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Oil drops as Trump's deadline of 50 days for Russia eases supply concerns
Oil prices dropped on Tuesday as U.S. president Donald Trump's 50-day deadline to Russia for ending the Ukraine war in order to avoid sanctions reduced immediate supply concerns. Brent crude futures dropped 29 cents or 0.4% to $68.92 per barrel at 0342 GMT. U.S. West Texas Intermediate Crude futures declined 35 cents or 0.5% to $66.63. Both contracts closed more than $1 lower the previous session. "Trump’s more lenient stance on Russian oil sanctions eased fears of a shortage while his tariff plan continues mounting economic pressures," said Priyanka Sackdeva, Senior Market Analyst at Phillip Nova. The news of possible sanctions caused oil prices to rise, but they later lost these gains, as the deadline of 50 days raised the hope that sanctions could be avoided. Traders also speculated whether the U.S. actually would impose high tariffs on countries who continue to trade with Russia. Analysts at ING wrote in a Tuesday note that if Trump follows through with the sanctions and they are implemented, it "would drastically change the outlook of the oil market". China, India and Turkey are among the top three buyers of Russian crude. The ING note stated that they would have to compare the costs of exporting to the US against the benefits of purchasing discounted Russian crude oil. Trump announced on Monday new weapons for Ukraine, and said on Saturday that he would impose 30% tariffs on most imports coming from the European Union or Mexico starting August 1. He had also issued similar warnings to other countries. Tariffs could slow down the global economy, which would reduce fuel demand and lower oil prices. According to Russian media, the secretary general of the Organization of Petroleum Exporting Countries said that oil demand will remain "very strong" throughout the third quarter. This will keep the market in a tight balance for the near future. Goldman Sachs raised its oil prices outlook for the second-half of 2025. The company cited potential supply disruptions and shrinking oil stocks in Organisation for Economic Co-operation and Development (OECD) countries as well as production constraints in Russia. (Reporting from Anjana Anil and Sudarshan Varadhan in Singapore, with editing by Jamie Freed.)
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Baker Hughes, Petronas Team Up for Asia-Pacific Energy Resilience
Energy technology company Baker Hughes and Malaysia’s state-run energy giant Petronas have signed a memorandum of understanding (MoU) on a strategic partnership to explore business initiatives that have the potential to support the delivery of Asia’s energy expansion and transition.The MoU serves as a foundation for collaboration initiatives between the two companies to enhance local supply chain capabilities and explore the feasibility of implementing a variety of technology solutions.The include enhanced LNG services footprint and cross-border talent training and development programs to strengthen local field operations capabilities, exploration and production, chemicals and mature assets solutions, digital solutions, including AI, as well as sustainable energy solutions including carbon capture, utilization and storage (CCUS), as well as lubricants and biofuels for turbomachinery supply chain.In support of these initiatives, Baker Hughes announced plans to expand on its existing services footprint in Malaysia to develop a full aeroderivative gas turbine module repair services facility, inclusive of disassembly, assembling, grinding and testing capabilities.With an installed base of over 600 gas turbines and continued expected growth given the energy expansion, these augmented services capabilities will provide enhanced service to customers across the region with the aim to accelerate service turnaround time and enable continued best-in-class reliability and availability.“It is critically important to grow alongside our customers in Asia-Pacific, including Petronas, as we work toward our shared goal of sustainable energy development to provide for a world that needs more reliable, secure and lower-carbon energy. We look forward to working alongside Petronas, as well as other local partners, to realize this additional localization effort to help ensure energy is available today and in the future,” said Lorenzo Simonelli, Baker Hughes Chairman and CEO.
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US Delays Rule on Gulf of Mexico Whale Protection
U.S. President Donald Trump's administration will delay by two years a final rule designating protections for the endangered Rice's whale in the oil and gas drilling region of the Gulf of Mexico, according to an agreement with environmental groups filed in a federal court.The U.S. Commerce Department's National Marine Fisheries Service agreed with green group Natural Resources Defense Council to finalize by July 15, 2027 the geographic area deemed critical for the Rice's whale survival. The previous deadline had been Tuesday, July 15, of this year.The agreement filed in the U.S. District Court for the District of Columbia on July 3 was seen by Reuters on Monday."NMFS continues to make diligent progress on this complex Final Rule," the agreement said. "NMFS, however, requires additional time to analyze the impact of the Rule and evaluate the science underlying it. As part of that process, NMFS plans to coordinate its efforts with the scientific and academic communities."The delay is the latest turn in a legal battle among conservationists, the oil and gas industry and the federal government over protecting a whale that was only recognized as a unique species in 2021. The Rice's whale was previously considered a Gulf of Mexico subspecies of the Bryde's whale.Probably fewer than 100 Rice's whales remain in the Gulf of Mexico, according to NMFS. The mammals, which measure up to 41 feet and weigh up to 60,000 lbs, have primarily been seen in the Eastern Gulf, off the coast of Florida, but have also been spotted in western areas off the Louisiana and Texas coasts. The central and western Gulf is where most U.S. offshore oil and gas production occurs.NMFS officials were not immediately available for additional comment. NRDC, representing the environmental group Healthy Gulf in a 2020 lawsuit over designation of the so-called critical habitat, was also not immediately available for comment.Oil and gas companies in the region welcomed the delay. Drillers had faced restrictions on how they could operate in key parts of the northern Gulf under a proposal published by former U.S. President Joe Biden's administration in 2023.That proposal had expanded the whale's critical habitat to the central and western Gulf, potentially putting productive areas off-limits to oil and gas exploration and development. Green groups and government scientists have said that oil and gas operations threaten the Rice's whale's continued existence."We strongly support the decision to extend the timeline for finalizing the Rice's whale critical habitat. Given how much work is needed to get this rule right, extending the deadline is both responsible and necessary," Erik Milito, president of the National Ocean Industries Association, an oil and gas trade group, said in a statement.(Reuters - Reporting by Nichola Groom; Editing by Mark Porter, David Gregorio and Richard Chang)
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Iron ore prices fall as China's property data is sluggish
The price of iron ore futures fell on Tuesday, as the persistent weakness of China's real estate sector dampened investor confidence. Meanwhile, a decline in crude steel production and weather-related disruptions further affected steel consumption. As of 0250 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.07% lower. It was 765.5 Yuan ($106.75). The benchmark iron ore for August on the Singapore Exchange fell 0.59% to $99 per ton. China's new-home prices fell the most in June since eight months. This reflects a continued slowdown in the real estate sector. China's crude output of steel in June was down 3.9% on the previous month and 9.2% year-onyear, as steelmakers performed more equipment maintenance. As a result of the high temperatures in northern Canada and the heavy rains in eastern and southern United States, outdoor construction was limited, which in turn reduced the demand for steel. In a recent note, analysts at ANZ stated that "strong steel production, healthy margins and low inventories of steel appear to have encouraged mills to restock their raw materials." ANZ said that the gains are limited, however, by the concern that authorities will continue reducing steel capacity. China's Q2 Gross Domestic Product (GDP) grew by 5.2% from the previous year. Meanwhile, June industrial production grew 6.8%, exceeding analyst expectations despite the U.S. Tariffs. Hexun Futures, a broker, reported that iron ore shipments from Australia and Brazil, two of the world's top producers, were mixed. Australia's shipments declined due to maintenance in some ports while Brazil's shipments recovered significantly. Coking coal and coke, which are used to make steel, also fell on the DCE. They were down by 0.16% each and 0.59 % respectively. All steel benchmarks at the Shanghai Futures Exchange fell. The price of rebar fell by 0.35%. Hot-rolled coil dropped by 0.21%. Wire rod was down 1.37%. Stainless steel dropped 0.04%. ($1 = 7.1712 Chinese yuan). (Reporting and editing by Rashmi Liew)
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Copper prices fluctuate when China GDP exceeds forecasts and markets focus on US data
The London Metal Exchange (LME) and Shanghai Futures Exchange (SFE) saw only small fluctuations in copper prices on Tuesday as China's GDP growth was forecast. Meanwhile, traders were awaiting U.S. inflation figures and possible monetary policy changes. As of 0203 GMT the LME's three-month copper contract was up by 0.27% to $9,644.5 a metric ton. The most traded copper contract on SHFE, however, fell 0.33% to $78,030 ($10,883.30). China's National Bureau of Statistics reported that the GDP of the country grew by 5.2% in April-June. This is slightly less than the 5.4% growth of the first quarter. The GDP growth of the country for the first half of the year 2025 will be at 5.3%. Fixed asset investment has increased 2.8% on an annual basis. The metals market won't react much as long as China's first-half GDP growth is over 5%. For the remainder of 2025, and the longer-term, it will be more about how Beijing deals with the overcapacity and fierce competition in many industrial sectors. A poll predicted that China's GDP would grow by 5.1% in April-June compared to 5.4% in the previous quarter. The dollar was near its three-week peak against other major currencies as traders awaited U.S. Inflation data to get clues about monetary policy, and the possible departure of Federal Reserve Chairman Jerome Powell in light of continued criticism by U.S. president Donald Trump. LME aluminium climbed 0.17% to $2,596.5 a ton. Nickel fell 0.13% at $15,045 and tin traded flat at $33,515. SHFE nickel dropped 1.1%, to 119.440 yuan for a ton. Tin fell 0.47% to 264.960 yuan. Zinc was down 0.36% at 22,125 yuan. Lead was down 0.18% to 17,030. Aluminium edged lower by 0.07% to 20,420. Click or to see the latest news in metals, and other related stories. DATA/EVENTS 0900 Germany ZEW Economic Conditions, ZEW Current Sentiment July 1000 EU Reserve Assets June 1230 US core CPI MM and SA June1230 US core CPI YY and NSA. June 1230 US MM and SA. June 1230 US YY.
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China's crude steel production in June falls as demand wanes
China's crude output of steel in June was down 3.9% from last month and 9.2% from a year ago, as steelmakers maintained equipment amid seasonal demand declines. Data from the National Bureau of Statistics revealed that the world's biggest steel producer produced 83.18 millions metric tons of raw steel in the last month. This is the lowest monthly level so far this season. Calculations based on data show that the average daily production in June was 2,77 million tonnes, down by 0.7% from May's 2.79 million tonnes. Heavy rains and high temperatures in the east and south regions of the country have curtailed outdoor construction, reducing demand for steel. Some mills began annual maintenance of equipment, which resulted in lower production. According to data provided by consultancy Mysteel, the daily hot metal production averaged 2,42 million tons during June, a 0.8% decrease from the 2.44 million tons produced in May. The first half of this year saw a total output of 514.83 millions tons, a 3% decrease from the previous year. (Reporting and editing by Amy Lv, Lewis Jackson and Saad Sayeed).
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Gold prices rise as US inflation data is emphasized
Gold prices rose on Tuesday ahead of U.S. Inflation data that will be released later in the day. This could provide more clarity on the Federal Reserve’s interest rate policy. As of 0151 GMT, spot gold was up by 0.1%, at $3,346.94 an ounce. U.S. Gold Futures were unchanged at $3,355.60. Tim Waterer, KCM Trade's Chief Market Analyst, said that gold has historically been an asset of preference when tensions over tariffs increase. The precious metals' move to $3,350 shows this pattern is repeating itself. In the absence of geopolitical tensions, a drop in USD or Treasury yields could be needed to allow gold to continue its upward trajectory towards $3400. After weeks of failed negotiations, U.S. president Donald Trump threatened on Saturday to impose a 30 percent tariff on imports coming from Mexico and the European Union beginning on August 1. The focus of traders now turns to the U.S. Consumer Price data for June due at 1230 GMT, Tuesday. The economists surveyed by predict that headline inflation will increase from 2.4% to 2,7% annually, up from the 2.4% recorded in the previous month. Core inflation is forecast to increase to 3.0% from 2.8%. Trump renewed his attack on Jerome Powell on Monday, saying that interest rates should be 1% or less. The markets are pricing in a 50 basis point rate cut by the end of the year, with a first reduction anticipated in September. In a low interest rate environment, gold, which is often viewed as a safe haven during economic uncertainty, does well. Silver spot gained 0.3%, to $38.24 an ounce. It had reached its highest level since Sept. 2011 on Monday. Silver is benefiting from growing industrial demand and supply concerns. Silver has risen as investors have sought value elsewhere due to the rise of gold over the last 18 months, Waterer added. Palladium and platinum both rose by 0.1% to $1,194.50. Platinum was up 0.3% at $1,368.30.
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JGB yields soar as Asian shares surge, the dollar strengthens before US earnings
The dollar gained on Tuesday, as the trade talks were still in the spotlight. This week will also see important readings for U.S. bank earnings and inflation. Oil prices fell after U.S. president Donald Trump set a deadline of 50 days for Russia to stop the war in Ukraine or face energy sanctions. As a crucial upper house election approached, Japanese government bond yields reached a multi-decade peak. Trump indicated he would be open to discussing tariffs following his threat at the weekend to impose 30% duty on Europe and Mexico starting August 1. Japan is trying to set up high-level discussions with the U.S. on Friday. Rodrigo Catril, a strategist at National Australia Bank, says that the market has reacted rather positively to the uncertainty surrounding tariffs. This makes earnings this week in the United States all the more significant as cues. Catril, in a NAB Podcast, said that it would be interesting to hear what the companies have to say, especially in regards to the future-looking outlook. He added, "I believe that the idea of complacency comes from the fact that we don't know how this entire thing will play out." MSCI's broadest Asia-Pacific share index outside Japan rose 0.4% after U.S. shares ended the previous session with modest gains. Japan's Nikkei gauge added 0.2%. The EU warned that if a deal is not reached, it will take countermeasures. Trump said that he would be open to more discussions with the EU, and other trading partners. The Yomiuri reported that Japan's Shigeru Shiba will meet U.S. Treasury Sec. Scott Bessent on Friday in Tokyo, before the August 1 deadline for 25% tariffs to go into effect. Ishiba will also have to deal with an election on Sunday. Polls show that his ruling coalition could lose its majority in the upper chamber to political opponents advocating expansive spending. The benchmark yield on 10-year JGBs jumped to 1,595%, the highest since October 2008. Meanwhile, the 30-year yield reached a record high of 3,195%. The U.S. earnings period will begin Tuesday with the release of major bank's second-quarter results. According to LSEG, S&P profits will rise 5.8% over the past year. The outlook for the S&P 500 has changed dramatically since Trump's trade war began in early April, when he predicted a 10.2% increase. Investors will also be watching for the U.S. consumer prices data for June due Tuesday and any price increases that may result from tariffs. After reaching a new three-week high, the dollar was barely changed at 147.71yen. The euro was unchanged at $1.1672. U.S. crude fell 0.3% to $66,80 per barrel. Trump announced on Monday new weapons shipments to Ukraine and threatened sanctions against buyers of Russian exports until Moscow agreed to a 50-day peace agreement. Spot silver rose 0.1% to 38.15 dollars per ounce after reaching its highest level since the previous session. Early trades showed that the Euro Stoxx futures for all regions were up by 0.1%. The German DAX was also up by 0.1% and FTSE Futures were also up by 0.2%. U.S. Stock Futures, S&P500 e-minis were down by 0.1%.
Infinity Natural Resources, backed by Pearl Energy, raises $265 mln through an IPO in the US
Infinity Natural Resources, a private equity-backed oil-and-natural-gas producer in the U.S. raised $265M in its initial public offer on Thursday. This is the latest energy company to sell shares for the first time in New York.
The Morgantown, West Virginia based company was valued at $1.18 billion in the IPO.
The company sold 13.5 millions shares for $20 within the range of $18 to $21.
The energy industry has been a key theme on the IPO market this year, as companies look to capitalize on investor fervor for the sector.
Infinity was founded in 2017 and produces oil, gas, and liquid natural gas. Its operations are located in the Appalachian Basin in the northeastern United States.
Infinity goes public after its revenue has more than doubled in the first nine month of 2024. The company's production volume grew as a result of wells it acquired in October from Utica Resources Ventures & PEO Ohio for $279m.
Venture Global, a LNG exporter and Flowco, a private equity-backed artificial lifting firm, both went public earlier this month in New York.
Other energy-related IPO candidates include drilling equipment and marine transportation services provider HMH Holding.
Infinity, which tapped fourteen banks for the IPO is expected to start trading on the New York Stock Exchange on Friday under the symbol "INR".
Citigroup, Raymond James, and RBC Capital Markets led the underwriters of the offering.
The proceeds of the IPO will be used for Infinity to pay off its outstanding debt as well as other purposes.
Pearl and NGP together will hold a significant majority of Infinity’s common stock, and therefore voting power, after the offering. (Reporting from Arasu Kanagi Basil and Jaiveer S. Shekhawat, Bengaluru. Editing by Maju Sam)
(source: Reuters)