transaction, Naturgy sold 3.5% its shares to a "financial entity" that was unidentified.
The company had previously stated that the operations would increase Naturgy’s free float, or the number of shares available for public trading, to 15%. This should be sufficient to reach its goal to return to the main indexes.
Naturgy announced in February that it would buy almost 2,5 billion euros worth of its own stock at 26.5 euro per share. This represents about 9,08% of the equity of Naturgy. These shares would then be resold on the market. The plan was supported by its four major shareholders, who agreed to reduce their holdings.
The company has reduced its shareholdings from 9.99% to just 4.5% with these two sales.
(source: Reuters)