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Gold drops from a record high, but still holds above $3200 due to tariff fears
Gold prices dropped from their record highs on Monday, after U.S. president Donald Trump excluded smartphones, computers, and other electronic devices from his tariffs. However, the uncertainty surrounding tariff plans kept gold prices above $3,200 an ounce, which is a significant level. As of 0852 GMT, spot gold fell 0.4%, to $3,222.49 per ounce. Bullion reached a record-high of $3,245.42 in the morning. U.S. Gold Futures dropped 0.2% to $3.238.50. The market sentiment improved this morning, after President Trump exempted electronics and smartphones from US Tariffs. "This has partially caused a drop in gold prices due to profit taking," said Zain Vwda, a MarketPulse analyst. Gold has traditionally been viewed as an investment that can protect against economic and geopolitical uncertainty. On Friday, the White House announced that smart phones and computers would not be subject to China's steep tariffs. Trump announced on Sunday that he will announce the tariff rate for imported semiconductors in the coming week. Vawda said that any drop in the gold price is likely to be only temporary. Gold is a safe haven asset that continues to be in demand, as a US-China agreement seems unlikely. Vawda also added that the falling US dollar is a factor in gold's appeal. Dollar-priced gold is now cheaper for foreign buyers. Gold's rally has continued, with a rise of over 23% this year. It surpassed the $3,200 barrier for the first-time on Friday. Bullion's price has been boosted by several factors including the economic uncertainty caused by Trump's tariff plans and central bank demand. Goldman Sachs has increased its year-end gold forecast to $3,700, citing stronger-than-expected central bank demand and heightened recession risks impacting ETF inflows. Spot silver remained at $32.27 per ounce while platinum gained 1% to $952.10. Palladium rose 2.2% to $935.38. (Reporting and editing by Shashesh Kuber in Bengaluru, Anmol Choubey from Bengaluru)
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BP discovers new oil off US Gulf Coast
By Sheila Dang BP, a UK-based oil company, announced on Monday that it had made a discovery of oil in the Far South Field in the U.S. Gulf of Mexico. The exploration well was located in Green Canyon Block 584, about 120 miles from the coast of Louisiana. The company stated in a release that both the original well and the sidetrack found oil. Preliminary data indicated a potential commercial volume of gas and oil. BP announced a radical shift in strategy in February, reducing planned investments in renewable energy to refocus its efforts on oil and natural gas production. By 2030, the company plans to increase production in Gulf of Mexico from 400,000 barrels of equivalent oil per day to 400,000 boepd. By the end of this decade, global production will reach 2.3 to 2.5 million barrels of oil equivalent per day (boepd). BP operates Far South, with a 57.5% share. Chevron has a 42.5% stake. BP plans to do more exploration of the ocean basin. It has approved the development of Kaskida, a complex geological formation called the Paleogene. The company plans to move forward with the second Paleogene project, Tiber.
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Spot prices drop on wind supply
On Monday, the strong gains in wind energy supply across the region put downward pressure on spot prices as they offset the growing demand and reduced solar power supply. LSEG data shows that the German baseload electricity for Tuesday at 0845 GMT was 67.50 Euros ($76.83). The French power of the day was 18.25 Euros/MWh. The prices were lower than the closing values of 103.75 and 68 euros, respectively, last Monday. Both contracts were traded on Friday, but for delivery Monday. Riccardo Paraviero, LSEG analyst, said: "Wind surges (again) on Tuesday painting a firmly negative outlook for German electricity prices." The wind generation will be strong during the morning and then decrease in the evening. He added that the strong growth will completely offset the rise in demand and decrease in solar supply. LSEG data indicated that the German wind output is expected to increase by 16.7 gigawatts to 22.1 GW while French output will rise by 5.9 GW up to 8 GW. LSEG data indicated that the German solar generation is expected to drop by 1.4 GW to 12.1 GW on February 2. On Tuesday, power consumption in Germany will increase by 1.9 GW up to 55.1 GW. In France, demand is expected to rise by 1.4 GW up to 43.4 GW. The French nuclear capacity increased by three percentage points to 74% as three reactors were brought back online. The German baseload power for the year ahead rose by 0.6%, to 81.20 Euros/MWh. In France, it was between 61.25 and 62.15 Euros. The benchmark carbon contract in Europe was up 1.7% to 65.89 euro per metric tonne. ($1 = 0.8786 euro) (Reporting and editing by Shailesh Kumar)
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Trade war worries persist despite oil rising on the back of China's rebounding imports
The oil prices rose on Monday, after Chinese data revealed a sharp rise in crude imports for March. However, concerns about the impact of the trade war between China and the United States on global economic growth weighed. Brent crude futures rose 6 cents or 0.09% to $64.82 per barrel at 0632 GMT. U.S. West Texas Intermediate Crude Futures were trading at $60.59 a barrel. This is up 9 cents or 0.15%. Data released on Monday showed that China's crude imports rose sharply in March compared to the previous two month and nearly 5% compared to a year ago. The increase was attributed to a rise in Iranian oil as well as a rebound in Russian deliveries. Brent and WTI are down about $10 per barrel since the beginning of the month. Analysts have also revised their oil prices forecasts downwards, as the trade conflict between the two world's largest economies intensified. Goldman Sachs predicts Brent will average $63 per barrel and WTI $59 per barrel for the rest of 2025. Brent is expected to average $58 in 2026 and WTI $55. Analysts led by Daan Stuyven wrote in a report that they expect global oil demand to rise by only 300,000 barrels a day in the fourth quarter 2025, given the weak growth outlook. They also noted that this slowdown will be most pronounced for feedstocks used in petrochemicals. BMI, an arm of Fitch Solutions cut its Brent price prediction to $68 a barrel from $76 for 2025, as they expect the slowing economy to reduce demand. BMI reported that the Brent price differential between December 2025-2026 also entered contango, as investors priced-in concerns about oversupply and lack of demand. A contango market is one where the front-month price is lower than that of future months. This indicates no shortage in supply. Beijing raised its tariffs against U.S. goods to 125%, retaliating to President Donald Trump’s decision to increase duties on Chinese products. The trade war is now more serious and could disrupt global supply chains. Trump granted exemptions from steep tariffs for smartphones, computers, and other electronics, largely imported from China. But on Sunday, he announced that he would announce the tariff rate on semiconductors imported over the next few weeks. The trade war has increased concerns that unsold exports may continue to drive down prices in China. "China's inflation data were a window to an economy not ready for a trade war." In terms of year-on-year comparisons, consumer prices dropped for the second consecutive month, while producer price fell by 30%. This was revealed in a Moody's Analytics weekly note referring to April 10 data. Baker Hughes reports that as companies prepare for possible demand declines, U.S. oil firms cut the number of oil rigs last week by the largest amount in a single week since June 2023. This is the third consecutive week the oil and gas rig count has been reduced. Chris Wright, the U.S. Energy Secretary, said that Trump's plan for pressure on Iran over its nuclear program could potentially support oil prices. Officials said that both countries had "positive" and constructive" talks on Saturday in Oman and agreed to meet again next week to discuss Tehran's rapidly expanding nuclear program. In a recent note, ING analysts led Warren Paterson stated that "this may help reduce some of the sanctions risk affecting oil markets if the talks continue to move in the right directions." (Reporting from Katya Golubkova and Florence Tan in Tokyo; editing by Sonali Paul.)
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Wood Group in the UK receives conditional bid by Sidara for $450 million cash
Wood Group announced on Monday that Dubai's Sidara had made a conditional offer for the British oilfield engineering and services firm. The proposal included 35 pence per share and an injection of up to $450 million in cash. Wood Group resumed discussions with Sidara in February, after the company had repeatedly rejected its approaches. Sidara had withdrawn their acquisition plans due to increased geopolitical risk and uncertainty on financial markets last year. Sidara’s latest offer values Wood Group at approximately 242 million pounds. This comes just before the deadline of April 17, when the Dubai-based engineering firm and consulting company was required to submit a formal bid. If such an offer were made, the British company would "be inclined to recommend" it to its shareholders. Wood Group projected that in February, after a turbulent period -- marked by problems within its Projects division, activist investors' pressure to pursue a sell, failed takeover efforts, and a strategic review -- it would experience another year of negative operating cash flow. Wood Group announced on Monday it is seeking to extend its debt facility and Sidara has made "significant progress" in its due diligence.
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London Copper pares gains due to concerns about US semiconductor tariffs
London copper prices lost their gains on Monday, weighed down with concerns about President Donald Trump's threats of tariffs against semiconductors. Meanwhile, hopes for Chinese stimulus helped to limit losses. As of 0404 GMT the benchmark three-month price for copper on the London Metal Exchange was up by 0.1% to $9,160 per metric tonne, after reaching its highest level in over a week. The Shanghai Futures Exchange's (SHFE) most traded copper contract rose by 1.5%, to $75,920 yuan per ton ($10,389.61). The dollar index dropped 0.4% against its competitors. The dollar is weaker, making commodities priced in greenbacks cheaper for buyers of other currencies. Trump announced on Sunday that he will announce tariffs for imported semiconductors in the coming week. He also said there would be some flexibility with certain companies. Trump's desire to reset the trade in semiconductors will probably result in a short-term exclusion of computers and smartphones from the reciprocal tariffs he imposes on China. BMI, an arm of Fitch Solutions, said that tariff threats are still a major concern for copper. Beijing's response, which could be a massive stimulus package, is likely to offset the losses. Last week, Chinese Premier State media reported that Li Qiang stated China needed to implement proactive macroeconomic policy and quickly roll them out, as "external pressures" had pressed on China's stabilisation. Investors await additional stimulus measures by China to reduce the impact of Trump’s tariffs. SHFE aluminium increased by 0.4% at 19,695 Yuan per ton. Zinc rose 0.5% at 22,465 Yuan. Lead gained 0.7%, reaching 16,885 Yuan. Nickel was up 1.5%, at 122760 Yuan. Tin advanced 2.5%, to 260480 Yuan. LME aluminium rose by 0.5%, to $2408.5 per ton. Lead rose by 0.2%, to $1918, while tin rose 2.1%, to $31,870. Zinc rose 0.4%, to $2661, and nickel increased 0.6%, to $15,155. $1 = 7.3073 Chinese Yuan Renminbi (Reporting and editing by Rashmi aich and Sumana Nandy in Bengaluru)
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Iron ore prices rise as investors balance upbeat China data with tariff worries
Iron ore futures traded in a narrow range Monday as investors weighed positive data from China, the world's largest consumer of iron ore against concerns about demand caused by an intensifying trade war between Washington and Beijing. The September contract for iron ore on China's Dalian Commodity Exchange ended the morning trading flat at 704 Yuan ($96.34). As of 0433 GMT, the benchmark May ore price on Singapore Exchange remained at $97.15 per ton. Analysts expected that the Chinese government would increase its stimulus program to protect it from the tariffs imposed on the country by U.S. president Donald Trump. However, better than expected loan data tempered those expectations. In March, new bank loans in China recovered more than expected, after a sharp decline the month before. Policymakers have pledged to increase stimulus in order to support the second largest economy in the world against an escalating US-China trade war. The better the data is, the less urgent it will be to reveal more stimulus measures, said a Chinese economist, referring specifically to loan data. He requested anonymity because he was not authorized to speak with media. Also, China's imports of iron ore fell in March compared to the previous month, reaching a 20-month-low, contrary to analysts' expectations that a recovery would occur as supply disruptions due weather eased. Coking coal and coke were both unchanged on the DCE. The benchmarks for steel on the Shanghai Futures Exchange moved within a narrow range as well. Rebar remained flat at 0.03%. Hot-rolled coils advanced by 0.31%. Stainless steel rose 0.7%. Wire rod fell 0.06%.
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China March rare Earth exports increase as Myanmar supply disruption makes buyers nervous
China's rare earth exports increased by 20.31% from March of last year as consumers from overseas booked more cargos in fear that prices would rise due to disruptions in supply from ongoing conflict in Myanmar, a major supplier. According to the General Administration of Customs, China exported 5,666.3 tons of minerals in the 17-mineral group last month. This compares to 4,710 tonnes in the same period in 2024 and 3,217 in February. Rare earths can be found in many products, including lasers, wind turbines, electric cars, and consumer electronics. China is the largest producer in the world. The data from the Customs showed that in the first quarter 2025, exports of rare earths increased by 5.1% compared to a year ago, reaching 14,177.6 tonnes. Exports are expected to drop in April as Beijing has halted the shipments of rare earths that were placed on a list of export controls last week. This could lead to shortages abroad as Chinese exporters wait to receive government licenses. Beijing announced that it would immediately restrict the export of seven categories medium and heavy rare Earths, including samarium and related items such as gadolinium and dysprosium. Neha Mukherjee is a senior analyst with Benchmark Mineral Intelligence. She said that China's new export controls were added to the already volatile supply of heavy rare earths (HREEs) due to disruptions caused in Myanmar. This puts more than 75% global medium and heavy REEs mined at risk, and causes short-term volatility. Mukherjee said that while stocks may be sufficient to cover the near-term need, they are only enough until the first half 2025. Concerns about export delays could also drive up prices. Already, China's spot prices of praseodymium-neodymium oxide Data from Shanghai Metals Market revealed that the average price per ton was 443,071 Yuan last month. This is 1.4% higher and 25.9% more than in February and March of 2024. Due to the issues in Myanmar, China's imports of rare earths fell by 42.16% in March compared to the same period last year. This is despite the fact that shipments of the existing inventory of rare earths to China resumed on March 27. Customs data revealed that the total imports for the first quarter was tons. This represents a 30.9% decline on an annual basis.
Official: Petrobras's plans resilient despite plummeting crude prices
A director of Brazil's state-run Petrobras said that the ongoing drop in crude prices was "scary", but the oil projects run by the company are resilient. The comments were made as Brazil's oil industry reacted to U.S. Tariffs imposed on last week.
No Petrobras project is going to be paralyzed. These are long-term investments. This is a joke if you compare it to the (market drop in) 2020. Sylvia dos Anjos told journalists in Rio de Janeiro that it was a time of instability.
Symone Araujo said that the lower price would not reduce interest in Brazil’s planned June auction of offshore oil block.
Araujo said that the break-even price for oil projects in Brazil is lower than crude's current price.
On Wednesday, oil prices fell to their lowest level in four years.
Brazil's Secretary for Oil, Gas and Biofuels Pietro Mendes said that the global tariffs, imposed last week by U.S. president Donald Trump, were damaging to Brazil's energy sector and energy transition. (Reporting and writing by Fabio Téixeira, Isabel Teles; editing by Brad Haynes & Rod Nickel).
(source: Reuters)