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The German spot falls due to more wind and solar, while the French spot rises with temperature.
On Wednesday, European wholesale electricity prices were mixed. France's position gained on warmer weather forecasts while Germany's dropped under pressure from increased renewable energy production. Riccardo Paraviero, LSEG analyst, stated that France would not only see a rise in demand due to another hot spell, but also a slight reduction of its nuclear capacity. He added that the German market would benefit from stable consumption and an increase in wind and solar energy supplies. By 8am GMT, the price of French baseload electricity for Thursday had risen by 49.2% to 91.0 euros (105.71 dollars) per megawatt-hour (MWh). The German contract, which was 94.2 euros less than the French equivalent, maintained a premium. LSEG data put French demand for electricity on Thursday at 46 gigawatts, 500 MW more than Wednesday. They also predicted a temperature increase of 1.7 degrees Celsius in France to 23.8 degrees. German consumption, on the contrary, is likely to fall daily by 900MW, or 52.0GW. The hot weather can lead to a reduction in the amount of water available for cooling thermal power plants and a decrease in hydro-generation. The French nuclear availability dropped two percentage points, to 80% of the installed capacity. The day-ahead forecast showed that German wind power would rise to 15.5 GW, up from 10.3 GW, and German solar power will increase by 1 GW, to 13.6 GW. The German baseload power contract for the year ahead was up 0.4% at 87.1 Euro/MWh, while the French equivalent contracts closed untraded at 64.8 euro. The price of crude oil was boosted by the expectation of a strong summer demand from the United States and China. However, gains were limited by the caution expressed by analysts about the economy as a whole. The benchmark contract on the European carbon markets was down 0.5% at 71.2 Euros per metric ton. $1 = 0.8609 Euros (Reporting and Editing by Louise Heavens, Vera Eckert)
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Barclays fined $56 Million by UK for financial crime control lapses
Barclays was fined 42 million pounds ($56.31million) by the British financial regulator on Wednesday, for failing to assess money laundering risks when providing services to Stunt & Co. and WealthTek. The largest portion of the fine relates to its banking relationship to gold bullion company Stunt & Co., a client of Fowler Oldfield which was connected to a large money laundering operation. Financial Conduct Authority (FCA), said that Barclays had not gathered enough information to begin the relationship, nor did it conduct a proper monitoring process. FCA claims that Barclays did not properly vet Stunt & Co., despite the fact that the firm received 46,8 million pounds from Fowler Oldfield. The firm continued to offer services despite regulatory warnings and police raids. Stunt & Co has been liquidated. The FCA stated that Barclays reviewed its exposure to Fowler Oldfield only after learning about the regulator's decision against NatWest for its ties with the same firm. FCA stated that Barclays' provision of ongoing banking services to Stunt & Co. facilitated the transfer of funds related to financial crime. The Financial Watchdog has charged John Dance, a former principal partner of WealthTek with fraud and laundering over 64 million pounds in client accounts. This was done last December. Barclays, according to the FCA, would have known that WealthTek is not allowed to hold client funds if it had checked the Financial Services Register prior opening the account. Barclays didn't immediately respond to our request for a comment. Raechel Thankam Jobs and Yadarisa Shabong, both in Bengaluru, reported the story; Rashmi aich edited it.
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Kuvimba's revised platinum mine plan in Zimbabwe as prices rise
Trevor Barnard, the CEO of Zimbabwe's Kuvimba Mining House, said that the company will move forward with its Darwendale Platinum Project as an open pit instead of the previously planned underground mine. This project is being accelerated as platinum prices are rising. The project, which was launched by the former president Robert Mugabe in September 2014 and Russia's Minister of Foreign Affairs Sergey Lavrov, initially consisted of an underground mine. It would have cost $450 million for the first phase. In 2022, the project was put in jeopardy when Kuvimba’s Russian joint-venture partner resigned and prices for platinum group metals, which are mainly used to reduce vehicle emissions, plummeted. Barnard said in an interview that Kuvimba was moving away from its "big-bang approach" and will start with an open mine at a cost of initial $50 million. Barnard stated that the project's scope and phased approach had changed significantly. It's difficult to raise $450 millions for a project in Zimbabwe, let alone a platinum one. He said that instead, the funds would come from Mutapa, Zimbabwe's sovereign fund, as well as cash generated internally and "a bit of debt." The company has also three gold mines which will produce 116,000 ounces of gold in 2024. Analysts believe that rising platinum prices could be used to revive projects that were halted when the price was at its lowest. This is due to a rise in Chinese imports, and a decrease in South Africa's supply. The price of platinum rose by 36% in the second quarter. Prices soared by 28% in June as hedge funds and traders piled into the market. The month was their best since 1986, and they reached a record high of $1432.6 per ounce, an 11-year old high. Tharisa delayed its $391-million Karo PGM mine in Zimbabwe because of low metal prices. On July 9, it said that the company was "working to accelerate the final development", as improved commodity prices helped boost its balance sheet. (Reporting and editing by Nelson Banya, Barbara Lewis and Chris Takudzwa Muronzi)
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Copper prices remain unchanged as traders consider US CPI and tariff impact
The copper prices in London, Shanghai and Hong Kong were mostly unchanged on Wednesday, as traders analyzed a variety of macro-signals, including U.S. data on inflation and new tariffs announcements. They also assessed China's economic data for the first half. The London Metal Exchange's three-month copper fell 0.06%, to $9,640 a metric ton, by 0701 GMT. Meanwhile, the Shanghai Futures Exchange's most traded copper contract rose 0.06%, to 77980 yuan, or $10,865.11, a ton. A metals trader in Beijing at a futures firm said, "There is not much news that will move the markets today." The trader added that "China's economic data for the first half of the year is also available." He said "there's no need to worry except about the property market, which has been persistently slow." China's economy slowed down less than expected in second quarter, a sign of resilience in the face of U.S. Tariffs. Analysts warn however that weak domestic demand and increasing global trade risks may increase pressure on Beijing to implement more stimulus. In the meantime, U.S. consumer price indexes rose by 0.3% in June, which is the highest increase in five-months. The Federal Reserve may decide to delay rate cuts until September due to the uptick in inflation caused by tariffs. Other tariff news: President Donald Trump announced on Tuesday that the U.S. will impose a tariff of 19% on goods coming from Indonesia, and he revealed details on duties on pharmaceuticals. The move comes after the European Union - one of the United States' top trading partners - prepared retaliatory actions in the event that talks with Washington were unsuccessful. LME nickel rose by 0.13%, to $15,165 per ton. Tin increased by 0.22%, to $33,385, and lead dropped 0.5%, to $1,986. Aluminium rose 0.08%, to $2,582.5, and zinc remained almost unchanged at $2,697.5. SHFE nickel recovered from Tuesday's decline by adding 0.9% per ton to 120,550 Yuan. Tin rose 0.1% and aluminium gained 0.4%. Zinc fell 0.27% at 22,045 yuan, while lead dropped 0.68% to 16,895 yuan. $1 = 7.1771 Chinese Yuan (Reporting and editing by Sumana Nandy, Sonia Cheema).
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Australian shares fall as US CPI clouds Fed rate-cut hope
Australian shares dropped on Wednesday led by mining and banking companies after the latest U.S. data showed that tariffs could be driving prices up, dampening expectations for rate cuts in the near future by the Federal Reserve. The S&P/ASX 200 Index ended the day at 8561.8, a 0.8% decrease. The benchmark index had closed 0.7% higher than it did on Tuesday. This was a record closing. Data released on Tuesday showed that U.S. consumer price rose at the fastest rate in five months in June. This indicates that the intensifying import tariffs imposed by President Donald Trump are starting to affect households, and may put the Federal Reserve in a difficult position. The rate-sensitive sub-index of financials fell more than 1%, reaching its lowest level in three weeks. The top lenders Commonwealth Bank of Australia (CBA) and National Australia Bank (NAB) both lost more than 1% each. "June CPI is a late alarm...sounding in the local market and hitting names that are sensitive to rates, as well as growth stocks. The RBA should wait and see, especially in light of the current tariff situation, said Hebe Chen. CBA has been particularly affected by the financial sector's pressure due to tariff-related uncertainties and changing rate expectations. CBA had previously traded at a premium compared to its benchmark. The ASX-listed gold mining giant Newmont Corporation's shares fell 5.7% after its finance director resigned on Tuesday, causing the largest drag on the sub-index mining, which dropped 1%. South32, a miner with diversified operations, was another of the biggest losers. Its shares fell 3% after UBS lowered its price target due to concerns about its Mozal aluminum smelter. Rio Tinto, a global iron ore mining company, reported on Wednesday its highest second-quarter production since 2018. Simon Trott was appointed CEO of the company after trading hours on Tuesday. The shares of this company were down for most of the session, but ended up slightly higher. The benchmark S&P/NZX 50 Index in New Zealand ended the day at 12,754.59, up 0.5%. (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Vijay Kishore)
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Abu Dhabi's ADNOC intends to transfer 24,9% stake in OMV unit to XRG
Abu Dhabi National Oil Company announced on Wednesday that it intends to transfer its 24,9% stake in Austria's OMV AG, to its XRG Investment unit. This will be done ahead of the creation of a new chemicals company combining OMV and ADNOC companies. ADNOC bought a 24,9% stake in OMV last year from Abu Dhabi sovereign fund Mubadala without disclosing financial terms. ADNOC and OMV merged their polyolefin business earlier this year to create a chemical company with a $60 Billion enterprise value. Khaled Salmeen, CEO of ADNOC Downstream, told Khaled Salmeen in March that the merged entity Borouge Group International, or BGI, is expected to become the fourth largest polyolefins company by production capacity behind Sinopec, CNPC, and ExxonMobil. BGI announced in March that it would combine two joint ventures: Borealis, owned 75% by OMV, 25% by ADNOC; and Borouge owned 54% by ADNOC and 36.5% by Borealis. ADNOC's statement of Wednesday said that it was progressing in preparations for the proposed BGI. The statement stated that XRG would hold ADNOC's 46.94% proposed shareholding in BGI upon the completion of the transaction. This is subject to regulatory approvals.
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TotalEnergies warns of lower oil and gas sales in Q2 results
In a trading update published on Wednesday, TotalEnergies said that lower prices for oil, liquefied gas, and hydrocarbons will affect its second-quarter earnings. However, the company's production of hydrocarbons has increased slightly. Total said that the hydrocarbon production will increase by around 2.5% per year in the second quarter 2025. A 20% decline in Brent crude prices -- from $85 a barrel last year to $67.9 a barrel in the second half of 2025 -- will mean lower earnings for the upstream sector. Crude oil prices dropped in the second quarter, as OPEC+ (made up of the Organization of Petroleum Exporting Countries, and its allies, such as Russia), began to undo the self-imposed production reductions of 2,17 million barrels a day that were imposed in April. Shell reported lower earnings from gas trading and a drop in its downstream chemicals business. BP also warned about lower sales of oil and gas. Total has said that lower LNG prices, and reduced price volatility, resulted in their traders earning less money than they did both the last quarter and second quarter of 2024. The downstream sales of refined fuels will be flat in comparison to last year, when they made $379 million. The integrated power business will bring in between 500 million and 550 million dollars, up from 506 million last year. Total's overall refining margin remains 21% lower than a year earlier. The company will report its second-quarter earnings on July 24, according to the schedule. Reporting from Gdansk by Alban Kachr; editing by Milla Nissi Prussak and Joe Bavier
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Sources: India's GAIL is in the initial stages of talks with Alaska LNG for a long-term LNG contract
Three industry sources familiar with the matter have confirmed that India's GAIL, the state-owned gas company in India, is in the initial stages of talks to purchase liquefied gas from the proposed Alaskan LNG project. This comes as South Asia expands its capacity for imports. The discussions with Glenfarne developer come at a time when India is working to increase its energy imports to the United States in order to narrow its surplus trade as part of an broader trade deal with Washington, to avoid the impositions of heavy U.S. Tariffs. The sources stated that GAIL's talks are preliminary, as the landed LNG cost will be the key deciding factor in the deal. Glenfarne announced last month that fifty firms had expressed formal interest in Alaska LNG contracts. The project championed and pushed by U.S. president Donald Trump has been on paper for over a decade. GAIL has not responded to emails seeking comment about the talks. In an email to the company, it stated that "Glenfarne doesn't comment or confirm individual commercial agreements but Alaska LNG’s growing momentum is a reflection of its competitive economic and strategic advantages." India, which is the fourth largest LNG importer in the world, wants to increase its gas share to 15% of its energy mix by 2030. This will be up from 6% at present, and reduce its carbon footprint. GAIL intends to increase its Dabhol LNG Terminal's capacity from 5 million metric ton per annum to 6.3 millions ton per annum by the middle of 2027, and then to 12.5million ton per annum by the end of 2031-3. GAIL has invited companies to submit initial bids earlier this year. It is looking to purchase equity in a project, whether it be an existing LNG or a brand new project which would be completed by 2030. The Alaska LNG project, worth $44 billion, could export supercooled gas up to 20 millions metric tons annually. Alaska Governor Mike Dunleavy stated in March that the project may start exporting LNG as early as 2030. Glenfarne is expecting to make its final investment decision on the first stage of the project in the fourth quarter this year. This phase will consist of a 765 mile (1231 km) pipeline that will deliver gas to the Anchorage region from the far north of the state. Last month, Thailand's oil and gas giant PTT signed a contract for 20 years to purchase 2 million tons of LNG per year from the Alaska LNG Project. Other power producers, such as South Korea's JERA and Japan's largest producer of electricity, JERA, await clarity regarding the cost and financing of the project. GAIL has signed contracts to purchase 15.5 million tonnes of LNG annually, including 5.8 millions tons from the United States. (Reporting from Nidhi verma in New Delhi, Additional reporting by Curtis Williams at Houston; Editing and proofreading by Sonali Paul).
Two people killed in Russian Belgorod by drones from Ukraine, according to the governor
The regional governor reported that two civilians died in multiple drone strikes on the Russian region of Belgorod, which borders Ukraine.
In a Telegram post, Governor Vyacheslav gladkov reported that one man had been killed overnight in Malinovka village about 8 km (5miles) east of border.
On Sunday morning, Ukrainian forces attacked several other settlements. Gladkov reported that a woman later died in hospital, and another civilian was injured after a drone attacked a car.
The Russian defence ministry announced that it has destroyed 44 Ukrainian drones in the past 24 hours.
Ukraine has not yet responded. Both sides deny that civilians were targeted in the war which Russia began with its full-scale invasion of Ukraine in 2022.
Since the beginning of the war, Ukraine has been attacking Belgorod, as well as other bordering regions. Kyiv claims that its attacks are meant to undermine Moscow's war effort. (Reporting and editing by William Mallard/Guy Faulconbridge; Lidia Kelly, Melbourne)
(source: Reuters)