Latest News
-
RightBridge Ventures Agrees Reverse Takeover of Swemar
RightBridge Ventures Group has announced a proposed reverse acquisition of Swemar, which has entered into an agreement to acquire an offshore oil service company with operations across the Middle East, India, and South-East Asia.The company to be acquired by Swemar operates a fleet comprising Anchor Handler Tug Supply (AHTS) vessels and crew transportation vessels. It owns three vessels outright and operates an additional five to ten vessels under charter or management agreements.The acquisition marks a strategic first step toward establishing a strong maritime presence in Asia. It will provide RightBridge with a robust technical and operational platform, with the potential for further expansion into other segments of the maritime industry.The acquisition is immediately accretive, with an estimated EBITDA contribution of $11 million over the next 12 months, based on fixed employment contracts with blue-chip clients such as Saipem, NMDC Group, Larsen & Toubro, Aramco, and others.The transaction is firm from the seller’s side and conditional only on the buyer, subject to standard due diligence processes, which are currently underway.It is planned to be finalized in the third quarter of 2025 and is expected to have a positive impact on RBV’s EBITDA result for the 2025 financial year. The acquisition price will be announced in connection with the closing of the transaction.The acquisition will not change the price or the terms for the transaction with Right Bridge Ventures Group, the company noted.“This acquisition is the first step towards creating a strong maritime presence in Asia. It will provide us with a solid maritime technical and operational platform, with scope for expansion into other sectors of the maritime market.“The acquisition is convincingly accretive for RightBridge. Together with our ownership in U.S.-based shipbuilding and defense related industries we strive to become a full-service defense and maritime company with global operations,” said Dagfinn Lunde, newly appointed Chairman of RightBridge Ventures.
-
OEG to Assist with Inch Cape Offshore Wind Farm Buildout
Energy solutions business OEG has signed a significant multi-million-dollar contract to support the construction phase of the Inch Cape offshore wind farm in Scotland, being developed by ESB and Red Rock Renewables.Over 100 OEG personnel will support the delivery of this contract, which includes the recent addition of six new appointments.The 1.1 GW project is located in the North Sea, 15 km from the Angus coast on a site covering 150 km2. It is set to become operational in 2027.Once completed, it will feature up to 72 wind turbines and an offshore substation and generate enough clean energy to power the equivalent of more than half the homes in Scotland.Scottish Inch Cape Offshore Wind Farm Reaches Financial CloseUnder the terms of the contract, OEG will supply an integrated package of specialist topside and marine services including marine coordination, high voltage and ancillary port services.These will all be managed under a central project team and delivered from the company’s new flagship facility in Edinburgh.OEG will also operate up to ten vessels, seven guard vessels for on location round-the-clock safety and three crew transfer vessels to support offshore wind technicians working at the wind farm.Furthermore, the firm will provide a comprehensive allocation of metocean sensors and navigation buoys, as well as any additional support equipment as required.“As we enter the project’s critical offshore construction phase it is vital to have trusted and experienced suppliers, so we welcome OEG’s integrated support during this next stage of the project,” said John Hill, Inch Cape’s Project Director.
-
Prices of copper remain near their multi-month highs due to supply constraints and US tariff fears
The London Metal Exchange (LME) and Shanghai Futures Exchange (SFE) both held copper near its highest level since late March. This was due to concerns about a tight supply in the region and an increase in shipments to the U.S., as traders rush to avoid potential import tariffs. As of 0103 GMT the LME's three-month copper contract was unchanged at $10,05 per metric tonne, but it hovered close to its highest level since March 26. The SHFE's most traded copper contract gained 0.27%, to 80,840 Yuan ($11285.77). This is its highest level since March 27. The United States may decide to deal with the copper tariff later. This has given traders more time to transport copper to the United States, when prices are higher. U.S. Comex Copper Futures climbed 2% on Wednesday to $5.199 per pound, with a premium of 14% over the LME copper contracts. The total copper stock in LME registered warehouses is still near its lowest level since August 2023 despite a small rebound over the past two days. Stocks have fallen 76% since the middle of February, due to cargoes being rushed into the United States after its investigation on copper imports. SHFE lead rose 0.7%, to 17,290 Yuan per ton. Zinc was up 0.7%, at 22,370 Yuan. Nickel climbed 0.6%, to 121550 Yuan. Aluminium edged higher by 0.2%, to 20,710 Yan. LME lead rose 0.2% to $2.064.5 per ton. Nickel climbed 0.15% to $15.325, tin grew 0.15% to $33,765, aluminium slid 0.1% to $2.622.5 and zinc fell 0.11% at $2.754.5. Click or to see the latest news in metals, and other related stories. DATA/EVENTS - (GMT 0750 France HCOB Services Composite PMI 060755 Germany HCOB Services Composite Final pmi 060800 EU HCOB Services Composite Final pmi 0830 UK Reserve Assets June 0830 US Non Farm Payrolls Unemployment Rate Average Earnings YY Jun 1230 US International trade $ May 1400 US Factory orders MM May1400 US ISM N Manufacturing PMI june
-
Investors wait for US payroll data to get Fed policy clues
Investors held off on making large bets as they awaited the U.S. Payroll data that would be released later in the day to get a better idea of the Federal Reserve’s policy direction. As of 0211 GMT spot gold fell 0.3% per ounce to $3346.47, while U.S. Gold Futures edged up 0.1% to $3357.20. OANDA Senior Market Analyst Kelvin Wong stated that gold appears to be consolidating in the $3,320-$3,360 range. The market is waiting to see what happens with U.S. Non Farm Payroll data and ISM Services' PMI before taking any significant positions. ADP released data showing that private payrolls in the United States fell by 33,000 positions in June. This was the first drop in over two years as economic uncertainty hindered hiring. Low layoffs continue to stabilize the labour market. Investors await the non-farm payrolls data on Thursday. According to a survey, it is expected that 110,000 new jobs were added in June, compared to 139,000 in May. On Wednesday, Donald Trump, president of the United States, announced that the U.S. would impose a 20% tariff, which is lower than what was promised, on a variety of goods coming from Vietnam. The Southeast Asian country is the U.S. tenth largest trading partner. Wong stated that "the Vietnam trade deal is likely to have already been priced in the market. I think now the primary concern is the status other deals with major countries which are still in limbo," The U.S.-India negotiators worked to reach a deal that would reduce tariffs before Trump's deadline of July 9. Trump did not indicate that he would extend the deadline for negotiations despite stalled talks with Japan, another important trade partner. However, he expressed optimism regarding an India agreement. Gold that does not yield tends to do well in an environment of economic uncertainty or low interest rates. Silver spot fell by 0.6%, to $36.37 an ounce. Platinum lost 1.5%, to $1397.91, and palladium dropped 1.4%, to $1138.73. (Reporting and editing by Sumana Aich and Rashmi Nandy, Bengaluru)
-
China's North and West on Alert after Deadly Floods Caused by Sweeping Rains
China's west and north were braced on Thursday for flash floods, as the annual "Plum Rains" left a path of destruction. This prompted thousands of rescue workers from across China to help pull people out of floodwaters. The red alerts traced the rains from the southwest province of Sichuan, through the northwestern provinces of Gansu and Liaoning to the northeast province. The state media reported that over 1,000 rescue workers had been dispatched on Wednesday to the town Taiping, in central China's Henan Province, after torrential rainfall caused a river nearby to burst it banks. Five people were killed in a flash flooding and three others are still missing. On Thursday morning, trains to the capital Beijing were suspended. Flight delays and cancellations occurred at one of the airports in the city late Wednesday night and early Thursday morning. Meteorologists have linked climate change to extreme rainfall and severe floods. These events pose a major challenge to policymakers, as they threaten to overwhelm the ageing flood defences and displace millions. They also threaten to wreck havoc on China’s $2.8 trillion agriculture sector. Natural disasters caused economic losses of over $10 billion in July last year, during which the "Plum Rains" - so named because they coincide with plums maturing along China's Yangtze River at the time of the East Asia Monsoon – usually reach their peak. Local media reported that in China's southwest province of Guangxi several buildings have slid over the past two days as their foundations gave out due to waterlogged soil. The national meteorological center forecasts scorching heat along eastern coast of the country.
-
Oil drops on signs of weak US Demand ahead of Key Jobs Report
On Thursday, oil prices fell, reversing the gains of the previous session. This was due to concerns about weak U.S. Demand after data from the government showed an unexpected build-up in inventories. Brent crude futures dropped 24 cents or 0.35% to $68.87 per barrel at 0044 GMT, after rising 3% on Tuesday. U.S. West Texas Intermediate Crude fell 24 cents or 0.36% to $67.21 per barrel, after previously rising 3.1%. Energy Information Administration reported on Wednesday that domestic crude stocks rose by 3.8 millions barrels, to 419,000,000 barrels. In a poll, analysts had predicted a drop of 1.8 millions barrels. The gasoline demand fell to 8,6 million barrels a day, causing concern about the consumption during peak summer driving in the United States. The benchmarks rose on Wednesday, after Iran passed a law that suspended cooperation with the U.N. Nuclear Watchdog. This sparked fears the long-running dispute over Middle East producer Iran's nuclear program could once again escalate into an armed conflict. The U.S. reached a deal with Vietnam that imposes 20% tariffs on most of the Southeast Asian nation's exports. This gives investors a feeling of economic stability in international trade, which could lead to a higher demand for crude oil. Analysts said that the market will closely monitor the release of Thursday's key U.S. employment report to determine the timing and depth of Federal Reserve interest rate reductions in the second half this year. Lower interest rates may spur economic activity and, in turn, increase oil demand. Analysts cautioned that there was no correlation between the private payrolls report and government data. (Reporting and editing by Christian Schmollinger; Nicole Jao)
-
Bunge and grain handler Viterra complete long-delayed mega merger
Bunge Global, a global agribusiness, announced that it had officially closed the long-delayed $34 billion mega deal with Glencore-backed Viterra. This announcement was made two years ago. The merger creates a global crop trading and processing giant that is poised to rival agribusiness giants Archer-Daniels-Midland and Cargill, at a time when slumping grain prices, weak crop-processing margins and geopolitical tensions have eroded profitability in the sector. Bunge closed Wednesday's trading 1.4% higher. Bunge, based in Missouri, has experienced a dramatic turn-around since the deal was announced. In April 2019, Greg Heckman took over as CEO of the company after Soren Schroder was forced to resign by investors. The Chinese market regulator approved the merger on conditional terms last month, clearing the final hurdle. Bunge announced on Wednesday that Heckman would remain as CEO of the combined business, while Bunge's Chief Financial Officer John Neppl would also retain his position. Viterra CEO David Mattiske, and Bunge co-president Julio Garros will serve as co-chief operational officers. Analysts say that the merger with Netherlands' Viterra will enhance Bunge’s grain exporting business and its oilseed processing business in the United States. Bunge has a smaller US presence than rivals ADM or Cargill. Bunge will also be able to expand its export capacity, as well as their grain storage and handling capabilities in Canada and Australia. (Reporting and editing by Jamie Freed in Chicago, with Karl Plume reporting from Chicago)
-
Former Jan. 6 defendant sentenced to life for plotting to kill FBI agents
According to court records and the U.S. Justice Department, a man who participated in the attack on the U.S. Capitol on Jan. 6, 2021 was sentenced on Wednesday to life imprisonment for conspiring to murder the FBI agents who were investigating him. Court records indicate that Edward Kelley, a former federal employee, was convicted of conspiring to murder federal workers, solicitation of a crime violent and influencing an official of the federal government by threats in November. The prosecution claimed that Kelley and another man planned to attack an FBI field office located in Knoxville, Tennessee using car bombs, incendiary devices, and drones. According to a Justice Department release, he was recorded discussing his plans to "take their office out" if arrested. The prosecution alleged that Kelley had compiled a "kill-list" of federal law enforcers based in the region and discussed assassinating FBI agents in their homes or in public places. Austin Carter, his co-defendant in the plot, has pleaded guilty and will be sentenced by August. Kelley was found guilty of several charges in a separate trial, including assaulting police officers, for his involvement in the storming of the Capitol. This case was dismissed in January, before Kelley was sentenced. It was part of the sweeping clemency granted by President Donald Trump to all 1,600 criminally charged individuals in connection with the attack. The attack on Capitol Hill was a failed effort by Trump supporters in order to prevent congressional certification that Trump had lost the 2020 presidential elections to Democrat Joe Biden. Kelley said that Trump's pardon of the Tennessee case should be extended because it related to his behavior at the Capitol. The Justice Department during Trump's second term opposed this effort, and a later judge rejected it.
OPEC? faces decisive moment on scheduled output increase: Kemp
In the next few weeks, Saudi Arabia and its OPEC? allies must take a fragile choice about whether to proceed with planned production increases from October, or delay them since of an uncertain financial outlook.
The recent slides in front-month Brent futures prices, calendar spreads and refinery margins, in the middle of issues about the outlook for petroleum consumption, have dramatized the risk of getting it wrong.
Increasing production in spite of downward modifications to usage growth and a continued output boosts from rivals in the United States, Canada, Brazil and Guyana risks another build-up of inventories and depression in rates.
However delaying risks conceding a lot more market share to western hemisphere competitors and appealing some OPEC? members to break ranks and increase output unilaterally.
PREPARED OUTPUT
Saudi Arabia and other OPEC? members are implementing three different tranches of production cuts put in location since late 2022 to drain excess petroleum inventories and assistance prices. All OPEC? members are supposed to be participating in an official collective cut of 2 million barrels daily (b/d). agreed in October 2022 at a time of unpredictability about the. economic and oil market outlook. In addition, some members are meant to be enforcing an. additional voluntary cut of 1.66 million b/d agreed in April. 2023 and another voluntary cut of 2.2 million b/d agreed in. November 2023 to support market stability. In June 2024, ministers accepted loosen up the last of these. voluntary cuts slowly - starting in October 2024 and. finishing by September 2025.
They likewise consented to permit the United Arab Emirates to. increase its output gradually by an additional 300,000 b/d -. beginning in January 2025 and likewise ending up by September 2025.
Under this plan, overall OPEC? production is scheduled to. increase by approximately 180,000 b/d each month in the fourth quarter. of 2024 and then by 210,000 b/d monthly in the very first nine. months of 2025.
From the beginning, however, ministers stressed the. arranged production boosts were conditional and could be. paused or reversed based on market conditions.
In the next couple of weeks, OPEC? should decide whether to proceed,. or customize or hold off these increases in the light of renewed. concerns about the health of the global economy and oil demand.
COSTS AND SPREADS
Oil rates and spreads are presently about the very same or. weaker than they were when ministers accepted the second set of. voluntary cuts in November 2023.
Inflation-adjusted front-month Brent futures have actually balanced. $ 79 per barrel up until now in August 2024 (42nd percentile for all. months considering that 2000) below $84 in November 2023 (49th. percentile).
Brent's six-month calendar spread has actually sold an average. backwardation of $2.50 this month (73rd percentile) rather. more powerful than $1.63 in November (57th percentile).
However inflation-adjusted refinery margins for making two. barrels of gas and one barrel of extract from U.S. crude. have actually been $22 this month (43rd percentile) below $24 in. November (50th percentile).
With the exception of calendar spreads, which are moderately. bullish, other rate signs follow a rough. balance between production and usage at the moment.
Each of these indications has actually damaged materially because. ministers made the provisionary decision to increase production. in June 2024.
INTERNATIONAL STOCKS
Business stocks of crude and improved items in the. innovative economies belonging to the Company for Economic. Cooperation and Development amounted to 2,761 million barrels at. completion of June.
Stocks were 120 million barrels (-4% or -0.71 requirement. deviations) listed below the ten-year seasonal average and the deficit. had actually almost doubled from 66 million (-2% or -0.44 requirement. discrepancies) in November 2023.
The deficit was the best for almost two years since. September 2022, according to data from the U.S. Energy. Information Administration (EIA).
Chartbook: OPEC+ output choice
Considering that late June, U.S. commercial crude stocks have. continued to decline more and quicker than typical, contributing to. proof of a tightening up market.
U.S. unrefined inventories decreased in seven of the eight weeks. considering that June 21 by a total of 35 million barrels, according to the. EIA.
U.S. unrefined stocks normally decline over July and. August as refineries ramp up processing to fulfill elevated need. for gasoline during the summer vacation period.
But the seasonal exhaustion this year was the second-largest. in the last years after 2017, suggesting worldwide materials likely. continued to tighten up at the start of the 3rd quarter.
U.S. crude stocks were 9 million barrels (-2%) below. the ten-year average on Aug. 16 down from a surplus 6 million. barrels (+1%) on June 21.
Most of the depletion happened at refineries and tank farms. in Texas and Louisiana along the Gulf of Mexico, the most. carefully integrated with global oil markets.
Gulf Coast unrefined inventories declined in seven of the last. eight weeks by a total of 25 million barrels, compared with an. average exhaustion of 10 million over the previous decade.
TACTICAL CONSIDERATIONS
By early August, portfolio financiers had cut their integrated. position in crude and fuels to some of the most affordable levels given that. 2013.
Hedge funds and other cash managers held an integrated. position in the six crucial futures and alternatives contracts. comparable to just 226 million barrels (3rd percentile for all. weeks given that 2010) on Aug. 13.
The position was below a current high of 524 million. barrels (40th percentile) at the start of July and 338 million. barrels (14th percentile) in November 2023.
In recent weeks, fund supervisors have actually minimized their positions. in reaction to increased unpredictability about the outlook for the. major economies and worldwide oil intake.
It is unclear to what extent they have actually likewise decreased. positions in anticipation OPEC? would continue with set up. output increases, and therefore just how much of the increase if any. is already discounted in rates.
If the scheduled boost has actually been completely discounted,. postponing some or all of it might spark a sharp rally in rates,. sped up and enhanced as fund supervisors attempt to restore. positions.
If it has not been discounted at all, proceeding risks. sparking an even much deeper fall in prices as funds sell more. agreements.
TACTICAL OPTIONS
Looming over all these tactical considerations is the. outlook for the international economy in the rest of 2024 and in 2025.
Global production and freight activity has actually flat-lined or. compromised since April, which has led to petroleum. consumption growing far more gradually than promised at the. start of the year.
In action to economic softening, it promises the U.S. Federal Reserve and other central banks will trim rate of interest. to promote consumer and company spending.
OPEC? should decide whether to concentrate on the present softness. ( which favours a post ponement) or the stimulus and prepared for. recovery (which could cause faster oil consumption and favour. pressing ahead).
The most mindful technique would be to wait on the economy. to accelerate and a rise in oil rates before continuing,. postponing some or all of them for a couple of months.
If the group is more positive in the financial and. usage outlook, it might go ahead anyway, daring to show. the hedge fund sceptics incorrect.
Related columns:. - Oil investors cut positions to record low amidst financial. market crisis
(source: Reuters)