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China releases first batch of crude oil import quotas 2026 for independent refiners
Multiple trade sources reported on Thursday that independent refiners have received the first batch of crude import quotas from China for 2026. These quotas can be used to purchase cargoes due to arrive by the end the year. The new quota will boost crude oil imports to the world's biggest oil importer. Supply glut Two sources familiar with the matter confirmed that Hengli Petrochemical was the refiner who received the quota for the import of 2 million metric tonnes (40,000 barrels of crude per day). Three sources familiar with the matter confirmed that Rongsheng Petrochemical had been granted a quota of 750,000 tons. Shenghong Petrochemical, Hongrun Petrochemical, and Hongrun Petrochemical were each given 120,000 and 530,000 tonnes, respectively. Sources at a second independent refiner confirmed that the company expects to receive official notification on Thursday. Three trade sources reported that 21 refiners have received nearly 8 million tonnes of quota, compared to 6.04 million in November 2024. The Ministry of Commerce of China, which controls crude oil import quotas in China, did not respond immediately to a request for comment sent by fax. The ministry set the crude oil price last month. import quota For 2026, the non-state trade is unchanged at 257 millions tons. One source said that Beijing will dispatch the remaining quotas for 2026 as early as next year.
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Stocks surge on hopes of Fed easing, but yen is locked in the intervention zone
The dollar fell on Thursday as traders began to weigh the possibility of a rate increase before the end of the year. Asian stocks also rose. The holiday-shortened week has resulted in limited movements across the markets. Stocks have maintained a generally positive tone, while currencies are more calm as investors shed AI bubble fears that had shaken equities early in November. The U.S. market is closed on Thanksgiving Day, Thursday. It will reopen for a brief session on Friday. MSCI's broadest Asia-Pacific share index outside Japan rose 0.4%, following Wall Street gains and on track to end a three-week loss streak. Japan's Nikkei, and South Korea's Kospi both surged by over 1%. Charu Chanana is the chief investment strategist for Saxo. He said that stocks have responded positively to renewed Fed rate-cut expectations, which helped to cool recent AI bubble concerns. The Fed's anticipated cut and strong seasonality make December a difficult to bearish month, and Santa rally is still on the table. China's property sector has been in the spotlight again after China Vanke, a property developer, sought approval from bondholders to delay repayment of an onshore bond worth 2 billion yuan (282.6 million dollars). At the opening of the market on Thursday, bonds issued by Vanke continued to fall. This is a continuation of this week's losses. Vanke's bonds in yuan have fallen by more than 20%. Some are down as much as 40%. China's CSI300 property index dropped to a new low of 1.5%. The broader CSI300 Index however ticked up by 0.4%. WAGE WAGERS FOR SURGING RATE CUTTING The U.S. data has returned since the 43-day record government shutdown ended in mid-November. However, the majority of economic reports released so far are significantly outdated and offer very little insight on the state of the economy. Investors are now focusing on the comments of Fed officials in order to determine U.S. monetary policies. Comments this week by San Francisco Federal Reserve Bank president Mary Daly, and Fed Governor Christopher Waller have boosted expectations for a rate reduction. CME FedWatch shows that traders now price in 85% of a rate reduction next month, compared to just 30% one week ago. George Boubouras of K2 Asset Management said that the weakening labour market is sufficient to offset inflation. A rate cut in December looks reasonable. While core inflation is higher than target, the U.S. breakeven 10-year inflation rate of around 2.25 percent suggests that markets remain comfortable with inflation expectations. The euro reached its highest level in over a week, at $1.16115. The dollar index (which measures the U.S. currencies against six rivals) was 99.431, down 0.28% from the previous day. According to data released on Wednesday, the number of Americans who applied for unemployment benefits last week fell to its lowest level in seven months. This suggests that layoffs are still low. The sterling rose to $1.3247 in a month's time, after the UK Finance Minister Rachel Reeves budget eased some concerns about Britain's finances on a long-term basis. Watches YEN The Japanese yen gained a little to 156.07 dollars as investors waited for Tokyo to intervene after weeks of verbal scolding by authorities to stop the currency's steady decline. Sanae Takaichi, Prime Minister of Japan, ruled out Wednesday that Japan might face a "Truss Moment" or loss in market confidence resulting from her fiscal expansion. Since the beginning of October, the Japanese currency has fallen by almost 10 yen. This is because Takaichi assumed the presidency amid concerns that the government's spending plan will require heavy borrowing and doubts about the timing of the Bank of Japan's next rate increase. Sources have told us that the BOJ has been preparing the markets for an upcoming rate hike. It may even be as early as next month. The BOJ could also adopt a more consistent path of rate hikes to change the trajectory of its currency. Bitcoin gained 1.75% on Thursday to $91,787.55, on course to end a four-week loss streak with a gain of nearly 3%. Gold fell 0.4% to $4146.53 an ounce after rising by 0.8% the previous session. (Reporting and editing by Shri Navaratnam in Singapore, Ankur Banerjee)
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Investors weigh Fed rate-cut betting as gold steadies near two-week-high
The gold price was largely unchanged on Thursday, after reaching a two-week high the previous session. Market participants were weighing the possibility of an interest rate cut in December by the U.S. Federal Reserve amid contradictory signals. As of 0200 GMT, spot gold was down by 0.2%, at $4,154.09 an ounce. U.S. Gold Futures for December Delivery fell 0.3% per ounce to $4,151.20. GoldSilver Central MD Brian Lan stated that the Fed was not clear about what it would do next. Gold is consolidating ahead of the Fed meeting, which begins this week. Investors seeking to protect themselves from increased policy uncertainty have increased the flow of swaptions and derivatives linked to overnight rates. Some Fed officials have said that a December easing could be warranted because the weak labor market is putting downward pressures on Treasury yields. In the previous session, benchmark 10-year Treasury yields were near their lowest levels in over a month. However, their stance contrasted with that of several regional Fed presidents who advocated a pause on easing until the inflation showed a more compelling move towards the 2% target. Kevin Hassett has also said that rates should be lowered, as has Donald Trump. According to CME's FedWatch, U.S. rate forwards price in an 85% probability of a rate reduction in December. Gold that does not yield tends to do well in an environment of low interest rates. Data on Wednesday revealed that the number of weekly jobless claims dropped last week, despite the fact that there are still not enough jobs to go around. In November, U.S. consumer sentiment also declined due to concerns about the economy and household finances. Other than that, silver spot fell by 0.9%, to $52.89 an ounce. Platinum gained 1.4%, to $1.611.04, while palladium dropped 0.9%, to $1.409.87. (Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich)
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ASIA COPPER WORRK-Comex copper Premium here to stay: LME executive
A senior executive at the London Metal Exchange said that the premium in copper prices on the U.S. Comex will likely persist for the next 18-months, citing uncertainty over tariffs on copper in the United States. Robin Martin, the Head of Market Development for the LME, said in a speech at the World Copper Conference Asia that there was a 2 to 3 percent premium on CME contracts. CME-LME divergence, a result of U.S. Tariffs, has led to a shift in copper stocks from LME sheds to COMEX sheds. On Monday, U.S. exchange inventories of copper exceeded 400,000 short tonnes for the first ever time. EXPAND ACCESS TO CHINA Martin stated that the LME was working hard to make their service more accessible for Chinese customers. He said that the exchange was making significant efforts to accept offshore Yuan as collateral, and was working with major Chinese banks in order to streamline service. The LME executive said the exchange was also looking into accepting Chinese government bond as collateral for its clearinghouse. (Reporting and editing by Tom Hogue, Sonali Paul and Lewis Jackson)
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Stocks surge on hopes of US rate cuts, but yen remains in the intervention zone
The dollar fell on Thursday as traders began to expect a Federal Reserve rate cut next month. Meanwhile, the yen was in the spotlight with traders considering the possibility of a rate increase before the end the year. The holiday-shortened week has resulted in limited movements across the markets, with stocks maintaining a generally positive tone and currencies more sedate. The U.S. market is closed on Thanksgiving Day and will resume trading on Friday. MSCI's broadest Asia-Pacific share index outside Japan rose 0.27%, following Wall Street gains and on track to end a three-week loss streak. Japan's Nikkei, and South Korea's Kospi both surged by over 1%. Investors will also focus on the Chinese real estate sector, as China Vanke is seeking bondholder approval for a delay in the repayment of an onshore bond worth 2 billion yuan (282.6 million dollars). The first public bond extension for the state-backed developer would be a first. This property developer is a household name in China with numerous projects. It could cause a new wave in the financial and real estate markets. WAGE WAGERS FOR SURGING RATE CUTTING The U.S. government shutdown, which lasted 43 days and ended in mid-November was a record. However, the majority of economic reports released so far are dated. They offer little insight on the state of the economy. Investors are now focusing on the comments of Fed officials in order to determine U.S. monetary policies. Comments this week by San Francisco Federal Reserve Bank president Mary Daly, and Fed Governor Christopher Waller have boosted expectations for a rate reduction. CME FedWatch shows that traders now price in an 85% probability of a rate reduction next month, compared to just 30% one week ago. George Boubouras of K2 Asset Management said that the weakening labour market is sufficient to offset inflation. A rate cut in December looks reasonable. While core inflation is higher than target, the U.S. breakeven inflation rate of around 2.25 percent over a 10-year period suggests that inflation expectations are still reasonable. The short-term USD strength will continue, but it is expected to reverse in the March quarter of 2026. In early trading, the euro reached its highest level in over a week. It was 1.16045. The dollar index (which measures the U.S. currencies against six rivals) was unchanged at 99.523, after falling 0.28% the previous day. According to data released on Wednesday, the number of Americans who applied for unemployment benefits last week fell to its lowest level in seven months. This suggests that layoffs are still low. The sterling rose to $1.3247 in a month's time, after the UK Finance Minister Rachel Reeves budget eased some concerns about Britain's finances on a long-term basis. Watches YEN The Japanese yen gained a little to 156.16 dollars as investors waited for Tokyo to intervene after weeks of verbal scolding by authorities to stop the currency's steady decline. Sanae Takaichi, Prime Minister of Japan, ruled out Wednesday that Japan might face a "Truss Moment" or a loss of confidence in the market due to her fiscal expansion. Since the beginning of October, the Japanese yen has fallen by almost 10 yen. This is because Takaichi assumed the presidency amid concerns that the government's spending plan will require heavy borrowing and doubts about the timing of next rate hikes from the Bank of Japan. Sources have told us that the BOJ has been preparing the markets for an upcoming rate hike. It may even be as early as next month. The BOJ could also adopt a more consistent path of rate hikes to change the currency's trajectory. Bitcoin was above $90,000. It is on course to end a four-week loss streak, with a gain of nearly 3%. Gold remained flat at $4164.81 an ounce after rising by 0.8% the previous session. (Reporting and editing by Shri Navaratnam in Singapore)
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Australia to revamp environment laws following Greens' support
The Australian government is set to reform its environmental laws, a long-awaited change. Prime Minister Anthony Albanese announced that the Greens Party had agreed to support the legislation of the Labor centre-left government on the final day of the parliament. In a press release, the Greens stated that this deal eliminates Labor's plan for coal and gas projects to be approved faster based on their "national interest". According to a government statement, the agreement also calls for "high-risk clearing of land and regional forest agreements", in order to comply with environmental regulations. In July of next year, the reforms will create an independent national Environment Protection Agency for a stronger oversight and enforcement. The government will increase penalties for serious breaches and set up a forestry growth fund of A$300million ($195.5million). This is a historic day for the environment of this country. Albanese, who spoke to reporters, said that it was also a great day for the business community in this country because of increased certainty and reduced delays. Sussan Lees, the leader of the conservative Liberal Party, criticised the Greens' reforms. She said they were at "war with gas". Labor, without a majority in the Senate, has been separately negotiating with the conservative Liberal/National coalition and Greens for support of the legislation. The Greens claimed that the bill falls "woefully" short of what's needed to combat climate change, but they argued that their negotiations had improved the legislation. Greens Senator Larissa Wassers stated that "Greens' pressure made this bill much better than our weak laws, and far better than if government had struck a deal with climate deniers within the Coalition." She claimed that the party had strengthened protections for native forest, closed loopholes in land clearing, and prevented Labor to fast-track coal and gas projects. The Minerals Council of Australia (which represents mining companies) expressed disappointment that the bill would result in increased red tape. This is despite the fact that the council had won some improvements, including a simplified testing procedure for projects which will be rejected or undergo further scrutiny and a limit of 28 days for environment protection orders. The National Farmer's Federation has criticised reforms that it says will make it more difficult for farmers to clear their land, even for cattle ranching.
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Australia to revamp environment laws following Greens' support
The Greens have agreed to support the legislation of the Labor centre-left government, which will allow the bill to be passed by the Senate on Friday, according to Prime Minister Anthony Albanese. Albanese said that the changes will help accelerate decision-making in critical mineral, renewable energy, and housing projects while strengthening environmental protection. This is a historic day for the environment of this country. Albanese, who spoke to reporters, said that it was also a great day for the business community in this country because of increased certainty and reduced delays. Reforms will create an independent national Environment Protection Agency, which will strengthen enforcement and oversight. The government will increase penalties for serious violations and set up a forestry growth fund of A$300million ($195.5million). Labor, which does not have a majority in the Senate, has been separately negotiating with the conservative Liberal National coalition and the Greens for support of the legislation. Albanese praised Greens' "very constructive" approach during talks with government, and for compromising some of their demands. The Greens claimed that the bill falls "woefully" short of what's needed to combat the climate crisis, but they argued that their negotiations improved legislation. Greens Senator Larissa Wassers stated that "Greens' pressure made this bill much better than our weak laws, and far better than if government had struck a deal with climate deniers within the Coalition." She claimed that the party had strengthened protections for native forest, closed loopholes in land clearing, and prevented Labor to fast-track coal and gas projects.
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Apple sued by US group over Congo conflict minerals
Apple has denied the allegations, but a U.S. advocacy group filed a suit in Washington claiming that the iPhone maker uses minerals from the Democratic Republic of Congo or Rwanda. International Rights Advocates, a group based in the United States, filed a lawsuit last year against Apple, Tesla and other tech companies for cobalt sourcing. However, U.S. court dismissed it. In December, French prosecutors dropped Congo's conflict mineral case against Apple subsidiaries citing a lack of evidence. An investigation is ongoing in Belgium into a criminal complaint related to this issue. Apple has denied any wrongdoing as a response to Congo's suits, stating that it had ordered its suppliers to stop sourcing material from Congo and Rwanda. Apple said that it "strongly disagrees" with the latest allegations about the company's benefiting from the forced labor and unsafe mine practices in Africa. The claims were "baseless," Apple stated. Apple's spokesman stated that 99 percent of cobalt used in Apple batteries is recycled, highlighting the company’s efforts to reduce its reliance on mining material. He said that, as the conflict in eastern Congo escalates in 2024 and the company instructs suppliers to stop sourcing materials from Congo and Rwanda. Apple's Supplier Code of Conduct enforces the "industry's strongest sourcing standard" and promises continued transparency in public reporting. In a complaint filed Tuesday at the Superior Court of the District of Columbia, IRAdvocates - a Washington nonprofit that uses litigation to curb rights abuses - said that Apple's supplier chain still contains cobalt and tantalum, which are linked to forced and child labour, as well as to armed groups from Congo and Rwanda. CONGO IS a major source of COBALT and TIN The lawsuit does not ask for monetary damages, nor class certification. It only wants a court to determine that Apple's conduct is in violation of consumer protection laws, as well as an injunction stopping alleged deceptive advertising, and reimbursement of legal expenses. The lawsuit claims that three Chinese smelters – Ningxia Orient JiuJiang JiXin, Jiujiang Tanbre – processed columbite tantalite metallic ore (coltan), which investigators from the U.N., Global Witness, and U.S. Department of Justice allege had been smuggled via Rwanda after armed group seized mines east Congo. The lawsuit ties the material back to Apple's supply chains. The lawsuit alleged that a University of Nottingham report published in this year revealed forced and child labor at Congolese sites connected to Apple suppliers. Requests for comment from Ningxia Orient JiuJiang JinXin, and Jiujiang Tanbre were not immediately responded to. The Congo, which provides about 70% of world cobalt, as well as significant quantities of tin tantalum, and tungsten, used in computers, phones, and batteries, did not respond immediately to a comment request. Rwanda did not respond immediately to a comment request. 'NO REASONABLE BASE FOR LINKS WITH ARMED GROUPS.' Apple has denied using minerals from conflict zones and forced labour repeatedly, citing audits as well as its code of conduct for suppliers. In December, Apple said that "no reasonable base" could be found to conclude that any refiners or smelters in its supply chain funded armed groups in Congo and neighbouring countries. Congolese authorities claim that armed groups operating in the eastern Congo are using mineral profits to finance the conflict, which has resulted in thousands of deaths and hundreds of thousands being displaced. They tightened controls over minerals to choke funding and squeeze global supplies. Apple claims that 76% of the cobalt used in its devices will be recycled by 2024. However, the IRAdvocates suit alleges that its accounting method includes ore from conflict areas.
Prices of oil drop as a result of the ceasefire in Ukraine, which will allow Russian supplies to be released
Oil prices dropped on Thursday, as traders remained thin because of the U.S. holiday Thanksgiving.
Brent crude futures fell 21 cents or 0.3% to $62.92 a barrel as of 0108 GMT. U.S. West Texas Intermediate Crude futures also dropped 21 cents or 0.4% to $58.44 a barrel.
Investors weighed the oversupply risks and the prospects of a Russia/Ukraine peace agreement as they assessed Wednesday's settlement prices.
Steve Witkoff, U.S. ambassador to Russia and other senior U.S. officials will travel to Moscow with Russian leaders next week for discussions on a potential plan to end the nearly 4-year-old conflict in Ukraine. This war is the deadliest to have occurred in Europe since World War Two.
A senior Russian diplomat stated on Wednesday that Russia would not make any big concessions in regards to a peace plan. This was after a recording of Witkoff's call with Moscow revealed that he advised Moscow how to approach U.S. president Donald Trump.
In a client letter, Commonwealth Bank of Australia analyst Vivek dhar stated that a ceasefire would reduce the perceived supply risk associated with U.S. sanction on Russian oil producers Rosneft, and Lukoil. He added that sanctions which went into effect on November 21 had already affected Russia's oil, and refined products exports.
Dhar noted that "a Ukraine-Russia agreement should see Brent drop to $60 per barrel relatively quickly", noting also that a ceasefire will allow Russian refinery activities to return to normal as Ukraine's drone strikes would stop.
The market was also affected by a larger-than expected increase in U.S. crude oil inventories.
The Energy Information Administration reported on Wednesday that U.S. crude oil inventories rose 2.8 million barrels, to 426.9 millions barrels. Imports also reached a record high of 11 weeks. Analysts expected a rise of 55,000 barrels.
Baker Hughes, an energy services company, said that U.S. firms have reduced the number of oil drilling rigs to 407, the lowest level since September 2021. This is a sign the market has plenty of supply.
Three OPEC+ source told Reuters on Tuesday that the Organization of the Petroleum Exporting Countries (OPEC) and its allies will likely leave the output levels unchanged during a Sunday meeting. Several members of the group that pumps half the oil in the world have increased production since April, to gain market shares.
The rising expectation of a rate cut by the U.S. Federal Reserve in December helped to support crude oil prices. Lower rates are known to stimulate economic growth, which in turn boosts oil demand. (Reporting and editing by Christopher Cushing; Yuka Obayashi)
(source: Reuters)