Latest News
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Oil prices fall on fears of weak US demand and oversupply
The oil prices fell a little on Thursday due to a weakening demand in the United States, and a general oversupply risk. This was in contrast to the concerns over the attacks in the Middle East as well as the Russian war in Ukraine. Brent crude futures fell 14 cents or 0.21% to $67.35 a barge by 0433 GMT. U.S. West Texas Intermediate Crude futures dropped 15 cents or 0.24% to $63.53. The benchmark contracts increased by more than $1 on Wednesday, following Israel's attack the day before on Hamas leaders in Qatar. Poland also scrambled their own air defences and NATO to shoot down suspected Russian Drones that had entered its airspace while an attack was being carried out on western Ukraine. These gains continued the upward trend in oil prices that has been going on for most of this month, after they reached a low of three months on September 5. The market has now turned its attention to the supply-and demand balances. Rising oil stocks, declining producer prices, and a slower labour market all point to a softening U.S. economic. The Energy Information Administration reported that U.S. crude stocks rose by 3.9 millions barrels during the week ending September 5. This was against the expectation of a drawback of 1 million barrels. Gasoline inventories also increased, adding 1.5m barrels against an expectation of a drawback of 200,000 barrels. Due to the weaker economy, it is expected that U.S. Federal Reserve will cut interest rates in the next week. Stephen Brown, Capital Economics' deputy chief economist in North America, wrote in a report that the FOMC was likely to vote next week for a 25bp rate cut due to the improving labour market. However, a rare triple dissension in favor of a 50bp increase could grab the headlines. On Thursday, the European Central Bank is expected to keep its interest rate unchanged. On the supply-side, the Organization of the Petroleum Exporting Countries (OPEC+) and its allies decided on Sunday to increase production starting in October. The increase is smaller than some previous months, but it still adds to the weakness of the oil market. The EIA announced this week that oil prices will drop dramatically in the months to come as rising production will lead to a large build-up of oil inventories. Eurasia Group said that despite lower oil prices and stagnant oil demand growth, oil producing countries, led by OPEC+, have been adding barrels. This suggests an imbalance will likely form by 2025, which will push the market to oversupply, and drive crude oil prices even lower," Eurasia Group consultant stated in a report. (Reporting and editing by Tom Hogue, Edwina Gibbs and Katya Glubkova)
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First Foundation Up at 496MW Offshore Wind Farm in France
Eoliennes en Mer Dieppe Le Tréport (EMDT), a joint venture Ocean Winds, Sumitomo Corporation, and Banque des Territoires, has installed the first wind turbine foundation for the 496 MW offshore wind farm, being built in Normandy.The 496 MW offshore wind farm is located 17 km off Dieppe and 15.5 km from Le Tréport.Once fully operational, it will generate electricity equivalent to the annual consumption of about 850,000 people, roughly half the population of the Seine-Maritime department.The first steel jacket foundation was installed on September 9 by the vessel Innovation, operated by Belgium’s DEME Group, following delivery from Cherbourg.Measuring 48 and 55 meters in height, the steel jacket foundations are positioned on piles previously driven into the seabed as an essential step before the installation of the future wind turbines.The foundations were manufactured in Spain by Navantia Seanergies and transported by the vessel Seaway Albatross.The milestone follows the installation of the offshore substation earlier 2025. Foundation works will continue in multiple phases through 2026 before the installation of 62 wind turbines, Ocean Winds said.Ocean Winds Installs Substation for 496MW French Offshore Wind Farm
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Floating Offshore Wind Test Center Planned for Japan
Japan aims to start planning a national floating wind test centre next year, a senior industry official said, vowing to pursue a path of wind power growth despite a recent setback when Mitsubishi quit three projects.Mitsubishi-led consortia 8058.Tdropped plans last month to build 1.8 gigawatt (GW) in three offshore windmills won in Japan's first major state auction in 2021, dealing a blow to the sector seen as key to cutting dependence on imported fuels."We must conduct verification tests in Japanese waters as Japan's ocean and weather conditions differ from those in Europe," said Masakatsu Terazaki, chairman of the Floating Offshore Wind Technology Research Association(FLOWRA).In an interview on Tuesday, he told Reuters the association planned to discuss details such as functions and equipment, while also stressing the necessity for such a centre to the government.Japan should work with Scotland's national floating wind test centre, the EMEC, and Norway's Marine Energy Test Centre, the METCentre to draw on their extensive experience, he added.Japan runs seven offshore wind farms, two small floating turbines among them, with a total capacity of 253 megawatt (MW) at end-2024, the Japan Wind Power Association says, but it bets on large projects to boost energy security.The country is targeting 45 GW of offshore wind pipeline by 2040, with the latter target including 15 GW or more of floating wind across its vast exclusive economic zone (EEZ), the world's sixth largest.FLOWRA, set up last year, groups 21 domestic companies, such as liquefied natural gas (LNG) buyers JERA and Tokyo Gas 9531.T. It has signed cooperation pacts with Britain and Norway, among others, for floating wind technology studies.Britain has the world's second biggest installed offshore wind capacity after China while Norway runs Hywind Tampen, the largest floating offshore wind farm in operation to date.Japan aims to have a pipeline of the first large-scale floating wind project in fiscal 2029, a target to which FLOWRA is contributing, Terazaki said.Electricity demand is seen growing 6% in Japan by 2035, driven by data centres and semiconductor plants. While nuclear power and LNG will help, renewables are essential, he added.Terazaki said his biggest concern was that Mitsubishi's withdrawal is undermining momentum for offshore wind, but stressed the sector was vital to meet rising power demand and achieve Japan's carbon neutrality goals."Japan lacks large land (for more solar and onshore wind), and has no (fossil fuel) resources, but has a vast EEZ. There is no reason not to use it," he said."Setbacks are not unique to Japan - Netherlands, UK were faced with similar challenges. It's part of the growth process."(Reuters)
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Iron ore is on the move ahead of a key China data release
Iron ore futures prices were volatile on Thursday before China, the world's largest consumer of iron ore, released a series of data that will likely determine the direction of demand. As of 0341 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange was down by 0.19%. It stood at 800.5 yuan (US$112.41) per metric ton. As of 0331 GMT, the benchmark October iron ore traded on Singapore Exchange was $106.65 per ton lower. China will release key data on Monday. This includes information about the economy, property and industrial metals. First Futures analysts said that a tight supply-demand balance of the main steelmaking ingredient will likely support ore prices. The focus remains on whether Beijing will enforce production cuts in all of China for the rest of the year, to rebalance the market which has been affected by overcapacity. The ore price was supported by an improving demand, after some Chinese steelmakers ramped up production after reducing output to prepare for a military display on September 3. However, falling steel margins as well as accumulated stocks posed a significant downside risk. Analysts said that prices of Coking coal, coke, and other steelmaking components rose by 1.7% and 0.99%, respectively, after the latest mine accident raised fears about more stringent safety measures which could limit supply. The benchmarks for steel on the Shanghai Futures Exchange are mixed. Hot-rolled coil, wire rod and rebar were little changed. Stainless steel was down 0.23%.
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Gold nears record highs as US data shows signs of rate cuts
The gold price remained near its record highs on Thursday as the Federal Reserve's interest rate is expected to be cut by the Federal Reserve next week. Investors were awaiting U.S. consumer prices due later that day. As of 0233 GMT, spot gold remained at $3,636.59 an ounce. Bullion reached a new record of $3,673.95 per ounce on Tuesday. U.S. Gold Futures for December Delivery declined by 0.1%, to $3676.40. The recent rise in gold is due to weak macro-economic data from the United States. Both the massive revisions of the labor data and the positive surprise with the PPI readings have led to expectations that rates will be lowered at a faster pace than expected, said Marex analyst Edward Meir. U.S. Producer Prices unexpectedly declined in August, due to lower margins for trade services and modest increases in goods prices. Investors will now be focusing on the U.S. Consumer Price Index data due at 1230 GMT. A poll predicts a 0.3% increase monthly in August, following a 0.2% increase in July. CPI growth is forecast to be 2.9% compared to 2.7% in July. Meir stated that unless the CPI surprises negatively it will continue to drive prices up. The expectation of monetary ease has been reinforced by the weaker-than-expected data on nonfarm payrolls last week and revised estimates that show 911,000 less jobs were created in the year through March. Investors will also be watching the weekly data on jobless claims, which is due at 1230 GMT. This information can provide additional insight into U.S. employment. According to the CME FedWatch tool, it is widely expected that the Fed will cut interest rates next week by 25 basis points. Investors have also factored in a small possibility of a 50-basis point reduction. Gold is a good investment in low interest rate environments because it does not pay any interest. The administration of U.S. president Donald Trump appealed Wednesday against a ruling by a federal court that temporarily prevented the dismissal Lisa Cook, Fed Governor. Silver spot was down 0.1% to $41.09 an ounce. Palladium dropped 0.1% and platinum remained at $1,386.75. (Reporting and editing by Sherry Jacob Phillips in Bengaluru, Anmol Choubey from Bengaluru)
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Charlie Kirk, a right-wing activist who died at age 31, played a key role in Trump’s victory of 2024
Charlie Kirk, a right-wing American political activist, was credited for building Donald Trump's support among younger voters. He also galvanized conservative youth and rose to international prominence with a group that he founded when he was 18. Kirk, a native Illinoisan who founded the conservative students group Turning Point USA, and then went on to become an rising star in Trump's Republican Party, was just returning to the United States after a speaking tour overseas when he died on Wednesday. Kirk was 31. Kirk, president of Turning Point USA was addressing an outdoor crowd at the Utah Valley University in Orem. The Utah Governor described Kirk's assassination as "political." It is not known what motivated the crime, and it wasn't clear if a suspect was arrested. Kirk was the keynote speaker at an event organized in Tokyo by the extreme-right Sanseito Party, which won big in Japan's July upper house elections. Kirk also spoke recently in South Korea. Kirk attracted 5.3 million subscribers to his X account, and drew a monthly audience of over 500,000 listeners for podcasts of "The Charlie Kirk show." Kirk also authored several books or contributed to others, such as "Time for a Turning Point," "The College Scam," and "Time for a Turning Point." INFLUENCE BUILT UPON COLLEGE CAMPSITES Kirk founded Turning Point USA with Bill Montgomery in 2012. The non-profit group supports conservative candidates. Turning Point USA is an organization that promotes conservative causes in college campuses. It was crucial in influencing youth to support Trump during the November 2024 elections. Kirk's Turning Point was raucous. It was a mixture of a tent revival, rock show, and professional wrestling match. Speakers would be accompanied by loud anthems, bright pyrotechnics and a high-spirited audience of thousands. Kirk died on Trump's online platform Truth Social. Trump said, "Nobody understood or had the Heart of the Youth of the United States of America like Charlie." "He was loved by all, but especially me. He is no longer among us." Kirk was honored by Trump's order to fly the flags at half-staff. Kirk's provocative remarks were directed at Muslim politicians including Minneapolis mayoral candidate Omar Fateh, and Islam in general. In April, he said that "Islam has conquest-like values." They are trying to conquer land and territories, and Europe has now been conquered. He repeated conspiracy theory popular with white nationalists. Kirk claimed that Jasmine Crockett (a Black Democratic lawmaker) was part of an attempt to "eliminate the white population of this country" in an August podcast. Kirk, the son of an architect and a counselor in a mental health clinic, saw his political career take off after he wrote a 2012 opinion piece for Breitbart, a conservative media outlet, which caught Fox News' attention, according to New York Times reports from February. The Times reported that Fox booked Kirk to speak about the national debt. This appearance led him to give a speech at Benedictine University where he met Montgomery a Tea Party activist. Montgomery encouraged Kirk's message to be spread on college campuses and registered Turning Point USA in July 2012 for Kirk. Kirk's wife Erika is a former Miss Arizona USA beauty contest winner. They have two children. Steve Gorman reported from Los Angeles, Helen Coster from New York, and Jim Oliphant contributed additional reporting. Additional reporting was provided by Andrew Hay, Brad Brooks and Andrea Shalal. Joseph Ax and Jana Winter also contributed.
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Oil prices flat amid weak US demand, softening economy
The oil price was flat on Thursday. It had cooled from the previous session due to weak demand in the United States. Broad oversupply risk and concerns over the Middle East attacks and Russia's conflict in Ukraine were offset by the lack of concern about the Middle East. Brent crude futures rose 1 cent or 0.01% to $67.50 a barge by 0156 GMT. U.S. West Texas Intermediate Crude futures gained 2 cents or 0.03% to $63.69. The benchmark contracts increased by more than $1 on Wednesday, following Israel's attack the day before on Hamas leaders in Qatar. Poland also scrambled their own air defences and NATO to shoot down suspected Russian Drones that had entered its airspace while an attack was being carried out on western Ukraine. This was the first known instance of a Western military alliance member firing shots during Russia's conflict in Ukraine. Israel's airstrike on Qatar came shortly after Hamas took responsibility for the shooting that left six people dead at a bus station on the outskirts Jerusalem on Monday. The U.S. economy is softening, as evidenced by falling producer prices, rising oil inventories, and a slowing labor market. The Energy Information Administration reported that U.S. crude stocks rose by 3.9 millions barrels during the week ending September 5. This was against the expectation of a drawback of 1 million barrels. Gasoline inventories also increased, adding 1.5m barrels against an expectation of a drawback of 200,000 barrels. Analysts now expect the U.S. Federal Reserve will cut interest rates at its mid-September meeting next week. Stephen Brown, Capital Economics' deputy chief economist in North America, wrote in a report that the FOMC was likely to vote next week for a 25bp rate cut due to the improving labour market. However, a rare triple dissension in favor of a 50bp increase could grab the headlines. On Thursday, the European Central Bank is expected to keep its interest rate unchanged. (Reporting and editing by Tom Hogue; Katya Golubkova)
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Barrick sells its Hemlo Mine in Canada for up to $1 billion
Carcetti Capital and Barrick Mining have agreed to sell their Hemlo Gold Mine in Canada for up to $1.009 billion. The statement said that the deal included $875 million cash at closing and $50 million in Carcetti shares, as well as up to $165 millions in contingent payments tied to gold production and prices starting in 2027 and over five years. Carcetti announced that it would fund the acquisition with a combination of financing. This includes a $400-million gold stream from Wheaton Precious metals, a $225-million loan underwritten and guaranteed by Scotiabank, and approximately $415 million in a private placement. The deal will close in the fourth-quarter and Carcetti Capital will be renamed Hemlo Mining Group. Barrick's quarterly profits surpassed estimates in August and the company raised its dividend, despite a $1.04bn charge related to its Mali mine. This was part of an overall effort to focus on its biggest gold and copper operations and shed non-core assets. (Reporting by Surbhi Misra in Bengaluru; Editing by Alan Barona)
Three people killed and 70 injured when a tanker truck exploded on a highway in Mexico
Authorities said that a gas tanker truck flipped, burst into fire and exploded along a highway in southeast Mexico City. At least three people were killed and 70 injured.
A massive explosion and fire destroyed several vehicles at the border of the Iztapalapa district in the capital and Chalco, Mexico State. Drone footage shows firefighters fighting the fires and cooling down the charred remains from the tanker and other vehicles.
Clara Brugada, Mexico City mayor, said on X network that there were 70 injured people and three fatalities. She released a list of the hospitalized and said that it would be updated based on medical assessments.
She said, "We will continue providing medical support to victims of this accident."
Local officials reported that emergency personnel were called to the scene where several people suffered serious burn injuries. Later, the city's Fire Department said that the fires were extinguished around and in the tanker trailer which was hauling liquefied petrol gas.
This is the second major highway accident in Mexico within a week. (Reporting and editing by Tom Hogue; Lizabeth Diz, Natalia Siniawski)
(source: Reuters)