2025-09-23 06:55
Kurdistan oil export deal stalls over debt repayment assurances Global oil market faces elevated supply, IEA says Investors eye US distillate stocks amid attacks on Russian oil infrastructure HOUSTON, Sept 23 (Reuters) - Oil prices settled up more than $1 a barrel on Tuesday after a deal to resume exports from Iraq's Kurdistan stalled, pacifying some investor concerns that the restart would exacerbate worries about global oversupply. Brent crude futures settled up $1.06, or 1.6%, at $67.63 a barrel, while U.S. West Texas Intermediate crude rose $1.13, or 1.8%, to end at $63.41 a barrel. Both benchmarks recouped modest earlier losses. Sign up here. Pipeline oil exports from Iraq's Kurdistan region to Turkey had yet to restart on Tuesday despite hopes of a deal to end the deadlock, as two key producers asked for debt repayment guarantees. The deal between Iraq's federal and Kurdish regional governments and oil firms aims to resume exports of about 230,000 barrels per day of oil from Kurdistan to the global market via Turkey, halted since March 2023. Brent and WTI had fallen for the previous four sessions, dropping around 3%. "This was a perfect example of do not count your barrels until they have been pumped. The market sold off on reports of a Kurdistan deal, and the lack of a deal has now taken those barrels out of the market," said Phil Flynn, a senior analyst at Price Futures Group. Overall, the global oil market is bracing for elevated supply and slowing demand, hampered by the take-up of electric vehicles and economic pressures fueled by U.S. tariffs. In its latest monthly report, the International Energy Agency said world oil supply would rise more rapidly this year and a surplus could expand in 2026 as OPEC+ members increase output and supply from outside the producer group grows. Still, risks overhang the market as traders monitor the European Union's consideration of stricter sanctions on Russian oil exports, as well as any escalation of geopolitical tensions in the Middle East. "Supportive elements are still low OECD oil inventories," said UBS analyst Giovanni Staunovo, referring to stockpiles in higher-income economies around the world. "On the other hand, higher crude exports from OPEC+ are a headwind for prices as well as the lack of new sanctions targeting Russian oil exports." U.S. crude and gasoline stocks fell, while distillate stocks rose last week, market sources said, citing American Petroleum Institute figures on Tuesday. Crude stocks fell by 3.82 million barrels in the week ended September 19, the sources said on condition of anonymity. Gasoline inventories fell by 1.05 million barrels, while distillate inventories rose by 518,000 barrels from last week, the sources said. "The market will be keeping a close eye on distillate inventories, the soft underbelly of the market," said Price Futures Group's Flynn. A build in distillate stocks would help soften concerns surrounding Russian supplies amid attacks on the country's oil infrastructure, Flynn added. Ukraine's military struck two Russian oil distribution facilities in the Bryansk and Samara regions overnight, Kyiv's general staff said. https://www.reuters.com/business/energy/oil-little-changed-traders-assess-supply-risks-2025-09-23/
2025-09-23 06:46
JAKARTA, Sept 23 (Reuters) - Indonesia suspended 190 coal and mineral mining permits after they failed to meet their obligations for the rehabilitation of mine-damaged land or comply with production quotas, state media Antara reported on Tuesday, citing the deputy mining minister. "This is (based on) a comprehensive evaluation conducted by the Directorate General of Minerals and Coal," deputy mining minister Yuliot Tanjung was quoted as saying. Sign up here. He said the permit suspensions were linked to evaluations of the miners' post-mining land reclamation obligations and for extracting more than their quotas allowed, among other problems. Yuliot and other ministry officials did not immediately respond to a Reuters request for comment. It was not immediately clear how much the suspension would affect the output of coal and minerals from the resource-rich nation. As of late 2024, there were over 4,600 mining permits in Indonesia. President Prabowo Subianto has vowed to crack down on the illegal exploitation of natural resources, including in the mining sector. https://www.reuters.com/markets/commodities/indonesia-suspends-190-mining-permits-state-media-reports-2025-09-23/
2025-09-23 06:42
China buys at least 10 Argentine soybean cargoes after tax drop Cargoes for delivery in key period typically dominated by US Move piles pressure on US as China skips new-crop beans SINGAPORE/BEIJING, Sept 23 (Reuters) - Chinese buyers booked at least 10 cargoes of Argentine soybeans after Buenos Aires scrapped grain export taxes, three traders said on Tuesday, dealing another setback to U.S. farmers already shut out of their top market and hit by low prices. Argentina's temporary tax move boosts the competitiveness of its soybeans, prompting traders to secure cargoes for fourth-quarter inventories in China, a period usually dominated by U.S. shipments but now clouded by Washington's trade war with Beijing. Sign up here. The Panamax-sized shipments of 65,000 metric tons each are scheduled for November, with CNF (cost and freight) prices quoted at a premium of $2.15-$2.30 per bushel to the Chicago Board of Trade (CBOT) November soybean contract , two traders with direct knowledge of the matter said. One of the traders said Chinese buyers had booked 15 cargoes. The deals are a fresh blow for U.S. farmers, who are missing out on billions of dollars of soybean sales to China halfway through their prime marketing season as unresolved trade talks freeze exports and rival South American suppliers led by Brazil step in to fill the gap, traders and analysts have said. "Every time China turns to South America instead of the U.S., soybean farmers and our farm families here at home lose out," said Caleb Ragland, a farmer from Magnolia, Kentucky, and president of the American Soybean Association. "Without a trade deal that removes retaliatory tariffs, farmers like me are left watching key opportunities slip away." CHINA AVOIDS US SOY China, the world's biggest buyer of soybeans, has yet to purchase any U.S. soybean cargoes from its autumn harvest, traders have said. "These deals were done last night after Argentina's decision on export tax," said one of the traders, declining to be identified as they were not authorised to speak with media. "It clearly means that China doesn't need U.S. beans." On Friday, Chinese President Xi Jinping and U.S. President Donald Trump held a phone call but neither side reported any update on agriculture, further squeezing Chicago soybean futures already near five-year lows. After Argentina scrapped its export tax, Chicago soybean futures set a six-week low on Tuesday. "China is trying to avoid the U.S. during our export window," said Ted Seifried, chief market strategist for Zaner Ag Hedge in Chicago. "The timing is really perfect for them." Earlier this month, Reuters reported that China had nearly completed soybean purchases for October shipment and booked around 15% of its November needs, all from South America. By that time in previous years, traders said, China would have bought 12-13 million tons from the U.S. for September-November shipment. China has been gobbling up Argentina's raw soy during the trade war, with Argentine exports hitting a six-year high in the 2024/25 season. Local processors, however, are feeling the pinch. "It's clearly a concern," said Gustavo Idigoras, head of Argentina's soybean crushing chamber. "The temporary tax cut encourages China to take Argentina's soy." TEMPORARY TAX BREAK Argentina's government said the temporary grain tax suspension will last through October, or until declared exports reach $7 billion, a move that drove Chinese soymeal futures lower on Tuesday. By 0639 GMT, China's most-active Dalian soymeal futures were down 3.5% and the most-active Dalian soybean oil futures dropped 3.5%. "The decline in prices was mainly due to Argentina's removal of grain export taxes yesterday, which made prices more attractive to Chinese buyers given the favourable crushing margins," said Johnny Xiang, founder of Beijing-based AgRadar Consulting. "But the impact of this news is likely to be short-lived, as the policy will last for just over a month and Argentina's overall supply is limited," he added. Argentina typically imposes a 26% export tax on soybeans. China's soybean imports hit record highs in May, June, July and August, boosting inventories, partly as a hedge by buyers against potential fourth-quarter supply disruptions. "Looking ahead, the key factors to watch are actual Argentine soybean purchases and arrivals, along with the outcome of U.S.-China talks and how they might affect soybean imports in the fourth quarter and early next year," said Wan Chengzhi, an analyst at Capital Jingdu Futures. https://www.reuters.com/world/china/chinese-buyers-book-least-10-argentine-soybean-cargoes-sources-say-2025-09-23/
2025-09-23 06:22
NEW DELHI, Sept 23 (Reuters) - Sri Lanka has no immediate plans to import liquefied natural gas (LNG) from India, as the required infrastructure including storage facilities is yet to be built, the country’s energy minister said on Tuesday. India announced last year it would supply LNG to Sri Lanka’s power plants and work on cross-border energy connectivity, including a petroleum pipeline and power grid link. Sign up here. However, no progress has been made on the supply of LNG. "We have to first build the storage facility. Construction has not commenced yet,” said Sri Lanka's energy minister Kumara Jayakody, speaking to Reuters on the sidelines of Confederation of Indian Industry's energy summit in New Delhi. Sri Lanka is yet to finalise the LNG contract procurement with India, he said. The minister said it would take at least three years to complete construction of the storage infrastructure, and imports would begin only after that. While discussions to build storage had taken place under the previous government, no contracts have been finalised, he added. “We are studying the earlier content, deciding the location, and evaluating the loan and pricing aspects,” Jayakody said. Indian state-run firm Petronet LNG (PLNG.NS) , opens new tab had last year signed a deal to supply LNG to Sri Lankan engineering firm LTL Holdings' power plants in Colombo. The minister said both countries have formed a team and are working on submitting prospective reports about the planned work of developing a cross-border transmission system from southern India to the island's north. https://www.reuters.com/sustainability/climate-energy/sri-lanka-says-no-immediate-lng-imports-india-infrastructure-lags-2025-09-23/
2025-09-23 06:20
ROME, Sept 23 (Reuters) - Italy's government has given a conditional green light to the merger between energy contractor Saipem (SPMI.MI) , opens new tab and its Norwegian rival Subsea7 (SUBC.OL) , opens new tab, financial newspaper MF reported on Tuesday. Rome's approval, given on September 18, is subject to Saipem keeping in Italy all those activities that are considered strategic, giving priority to Italian energy infrastructure and continuing its underwater drone project, the report said. Sign up here. The merger will be voted on by the two companies' shareholder meetings, both on Thursday, the report said. The newspaper added that despite the conditions, which are aimed at protecting the national interest, the government sees the merger as "crucial for Saipem". The Italian government controls 12.8% of Saipem through state lender CDP. State-backed energy group Eni (ENI.MI) , opens new tab holds a further 21.2%. The combined group, to be renamed Saipem7, will have an order backlog of 43 billion euros ($50.62 billion), revenue of about 21 billion euros and core earnings of more than 2 billion euros, the companies said in a statement in July. The deal is expected to be completed in the second half of 2026, the companies said. Saipem, Subsea7 and the Italian government were not immediately available for comment. https://www.reuters.com/business/energy/italy-gives-conditional-green-light-saipems-merger-with-norways-subsea7-paper-2025-09-23/
2025-09-23 06:18
Fed Chair Jerome Powell to speak at 1635 GMT Miran says Fed endangering its job goal with restrictive rates Spot gold hits record high of $3,759.02/oz Sept 23 (Reuters) - Gold prices steadied on Tuesday after reaching a record high, underpinned by expectations of more U.S. rate cuts and a weaker dollar, as investors awaited Federal Reserve Chair Jerome Powell's speech for further policy cues. Spot gold was up 0.2% at $3,753.25 per ounce, as of 0604 GMT, after hitting a record high of $3,759.02 earlier in the session. Sign up here. U.S. gold futures for December delivery rose 0.3% to $3,787.40. The U.S. dollar index (.DXY) , opens new tab extended its losses from the previous session, making greenback-priced gold cheaper for overseas buyers. "I think it's predominantly a factor of monetary policy expectations, potentially lower interest rates, and upside risks to inflation," said Capital.com analyst Kyle Rodda. "The short-term trend is still bullish intact, but on an intraday basis, we do expect a short-term pullback more due to technical factors," OANDA senior market analyst Kelvin Wong said. Investors are closely awaiting Powell's speech, due at 1635 GMT, for signals on the U.S. central bank's policy. The U.S. Personal Consumption Expenditures index, Fed's preferred inflation gauge, is due on Friday. New Federal Reserve Governor Stephen Miran said on Monday that the Fed is misreading how tight it has set monetary policy and will put the job market at risk without aggressive rate cuts, a view countered in remarks by three of his colleagues who feel the central bank needs to remain cautious about inflation. According to the CME FedWatch tool, investors see a 90% probability of a 25-basis-point rate cut in October and a 75% chance of another one in December. "We see slowing economic growth, higher inflation, the shifting geopolitical landscape and a weaker USD keeping gold's investment demand strong," ANZ said in a note. Spot silver fell 0.6% to $43.82 per ounce, hovering near a 14-year high. Platinum was down 0.3% at $1,412.64 and palladium inched higher 0.3% to $1,182.24. "Sustained tightness in the spot market and continued supply dislocation is expected to keep (silver) prices volatile," ANZ added. https://www.reuters.com/world/india/gold-hits-record-high-traders-bet-us-rate-cuts-eye-powells-signal-2025-09-23/
