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Sources say that Motiva Texas refinery will be doing coker work in 2019, and CDU replacements in September 2026.
Motiva Enterprises will perform maintenance on a coker this December and overhaul its large crude distillation system in September 2026, according to people familiar with the plant's operations. The refinery produces 640,500 barrels per day. A Motiva spokesperson failed to respond on Tuesday when asked for comments about the planned maintenance of the Port Arthur refinery in the United States, the largest. Sources did not specify which of the cokers in the refinery would undergo maintenance before the end 2025. Two cokers are available at the refinery. DCU-1 is capable of producing 54,000 bpd, and DCU-2 can produce 110,000 bpd. Sources said that the work was called a pitstop, which means it would be shorter than the planned full overhaul of the CDU VPS-5, with a capacity of 350,000 bpd, scheduled to start in September. Sources said that the work on VPS-5 was expected to last 60 days. Other units supplied by VPS-5 would also be closed for work. Cokers can convert residual crude oil to motor fuels, or into petroleum coke that can replace coal. CDUs start the refining by converting crude oil into feedstocks that are used in all other refinery units. VPS-5, the largest CDU at Motiva's refinery, is located in the VPS-5 building. (Reporting and editing by Erwin Seba)
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US will provide up to 800 million dollars to support small reactors
The U.S. Department of Energy announced on Tuesday that it would provide up to $850 million in support of the development of small modular nuclear reactors by Tennessee Valley Authority and Holtec. The Trump administration and nuclear firms believe SMRs can help provide electricity in the U.S., where demand for power is increasing for the first time since two decades due to artificial intelligence mining, electric vehicles and cryptocurrency mining. SMRs are said to save money because they will be manufactured in factories. There are no such reactors under construction in America, and there is some doubt about their ability to provide as much power as larger reactors. Nuclear power produces radioactive waste that is long-lasting and for which no permanent storage facility exists. The Energy Department announced that TVA, a U.S.-owned utility, would receive up to 400 million dollars in federal cost-shared funds for the development of a GE Vernova Hitachi BWRX-300 on the Clinch River Site in Tennessee, and other projects. Holtec plans to build up to two SMRs on its Palisades site in Michigan. Holtec hopes to reopen its 800-megawatt Palisades nuclear reactor, which closed in 2022. It had been operating for over 50 years. The plant received a $1.52billion loan guarantee under former president Joe Biden’s administration. To date, the Energy Department’s loan office disbursed over $490m of that financing. Energy Department anticipates that SMRs will be developed in the early 2030s. These awards will allow us to deploy these reactors quickly, Energy Secretary Chris Wright stated in a recent press release.
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Investors focus on Fed rate cuts as gold falls due to profit booking
The gold price fell by over 1% Tuesday, as investors took profit after a six-week peak in the previous session. They also awaited important U.S. data before the Federal Reserve policy meeting next Monday. By 1:43 pm, spot gold had fallen 1.1% to $4186.89 an ounce. ET (1843 GMT). U.S. Gold Futures for February Delivery settled 1.3% lower, at $4.220.80 an ounce. Peter Grant, senior metals analyst at Zaner Metals and vice president of the company, said that it was probably a small amount of profit-taking. The market has focused on rate cuts in recent months and these expectations remain fairly steady. "We are in an upward breakout pattern and I like gold at $5,000 early in the New Year." The recent data showing a slowing of the U.S. economic growth, combined with the dovish comments of Fed policymakers has led to increased market expectations of a rate cut of 25 basis points at the U.S. Central Bank's next week meeting. Traders have priced in an 89% chance of this move. Investors will also be watching the November ADP Employment report, due on Wednesday, and the September Personal Consumption Expenditures Index (PCE), which is the preferred inflation indicator of the Fed, due on Friday. Gold that does not yield is usually a good investment. According to the World Gold Council, central banks purchased 53 tons of gold during October, a 36% increase month-on-month. This is the highest monthly net demand seen since 2025. Silver fell from the record high of 58.83 dollars per ounce, which was reached on Monday. It dropped 0.1% to 57.90 dollars an ounce. Over 100% of the year has been achieved. "There are no new factors for the recent price increase (in silver). The known reasons are still valid, however, and include tight supply which is reflected by low inventories at the Shanghai exchanges. Commerzbank stated in a report that it expected a moderate price rise to $59 for silver in the next year. Palladium rose 2.3%, to $1456,86, while platinum fell 2%, to $1624,90. (Reporting from Anmol Choubey, Bengaluru; additional reporting by Polina Devitt. Editing by Shailesh Kumar and Maju Samuel.
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Special Report-China floods world with gasoline cars that it cannot sell at home
In just a few short years, China's electric vehicle industry has captured more than half of its domestic market. This has led to a decline in sales for gasoline-powered cars from the once dominant global automakers. Foreign players were not the only losers. Chinese automakers who had been in business for decades also saw their sales plummet and responded by flooding foreign markets with fossil fuel vehicles that they couldn't sell domestically. While Western policymakers focused on the threat posed by China's heavily subsidized EVs and protected their markets with tariffs; U.S., European, and South African automakers are facing greater competition from China’s gas-guzzlers from Poland to South Africa, to Uruguay. According to Automobility, China's consultancy, fossil-fuel vehicles account for 76% (or more) of Chinese auto exports. Total annual shipments have increased from 1 million in 2020 to over 6.5 million likely this year. A recent examination revealed that the boom in gasoline exports was driven by the same EV policies and subsidies that destroyed the China businesses for automakers such as Volkswagen, GM, and Nissan. These policies and subsidies underwrote scores of Chinese EV manufacturers and ignited a price war. This phenomenon highlights the impact of Chinese industrial policies, as foreign companies struggle to compete with state-backed firms that are chasing Beijing's goal to dominate key sectors in China and internationally. Industry and government data indicate that China's gasoline vehicle exports last year - without including EVs or plug-in hybrids – were enough to make the nation the largest auto-exporting country by volume. This report on the global expansion of Chinese automakers is based upon a review and analysis of auto sales data from dozens of countries, as well as interviews with over 30 people. These included executives of 11 Chinese and 2 Western automakers, distributor managers for Chinese brands, and industry researchers. The Chinese gasoline car influx into emerging and secondary markets is a clash between Beijing's current push for electric vehicles and earlier policies that helped build China's domestic gas-vehicle sector by leveraging the technology of foreign automakers. State-owned giants SAIC, BAIC and Dongfeng, among others, are the largest exporters. They have historically depended on joint ventures to gain engineering expertise and profits from foreign automakers. In the 1980s, Beijing forced these partnerships as a price for foreign companies to enter China. These joint ventures have seen their sales plummet in recent years, as innovative Chinese EV manufacturers, led by BYD, have risen to prominence. SAIC data shows that SAIC-GM China's annual sales fell from more 1.4 million cars to 435,000 vehicles between 2020 and 2024. These state-owned automakers are now racking up sales on export markets that used to be the sole domain of foreign automakers, who are also their partners in China. SAIC exports, mainly of its own brands and without GM, soared to over a million dollars last year from just under 400,000 in 2020. Jelte Vernooij is Dongfeng Central Europe's manager. He said that Dongfeng exported nearly 250,000 cars last year. This was an increase of almost four times in just five years. Dongfeng has seen its annual global sales fall by one million vehicles, from 2020 to less than two million. This is according to company filings. Vernooij, however, is not worried about Dongfeng’s future because Beijing has backed it. He said that the fact that we are state-owned was important. "There is no doubt that we will survive." It's also a fact that gasoline cars sell better than EVs in markets with limited charging infrastructure, like those of Eastern Europe, Latin America, and Africa. Beijing aims for EVs and hybrids to be dominant in the world. In the meantime, Chinese automakers build overseas brands by offering customers what they want. Chery is China's largest auto exporter. Between 2020 and 2024, its global sales soared from 730,000 to 2.6 millions vehicles. Chery - which is owned by both the state and the private sector - has increased its annual exports in the past five years by about one million units. Its sales are mainly gasoline powered vehicles, accounting for four-fifths. Five other state-owned carmakers, as well as two private automakers, Geely Motor and Great Wall Motor are also among China's top ten exporters. They sell more gasoline cars than electric vehicles. Two of China's top ten auto exporters are exclusively focused on battery-powered cars. Tesla, the pioneer of electric cars in the United States, is one of them. BYD is the other, and it only sells EVs or plug-in hybrids. BYD has become China's second largest exporter this year, and the country's exports are now dominated by plug-in hybrids. China's gasoline vehicle exports will still exceed 4.3 millions and make up nearly two thirds of the total for this year. Exports are essential for the growth and profitability of Chinese automakers, according to overseas managers from Chery, Dongfeng, and FAW. Giles Taylor is the global vice president of design at FAW. He believes that some rivals in China are just one product away from bankruptcy. He said, "China is overpopulated with auto companies." It's on the verge of a dog-eats-dog situation. Managers said that most brands focus on exporting gasoline cars, because it's easier to sell them in many regions. Nic Thomas, Changan’s European Marketing Director said: "We can fine tune our offering for each market." The National Development and Reform Commission and other top exporters SAIC and BAIC as well as Geely and Great Wall Motor, and the government economic planner did not provide any comments for this report. Executives from global automakers have acknowledged that China's rising rivals are a serious threat to their business, but mainly in relation to the innovative and affordable EVs they produce rather than gasoline-powered models. Toyota, Ford Nissan and Hyundai representatives did not make any comments on China's export boom. Some of the old-timers say they are ready to fight. Alexander Seitz said that he has "no fears of the Chinese." He said, "I respect them for being competitors." "They are welcome to join us." Volkswagen wants to export more cars made in China overseas to counter the competition from China. A GM spokesperson referred to comments made by CEO Mary Barra in October, that the company aims "to compete with Chinese competitors" with the "right technology at the right price." IDLE FACTORIES FUEL SURGE The government's policies have created an excess of factory capacity for building them, which has led to the rush by Chinese automakers to export gasoline vehicles. Bill Russo, CEO of Automobility, says that China's rapid EV expansion has idled assembly plants capable of producing 20 million gasoline powered cars per year. These unproductive overheads increase costs and force automakers to use capacity for exports. Russo stated that "that excess capacity is being directed back to the rest of world". AlixPartners, a consultancy, predicts that Chinese automakers will increase their annual sales outside China by 4,000,000 vehicles by 2030. This will result in them gaining large market share in South America and the Middle East. They also expect to gain significant market shares throughout Africa, Southeast Asia, South America and the Middle East. Chinese automakers will control 30% of global auto sales in five years, including expected growth in China - the world's biggest car market. Stephen Dyer is the joint head of AlixPartners China. Beijing's policies encouraged automakers over the past decade to build new electric vehicle plants instead of converting existing gasoline-vehicle facilities. Reports claim that local governments subsidized the boom in factory construction as they competed with each other to attract EV manufacturers, all for Beijing's economic purposes. Cities and provinces that wanted to show development financed automakers' EV factories at a low cost. Local governments prepare the land, build the factories and allow companies to "move in" with only a suitcase. Liang Linhe is the chairman of Sany Heavy Trucks, one of China's biggest truck manufacturers. The result is massive overcapacity. Su Bo, China’s former vice-minister of industry, urged the regulators at a March EV Conference to encourage the conversion of gasoline car factories into battery-powered models. Su Bo, China's former vice minister of industry, urged regulators to promote the conversion of gasoline-car factories into battery-powered models at a March EV conference. He said that the declining gasoline car sales are "leaving significant capacity underutilized" and "plummeting the sector into an essential survival crisis." The real battle in autos: Emerging markets While EV startups were building factories in China, the legacy Chinese automakers searched for new markets for gasoline cars to maintain their underutilized plants. In Warsaw, Poland on a sunny September day, new SUVs bearing chrome "BEIJING' logos lined up the Plaza dealership. These SUVs were powered by gasoline engines made by BAIC, an automaker owned and operated by the Beijing city government. BAIC is one of 33 Chinese brands to have announced or launched Poland sales, with many selling exclusively or primarily gasoline-powered cars, according to company announcements. GlobalData's sales figures also show that BAIC was among the first Chinese brands in Poland. Jerzy Przadka is BAIC's Poland Manager. He said that there are so few Chinese midsized SUVs with distinguishable features, and many of them look alike, that Poles cannot tell the difference. Marcin Slomkowski is the country manager of GAC and Geely at Jameel Motors. He called the new Chinese competitors that have entered Poland a "simple madness" and said local market expertise would be the "key to survival." Inchcape is a global distributor of autos. Most of the contracts it has signed recently are with Chinese automakers who have entered emerging markets. Older manufacturers are also joining the global market, as they struggle to meet Beijing's EV development mandates and maintain gasoline-car profit margins. Exports must be tailored to the market, which is usually gasoline cars in emerging economies. Tait stated that "the model you use with China will not necessarily work in Costa Rica or Peru, Indonesia, Greece, or Indonesia." You have to accept the world for what it is and not as you would like it to be. Even in more developed economies, Chinese brands are still a major player when it comes to fossil fuel vehicles. Chery sold almost all its cars in Australia with gasoline engines. Only recently has the company begun to offer plug-in hybrid models. The pragmatism of China's automakers in the engine field created new fronts for their battle to gain market share with foreign competitors. Many automakers have historically concentrated their marketing and engineering efforts on the biggest or wealthiest markets, such as the United States, Europe and China. In the developing world they focused on cheaper cars with older technology. This has left companies like Stellantis, GM, and VW vulnerable to a flood of cheap Chinese imports with better software and safety features, according to Felipe Munoz of JATO Dynamics, a research firm. "Legacy automobile manufacturers were sleeping." "Now they are paying for it," said he. "The real fight between Chinese automakers and legacy carmakers does not take place in Europe. It is not taking place in the United States. "It's happening in emerging market countries." At a September investor's event, Antonio Filosa (CEO of Stellantis) was asked how the company would react to Chinese competitors. He said that Stellantis, which has a market share of 24% in South America and the Middle East, would also follow this model for markets such as Africa and the Middle East, by building cars locally to suit local tastes. Stellantis declined to comment on Filosa’s recent remarks. Faced with increasing Chinese competition, GM announced in August that it would develop South American cars jointly with Hyundai to reduce costs. CHINA'S AUTO IMPORTS GO TO RUSSIA AND MEXICO China is the world's biggest auto exporter. The United States has essentially banned Chinese brand vehicles through trade barriers aimed at safeguarding national and economic security. GlobalData estimates that Chinese automakers will likely end the year with more than 200,000 sales and a 14% share of the market south of the U.S.-Mexico border where there are few EVs sold. Legacy brands like Fiat, Ford, and Chevrolet are losing market share. GlobalData predicts that Chevrolet Mexico sales will be 52,231 this year. This is a decrease of more than 24% from 2023. Mexico announced in September that it would increase tariffs on Chinese vehicles from 20% to 50%. The government claimed this would protect jobs, but analysts argued the move was an attempt to appease Washington. U.S. officials pressured Mexico to limit trade with China in order to prevent China from using Mexico as an "backdoor" to avoid U.S. tariffs. Analysts called the move a tactic to placate Washington. Chinese automakers are also facing political challenges in Russia. Mexico became China's largest auto-export destination this year after Moscow increased fees on Chinese imports. GlobalData reports that Russia increased the tax after China overflowed its market. According to GlobalData, China's share grew from 21% in 2020 to 64% or approximately 900,000. These fees have slashed Chinese imports to Russia. Requests for comments on Chinese auto imports from the governments of Russia and Mexico were not answered. South Africa, like Russia and Mexico, has an industry at home to protect. This includes global automakers that have a large footprint in manufacturing. The government has encouraged Chinese automakers in South Africa to build factories, while threatening to impose tariffs on cheap imports. According to JATO Dynamics, Chinese automakers controlled 16% of the South African car market during the first half. This is up from 10% a few years ago. The Chinese sold almost 30,000 gasoline cars - but only 11 electric vehicles. GlobalData reports that Toyota had the largest South Africa sales decline among traditional automakers, with a drop of almost 15%, or 93,805 cars. Changan, a state-owned company, is launching five new vehicles in South Africa. This includes two battery-powered models. However, the best-seller, according to Changan, will be its diesel-powered pickup truck, or "bakkie", as it's known locally. Marinus Venter who manages Changan for Jameel Motors, said that the EV market would take longer. CHINESE PICKUPS: A NEW FRONTIER In Chile, there are only a few charging stations scattered along the 2,600 miles (4200 km) of mountains and seaside terrain. According to the local auto-industry association, Chinese automakers now account for almost a third of the market in Chile. GlobalData reports that their growth came at the expense for legacy brands such as Chevrolet, Nissan, and Volkswagen, which saw sales fall between 34%-45% in 2017. Chinese brands in Chile are more likely to follow the strategy of a traditional automaker like Toyota, which has sold few EVs worldwide. Vernooij is the Dongfeng manager for Europe. He said that Dongfeng, like other state-owned companies, is actively targeting emerging markets in order to increase sales. Dongfeng offers a wide range of vehicles in Chile, including sedans, vans, pickups, and SUVs. Vernooij stated, "We must win." If you want to be as successful as Toyota, then you can't leave any stone unturned. According to JATO Dynamics, Chinese brands sold less than 1,000 EVs but more than 25,000 internal combustion vehicles in Chile during the first half. Dongfeng, a long-time China-based joint venture partner of Nissan, sells a version Nissan's truck in Uruguay. The Dongfeng Rich 6 resembles a Nissan Frontier, but with a different exterior and an older Nissan V6 motor. Nissan's spokesperson confirmed that the Rich 6 was based on the Frontier, and jointly developed by both automakers. According to Uruguay dealers, the Nissan starts at around $30,990, while the Dongfeng is priced at approximately $21,490. Mariana Betizagasti (33), from Durazno in Uruguay, bought a Rich 6, to handle the heavy work on a farm, such as hauling feed and transporting animals, that her Renault pickup could not do. She said that the low price sealed the deal. "You can get two Chinese trucks at the same price as one traditional brand from Uruguay." Nissan's spokesperson refused to comment on whether Nissan makes money from its overseas sales, or the competition that Chinese automakers pose. Nevertheless, many Chinese automakers sell their exports at prices that are higher than the ones they receive for similar models on China's fiercely competitive market. Yan Jun, executive vice president of Jetour International and Chery's Jetour Brand, stated that Chery will maintain a price-conscious policy as the brand expands into every European country before 2027. In an interview, he stated that "Right Now, not many automakers in China make money." "We do not want to be involved in another price war."
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INSTANT VIEW - Saudi Arabia projects a budget deficit of $44 Billion in 2026
Saudi Arabia, which is the top oil exporter in the world, approved its budget 2026 on February 2. It forecasts a deficit next year of 165 billion Riyals, and deficits until 2028, as it prioritizes its spending to meet Vision 2030 goals. Here are some comments on the budget from Saudi officials, analysts and economists: SPA, the state news agency, quotes MOHAMED BIN SALMAN as CROWN PRINCE and Prime Minister: The 2026 budget confirms that the government is determined to improve the resilience and flexibility in the local economy. This will contribute to its sustainable development and enable it to overcome challenges and fluctuations in the global economy. The Kingdom will continue its focus on diversifying economic base, encouraging investment and accelerating pace of economic transformation, in line with Vision 2030. MONICA MALIK, CHIEF ECONOMIST OF ABU DHABI COMMERCIAL BANK "Government expenditures remain high, and are supportive of non-oil activities despite budgeted cuts in government spending. Capex spending is expected to drop again in the budget, after having dropped in 2025. The PIF is responsible for a large part of the investment activities, with the goal of attracting private investors. The budget continues to emphasize the importance of progressing with strategic key projects. JUSTIN ALEXANDER IS DIRECTOR OF KHALIJ ECONOMIC AND GULF ANALYST FOR GLOBALSOURCE PARTNERS. The headline revenue and expenditure for 2026 are the same as the PBS (Pre Budget Statement), but we now have some indications of how to cut spending by -1.7%. The -6 percent capex cut is surprising, given the focus on projects. It also includes a further drop in goods and services spending. NAIF AL-GHAITH, CHIEF ECONOMIST AT RIYAD BANK: The budget is both expansive and disciplined. It supports Vision 2030’s ambition of diversifying the economy. Increased public investment builds infrastructure, stimulates non-oil industry, and creates conditions for private-sector development. The budget reflects Vision 2030's shift in the economic base. We expect the economy to grow by 5% this year, and 4.5% next year. (Reporting by Rachna Uppal, Federico Maccioni, Nayera Abdallah, Timour Azhari, Utkarsh Shetti Editing by Frances Kerry)
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After the departure of its co-founder, Gunvor's new CEO insists that business will continue as usual.
Gary Pedersen stressed that business was as usual at Gunvor, the Swiss commodities trader, during an interview on Tuesday. A day earlier, Pedersen had taken over following a sudden management buyout from co-founder Torbjorn Tornqvist. The management buyout announcement on Monday was a surprise to many and marked the end for Tornqvist after 25 years of leading Gunvor. Pedersen became the first American leader of a major Swiss commodities firm since Marc Rich who was indicted over tax evasion charges and other offenses. Gunvor has been scrambling to repair its relationship with the U.S. since the Treasury labeled it as "the Kremlin’s puppet" and sabotaged its purchase of the international assets of the sanctioned Russian company Lukoil. Gunvor's business partners and creditors were worried by the statement. Pedersen told me by phone that all of the core banks with whom we had been signed were with us. He also said that the counterparties worked with him normally. The GUNVOR Headquarter is staying in Geneva Pedersen who has been with Gunvor for about a year, after having overseen refined products trade at hedge fund Millennium Management from 2022 onwards, confirmed that the trading house's headquarters will remain in Geneva. He said there was no plan to rebrand Gunvor after Tornqvist’s mother. Pedersen stated that his goal is to be as disruptive as possible. He will spend his time in the U.S.A. and Europe, and has spent more than half of his career abroad. Gunvor has performed "pretty well" in the second part of the year, Pedersen stated, pointing out that the company is backed by a solid team of traders, despite some turnover early this year. Oil traders had a tough start to the year, as a sudden drop in commodity prices caught them off guard. Profits also fell from their previous record highs. Gunvor, in particular, struggled last year with some misplaced bets on crude oil and lost its most senior traders including its global head for crude. Reporting by Shariq Khan in New York, and Robert Harvey in London. Editing by Rod Nickel.
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Google-backed TAE Technologies enters into a joint venture with UK's Nuclear Agency
TAE Technologies is a private company that has been backed by Alphabet, Google, and Chevron. On Tuesday, it announced a joint venture to develop neutral beams in nuclear fusion with the United Kingdom’s nuclear agency. The UK Atomic Energy Authority has agreed to invest 5.6 million Euros ($6.50 Million) as equity in a new venture, TAE Beam UK. Nuclear fusion, a new technology, aims to harness the same process that powers our sun in order to produce electricity. It promises a vision of unlimited energy, free from pollution, radioactive waste and greenhouse gases. Nuclear technology is a growing industry, and countries like the U.S., China, Italy and the UK are searching for companies that can provide nuclear technologies to industries such as healthcare and defense. TAE Technologies stated that the partnership would enable it to develop next-generation neutral-beam systems for fusion applications and other related applications more efficiently. The company said it would design, develop, and manufacture neutral beams to be used in fusion. It will also adapt its accelerator technology to cancer therapy, food security, and homeland safety. "Together we are building critical infrastructure for fusion supply chains and ensuring the U.S. - UK partnership can remain central to the future fusion economy," CEO Michl Binderbauer stated. The company stated that the project will deliver the first short pulse beams in 18 to 24 month. ($1 = 0.8618 euros) (Reporting by Dharna Bafna in Bengaluru; Editing by Shreya Biswas)
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Investors watch Fed rate cuts as gold falls due to profit booking
The gold price fell by over 1% Tuesday, as investors took profit after a six-week peak in the previous session. They also awaited important U.S. data before next week's Federal Reserve policy meeting. By 1109 am, spot gold had fallen 1.4% to $4173.91 an ounce. ET (1609 GMT). U.S. Gold Futures for February Delivery were down 1.6% to $4,205.10 an ounce. Peter Grant, senior metals analyst at Zaner Metals and vice president of the company, said: "It is probably just some profit-taking... The market has focused on rate cuts expectations in recent months and they remain fairly steady." "We are in an upward breakout pattern and I like gold at $5,000 early in the New Year." The recent data showing a slowing of the U.S. economic growth, combined with the dovish comments of Federal Reserve policymakers has led to increased market expectations of a 25 basis-point cut in the Fed's rate at its meeting next week. Traders have priced an 87% chance of this happening. Investors will also be watching the November ADP Employment report, which is due on Wednesday, and the September Personal Consumption Expenditures Index (PCE), due Friday. This index is preferred by the Fed as an inflation gauge. Gold that does not yield is usually a good investment. According to the World Gold Council, central banks purchased 53 tons of gold during October, a 36% increase month-over-month. This is the highest monthly net demand seen since 2025. Silver fell from its record high of 58.83 dollars per ounce, which was reached on Monday. It eased 0.4% to 57.42 dollars an ounce. The price has increased by over 100% in the past year. "There are no new factors for the recent increase in silver prices." The known reasons for the recent price jump (in silver) still hold true, including tight supply which is reflected by low inventories at the Shanghai exchanges," Commerzbank stated in a report. They also expect another, moderate price rise to $59 over the next year. Palladium rose 1.2% to 1,441.37. Platinum fell 2.5% to 1,616.37. (Reporting from Anmol Choubey, Bengaluru; additional reporting by Polina Devitt. Editing by Shalesh Kuber).
Gunvor CEO says no rebranding for the moment, as he considers US pressure on Russia
Gary Pedersen said that Gunvor's CEO Gary Pedersen had no immediate plans to rebrand. He took over the company in a management buyout a day earlier, less than a week after the U.S. Treasury referred to Gunvor as the "Kremlin’s puppet."
Gunvor is the largest oil trading house in the world, with daily transactions that amount to 3% of global oil supplies. The company was founded by Swedish billionaire Torbjorn Tornqvist, and Russian oligarch Gennady Tichenko 25 years ago. They grew it into the biggest trader of Russian Oil in the 2000s.
Gunvor's 25 years of leadership ended with Monday's buyout of the management, described by Gunvor as a "definitive re-set" to clear up "misperceptions about Gunvor's past". Pedersen became the first American in many years to be appointed as the leader of a major Swiss commodities firm.
CEO: CORE BANKS "ARE WITH US"
Pedersen faces immediate challenges in managing the fallout of the U.S. Treasury's statement made in early November, which sank Gunvor’s planned acquisition of Russian oil company Lukoil’s international assets. The U.S. Treasury's statement also caused reputational damage and forced Spanish bank Santander to withdraw from funding arrangements with Gunvor.
Pedersen has to allay fears that Gunvor's business partners and creditors could cut ties.
Pedersen told.
Pedersen said that business was as usual at the trading house. He said that his focus was to get the new management structure of the company up and running.
He said that Gunvor was a strong brand and there were no immediate plans to change it.
Pedersen stated that his goal was to be as disruptive as possible.
On Tuesday, the U.S. Government kept up pressure on Gunvor when Treasury Secretary Scott Bessent announced on social media how Santander set an example by pulling credit for Gunvor. The post was linked to the original statement about "Kremlin puppets".
Gunvor declined comment on Bessent’s post. Santander and the Treasury didn't immediately respond to requests for more information.
FAST RISE
Pedersen moved quickly after joining Gunvor a little over a year before. He had been with the hedge fund Millennium Management for two years, overseeing fuel trading.
Pedersen stated that despite the suddenness of the purchase, talks about Gunvor's joining had begun in 2023.
Pedersen stated, "We knew there was the potential of this opportunity to take over."
Pedersen stated that Gunvor has performed well in the second half this year. He added that the company had a solid team of traders, despite some turnover in earlier years. Gunvor and other oil-focused trading firms had a difficult start to the year, as a drop in benchmark prices caught many by surprise. Profits in the oil industry have fallen from record highs of previous years. Gunvor lost several senior traders, including the global head of crude, due to some misplaced bets on crude.
Risk-taker with PHYSICAL EXPERIENCE AND FUND EXPERIENCE
Oil traders from rival mercantile firms said that Pedersen is known for taking bold trading positions and making bold market predictions.
Pedersen was born in Nebraska and spent his first 20 years of energy career working in different roles for the private U.S. conglomerate Koch, before joining U.S. oil trader Northville, in 2016.
Former colleagues of Pedersen say that he is an expert in crude and fuel trading, and has a keen eye for the bigger picture.
Pedersen's former colleagues said that Gunvor, which is a large trading firm with a portfolio of physical assets, would be a more suitable place for him to pursue his aggressive trading style than Millennium, which was a more financial-oriented company.
Pedersen stated that combining his skills from both physical and financial trading shops is what attracted him to Gunvor.
"I've always felt that if we combined these two, we would be able to do much better in terms of our return on equity." He said. (Reporting from Shariq Khan, New York; and Robert Harvey, London; editing by Rod Nickel Alex Lawler Simon Webb
(source: Reuters)