Latest News
-
Serbia promises aid to Ukraine, but ducks calls for more pressure on Russia
Aleksandar Vucic, the president of Ukraine, said that Serbia would send Ukraine more humanitarian assistance but had not signed a regional agreement calling for more pressure to be put on Russia and for continued security aid for Ukraine. Vucic had earlier met President Volodymyr Zelenskiy and taken part in the regional Southeastern Europe - Ukraine summit. It was the first time in more than a decade that a Serbian president visited the Ukrainian capital. Vucic had also participated in the regional Southeastern Europe-Ukraine summit last year. Belgrade has had a long history of close relations with Moscow. It has refused to join the Western sanctions against Russia for its invasion of Ukraine. However, it has condemned Moscow's policy at the United Nations, and has expressed support for Ukraine’s territorial integrity. Vucic also met Zelenskiy several times. VUCIC FACES ANTI GOVERNMENT PROTESTS Following the summit, the longtime Serbian president, who is considering an early election as he navigates through more than a years worth of anti-government demonstrations, promised more financial, energy, and medical aid to Ukraine. He also pledged to help rebuild a town that was not named. Vucic told Serbian journalists that "we have not made any good progress so far, but we will try our best to get the best possible results for the Ukrainian people in this town." Vucic refused to sign a joint declaration of the summit, which called for a continuation of the political, military and financial support to Ukraine, as well as a strengthening of pressure on Russia. Vucic said he refused to sign the summit's joint declaration, which calls for the continuation of political, military, financial, and security support to Ukraine and strengthening pressure on Russia. Vucic stated that Serbia would continue to support Ukraine's EU application. "Ukraine and Moldova,?and all other... can count on Serbia's assistance," he said. He was referring to a former Soviet republic that is now governed by an EU-friendly government. Belgrade recognizes Ukraine as a whole, including the territories that Russia has seized since 2014. Kyiv, on the other hand, refuses to recognise Kosovo's 2008 independence, which is primarily a?Albanian province of Serbia. Since the Russian invasion of Ukraine in?2022, Serbia, a country with a population of around 6.5 million, has donated 60 million Euros in non-lethal, non-military assistance to Ukraine. Moscow has repeatedly accused Belgrade of selling ammunition via intermediaries to Ukraine. Belgrade has denied ever supplying ammunition to Ukraine, but said that it had sold to other purchasers worldwide. Vucic’s visit comes also after a conference of EU candidate countries held in Serbian capital,?Belgrade, last week. Ruslan Stefanchuk, the Ukrainian parliament's speaker, accused Moscow during the event of aggression, and "humiliating", Serbs. Maria Zakharova - the Russian Foreign Ministry spokesperson - criticised Belgrade on Saturday for failing to respond "to the hostile antiRussian remarks" made Stefanchuk.
-
US sanctions are aimed at disrupting Iran's weapons procurement
The US?government announced sanctions against individuals and entities that it claimed were a part of a network that helped Iran acquire weapons. In a statement, the U.S. Treasury Department stated that sanctions would be imposed on Iranians and Russians as well as entities with bases in Iran, Russia,?and Nigeria. The move coincides with heightened tensions, including hostilities between Washington and Tehran over the Strait of Hormuz. Treasury released a statement saying that Wednesday's targets "exemplify Iran’s use of foreign aviation, transport, and financial conduits as well as travel coordinators in order to conceal the IRGC’s role 'in illicit procurement' and to move materials and personnel around the world." These sanctions are in addition to the U.S. actions taken?in May?against companies and individuals, including some based in China and Hong Kong?against accusations that they were aiding Iran's weapons sector. The U.S. imposed sanction in June against 11 individuals and entities who helped weapons?procurement for Iran's IRGC (Islamic Revolutionary Guard Corps) and Iranian military.
-
Gold prices drop after US PPI data and focus on Middle East tensions
Gold prices recovered on Wednesday after the U.S. Producer prices fell unexpectedly in June. However, concerns about inflation and high interest rates remain due to the escalating Middle East tensions. By 11:35 am EDT (1535 GMT), spot gold had fallen nearly 1% in the previous session. U.S. gold futures dropped?0.4% at $4,053.70. Phillip Streible is the chief market strategist for Blue Line Futures. He said that gold has recovered from its earlier losses this morning, as PPI was lower than expected. This also eased concerns over multiple interest rate increases by the Fed this year. Bureau of Labor Statistics of the Labor Department reported that the Producer Price Index for Final Demand fell 0.3% in June after an upwardly revised 0.6% rise in May. The economists polled had predicted?an unchanged PPI following a previously reported advance of 1.1% in May. CME FedWatch Tool data shows that traders see a 10,2% chance for a rate hike at the Federal Reserve meeting in July, as opposed to 16,6% before the data. Data on Tuesday also showed that U.S. consumer prices slowed down more than anticipated in June. The U.S. announced that it had 'begun a new round of strikes against Iran, after reimposing a naval blocade on Iranian ports. Meanwhile, Iran has threatened to cut off regional energy exports. Oil continued to rise on Wednesday. Recent developments in the Strait of?Hormuz region have simply re-ignited fears about unchecked price pressures. If tensions continue to escalate, leading to higher oil prices, gold could be exposed. This is according Lukman Otunuga senior research analyst of FXTM. A solid break below this point could open the door to $3,950 or $3,000. If $4,000 is a reliable support, the price may rise to $4,100. Fuel costs are likely to continue rising, which could lead central banks to keep rates high for longer. This would reduce the appeal of gold as an asset that does not yield any income. Spot silver fell 1.6% to $57.67 while platinum rose 0.2% to $1.634.13. Palladium dropped 0.8% to 1,294.25. Reporting by Ashitha Shilpa Prasad in Bengaluru and Sukanya Mittra; editing by Shilpa Majumdar and Jonathan Ananda
-
Ghana adopts revised mining laws to strengthen oversight
The Ghanaian cabinet has approved amendments for the mining law to be submitted to parliament. Mines Minister Emmanuel Armah Kofi Buah announced this on Wednesday as part of efforts by government to increase oversight and curb illegal mines. Ghana, Africa's largest gold producer, is implementing reforms to boost state revenue and increase local participation in the mineral wealth. It introduced a sliding scale gold royalty regime this year linked to prices, and announced plans to phase out fiscal stabilization agreements. This could impact major miners such as Newmont, Gold Fields, AngloGold Ashanti, Zijin, and Perseus. Buah said at a press conference in Accra that Ghana's Minerals and Mining Act 2006, which has been in force for almost two decades, needs to be updated and modernized. This policy aims to indigenize the mining industry by strengthening the local content of minerals through domestic value-adding, improving links to the manufacturing industry and dealing decisively with the threat?of illicit mining and protecting our environment. The proposed law creates district mining committees that give host communities an early role in the licensing process. The prospecting and reconnaissance licences are to be replaced by a single exploration licence, which will have a maximum of five years. Extensions can only be granted after a review is made of the initial two-year programme. Buah added that if you don't invest in exploration for five years, you will lose your license. He added that mining?lease agreements would still be limited to a maximum of?20-years, but now companies would have to sign community development agreements directly negotiated with the host communities rather than being decided by the company. Maxwell Akalaare Adombila, Louise Heavens and Emmanuel Bruce contributed to the report.
-
Nuclear fuel company Standard Nuclear reduces US IPO size more than by half
Standard Nuclear has reduced the size of its proposed U.S. Initial Public Offering by more than 50 percent on Wednesday. It joins a'string' of companies who have lowered their valuation targets to match cautious investor sentiment this year. The company plans to sell 10,000,000 shares for $15 each. It originally intended to sell 18.25 million of its shares between $18-$21 each. Standard Nuclear's valuation would be $2.4 billion at $15, as opposed to its previous target of $3.55billion. Analysts claim that despite the strong resurgence of the U.S. IPO Market this year, investors remain cautious about valuations and prefer to ignore less exciting offerings. Ambulance giant GMR, and small modular reactor developer Deep Fission?have also downsized their initial public offerings?in the past few months. The poor performance of recent IPOs including SpaceX is negatively affecting demand for U.S. IPOs. This is especially true for high-risk and loss-making deals like Standard Nuclear, according to IPOX CEO Josef Schuster. The Oak Ridge, Tennessee, based company processes enriched uranium into advanced nuclear fuels for advanced nuclear reactors including small modular reactors or microreactors. It reported a $7.7-million net loss?and revenues of $593.802 for the three months ending March 31. This compares to a $8.3-million?net loss and revenues of $377.926 from a year ago. The company's revenues are primarily generated by?fuel development contracts and research and developments projects. Schuster stated that "sector-specific weaknesses" are contributing to a more challenging pricing environment. He referred to the subdued trading in NuScale?Power and Oklo which both fell more than 35% during this year. Standard?Nuclear will price its IPO on Wednesday, and debut on the NYSE Thursday. Reporting by Arasu Kanagi Basil in Bengaluru and Pragyan Kalita; editing by Shilpa Majumdar
-
Codelco believes that the lithium project at Chile's Maricunga Salt Flat is feasible within eight years
Codelco's chairman Bernardo Fontaine stated on Wednesday that the lithium project at?the Maricunga flat salt will become a reality in eight years. The state-owned copper company Codelco, along with its partner Rio Tinto, manages the Maricunga Lithium project. Fontaine stated that the agreement had not been signed because certain conditions were still to be met. Some of these conditions have already been met, while others are pending on an international level. The executive said that the joint venture agreement "awaits regulatory approval" from Chile and China, after receiving?antitrust approvals with no conditions from Brazil and South Korea, and Poland. The Chilean mining ministry has revised the special operating contract in response to observations made by the national auditor. Fontaine said that lithium is not a critical mineral and there are no supply issues. * Codelco’s new board is reviewing the state miner's plans, projects and prioritizing investment and evaluating possible asset sales. The company's?title of?world’s largest copper producer? will be lost in 2025.
-
Buffett calls Bill Gates Epstein ties "disgusting" and says that his children are prepared to share his fortune.
Warren Buffett called Bill Gates' association with the late sexual offender Jeffrey Epstein, "disgusting," but said that he would halt his donations to the Gates Foundation as his children grew older and were now ready to receive his wealth. Buffett told CNBC in an excerpt of a Wednesday interview that he tells his children to do it well. The comments were broadcast a day after 95-year-old Berkshire Hathaway Chairman omitted the Gates Foundation in his annual midyear charitable donations. He donated almost $6 billion worth of stock from his conglomerate. Buffett donated Berkshire shares worth more than $47 billion to the Gates Foundation between 2006 and 2008. The latest donation of 12 million Class B Shares will instead go to four foundations headed by his children Susie Howard and Peter. Buffett has donated over $23 billion in Berkshire Stock to the Susan Thompson Buffett Foundation as well as the Howard G. Buffett Foundation, NoVo Foundation and Sherwood Foundation since 2006. BUFFETT SAYS GATES MADE 'MISTAKES Buffett revealed that Gates, who was a close friend and a director of Berkshire for 16 years, had visited him three weeks ago in Omaha. This meeting was held after the U.S. Department of Justice released in February files relating to Gates' relationship and philanthropic efforts with Epstein. Gates met with Congress about Epstein last month. He has expressed his regrets for Epstein and has never been charged with any crimes. Buffett stated that he had made mistakes when he hired people or chose friends and later found out they were not what he thought. Buffett said that donating to Bill Gates'?Gates Foundation was a "good choice" and he had no regrets about his relationship with him. Buffett stated, "We've had a?number? of?good?times? together." It has been an amazing friendship. Epstein, who was arrested on charges of sex-trafficking in August 2019, died in a Manhattan prison cell. The medical examiner in New York City ruled the death as a suicide. Keep your marbles Buffett also accelerated his timetable for distributing the remaining Berkshire stock, which represents an approximate 13% stake in this $1.06 trillion conglomerate. Buffett wants his shares to be distributed 10 years after his death, not by the end of 2034. He noted the advancing age of his children. Susie Buffett will be 81 years old by 2034. Buffett told CNBC that he had reevaluated his entire situation. It's not only a matter of mortality. It's about keeping your marbles. Reporting by Jonathan Stempel, New York. Editing by Emelia S. Sithole-Matarise & Andrea Ricci
-
Gold gains following US PPI data and focus on Middle East tensions
The gold price reversed its earlier declines on Wednesday, after U.S. producer prices unexpectedly dropped in June. However, escalating Middle East tensions?limited gains as they kept inflation and interest rate concerns alive. By 1258 GMT, the spot price of?gold? rose 0.3% to $4067.60 an ounce at 858 AM EDT. U.S. gold futures rose 0.2% to $4 075.80. Phillip Streible is the chief market strategist for Blue Line Futures. He said that gold has recovered from its earlier losses as PPI was lower than expected. This eases some concerns regarding multiple interest rate hikes by the Fed this year. According to the Bureau of Labor Statistics of the Labor Department, last month's Producer Price Index fell 0.3% after a downwardly-revised 0.6% rise in May. The PPI was expected to remain unchanged by economists polled, after a 1.1% increase in May. CME FedWatch Tool data shows that traders expect a 9.1% chance of an increase in interest rates at the Federal Reserve meeting on July, as opposed to 16.6% before data. Data on Tuesday also showed that U.S. consumer prices slowed down more than was expected in June. The U.S. announced that it had begun a second wave of attacks against Iran, after reimposing a naval blocade?of Iranian ports. Iran, meanwhile, threatened to cut off even more regional energy exports. Oil continued to rise on Wednesday. Recent developments in the 'Strait of Hormuz' have simply re-ignited fears about unchecked price pressures. If tensions escalate further and oil prices rise, gold could be exposed to downside risks, said Lukman tunuga senior research analyst of?FXTM. A solid break below this level may open the doors to $3,950 or $3,000. If $4,000 is a reliable support level, the price may rise back to $4,100." Fuel costs may continue to drive inflation, prompting central banks to keep rates at high levels for longer. This could also affect gold's appeal as an asset that doesn't yield. Platinum gained 0.4%, bringing the price to 1,638.24. Spot silver fell 0.1%. Palladium dropped 0.1% to $1.303.50. Reporting by Ashitha Shivprasad in Bengaluru and Sukanya Mittra; editing by Shilpa Majumdar
US oil exports soar, causing domestic crude stocks to plummet
Cushing, Oklahoma is a prairie town known as the "pipeline crossroads" of the world. Its 400 oil tanks are almost empty. Refiners from around the globe have emptied them to fill a huge shortfall in supplies caused by the Middle East war.
Cushing is one of the largest oil storage hubs on earth. Since the start of the war, oil levels in the tanks have 'fallen rapidly.' Iran has effectively stopped tanker traffic on the Strait of Hormuz.
In order to supply fuel to the world economy, refiners have snatched up any crude they can find to replace the 20 million barrels of oil a day that flowed from the Strait of Gibraltar before the war. Over a billion barrels have been lost since the war began.
Cushing is a major player in the oil market, as it's the main delivery point for West Texas Intermediate Crude. This variety forms the basis of many benchmark contracts. The storage levels at Cushing affect the price of oil futures worth tens or hundreds of millions of dollars traded each day.
According to two sources, Phillips 66 Refiner believes that Cushing's oil storage could reach its operational minimum. Phillips 66 and a number of other U.S. refining companies rely on Cushing as a major source of crude oil for their plants located in the Midwest and Gulf Coast export hub.
Sources requested anonymity because they were not authorized by the company to discuss internal market forecasts. Phillips 66 refused to comment.
U.S. Government data revealed on Wednesday that Cushing inventories had fallen to 22.4?million barils as of May 29. This is a drop of about 4 million barrels compared with February 27, just a day before the U.S. and Israel war against Iran began.
According to oil storage data provider AlphaBBL, which uses drones planes and satellites for measuring and estimating oil storage, stocks dropped by 500,000 barrels from May 29 to June 2.
Jeremy Irwin is the global crude lead at Energy Aspects. He said that if the level of oil in Cushing drops below 20 million barrels there could be operational issues. Government data shows that this level hasn't been reached since the U.S. lifted oil export controls back in 2015.
According to the Energy Information Administration, Cushing's working capacity is 78.4 millions barrels.
Irwin continued, "At minimum operational levels, there's not enough oil to transfer and pump out of a tank, and blending is a problem. This could cause a delay or even cut off the flow of oil outbound from Cushing." Some tanks are equipped with outlets that allow oil to be emptied completely. Others do not. This makes it difficult to remove oil from the base.
Export Slowdown
In recent weeks, other U.S. storage centers have also reported large stockpile drawdowns as the country has ramped up its exports to unprecedented levels.
The Middle East Crisis pushed Asian and European refiners to increase their demand for American crude oil.
U.S. crude oil inventories are down to 43.4m barrels after six consecutive weeks of drawdowns. They have fallen by 63.9m barrels or 7.5% since the start of the war due to the strong drawdowns in both the commercial stocks and Strategic Petroleum Reserve.
ROARING BACK to RELEVANCE
In the last two decades, Cushing's influence on oil prices worldwide has decreased due to the rapid growth of production elsewhere in the U.S.
Cushing, however, is strategically situated to draw barrels from the top U.S. and Canadian shale-fields, while its tanks are connected to pipelines which supply U.S. refineries in the mid-continent, southern regions, and send oil to Gulf Coast ports for export.
Midwest-based refiners in the U.S., who lack access to seaborne imported products, would be hardest hit if Cushing stock levels fall below operational minimum. It also raises concerns about crude quality. The bottom of the storage tanks are often contaminated by water and sediments, which means that the oil cannot meet the quality standards set forth by refiners and exporters.
A poor crude quality or problems with procurement could increase prices for refiners, and ultimately consumers. The price of gasoline in the United States is already at its highest level for years. Farmers in the Midwest are concerned about the rising?diesel price.
Exxon executives and Chevron executives sounded the alarm last week at a conference on the rapidly declining oil stockpiles in the world, and the potential for sharply higher prices of oil in the coming weeks.
Mike Wirth, Chevron's chief executive officer, said that the market is unable to absorb the imbalance it faces today.
He said, "I would expect more upward pressure as we move into June and July." (Reporting and editing by David Gregorio in New York, with Shariq Khan reporting from New York)
(source: Reuters)