2025-08-29 11:23

Gazprom may ship extra 6 bcm per year to China via existing link Power of Siberia 2 pipeline talks stalled, sources say Putin-Xi meeting to focus on energy cooperation Russia seeks to send gas to China after losing EU markets SINGAPORE/MOSCOW, Aug 28 (Reuters) - China is seeking to buy more Russian gas through an existing pipeline as talks between the two countries have failed to make progress on building a second link, thwarting Moscow's quest for new outlets, two industry sources told Reuters. Energy is expected to be high on the agenda when Russian and Chinese leaders Vladimir Putin and Xi Jinping meet in China next week. Sign up here. A breakthrough on the $13.6-billion Power of Siberia 2 pipeline project to supply 50 billion cubic metres of gas to China's northwest during the visit is unlikely, however, the sources said. Instead, they say China is considering increasing its purchases of gas via the existing Power of Siberia 1 pipeline from the current 38 bcm. The sources could not be named because they were not authorised to speak publicly on the issue. Russia is keen to expand oil and gas exports to Asia after losing European markets because of Western sanctions in response to its invasion of Ukraine. For more than 50 years, Russia has supplied gas to Europe from West Siberia, which used to provide 180 bcm a year, or up to 40% of Europe's gas needs, generating up to $90 billion a year for Moscow. Russia began deliveries to China in 2019 from East Siberia via the Power of Siberia 1 pipeline. The West and East Siberian producing areas are not yet interconnected and Moscow hopes to reroute gas from West Siberia to China by building the Power of Siberia 2 pipeline. Gazprom originally designed the pipeline to try to make China and the EU compete for gas from those fields. The project became even more important for Moscow after the EU halted most of Russian gas imports in 2022 following Russia's invasion of Ukraine. Moscow and Beijing, however, have failed to agree on pricing for the gas and funding for the pipeline despite more than a decade of talks. Gazprom did not respond to requests for comment. GAZPROM COULD EARN $1.5 BILLION PER YEAR China's growing domestic gas output and production of renewables have cut its appetite for energy, although geopolitical risks such as sanctions make inland imports from Russia more attractive, said Tatiana Mitrova from Columbia University's Center on Global Energy Policy. Gazprom and China National Petroleum Corporation are in talks to boost supplies via the Power of Siberia 1 pipeline by 6 bcm per year from 2031, a Beijing-based industry source said. CNPC did not respond to a request for comment. The new supply could generate $1.5 billion a year for Gazprom, based on a price of gas of $250 per 1,000 cubic metres, according to Reuters calculations. China's state-owned infrastructure monopoly PipeChina has launched a study to expand its domestic network in preparation for receiving more gas via the Power of Siberia 1 pipeline, a second Beijing-based industry source involved in the studies said. Construction could begin in the second half of 2026, the executive added. PipeChina did not respond to an emailed request for comment. Russia and China are discussing raising flows via the Power of Siberia 1 to 45 bcm, said Sergey Sanakoev, the head of the Asia-Pacific Research Centre in Moscow, who has been involved in Russia-China talks on energy. Gazprom has said the pipeline can pump more than its nameplate capacity of 38 bcm. "It doesn't mean that Power of Siberia 2 will be abandoned," Sanakoev said. Russia is also due to start supplying China with gas via a pipeline from the Pacific island of Sakhalin in 2027. The plans call for supply of 10 bcm per year. https://www.reuters.com/business/energy/china-seeks-more-russian-gas-via-old-link-new-pipeline-stalled-2025-08-29/

2025-08-29 11:18

BRASILIA, Aug 28 (Reuters) - Brazil's Foreign Ministry has ordered trade body Camex to start analyzing whether a local reciprocity law could be used against the United States after U.S. President Donald Trump imposed steep tariffs on several goods from the South American country. The law, passed earlier this year by Brazil's Congress, establishes a legal framework for Brazil to respond to potential unilateral trade measures targeting its goods and services, including countermeasures such as tariffs. Sign up here. "A process will be initiated," Vice President Geraldo Alckmin told reporters late on Thursday during a trip to Mexico City. "Congress passed the law almost unanimously. Its an important and necessary instrument." The move would represent an escalation by Latin America's largest economy in reacting to Trump's 50% tariffs on U.S. imports from Brazil. The country had so far initiated dispute consultations at the World Trade Organization. Alckmin noted, however, that Brazil remains open to talks with the Trump administration. "I hope this helps accelerate dialogue and negotiation," he said. Reuters reported earlier on Thursday, citing sources, that Camex had been ordered to launch the process. The move came as President Luiz Inacio Lula da Silva authorized the use of the law against the U.S., the sources said. Camex has 30 days to present a report on the matter. If it approves the use of the reciprocity law, a government working group will decide which areas Brazil should target in its measures against the U.S., the sources said. They added that the U.S. is expected to be informed on Friday about the start of the process. The U.S. imposed 50% tariffs on imports of Brazilian goods this month, as Trump decried what he called unfair trade practices and accused Brazil of a "witch hunt" against former President Jair Bolsonaro, who is on trial on charges of plotting a coup. Products such as orange juice and aircraft, which are among Brazil's major exports, were exempted from the higher duties. Brazilian government officials have publicly complained about lack of room to negotiate the tariffs with the U.S. counterparts. https://www.reuters.com/world/americas/brazil-starts-formal-process-assess-us-tariff-retaliation-2025-08-28/

2025-08-29 11:12

SINGAPORE, Aug 29 (Reuters) - The Chinese government has appointed Zhou Xinhui, a former top executive of China National Offshore Oil Corporation (CNOOC) as the president of China National Petroleum Corp (CNPC), CNPC said on Friday. Top executives of China's national oil majors have in recent years rotated their positions among themselves. Sign up here. Last month, Hou Qijun, former president of CNPC, was appointed as the new chairman of Sinopec. https://www.reuters.com/sustainability/climate-energy/former-cnooc-top-executive-appointed-cnpc-president-2025-08-29/

2025-08-29 11:10

Lloyds and NatWest down around 5%, Barclays 4% Think-tank IPPR says Britain is subsidising banks Others have called for changes to interest system Reeves under pressure to raise revenues in budget LONDON, Aug 29 (Reuters) - British bank shares fell sharply on Friday after a think-tank called for a new levy on lenders and a newspaper report said industry figures were worried the government was planning to raise cash by targeting the sector. Finance minister Rachel Reeves should use her autumn budget to tax banks on the billions of pounds they receive in interest from the Bank of England on reserves held at the central bank, the Institute for Public Policy Research recommended. Sign up here. Around 22 billion pounds ($29.7 billion) a year, which goes to the banks as a result of the BoE's bond-buying programme, represents a subsidy to the lenders, the think-tank said. Echoing calls made by other commentators in recent years, the IPPR said a new tax on the interest the banks received would give Reeves more room to meet her fiscal rules. Reeves is widely expected to increase taxes again, after raising them on employers in her first budget last year, as a subdued growth outlook and higher borrowing costs put pressure on Britain's public finances. "What started as a programme to boost the economy is now a massive drain on taxpayer money," Carsten Jung, associate director for economic policy at IPPR, said. British bank shares were the worst performers among the STOXX 600 (.STOXX) , opens new tab index of large European companies after the Financial Times said fears were growing in the industry that Reeves would target banks. NatWest (NWG.L) , opens new tab dropped 5.1% and Lloyds (LLOY.L) , opens new tab 4.9% by 1030 GMT. Barclays (BARC.L) , opens new tab sank 4% against a FTSE 100 (.FTSE) , opens new tab down 0.3%. Their shares have enjoyed a huge rally since early 2024 as higher rates boosted profitability. "In the last couple of years, the Chancellor has been protective of the banks and has avoided raising taxes," analysts at Exane told clients. "However, public finances may require additional cash and pressures for a bank tax from within the Labour party seem to be rising." A spokesperson for Britain's finance ministry said the best way to strengthen public finances was to speed up economic growth. "Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms," the spokesperson said. TAX OPTIONS British media have published reports recently on tax increase options for Reeves, ranging from a new levy on home sales and increasing taxes on landlords to freezing the thresholds at which individuals pay income tax and changes to tax relief on pensions. British banks hold hundreds of billions of pounds of reserves at the BoE, largely as a result of its quantitative easing - or bond-buying - that was launched during the 2008-09 global financial crisis and is now being run down. Banks are paid interest on reserves at the BoE's benchmark rate, which is higher now than during the QE programme. BoE losses are covered by the Treasury and, ultimately, taxpayers. BoE Governor Andrew Bailey has said the system was essential to transmit changes in official interest rates to the economy. In June, Bailey again defended the programme after it came under fire from some politicians for its cost. In May, Bailey and Reeves raised the prospect of the BoE making money from its new system for providing reserves to banks after racking up huge losses from its bond-buying programme. Industry group UK Finance said banks paid almost 45 billion pounds in tax last year. Another tax would "make the UK less internationally competitive and run counter to the government’s aim of supporting the financial services sector" to boost growth, a spokesperson said. Calls for a rethink of the system date back years. Former BoE deputy governor Paul Tucker said in 2022 the government should review it.($1 = 0.7402 pounds) https://www.reuters.com/business/finance/british-bank-shares-slide-fears-new-tax-2025-08-29/

2025-08-29 11:09

US dollar set for monthly loss of 2% Focus on US inflation data later today Larger-than-expected uptick in PCE may be negative for gold - analyst Aug 29 (Reuters) - Gold prices edged lower on Friday, but were set for a monthly gain ahead of U.S. inflation data that will provide more cues on the Federal Reserve's rate cut trajectory. Spot gold was down 0.3% at $3,407.14 per ounce, as of 1048 GMT. Bullion has gained 3.6% in August and hit $3,423.16 on Thursday, its highest level since July 23. Sign up here. U.S. gold futures for December delivery fell 0.2% to $3,466. "Besides the dollar's slight advance, gold is also feeling the gravitational forces typically found around big, round numbers. Markets appear reluctant to let gold stray far from the psychological $3,400 level ahead of PCE data," said Han Tan, chief market analyst at Nemo.Money. The dollar (.DXY) , opens new tab rose, but was set for a monthly drop of 2%. Benchmark 10-year yields were slightly above a two-week low hit on Thursday, but were headed for a monthly loss. All eyes are on the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation gauge, due later in the day. "As long as the uptick in inflation is not worse than feared, bullion bulls should be able to hold their ground above $3,400. However, if the PCE prints dash market expectations for Fed rate cuts this year, spot gold may slide back into sub-$3,400 domain once more," Tan said. Non-yielding gold typically performs well in a low-interest-rate environment. Fed Governor Christopher Waller on Thursday stepped up his call for cutting short-term U.S. borrowing costs, saying he would support an interest rate cut next month. Traders expect an 85% chance of a 25-basis point rate cut at the September policy meeting, according to the CME FedWatch Tool. Meanwhile, demand for physical gold in India picked up slightly this week, despite a recovery in prices, as jewellers stocked up ahead of the festive season. Spot silver fell 0.5% to $38.89 per ounce, platinum fell 1.1% to $1,344.74 and palladium was down 0.8% to $1,093.78. https://www.reuters.com/world/india/gold-set-post-monthly-gain-all-eyes-pce-data-2025-08-29/

2025-08-29 11:02

Quick Russia-Ukraine ceasefire deal very unlikely, analysts say Global oil demand seen growing between 0.5-1.1 mbpd in 2025 For table of crude price forecasts, click Aug 29 (Reuters) - Oil prices are unlikely to gain much traction from current levels this year as rising output from top producers adds to the risk of a surplus and U.S. tariff threats curb demand growth, a Reuters poll showed on Friday. A survey of 31 economists and analysts conducted in August forecasts Brent crude will average $67.65 per barrel in 2025, little changed from July's $67.84 forecast. The global benchmark has averaged around $70 so far this year. Sign up here. U.S. crude is seen at $64.65, compared with last month's $64.61 estimate. "(With) the latest OPEC+ supply increases and the expected lackluster global demand, the prospect is for an even larger market surplus in 2025," said Moutaz Altaghlibi, senior energy economist at ABN AMRO. He said the outlook remains clouded by "deep uncertainty" concerning any additional U.S. tariffs, especially those associated with geopolitical outcomes such as an Iranian nuclear deal or Russia agreeing to a ceasefire. Earlier this month, the Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed to raise oil production by 547,000 barrels per day for September. "OPEC+ probably still has not reached the end of their output hikes. At the moment, market share seems to be more important than a higher level of oil prices," said Frank Schallenberger, head of commodity research at LBBW. "This will lead to a big supply surplus on oil markets in 2025 and 2026 and will keep prices down." Washington's attempts to broker peace in Ukraine with Moscow have so far proven unsuccessful. Meanwhile, U.S. President Donald Trump has imposed additional tariffs on India, pressuring New Delhi to stop buying Russian oil. Most of the poll respondents see limited impact on the oil market from Trump's threats on Russian crude buyers, as they expect OPEC+ and alternative suppliers could mitigate supply gaps. However, the geopolitical risk premium is expected to underpin oil prices as a quick Russia-Ukraine ceasefire deal seems highly unlikely, analysts said. Global oil demand is seen growing by between 500,000 and 1.1 million bpd in 2025, the poll showed, compared to the International Energy Agency forecast of 680,000 bpd. Meanwhile, OPEC raised its global oil demand forecast for next year and trimmed its estimate for growth in supply from the U.S. and other producers outside the wider OPEC+ group. "U.S. production is an interesting one as President Trump would like to push for more production, but OPEC+ may be right in their projections. The reason around this is price," said Zain Vawda, analyst at MarketPulse by OANDA. https://www.reuters.com/business/energy/oil-faces-uphill-struggle-supply-glut-worries-mount-2025-08-29/