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Trade sources predict that the supply of Saudi crude oil to China will surge in October.
Saudi Arabian crude oil exports will surge to China in October following a steep drop in prices, according to several sources. A tally of the allocations made to Chinese refiners revealed that Saudi Aramco, the state oil company, will ship 51 million barrels in October. This is about 1.65 millions barrels per day. The October plan is comparable to the 1,43 million bpd allotted in September, and the volume in August was the highest in April 2023. Sources said that the top Asian refiner Sinopec and Hengli Petrochemical were planning to increase Saudi crude exports next month. Aramco didn't immediately respond to an inquiry for comment regarding its allocation in October to China. Aramco reportedly spoke with Asian buyers at the APPEC Conference in Singapore this week, encouraging them to buy more crude oil in October in order to regain market share. The price of its flagship Arab Light crude for Asia in October was set at $2.20 per barrel over the average Oman/Dubai, a drop of $1 from the five-month high reached in September. The price reduction followed a decision made by the Organization of Petroleum Exporting Countries (OPEC+) and its allies, led by Russia, at the weekend to increase production by 137,000 barrels a day in October. Since April, the group led by Saudi Aramco, which pumps half of all world oil, has already increased production by 2.5 million barrels per day, or 2.4%.
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Uganda's growth averages 8% per year over the past five years, boosted by oil
The Finance Ministry said that Uganda's economy will grow at an average of 8% per year over the next five-year period, mainly due to investments in the petroleum sector and other sectors, such as transportation. The Ministry of Finance, citing Finance minister Matia Kasaija, said that the start-up of crude oil production is expected around mid-2026. This will push the growth to double digits for the fiscal year 2026/27. Last year, the International Monetary Fund predicted that Uganda's economic growth would reach double digits due to oil production. It is the first forecast of this kind by the government. Kasaija said this while presenting the budget strategy for the fiscal year that begins in July of next year. The economic growth for the year 2026, ending in June, is expected to be 7%. Minister said that the following year the government would prioritize investments in oil, gas, transportation infrastructure, electric power and industrial parks, among other sectors. East Africa is estimated to have 6.5 billion barrels in crude oil reserves located in the Albertine Rift Basin. China National Offshore Oil Corporation and France's TotalEnergies, two developers of offshore oil fields, are drilling wells and building an export pipeline in preparation for the planned start of production. (Reporting by Elias Biryabarema; Editing by George Obulutsa, Alexandra Hudson)
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How New York transforms millions of pounds of food waste to 'black Gold'
Watermelon rinds and pizza boxes with grease, as well as yard trimmings. These items would be destined for a landfill in many cities. In New York, these items are used to make something surprising valuable: "black-gold." Jennifer McDonnell, the Deputy Commissioner of Solid Waste Management for the New York City Department of Sanitation said: "We are making this amazing compost that we can utilize throughout the city to improve soil health." Staten Island's Compost Facility is managed by Denali Water Solutions. It has been processing landscaper waste for many years, but now it also processes residential organic waste. The facility receives 100-150 tons of organic waste on average, and up to 250 tons if there is a heavy leaf fall. Composting starts as soon as the waste arrives. The piles can reach temperatures of over 100 degrees Fahrenheit (37.2degC), which is hot enough to kill pathogens, weed seeds and other weed seeds. In the course of a few weeks, fungi and bacteria will break down the material. The end product is a dark, rich compost after curing and screening. The city distributes free to residents, schools and community gardens. McDonnell stated that "we've distributed, we believe, almost 6,000,000 pounds of compost this year to residents of New York City." Compost helps to improve soil health, control stormwater and maintain city green spaces. According to the National Resources Defense Council, the majority of household waste is made up of food scraps and yard debris. They generate methane when they are disposed of in landfills. Eric Goldstein is the New York City Environment Director for the Council. Residents are required to separate yard waste, food scraps and food-soiled papers from their trash as part of the city's organics program. The enforcement of the law was suspended earlier this year but is expected to resume again in 2026.
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Covestro shares rise as ADNOC plans EU Concessions
Sept. 11 - Shares of German chemicals maker Covestro rose Thursday, after reports that ADNOC is preparing concessions to respond to an EU investigation into its 14.7 billion euros ($17.2 billion), bid for Covestro. At 0924 GMT the shares of Covestro had risen 5.5%, making it their best day for over a month. People familiar with the situation said that ADNOC (the Abu Dhabi state oil company) which bid on the German firm last year would convert the proposed capital increase of 1.2 billion euros into a shareholder loan. Thomas Schulte Vorwick, Metzler analyst, said: "These incrementally positive developments support the stock as they increase the probability of a close-term agreement and successful acquisition between the parties." ADNOC continued to criticize EU regulators last week for what they called excessive and intrusive requests for information, which it warned could undermine the deal. Covestro's shares had fallen 3.1% by the close of the previous session. In the last year. ($1 = 0.8555 euros) (Reporting and editing by Matt Scuffham in Gdansk, Bernadette Kaesebier from Gdansk)
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Rome's Mayor says River Tiber may be open to swimming within five years
Rome's mayor announced on Thursday that he hopes to open up the River Tiber for public swimming in five years. This initiative was also taken by Paris. After a thorough cleaning, the French authorities allowed swimming in the Seine for the first since 1923. This was prompted by the use of the venue for the Paris Olympics 2024. Rome's mayor Roberto Gualtieri announced that he has set up a Tiber working group and will open it up to all national and regional authorities. Gualtieri, during a trip to Japan's Osaka Expo fair, said: "We are happy to have established that this goal is entirely achievable. Within five years we will be swimming in the Tiber." He said that there are no estimates of the final cost yet, but it will likely be lower than the 1,4 billion euros ($1.64billion) spent in Paris to clean up the Seine because the pollution levels in the Tiber are lower. The Tiber was open to bathing until 1960, when pollution led to the first restrictions. There is a ban on swimming in the river, and fines can reach hundreds of Euros. However, a tradition still exists where a diver jumps off a bridge into the river every New Year's Day. The Tiber used to be a vital transport and trading route through Rome. Recent times have seen locals use its banks and waters less. Rome's municipal authorities have cleaned up the riverbanks to make them more attractive for citizens and tourists. This is part of an overall city revamp to celebrate this year's Catholic Jubilee. Concerns about the water quality persist despite the fact that the Paris Summer Olympics 2024 will be held in the Seine. Many swimmers competing in the Olympics took E. coli medicines and certain events were cancelled due to pollution. Reporting by Giulia Segreti, Editing by Alvise Armilini and Gareth Jones
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Stocks and the euro tread water before ECB and US Inflation data
The dollar continued to rise on Thursday as traders awaited the European Central Bank’s latest interest rate announcement and new U.S. Inflation data. Overnight, high-flying technology shares helped Japan, Taiwan and South Korea reach record bourse peaks. Europe had a steady day ahead of the ECB's second delay in a line in its 2% rate for the euro zone after lunch. Most traders kept their powder dry, awaiting the closely-watched U.S. consumer inflation data. The euro was hovering at $1.1690, having risen nearly 13% against the dollar in this year. Bond vigilantes had not yet been able to push France's politically stressed borrowing costs above Italy. Benoit Begoc, ABN AMRO's strategist, said that while the ECB is widely expected to keep rates the same this meeting, it will be interesting to see if they leave the door open for more cuts. They may also release a new set of economic projections. "I'm wondering why you don't cut rates more" Begoc stated. Begoc said. The pan-European STOXX600 edged up by 0.3% ahead of the 1215 GMT ECB announcement and the 1245 GMT Press Conference. Germany's 10-year Bond yield dropped to 2.65% from 2.80% a week ago, its highest level since March. Oil prices dropped on the commodity market after rising more than 1% Wednesday, when Poland shot down suspected Russian drones. This sparked new talk of sanctions just a day after Israel targeted Hamas leaders in Qatar. Gold, the safe-haven metal, dipped from recent records and copper, the bellwether of the metals market took a break from its 20%+ rally since U.S. president Donald Trump's tariffs on trade shook markets worldwide in April. TRADERS BET ON TRIO OF FED CUTS Wall Street futures predicted that the S&P 500, Nasdaq and S&P 500 would continue to rise after the recent record-breaking jump of 36% in Oracle's shares. Money markets also priced in a greater chance of Federal Reserve cutting interest rates three times this year. Investors are fully pricing in a move of one quarter point from the Fed during next week's meetings, with an 8 percent chance of a cut of 50 basis points. The consumer price index for August is expected later. The poll predicts that the headline CPI will rise by 2.9% compared to a year ago, which is the largest increase since January. However, the core CPI measure will likely remain at 3.1%. Julien Lafargue is the chief market strategist of Barclays Private Bank. He said that investors will likely maintain a dovish view unless CPI shows a significant upward shock. This shift in inflation dynamics may prove crucial for the U.S. Fed. It now faces less constraints to pursue a more aggressive cycle of rate-cutting. Overnight, Nikkei, the Japanese stock market index, gained 1.2%, a new record, as energy, tech and utilities companies soared. South Korean shares increased by 0.9%. In Tokyo. SoftBank gained almost 10% following the explosive gains of its Stargate Project Partner Oracle. This 36% gain was the largest one-day increase since 1992 for 48-year-old technology giant. The foreign exchange market was relatively quiet, with little movement in the U.S. Dollar and the six-currency dollar index barely above its seven-week low. The 10-year Treasury yields increased by 2 basis points, to 4.0531%. They had fallen by 4 basis points after the PPI report on Wednesday and a strong 10-year note auction eased investor concerns about long-term U.S. government debt. The Treasury's sale of $22 billion in 30-year bonds, which will take place on Thursday, is a more accurate indicator. The 30-year yield increased 2 basis points to 4.7028%. It has dropped more than 30 basis point since briefly topping 5% last week.
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Gold prices fall on dollar recovery as US CPI data is closely watched
Gold prices fell on Thursday but remained near records, well above $3,600, as profit-taking and a modest dollar recovery pushed down the price. Investors waited for the U.S. consumer-inflation figures, due later today. As of 0811 GMT, spot gold was down by 0.3%, at $3,629.23 an ounce. Bullion reached a new record of $3,673.95 per ounce on Tuesday. U.S. Gold Futures for December Delivery fell by 0.4% to $3666.70. The U.S. Dollar Index rose by 0.2%, reaching a new high of nearly one week against its rivals. This makes gold priced in greenbacks more expensive for foreign buyers. Gold is under pressure today due to a stabilizing Dollar and profit taking. The precious metal is still firmly bullish, above the psychological level of $3,600, with yesterday's unexpected drop in U.S. Producer Prices limiting the downside, said Lukman otunuga. Senior research analyst at FXTM. Data released on Thursday revealed that U.S. producers prices fell unexpectedly in August, due to lower margins in trade services and modest increases in goods cost. The weaker-than-expected data on nonfarm payrolls last week and revised estimates that revealed 911,000 less jobs in the 12-month period through March have strengthened expectations of monetary ease. Investors are now awaiting the weekly U.S. CPI and U.S. jobless claims data due at 1230 GMT. A poll predicts an increase of 0.3% in consumer prices for August and a 2.9% increase in CPI year-on-year. Bets on the Fed reducing interest rates in October may be affected by signs of inflationary pressures. This could cause a gold selloff, which may push it back to $3,500. A soft CPI may however push gold to new all-time highs," Otunuga said. CME FedWatch reports that investors have priced in a 8% chance for a 50-basis point reduction. Gold that does not yield is typically supported by lower interest rates. Silver spot was down 0.2% to $41.05 an ounce. Palladium fell by 0.1% and platinum dropped 0.6%, to $1,172.45. (Reporting by Ishaan Arora in Bengaluru; Editing by Louise Heavens)
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Vietnam to offer online gold trading as it permits private imports
Vietnam is planning to open a gold online exchange, allowing companies to import gold, for the first decade, starting next month. This will be part of efforts to stabilize domestic prices which are increasing at an alarming rate. Local economists say the move is intended to balance gold supply and demand. It could also be used to mobilize private resources in order to boost economic growth. State media quoted a central banking official on Thursday as saying that the State Bank of Vietnam is studying international experiences to set up the exchange. According to a report in the Dan Tri, the deputy governor of the SBV, Pham Quang Dug, said that the central bank would also consider trading gold at the Mercantile Exchange of Vietnam, or in a future international financial centre. Academics warn that rapid credit growth could cause asset price bubbles in the Southeast Asian nation, which is one of fastest-growing economies in the region. The central bank also tries to stabilize the price of domestic gold, which is a popular choice for investment and is considered an important tool for wealth preservation in Vietnam. In spite of efforts made last year to increase supplies through auctions and commercial bankers, domestic prices are up 60% this year and, as of Thursday, remain around 23% above the international market. From October 10, a government order will permit qualified companies to import the precious metal. A central bank licence will be issued to companies for gold imports and a quota set annually. Vo Tri Thanh, an economist based in Hanoi, said that more imports would help to cool the domestic gold price and reduce the gap between the local market and the global one. However, it could also pressure the exchange rate. Thanh explained that "you will need to pay U.S. dollar to import gold and the more you import the greater the outflows of greenback." The central bank announced earlier this week that the decree issued on August 26 will also end its monopoly over gold bullion in an effort to diversify the gold supply and increase competition and transparency in the marketplace. The central bank also said that it would tighten its controls on gold trading firms in order to prevent money laundering and other illegal activities such as smuggling, illegal trading, and speculation. The police in Vietnam have charged a former Saigon Jewellery chief executive with embezzlement, and abuse of authority. ($1 = 26 397 dong)
IEA: World oil market will see increased supply and surplus after OPEC+ increase
The International Energy Agency stated on Thursday that the world oil supply would rise faster than expected in 2018, as OPEC+ member countries increase their output and the supply from outside of the group increases. It also suggested that a surplus may grow by 2026.
The IEA, a consultancy for industrialised nations, has said that the supply will increase by 2.7 millions barrels per day in 2025. This is up from 2.5million bpd, as previously predicted. And by a further 2.1million bpd in next year.
OPEC+ has added more crude oil to the market since the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other allies have decided to unwind their second layer of production cuts faster than originally planned. This extra supply has led to concerns of an excess and pressure on oil prices in this year.
The IEA believes that supply is increasing faster than demand, despite its upward revision of the forecast for world demand growth this year, which was increased by 60,000 bpd compared to the previous forecast. It cited resilient deliveries in advanced countries as the reason.
The IEA reported that "Oil markets were being pulled in various directions by a variety of forces. New sanctions against Russia and Iran could lead to supply losses, while OPEC+'s supply was higher and there was the possibility of an inflated oil balance."
IEA's demand forecasts are lower than other forecasters, because the agency anticipates a quicker transition to renewable sources of energy. OPEC will update its forecasts on Thursday, with a demand increase greater than that of the IEA.
The IEA said the world market looked oversupplied. Thursday's report suggested that the supply could exceed demand by 3.3 million bpd in the next year. This is due to growth outside of the OPEC+ and a small expansion in demand.
The report from last month suggested a surplus for 2026 of nearly 3 million bpd. (Reporting and editing by Louise Heavens, Susan Fenton, and Alex Lawler)
(source: Reuters)