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Isaiah Salinda and Kevin Velo set a new record of 58 in the Zurich Classic
Isaiah Salinda, Kevin Velo and their 14-under par 58 on Thursday took the lead in the first round of the Zurich Classic New Orleans at TPC Louisiana. Salinda, Velo and their best-ball format were 12 under par through the first 11 holes - an eagle for Salinda on the par-5 7th and all the other birdies - before slowing down. The team ended with four pars, and one birdie on the last five holes. Salinda is ranked No. 163 in the Official World Golf Ranking. Velo is ranked No. Both players have never won on the PGA Tour. Salinda Velo and Nicolai Hojgaard of Denmark, who shot a 13-under 59, are only one-shot ahead. The brothers did not make a single bogey. Collin Morikawa, Kurt Kitayama and the Australian Cam Davis are tied at 11-under 61 with Paul Peterson of Germany and Thomas Rosenmueller and Norwegian Kris Ventura. Rory McIlroy from Northern Ireland and Shane Lowry from Ireland both opened with a 64 at 8-under. McIlroy is playing in his first tournament after winning the Masters, completing his career Grand Slam. On Friday, the tournament will switch to foursomes (alternate shots). After the 36-hole cut is made, four-ball will play on Saturday followed by foursomes on Sun. Field Level Media
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Weekly oil prices drop on the possibility of more global supply
Oil prices rose on Friday, but are still on course for a loss of a week's worth as a potential OPEC+ production increase and a ceasefire in the Russia/Ukraine conflict could raise supply while at the same time contradictory U.S. Tariff signals limit demand. Brent crude futures rose 5 cents, to $66.60 per barrel at 0001 GMT. They are on course to drop 2% this week. U.S. West Texas Intermediate crude (WTI), which is a blend of West Texas and Texas, rose 6 cents a barrel to $62.85, but it was expected to fall 2.9% this week. In an interview with CBS News, Russian Foreign minister Sergey Lavrov stated that the United States and Russia were moving in the right directions to end the conflict in Ukraine. However, some specific aspects of a deal still need to be agreed. Stopping the war in Ukraine by Russia and easing sanctions could lead to more Russian oil reaching global markets. Russia is a member of OPEC+, which includes the Organization of Petroleum Exporting Countries. It is also one of the largest oil producers in the world, along with the U.S. Trump criticised Vladimir Putin on Thursday after Russia bombarded Kyiv overnight with missiles and drones, saying, "Vladimir! STOP!" Earlier this week, it was reported that several OPEC+ member countries had also suggested the group increase oil production for a second consecutive month in June. Abbas Araqchi, the Iranian foreign minister, said on Thursday that he is ready to travel to Europe to discuss Tehran's nuclear programme. If successful talks are held with Europe and the U.S., sanctions against Iranian oil exports will likely be lifted. Iran is OPEC's third largest oil producer, behind Saudi Arabia and Iraq. Even with the ongoing trade war between the U.S. and China, the two world's largest oil consumers, the outlook for demand remains cloudy. Due to the higher costs resulting from the trade conflict, businesses are raising prices and reducing financial guidance. This has also caused global supply chains to be tense and prompted fears of an economic slowdown in which oil demand could be affected.
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Brazilian miner Vale posts 17% drop in Q1 net profit
The Brazilian miner Vale announced on Thursday that its net profit for the first quarter of 2014 was down 17% from a year ago, due to lower iron ore costs. Vale, the world's largest iron ore producer, reported a net profit of $1.39 billion for the three months ending in March. Analysts polled by LSEG expected a profit of $1.68 billion. Vale's earnings report stated that lower iron ore costs had a negative impact on its results. However, this was offset in part by the company's efforts to reduce the cost of iron ore production and the effects of the Brazilian real appreciating against the U.S. Dollar. The adjusted core profit, which is based on earnings before taxes, depreciation, and interest, was $3.12 billion. This represents a 9% decline from the previous year and comes close to analysts' expectations of $3.16 billion. Vale's output and sales report, released last week, showed a net revenue of $8.12bn for the third quarter, down 4% on an annual basis and below analysts' estimates of $8.03bn. Reporting by Marta Nogueira from Rio de Janeiro, and Andre Romani from Sao Paulo. Editing by Brendan O'Boyle.
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Budget watchdog: UK water crisis partly blamed on regulators
A budget watchdog in Britain said that the regulators had failed to invest enough in the water industry. This has led to an environmental crisis. The public is angry with water companies in England, Wales and Scotland over their rising bills. This comes after sewage spills polluted Britain's rivers in the last few years due to aging pipes and overcrowded treatment plants. After the National Audit Office report was released, Geoffrey Clifton Brown, Chair of the Committee of Public Accounts said: "The government's failure in regulating this sector properly is now falling on the bill-payers who are left to pay the tab." The average household water bill in England and Wales is expected to increase by 26% this year. According to the NAO, water sector requires "unprecedented investment" in order to meet the challenges it faces, including a weakened financial performance, a declining public trust, and a falling investor confidence. In October, as Britain's largest water provider, Thames Water, was on the verge of financial collapse the government began a review of water industry. The report is expected in June. The government's Environment Department (DEFRA), in response to the NAO Report, said that new laws allowing water managers to be criminally charged if they violate environmental rules will help improve the industry. A Defra spokeswoman said that "the government has taken immediate action to fix water industry - however, change will not occur overnight." The NAO stated that Britain must build nine new reservoirs and invest an estimated 47 billion pounds ($62.52 million) in water infrastructure over the next five-year period. The report highlighted that there was no national plan for water and that regulators, Ofwat and the Environment Agency as well as the Drinking Water Inspectorate did not understand the state of infrastructure. The report also criticised the way Ofwat sets prices for water consumers. It said it was difficult to understand for investors, and questioned whether its review process was suitable given that major infrastructure projects require a long-term approach. ($1 = 0.7517 pound) (Reporting and editing by Sharon Singleton; Sarah Young)
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Eastman Chemical cuts spending in the face of market uncertainty and forecasts a quarterly profit that is below expectations
Eastman Chemical said Thursday that it will cut expenses to respond to the market volatility caused by President Donald Trump's tariff plans. In extended trading, shares of the company fell 3.5% to $78.00. Chemical companies are facing a weak market and high input prices, especially in Europe where the regulatory environment is challenging. This has forced them to rethink strategies. Trump's unpredictable trade policies have added to the uncertainty in the chemical industry. On Thursday, Dow Jones said that it expected earnings to be further pressured due to the persistent uncertainty. LSEG data shows that the company expects its second-quarter adjusted profits to range between $1.70 to $1.90 per common share. This is below Wall Street's expectations of $2.18. Eastman said that it would also increase its cost-reduction target to $75 million net of inflation and reduce capital expenditures for 2025 to $550 million, as opposed to its previous forecast of $850 million. The chemical company beat its first-quarter profit expectations, thanks to a strong performance at Kingsport and increased selling prices for its products. Eastman Kingsport in Tennessee uses advanced technology to recycle plastic waste into monomers that can be used to create new plastic products. The facility can recycle approximately 110,000 metric tonnes annually. According to LSEG data, the company reported a profit adjusted of $1.91 for the quarter ending March 31 compared with an average analyst estimate of $1.89.
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Stocks rise with tech shares, but dollar falls after recent gains
The major stock indexes rose Thursday as investors waited for further developments in U.S. China trade conflict. Meanwhile, the dollar fell after recent gains. The S&P 500 Technology sector rose 3.5% in one day, which is the highest of any sector within the benchmark index. After-hours trades for Alphabet, the parent company of Google, saw shares rise more than 3% following its release of first-quarter earnings. These results included earnings that exceeded analysts' expectations. The stock closed the regular session with a 2.5% gain. This earnings season will still bring us more results from the top U.S. technology companies. Donald Trump, the U.S. president, said that on Thursday trade talks were underway between the U.S.A. and China. This was in response to Chinese claims that there had been no discussion about easing the ongoing trade conflict. Beijing said that earlier, the U.S. would have to remove "all unilateral tariff measures" against China if they "truly wanted" the solution of the trade dispute. On Wednesday, the White House signaled that it would be open to reducing tariffs against China. Trump's tariff plan has caused a lot of volatility in the markets over the past few weeks. Thomas Martin, Senior Portfolio Manager at GLOBALT Atlanta said: "There is still a great deal of volatility. But add to that a market that has been oversold in virtually every measure." The first-quarter earnings report has been mixed. Businesses across industries have said they are increasing prices and are uncertain about the future because of Trump's policies and trade war. Unilever, the maker of Dove soap, pointed to a deteriorating consumer confidence in the United States. Meanwhile shares of International Business Machines plummeted after the company announced that 15 of its government contract were shelved as part of a cost-cutting initiative by the Trump Administration. The Dow Jones Industrial Average rose 486.63 points or 1.23% to 40,093.40. The S&P 500 increased 108.91 or 2.03% to 5,484.77. And the Nasdaq Composite increased 457.99 or 2.74% to 17,166.04. The MSCI index of global stocks rose by 11.65 points or 1.44% to 819.86. The pan-European STOXX 600 closed at 0.36%. Japan's Nikkei rose 0.5%. Ryosei Acazawa, the Japanese tariff negotiator, was reportedly making final preparations to travel to the United States on April 30 for a second round with his counterpart. The economic data released on Thursday revealed, among other things that the number of Americans who filed new claims for unemployment benefits increased marginally in the last week. This suggests the labor market is still resilient. Treasury yields in the United States fell amid expectations of lower tariffs than expected. Investors weighed up the possibility of the Federal Reserve cutting interest rates for the first time in June. Beth Hammack, President of the Fed Bank of Cleveland, called on Thursday for patience in monetary policy, given the high level of uncertainty. However, she did not exclude a rate cut by June depending on economic indicators. The yield on the benchmark U.S. 10 year notes dropped 7.8 basis points from 4.387% to 4.309% late Wednesday. In the past week, Trump made verbal criticisms of Fed Chair Jerome Powell and then withdrew calls for his resignation. The Treasury Department issued the final coupon debt of the week, $44 billion worth of seven-year notes on Thursday. The Tuesday two-year auction was a soft one, but the Wednesday five-year sale saw a good response. The dollar weakened against major currencies. The dollar was down 0.63% to $1.1383. The dollar fell 0.58% against the Japanese yen to 142.61. The dollar rose on Wednesday but has been one of the worst victims of Trump's tariffs. It was expected to decline for the entire month. Gold prices rose after falling by more than 3% the previous session. Spot gold increased 1.4% to $3333.90 per ounce. Investors also weighed the weaker U.S. Dollar when determining oil prices. Brent crude futures increased 43 cents or 0.7% to settle at $66.55 per barrel. U.S. West Texas Intermediate crude (WTI), which settled at $62.75, rose by 52 cents or 0.8%.
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Farmers in Northern Mexico fight drought after water dispute with US
This cattle ranching community in northern Mexico has a lot of dead animals scattered around the town. The drought, which has been going on for years, is forcing local farmers to think about moving to another area to find water and land. According to data from the government, more than 64% Mexico's land is suffering from some form of drought. The northern states, especially Chihuahua with its most severe levels of drought, are hardest hit. Mexico and the U.S. have been in heated negotiations about Mexican delays in delivering water quantities laid out in 1944's treaty. Donald Trump threatened to impose tariffs and sanctions if Mexico did not increase its water deliveries, which U.S. officials claim have devastated Texan Farmers. Mexico's government claims that drought has affected its ability to comply. Farmers in the Chihuahua town of Julimes are worried about their future. "I don’t think we'll hold out for much longer," said Leopoldo Ochoa 62 as he rode his granddaughter behind his herd on horseback. A lack of grass and water has forced farmers in northern Chihuahua to relocate their herds from the mountains where they usually graze. Ochoa is a resident of Valle de Zaragoza which depends on the La Boquilla Dam. If there isn't any more water, then we will need to look for another ranch. Imagine leaving this ranch at 60 years old, where you have lived your entire life, said Manuel Araiza. He added, "It's sad but the truth is that this will all come to an end." While diplomats in Mexico negotiate water deliveries to the U.S.A., Chihuahua farmers consider their future. Estreberto Monje, 57, said: "My children told me that this was no longer profitable. I should sell my animals." "The truth is that we've never experienced anything like this." (Reporting by Jose Luis Gonzalez, writing by Cassandra Garrison, editing by Sandra Maler)
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Stocks rise with tech shares, dollar falls after recent gains
The major stock indexes rose Thursday as investors awaited more developments in the U.S. China trade dispute, and the dollar fell after recent gains. Alphabet is expected to release its quarterly results after the closing bell. Alphabet has been up by 1.9%. S&P's technology sector led all other sectors in the S&P index with gains of about 3%. Donald Trump, the U.S. President, said that on Thursday trade talks were underway between the U.S.A. and China. This was in response to Chinese claims that there had been no discussion about easing the ongoing trade conflict. Beijing said that earlier, the U.S. would have to remove "all unilateral tariff measures" against China if they "truly wanted" the solution of the trade dispute. On Wednesday, the White House signaled that it would be open to reducing tariffs against China. Trump's tariff plan has caused a lot of volatility in the markets over the past few weeks. Thomas Martin, Senior portfolio manager at GLOBALT Atlanta said: "There is still a great deal of volatility. But add to that a market that has been oversold in virtually every measure." The first-quarter earnings report has been mixed. Businesses across industries have said they are increasing prices and are uncertain about the future because of Trump's policies and trade war. Unilever, the maker of Dove soap, pointed to a deteriorating consumer confidence in the United States. Meanwhile, shares of International Business Machines plummeted after the company announced that 15 of its government contract were put on hold as part of a cost-cutting initiative by the Trump Administration. The Dow Jones Industrial Average increased by 414.12 or 1.05% to 40,021.52, while the S&P 500 gained 95.32 or 1.78% to 5,471.18. Meanwhile, the Nasdaq Composite grew 395.37 or 2.37% to 17,103.42. The economic data released on Thursday revealed, among other things that the number of Americans who filed new claims for unemployment benefits increased marginally in the last week. This suggests the labor market is still resilient. The MSCI index of global stocks rose 10.45 points or 1.29% to 818.66. The pan-European STOXX 600 closed up by 0.36%. Japan's Nikkei rose 0.5%. Ryosei Acazawa, the Japanese tariff negotiator, was reportedly making final preparations to visit the United States on April 30 for a second round with his counterpart. Investors also considered the possibility that the Federal Reserve would cut interest rates for the first time in June. Beth Hammack, President of the Fed Bank of Cleveland, called on Thursday for patience in monetary policy, given the high level of uncertainty. However, she did not exclude a rate cut by June depending on economic indicators. The yield on the benchmark U.S. 10 year notes dropped 7.8 basis points from 4.387% to 4.309% late Wednesday. In the past week, Trump made verbal criticisms of Fed Chair Jerome Powell and then withdrew calls for his resignation. The dollar weakened against major currencies. The dollar was down 0.63% to $1.1383. The dollar fell 0.58% against the Japanese yen to 142.61. Gold spot prices rose, and oil prices rose too as investors took into account the falling dollar. Brent crude futures gained 43 cents or 0.7% to settle at $66.55 per barrel. U.S. West Texas Intermediate crude (WTI), which settled at $62.75, rose by 52 cents or 0.8%.
Diesel disconnect highlights market angst, not market reality: Bousso
Demand for diesel fuel is strong in the US and Europe.
Margins are reduced below seasonal levels in spite of tight supply
Market uncertainty over global economic outlook affects diesel prices
Ron Bousso
LONDON 20 March - The Atlantic Basin diesel prices have been increasingly detached from the tightening of supply and demand, reflecting the growing concern about the global economic outlook. When prices don't match the facts, then something must give.
Diesel, a refined fuel that is used in heavy construction, manufacturing and transport, can be a good indicator of industrial activity. This gauge currently points to a bullish future.
First, both in the United States as well as Europe, inventories are still tight. The U.S. Diesel inventories fell sharply to 115,000,000 barrels last week, and are now 6% lower than their five-year and 13% lower than the 10-year averages.
Similarly, diesel stocks independently held in Europe's Amsterdam-Rotterdam-Antwerp (ARA) refining hub have declined by 12% since the start of February. They remain 6% higher than their five-year mean, but are 8.5% lower than their 10-year median.
According to shipping analytics firm Kpler, diesel imports have slowed sharply in Europe so far this season compared with the year 2024.
Supplies have also tightened due to the sharp decline in Russian diesel exports, mainly caused by refinery maintenance and recent Ukrainian attacks on Russian refineries.
Demand is robust, despite a contraction in supply. The EIA reported that the average four-week supply of distillates in the United States reached 4 million barrels of product per day, an indicator for the consumption of heating oil and diesel, last week. This is up 8% compared to last year, and close to its five-year-average.
Eurostat, Eurozone's statistical office, has released preliminary data showing that industrial production in Europe increased by 0.8% from January to the previous month. The demand for diesel will increase even without considering the possible spike in infrastructure and defence investment.
DIESEL DISCONNECT
The supply-demand situation is pointing to higher diesel prices. However, the profits that refiners are making from the conversion of crude oil into Diesel have fallen below seasonal levels.
The benchmark margins for U.S. diesel refinery are around $25 per barrel, as opposed to their five-year average at $32 per barrel. In Europe, the margins for diesel refining in northwest Europe are 22% lower than their five-year average of $16.4 per barrel.
In a global energy market that is complex, it's difficult to pinpoint a single driver for the near-term dynamics of prices. In this case, however, it is likely that the main factor driving the price dynamics in the near-term is the global market uncertainty over the outlook for the economy amid increasing trade tensions.
The erratic, stop-start, rollout by U.S. president Donald Trump of tariffs against major trading partners, including China, Canada and Mexico, in recent weeks, has caused turmoil on many global markets.
Investors are trying to gauge the impact of a possible ceasefire on European energy policy, geopolitical alliances, and sanctions.
The Baker Bloom and Davis Index of Trade Policy Uncertainty, which measures this anxiety in the market, has risen to its highest level since its founding 40 years ago.
Diesel price discrepancy suggests that the negative sentiment, the deep insecurity about the direction of global manufacturing and trade, is overshadowing the tight dynamics of supply-demand on the physical market.
Investors may have gotten ahead of themselves. While the lower diesel price could be an accurate sign if the global economic contraction that was feared materializes, investors might not want to get too excited.
Diesel prices will likely rise if the fundamentals of supply and demand in the market do not change.
(source: Reuters)