2025-08-21 20:31

Brent, WTI rise for a second consecutive session Russia, Ukraine blame each other for stalled peace process US crude and gasoline stocks fall, lifting demand outlook NEW YORK, Aug 21 (Reuters) - Oil prices rose by nearly a dollar a barrel on Thursday as Russia and Ukraine blamed each other for a stalled peace process, and as earlier U.S. data showed signs of strong demand in the top oil consuming nation. Brent crude futures rose 83 cents, or 1.2%, to settle at $67.67 a barrel, a two-week high. U.S. West Texas Intermediate crude futures gained 81 cents, or 1.3%, to close at $63.52 a barrel. Sign up here. Both contracts climbed more than 1% in the prior session. The path to peace in Ukraine remained uncertain, turning oil traders cautious after a selloff over the past two weeks on hopes that U.S. President Donald Trump would soon negotiate a diplomatic end to Russia's war with its neighbor. Both Moscow and Kyiv have since blamed each other for stalling the peace process. Russia on Thursday launched a major air attack near Ukraine's border with the European Union, while Ukraine claimed to have hit a Russian oil refinery. "Some geopolitical risk premium is slowly being pumped back into the market," oil trading advisory firm Ritterbusch and Associates told clients on Thursday. The uncertainty in the peace talks means that the possibility of tighter sanctions on Russia has resurfaced, said Tamas Varga, an analyst at PVM Oil Associates. Oil prices were also supported by a larger-than-expected drawdown from U.S. crude stockpiles in the last week, indicating strong demand. U.S. crude stockpiles fell 6 million barrels in the week ended August 15, the U.S. Energy Information Administration reported on Wednesday, while analysts had expected a draw of 1.8 million barrels. "These tight domestic stockpiles stand in contrast to the oversupply outlook projected by both the IEA and EIA for 2026, challenging traders' broader market expectations," StoneX analyst Alex Hodes told clients. Investors were also looking to the Jackson Hole economic conference in Wyoming for signals on a possible Fed interest rate cut next month. The annual gathering of central bankers begins on Thursday, with Fed Chair Jerome Powell scheduled to speak on Friday. https://www.reuters.com/business/energy/oil-rises-1-stalled-russia-ukraine-peace-talks-strong-us-demand-2025-08-21/

2025-08-21 20:30

TSX ends up 0.6%, at 28,055.43 Surpasses August 13 record high Materials group adds 2.1% Energy gains 1.7 as oil settles 1.3% higher Aug 21 (Reuters) - Canada's main stock index rose on Thursday to another record high as resource shares notched gains and investors awaited a key speech by Federal Reserve Chair Jerome Powell. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 176.67 points, or 0.6%, at 28,055.43, eclipsing the record closing high it posted on August 13. Sign up here. "The TSX is having a great year versus the U.S. market and that's in the face of tariffs and all these other threats that the Canadian market is looking like a decent place," said Greg Taylor, chief investment officer at PenderFund Capital Management. Canadian Prime Minister Mark Carney spoke with U.S. President Donald Trump and had "a productive and wide-ranging conversation" on trade challenges and other issues, Carney's office said in a statement. The U.S. has increased tariffs on Canadian goods to 35% from 25% but many products are exempt under a continental trade agreement. The Toronto market has advanced 13.5% since the start of the year compared to a gain of 8.3% for the S&P 500, helped by a heavy weighting in gold mining shares. "The gold price has been flat for three months but the gold stocks look like they're ready to go and seasonally they usually have a pretty good September," Taylor said. "There's a little bit of concern that Powell and the Fed are going to be a bit more hawkish tomorrow but once we get through that it could be setting up a decent environment for gold and real assets." Three Fed officials appeared lukewarm to the idea of an interest rate cut next month, speaking ahead of Powell's highly anticipated keynote address on Friday to the annual Jackson Hole conference in Wyoming. The materials group (.GSPTTMT) , opens new tab, which includes gold mining shares, rose 2.1%. Energy was up 1.7% as the price of oil settled 1.3% higher at $63.52 a barrel. https://www.reuters.com/world/americas/tsx-closes-above-28000-first-time-resource-shares-climb-2025-08-21/

2025-08-21 19:51

OTTAWA, Aug 21 (Reuters) - Scott Moe, premier of the western Canadian province of Saskatchewan, said on Thursday that he would travel to Chinasoon for talks on persuading Beijing to drop its new tariffs on canola. China hit Canadian canola seed imports with preliminary 75.8% duties last week following an anti-dumping investigation, escalating a year-long trade dispute. China is by far Canada's biggest canola seed market. Sign up here. Canada exported almost C$5 billion ($3.63 billion) of canola products to China in 2024, about 80% of which was seed, and the steep duties would likely all but end those Chinese imports if they are maintained. "Myself will be in China in the next couple of weeks with potentially another opportunity for engagement before the end of the calendar year," Moe told a televised news conference after a meeting with industry officials and federal Agriculture Minister Heath MacDonald. "(We will) work alongside our federal government to ensure that we are advocating and advancing to ultimately ... find the resolution to this trade challenge." Moe reiterated a call for federal aid for the industry. Prime Minister Mark Carney last week said Ottawa was focusing on a series of supports but did not give specific details. https://www.reuters.com/world/china/saskatchewan-premier-go-china-discuss-canola-tariffs-2025-08-21/

2025-08-21 19:12

Aug 21 (Reuters) - The Trump administration is considering a plan to reallocate at least $2 billion from the CHIPS Act to fund critical minerals projects and boost Commerce Secretary Howard Lutnick's influence over the strategic sector, two sources familiar with the matter told Reuters. The proposed move would take from funds already allocated by Congress for semiconductor research and chip factory construction, avoiding a fresh spending request as it seeks to reduce U.S. dependence on China for critical minerals used widely in the electronics and defense industries. Sign up here. Boosting Lutnick's role over critical minerals financing would also help centralize the administration's approach to the sector, a push sought by White House officials after the rollout of the Pentagon investment in rare earths company MP Materials (MP.N) , opens new tab last month sparked questions about the U.S. government's minerals strategy, one source said. The White House did not respond to requests for comment. Pentagon officials were not immediately available to comment. MP Materials declined to comment. The Commerce Department oversees the $52.7 billion CHIPS Act, formally known as the CHIPS and Science Act. The act, signed into law by then-President Joe Biden in 2022, has provided funding so far for research while also seeking to lure chip production away from Asia and boost American domestic semiconductor production. But since taking office in January, Trump has moved to change the CHIPS Act - legislation he has called "a horrible, horrible thing" that amounts to a giveaway to companies - largely by renegotiating grants to chipmakers. Repurposing some funds for mining-related projects would align in part with the spirit of the CHIPS Act as the semiconductor industry requires abundant supplies of germanium, gallium and other critical minerals over which China has tightened its market control, said the sources, who are not permitted to speak publicly about the deliberations. "The administration is creatively trying to find ways to fund the critical minerals sector," said the first source. The plans are under discussion and could change, the sources added. Mining companies themselves could benefit, but also processing and recycling firms. Most of the minerals considered critical by the U.S. government are not processed inside the country. Kent Masters, CEO of North Carolina-based Albemarle (ALB.N) , opens new tab, the world's largest producer of lithium for rechargeable batteries, told Reuters last month that the company's stalled plans to build a U.S. lithium refinery are "difficult now without some type of government support or partnership." It was not immediately clear if the Trump administration aimed to use the funds for grants or equity stakes in mining companies, but Lutnick aims to "get the $2 billion out the door" as soon as possible, the first source said, adding that the administration aims to find other funds to reallocate in the near future. A former U.S. official said the Biden administration considered using CHIPS Act grants for rare earths but decided it was uneconomical, required many environmental exemptions and was best left for the Department of Energy to handle. The administration is also looking to use CHIPS Act-related funding to take equity stakes in Intel INTC.O and other chip makers in exchange for cash grants, Reuters reported on Tuesday. Trump moved quickly to expand U.S. critical minerals production since taking office in January by signing executive orders to boost deep-sea mining and domestic projects. On Tuesday he met with the CEOs of Rio Tinto RIO.L and BHP BHP.AX at the White House despite the ongoing negotiations with European leaders over Russia's invasion of Ukraine, a move aimed at underscoring his support for U.S. mining. The CHIPS Act deliberations come after the Energy Department last week proposed $1 billion in spending for some critical minerals projects, with funds tied to the 2021 Bipartisan Infrastructure Law. LUTNICK The White House aims to give Lutnick a greater role over funding decisions for critical minerals by giving him oversight of the decision making process within the administration, the sources said. The Pentagon's multibillion-dollar investment in MP Materials and its move to extend a price support mechanism - a deal negotiated by Deputy Defense Secretary Steve Feinberg - was seen by White House Chief of Staff Susie Wiles as uncoordinated as it sparked confusion over whether Washington would guarantee a price floor for all miners and forced the administration to clarify that it does not intend for MP to have a rare earths monopoly, the two sources said. Much of the funding for MP's deal - including Washington's equity stake, loans and purchase agreements - still needs to be allocated by Congress. Two weeks after the Pentagon announced its MP investment, administration officials rushed to meet at the White House with rare earths firms and their customers to underscore broad support for the entire sector, Reuters reported. Lutnick will now help coordinate the administration's funding decisions, taking the lead from the Pentagon and other agencies, the sources said. Lutnick ran brokerage firm Cantor Fitzgerald (CNTOR.UL) before he joined Trump's cabinet. Cantor is a large shareholder in Critical Metals Corp (CRML.O) , opens new tab, which Reuters reported in June is under consideration for a loan from the U.S. Export-Import Bank. https://www.reuters.com/world/us/trump-weighs-using-2-billion-chips-act-funding-critical-minerals-sources-say-2025-08-21/

2025-08-21 19:12

All eyes on Fed chair's address at Jackson Hole Odds of Fed rate cut next month at 74% Jobless claims rise by most in three months US business activity picked up pace in August NEW YORK, Aug 21 (Reuters) - The dollar gained on Thursday before a highly anticipated speech by Federal Reserve Chair Jerome Powell on Friday will be evaluated for any new clues on whether the U.S. central bank is likely to cut interest rates next month. Traders ramped up bets on a cut at the Fed’s September 16-17 meeting after an unexpectedly weak jobs report for July. The risk of higher inflation as President Donald Trump's administration enacts new trade tariffs, however, remains a wild card that is making some policymakers hesitant to ease. Sign up here. The Fed’s Jackson Hole theme this year is “Labor Markets in Transition,” and “I guess it depends on how much (Powell) wants to lean on cracks in the labor market,” said Eric Theoret, FX strategist at Scotiabank in Toronto. “Whether it's the payrolls and the revisions, or whether it's the claims that continue to climb higher, there is a narrative there that he can definitely push on,” Theoret said. The dollar briefly pared gains on Thursday after data showed that the number of Americans filing new applications for jobless benefits rose by the most in about three months last week. It later added to its rally after a separate report showed that U.S. business activity picked up pace in August, led by a resurgent manufacturing sector that featured the strongest growth in orders in 18 months. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, was last up 0.38% on the day at 98.60, with the euro down 0.34% at $1.1611. The Japanese yen weakened 0.65% against the greenback to 148.29 per dollar. Sterling fell 0.27% to $1.342. Economists at Goldman Sachs expect Powell on Friday to modify his comments from the July Fed meeting, when he said that the U.S. central bank is "well positioned" to wait for more information. "Instead, he might note that the FOMC is well positioned to address risks to both sides of its mandate but emphasize that downside risks to the labor market have grown following the July employment report, while reiterating that tariffs are likely to have only a one-time effect on the price level," the economists said in a report. "We do not expect him to decisively signal a September cut, but the speech should make it clear to markets that he is likely to support one," they added. Powell is seen as unlikely to clearly signal a rate cut with data for August still due before the September session. Fed funds futures traders pared expectations for a September cut ahead of Powell's speech and are now pricing in 74% odds of a September cut, down from 82% on Wednesday, according to the CME Group's FedWatch Tool. They are also pricing in 49 basis points of cuts by year-end, down from 54 basis points. Atlanta Fed President Raphael Bostic said on Thursday that he still thinks the U.S. central bank can cut its interest rate target once this year, while noting there is a lot of uncertainty around that view as the economy undergoes considerable change. Kansas City Fed President Jeffrey Schmid said there seems no rush to cut interest rates, with inflation still above the central bank's 2% target and the labor market still in solid shape. Cleveland Fed President Beth Hammack also said that based on where the economy is right now, ongoing issues with inflation mean it is not the time to cut the central bank’s interest rate target. Meanwhile, the U.S. Justice Department plans to investigate Fed Governor Lisa Cook, with a top official informing Powell of the probe and encouraging him to remove her from the board, Bloomberg News reported on Thursday. Trump on Wednesday called on Cook to resign, citing allegations made about mortgages she holds in Michigan and Georgia. In cryptocurrencies, bitcoin fell 1.77% to $112,466. https://www.reuters.com/world/middle-east/dollar-gains-before-key-powell-speech-jackson-hole-friday-2025-08-21/

2025-08-21 19:01

BUENOS AIRES, Aug 21 (Reuters) - Miner and trader Glencore will aim to produce nearly 1 million tons of copper annually at its planned El Pachon and Agua Rica projects in Argentina over the next 10 to 15 years, the company's CEO in the Latin American country said on Thursday. Argentina does not currently produce any copper, but several major miners are proposing projects that could make the country an important global supplier. Sign up here. Glencore earlier this week applied for its Argentina projects to qualify for the government's Large Investment Incentive Regime (RIGI), saying it would spend $4 billion to develop Agua Rica and $9.5 billion to develop El Pachon. Glencore's Argentina CEO Martin Perez de Solay said he anticipated initial production of 500,000 metric tons of copper a year from the projects, and that El Pachon in particular was poised for significant growth in output. "Glencore could be producing close to 1 million tons of copper in Argentina in 10 to 15 years," he said at an event organized by the Council of the Americas. He did not give a timeframe for production to start, but said he anticipated strong prices by the time the copper went on the market and global copper demand was likely to reach 35 million tons by 2035. De Solay said seven of the main projects in Argentina could produce 2 million tons of copper annually in 10 years, with investment ranging from $35 billion to $45 billion. "Two-thirds of the investment remains in Argentina, so it's essential for the foreign exchange balance," de Solay said He estimated that the output could yield $20 billion a year in exports. Argentina has not produced copper since the closure of the Bajo de la Alumbrera mine in 2018. https://www.reuters.com/world/americas/glencore-targets-1-million-tons-copper-argentina-over-coming-decade-2025-08-21/