2025-08-27 07:23
Fed's Cook says Trump has no authority to fire her Focus on US PCE data due on Friday Aug 27 (Reuters) - Gold prices slipped on Wednesday, pressured by an uptick in the dollar, although renewed concerns over the U.S. central bank's independence after President Donald Trump's threat to fire Federal Reserve Governor Lisa Cook lent support to bullion. Spot gold was down 0.5% at $3,376.99 per ounce, as of 0701 GMT, after hitting its highest level since August 11 on Tuesday. Sign up here. U.S. gold futures for December delivery eased 0.2% to $3,427. The dollar index (.DXY) , opens new tab rose about 0.3% against its rivals, making gold less attractive for other currency holders. "Short-term speculators are taking a bit of profit right now. However, gold is still being supported especially as we start to see a much more clear dovish stance from the Federal Reserve," OANDA senior market analyst Kelvin Wong said. "We could see in the near term there is still potential upward pressure to test $3,400, above it will be the $3,435 level." Trump said he was removing Fed's Cook over alleged improprieties in obtaining mortgage loans, a step that could test the boundaries of presidential power over the U.S. central bank. In response, Cook said Trump has no authority to fire her, and she will not resign. Trump has been pushing the U.S. central bank to cut rates and has repeatedly criticised Fed Chair Jerome Powell for acting too slow. Focus now shifts to the Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge, due on Friday for more cues on interest rate path after dovish remarks from Powell at Jackson Hole symposium last week. Markets are now pricing in an 87% chance of a quarter-point rate cut at the Fed's September 17 policy meeting, according to CME FedWatch Tool. Non-yielding gold typically performs well in a low-interest-rate environment. Elsewhere, spot silver fell 0.4% to $38.42 per ounce, platinum was down 0.4% at $1,343.95 and palladium was flat at $1,093.57. https://www.reuters.com/world/india/gold-prices-slip-dollar-firms-fed-turmoil-limits-losses-2025-08-27/
2025-08-27 07:11
NEW DELHI, Aug 27 (Reuters) - India, the world's third-biggest oil importer and consumer and the largest buyer of Russian seaborne crude, is caught in the crossfire of diplomatic negotiations between Russia and the United States to end the war in Ukraine. WHY HAS TRUMP IMPOSED ADDITIONAL TARIFFS ON INDIAN GOODS? An additional 25% duty by President Donald Trump takes total tariffs on Indian goods to as much as 50% from Wednesday, among Washington's highest, in retaliation for New Delhi's increased buying of Russian oil. Sign up here. White House trade adviser Peter Navarro said India's purchases of Russian crude were funding Moscow's war in Ukraine and had to stop. This month, Treasury Secretary Scott Bessent said India was profiteering from its sharply increased imports, making up 42% of total oil purchases, versus less than 1% before the war, a shift Washington has called unacceptable. Trump's strategy is in a sharp contrast to the former Biden administration, which had welcomed India's Russian oil purchases in order to help keep global oil prices , which hit a peak of $139 a barrel in 2022, in check. WHY INDIA IS BUYING RUSSIAN OIL? India and China have become the biggest Russian oil buyers since the Ukraine war broke out in 2022 and Western nations shunned energy imports from Moscow and imposed price caps on Russian oil trade. However, there is no blanket prohibition on the purchase of Russian oil if the deals meet parameters of the Western sanctions. The Indian government aims to reduce its massive crude oil import bill and provide energy at affordable rates to its 1.4 billion citizens. Additionally, the import of discounted Russian oil has allowed India to diversify from more expensive Middle Eastern grades. India has said its national interests will guide its energy import policies. The country imports over 85% of its total oil requirements for its refining capacity of 5.2 million barrels per day. WILL INDIA CONTINUE TO BUY RUSSIAN OIL? For now, India is unlikely to stop importing Russian oil due to energy security, people familiar with the matter said. However, India's imports of Russian oil are expected to fall in September from August, after state refiners paused their purchases due to smaller discounts, according to LSEG trade flow data. India's Russian oil imports are expected to remain subdued as state-refiners are not keen to buy at reduced discounts and are instead scouting for only distressed cargoes, said Indian refining sources. Discounts for Russian Urals crude delivered to India have narrowed to about $2.50 per barrel to dated Brent, trade sources said, versus discounts of $20–$25 per barrel when the war began in February 2022. India officials said it is difficult to replace Russian oil supplies as the cost of replacement barrels will rise significantly. HOW MUCH OIL DOES INDIA BUY FROM RUSSIA? India imported 1.73 million bpd of crude from Russia between January and July, accounting for more than a third of India’s total imports, trade data showed. Previously, Russian oil made up only a small fraction of India’s overall imports due to logistical constraints, including costly and longer shipping routes. India reduced its crude intake from Middle Eastern and African nations after increasing Russian imports. WHO ARE THE TOP BUYERS OF RUSSIAN OIL IN INDIA? Indian private refiners Reliance Industries (RELI.NS) , opens new tab and Nayara Energy are the top buyers of Russian oil. Reliance operates the world’s largest refining complex, while Nayara is majority owned by Russian entities, including Rosneft. Reliance has a term contract with Rosneft (ROSN.MM) , opens new tab, India’s largest oil import deal with Russia. Together, the two companies account for about 60% of India’s total Russian oil imports. In contrast, state-run refiners purchase Russian oil from the spot market on a delivered basis. ALTERNATIVES TO RUSSIAN OIL Indian companies have raised crude imports from the U.S. and the Middle East in recent months to replace Russian supply. https://www.reuters.com/world/india/why-indias-russian-oil-imports-sparked-us-tariffs-amid-ukraine-peace-talks-2025-08-27/
2025-08-27 07:03
Mitsubishi consortia withdraws from three Japan offshore wind projects Mitsubishi won the first round of state auctions in 2021 Japan is betting on renewables to cut fossil fuel imports TOKYO, Aug 27 (Reuters) - Mitsubishi Corp (8058.T) , opens new tab said on Wednesday it would withdraw from three Japanese offshore wind power projects due to soaring costs, in a blow to the energy security goals of a country eager to reduce its dependence on imported fuel. A Mitsubishi-led consortia won the first state auctions for the three wind farms in Chiba and Akita prefectures in 2021. The farms had projected capacity of 1.76 gigawatt (GW) and were set to start operations around 2028 to 2030. Sign up here. In a statement on Wednesday, Mitsubishi said the business environment for offshore wind power has since significantly changed worldwide due to tighter supply chains, accelerating inflation and fluid interest rates. "To adapt to these unexpected changes, we have been pursuing various options including reassessment of costs, project schedule, and revenue. However, after discussions among the partners, we have determined that establishing a viable business plan is not feasible given the current conditions," it said. Earlier this year, Mitsubishi logged a charge of 52.2 billion yen ($354 million) on the projects. On Wednesday, partner Chubu Electric Power (9502.T) , opens new tab said it expected a loss of around 17 billion yen this fiscal year due to the withdrawal. Japan wants offshore wind farm capacity to reach 10 GW by 2030 and 45 GW by 2040, and has auctioned around a tenth of targeted capacity. Winners of other offshore auctions include RWE (RWEG.DE) , opens new tab, Iberdrola (IBE.MC) , opens new tab and BP (BP.L) , opens new tab. The Ministry of Economy, Trade and Industry (METI) did not immediately reply to a request for a comment on whether it would re-auction the three sites vacated by the Mitsubishi consortia. METI has been discussing relaxing rules for developers to encourage the construction of a massive offshore wind farm sector against a global slump in which projects have been hit by soaring costs and delays. Denmark's Orsted (ORSTED.CO) , opens new tab decided to pull out of Japan last year under a global restructuring drive, and London-headquartered Shell recently shrank its team focused on Japan offshore wind as it scales back low-carbon operations. "If the projects from consequent rounds are able to move forward, this should not be seen as an apocalyptic event for wind energy in Japan," said Yuriy Humber, CEO of Tokyo-based consultancy Yuri Group. "Mitsubishi bid aggressively (in the first round), but macro and other factors went against them. Now there is a rebalancing and, I believe, the sector will emerge stronger in Japan." ($1 = 147.3300 yen) https://www.reuters.com/sustainability/climate-energy/mitsubishi-quits-japan-offshore-wind-sites-citing-rising-costs-2025-08-27/
2025-08-27 06:48
US imposes additional 25% tariffs on Indian exports Some Indian refiners resume Russian crude purchases despite levies Russia lifts August crude exports after refinery attacks NEW DELHI, Aug 27 (Reuters) - Oil prices steadied on Wednesday, after falling in the previous session, as investors watched for fresh developments in the Ukraine war and weighed hefty new U.S. tariffs on India, the world’s third-biggest crude consumer. Brent crude futures fell 9 cents to $67.13 per barrel at 0633 GMT, while West Texas Intermediate (WTI) crude futures were down 8 cents at $63.17. Sign up here. Both contracts fell more than 2% on Tuesday after beginning the week at a two-week high. "(There is) a lot of uncertainty over how the Ukraine stalemate might be resolved, which portends volatility for crude but likely in a relatively small range," said Vandana Hari, founder of oil market analysis provider Vanda Insights. "Over the past week or so, much of the Ukraine peace discount has been reversed, but the market is also not ready to price in a major supply risk premium," Hari added. U.S. special envoy Steve Witkoff said on Tuesday he will meet Ukrainian representatives in New York this week, adding that Washington is also in talks with Russia as it seeks to end the war. Additionally, U.S. President Donald Trump's doubling of tariffs on goods from India to as much as 50% took effect as scheduled on Wednesday. Trump has said the higher charges are a result of India's Russian oil buying, which increased following Moscow's invasion of Ukraine as Western sanctions led Russia to discount its cargoes. Indian refiners initially curbed their Russian crude purchases following the U.S. tariff announcements and after stricter European Union sanctions on Russian-backed Indian refinery Nayara Energy. However, state-owned refiners Indian Oil and Bharat Petroleum have resumed buying Russian supplies for September and October, company sources said last week. Indian Oil, the country's biggest refiner, has said it will continue to buy Russian crude depending on the economics. That has led some analysts to question how much impact the higher U.S. tariffs will have on Indian purchases. "The secondary tariff has not been enough to stop India from buying Russian oil. The market will be watching Russian oil flows to India closely going forward to gauge the impact, if any, of secondary tariffs," Warren Patterson, head of commodity strategy at ING, said in a note. Analysts estimate India has saved at least $17 billion by increasing oil imports from Russia since early 2022. Additional tariffs of up to 50% on Indian imports could slash exports by more than 40%, or nearly $37 billion, this April-March fiscal year alone, according to New Delhi think-tank Global Trade Research Initiative (GTRI). The war in Ukraine is influencing the oil market in other ways as Ukrainian drone attacks on Russian refineries are cutting their operations, requiring them to export the crude they cannot process. Russia has revised up its crude oil export plan from western ports by 200,000 barrels per day in August from the initial schedule after attacks last week, three people familiar with the matter said on Tuesday. https://www.reuters.com/business/energy/oil-steady-investors-eye-ukraine-war-us-tariffs-india-2025-08-27/
2025-08-27 06:47
ISLAMABAD/NEW DELHI, Aug 27 (Reuters) - India on Wednesday opened all gates of major dams on rivers in its part of the Kashmir region following heavy rains, and warned neighbouring Pakistan of the possibility of downstream flooding, an Indian government source said. Pakistan said Islamabad received the warning, and subsequently issued an alert for flooding on three rivers which flow into the country from India. Sign up here. Arch-rivals India and Pakistan have been ravaged by intense monsoon rains and flooding in recent weeks. Pakistan's heartland province of Punjab faces an "exceptionally high" risk of flooding due to a combination of heavy rains and the excess water India is releasing from the dams, which then flows across the border, according to Pakistani officials. Pakistani Punjab serves as the country's breadbasket and is home to half of its 240 million people. An Indian source said that some 200,000 cusecs of water is likely to be released. A cusec is a volume equivalent to one cubic foot, or 28 cubic litres, per second. It was unclear whether the Indian water release would be a one-off event or would be carried out in stages. A Pakistani disaster management official had warned on Tuesday that India would be releasing controlled volumes of water in coming days. Pakistan says New Delhi had passed on two earlier flood warnings since Sunday. The nuclear-armed nations have been in a tense stand-off since a brief conflict in May, their worst fighting in decades, and any flooding in Pakistan blamed on India could inflame ties. India routinely releases water from its dams when they get too full, with the excess flowing into Pakistan, as the two nations share rivers. Pakistani authorities on Wednesday called in army troops to help rescue people from already flooded areas in the Punjab province, and for relief and evacuation efforts. Pakistan began forced evacuations due to floods on Friday. The number of displaced people in Pakistani Punjab due to flooding now exceeds 167,000, including nearly 40,000 people who left voluntarily following flood warnings since August 14. The death toll from flooding in Pakistan since the start of the monsoon season in late June now stands at 802, half of them in this month alone. Punjab province was divided between the two countries when they gained independence in 1947. (This story has been refiled to fix the dateline) https://www.reuters.com/sustainability/climate-energy/india-releases-water-dams-warns-rival-pakistan-cross-border-flooding-says-source-2025-08-27/
2025-08-27 06:43
HANOI, Aug 27 (Reuters) - Vietnam is planning to switch completely to ethanol-blended gasoline from next year, opening up the possibility for the Southeast Asian country to import more ethanol and corn from the United States. The Ministry of Industry and Trade has submitted a proposal to the government to switch to E10 - a blend that mixes gasoline with up to 10% of bioethanol, according to ministry documents reviewed by Reuters. It currently uses the RON95 and RON92 unleaded gasoline standards. Sign up here. The switch will pave the way for the import of American ethanol and corn to Vietnam as the Southeast Asian country seeks to narrow its trade gap with the United States, its largest export market, according to one document. "This is one of the quick and effective solutions to increase the imports of goods from the United States, reducing the surplus," it said. The United States recorded a trade deficit of $123 billion with Vietnam last year, one of its highest globally. Vietnam in March cut its import tariff on ethanol to 5% from 10%. Donald Trump said last month that Vietnam could import U.S. products with zero tariffs. Vietnam, which consumes less than 30 million tons of petroleum products per year, has also pledged to boost imports of other American products, including airplanes, LNG, crude oil and farm produce. Vietnam's customs data showed imports from the United States in the first seven months of this year rose 22.7% to $10.54 billion, but fuels and corn were not listed specifically among the imports. The country currently has six ethanol plants with a combined capacity of 600,000 cubic metres a year, meeting around 40% of the demand for E10 gasoline production, one of the documents showed. The documents also said using E10 gasoline would help reduce carbon emissions and align with the country's net zero targets. Vietnam pledged to become carbon neutral by 2050 at the United Nations climate conference in Glasgow (COP26) in November 2021. https://www.reuters.com/sustainability/climate-energy/vietnam-make-switch-ethanol-blended-fuel-move-boost-us-imports-2025-08-27/
