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Officials say six people were killed in Balakliia and Sumy by Russian airstrikes.
Authorities said that on Thursday, firefighters worked to put out fires and clear debris in the eastern Ukrainian city of Balakliia following Russian attacks on homes overnight. In the northern region of Sumy, at least '19 people were wounded and three killed in Russian airstrikes. The Ukrainian police reported on Telegram that 12? more people were injured in the city of Sumy following an attack using guided aerial bombs. Six people were injured in a 'drone attack' on a van in the southern region of Kherson. Both Russia and Ukraine deny that they have targeted civilians in the conflict sparked by Russia's invasion?of?Ukraine?in February 2022.
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SBM Offshore's revenue has more than doubled, resulting in a new upward revision of its outlook
SBM Offshore, a Dutch floating production specialist, raised its '2026 forecast for the second year in a row on Thursday. The company said that the first-half revenue had more than doubled due to the sale of FPSO One Guyana and increased activity. The company's consensus estimate of $4.65 billion was beaten by the $4.9 billion generated in revenue. Earnings before interest, taxes, depreciation and amortization (EBITDA), which is a measure of earnings, rose 92%, to $1.3 billion. The company increased its 2026 revenue forecast from $6.9 billion to $7.6 billion and raised?its EBITDA directional target from $1.8 billion to $1.9 billion. The company stated that the revenue upgrade reflected both new contracts won by Brazil's state run oil?firm,?Petrobras, and additional work completed during the period. The pro-forma 'directional backlog' increased by 14% at the end of June to $35.6 billion. The company employs a 'direction reporting' system, which "books revenue from payments made during construction phase before leases start."
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MORNING BID - AI stocks are learning to fly, but they don't have wings
Satoshi Sugiyama gives us a look at what the European and global markets will be like tomorrow. Tom Petty sang in "Learning to Fly" that "what goes up, must come down". This is a pattern that can be seen in AI stocks. South Korea's KOSPI, a tech-heavy stock, fell 4% on Thursday in Asia after gaining nearly 6% just the day before. Japan's Nikkei also fell 1.6% after a jump of 3.66%. Taiwan's benchmark index was flat following a gain of nearly 2.9%. These moves were in line with losses on Wall Street as Elon Musk's AI and satellite company SpaceX, and U.S. listed chipmaker Advanced Micro Devices saw their stocks tumble due to recurring concerns over massive AI spending. The U.S.'s conflict with Iran is also characterized by a similar pattern of recurring and reversing. Reports said that a proposed deal between Iran and Oman would give Tehran control over inbound traffic to the Strait of Hormuz. This is a vital route for global energy supply. The U.S. did not immediately react to the proposal. While U.S. president Donald Trump claimed a deal was imminent to reopen?the strait, U.S. officials repeatedly said they would not agree to Iran having control of access to the strait. Investors are waiting for further developments. Oil prices were trading in the range of $70-a-barrel. Brent crude futures rose 0.45% to $80.91 a barrel, and U.S. Crude?edged 0.31% higher at $75.45. Traders also considered the Federal Reserve’s rate path in advance of Friday’s closely-watched nonfarm payrolls report. The ADP private employment data released on Wednesday showed that U.S. private sector?job creation slowed down in July compared to June, and fell short of market expectations. A survey by the Institute for Supply Management showed that the services sector was growing strongly, but input costs were also rising. This could lead to inflation. The following are key developments that may influence the markets on Thursday. Economic Events Germany's industrial orders for June United States: jobless claims (Reporting and editing by Sonali Paul; Satoshi Sugiyama)
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South Korea's President orders full-scale response to heatwave
The heatwave in South Korea is set to peak on Thursday over Seoul, with temperatures expected to reach 39 degrees Celsius. This extreme weather has already been blamed for 20 deaths. "Extreme heat of a magnitude we've never experienced continues day after day." "Heatwave conditions that were once only seen in foreign news reports have now become our reality," said President Lee Jae Myung at a heatwave meeting on Thursday. Lee instructed local and ministry governments to mobilize all personnel and resources available until the heatwave subsides. He stressed the importance of 'protecting lives and safety and strengthening safeguards for vulnerable citizens, and enforcing stricter enforcement of rest breaks during the hot hours for outdoor workers. Seoul's forecast temperature is close to the 39.6 C record set by the city in August 2018 during its last heatwave. Forecasters predict that Seoul could experience one of the hottest days ever recorded in its modern history. According to the Korea 'Meteorological Authority (KMA), temperatures in some neighbourhoods barely dropped below 30 C over night, while media showed people seeking shelter in department stores, streams and other air-conditioned spaces. Media reported that the Korea Baseball Organization canceled all 10 games scheduled on Wednesday and Thursday because some spectators fainted due to the heat, including a fan who collapsed at a game in Incheon. Meteorologists claim that Typhoon Dolphin may have contributed to the hot conditions, even though it poses no direct threat to South Korea. The KMA said Dolphin had helped to strengthen the?easterly wind that crosses the Korean Peninsula's mountains and descends over western regions in hot, dry air. This has intensified heat in Seoul and other places. (Reporting and editing by Ed Davies, Stephen Coates, and Kyu-seok Shim)
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Iran's progress on the Hormuz Agreement cited as a reason for oil prices to drop
Investors cautiously awaited signs of progress in the U.S. Iran peace 'deal' and the reopening of the Strait of Hormuz. Brent crude futures dropped 33 cents or 0.42% to $79.12 per barrel at 0418 GMT. U.S. West Texas Intermediate Futures fell 42 cents or 0.56% to $74.80 per barrel. Brent settled slightly higher on Wednesday while WTI edged down. Iran and Oman reached an agreement on the geographic coordinates of a shipping route that would pass through the Strait of Hormuz. A joint announcement is being finalised if certain third parties do not interfere. Yuki Takashima is an economist with Nomura Securities. He said that "some selling pressure" emerged after reports of progress in the talks between Iran and Oman. Investors are closely monitoring whether both sides can reach an agreement, Takashima said. Prices have returned back to levels when the United States and Iran signed a interim peace accord on June 17. According to a senior?Iranian official and two regional officials, a proposed deal?between Iran & Oman would allow Tehran to control ships entering the?Gulf via the Strait of Hormuz. This is one of the largest concessions made to Iran to date. The U.S. did not immediately comment on the proposal. Although President Donald Trump said that a deal to reopen the strait was imminent, U.S. officials repeatedly stated they would not agree to Iran having access to the most important energy trade route in the world. Iran warned Gulf states against any new U.S. attacks on its territory, claiming that this would trigger retaliation across the region's critical energy infrastructure, according to sources. Tehran is attempting to increase the cost of military actions by threatening Washington’s closest regional allies. The'real pivot point is now the direction of U.S. Iran discussions. Meaningful progress in this area is necessary before energy flows can be realistically restored," ING -analysts stated on Thursday. Shipping data shows that Gulf oil and condensate exported in July were mostly stable and about 40% lower than pre-war levels. Yemen's Iran aligned Houthis claimed that a Saudi tanker was attacked by missiles off the coast of Yanbu, a port city in the Red Sea. Another Saudi tanker was also targeted with missiles from the Gulf of Aden. Saudi Arabia has not confirmed either incident. Takashima stated that concerns about Houthi attacks on Red Sea shipping are limiting optimism regarding the end of shipping disruptions in Middle East. The Energy Information Administration reported that U.S. crude stock levels rose on Wednesday as refineries slowed down processing and imported increased. Reporting by Yuka Obaashi in Tokyo, Siyi Liu from Singapore and Lincoln Feast. Editing by Sonali Paul.
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Copper prices at their highest level since mid-May, as US inventories increase amid tariff uncertainty
The price of copper rose to its highest level in 12 weeks on Thursday, as the uncertainty surrounding tariffs continued to drive more metals into the United States. Benchmark 'three-month copper' on the LME dipped 0.08% to $14,099.50 per metric tonne as of 0325 GMT after touching $14,178 early in trade, a level not seen since May 13. The most active copper contract on SHFE rose 0.38% to 107,580 Yuan ($15.944.39) per tonne, after briefly reaching the highest level since May 14, at 108.030 yuan. The LME Cash Copper Contract Premium over the Three-Month Contract On Thursday, the spread increased to $117.50 per ton, signaling a tightening of supply in the near term. Since months, copper prices have been rising on the U.S. COMEX Exchange above the London benchmark due to uncertainty about?potential import duties. The COMEX front-month copper contract reached a new record on Wednesday. This maintained a large premium over LME Copper. COMEX inventories As of Wednesday, the number of short tons (653,300 tons) had increased to 720140. Stocks in LME-monitored warehouses The Shanghai Futures Exchange The meanwhile has continued to decline. StoneX Senior Metals Demand analyst Natalie Scott-Gray, in a Weekly Update, estimated that at least 1.2 millions metric tons had entered the United States after a Section 232 Investigation into Copper Imports was ordered in Feb 2025. Scott-Gray? added that 64% of the global visible copper inventories now reside in the United States. Amador Pantoja, a union leader, said that the suspension of the expansion project at Codelco's flagship El Teniente Mine, which is owned by the Chilean state miner Codelco, could last as long as two years. Codelco announced on Tuesday that it had halted its project to develop the Andes Norte underground section after recent studies revealed greater seismic risks than originally estimated. The broad market sentiment was still sensitive to the developments in the Middle East. Brent crude futures dipped a little bit lower. The oil benchmark has fallen over 12% in the past week. Aluminium ticked up 0.12% on the LME. Zinc remained unchanged, while lead grew by 0.11%. Nickel fell by 1.95% and tin dropped 0.94%. On the SHFE, aluminium rose 0.17%. Zinc rose 1.33%. Lead was unchanged. Nickel plunged by 2.16%. Tin added 0.26%. ($1 = 6.7472 Chinese Yuan Renminbi) Reporting by Dylan Duan, Lewis Jackson and Ronojojo Mazumdar.
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Gold reaches seven-week high on Strait of Hormuz, reopening hope
Gold rose for a fourth consecutive session on Thursday, reaching its highest level in seven weeks. This was due to lower oil prices, a weaker dollar, and lower Treasury yields. There were also growing expectations about the reopening of the Strait of Hormuz. By 0132 GMT, spot gold had risen 1% to $4,285.84 an ounce, its highest level since 18 June. Bullion posted its largest daily gain since February on Wednesday. U.S. Gold Futures increased 0.9% to $4345.80. The sharp rally was a result of the growing optimism that a diplomatic breakthrough is nearing completion in the Middle East. This would?increase the downward pressure on oil and make central banks less likely to increase rates. He added that a sustained break above 200-day moving median could pave the way for a stronger recovery towards the $5,000 mark. According to two senior Iranian officials and a senior Iranian official, a proposed deal between Iran & Oman would allow Tehran control of ships entering the Gulf via the Strait of Hormuz. On Thursday, oil prices fell. Due to concerns about energy-driven inflation, spot gold has fallen 19% since February 28, when the U.S. Iran conflict began. Gold tends to do better when interest rates are low, as it pays no interest. Market expectations of a U.S. interest rate hike in September have dropped from 67% to?55% two days ago. The yield on benchmark U.S. 10 year notes fell, and the U.S. Dollar?index also came under pressure. Dollar-priced goods become cheaper for holders of other currencies when the U.S. dollar weakens. Investors also await the release of the U.S. nonfarm payrolls data for July, scheduled to be released on Friday. ADP's national employment report revealed that U.S. private pay growth slowed down in July. Joshua Rotbart of J. said that a soft payrolls number would support gold further, while a strong recovery could create short-term pressure, as markets reassess their policy timeline. ?Rotbart & Co. Silver spot gained 0.1%, to $62.16. Platinum rose 1.7%, to $1764.10, after reaching its highest level since the middle of June. Palladium rose 1.1%, to $1,377.83. This is the third session in a row that palladium has risen.
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The US-Iran peace talks and Iran-Oman talks have boosted hopes of a US-Iran deal, despite the oil prices dropping.
Investors weighed whether the progress of Iran-Oman talks could pave the path for a U.S. and Iran peace deal to end the five-month conflict and reopen Strait of Hormuz. Brent crude futures fell 37 cents or 0.5% to $79.08 per barrel at 0024 GMT. ?U.S. West Texas Intermediate futures fell 53 cents or 0.7% to $74.69 per barrel. Brent prices were slightly higher on Wednesday while WTI was a little lower. Yuki Takashima is an economist at Nomura Securities. She said that there was some selling pressure following reports of progress in the talks between Iran and Oman. Investors are closely watching to see if the two sides can reach a definitive agreement, he said. According to a senior Iranian official and two regional officials, the proposed deal between Iran, Oman, and the United States to end the U.S. - Iran?conflict, would give Tehran control of ships entering the Gulf via the Strait of Hormuz. This is one of the largest concessions made to Iran to date. The proposal was not immediately?U.S. The proposal was not immediately?US. While President Donald Trump said that a deal to reopen the Strait was imminent, U.S. officials repeatedly stated they would not agree to Iran having access to the most important route in the world for energy trade. Five sources claim that Iran warned Gulf States against any further U.S. attacks on its territory. This would lead to retaliation across the entire region. Tehran is attempting to increase the cost of military actions by threatening Washington’s closest regional allies. Yemen's Iran aligned Houthis claimed on Wednesday that they launched a "missile attack" on a Saudi tanker near the Red Sea port city of Yanbu in the Kingdom and another missile strike on a Saudi tanker in Gulf of Aden. Saudi Arabia has not confirmed either incident. Takashima stated that concerns about Houthi attacks hitting Red Sea shipping were limiting the optimism for a resolution to the Middle East shipping disruptions. Data from the Energy Information Administration showed that U.S. crude stock levels also increased as refineries slowed down their processing and imports increased. The EIA reported that crude inventories increased by 2.5 million barrels, to 407,000,000 barrels for the week ending July 31. This was in contrast with the expectations of analysts in a survey who expected a draw of 1.5 million barrels. (Reporting and editing by SonaliPaul; Yuka Obayashi)
Traders and trackers say Sinopec increases Russian oil imports in order to offset Mideast supply reductions
According to multiple trade sources and ship tracking information, China's state owned?Sinopec Corp., the world's largest refiner, increased purchases of Far East Russian Oil to compensate for Middle East oil supplies that were reduced by the Iran War.
Sinopec has been able to maintain a relatively stable output and export fuel surpluses on a strong margin due to its purchases of Russian oil, which is cheaper than competing grades from Brazil and West Africa. This was despite China's decision in March of limiting the overseas sale of fuel products, as a way of protecting domestic supply during trade disruptions caused by war.
According to sources who spoke under condition of anonymity, Sinopec purchased 30 to 40 shipments or 241,000 to 322,000 barrels per day of Eastern Siberia - Pacific Ocean (ESPO), for deliveries from July to September. This is 5%-6% of the refiner’s 5.2 million barrels per day processing capacity.
Sinopec's representative stated that the company doesn't discuss operational issues publicly.
"Sinopec’s crude demand appears to be at its lowest point following the relaxation of fuel export regulations, but recovery is still selective," said Emma Li. She's the lead China analyst for ship tracker Vortexa Analytics.
China, the world's largest crude buyer, has drastically reduced its total crude imports since the beginning of the Iran War. In June, purchases were down 41% compared to the previous year. It has however, lowered its fuel export limits for July and August.
Li said that rather than a broad-based increase in imports, the demand has shifted to barrels with better delivery certainty and lower shipping costs. These are primarily short-haul Russian Far East shipments as well as onshore inventories.
According to Li, Sinopec?saved 7.4 million barrels ESPO during July. The majority of these barrels were delivered into Rizhao Port, the main refining hub in Shandong Province.
According to Li and four traders that closely monitor ESPO trading, the refiner bought at least 10 ESPO cargoes in each of August and September. ESPO is usually shipped on Aframax vessels that can carry 740,000 barrels.
SAUDI CUTTING CUTS ARE STEEP
China and India are the largest Russian oil purchasers since the start of the Ukraine War, but China's state refiners including Sinopec suspended their purchases in October, after Washington imposed sanctions on top Russian producers Rosneft & Lukoil.
Beijing has not recognised what it calls unilateral sanctions and independent Chinese refiners continue to buy Russian oil.
Sinopec reported that it resumed Russian oil purchase in March and early April following a temporary U.S. exemption. The company purchased roughly 10 cargoes, and increased volumes as soon as the waiver ended, due to the Iran War reducing supply.
Four people with knowledge of the matter, who declined to provide further details, said that recent ESPO purchases were made through intermediaries. Sinopec began buying Russian oil with Chinese yuan in the early days during the Ukraine War.
Before the Iran War, nearly half of?Sinopec's crude oil was sourced from the Middle East. It was also one of Saudi Arabia's largest customers.
According to trade sources, Sinopec didn't buy any Saudi crude in June or July and only took 2 million barrels of oil in August. This is far less than the 20 millions Saudi barrels that it imported both in March and April, and less than one fifth of the average 11 million barrels per month it bought in the year before the Iran War began.
Traders said that September-loading ESPO would be discounted by $1 to $2 per barrel compared to Brent benchmark, and about $10 less than other grades like Middle Eastern Oman or Brazil's Tupi.
Before the Iran War, Russian ESPO crude was traded at a discounted price of around $10 per barrel. (Reporting Chen Aizhu; Siyi Liu; Trixie Yap, Additional reporting by Florence Tan. Editing by Tony Munroe & Tom Hogue.
(source: Reuters)