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Valero is preparing to restart Port Arthur oil refinery in Texas after the blast, according to sources
Valero Energy Corporation is preparing to restart the 380,000 barrels-per-day (bpd),?Port Arthur oil refinery in Texas this week. The plant was shut down on Tuesday following a blaze and explosion the day before. Sources said that workers were blocking pipelines feeding the damaged 47,000 bpd Unit 243 Diesel Hydrotreater on early Wednesday morning. They added that the shutdown was necessary to put out the fire that started on Tuesday. In a regulatory filing, Valero stated that no injuries had been reported from the explosion, which was triggered by the release of process fluid on unit 243. The explosion could be felt up to 18 km away from the plant, which is located in east Texas near the Louisiana border. The 'outage' comes at a time when refining margins are high due to the closure of the Strait of Hormuz (by Iran) amid the conflict that has impacted the Middle East region. This has led to a significant reduction in supply of refined products. Sources said that once the feed lines for unit 243 are blocked, Valero would return natural gas to plant, and light the safety flare system and boilers in order to generate steam to drive utilities and heat production units. Once 14 other production units are back to operating temperatures, feedstock can be introduced and the process will begin of getting output to specifications. Refinery production will be brought to planned levels as close as possible to maximum capacity. In compliance with U.S. Environmental Rules, hydrotreaters remove sulfur during production using?hydrogen. (Reporting and editing by Christian Schmollinger, Bernadettebaum and Erwin Seba)
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Russian attacks knockout power to thousands of Ukraine's north
Two?energy?facilities in Ukraine's Chernihiv Region were damaged by Russian attacks, leaving?212,000 customers without?power. A?regional?electricity distribution company? said on Wednesday. Chernihivoblenergo reported that nearly 150,000 customers in the city and surrounding districts of Chernihiv were without electricity after a Russian airstrike damaged an energy plant in?the Chernihiv District. After the attack on the Nizhynskyi District energy facility, it was later revealed that another 62,000 consumers were left without electricity in three other districts of the?region. Ukraine's air force said that Russia launched 147 drones against the country overnight. Of these, 121 were neutralised or downed. Russia has targeted Ukrainian energy installations throughout the war. This has caused regular blackouts lasting hours across the entire country. Ukraine has also attacked Russia's energy infrastructure, including oil refineries and depots, as well as?transport terminals. Chernihiv suffered from power outages during the winter, as Russia launched its largest bombing campaign in the four-year conflict against Ukraine's electricity grid. A previous attack on the area left many areas without electricity on Saturday. The regional governor said on Telegram that close to 21,000 residents in the town of Slavutych (in the Kyiv region) were also temporarily without power after an attack early this morning. The governor said that backup power has been installed for critical infrastructure.
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Copper rebounds on softer dollar, Middle East de-escalation hopes
Prices of copper rose on Wednesday as a weaker dollar and renewed hope for a 'de-escalation' in the Middle East war helped to boost?demand? prospects. The Shanghai Futures Exchange's most traded copper contract ended daytime trading up 1.14%, at 95,590 Yuan ($13.864.67) per ton. As of 0722 GMT, the benchmark three-month copper price on London Metal Exchange rose 1.19% to $12,244.5 per tonne. Both copper prices in Shanghai and London 'lost ground' on Tuesday, as rising energy prices and a protracted Iran war heightened concerns about inflation and global economic growth. The market sentiment improved significantly on Wednesday after U.S. president Donald Trump stated that the U.S. is'making progress' in its efforts to negotiate an end of the war with Iran. This includes winning an important concession by Tehran, without providing details. Iran, however, has rejected Trump's remarks, saying that the U.S. is negotiating with themselves. The expectation of a deescalation in tensions between the U.S. "The expectation of a de-escalation between the?U.S. It highlights the market's vulnerability due to geopolitical shifts, but a lot of uncertainty remains regarding U.S. - Iran negotiations. The base metals complex also received a boost from a softer dollar, which made dollar-priced goods cheaper for buyers who used 'other currencies. SHFE aluminium gained 0.63%. Nickel gained 1.08%. Lead advanced 0.3%. Tin climbed 1.91%. Zinc?edged downwards by 0.28%. Nickel rose by 2.06% among other LME metals, while lead gained 0.5%. Tin grew by 0.64%. Zinc advanced 0.74%. Aluminium fell 0.41%.
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After talks with Iran, a Thai tanker successfully transits the Strait of Hormuz
A Thai oil tanker safely crossed the Strait of Hormuz after diplomatic coordination between Thailand and Iran. The vessel's owner and the Thai government confirmed this on Wednesday. After successful discussions between Thai Foreign Minister Sihasak Phuangketkeow, and Iran's Ambassador to Thailand, the tanker owned by Bangchak Corporation crossed the strategic waterway Monday. "I asked that if Thai vessels need to cross the strait they could assist in ensuring a safe passage?" Sihasak spoke to reporters late on Tuesday. They said they would handle it, and asked for the names of the vessels that would be passing through. The U.S. and Israeli war on Iran has cut off about one-fifth of all oil and liquefied gas that passes through the Strait of Hormuz. This has caused widespread disruption. Thailand's gas stations have seen long queues and soaring transportation costs since the conflict began in February, despite government assurances that the supplies are sufficient. The Thai tanker made a safe transit two weeks after a projectile struck the bulk carrier Mayuree Naree, flying the flag of Thailand. A fire broke out on board and the crew was forced to evacuate. According to the Thai Foreign Ministry, Iranian and Omani officials have arrived on board the vessel. However, Thailand still awaits information about the fate of three crew members who are missing. Sihasak stated that another Thai vessel owned by SCG Chemicals is also waiting for a?clearance' to transit the Strait. "FRIENDS HOLD A SPECIAL PLACE" Bangchak issued a press release stating that its vessel was currently returning to Thailand after being anchored in the Persian Gulf for 11 days. The?Iranian and Thailand's foreign ministry coordinated the operation, according to Bangchak. A source from the Thai Foreign Ministry and the company both said that no payment had been made. Iran told the United Nations Security Council (UNSC) and the International Maritime Organization (IMO) that non-hostile ships could transit the strait if coordinated with?Iranian officials, according to a report on Tuesday. The Thai embassy also coordinated with Omani authorities via its embassy in Bangkok to ensure the Bangchak's transit. Iran's embassy said in a posting on X that the passage of the Thai vessel reflected the strong ties between both countries. It said that "Friends are special." (Reporting and editing by PanuWongcha-um, ChayutSetboonsarng)
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Reliance Jio woos potential investors by selling 8% of stakes individually in the IPO, according to sources
Sources familiar with the situation said that Indian billionaire Mukesh Ambani's Reliance Jio Platforms held discussions with a group of prestigious foreign investors to sell 8% of their individual stakes in the upcoming Mumbai listing for the company that will transform telecoms into artificial intelligence. Ambani’s Jio Platforms is expected to file for approval in Mumbai of its IPO as soon as this week. KKR and Vista Equity Partners are also big investors. Investors include three?Gulf sovereign fund, the Public Investment Fund, Mubadala, and Abu Dhabi Investment Authority. One of two sources who were involved in the IPO said that the stake sale would be "around 8%" for everyone. The discussions were confidential, so the source spoke on condition of anonymity. Reliance or the investors didn't immediately respond to comments. Calculations show that each investor's?sale? of 8% of its holdings is equivalent to about 2.5% Reliance Jio’s total outstanding shares, as planned. Meta selling 8% would be a sale of?0.8% by the US. For example, a tech giant. The final figures could change even though the focus of the discussions has been on each investor selling 8 percent of their holding.
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Reports of a ceasefire in the Middle East have led to a rise in oil prices and a decline in stock prices
Stocks rose on Wednesday and oil prices fell, on reports that the U.S. is seeking a ceasefire for one month in its war against Iran. A 15-point plan was sent to Iran?for discussion. This raised hopes of a breakthrough which could help restore oil from 'the Gulf. S&P futures increased by 0.7% during the Asia day. European futures grew by 1.2%, and FTSE Futures rose by 0.7%. These modest gains reflect investor caution. Brent crude futures fell 5% to $99 per barrel. Japanese stocks rose by 3% while Australian and South Korean markets rose by 2%. This was a recovery of recent losses, but not the weeks-long declines since the war began. The market is trading headlines right now, said Kerry Craig. He's a global market strategist with J.P. Morgan Asset Management. "There's definitely a positive vibe." There are still questions about what will happen next and if there is a real ceasefire. Donald Trump, the U.S. president, said that the U.S. made progress on Tuesday in negotiating a peace agreement with Iran. He also claimed to have won an important concession. A source confirmed that Washington sent Iran a 15 point settlement proposal. According to Channel 12 in Israel, citing sources, the U.S. wanted a one month ceasefire for the discussion of the 15 point plan. Tehran denies direct talks and on Wednesday, the official IRNA News Agency quoted a spokesperson from the armed forces as saying that the U.S. was "negotiating with themselves". CAUTIOUS OPTIMISM The lack of clarity on when or if oil exports from the Persian Gulf will resume, and signs that oil prices are already causing economic damage, has tempered the markets' response to Trump's concessions. Brent crude oil prices are still up by 35% since war broke out and have reached a level of $100 per barrel. The dollar has only marginally declined this week and was stable in Asia on Wednesday, buying 158.9yen and trading for $1.1594 per Euro. The interest rate markets also expect central bankers to take extreme measures in order to combat inflation. They are predicting a series hikes for Europe, Britain and Australia over the next few months, as well as a halt in any further U.S. rates cuts. In Tokyo, benchmark 10-year Treasury yields decreased by 4.4 basis points and fell to 4.35%. Two-year yields also dropped slightly to 3.87%. Marc Velan is the head of investments for Lucerne Asset Management, a Singapore-based asset management firm. People are reluctant to pursue moves that are solely headline-driven, and which can be reversed?quickly. There are also growing concerns in the credit markets, where there is stress. Ares Management became the latest asset management firm to limit withdrawals from a private debt funds on Tuesday. This spooked investors. The shares of Ares, a company that will manage approximately $623 billion of assets by the year 2025, dropped 1% on Monday. So far in 2018, they are down 36%. (Reporting and editing by Sam Holmes; Tom Westbrook)
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MORNING BID EUROPE-Deal, or no deal?
Tom Westbrook gives us a look at what the future holds for European and global markets. Donald Trump, U.S. president, told reporters in the White House that "we're currently in negotiations". He boasted about the Iranians making a "tremendous amount of money" concession. However, he did not provide any?further information. He said, "It was an incredibly nice thing they did." Iran has not confirmed the claim, and an official Iranian news agency reported that a spokesperson for the armed forces said that "the U.S. was negotiating with itself". The tone of the speech has caused oil to fall and stocks to rise in the Asia session. However, the gains are not huge. Israel struck Tehran, however, on Wednesday. Semi-official Iranian reports claimed that the strike was in a residential area. Iran, however, has denied being involved in any direct negotiations to stop or pause hostilities. The?New York Times said on Tuesday that Washington had sent Iran a plan of 15 points to end the conflict. Israel's Channel 12, citing three sources, reported that the U.S. wanted a one-month ceasefire in order to discuss the 15 point plan. A source familiar confirmed that the U.S. sent a plan to Iran, but did not provide any further details. The markets are "hesitating" to go too far for a number of reasons. One is that the negotiations may not be substantive or will fail, and another is the fact that the economic damage continues to grow. The growth of the Eurozone private sector has almost stalled in the last month, as inflation expectations have risen and delivery times have risen. This is further evidence that the U.S.-Israeli war on Iran is causing a real drag to the region. As the Mideast oil and natural gas infrastructure has suffered damage, Asian currencies are under pressure. South Korea's National Pension Service is working to increase its strategic hedging rate over the long term in order to "stabilise the fragile won", reported on Wednesday. The report cited sources familiar with the fund's conversations with the central bank and government. Gold has recovered a little with the mood, but is still on track for its biggest monthly fall since 2008. This shows how few investors have been able to hide from the war. Profit-taking after a two-year rocketing rally has knocked down this traditional safe-haven. Cash is the one thing that keeps things moving. U.S. Money Market Funds have increased by about $60 billion since the 28th of February to reach a record $7.86 trillion. The following are key developments that may influence the markets on Wednesday. News from the Middle East Economic indicators: British CPI and German IFO; European consumer confidence Carnival Corp. Earnings
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GRAINS-Chicago soyabeans fall in anticipation of Middle East ceasefire
Chicago soybean futures declined on Wednesday. They tracked losses in soyoil due to lower crude oil prices, based on reports that the U.S. was seeking a ceasefire of a month for its war against Iran. The price of corn and wheat futures also declined. As of 0325 GMT, the?most active?soybean contracts on the Chicago Board of Trade slipped 0.2% to $11.52-3//4 a bushel. Soyoil dropped 0.8% to 65.21cents per pound. CBOT corn fell 0.7% and wheat dropped 6%, to $4.59-1/2 per bushel. The oil prices fell more than 5% on Wednesday, as a result of reports that the U.S. had sent Iran a plan in 15 points to end their war. Brent crude futures were down $6.21 or 5.9% to $98.28 per barrel at 0058 GMT after falling to as low as $97.57. U.S. West Texas Intermediate crude futures fell $4.67 or 5.1% to $87.68 per barrel after dropping as low as $86.72. The price of grains and oilseeds has tracked crude oil fluctuations during the conflict. This is due to the use corn and soyoil for biofuels, and the interest investors have shown in these crops as a hedge against inflation. Brazil's soya exports to South America in March dropped by 17.9% compared with the average for the entire month of last year. During the rally caused by the Iranian Crisis, the wheat export price in?Russia, a major grain supplier, remained at a level that was 'nearly three weeks highsreached. Analysts have raised their March shipment forecasts due to accelerated exports. The Russian government, which controls up to 40% of global ammonium nitrate trade, announced on Tuesday that it would stop exports for a month, until April 21, in order to ensure a sufficient supply of fertilizer during spring planting season. From disruptions in Gulf shipping to sharply increased gas prices, the impact of the 'war' on fertilizer markets could have knock-on effects for crop production.
Sources say that Reliance Jio is in talks with investors about selling 8% of the individual stakes at the IPO.
Sources familiar with the situation said that Indian billionaire MukeshAmbani's?Reliance Jio Platforms? has been in talks with?13?marquee investors to sell 8% of their individual stakes at the upcoming Mumbai listing for the company which will be transforming its telecoms into AI.
Ambani’s Jio Platforms is expected to file for approval in Mumbai of its IPO as early as this coming week.
The list includes Meta with a stake worth 9.99% and Google?with 7.73%. Vista Equity Partners, KKR and KKR are also big investors. Investors include three sovereign Gulf funds: the Public Investment Fund (PIF), Mubadala, and Abu Dhabi Investment Authority.
One of two sources who were involved in the IPO process said that the stake sale would be "around 8%" for all. The discussions were confidential, so the source spoke under condition of anonymity.
Reliance and the other investors have not responded to comments immediately.
Calculations show that each investor's sale of 8% represents about 2.5% Reliance Jio shares in total, which is what the company had planned.
Meta, if it sold 8% of its 9.99% stake would be equivalent to a 0.8% stake by the U.S. technology giant.
The final figures could change even though the focus of the discussions has been on each investor selling 8 percent of their holding.
Reliance Jio's IPO will be structured as an "offer-for-sale", a strategy that is common in India, where existing shareholders sell their stakes to the public or other investors.
The second source who is aware of IPO plans said that the total stake sale would be between 2.5% and 3%. Reliance is willing to give retail investors money and has not yet decided on the valuation of the company.
Jio Platforms will raise more than $20.5 billion in 2020 from the sale of stakes to foreign investors.
Jefferies, an investment bank, estimated the valuation of?Reliance Jio at $180 billion in November. In January, sources said the IPO may be worth up to $4 billion. However, final figures will be determined later.
Reliance Jio Platforms hired 17 banks to handle its Mumbai stock exchange listing.
(source: Reuters)