Latest News
-
Gold's record-breaking run is halted as investors book profits
The gold price fell on Tuesday as investors took profits following the bullion's recent high, which was fueled by the expectation of more interest rate reductions from the U.S. Federal Reserve. As of 0456 GMT spot gold was down by 0.3%, at $4340.99 an ounce. It had reached a record high of $4381.21 per ounce on Monday. U.S. Gold Futures for December Delivery were unchanged at $4,357.80 an ounce. Tim Waterer, KCM Trade's Chief Market Analyst, said that profit-taking and a decline in safe-haven flows have combined to take the edge of the gold price. Any pullbacks will be seen as opportunities for buying gold while the Fed continues on its current rate-cutting path. According to the CME FedWatch Tool, markets are pricing in a quart-point Fed rate reduction this month and another in December. In a low-interest rate environment, gold, which is a nonyielding investment, does well. Waterer stated that the current gold rally still has room to rise, provided U.S. CPI figures released later this week don't reveal any unpleasant surprises. According to economists surveyed by the, the data is scheduled to be released on Friday, after a delay caused by the government shutdown. The index should have risen 3.1% year-over-year in September. On Monday, the U.S. shutdown reached its 20th consecutive day after senators failed to resolve the impasse for the 10th time in a row last week. Kevin Hassett, White House's economic adviser, said that the shutdown would likely end this week. The shutdown has caused key economic data to be delayed, leaving investors and policymakers with a data vacuum ahead of next week's Fed policy meeting. In Malaysia, U.S. Treasury secretary Scott Bessent will meet Chinese Vice Premier He Lifeng this week in an effort to prevent a rise in U.S. tariffs against Chinese goods. Silver spot fell 1.2% at $51.83 an ounce. Platinum dropped 0.7% to 1,627.53 while palladium rose 0.1% to 1 497.62.
-
Oil drops for a second consecutive day, as concerns about oversupply dominate
Oil prices dropped for a second consecutive day on Tuesday, as fears about an excess of supply and the risks to demand resulting from tensions between China and the U.S., the two largest oil consumers in the world, weighed on the market. Brent crude futures were down 17 cents or 0.28% at $60.84 per barrel as of 0343 GMT. The U.S. West Texas Intermediate (WTI), which is due to expire Tuesday, fell 0.52% to $57.22. The December contract, which is more active, was down by 19 cents or 0.33% at $56.83. In Monday's session, prices fell to their lowest level since early May on concerns over a slowing economy due to the recent escalation of the U.S. China trade dispute. WTI and Brent both have moved to Contango Market structures where prices for immediate delivery are lower than those for later deliveries and which indicates typically that supply near term is abundant and the demand weakening. Prices have fallen as the Organization of the Petroleum Exporting Countries and its allies, including Russia (known as OPEC+), have pushed forward with plans to increase oil production. Analysts have predicted a crude surplus this year and in the next. Last week, the International Energy Agency projected a global surplus in 2026 of almost 4 million barrels a day. In a note published on Tuesday, analysts at China's Haitong Securities stated that "the continued weakness of Brent's spread structure monthly indicates that the pressure due to oversupply is gradually manifesting," they said. This will dampen expectations in the market and reduce investors' willingness for gains. Limiting the potential of oil prices to recover. Goldman Sachs analysts said on Tuesday that they expect Brent prices to drop to $52 per barrel by the end of 2026. Goldman analysts attributed this week's drop in Brent oil prices to signs that "the long anticipated global surplus has begun to show" as seen in satellite data of global oil stocks and in inventory data from IEA in the U.S. and the Energy Information Administration. A preliminary poll conducted on Monday, before the weekly reports of the American Petroleum Institute (API) and the EIA, showed that the expectation is that U.S. crude stockpiles increased last week. Ashitha Shivprasad reported from Bengaluru, Sonali Paul edited the story and Christian Schmollinger provided the final edit.
-
MORNING BID EUROPE - Markets dismiss worries as risk rally continues
Ankur Banerjee gives us a look at what the future holds for European and global markets Worries about credit risk are now a distant memory. Investors feel optimistic, betting on the Fed cutting rates next week, and that earnings will be good. This - call it optimism - is what has driven stocks in Asia-Pacific to new highs, with Japan's Nikkei coming just short of a milestone 50,000 points. Apple-led gains in U.S. technology shares have led to strong gains overnight for tech stocks from Taiwan and South Korea. Sanae Takaichi, a conservative hardliner, is expected to be elected as Japan's 1st female Prime Minister later on Tuesday. Her appointment has continued to drive Japanese shares higher in hopes that her stimulus plans will benefit equities. Local media reports that Takaichi, an acolyte to former Prime Minister Shinzo Abe will appoint Satsuki Katayama to the position of Finance Chief. Katayama, who has said that the real value of the yen is closer to 120 or 130 per dollar, may not be good news for yen bulls. The last time the yen reached 151.07 was in 2007. In Europe, there is not much on the calendar in terms of economic events. This could be good for risk assets because they can take their cues from the Federal Reserve's lowering interest rates. The traders are predicting a 98.3% probability of a rate cut by 25 basis points next week. Investors are also comforted by the recent comments made by U.S. president Donald Trump about China. Trump has said he hopes to reach a fair deal with Chinese President Xi Jinping, as he prepares for a meeting with Xi at an economic conference next week in South Korea. The news next week will be dominated by the central bank meetings taking place in the U.S., Japan and the meeting between Trump & Xi. After a volatile week in which fears over credit risk impacted sentiment, traders will be focusing on regional bank reports as well. Investors were largely satisfied with the earnings reported by some companies on Monday. The following are the key developments that may influence Tuesday's markets: Earnings: Unicredit, L'Oreal
-
Another TSO Enlists Njord Survey for Offshore Wind Support Services
Swedish firm Njord Survey has entered into a frame agreement with Energinet, Denmark’s national transmission system operator (TSO), covering site and route survey services for offshore wind and subsea cable projects.The long-term collaboration reinforces Njord Survey’s position as provider of services to the offshore renewable sector.It follows the agreement company signed earlier in October with German TSO 50Hertz to deliver geophysical and ROV seabed survey service in support of offshore wind developments in Baltic Sea.Swedish Firm to Deliver Carbon-Neutral Surveys for Baltic Sea OW Projects“This partnership strengthens our role in supporting the energy transition across Northern Europe, providing high-quality, carbon-neutral survey data essential for safe and efficient infrastructure development,” said Martin Wikmar, CEO of Njord Survey.
-
Shanghai copper gains as signs of US-China tensions easing
Shanghai copper rose on Tuesday as the U.S. President Donald Trump lowered China's intentions towards Taiwan while expecting a fair deal. As of 0249 GMT, the most active contract on Shanghai Futures Exchange rose 0.49% to 85,720 Yuan ($12,034.26) a metric ton. The benchmark London Metal Exchange three-month futures rose by 0.26%, to $10 719.50 per ton. Trump said on Monday that China has no intention of invading Taiwan. He also acknowledged he would raise the issue at the high-stakes summit with his Chinese counterpart Xi Jinping next week in South Korea. Trump said he expected a "strong deal" on trade that would make him and Xi both "happy". The remarks were made during a meeting between the Australian Prime Minister Anthony Albanese and President Obama, at which they signed an important minerals agreement in order to counter China’s dominance of global supply. The U.S. Treasury secretary Scott Bessent will meet with China's vice premier He Lifeng in Malaysia to try and avoid an escalation in U.S. duties on Chinese products. The copper bulls continued to gain Monday despite the deflationary pressure in China and the slowest third quarter economic growth for a year. Traders continue to watch how trade tensions will develop between the two world's largest economies in the lead-up to Trump-Xi's planned meeting in South Korea. Aluminium gained 0.31% among other SHFE base materials, while zinc gained 0.50% and nickel gained 0.62%. Lead was up by 0.41%. Tin posted an increase of 0.81%. The LME also saw a slight increase in zinc, nickel, and tin, but little change for aluminium or lead. $1 = 7.1230 Chinese Yuan Renminbi (Reporting and editing by Harikrishnan Nair; Lewis Jackson)
-
Gold's record-breaking run is halted as investors book profits
The gold price fell on Tuesday as investors took profits following the bullion's recent high, which was fueled by the expectation of more interest rate reductions from the U.S. Federal Reserve. As of 0248 GMT on Tuesday, spot gold was down by 0.3%, at $4,340.29 an ounce. It had reached a record high of $4381.21 per ounce on Monday. U.S. Gold Futures for December Delivery eased by 0.1%, to $4.356.40 an ounce. Tim Waterer, KCM Trade's Chief Market Analyst, said that profit-taking and a decline in safe-haven flows have combined to take the edge of the gold price. Any pullbacks will be seen as opportunities for buying gold while the Fed continues on its current rate-cutting path. According to the CME FedWatch Tool, markets are pricing in a quarter point Fed rate reduction this month and another in December. In a low-interest rate environment, gold, which is a nonyielding investment, does well. Waterer stated that the current gold rally still has room to rise, provided U.S. CPI figures released later this week don't reveal any unpleasant surprises. According to economists surveyed by the, the data is scheduled to be released on Friday, after a delay caused by the government shutdown. The index should have risen 3.1% year-over-year in September. On Monday, the U.S. shutdown reached its 20th consecutive day after senators failed to resolve the impasse for the 10th time in a row last week. Kevin Hassett, White House's economic adviser, said that the shutdown would likely end this week. The shutdown has caused key economic data to be delayed, leaving investors and policymakers with a data vacuum ahead of next week's Fed policy meeting. In Malaysia, U.S. Treasury secretary Scott Bessent will meet Chinese Vice Premier He Lifeng this week in an effort to prevent a rise in U.S. tariffs against Chinese goods. Silver spot fell 1.6%, to $51.64 an ounce. Platinum dropped 0.7%, to $1.627.62, and palladium rose 0.5%, to $1.503.17.
-
Focus on China's important meeting brings iron ore to a steady state
Iron ore prices were largely in a narrow range on Tuesday as investors focused their attention on a meeting between China's top leaders that will determine the economic policies of the second largest economy of the world for the next five-year period. On Monday, the Communist Party of China began a four day closed door meeting that will culminate in the outline. However, the full plan with its development goals won't be published until March 2026. The meeting was held after data revealed that China's property crisis-hit sector continued to be a drag on the steel consumption. This also affected prospects for consumption of iron ore, an important steelmaking ingredient. As of 0214 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange was unchanged at 768.5 Yuan ($107.89). It reached the lowest level at 760 yuan since August 20. As of 0207 GMT the benchmark November iron ore traded on the Singapore Exchange had not changed much at $103.55 per ton after having hit its lowest level since October 1, at $102.85. BHP Group, meanwhile, expressed optimism about global iron ore consumption on Tuesday despite warnings of a slowing growth in China. China's crude output of steel fell to a 21 month low in September due to weak demand and shrinking margins. BHP's first-quarter iron-ore production, which is the third largest supplier in the world, was slightly below expectations due to maintenance work at Port Hedland. Coking coal, coke and other steelmaking components fell by 2.67% and 2.01% respectively. The Shanghai Futures Exchange steel benchmarks have mostly fallen as a result of the lacklustre demand. Wire rod dropped 0.8%, rebar fell 0.56% and hot-rolled coils dipped by 0.4%. Stainless steel gained 0.44%.
-
Nikkei reaches record highs as trade tensions ease
Asian stocks rose Tuesday, as the prospect of an easing of trade tensions between two of the world's largest economies increased risk sentiment. The Nikkei also reached a new record high due to the near certainty that Sanae Takaichi will be the next Japanese prime minister. U.S. president Donald Trump said he expected to reach a fair deal with Chinese President Xi Jinping, and downplayed the risks of a conflict over Taiwan. In recent weeks, trade tensions between China and the U.S. have weighed heavily on the markets. Investors are now focused on Trump's meeting with Xi next week on the sidelines an economic conference held in South Korea. Investor sentiment was lifted by the lingering optimism that a solution could be in sight. MSCI's broadest Asia-Pacific share index outside Japan reached a four-and-a-half-year-high and closed the day up by 0.94%. China's stocks were up 0.2%, while Hong Kong’s Hang Seng rose 1% in early trading. Investors snapped up stocks of rare earths, critical minerals and other essential materials after Australia signed a deal to supply the United States. The Nikkei 225 index rose by 0.86%, reaching a new record high. It was also on the verge of surpassing 50,000 points before a vote in parliament later that day. This vote is expected to confirm fiscal dove Takaichi to be the next Prime Minister of Japan. INVESTORS BUY DIP Investor sentiment also suffered last week, as a series of bad loans in regional U.S. banks sparked concerns about credit risks which threatened to spill over into the wider markets. Risk assets were also affected by the prolonged U.S. shutdown. Investors have bought the dip this week, shrugging off concerns about trade tensions and focusing instead on upcoming earnings of several large companies. Chris Weston is the head of research for Pepperstone. He said, "The market has easily overcome the wall of concern, as new capital was injected into risks and fresh air into the market's lung." The market was buoyed by the expectation that the Federal Reserve would cut interest rates at its next two meetings. Kevin Hassett, White House Economic Advisor, also commented on the likelihood of the shutdown ending this week. All three major U.S. indexes closed sharply higher overnight, with chip stocks reaching a new record high. Analysts now expect S&P 500 earnings to grow 9.3% on average year-over-year in the third quarter, a marked improvement from their estimate of 8.8% as of October 1. TAKAICHI SET TO BECOME JAPAN'S PM Takaichi, a conservative hardliner, is almost certain to be the first woman prime minister of Japan if the vote in parliament takes place later today. Investors anticipated Takaichi as the likely next premier after Ishin's backing. The yen last strengthened by 0.1% to 150.61 dollars, up from 150.61 in the previous session. Analysts expect Takaichi will be pro-stimulus, and against any further increases in interest rates. This is a negative for yens and bonds, but positive for stocks. The euro remained steady at $1.164925. The dollar index remained unchanged at 98.575. Due to U.S. rate cuts and safe-haven flows, gold prices were near records highs. Spot gold prices eased slightly to $4350 per ounce. This is just below Monday's record high of $4381.21.
Tumbling US gas rates show unstoppable, hurting manufacturers
For almost a. year, U.S. natural gas producers have actually slammed the brakes on. production as rates fall. However relentless output gains including. from oil companies that pump gas as an oil by-product have. released record supplies.
In the oil versus gas contest, gas manufacturers are losing. Some are shutting in wells, canceling projects or selling. themselves to rivals to avoid losses. Natural gas costs this. month was up to an inflation-adjusted 30-year low of $1.59 per. thousand cubic feet, benefiting customers of the fuel like. utilities, but hurting manufacturers who are costing nominal. rates as low as they were in the depths of the COVID-19. downturn.
No place is the discomfort of low-cost gas as evident as Denver-based. BKV Corp. In the last five years, it invested $2.7 billion to. get 4,000 gas wells and 2 gas-fired power plants. It. vowed $250 million to build a lots underground carbon capture. and storage websites to make its gas more climate friendly.
The nosedive in U.S. gas costs has actually stalled BKV's prepare for. a going public and scuttled the carbon joint endeavor. with Verde CO2 to combine its gas and power plants with carbon. sequestration. BKV last year directly prevented loan defaults with. a $150 million bailout by its parent.
Majority-owned by Thailand power giant Banpu Public Co., the. little-known BKV in 2016 began buying scores of U.S. gas wells,. taking castoffs from oil producers' Exxon Mobil, Devon. Energy and others.
We definitely wish to be the greatest natural gas. producer in the nation. That's my aspiration, BKV Chief. Executive Christopher Kalnin stated in an interview here in. December at its very first carbon-sequestration site.
BKV's earnings skyrocketed to $410 million in 2022 on strong. natural gas prices after Russia's intrusion of Ukraine spurred. substantial demand for exports of melted U.S. gas. The business. introduced a strategy to develop a U.S. variation of its Thai parent,. tying together gas and power. The strategy consisted of an IPO. to assist finance the gas-to-power growth and a complement of. carbon-burying wells.
CLIPPED WINGS
BKV fell back to earth under costs suffering from a. relentless unrelenting growth U.S. natural gas output. Its earnings fell. to about $79 million in its most-recently reported nine-month. duration.
U.S. gas firms in 2015 cut drilling 22% to stem the. gusher. However the flows keep coming: The U.S. will pump 105. billion cubic feet a day of gas this year, up 2.5 billion cubic. feet a day in the last year. That boost suffices to fuel. 12.5 million U.S. homes for a day.
In many industries, volume boosts are excellent. More. production equates to more revenue. Rising output has actually overwhelmed. efforts to curtail drilling and even demand from frigid. temperature levels, causing a price drop that knocked U.S. gas. just recently to less than a 3rd of 2022's typical $6.50 per. million British thermal systems. By contrast, benchmark WTI crude. prices fell simply 17%.
Oil prices have actually held steadier thanks to worldwide supply cuts. by significant OPEC producers and their allies.
Skyrocketing gas production, specifically from oil companies. who view gas as a byproduct of their output, has actually proven. reasonably insensitive to costs, stated Nicholas O'Grady, CEO. of U.S. shale gas explorer Northern Oil and Gas.
Gas producers have actually been reluctant to cut output deeply on. the potential customers of giant brand-new liquefied natural gas (LNG) plants. opening this decade, he stated.
LNG exports would drain pipes the excess gas supplies and should. return rates to levels that make gas lucrative to drill again. by 2025, O'Grady and BKV's Kalnin anticipate.
There are 4 U.S. jobs with export allows on the. drawing boards that would consume approximately 6.3 billion cubic feet. If they go ahead would be producing LNG later on this, of gas that. years.
The risk is that 3rd wave of brand-new LNG plants may be. delayed or lost permanently. President Joe Biden's administration. last month indefinitely paused reviews of brand-new gas-export. licenses, jeopardizing as much as 32 billion cubic feet daily. of future consumption.
U.S. natural gas producer Comstock Resources said. recently it would reduce the variety of rigs in operation and. suspend its dividend up until gas costs increase sufficiently, while. competing Antero Resources stated it would cut drilling and drop. task costs budget plan by 26%.
' BEST STORM'
BKV, short for Banpu Kalnin Ventures, started operations in. Pennsylvania in 2016 with a strategy to buy additional old gas. fields from huge oil companies, invest just enough to hold. production steady, await prices to rise and - just then -. invest in expanding production.
The moment appeared to show up in mid-2022. As U.S. gas. reached over $9 per thousand cubic feet, BKV's Kalnin. released a costly and enthusiastic growth strategy.
In July that year, he closed on a $750 million deal for. Exxon Mobil gas homes in North Texas. The exact same. month, he obtained a Temple, Texas, gas-fired power plant for. $ 460 million. Weeks later on, he followed that deal with a $250. million collaboration with Texas-based Verde CO2 LLC to build a. dozen carbon sequestration sites across the United States.
We didn't see rates collapsing like they did, said Kalnin. at the opening of his first carbon sequestration website in. December.
Kalnin, a former McKinsey specialist who spent his early. years in Thailand and later on worked for the nation's national. oil and gas business, hasn't quit on his gas-to-power empire.
( Gas costs) are establishing for another fly-up in the. second half of 2024, Kalnin said in December, indicating. forecasts for increasing LNG need.
There are micro windows for IPOs opening up, a. spokesperson included on Tuesday. We are hoping to stay ready for. when that micro window opens. Market performances for IPOs and. gas prices require to enhance, she included.
Associated gas, which comes out of wells together with oil,. pulled the carpet out from Kalnin's vision. More than a 3rd of. all U.S. gas production comes from manufacturers drilling for oil,. according to government price quotes. That figure is increasing as. wells develop and more gas turns up than oil.
BKV last year won a lifeline from its moms and dad, selling shares. to Banpu for $150 million to avoid breaching debt covenants. Most of the money was put into a debt service account.
You have this perfect storm. A warm winter season plus too. much gas supply, both main and associated, and now, possible. hold-ups to new LNG export allows, stated Blake London, a handling. partner of private equity fund Formentera Partners.
(source: Reuters)