Latest News
-
Gold reaches a new high in a week on the back of a weaker dollar and US fiscal concerns
The gold price rose to its highest level in a week on Wednesday as the dollar fell and investors sought security amid U.S. financial uncertainty. Congress was debating an sweeping tax reform. As of 0209 GMT spot gold rose 0.2% to $3,293.98 per ounce after reaching its highest level since the May 12 session earlier in that session. U.S. Gold Futures rose 0.3% to $3295.80. Gold priced in greenbacks is now cheaper for holders of foreign currencies. The general dollar index has lost over a point in the past 24 hours due to the Moody's downgrade and skepticism regarding Trump's tax bill. Trump urged his Republican colleagues in the U.S. Congress on Tuesday to unite around a sweeping bill to cut taxes, but failed to convince a few holdouts that could still block a comprehensive package that includes much of his domestic agenda. In a low rate environment, gold, which is traditionally viewed as a safe haven during times of political and economic unrest, thrives. Tim Waterer, Chief Market Analyst at KCM Trade, said that "over the medium to long-term, gold's price is likely to rise further. However, if there are any headlines about positive trade deals, this could make it difficult for gold to try to regain the $3,500 mark." St. Louis Fed president Alberto Musalem said to the Economic Club of Minnesota, that trade tensions could allow the labor markets to remain strong and inflation on track to reach the Fed's goal of 2%. The traders now bet on the Fed cutting rates again in October, and that there will be around 54 basis point cuts by 2025. Spot silver dropped 0.2% to $32.99 per ounce. Platinum was down 0.3%, at $1,050.25. Palladium rose 0.5% to reach $1,017.93 - its highest price since February 4.
-
London copper prices rise on Dollar weakness and China rate cuts
The copper price in London was slightly higher on Tuesday, following some weakness in U.S. dollars and the stimulus efforts of top consumer China. However, gains were modest due to persistent uncertainty about economic growth caused by high tariffs. As of 0208 GMT, the benchmark copper price on London Metal Exchange was up 0.6% to $9,572.5 per metric tonne. The U.S. Dollar edged lower Wednesday, continuing a two-day decline against major counterparts, making commodities priced in greenbacks less expensive for buyers with other currencies. China lowered its benchmark lending rate for the first since October. Major state banks also lowered their deposit rates. Authorities are easing monetary policy in an effort to cushion the economy against the effects of the Sino-U.S. Trade War. Last week the U.S. agreed to lower tit-fortat tariffs with China and implement a 90 day pause in actions. However, there is still uncertainty about what will happen after this temporary truce. The fear that these tariffs could contribute to a possible U.S. economic recession may limit the gains in copper price at higher levels, said Sugandha Sachdeva. He is founder of SS WealthStreet a New Delhi based research company. Copper prices have found strong support in the technical sense at $9,500 a tonne. In the short term, they are expected to reach $9,950 a tonne if there are no macroeconomic shocks. Other London metals saw an increase of 0.6% in aluminium to $2486.5 per ton. Zinc rose 0.4% at $2721, while lead rose 0.4% at $1989, and nickel grew 0.08% at $15,530. Tin fell 0.04% to $30,070. The Shanghai Futures Exchange's (SHFE) most traded copper contract rose by 0.4%, to 78.160 yuan per ton ($10,837.8). SHFE aluminium rose 0.5%, to 20,165 Yuan per ton. Zinc was up by 0.5%, to 22,540 Yuan. Lead was up by 0.6%, to 16,905 Yuan. Nickel firmed up 0.08%, to 123450 Yuan. Tin was up 1.2%, to 267960 Yuan.
-
Asian stocks gain as US fiscal health and trade deals are in focus
Investors remained concerned about the fiscal outlook for major developed economies, and the lack progress in new trade agreements. After a CNN report that Israel was planning a strike against Iranian nuclear facilities, the price of crude oil rose by more than $1 per barrel. This raised supply concerns outside of Middle East's key producing region. It also brought geopolitical issues back into focus. The Japanese bond market is also in the spotlight, after the yields of super-long-term bonds surged to new highs amid concerns about the demand for debt from the country following a disappointing 20-year auction. Early trading on Wednesday saw the yields on JGBs of 20 years and 30 years rise by 2 basis points while the 30-year JGB yields fell by 1.5 bps. Hong Kong's Hang Seng Index grew 0.58%, but China's blue chip index was down in the early trading. China warned that it would take legal action against anyone or any organisation who helped or implemented U.S. policies that advised companies to avoid using advanced semiconductors made in China. The MSCI index for Asia-Pacific stocks outside Japan grew by 0.5% while Japan's Nikkei fell 0.18%. Kyle Rodda is a senior financial analyst at Capital.com. He said, "The markets are looking for new catalysts that will increase risk appetite." The U.S.'s reversal on trade policy, and the damage-control that was done to fix the mess they created with the Liberation Day Tariffs, signals a commitment to getting this all done. This is what keeps equity valuations strong." Data released on Wednesday revealed that Japanese exports to the U.S. rose for the seventh consecutive month even though shipments fell. This highlights the potential impact of President Donald Trump's new tariffs on Japan's fragile economic recovery. Wall Street also felt the effects of fiscal woes. The benchmark S&P500 ended a six-day streak of gains on Tuesday. This was limited by an increase in U.S. Treasury rates, which remained steady during Asian hours on Thursday. Congress is expected to vote on a tax bill this week that could add between $3 trillion and $5 trillion to U.S. government's $36.2 trillion debt, just days after Moody's lowered the country's rating. Analysts noted that progress on new deals between the U.S. Officials from the U.S. Federal Reserve said on Tuesday that rising U.S. tariffs were causing higher prices and urged patience before making interest rate decisions. Traders are also concerned that U.S. officials may be attempting to weaken the dollar at Group of Seven Finance Minister meetings, which are currently taking place in Canada. STOXX futures in Europe were stable, while FTSE 100's futures were muted. This was due to the caution that had been set in place ahead of a consumer price inflation report from the United Kingdom, which is expected later today. The economists polled predicted that the consumer price index would rise by 3.3% from 2.2% in March to 3.3% in April. The dollar index (which measures the U.S. money against six other currencies) fell 0.03%, to 99.938, after a two-day drop of 1.3%. The Japanese yen rose to 144.27 dollars, nearing its highest level in the past two weeks. The dollar fell on Wednesday, and investors moved to safer assets. Gold spot was up 0.14% to $3,293 an ounce. This is the highest price in over a week. (Reporting and editing by Johann M Cherian in Singapore, Ankur Banerjee)
-
Sources say that RPT-China’s CMOC has called on Congo to lift the cobalt export prohibition.
Three sources said that China's CMOC group, the world's largest cobalt mining firm, called on the Democratic Republic of Congo to lift a current export ban for battery metal due to expire in the next month. Congo, which is the world's largest cobalt producer, implemented the four-month-long ban in February to try to reduce surpluses after cobalt prices reached a nine-year low of around $10 per lb or $22,000 per metric ton. . Sources said that CMOC Vice President Kenny Ives, during a closed session at an industry conference in Singapore, told delegates that Congo should remove the export restrictions on metals, which are an important component in batteries for electric vehicles. Sources who heard Ives speak said that Kizito Pakabomba, the Congo Mines Minister, was present at the session. Congo kept the market guessing about its next move when the ban expires on June 22, according to sources. Sources told the media in February that the government might extend the suspension, and also consider export quotas. Sources who requested anonymity due to the sensitive nature of the issue said that Ives had said China's inventory of pipelines was running low and Congo should allow its miners to export cobalt freely. Ives said that Congo's restrictions of cobalt exports could accelerate automakers' shift to lithium iron phosphate batteries (LFP), which do not require cobalt. BYD and other Chinese electric vehicle manufacturers have already adopted LFP battery technology, which is also used in utility-scale energy storage. Two sources claim that Congolese officials who were present at the event perceived Ives' mention of LFPs as an act of threat. One source said that the remarks reinforced officials' fears that China was trying to lower cobalt prices to build strategic stockpiles. Officials from the Congo, including Pakabomba did not reply to phone calls or emails asking for comments. CMOC's spokesperson Vincent Zhou refused to comment on Ives remarks or questions about Congo's fears of stockpiling but stated that the company is in favor of a "healthy marketplace environment". According to LSEG, Chinese electric vehicle batteries maker CATL has a 30% stake at CMOC. CMOC is expecting to produce between 100,000 and 112,000 metric tons of Cobalt in 2019, which is roughly twice the amount produced in 2023. This will be due to its increased activity at its Tenke Fungurume copper and cobalt mining operations in Congo. GLENCORE BACKS EXPORT CURBS Traders from Glencore, another major cobalt miner said that the market needed a stable price to lift the export ban and producers like Congo and Indonesia had to manage the oversupply. Glencore has declined to comment. Sources said that Glencore traders in Singapore stated the company would accept an quota system if the Congo government chose to implement it. Shirley Wang, General Manager of Shanghai Metals Market said that Chinese smelters had built up stocks to last for between two weeks and 6 months. One source said that Congo is currently evaluating and considering the impact of this ban, and proposals from mining companies, and other players in the market. She added that the negative side of stopped exports would be a loss of revenue for the government. Benchmark Mineral Intelligence stated in a press release that the most likely scenario is either an extension of this ban, followed by an introduction of export quotas or a transition directly to export quotas starting late June. Both scenarios will likely support pricing. Reporting by Felix Njini from Johannesburg and Pratima Dasai from London; editing by Veronica Brown, Joe Bavier and Joe Bavier
-
Oil prices rise 1% after reports that Israel is preparing a strike against Iranian nuclear facilities
The price of oil jumped by more than 1% after Israel was reported to be preparing an attack on Iranian nuclear facilities. This sparked fears that the conflict could disrupt supply in this key Middle East region. Brent futures rose 86 cents or 1.32% to $66.24 per barrel at 0003 GMT. U.S. West Texas Intermediate Crude Futures for July rose 90 cents, or 1.45%, to $62.93. CNN reported Tuesday that the United States has received new intelligence suggesting that Israel is planning to attack Iranian nuclear facilities. CNN cited multiple U.S. government officials who are familiar with the issue. CNN, citing officials, added that it was unclear whether Israeli leaders had made a decision. On the news, U.S. crude oil futures rose over $2 per barrel while Brent futures climbed more than $1. Israel's attack on Iran could disrupt oil flows. Iran is the third largest producer in the Organization of Petroleum Exporting Countries. Iran may also retaliate, blocking oil tanker traffic through the Strait of Hormuz, a chokepoint in Gulf through which Saudi Arabia Kuwait Iraq and United Arab Emirates export crude and fuel. Nevertheless, some signs of improvement in crude supply were evident. Market sources cited American Petroleum Institute data on Tuesday to report that U.S. crude stockpiles rose last week, while gasoline and distillate stocks fell. Sources, who spoke on condition of anonymity, said that crude stocks in the U.S. - the world's largest oil consumer - rose by 2.5m barrels during the week ending May 16. Investors will also be watching the Energy Information Administration's report on U.S. government oil stocks later this Wednesday. A source in the industry said that Kazakhstan's oil output has risen by 2% since May. This is a significant increase, which defies the pressure of OPEC+ to reduce Kazakhstan's production. (Reporting and editing by Christian Schmollinger in Houston, Georgina McCartney from Houston)
-
South Korea pledges support to biopharmaceutical and auto sectors in the face of US tariffs
The South Korean government announced on Wednesday that it would increase support for export industries including biopharmaceutical, auto, and the biopharmaceutical sectors. These sectors are expected to suffer from U.S. President Donald Trump’s tariffs. In a press release, the government said that it would prepare new measures for its biopharmaceutical firms as soon as Trump's tariffs in this sector are known. Trump signed an Executive Order earlier this month to reduce the time required for approval of pharmaceutical plants within the United States. This move is part new regulations designed to encourage domestic production, following Trump's probes of pharmaceutical imports to put tariffs on that sector. In 2024, South Korea's pharmaceutical exports will amount to $9.59 billion. This represents just 1.4% its total exports. Yet, the United States was the largest market for the country's exports, accounting for 16%. The government also said that it would prepare additional support measures if needed to complement the earlier packages announced by last month in order to help other industries, such as automakers or chipmakers and steel producers, cope with tariffs. Seoul, after a second round at ministerial level last week, is now holding technical discussions on a working-level with Washington. It seeks to exempt all tariffs through a comprehensive trade package that will be crafted by early July. South Korea's exports surprised many last month. They were buoyed by a strong demand for semiconductors in spite of the U.S. trade tariffs. However, there are signs global trade tensions may be affecting its important auto sector. (Reporting and editing by Ed Davies.)
-
Argentina approves $2.5 bln Rio Tinto lithium mining project
The Argentine government approved on Tuesday a $2.5billion lithium mining project of Anglo-Australian Rio Tinto. This is the first mining project to be approved under a newly introduced investment incentive program. Daniel Gonzalez, the secretary for mining and energy coordination in Argentina, announced the approval of Rio Tinto’s Rincon project in northern Salta Province under the RIGI scheme at a press conference in Buenos Aires. The mining industry in Argentina has expressed concern over the delays in the approval of seven projects that have been submitted to the government after the RIGI programme was launched nine-months ago. Roberto Cacciola of the CAEM mining chamber in Argentina said at the conference: "We're grateful because there was a lot of anxiety about what was happening to the mining RIGIs." This was major news. The libertarian government of President Javier Milei is looking to boost South America's mining industry to bring in foreign currency that the country desperately needs and to maintain economic stability, as it faces high inflation rates. Argentina is the No.4 lithium supplier in the world. The world's No.4 lithium supplier, Argentina forms a "triangle" with Chile and Bolivia that holds the largest reserves of this white metal. It is used in electronic devices, electric vehicles and key technologies. South America also exports silver and gold, and there are major copper projects under construction. However, none of them is currently in production. The RIGI program also included applications from McEwen Copper, a Canadian company, and Posco of South Korea. Lucila Sigal, Brendan O'Boyle, and Natalia Siniawski edited the report.
-
Motorbike killers kill two top aides of Mexico City Mayor
On Tuesday, two top aides to Mexico City Mayor Clara Brugada died after being shot by gunmen riding a motorcycle in an attack during the daytime in the city centre. According to a city statement, the victims were Ximena Gzman, the private secretary of the mayor, and Jose Munoz a Brugada adviser. An official with the federal prosecutor’s office confirmed that initial reports suggested Guzman was driving to work when she stopped in a busy street of downtown Mexico City to pick her colleague up. Munoz was shot in the street by two motorbike riders. Guzman was killed by the attackers who fired four shots into her vehicle. The motive of the attack has not been revealed by authorities, but security experts believe it was a crime-related hit. Assassinations in Mexico's capital have shocked the city, which is widely seen as a place of relative safety amid a violent country. In many parts of Mexico political violence is common. Scores of local politicians have been killed in assassinations usually tied to drug cartels trying to exert their influence. Brugada, visibly upset by the death of Ximena (Jose) and Pepe, with whom she had shared many dreams and struggles for years. She thanked Mexican president Claudia Sheinbaum, and her cabinet, for their support and co-operation since the attack. Sheinbaum was a former Mexico City mayor. Sheinbaum stated, "It's a terrible incident and we will give the mayor all the help he needs." Brugada said that those responsible for the murder would not be left unpunished. A government official in Mexico City said that she was not in her car at the time of the attack. Local media published photos of a black Audi that had four bullet holes on the front windshield and a sheet covering a body. Another body was covered by a white sheet. Police taped the area off so that forensic experts could examine the scene. David Saucedo is a specialist in public security. He said that the message was sent by drug traffickers to Clara. He said that groups affected by drug seizures had previously attacked the authorities of the capital. Omar Garcia Harfuch was wounded in 2020, when he was the chief of police for Mexico City. He is now the minister for federal security. Two of his bodyguards were also killed. He blamed the Jalisco Cartel, one of the most powerful drug cartels in the country, for the attack.
Control System Automation Maximizes Your Operation
Pressure control equipment is the backbone of the Oil and Gas Industry. It is the first and last line of defense in pressure and flow control. Advancements in valves, chokes, blowout preventers (BOPs), relief valves, and other equipment have allowed our industry to become exponentially more efficient in the production of Oil and Gas. If pressure control equipment is the backbone of our industry, then the control and automation systems are the brain. Originally designed to eliminate human presence in hazardous areas, these systems have evolved with technology, expanding their capabilities.
As pressure control equipment has progressed, so have the control systems used to control and monitor its operation. Most of this equipment operates manually, requiring personnel to enter a high-pressure area, “red zone”, and expose themselves to potentially dangerous environments while actuating the equipment. Over time, injuries and accidents have led many operators to require this equipment to be remote-controlled using hydraulic, pneumatic, or electric actuation. This necessity led to the development of remote-control systems to monitor and control these actuators.
CORTEC Hydraulic Choke & Valve Command Center Control Panel in the Field
As recently as 30 years ago, most control systems were analog; they were generally hydraulic power units (HPUs) with minimum monitoring instrumentation. Industry standards, such as API 16C, API 16D, and others, exist that dictate the basic requirements for critical well control systems like choke and kill and BOP systems. These standards are regularly reviewed and constantly evolving, yet they only represent the minimum requirements for controlling and monitoring this equipment.
These minimum requirements are sufficient to perform pressure and flow control operations safely in most instances, but higher levels of functionality are available. Basic remote-controlled systems will open and close chokes and valves as the user directs, and will monitor pressures and positions to control the equipment as if it were being manually controlled. However, the advancements in electronic and hydraulic components have revolutionized the design of control systems. These technological developments have enabled the creation of systems that operate with higher efficiency, offer greater access to information, and empower operators to exercise better control over their equipment, significantly enhancing the overall performance and reliability of control systems across the industry.
CORTEC_CX-HB3.0 Hydra-Balance Dual Choke Setpoint System
Advanced control systems can host a myriad of sensors that display and record information based on user-specific set points, such as pressure, flow rate, and position, which has proven to be very efficient and eliminates human error. By continuously monitoring pressure levels and making rapid adjustments through automated valve and choke control, these systems prevent dangerous situations, helping optimize process performance while minimizing the need for manual intervention and alerting users to issues before they become catastrophic. The data collected by these advanced control systems can be aggregated and analyzed to develop better procedures for operations, resulting in improved efficiency. Nevertheless, control and automation systems are not “one size fits all”; they vary based on an operator’s specific needs. What is being controlled? What is the operation? What information is needed for control, such as temperature, pressure, position, fluid level, flow rate, etc.? What can we automate? What safeguards do we need to put in place? These are some of the questions we ask in the preliminary design stage of a control system.
In most cases, users are often unaware of the potential for automation and are frequently surprised by unique suggestions for automating operations they usually perform manually. Instead of settling for minimal control, CORTEC aims to create control systems that can optimize the performance of your pressure control equipment and enhance your overall operation. We provide a variety of options, including standard API 16C monogrammed drilling choke control systems, resettable relief valve controls, choke command centers, frac relief valve control, auto bleed-off and equalization systems, and automated sand dump control systems, to name a few.
CORTEC CX-EC3. MPD Choke Setpoint_System
CORTEC offers turnkey automated solutions to complement our choke and valve products for drilling and completion operations. These solutions deliver systems with precise control in a simple, manageable package. Our experienced team has designed these control system configurations to accommodate a variety of end-user preferences. Whether you need a single setpoint system or conventional well control, CORTEC has the expertise and capability to deliver custom compact control consoles or larger command centers that meet your specific requirements and result in a substantial reduction in operating costs and increased efficiency.
To learn more about how CORTEC can help you maximize your operation with turnkey automated solutions, visit uscortec.com/products/automation or contact us directly at [email protected] .
