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Nigeria's NNPC targets an industrial boom in the country's North as the gas pipeline nears completion
After briefing President Bola Tinubu on Sunday, the chief executive of Nigeria's State Oil Company said that it was betting on a delayed gas pipeline to ignite an industrial revolution for the north. Bashir Ojulari is the Group CEO of NNPC Ltd. He told reporters the company had completed the welding of the main line for the $2.8 billion Ajaokuta - Kaduna - Kano (AKK), including the crucial River Niger crossing – a feat which has slowed progress for years. This milestone will allow the pipeline to be connected?early in the next year. According to Ojulari, this move "will bring gas in its?full?form? into the northern part Nigeria." Ojulari stated that this isn't just about energy. "It is a matter of industrialisation, i.e., fertiliser plants, gas-based industries, and power generation in Kaduna and Kano. We are expecting to see industrial parks sprout up." AKK, which was first conceived of in 2008, plays a central role in Nigeria's desire to harness its vast reserves of gas for economic growth. The completion of the AKK pipeline could revolutionize northern Nigeria, where a lack in energy infrastructure and chronic power shortages have hindered manufacturing for decades. Ojulari revealed NNPC production targets.?Oil production is expected to increase to 1.8million barrels per day - up from 1.7million this year - in 2026. Gas production will also continue to grow. He credited the structural reforms made under the Petroleum Industry 'Act, which enabled NNPC operate as a profitable company and no longer rely on 'federal allocations. Ojulari stated that President Tinubu reiterated his call for $30 billion of new investments by 2030, and a 2 million barrels a day oil production by 2027. (Reporting and Writing by Ben Ezeamalu, Editing by Lincoln Feast.
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Asian stocks are rising, and precious metals have reached new records due to Fed rate cuts.
On Monday, Asian stocks rose to their highest levels in six weeks, and the dollar was near its lowest level in three months, on the expectation that the Federal Reserve will cut?interest rates in the coming year. This has also led to a strong rally in precious-metals. Silver rose above the $80-per-ounce mark?for a?first time? in volatile trading Monday. Platinum and palladium also fell after reaching all-time-highs. Gold fell 0.45%, but it has broken record highs several times this year. It is now on course to have its largest annual gain since 1979. Charu Chanana is the chief investment strategist for Saxo. She said that precious metals were lifted by a powerful combination of rate-cutting tailwinds as well as hedging geopolitical uncertainty and fiscal uncertainty. "Add to that supply concerns and the movement has become parabolic. But the near-vertical rise in late-year prices, particularly for silver, raises the possibility of increased volatility. The risk near-term is technical, and based on positioning." Chanana stated that the big picture of precious metals is still?positive. This is due to fiscal and geopolitical uncertainty, as well as ongoing demand for diversification. She said that any pullbacks could be viewed as an opportunity for long-term investment to rebuild their exposure. Investors were re-focused on geopolitics after U.S. president Donald Trump met Ukrainian president Volodymyr Zelenskiy. Although no agreement has yet been reached to bring peace to Ukraine, the talks were positive. China's military deployed army, navy, air force and artillery around Taiwan for "Justice Mission 2025", as the island pledged to defend democracy. STOCKS END THE YEAR STRONGLY In the stock market,?MSCI?s broadest Asia-Pacific index was 0.5%?? higher in a strong week to end the year. The majority of Asian markets are up double digits this year, as investors have shrugged off Trump’s tariff salvos in favor of AI. South Korea's Kospi climbed 1.7% to reach a two-month high, bringing its annual surge to 75%. It is on track to achieve its biggest gain since 1999. Japan's Nikkei fell 0.5% but is on track to increase by about 27% for the year. Taiwan stocks also rose 1%, reaching a new record, and are poised to rise 25% annually. As Europe returns from its Christmas and Boxing Day holiday, the buoyant mood is expected to continue. European futures are pointing towards a higher opening. The minutes of the Fed’s last meeting, due Tuesday, will be the focus for investors during the holiday-shortened week. The U.S. Central Bank cut rates this month, and forecast only one more for next year. However, traders have priced at least two additional cuts. FRAIL?YEN FIND SUPPORT On Monday, a summary of slightly hawkish opinions from the Bank of Japan policy meeting held in December was released. The Japanese yen rose 0.2% to reach 156.13 against the U.S. Dollar. The summary showed that many members of the BOJ board felt the need to increase the policy rate. BOJ raised interest rates earlier this month, a move that was well-telegraphed. However, the markets were disappointed by comments made afterwards which suggested that the central bank wasn't in a hurry to raise again. The yen was impacted and traders were worried about intervention after officials in Tokyo issued strong verbal warnings. The dollar has been under pressure due to the prospect of the Fed lowering rates next year. A new Fed chair who may be dovish or willing to lower interest rates is also looming large. The dollar index (which measures the greenback versus six rival currencies) was stable at 98.13. It is on course for a 9.5% decline for the year. This will be its steepest drop since 2017.
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Iron ore prices rise as China promises more 'proactive fiscal policies' in 2026
Iron ore prices rose on Monday, as the top steel-making ingredient's demand was boosted by China's promise to adopt more "proactive fiscal policies" in 2026. The most-traded iron ore contract for May on China's Dalian Commodity Exchange closed morning trade at 800 yuan (114.12 dollars) per metric ton after reaching its highest level at 803 yuan at the start of?the session. As of 0343 GMT, the benchmark January iron ore traded on Singapore Exchange rose 1.32% to $106.05 per ton. The price of iron ore in January hit its highest level since November 27 at $106.3. China's Finance Ministry said on Sunday that fiscal policies would be more proactive next year, and China will boost consumption and actively expand investment in new productive forces. Everbright Futures, a Chinese broker, said that iron ore prices were also supported by "some steelmills resuming production after completing annual smelter maintenance" which meant a greater demand for feedstocks including iron ore. Mysteel, a consultancy, said that "improved?margins due to lower production costs" supported iron ore prices. The easing of concern in the real estate market was also a temporary boost to sentiment. China developer Vanke’s bondholders had approved a proposal by the state-backed company to extend the grace period of repayment for a 3.7 billion yuan loan. Coking coal and coke both rose by 1.13% and 0.611% respectively. The Shanghai Futures Exchange steel benchmarks were mixed. The rebar rose by 1.09% and hot-rolled coils increased by 0.98%. Stainless steel remained unchanged, while wire rod dropped 2.2%. $1 = 7.101 Chinese Yuan (Reporting and editing by Harikrishnan Nair; Amy Lv and Ruth Chai)
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Silver dips after breaking $80/ounce
As investors took profits and geopolitical tensions eased, precious metals fell on Monday. Silver traded lower after breaking $80 an ounce earlier that day, and gold was a little less than record highs. As of 0242 GMT spot gold was down by 0.4% to $4,512.74 an ounce after reaching a record-high of $4,549.71 last Friday. U.S. Gold Futures for February Delivery lost 0.4% per ounce to $4,536.40 Silver spot fell?1.3%, to $78.12 an ounce. It had earlier reached a session high of $83.62. Tim Waterer, KCM Trade's Chief Market Analyst, said that a combination of?profit-taking and apparently productive talks between Trump & Zelensky about a possible peace deal has put gold and?silver in the rear view mirror. Donald Trump, the U.S. president, said that he and Ukrainian president Volodymyr Zelenskiy are "getting closer" to an agreement?to?end?the war in Ukraine. Silver is up 181% in the last year, surpassing gold. This was due to its status as an important U.S. Mineral, shortages of supply, and low stocks amid a rising industrial demand and investment. Bullion is also on a spectacular rally for 2025. It has risen 72% and broken multiple records. The gold price has been boosted by a "cocktail" of factors including the expectation of more U.S. interest rate cuts, geopolitical tensions and central bank demand as they move away from U.S. securities and dollars. Waterer stated that $5,000 was a "viable" target for gold in the coming year, provided the next Federal Reserve Chairman added a more dovish tone to Fed policy. Waterer stated that "rate?cuts, a continued robust industrial appetite and supply?shortages combined with a rise in silver to $100 by 2026" could be the catalyst for this. The traders still expect the U.S. to cut interest rates twice next year. In a low interest rate environment, non-yielding investments tend to perform well. Palladium fell 8%, to $1,771.99 an ounce. Spot platinum dropped 0.4% to $2,441.20 after reaching a record high of $2478.50 the previous day. (Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)
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Copper trades near $13,000 after Christmas in a record-breaking catch-up.
The sharp rally that occurred in Shanghai last week spilled over into a global market that was curtailed by the Christmas holiday. As of 0250 GMT the benchmark three-month copper on the London Metal Exchange had risen 5.86%, to $12,875 a metric ton, after having set a session record of $12960. After briefly touching a record high of 102.660 yuan, the most active copper contract at the Shanghai Futures Exchange surged 3.43%, to 101.480 yuan. The London benchmark copper contracts?is closing with gains made by the Shanghai contract while the London exchange was closed for the Christmas holiday. Shanghai copper rose 5.81% in the last week while London copper gained a gain of 1.93%. The low prices due to the supply shortage led a group of China's leading smelters to decide on Thursday not to provide guidance for copper concentrate processing charges in the first quarter of 2019. Meanwhile, China announced on Friday that it would limit its copper production capacity in the next 5-year plan to support gains in Shanghai copper. The traders who bet on the Fed cutting interest rates by two more times also supported the Monday rally. They are waiting for the minutes of the Fed's December meeting to be released on Tuesday in order to get clues about how the policy makers plan on balancing the risks of both inflation and a weakening labour market. All metals experienced a year-end rally on Monday. Aluminium rose by 0.96% on the London market. Zinc gained 1.33%. Lead advanced 1.15%. Nickel advanced 1.23%. Tin climbed by 2.01%. Aluminium, zinc, lead, nickel, and tin all advanced in the SHFE base metals.
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Investors weigh Middle East tensions as they consider oil gains
Investors weighed Middle East tensions which could disrupt supply and a major obstacle remains in the Russia-Ukraine talks. Brent crude futures were up?56 -cents or 0.92% to $61.20 a barrel at 0236 GMT. U.S. West Texas Intermediate crude rose 51 cents or 0.9% to $57.25. Both benchmark prices dropped more than 2% Friday, as investors considered a global glut of supply and the possibility that a Ukraine peace deal could be reached ahead of weekend discussions between U.S. president Donald Trump and Ukrainian President Volodymyr Zelenskiy. The geopolitical tensions are still high, and Russia and Ukraine continue to strike each other's energy infrastructure. "The Middle East?has?also been unsettling recently, with Saudi Air Strikes in Yemen and Iran claiming?the country was in a?full-scale conflict' with the U.S. Europe and Israel. Yang said that this may be the reason for market concern about possible supply disruptions. U.S. president Donald Trump stated on Sunday that both he and Ukrainian president Volodymyr Zelenskiy are "getting closer, perhaps very close" to a deal to end the conflict in Ukraine. However, both leaders admitted that many of the most difficult details remain unresolved. Both leaders held a press conference together late on Sunday afternoon, after meeting at Trump's Mar-a-Lago Resort in Florida. Trump stated that it would be obvious "in a matter of 'weeks'" if the negotiations to end this war were successful. Tony Sycamore, IG analyst, said that while the peace talks were positive there was still a'significant obstacle' in the form of territorial control for the?Donbas area. WTI will likely trade in a range of $55 to $60, with an eye on the?U.S. Sycamore stated in a report that enforcement actions would be taken against Venezuelan oil exports and the fallout of a U.S. strike on ISIS targets in Nigeria. Nigeria produces approximately 1.5 million barrels / day. Reporting by Sam Li in Beijing and Ryan Woo; Editing by Raju Gopikrishnan, Thomas Derpinghaus
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Asian stocks are rising, and precious metals have reached new records due to Fed rate cuts.
On Monday, Asian stocks reached six-week highs, and the dollar was near its lowest level in nearly three months. This is due to expectations that the Federal Reserve will cut interest rates in the coming year. It has also led to a strong rally in precious materials. Silver, platinum and palladium all fell after reaching record highs. Gold fell by nearly 1%, but it has broken record highs several times this year due to dollar weakness, safe haven demand and bets on rate cuts. Charu Chanana is the chief investment strategist for Saxo. He said that precious metals were boosted this year due to a powerful combination of rate-cutting tailwinds, and hedging geopolitical, fiscal, and economic uncertainty. "Add in supply concerns and the move has become parabolic." Silver's near-vertical rise in late-year also increases the risk of increased volatility. The risk is primarily technical and position-driven in the near-term. The big picture for precious metals, however, still looks structurally favorable with eased rates ahead, fiscal unrest and geopolitical uncertainty, and continuing diversification demand. Chanana stated that any pullbacks could be viewed as "opportunities by long-term investors" to rebuild their exposure. Investors are once again focused on geopolitics after U.S. president Donald Trump stated on Sunday that the United States and Ukraine's Volodymyr Zelenskiy "are getting a lot closer, perhaps very close" to a deal to end Ukraine's war. Stocks have a strong year-end MSCI's broadest Asia-Pacific share index was 0.27% up, reaching its highest level since October 3, in a positive start to the final week of the calendar year. The index is up over 25% in the last year. This was boosted by tech stocks, as AI mania took hold of investors. South Korea's Kospi climbed 1.5% to reach a near two-month high, bringing its annual gains to 74%. This is on track to be its biggest gain since 1999. Japan's Nikkei fell 0.4% while Taiwan stocks rose to a new record high. The minutes of the Fed’s last meeting, due Tuesday, will be the focus for investors during the holiday-shortened week. The U.S. Central Bank cut rates this month, and forecast just one further cut for next year. However, traders have priced at least two additional cuts. Tony Sycamore is a market analyst for IG. He said that markets would be scouring the minutes to gain deeper insight into the debates of the committee on the balance 'of risks and timing future easing. Sycamore stated that the focus will shift to data on the labour market, including non-farm payrolls. If these reports show unambiguous weakness in the labour market, it will increase likelihood of the Fed cutting?rates 25bp during its January FOMC Meeting. FRAIL YEN SUPPORT The Japanese yen rose 0.2% on Monday to 156.13 U.S. dollars after a summary of slightly hawkish opinions from the Bank of Japan policy meeting held in December was released. The summary revealed that many members of the BOJ board felt the need to increase the policy rate. BOJ raised interest rates in a well-telegraphed decision earlier this month, but the markets were disappointed by comments made afterwards which suggested that the central bank wasn't in a hurry to raise again. This weighed down on the yen, and traders were worried about intervention after officials in Tokyo issued strong verbal warnings. The yen is still close to its 10-month low, 157.9 yen per dollar (which it reached in November), and the risk of intervention remains as investors reduce their long Yen positions. The yen is still close to the 10-month low of 157.9 per dollar, which it reached in November. The dollar has been under pressure due to the prospect of the Fed lowering rates next year. A new Fed chair who may be dovish or willing to lower interest rates is also a threat. The dollar index (which measures the greenback versus six rivals) was 0.08% higher at 97.953, and is on course for a 9.7% decline for the year. This will be its steepest drop since 2017.
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Investors weigh Middle East tensions as they consider oil gains
Investors weighed Middle East tensions which could disrupt supply and a major obstacle remains in the Russia-Ukraine talks. Brent crude futures rose 57 cents, or 0.94%, to $61.21 a barrel at?0112 GMT. U.S. West Texas Intermediate crude (WTI), however was up 54 cents, or 0.95%. The benchmark prices of both oil and gold fell by more than 2 percent on Friday, as investors considered a global glut of supply and the potential for a peace agreement in Ukraine ahead of weekend negotiations between U.S. president Donald Trump and Ukrainian President Volodymyr Zelenskiy. The main reason for the price increase is because geopolitical tensions are still high, and Russia and Ukraine continue to strike each other's infrastructures over the weekend. The Middle East is also unrest, with Saudi airstrikes in Yemen and Iran claiming that the country is at a "full-scale battle" with the U.S. Europe and Israel. This may be the reason for market concerns over potential supply disruptions, said Yang An of Haitong Futures. U.S. president Donald Trump stated on Sunday that both he and Ukrainian president Volodymyr Zelenskiy are "getting closer, perhaps very close" to a deal to end the conflict in Ukraine. Both leaders, however, acknowledged that many of the most difficult details still remain unresolved. Both leaders held a press conference together late on Sunday afternoon, after their meeting at Trump's Mar-a-Lago?resort. Trump stated that it would be evident "in a couple of weeks" if the negotiations to end the war are successful. Peace talks were positive. Tony Sycamore, IG analyst, said that there was no breakthrough and a major obstacle remains - the territorial control of Donbas. IG stated in a report that crude oil will trade in a range of $55 to $60, with an eye on US enforcement actions against Venezuelan shipments, and any possible fallout from US military strikes against ISIS targets, in Nigeria. Nigeria produces approximately 1.5 million barrels a day. (Reporting from Sam Li and Ryan Woo, Beijing; Editing done by Raju Gopalakrishnan).
Hess-Chevron merger vote appears ripe for narrow approval
Hess Corp CEO John Hess has till Tuesday to stop a disobedience by investors over his handling of what could end up being one of the largest mergers in oil industry history: a proposed $53 billion sale of the oil manufacturer to Chevron Corp.
. Hess, 70, has actually invested the past month visiting or calling dozens of investors to collect support. The sale appeared all but specific last fall and Hess still appears poised to win, based upon ' interviews with big financiers. But support has insinuated recent weeks with more investment funds voicing issues about the offer.
A prolonged U.S. federal regulatory review and a surprise arbitration challenge from Exxon Mobil have put about 40% of shares exceptional on the fence, interviews reveal.
That could make it harder for Hess to get more than 50% of the 308 million shares exceptional to win approval, even though he can rely on his family shares together with other directors and management, for about 10%.
Hess has lost about $5 billion in market price considering that the offer was revealed. Every quarter the merger is delayed, its shareholders lose the possibility for a dividend payment from Chevron -- a significant reward because Chevron's dividend is 4 times larger than the Hess payment.
This is the mom of all embarrassments, said a. London-based financier who declined to be named, adding that if. Hess shareholders approve this deal, chances will fade for a. higher bid.
TIGHT SCOREBOARD
Three companies - HBK Capital Management, D.E. Shaw & & Co, and . Pentwater Capital Management - have stated they are not ready to. offer their go on. Together they hold practically 6% of Hess.
Another 3 financiers submitted lawsuits to delay or block the. vote, backed by a flood of letters to Hess management. complaining it stopped working to reveal legal and regulatory concerns. that could postpone the transaction by approximately one year.
6 big investors who talked with under condition. of privacy projected firms holding about 40% of the business's. stock have actually chosen or are highly considering staying away,. essentially a no vote.
The longer this takes, the more I would start to concern. the worth proposition of this merger, said Roy Behren,. co-president of Westchester Capital Management, which holds $317. million in Hess shares and is considering an abstention.
The delays have shrunk anticipated profits for arbitrage. funds that caught Hess shares after the offer was announced. betting it would close in the very first quarter. Fayez Sarofim & & Co, Invesco and Barrow Hanley which hold some. 3% of exceptional shares worth about $1.5 billion, are expected. to vote yes, according to individuals familiar with the matter. The. three firms declined ask for remark. Prominent proxy consultant Institutional Investor Providers. ( ISS) has actually suggested abstention to provide more time for information. of the arbitration case to emerge. Competing Glass Lewis,. advised a vote in favor, saying the Chevron deal benefits are. noise and offer Hess investors a premium.
Leading investment company Vanguard Group, with 10% of Hess shares,. holds the biggest private stake. Votes of its portfolio. supervisors could swing the result. Lead decreased to divulge. its vote.
EXXON AS POSSIBLE SPOILER
This year, Exxon and partner CNOOC Ltd filed an arbitration. case declaring they have an initially right of rejection to buy Hess'. Guyana possessions. Chevron and Hess say a right of rejection does not. apply to sale of the whole business. If Exxon's arbitration. is successful, Chevron could walk away from the deal without paying a. separate fee.
In recent private conferences, John Hess informed investors he did. not understand Exxon's end video game with the arbitration. If Exxon. is successful, Hess and Chevron say they would call off the deal, and. Hess said this would suggest Exxon could not exercise its right of. initially refusal on the Guyana assets.
If the arbitration prospers and Chevron walks away, Hess. would have couple of alternate purchasers given the pre-emption right to. any future deal, stated Biraj Borkhataria, an energy expert with. researcher RBC Capital Markets.
Chevron sorely needs the offer to stay up to date with competing Exxon,. which this month closed its $60 billion acquisition of shale. producer Pioneer Natural Resources.
The lucrative Guyana oilfields from Hess would help Chevron. hedge geopolitical threats related to TengizChevroil task. in Kazakhstan, which moves the majority of its oil throughout Russia to a. Black Sea port. It would likewise help balance overruns at Chevron's. Australian melted natural gas (LNG) jobs, hit by labor. and operating troubles.
A spokesperson said Chevron looks forward to Hess obtaining. an effective investor vote and completing the deal on. the terms of our merger arrangement. Last month, CEO Michael. Wirth stated Chevron would remain in good shape regardless of the. acquisition.
Some Hess investors wonder if Exxon would make a. higher deal for the Guyana assets than what they would get from. Chevron's quote for the company. There are no legal impediments to. an Exxon offer before Tuesday, but Exxon has stated it wished to. have its rights over the Guyana asset affirmed before making any. decision on a quote.
Exxon has likewise said it would not look for to obtain Hess as a. whole.
I don't see how Exxon can bid
(source: Reuters)