Latest News
-
Oil prices fall as markets evaluate impact of US-China Trade War
Oil prices dropped on Wednesday, as traders weighed the impact of the U.S. trade war and changing tariff policies on the U.S. economy and energy demand. Brent crude futures dropped 39 cents or 0.6% to $64.28 per barrel at 0758 GMT, while U.S. West Texas Intermediate Crude fell 43 cents or 0.7% to $60.90. Tamas Varga, analyst at PVM Oil, said that "oil was under pressure due to the IEA lowering its estimates of global oil demand growth". The International Energy Agency reported on Tuesday that the growth of global oil demand in 2025 will be at its lowest level for five years and U.S. output gains will also slow down due to President Donald Trump's trade tariffs and their retaliatory actions. The IEA forecasts that global oil demand will rise this year by 730,000 barrels a day (bpd), a sharp drop from its previous estimate of 1.03 million bpd. The IEA's reduction in the demand estimate is greater than the cut made by the Organization of the Petroleum Exporting Countries on Monday. Imad Al Khayyat, research leader at London Stock Exchange Group, stated that the tariff dispute between China and the U.S. remains the greatest threat to global oil demand and the economy. Al-Khayyat stated that "each week without any signs of an end to this standoff increases the probability of a worldwide recession and lowers price ceiling". Oil prices have fallen by 13% in the last month due to concerns over Trump's escalating trade tariffs and rising production from OPEC+, which includes OPEC, Russia, and other allies. Several banks, such as UBS, BNP Paribas, and HSBC have cut their crude oil price forecasts due to the uncertainty surrounding trade tensions. Trump has increased tariffs on Chinese products to eye-watering amounts, prompting Beijing retaliatory duty on U.S. imported goods in an intensifying war of trade between the two largest economies. Data released on Wednesday revealed that China's GDP (gross domestic product) increased 5.4% in the first three months of the year, beating the polled 5.1% growth rate. The PVM's Varga stated that "the better than expected performance is due to exporters who frontloaded shipments before the implementation of U.S. Excise Duty on Chinese Goods and will, most likely, not be repeated in the remainder of the year, as the two largest economies in the World are trying their best decouple." Market sources cited American Petroleum Institute data on Tuesday to say that U.S. crude stock rose by 2.4 millions barrels during the week ending April 11, while gasoline inventories dropped by 3 million and distillate stocks fell by 3.2million barrels.
-
Iron ore prices fall on increased Sino-US tensions and China stimulus uncertainty
The price of iron ore futures fell on Wednesday as the trade tensions between China and America escalated, causing concerns about demand prospects. Meanwhile, doubts grew over stimulus prospects after a series of positive Chinese data. The September contract for iron ore on China's Dalian Commodity Exchange recovered some of its earlier losses and ended daytime trading 0.14% lower, at 708 yuan per metric ton. As of 0717 GMT, the benchmark May iron ore traded on Singapore Exchange fell 1.28% to $97.35 per ton. Data released on Wednesday showed that China's economy grew by 5.4% in the first quarter of this year, exceeding estimates. This growth was largely due to solid industrial output and consumption. China's new-home prices were also unchanged from the previous month in March, indicating a slight improvement over February when prices dropped 0.1% on a month-to-month basis. The hopes that Beijing would launch an aggressive stimulus program to counter U.S. Tariff shocks in order to achieve its annual target of growth have somewhat dimmed. This has put downward pressure on ferrous markets. Prices fell despite signs that supply was lower and demand was resilient. Rio Tinto has reported its lowest iron ore shipment in the first quarter since 2019. The company also warned that further weather disruptions may lead to an unmet forecast for 2025. Brazilian miner Vale has produced 67.7 millions metric tons iron ore during the first quarter 2025. This is down 4.5% compared to a year ago. China's crude output of steel in March increased 4.6% compared to the previous year. This was due to higher margins and robust international exports. Coking coal and coke, the other steelmaking ingredients, were both mixed. The benchmarks for steel on the Shanghai Futures Exchange have lost ground. Rebar dropped 1.06%, while hot-rolled coils fell 1.05%. Wire rod also lost 0.72%, and stainless steel was down by 0.08%. Analyst Zhuo Quqiu at Jinrui Futures said that the steel demand showed signs of easing from last week. The impact of trade tensions in May will likely be seen. The focus is on the potential stimulus, its timing and size. (Reporting and editing by Amy Lv, Colleen Waye and Mrigank Dhaniwala).
-
Australian shares snap a two-day winning streak due to Rio Tinto's outlook
The Australian share market ended Wednesday lower, with losses at Rio Tinto, after its first-quarter report revealed a drop in shipments that lasted for several years. Meanwhile, the U.S./China trade tensions dampened risk appetite. By the end of trading, the S&P/ASX 200 was down at 7,757.60. The benchmark index ended a two-day streak of gains, remaining roughly 175 point below the level before the U.S. Tariff announcements. The benchmark was weighed down by the mining stocks, which lost 0.6%. Rio Tinto, world's biggest iron ore producer said that its quarterly iron ore shipment fell to the lowest level since 2019. It also warned of further impacts. Rio Tinto shares fell by 2.7% and BHP and Fortescue, its rivals, lost 1.2% and 2.4% respectively. The "Big Four" banks gained between 0.8% to 1.5%, a 1% increase in Australian banking stocks. Junvum Kim at Saxo Capital Markets attributed the gains from a possible rotation to banking stocks, away from mining and energy shares. The banks play a vital role in Australia’s economic growth. They are also seen as being relatively well-positioned to deal with the trade war that is raging between the United States of America and China, Australia’s largest trading partner. Nvidia's stock closed at the same level as the previous day after the company announced a $5.5billion impact of U.S. restrictions on exports to China for certain AI chips. This weighed on the Nasdaq Composite Index, which is heavily weighted with tech. The Australian technology shares fell by 1.3%. Sector heavyweights Xero Global and WiseTech Global both lost 1.2%. Investors are now awaiting local jobs data as well as New Zealand's quarter-end inflation figure on Thursday to get clues about the central banks' policy direction. The upcoming Australian federal election, which will take place on May 3, continues to be a concern for financial markets. A hung parliament could lead to uncertainty about future policy decisions. The benchmark S&P/NZX50 index in New Zealand rose 0.5%, finishing the session at 12,067.92. Reporting by Shivangi lahiri from Bengaluru, editing by Sherry Phillips
-
Gold, the safe-haven asset, reaches record highs on the back of a weak dollar and trade war worries
Gold reached a new record high on Wednesday, as the weakening dollar, trade tensions and worries about global economic growth fueled demand for safe haven assets. As of 0648 GMT, spot gold increased 1.9%, to $3,287.79 per ounce. Earlier in the session, it reached an all-time peak of $3.294.99 per kilogram. U.S. Gold Futures rose by nearly 2%, to $3304.20. Tim Waterer, chief market analyst at KCM Trade, said that a confluence factors like dollar depreciation as well as risk aversion were working in favor of gold. Gold is more attractive to other currency holders as the dollar index has fallen by 0.7%. Nvidia, in a move that escalated the U.S. - China trade tensions further, announced on Tuesday that it would be taking $5.5 billion of charges as a result of the U.S. government limiting exports to China for its H20 artificially intelligent chip. China's airlines were ordered not to accept any more Boeing jets after the U.S. placed tariffs of 145% on Chinese products. Nicholas Frappell is the global head of institutional market at ABC Refinery. He said that "more tariff uncertainty, intransigence and tariffs on goods passing through third-party nations with potential damage to global supply chain" are supporting gold. This year, gold, which is traditionally seen as a safe investment in times of geopolitical or economic uncertainty, has hit several record highs, with gains exceeding 25%. Brian Lan, Managing Director of GoldSilver Central in Singapore, said that gold will remain strong so long as uncertainty exists. Investors are now awaiting the U.S. Retail Sales data due later today for insights into the economy and Federal Reserve policy. ANZ's gold price forecast for the year-end is now $3,600 an ounce, and its six-month forecast is $3,500. Spot silver increased by 0.8%, to $32.56 an ounce. Palladium fell 0.6% to $965.96 and platinum dropped 0.5% to $954.90.
-
MSF calls Gaza a "mass grave" of Palestinians as Israeli attacks kill 13
MSF, a medical charity, said that Gaza had become a "mass-grave" for Palestinians, and those who were trying to help, on Wednesday. They said the Israeli military has killed at least thirteen Palestinians in the north, and continues to destroy homes in Rafah, in the south. Palestinian medics confirmed that an airstrike had killed 10 people. Among them was Fatema Hassouna - a well-known photographer and writer whose work captured the struggles of her community during the Gaza City war. Three people were killed in a strike on a house farther north, according to the medics. The Israeli military has not commented on the incident. Residents in Rafah in southern Gaza Strip said that the Israeli military destroyed more homes. The city has been under Israeli control for the past few days, as Israeli leaders have said, expanding the security zones of Gaza in order to increase pressure on Hamas and free remaining hostages. "Gaza is now a mass grave for Palestinians, and those who came to their aid. Amande Bazerolle is the emergency coordinator for Medecins Sans Frontieres in Gaza. She said that they were witnessing the destruction of Gaza and the forced displacements of its entire population. The humanitarian response is struggling to cope with the insecurity, and the critical shortages of supplies, which leaves people with very few options. The efforts of mediators Egypt and Qatar to bring back the ceasefire that was broken in Gaza, and free Israeli hostages, have failed. Israel and Hamas militants are locked in their positions. Hamas wants to enter the second phase in the ceasefire agreement of January. This would involve Israel's withdrawal from Gaza, and the end of the war that erupted after Hamas militants invaded Israel on 7 October 2023. Israel claims that the war will only end once Hamas has been defeated. ESSENTIAL SUPPLIES Hamas's Gaza-based health ministry said Israel had suspended the entry of medical and food supplies, as well as fuel supplies, since early March. Medical supplies have been drying up, causing the few working hospitals to be unable to continue their work. The ministry stated that "Hundreds of patients, including wounded individuals, are denied essential medication and their suffering worsens due to the closing of border crossings." Israel claimed that the measures were intended to maintain pressure on Hamas while the Islamist group condemned them as "collective punishment." Gaza's health officials have reported that since Israel resumed its offensive in March after two months relative calm, it has killed over 1,600 Palestinians. This campaign has forced hundreds of thousands to leave their homes and has blocked all supplies from entering the enclave. In the meantime, 59 Israeli hostages are still in the hands militants. Israel believes that 24 of the hostages are still alive. According to Israeli statistics, the war was started by Hamas’ attack on southern Israel in October 2023, which resulted in 1,200 deaths and 251 hostages being taken to Gaza. Local health authorities estimate that at least 51,000 Palestinians were killed by the Israeli offensive since then. Reporting and writing Nidal al Mughrabi Editing Ros Russell
-
Gold surges as shares in Asia plummet after Nvidia calms fears about fans
The shares fell on Wednesday in Asia as the AI darling Nvidia was hit by U.S. curbs to chip sales to China. This highlights the potential damage that could be caused in a global trade war. Gold also hit a new record, and safe-haven currencies rose. Treasury yields remained steady before a major speech by Federal Reserve Chair Jerome Powell, scheduled for later that day. The traders are wondering whether he'll echo the surprising dovish tone of his Fed Governor Christopher Waller or remain more balanced. Washington's overnight issue New export licensing requirements Nvidia and AMD have agreed to ship their artificial intelligence chips, the H20 and MI308, to China. Nvidia shares fell 6% after hours trading. It said that the move It would cost $5 billion. Daniel Ives is an analyst at Wedbush. He said: "This disclosure shows that Nvidia has huge restrictions and obstacles in selling to China." The Street will react with apprehension, as they are worried that these are the opening shots in the US-China tech war and Beijing/Xi won't just take the news and walk off. Donald Trump also ordered an investigation into the possibility of new tariffs for all U.S. imports of critical minerals, in addition to reviews on pharmaceuticals and chips imports. Beijing continues to be aggressive, and has reportedly told airlines to stop delivering Boeing aircraft. The selling of Asian stocks picked up pace in the late afternoon. S&P futures dropped 1.5%, while Nasdaq's futures plunged 2.3%. Euro STOXX futures indicate a drop of 1.5% at the opening. MSCI's broadest Asia-Pacific share index outside Japan dropped 1.4% on Wednesday, ending a four-day streak of gains. Japan's Nikkei dropped 1.6%. The blue chip index in China fell by 0.7%, as investors were not reassured by the solid GDP figures that preceded the April tariff hikes. Hong Kong's Hang Seng fell 2.7%. In a client note, analysts at PGIM fixed income said that both countries seemed to think they had the upper hand. This could prolong the current stalemate by several months. "China does not appear to be willing to change its stance on tariffs, and instead sees the current dynamics of trade as an opportunity to gain a foothold with countries who export to the U.S." The White House stated that Trump is willing to make a deal with China, but Beijing must be the first one to move. GOLD SHINES Gold is unstoppable. It has risen 2% in the last two months to reach a new record of $3,290 an ounce. ANZ updated its forecast on Wednesday for gold to reach $3,600 per ounce by year's end, arguing the risk-off purchasing of the asset has yet to increase. As the Japanese yen, and Swiss franc rise, it is clear that risk appetite has decreased. The dollar fell 1.1%, to 0.8145 Swiss Francs and 0.7%, to 142.32 Japanese yen. Bank of Japan governor Kazuo Ueda said to the Sankei daily that the central banks may have to take action if U.S. Tariffs hurt the Japanese Economy, signaling the possibility of a pause in the bank's rate hike cycle. U.S. Treasuries were stable on Wednesday, but failed to benefit from risk aversion. The benchmark 10-year rate remained steady at 4,325%, a long way from the recent high of 4,592%. The 30-year yield also remained unchanged at 4,777%, a 25 basis point decrease from its recent high of 4.592%. Prices of oil were lower. Brent crude fell by 1.1%, to $63.99 per barrel. U.S. crude was also down 1.1%, at $60.65 a barrel.
-
US lowers Ukraine aid estimate in minerals deal talks, Bloomberg News reports
Bloomberg News reported Wednesday that the United States had reduced its estimate of the cost for assistance provided to Ukraine after Russia's invasion 2022 from $300 billion to around $100 billion. This was based on the opinions of people who are familiar with the issue. Donald Trump, the U.S. president, is looking for a bilateral mineral deal to help end Russia's conflict in Ukraine. Trump sees the deal as a means to recoup billions of dollars that were spent on military aid to Kyiv - even though it was not a loan. The Ukrainian president Volodymyr Zelenskiy stated on Tuesday that the talks with the U.S. about a mineral deal had been "positive" and that further meetings are expected. The White House didn't immediately respond to an 'ask for comment. The Trump administration announced a new and more extensive minerals deal last month with Ukraine. This agreement does not provide Ukraine with any future security guarantees, but it requires Ukraine to invest all the income generated by the state-owned enterprises as well as private companies that exploit natural resources on Ukrainian territory in a fund for joint investments. (Reporting and editing by Tom Hogue in Bengaluru, Raju Gopalakrishnan and Harshita Menaktshi)
-
Spat Delays Dismantling of FPSO in Brazil
A dispute between state-run oil company Petrobras and steelmaker Gerdau will delay the first dismantling of an oil production vessel in Brazil by at least a year, people familiar with the matter said, in a setback for local shipyards.The operation had been hailed as a chance to reinvent Brazil's struggling shipbuilders as industrial recyclers, generating jobs as Petrobras plans to spend $9.9 billion in the next five years to retire another 10 ships of the same kind.The 45,000 ton FPSO, called P-32, was set to wrap up its decommissioning by December 2024 under a new Petrobras sustainability program.Instead, the work began only last month, according to the head of a local metalworker's union in Rio Grande do Sul state Benito de Oliveira Goncalves. He said a dispute between Petrobras and Gerdau over removing petroleum residues from the vessel had stalled work for more than a year.Another person familiar with the matter, who asked not to be named, said the ship arrived in the yard with 30 million liters of oily water and 270,000 liters of marine diesel on board, without a consensus on how to pay for its removal.The marine diesel has been pumped out and sold to a local refinery, Goncalves said, but the oily water still needs to be cleaned out before the hull can be broken down. By next month a firm should be hired for that work, the other person said.A Petrobras executive, who also requested anonymity, said the oil company and steelmaker were in talks without an agreement on how to split the additional costs. It was not clear who had paid for the extra services so far.Asked about the dispute, Petrobras said any contractual issues are discussed privately between the parties. Gerdau said the dismantling operation is under way, with all necessary procedures being conducted "responsibly".Ecovix, which runs the Rio Grande shipyard, declined to comment.Gerdau acquired the P-32 and a second vessel, P-33, for an undisclosed amount in 2023, in a deal giving it the right to dismantle and recycle scrap metal from the vessel.It was a landmark contract, introducing a new business model for Brazilian shipyards that have been struggling for years. President Luiz Inacio Lula da Silva, a former metalworker, has made it a priority to generate jobs at the shipyards with Petrobras, which has also commissioned several new ships.However, the dispute over P-32 means that the Rio Grande shipyard in southern Brazil has yet to benefit from the new decommissioning work. The costs with the vessel at the shipyard have already exceeded the value of the dismantling contract signed between Gerdau and Ecovix, around 30 million reais ($5.13 million), one source said.The delay in dismantling P-32 also means that the shipyard may lose the contract to break down P-33, the source said, as it has other work lined up, including four vessels for Petrobras.(Reuters - Reporting by Fabio Teixeira and Marta Nogueira; Additional reporting by Rodrigo Viga Gaier; Editing by Brad Haynes and Chizu Nomiyama)
Fugro Cuts Jobs and Scales Back US Operations
Dutch geodata firm Fugro on Tuesday said it started reducing its U.S. workforce and scaling back operations there after warning its sales and earnings would miss earlier forecasts because of volatile markets and lack of new U.S offshore wind projects.
The company, which provides geotechnical, survey, subsea and geosciences services, said it has already divested assets and cut more than 100 jobs in the United States because of deteriorating market environment, group CEO Mark Heine told reporters.
"The shift in the U.S. political landscape has led to a pause in new offshore wind projects. Furthermore, the highly volatile market environment is now impacting Fugro’s business in other regions as well," the company said in a statement.
"We see some scope reductions of projects and award decisions taking longer, exacerbating the typically slow start to the year," it said.
(Reuters - Reporting by Alban Kacher and Anna Peverieri; Editing by Tomasz Janowski)