2025-08-12 06:54
Brent gains 0.2%, WTI up 0.1% U.S., China extend tariff pause to November Eyes on U.S. inflation data due later on Tuesday Trump-Putin talks on Friday cloud oil outlook SINGAPORE, Aug 12 (Reuters) - Oil prices rose on Tuesday as the United States and China extended a pause on higher tariffs, easing concerns an escalation of their trade war would disrupt their economies and crimp fuel demand in the world's two largest oil consumers. Brent crude futures gained 14 cents, or 0.2%, to $66.77 a barrel by 0643 GMT, while U.S. West Texas Intermediate crude futures rose 8 cents, or 0.1%, to $64.04. Sign up here. U.S. President Donald Trump extended a tariff truce with China to November 10, staving off triple-digit duties on Chinese goods as U.S. retailers prepared for the critical end-of-year holiday season. This raised hopes that an agreement could be attained between the world's two largest economies and avert a virtual trade embargo between them. Tariffs risk slowing global growth, which could sap fuel demand and drag oil prices lower. Oil's gains have also been supported by fresh signs of softness in the U.S. labour market, which have boosted expectations for a Federal Reserve rate cut in September, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova. Also on the radar is U.S. inflation data later in the day, that could shape the Fed's rate path. Interest rate cuts typically boost economic activity and oil demand. Potentially weighing on the oil market, Trump and Russian President Vladimir Putin are due to meet in Alaska on Friday to discuss an end to the war in Ukraine. "The U.S.-Russia diplomatic track on the Ukraine conflict remains a wildcard, with traders monitoring for any geopolitical surprises that could disrupt supply routes or sanction regimes," Sachdeva said. The meeting comes as the U.S. steps up pressure on Russia, with the threat of harsher penalties on Russian oil buyers such as China and India if no peace deal is reached. "Any peace deal between Russia and Ukraine would end the risk of disruption to Russian oil that has been hovering over the market," ANZ senior commodity strategist Daniel Hynes wrote in a note. Trump set a deadline of last Friday for Russia to agree to peace in Ukraine or have its oil buyers face secondary sanctions, while pressing India to reduce purchases of Russian oil. Washington also wants Beijing to stop buying Russian oil, with Trump threatening to impose secondary tariffs on China. The risk of those sanctions being enacted has receded ahead of the August 15 Trump-Putin meeting. https://www.reuters.com/business/energy/oil-inches-up-us-china-tariff-truce-extension-boosts-trade-hopes-2025-08-12/
2025-08-12 06:52
NEW DELHI, Aug 12 (Reuters) - India's HPCL-Mittal Energy Ltd (HMEL) plans to shut its Bathinda oil refinery in the northern Punjab state for about 40 days from early November for maintenance, two sources familiar with the plan said. Some units will also be upgraded during the shutdown, one source said. The sources requested anonymity as they are not authorised to speak to media. Sign up here. HMEL did not immediately respond to Reuters request for comment. The 226,000 barrels per day (bpd) refinery is partly owned by steel tycoon L N Mittal. State-refiner Hindustan Petroleum Corp (HPCL.NS) , opens new tab and Mittal Energy Investments Pvt Ltd own a 49% stake each in the project. https://www.reuters.com/world/india/indias-hmel-plans-shut-refinery-40-day-maintenance-sources-say-2025-08-12/
2025-08-12 06:48
SINGAPORE, Aug 12 (Reuters) - Sinochem has delivered its first Middle East crude cargo during the Platts Dubai Market on Close process, trade sources said, part of an effort by the Chinese firm to step up oil trading in Asia. The company delivered an Oman crude cargo for October loading to Trafigura during the S&P Global Platts Market on Close process on Monday, after completing the sale of 20 Dubai partial lots so far this month, data from trade sources showed. Sign up here. Platts assesses trades conducted during the MoC process, also known as the window, to set daily prices for Middle East crude benchmark Dubai, used in pricing more than 14 million barrels per day of oil produced in the Middle East and exported to Asia. Sinochem is participating in window trades to diversify its trading tools and capabilities, one source familiar with the matter said. Another two sources said the company is expanding derivatives trading from its Beijing and Singapore offices and has relocated a trader from China to Singapore. Sinochem did not respond to a Reuters email seeking comments on its trading activity. https://www.reuters.com/business/energy/sinochem-delivers-first-middle-east-oil-cargo-platts-window-sources-say-2025-08-12/
2025-08-12 06:48
MELBOURNE, Aug 12 (Reuters) - Arafura Rare Earths (ARU.AX) , opens new tab has received a letter of interest from Australia's export finance agency about potential funding for its Nolans project in the Northern Territory, which a source said would likely amount to around $100 million. Export Finance Australia has provided a non-binding letter of interest for funding support for the project, Arafura - which is backed by billionaire Gina Rinehart - said in an exchange filing on Tuesday. Sign up here. The potential funding is part of a Western push to develop rare earths supply chains with international partners outside of top producer China. Australia's resources minister last week said the government was considering price floors to support critical minerals projects, including for rare earths. "We will now be advancing due diligence with both of these parties," Arafura's CEO Darryl Cuzzubbo said. The funding, which is yet to be decided on but is likely to be in the vicinity of $100 million, would mean that Arafura would be able to "materially close" a cornerstone equity target that is 60% of the $775 million total equity requirement, the source said. The backing follows Prime Minister Anthony Albanese's announcement last year that Australia would provide up to A$840 million ($547.85 million) for Nolans, the first combined rare earths mine and refinery in the Northern Territory. The project has also entered an appraisal phase for potential equity investment from Germany's Raw Materials Fund after being referred by the country's Interministerial Committee last month. Rinehart's Hancock Prospecting is Arafura's largest shareholder with an 8.57% stake, per LSEG data. Shares of the company were down 2.4% at A$0.2 as of 0258 GMT, while the broader mining sub-index (.AXMM) , opens new tab fell 0.2%. ($1 = 1.5333 Australian dollars) (This story has been corrected to clarify the funding amount has not yet been offered but is likely to be around $100 million, in paragraphs 1 and 5) https://www.reuters.com/world/asia-pacific/australias-arafura-rare-earths-eyes-100-million-export-agency-funding-source-2025-08-12/
2025-08-12 06:29
MUMBAI, Aug 12 (Reuters) - The Indian rupee inched higher on Tuesday, while forward premiums slipped, with traders focusing more on upcoming U.S. inflation reading than on India's data, given the uncertainty over the Federal Reserve's policy path. The rupee was quoting at 87.6425 at 11.22 am IST, up slightly from 87.66 on Monday. The currency had opened a tad weaker at 87.7050. The implied yield on the one-year dollar/rupee forward premium was down 2 basis points at 2.06%. Sign up here. The July India consumer price index (CPI) data due Tuesday is expected to show inflation at its slowest pace in eight years, at 1.76%. Traders said the number will have little impact on either spot or forwards since the soft print is already priced in. "Positioning in forwards is fairly light, and the direction will largely hinge on what happens with U.S. rates," said a currency forwards trader at a bank. The U.S. July data, due after the release of India's report, is expected to show that core inflation rose at the pace of 0.3%. The numbers come after a weaker-than-expected U.S. jobs report, which has bolstered bets that the Federal Reserve will cut rates next month and at least once more in the last quarter of 2025. Investors have priced in a 90% chance of a rate cut in September. ING Bank is forecasting a 0.4% core print, which it said would place higher emphasis on subsequent data "and may limit further dovish repricing in the near term, though should not materially reverse September cut bets." U.S. President Donald Trump's tariffs have added uncertainty to the inflation outlook, complicating the Fed's policy path. While recent data suggests the labour market is cooling, the pass-through from higher import costs could keep price pressures elevated, forcing policymakers to weigh the risks of cutting rates too quickly. https://www.reuters.com/world/india/rupee-nudges-up-forward-premiums-dip-before-inflation-doubleheader-2025-08-12/
2025-08-12 05:49
MELBOURNE, Aug 12 (Reuters) - Peabody Energy (BTU.N) , opens new tab is set to reveal on August 19 whether it will continue with its $3.78 billion bid for Anglo American's (AAL.L) , opens new tab Australian coking coal mines, as time ticks down for it to renegotiate a lower price for the deal. The U.S. miner last year agreed to buy the mines in Queensland's Bowen Basin, the world's top coking coal region, as part of its move into becoming a coking coal producer. Sign up here. But in March, the Moranbah North mine was closed due to high gas levels, leading Peabody to trigger a clause that allows a party to break or renegotiate a deal if a significant negative event occurs between signing and completion. In this case, it gave a 90 day consultation process which expired on August 3. Since it has not reached a revised agreement with the seller, Peabody intends to provide an update on August 19, it said at its results. "We believe a last minute deal has become less likely, and our base case now is that this goes to arbitration," Jefferies said in a note on Monday. The broker estimates a $316 million value hit if the Moranbah North mine is able to be ramped back to full capacity within three months from Sept 1. Anglo says the event does not qualify as significant since damages and downtime are likely to be limited and CEO Duncan Wanblad has said next steps were up to Peabody. Part of the standoff is because it is unclear when the mine will be able to restart while the state regulator assesses its safety. The regulator did not provide a timeline when contacted by Reuters but said the mine was undergoing a "staged approach" to reentry as it prioritised worker safety. For Anglo, any arbitration would push back its restructure, and may raise concerns around mine management and choice of buyer. Strong interest from previous bidders is expected and Anglo is prepared to rerun the process, a source familiar with the matter told Reuters. Anglo did not immediately reply to a request for comment. For Peabody, ending the deal would ease the pressure of looming repayments to a $2 billion dollar bridge loan due from late November. Peabody posted a second quarter loss as coal prices fell by a third from a year earlier. Peabody and Anglo did not immediately comment outside office hours. https://www.reuters.com/business/energy/peabodys-38-billion-bid-anglo-american-mines-looms-next-week-2025-08-12/
