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OPEC's oil production increased in September, according to a survey
A survey released on Thursday found that OPEC oil production increased in September following an OPEC+ production agreement. This was mainly because of the United Arab Emirates' and Saudi Arabia's higher production. According to the survey, the Organization of Petroleum Exporting Countries (OPEC) pumped 28,40 million barrels of oil per day in August, an increase of 330,000 barrels per days over the revised total for the month of August. The United Arab Emirates, and Saudi Arabia, were the countries that saw the biggest increases. OPEC+ - which includes OPEC, Russia and its allies - is accelerating the production increases by beginning in October. This will allow a second level of cuts to be unwound ahead of schedule. Some members have to make additional cuts in order to compensate for overproduction earlier, which will limit the impact of the increases. According to an agreement between eight OPEC+ member countries covering September production, five OPEC-members - Algerian, Iraqi, Kuwaiti, Saudi Arabia, and the UAE – were required to increase output by 415,000 bpd, before the effects of compensation cuts totaling 170,000 bpd. According to the survey the actual increase of the five was 347, 000 bpd. Many outside sources place the output of Iraq and the UAE higher than what the countries themselves claim. Other estimates, like those from the International Energy Agency (IEA), say that they pump significantly more. The survey aims at tracking supply on the market. It is based upon data provided by LSEG (a financial group), information from companies that track flow, such as Kpler and information provided from sources within oil companies, OPEC, and consultants. (Also by Ahmad Ghaddar, Susan Fenton edited this article)
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IMF says Ecuador performing well on reforms, faces numerous challenges
The International Monetary Fund (IMF) said that Ecuador was meeting its targets for the expanded IMF loan program of $5 billion, but that it still needed to overcome challenges ranging from the volatility in oil prices to the domestic security issues that make capital market access difficult for this South American country. IMF spokesperson Julie Kozack said at a regular briefing to the press that the Fund worked with Ecuadorean officials to determine the timeline of the next review to unlock additional loan funding. The program was increased by $1 billion with an immediate disbursement of $600 million in July. Kozack stated that "Even though investors are now seeing Ecuador as less risky than before, it's still difficult for the country to gain access to international capital markets very soon." "The increased frequency of natural catastrophes, as well as a tense security situation, pose additional challenges to Ecuador." She said that it is important that Ecuador reform its fuel subsidy program to better target them towards the most vulnerable citizens of the country. Kozack stated that fuel subsidies are generally given to higher-income groups, and they can also lead to corruption and fuel theft. By reducing their scope, resources could be used for other important spending, such as more effective social safety networks. (Reporting and Editing by Bill Berkrot.)
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OPEC's oil production increased in September, according to a survey
OPEC'S SEPTEMBER OIL OUTPUT RAISES BY 330,000 BPD FROM August TO 28,40 MILLION BPDS, A SURVEY FINDING A survey released on Thursday found that OPEC oil production increased in September following an OPEC+ production agreement. This was mainly because of the United Arab Emirates' and Saudi Arabia's higher production. According to the survey, the Organization of Petroleum Exporting Countries (OPEC) pumped 28,40 million barrels of oil per day in August, an increase of 330,000 barrels per days over the revised total for the month of August. The United Arab Emirates, and Saudi Arabia, were the countries that saw the biggest increases. OPEC+ - which includes OPEC, Russia and its allies - is accelerating the production increases by beginning in October. This will allow a second level of cuts to be unwound ahead of schedule. Some members have to make additional cuts in order to make up for overproduction. This will limit the impact of the increases. According to an agreement between eight OPEC+ member countries covering September production, five of the members - Algerian, Iraqi, Kuwait, Saudi Arabia, and the UAE – were required to increase output by 415,000 bpd, before the effects of compensation cuts totaling 170,000 bpd. According to the survey the actual increase of the five was 347, 000 bpd. Many outside sources place the output of Iraq and the UAE higher than what the countries themselves claim. Other estimates, like those from the International Energy Agency (IEA), say that they pump significantly more. The survey aims at tracking supply on the market. It is based upon data provided by LSEG (a financial group), information from companies that track flow, such as Kpler and information from sources within oil companies, OPEC, and consultants. (Also by Ahmad Ghaddar, Susan Fenton edited this article)
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Ivory Coast awards 11 new mining licenses to boost exploration
Ivory Coast has announced that it has issued 11 new exploration permits for gold, copper and cobalt to both local and international mining companies. The world's largest cocoa producer is looking to attract more investment to its booming mining industry as it diversifies. Amadou Coulibaly, the government's spokesperson, announced the new permits after they had been approved by a cabinet on Wednesday. The Ivory Coast is positioning itself as an investor-friendly, stable mining destination, amid increasing regulatory uncertainty in Mali, Burkina Faso, and Niger where military juntas tighten control over mining assets. Eight gold exploration companies are included in the permits valid for four-years, including Resolute Exploration Cote d'Ivoire which is developing Doropo Gold Mine in northern Ivory Coast and Tieto mineral which operates the Abujar mine west of Abidjan, the economic capital. Three more exploration permits have been awarded in the areas of chrome, nickel, cobalt, manganese and copper. According to Mines Minister Mamadou Sangafowa Coulibaly, the gold production in Ivory Coast will increase from 10 tonnes in 2012 to more than 58 tonnes by 2024 and 62 tonnes by 2025. New mines, such as Lafigue, operated by Endeavour Mining are responsible for the increase. The government wants to reach 100 tonnes per year by 2030. According to the Professional Group of Miners of Cote d'Ivoire (a lobby group), the mining sector contributes 4% of GDP today, up from 1.5% a ten years ago. It has also attracted billions of dollars in investment. Canadian mining companies Barrick, Perseus Mining and Roxgold, as well as Fortuna Mining, operate in Ivory Coast. Coulibaly explained that the new permits are part of a strategy aimed at unlocking mineral potential, and diversifying the economy away from cocoa. (Reporting and writing by Bate Felix, Maxwell Akalaare Adombila, Editing by Robbie Corey Boulet and Elaine Hardcastle).
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Urenco receives US approval to enrich nuclear fuel at higher levels
Urenco USA announced on Thursday that it had received approval from the U.S. Nuclear Power regulator to enrich nuclear fuel to a maximum of 10% fissionable Uranium. This can be used for conventional reactors today and in many newer plants which could be developed within years. Urenco, an English, Dutch and German company with operations in New Mexico said that the new fuel is enriched to 10%, as opposed to the current fuel's 5% enrichment. It's called low-enriched uranium-plus, or LEU+. Why it's important Urenco stated that the fuel could enable longer operating cycles for today's light-water reactors, with fewer refueling interruptions, which could lower maintenance and operation costs. LEU+ can also be used as a feedstock in the United States to produce HALEU (high assay, low-enriched uranium), which will fuel new, smaller reactors using new cooling technology. HALEU can be enriched to up to 20%, though experts in non-proliferation recommend that it be enriched to only 10% to 12%. When will it be available? Urenco stated that the initial production of LEU+ would occur in 2025. The first deliveries to fuel fabricators are planned for 2026. Westinghouse Electric Company announced in April that it was the first company to load LEU+ in a U.S. nuclear reactor. It did so in Unit 2 of the Vogtle Nuclear Power Plant in Georgia. Westinghouse claims the fuel will extend fuel cycles, boost power production, and reduce plant operating costs. KEY QUOTE John Kirkpatrick is the managing director of Urenco USA. He said, "With LEU+, American reactor operators will be able to realize new gains in operation and efficiency that will support an even stronger performance from their existing reactor fleet. Advanced reactor developers will also have a reliable fuel option to fuel new designs." (Reporting and editing by Andrea Ricci; Timothy Gardner)
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Gold reaches record highs as bets on rate cuts and the US government shutdown increase demand
Gold prices reached a new record high on Friday, boosted by the expectation of a Federal Reserve rate cut in this month as well as safe-haven demand due to the ongoing U.S. Government shutdown. By 09:38 am, spot gold had risen 0.6% to $3,887 an ounce. ET (1011 GMT), following a session high of $3.896.49. U.S. Gold Futures for December Delivery rose by 0.4% to $3.911.80. In a low interest rate environment, gold, which is viewed as an asset of safety in times of economic and political uncertainty, flourishes. It has increased by 48% this year. Bob Haberkorn, RJO Futures' market strategist, said that people are buying gold when it dips. With the government shut down the only way gold can go up is upwards. The U.S. shutdown continued for a second consecutive day on Thursday. This threatened thousands of federal government jobs and could delay the release of key economic data, such as the closely-watched non-farm payrolls report (NFP), due Friday. Also, the weekly unemployment claims report, which is a crucial indicator of the health of the labor market and was due to be released on Thursday, wasn't released. The ADP National Employment Report released on Wednesday showed that private sector employment in the United States fell by 32,000 last month, after August's decline was revised downwards. According to CME FedWatch, traders are pricing in an almost certain 25-bps rate cut for this month. "With trade tensions, tariffs, and geopolitical hotspots not showing any signs of resolution, there is still a favorable environment for the demand for safe havens." The central banks will not abandon their current buying programs, especially given the long-term strategies in place," StoneX stated in a Thursday note. Gold is Goldman Sachs’ most-conviction commodity recommendation. The bank stated in a Wednesday note that the risks of its forecasts for gold prices at $4,000/oz by mid-2026, and $4,300/oz by December 2026 have increased. Other than that, silver spot rose by 0.8%, to $47.70 an ounce. Platinum increased 1.4%, to $1,579.05, and palladium remained flat at $1244.75. (Reporting and editing by Noel John in Bengaluru, John Biju)
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OPEC and China are the triple whammy for uncertainty in crude oil: Russell
Crude oil prices have been driven primarily by the unwinding OPEC+ production cut, China storage flows, and geopolitical tensions this year. This is likely to continue for the foreseeable. It is important to understand the factors that influence the market. It is impossible to predict with accuracy the future of these factors. Forecasting the market is a difficult task for the crude oil industry because all three factors are unpredictable and can change rapidly. The Energy Markets Forum, held in Fujairah (the hub for oil storage and shipping in the United Arab Emirates) this week, was a place where participants and attendees could not help but notice the contradiction. The level of uncertainty about the future two or three quarters is marked. Prices tend to move in opposite directions depending on the three factors that currently shape crude markets. It is not certain whether global demand will be able to absorb this extra oil. The situation is further complicated because the increase in exports of the group does not match the permitted increases in production. Since April, when the group began to ease production restrictions, analysts and industry sources estimate the eight OPEC+ members have produced about three quarters of the additional oil output they targeted. The market is still waiting for 500,000 bpd or 0.5% of the global demand. The lifting of OPEC+'s production quotas is actually a positive for the prices. The market may not react strongly if the eight OPEC+ member countries agree to increase their production quotas at a weekend meeting, as they wait to see what extra oil is actually available. CHINA STORAGE China's storage of crude oil is seen as a positive factor, at least for the short-term. It has absorbed any excess crude in recent months and helped to stabilize the benchmark Brent futures price in a tight range between $65 and $70 per barrel. China does not disclose the amount of crude oil flowing into strategic and commercial storages. However, the surplus can easily be estimated by subtracting the volume processed by refineries and the total of imported and domestically produced oil. According to this, China has likely been building up its stockpiles at least by 500,000 bpd this year. It is hard to predict, given the lack transparency, whether China will build up its inventories or if they will reduce them. Price is a good predictor, because China has a history of purchasing extra crude oil when prices are low and drawing from its inventories when they rise. LSEG Oil Research estimates that China's crude oil imports fell to 10.83 million bpd, down from 11.65 millions bpd, in August. This is the lowest level since February. Oil prices rose in June, during the conflict between Israel & Iran. This is when September cargoes were arranged. The short conflict between Israel, Iran and Syria also serves to remind us that geopolitics has played a larger role in this year and remains an unpredictable factor. The trade wars started by Donald Trump have created economic uncertainty, as well as tensions in the Middle East. These events will also have an uncertain impact. In the case of Russia, damage to its refineries will likely reduce its refined fuel exports but increase crude oil shipments, which would lead to higher refining margins. Price volatility can be caused by uncertainty, but market participants may also become cautious and not push as hard in one direction or the other while they wait for hard data to determine which factor will win. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, who is also an author. (Editing by Jan Harvey).
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S&P 500 Index to reach record highs as rate-cut betting offsets shutdown concerns
On Thursday, the benchmark S&P 500 is expected to open at an all-time high, thanks to renewed expectations of interest rate reductions. Traders are bracing for a session that will be data light and with few new catalysts. Investors have been able to ignore the uncertainty of the U.S. Government Shutdown because they are anchored to a Federal Reserve that is dovish. The labor market is at the core of the Fed’s policy outlook, and it's a crucial part of its dual mandate. Investors are increasingly relying on alternative data sources as the government shutdown has created a data vacuum. Art Hogan is the chief market strategist for B. Riley Wealth. He said, "I believe they will consider the fact that there's a weak trend in the job market, which they are trying to defend at this time." According to a Challenger, Gray & Christmas report, U.S. employers have announced fewer layoffs since September, but their hiring plans for this year are the lowest they've been since 2009. The report was released a day following a Wednesday ADP National Employment Report that showed a lower than expected level of employment. These reports are not as important as those from the Labor Department. They fill the gap left Thursday by the weekly unemployment claims report. This is a key indicator of labor market strength and was the first data to be affected by the shutdown. The recent data has been interpreted by traders as being enough to force the Federal Reserve towards a rate cut of 25 basis points at its next policy meeting. At 8:23 a.m. At 8:23 a.m. ET, Dow E Minis were down by 7 points or 0.01%. S&P 500 E Minis were up by 19 points or 0.28%. Nasdaq E minis were up by 144.25 or 0.58%. On Wednesday, the S&P 500 index and blue-chip Dow closed at record highs. In the past, shutdowns of government agencies have not had a significant impact on equity market. Investors are looking for signs of monetary ease, and the data vacuum is a risk. Hogan stated that the Fed would be more inclined to reduce rates the longer the shutdown continues. Investors will also be analyzing the comments of Dallas Fed President Lorie Lo Logan on Thursday. Tesla's stock rose 1.9% ahead of the release of its quarterly delivery report. Shares of Lithium Americas, listed on NYSE, fell 4.7% following a downgrade by Canaccord Genuity. Equifax and TransUnion credit bureaus fell by 10.2% and 10%, respectively, following the launch of a FICO program which could give mortgage lenders access to scores without having to rely on bureaus. FICO was up by 20.3%. Advanced Micro Devices rose 3.3% following a report that Intel had begun early discussions to add Advanced Micro Devices as a customer. (Reporting and editing by Niket Nishant and Sukriti gupta, both in Bengaluru)
UK's Mothercare partners with Reliance to strengthen South Asia presence
Mothercare formed a joint endeavor with Dependence Brands Holding UK, enhancing its existence in the South Asian area, and said it re-financed its existing debt centers with Gordon Brothers.
Reliance Brands, an unit of Dependence Industries Ltd. , got a 51% stake in the JV that owns the. Mothercare brand name and associated copyright in India,. Nepal, Sri Lanka, Bhutan and Bangladesh for 16 million pounds. ($ 21 million), with Mothercare keeping the staying 49%.
Earlier in September, Dependence partnered with Israeli. innerwear maker Delta Galil as part of its expansion in India's. garments market, aiming to double its retail organization within the. next 3 to 4 years.
Mothercare stated on Thursday it also secured new financial obligation. centers of 8 million pounds, assisting the London-listed. business decrease its financial obligation.
Decrease in the required facility size, funded by the. development of the joint endeavor, and the resulting considerably. minimized money interest expense, greatly improves our versatility for. FY25 and beyond, Clive Whiley, chairman of Mothercare, stated in. a declaration.
(source: Reuters)