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Prices of oil ease after surprise buildups in US inventories
Oil prices fell on Thursday, as the unexpected buildup of U.S. crude oil and fuel inventories raised concerns about demand. Investors remained cautious, keeping their eyes on the renewed Iran-U.S. nuclear talks. Brent futures fell 33 cents or 0.5% to $64.58 per barrel at 0038 GMT. U.S. West Texas Intermediate Crude dropped 32 cents or 0.5% to $61.25. Both benchmarks fell by 0.7% on Tuesday. The Energy Information Administration reported on Wednesday that U.S. crude oil and fuel inventories showed a surprise build last week. Crude imports reached a six-week peak and gasoline and distillate demands dropped. The EIA reported that crude inventories increased by 1.3 millions barrels, to 443.2million barrels for the week ending May 16. In a poll, analysts had predicted a draw of 1.3 million barrels. Investors expect that the summer driving season, which begins after Memorial Day Weekend, will bring down stocks and limit further downside, said Hiroyuki Kikukawa. Kikukawa is chief strategist at Nissan Securities Investment, an arm of Nissan Securities. "Traders are cautious and avoid large positions, as they evaluate conflicting signals regarding U.S. - Iran nuclear talks, and a report in the media about potential Israeli strikes against Iranian nuclear facilities," he said, predicting WTI will trade between $55 to $65 at this time. Oman's Foreign Minister said that the fifth round of nuclear negotiations between Iran and United States will be held on May 23rd in Rome. CNN reported Tuesday that U.S. Intelligence suggests Israel is prepared to strike Iranian nuclear sites, citing several U.S. officials. It was unclear whether Israeli leaders had made a decision. An attack by Israel could disrupt the flow of oil from Iran, the third largest producer in the Organization of Petroleum Exporting Countries. The U.S. has held multiple rounds of talks with Iran this year about Iran's nuclear program, and U.S. president Donald Trump has re-launched a campaign to strengthen sanctions against Iranian crude oil exports. A source in the industry said that Kazakhstan's oil output has risen by 2% since May. This is despite the pressure from OPEC+ to cut production. (Reporting and editing by Sonali Paul; Yuka Obayashi)
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Stocks fall, yields rise; 20-year Treasury auction shows soft demand
Investors worried about the deteriorating fiscal outlook in the United States and Treasury yields rose following a sale by Treasury Department of $20 billion worth of bonds for 20 years. After the auction, all three of the major U.S. indexes fell by more than 1%. The dollar fell widely as well. Treasury yields continued to rise after the U.S. Treasury Department reported a weak demand for its $16 billion sale 20-year bonds. The bond sale was weak, which reinforced the idea that investors are avoiding U.S. assets. Concerns continued to grow about President Donald Trump's attempts to push through a bill to cut taxes that could increase the debt by up to $5 trillion. Investor sentiment is fragile after Moody's downgraded United States' credit ratings late last Friday, fueling concerns over the country's $36 trillion debt load. Trump sought to gain more Republican support for his tax cuts and spending bill. Mike Johnson, the Speaker of the U.S. House of Representatives, acknowledged that a vote of the entire chamber might not take place on Wednesday because his Republicans are divided over the specifics of the sweeping legislation. The lack of progress in U.S. Trade Talks is also a concern, as trading partners are pressing Washington to reduce or eliminate tariffs. Tim Ghriskey is a senior portfolio strategist with Ingalls & Snyder, New York. Is there any chance that Trump will reduce this deficit during his tenure? I'd be surprised." He added, "We're in a period of waiting for tariffs." "Negotiations continue... but we're not sure if any progress has been made." The Dow Jones Industrial Average dropped 817.23, or 1.99%, to 41.860.01, while the S&P 500 declined 95.91, or 1.51%, at 5,844.55, and the Nasdaq Composite was down 270.07, or 1.4%, at 18,872.64. The MSCI index of global stocks fell by 7.93 points or 0.90% to 873.69. JD Sports, a British sportswear retailer, was among the decliners. The STOXX 600 pan-European index dropped 0.04%. Bitcoin meanwhile has reached a new record, surpassing the previous high set in January. Last seen at $107 569.81, it was up 0.58%. The 30-year bond rate rose by 11.5 basis points, from 4.967% to 5.0817% at the close of Tuesday. The dollar index fell by 0.36%, to 99.60, measuring the greenback in relation to a basket including the yen, the euro and other currencies. After Oman's Foreign Minister said that a new round nuclear talks would be held between Iran and the U.S. later this week, oil prices fell. The U.S. released data that was bearish on crude oil and fuel supplies. Caroline Valetkevitch reported from New York with additional reporting from Lawrence White in London, Johann M Cherian, Ankur Banerjee and Ankur Baerjee in Singapore. Editing was done by Sharon Singleton and Ed Osmond.
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Blackstone data center deal is a target for the group that blocked New Mexico utilities merger
The group that previously blocked TXNM Energy's merger plan said this week that Blackstone Infrastructure plans for data centres in New Mexico would be a major factor in determining whether or not stakeholders will challenge the $11.5 billion proposed acquisition by the private equity group of the electric company TXNM Energy. TXNM is a holding for regulated utilities including PNM in New Mexico. On Monday, it announced its agreement to sell with Blackstone. This was the latest in a series of recent deals in the U.S. energy industry, fueled by an increase in electricity demand due to Big Tech's AI-driven data centers. PNM, the New Mexico Department of Justice and other stakeholders such as consumer advocates, New Energy Economy, and the New Mexico Department of Justice will have to approve the agreement. New Energy was the driving force behind the campaign to thwart TXNM’s final agreement to sell its power to Avangrid, a U.S. subsidiary of Spanish electric company Iberdrola. Avangrid dropped its $8.3 billion bid for TXNM after the battle escalated in the New Mexico Supreme Court. Data centers are now the main driving force for the U.S. electric demand. This is expected to hit record levels this year and by 2026. Mariel Nanasi said that the director of New Energy Economy, Mariel, will examine the TXNM acquisition to see how Blackstone intends to capitalize on this demand in New Mexico. Nanasi stated that Blackstone is evaluating whether it intends to build data centers directly in New Mexico or via affiliates. It will also consider how to handle the cost of upgrading the electrical systems for the large energy load. She said, "We're going to need real guardrails to surround that." TXNM representatives and Blackstone representatives told investors on a conference call shortly after the announcement of the acquisition that they would meet with stakeholders in the next 90-days before filing their plans with the state. The proliferation of artificial intelligence data centres and their record-breaking electricity consumption has led to a regulatory battle over who will pay for upgrades and additional infrastructure for these giant energy consumers. According to a person familiar with Blackstone's TXNM agreement, and speaking on condition of anonymity, the regulated utilities can power data centres, but are prohibited by state regulations from developing or owning the centers. The person stated that the data center companies would pay for any transmission upgrades or new power generation to serve the data centers. (Reporting and editing by Rod Nickel, Laila Kearney)
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Canada's largest pension fund abandons net-zero emission target
Shift, a group of climate activists and pensioners, criticized Canada's largest pension plan on Wednesday to abandon its commitment to achieve net-zero emissions of greenhouse gases by 2050. The Canada Pension Plan Investment Board, which manages C$714.4 Billion ($516.93 Billion) in assets and has announced that it will abandon its commitment made in February 2022 of aligning operations and investments with the goal. Shift confirmed that the update, which is covered in its FAQ section, took place on Wednesday, but was unable to confirm the exact date. This action was taken after a wider reevaluation on climate goals, following the departure of several Canadian banks from the Net-Zero Banking Alliance in early this year. According to the plan, "recent developments in Canadian law" that were not specified affected its interpretation of the net-zero goal. Shift denounced this move. Shift stated in a press release that "Net-zero is not an option." In withdrawing from a commitment to invest in line its net-zero-by-2050 commitment, CPPIB management has failed its most fundamental goal - to responsibly handle the long-term savings of Canadians working and retired. CPP Investments has not responded to further requests for comment. Reporting by Maiya Kiedan; editing by Cynthia Osterman.
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BHP and Lundin’s Argentina copper project targets 2030 start
Vicuna Corp., owned by BHP Australia and Lundin Mining Canada, said that it expects to begin production on two copper projects in Argentina in 2030. Why it's important Argentina hasn't produced copper since 2018. However, it has a large pipeline of projects which could place the country in the top 10 global producers. There are 13 million metric tonnes of measured copper in the Josemaria mine and Filo del Sol deposit of Vicuna, and 25 millions metric tons of inferred or unmeasured copper. KEY QUOTES Jose Morea, the country manager of Vicuna, stated in an interview during ArMinera in Buenos Aires that "the construction timelines for these types of projects, for each deposit would take about three years or a little bit more." He said that the launch of construction will be delayed until a report on technical aspects is approved. Morea stated that it would be illogical to believe that, even if the report was approved after its presentation, we could have it in place before 2030. What's Next? The executive said that the companies will submit a report on technical aspects to the board of directors of Vicuna in the first half 2026. This report will help determine the exact start date for production and the life expectancy of the project. Vicuna plans to apply for the Large Investment Incentives Regime, promoted by Javier Milei’s government in order to attract investment. By the Numbers Morea, Vicuna's CEO, said that Vicuna will invest $400 million in this Latin American country in 2018, out of an estimated total investment in projects of $5 billion. CONTEXT Josemaria is a copper deposit that has advanced to the pre-construction stage. Filo del Sol is a gold-copper-silver deposit that has reached the exploration stage. It is located 11 km from Josemaria, on the Chilean border. Reporting by Lucila SIGAL in Buenos Aires Editing done by Kyra Madry and Matthew Lewis
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Amazon Investors rejects all shareholder proposals again
Amazon.com shareholders at their annual meeting rejected all shareholder resolutions again, including three that addressed the impact of Amazon.com on climate change. The re-election of twelve directors as well as the proposed executive compensation was approved by voters. Amazon urged investors to vote against all eight of the proposals. There were 14 resolutions last year and none of them received enough votes to become law. One of the eight proposals this year was a proposal to require additional reporting about Amazon's total carbon emissions. Another focused on the climate impact data centers have, and a third called for more disclosure regarding packaging materials, especially plastic. Amazon has said that its disclosures to date are adequate and it is working on reducing its environmental impact. Also rejected were two other proposals for the development of artificial-intelligence software. Amazon would have been required to assess its board structure and consider ways it could develop AI responsibly. The other resolution would have demanded a report about data collection and usage around AI. Seattle-based Amazon said that it was a leader in AI development and therefore no changes were needed. Amazon shareholders also requested that the company create a policy to ensure separation between its CEO and board chairman roles. Although not as a policy, Amazon already separates CEO Andy Jassy from founder Jeff Bezos. Bezos held both the CEO and chairmanship positions until 2021. In an attempt to maintain the company's political neutrality, shareholders voted against a proposal that would have mandated the creation of a report about risks associated with advertising. A proposal to solicit a report about warehouse working conditions was also rejected. This has been a constant source of criticism for the company. Jassy said that during a session of questions and answers, the tariffs placed by the Trump Administration on many imported products had not affected sales. He said that "we have not yet seen any meaningful increases in average selling prices." He said that not all sellers would take the same actions when there are two million of them. Some had raised prices, while others held their prices at a static level. Amazon will provide the full results of the vote to investors in a future securities filing. The shares were down by less than 1% to $203.20 on Wednesday. (Reporting and editing by Chris Reese in San Francisco, Joe Bavier, and Bill Berkrot.
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Copper prices rise on concerns about US debt and a weaker dollar
Copper prices rose on Wednesday, as investors, frightened by the growing U.S. government debt levels, sought out hard assets in a weaker dollar. The benchmark three-month price of copper at the London Metal Exchange was up by 0.1% to $9,528 per metric tonne as of 1615 GMT. Republicans in the U.S. House of Representatives try to overcome divisions within themselves about President Donald Trump’s tax cut bill and spending bill that would extend his tax cuts from 2017. Last week, credit-rating company Moody's stripped the U.S. Government of its top-tier ratings. The firm cited the nation's increasing debt. Ole Hansen is the head of commodity strategy for Saxo Bank, Copenhagen. He said that fiscal debt was a factor in not only gold, silver and platinum, but also copper, and tangible assets generally. If extended, this tax cut would essentially create a bigger hole in the budget of the U.S. This would make it riskier to own U.S. bonds." Last week, copper reached its highest price in six-weeks at $9,664, helped by a 90 day pause on the majority of their tit for tat tariffs agreed between China and the U.S., Hansen said. But that optimism is fading. It's not a very inspiring market at the moment. "I think we're in a waiting-and-seeing mode. That could limit the upside in short-term." The Shanghai Futures Exchange's most traded copper contract rose by 0.3%, to 78.100 yuan per ton ($10,839). The U.S. Dollar fell on Wednesday. This extended a two-day decline against major counterparts, lowering the price of commodities priced in greenbacks for buyers with other currencies. According to Sugandha Sagdeva, the founder of SS WealthStreet in New Delhi, the copper price is expected to reach $9,950 per tonne, barring any negative macroeconomic shocks. Lead prices fell 0.4% to $1973.50 per ton, after LME stocks on warrant jumped by 75%, to 216 175 tons. Other metals include LME aluminium, which rose 0.2% to 2,475.50 per ton, and nickel, which climbed 0.8% to 15,645; zinc, however, fell by 0.7% to 2,690.50, and tin, by 0.6%, to $32,900. text_section_type="notes">For related news and prices, click on the codes in brackets: LME price overview COMEX copper futures All metals news All commodities news Foreign exchange rates SPEED GUIDES (Reporting by Eric Onstad; Additional reporting by Neha Arora in New Delhi; Editing by Jan Harvey, Paul Simao and Ed Osmond)
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Republican holdouts huddled at White House to discuss Trump's tax cut bill
On Wednesday, a few hardline Republicans from the U.S. House of Representatives, worried that President Donald Trump’s tax-cut bill did not cut spending enough, headed to the White House as the party struggled for unity. The White House confirmed that House Speaker Mike Johnson would attend the meeting at 3 p.m., 1900 GMT, one day after Trump visited Capitol Hill personally to urge the Republican Party to unite around a bill to extend and add to his tax cuts of 2017. Analysts from nonpartisan groups have predicted that the U.S. debt of $36.2 trillion will increase by $2 trillion to $5 billion over the next 10 years. Last week, credit rating agency Moody's stripped the U.S. Government of its highest-tier rating due to the nation's increasing debt. Hardline Republican Andy Harris, who stood with eight other hawks in a Wednesday press conference, said: "We are encouraged by the progress made over the last 24 hours." "I believe this package will pass." "I don't believe it could be done now." Johnson said: "There's a chance to vote today." He acknowledged that hardliners had resisted the agreement on state and local tax deductions, a key issue for Republican legislators from New York and California who are crucial to his small majority. Hardline Republican Representative Chip Roy, of Texas, told reporters that negotiations were progressing, but he still had a way to go before supporting the bill. Around 1 am EDT (0500 GMT), the House Rules Committee, which is responsible for approving legislation in the House, began debating it. The House's success would pave the way for the expected weeks of debate in the Senate. The Republicans who control both chambers are waiting on the overall package of amendments to the bill from their leadership, which is intended to unite the various factions within the party. Democrats have proposed over 500 amendments. If Congress passes this legislation, some food and health benefits would be reduced for low-income Americans. Green-energy programs would also be cancelled, and tens and tens billions of dollars could go to immigration enforcement. Trump met with Republican legislators on Tuesday in an attempt to convince holdouts to accept what he called a "big beautiful bill," however, the visit did not sway a wide range of lawmakers who are opposed to certain features. Johnson is in a tight spot, since his party has a 220-212 narrow majority. A few "no" vote from his side can scuttle this bill that Democrats claim favors the rich and cuts social programs. The bill would extend Trump's 2017 tax cuts, which were his signature achievement during his first term in office. It also added tax breaks for income from tips and overtime wages that were part of Trump's populist push last year on the campaign trail. Analysts say that it could increase the federal debt by $2 trillion to $5 trillion. Representative Jason Smith, Republican Chairman of the House Tax-Writing Committee, stated during Wednesday's debate that "failure was not an option." "The American people voted to create a new America, where families and workers will prosper again. Main Street will grow and rural towns will flourish again. And America will win again." Democrats claimed that the bill benefits wealthy people disproportionately and cuts programs for working families. Gwen Moore said, a Democrat who is a member of the tax-writing panel: "We are going to ask Americans for credit cards to pay tax cuts to billionaires." "This bill is ugly, despite its deficits, because it's a betrayal to the contract we made with our American people and, in particular, our babies and our working people," said Gwen Moore, a Democrat on the tax-writing committee. DEBT CEILING Medicaid, the health care program for low income households, has been a major sticking-point. Fiscal hawks have pushed for tax cuts that would offset some of the costs. Moderate Republicans, however, say this will hurt the voters who they need to support them in the midterm elections for the Congress in 2026. A handful of Republican legislators, mostly from states with high taxes, such as New York and California are also opposed to the bill. They want an increase in the proposed cap for deductions on state and local tax. The bill would increase the debt ceiling of the United States by $4 trillion. The limit must be addressed by the summer of this year or lawmakers risk triggering an uncontrollable default. (Reporting and writing by Bo Erickson, David Morgan and Andy Sullivan. Editing and proofreading by Scott Malone Daniel Wallis and Howard Goller.
UAE's Mubadala Energy, Pupuk Indonesia sign initial gas supply deal
A spokesperson for Mubadala Energy in the United Arab Emirates said that Mubadala Energy had signed an initial contract to supply gas to Indonesia's state fertiliser manufacturer Pupuk Indonesia.
Paul Slinger, speaking at an industry conference organized by the Indonesia Petroleum Association, said that Mubadala Energy would supply 115 millions standard cubic feet of methanol per day to Pupuk and 85 mmscfd for its ammonia facility.
Slinger stated that the gas will be delivered as soon as production starts at Mubadala Energy South Andaman Block. The Tangkulo-1 well is expected to begin producing by late 2028.
Mubadala Energy reported last year that the Tangkulo-1 well, located in the South Andaman Block (located around 100 km 62 miles off northern Sumatra), had discovered gas. The potential gas reserves are more than 2 trillion cubic feet (tcf).
The Layaran-1 discovery, also within the same block of land, was followed by another find at the Layaran-1, which could have more than 6 tcf in place. Analysts said this discovery would be the second largest deep-water discovery worldwide for 2023. (Reporting and writing by Bernadette Cristina Munthe, Fransiska Naangoy; editing by John Mair, Rachna uppal and Fransiska Uppal).
(source: Reuters)