2026-01-26 19:22

Permian Basin hit hardest by storm, with 1.5 million bpd estimated decline Chevron reports issues in Permian as equipment freezes Power outages affect over 810,000 customers, PJM grid under strain HOUSTON, Jan 26 (Reuters) - U.S. oil producers lost up to 2 million barrels per day, or up to 15%, of the country's production over the weekend, analysts and traders estimated, as a winter storm swept across the country, straining energy infrastructure and power grids. Oil production outages peaked on Saturday at 2 million bpd, consultancy Energy Aspects estimated, with the Permian Basin likely to have experienced the largest share of that decline at around 1.5 million bpd. Production losses eased on Monday, with Permian shut-ins estimated at about 700,000 bpd and production set to be fully restored by January 30. Sign up here. U.S. oil and gas producer ConocoPhillips' (COP.N) , opens new tab Permian crude production was down by 175,000 bpd as of Sunday owing to frigid weather, according to a source familiar with the matter, who was not authorized to speak on the record. ConocoPhillips typically does not comment on day-to-day operations, a company spokesperson said. Chevron (CVX.N) , opens new tab reported hatches were frozen open during the storm on Sunday in Midland, Texas, according to a regulatory filing. Chevron did not immediately respond to a request for comment. Meanwhile, ExxonMobil (XOM.N) , opens new tab was experiencing multiple shut downs in gas compressors across different fields owing to low ambient temperatures, affecting oil production because the gas compression is used to lift the oil, said a source familiar with the matter, who was not authorized to speak on the record. "We closely monitor severe weather conditions and proactively implement necessary safety and operational measures to safeguard our people, maintain infrastructure integrity, and ensure continuity of essential operations," an ExxonMobil spokesperson said. Companies also face third-party takeaway challenges due to hazardous road conditions, specifically regarding water hauling and technician dispatch for repairs, the Texas Oil and Gas Association said in a note. Occidental (OXY.N) , opens new tab and Targa Resources (TRGP.N) , opens new tab were among the two dozen reports of upsets at natural gas processing plants and compressor stations in Texas, according to regulatory filings over the weekend, but that paled in comparison to the more than 200 reported upsets during the first five days of a severe winter storm in 2021, TACenergy analysts said in a note on Monday. Occidental and Targa Resources did not immediately respond to requests for comment. Output in North Dakota, the third-largest oil-producing state, was estimated to be down by around 80,000 to 110,000 bpd as of Monday morning, said Justin Kringstad, director of North Dakota Pipeline Authority. Associated wellhead natural gas production was estimated to be down by 0.24 to 0.33 billion cubic feet per day. U.S. crude futures settled at $60.63 a barrel, down 44 cents. Average gas output in the Lower 48 U.S. states dropped to 106.9 bcfd so far in January, down from a monthly record high of 109.7 bcfd in December, according to LSEG, as producers shut in production. On the refining side, several refineries along the U.S. Gulf Coast reported issues related to the freezing weather over the weekend, including ExxonMobil which shut units at its Baytown, Texas, petrochemical complex on the east side of Houston. Cenovus Energy's (CVE.TO) , opens new tab 172,000 bpd Lima, Ohio, refinery experienced mechanical issues brought about by the storm on Sunday. A full restart may be delayed until later this week due to extreme cold, industry monitor IIR said. Meanwhile, peak natural gas production losses are estimated to hit around 20 bcfd owing to the storm, according to Rystad Energy. Front-month gas futures closed at their highest since December 2022 on Monday, rising nearly 30% on the day to settle at $6.80 per million British thermal units. POWER SECTOR UNDER STRAIN Some 810,000 customers across the U.S. remained without power on Monday following the Arctic blast over the weekend that brought heavy snow, sleet and freezing rain from the Ohio Valley and mid-South to New England. Cold temperatures are expected to persist for parts of the country in coming days. The weekend snow and ice storm knocked out power to more than a million homes and businesses along the U.S. Gulf Coast and Southeast, including in Texas. The largest U.S. power grid, PJM, anticipated generation outages for Monday would rise to 22.4 GW, or about 16% of total committed capacity. Most of those outages are expected in Dominion Energy's Mid-Atlantic territory, according to PJM data. Demand on PJM was 124 GW on Monday morning, above the forecast of 123.3 GW, but it continues to meet demand, PJM operations data show. Spot wholesale electricity prices were around $200 per MWh, recovering from temporary spikes over the weekend that topped $3,000 per MWh. Next-day prices in New England soared about 82% to $313 per megawatt hour, while PJM West prices in Pennsylvania and Maryland soared about 360% to around $413, their highest since January 2014. The Southwest Power Pool, meanwhile, which operates the power grid across 14 U.S. states in the Midwest and West, said it extended a cold weather advisory for the region by two days and it will now run until midday Wednesday. It is meant to alert the public about possible disruptions caused by the frigid temperatures, but it does not require homes and businesses to conserve energy. https://www.reuters.com/business/energy/us-energy-sector-reels-after-winter-storm-knocks-out-2-million-bpd-crude-output-2026-01-26/

2026-01-26 19:10

Jan 26 (Reuters) - An international consortium developing the Karachaganak field has lost an arbitration case brought by Kazakhstan's government, leaving them liable to pay as much as $4 billion in compensation, Bloomberg News reported on Monday, citing people familiar with the matter. The oil project is operated by a consortium led by Eni (ENI.MI) , opens new tab and Shell (SHEL.L) , opens new tab, which hold a 29.25% stake each. Other partners include Chevron (CVX.N) , opens new tab with 18%, Lukoil (LKOH.MM) , opens new tab with 13.5% and KazMunayGaz (KMGZ.KZ) , opens new tab with 10%. Sign up here. The court has not yet set the final amount the consortium must pay, the report said, adding that the Karachaganak venture may still appeal the decision. External legal advice obtained by Kazakhstan suggests the arbitration ruling means the partner companies in the Karachaganak project will have to return between $2 billion and $4 billion, the Bloomberg report said. The mechanism for repaying the money could result in changes to the oil distribution formula in the field's production sharing contract, Bloomberg said. A Chevron spokesperson declined to comment as the proceedings in the dispute were still ongoing. Shell, Eni, Lukoil and KazMunayGas did not immediately reply to requests for comment. https://www.reuters.com/business/energy/energy-firms-face-up-4-billion-payout-after-losing-karachaganak-arbitration-2026-01-26/

2026-01-26 17:51

LONDON, Jan 26 (Reuters) - Tether, issuer of the world's largest stablecoin, added about 27 metric tons of gold to its fund exposure in the fourth quarter of 2025, it said on Monday, broadly unchanged from its third-quarter purchases estimated by analysts at 26 tons. Gold's 18% rise year-to-date on top of 64% growth in 2025 has seen it break through key psychological resistance levels at $3,000 per ounce in March, $4,000 in October and $5,000 on Monday due to strong investment, central-bank and retail demand amid mounting global tensions. Sign up here. As spot gold prices have rallied, the crypto company has become a significant source of gold demand due to the high speed of purchases it has reported for reserves backing the Tether USDT stablecoin, a digital dollar with $187 billion worth of tokens in circulation, and the Tether XAUT gold token, worth $2.7 billion. Each Tether-issued dollar token is intended to represent one U.S. dollar held in reserve. When a user provides Tether with a dollar, the company issues one USDT and holds assets of equivalent value, such as the U.S. Treasury bills. Those reserves are meant to ensure that USDT can be redeemed for dollars if need be. Tether XAUT stablecoin is fully backed by gold. "We are operating at a scale that now places the Tether Gold Investment Fund alongside sovereign gold holders, and that carries real responsibility," said Paolo Ardoino, Tether CEO, in Tether's statement. For comparison, Poland's central bank, the most active buyer among central banks reporting their purchases, raised its total reserves by 35 tons in the fourth quarter to 550 tons. Tether did not say how much gold it held stored in Switzerland for the two products in total. For the Tether gold token, XAUT, accounting for 60% of the global gold-backed stablecoin supply, Tether held 16.2 tons of gold to back it up as of the end of December. Its third-quarter audit of reserves for Tether dollar stablecoin, USDT, the latest publicly available, showed stocks of gold worth $12.9 billion as of the end of September, which would be equal to about 104 tons of gold at the market price at that time. The reserves backing Tether USDT were dominated by the U.S. Treasuries with gold representing only 7% as of the end-September. https://www.reuters.com/technology/tether-says-it-bought-27-tons-gold-fourth-quarter-2026-01-26/

2026-01-26 14:37

LONDON, Jan 26 (Reuters) - The British public's expectations for inflation over the coming year and further ahead have risen to their highest since October, according to a monthly survey by YouGov for U.S. bank Citi which was published on Monday. Short-term inflation expectations increased to 3.8% in January from 3.6% in December, while long-term expectations rose to 4.1% from 3.8%. Both measures fell in December and November. Sign up here. "This move is explicable, given recent data, but it will continue to keep the inflation expectation argument alive for monetary policy despite recent moderation in these series," Citi said in a note to clients. Inflation expectations are often influenced by recent data for consumer price inflation which rose in December to 3.4% from 3.2% in November. Bank of England Governor Andrew Bailey has said he expects CPI to return to near its 2% target by April or May, due in part to one-off effects. However, the central bank's Monetary Policy Committee only narrowly voted for last month's quarter-point rate cut with many of its members concerned that wages are still growing too fast for inflation to return sustainably to 2%. Citi economists Callum McLaren-Stewart and Michel Nies said that they viewed January's rise in inflation expectations as temporary but thought it would reinforce the reluctance of some BoE policymakers to cut rates further. "Conversely, we continue to sympathize with those in favour of faster cuts. Our position remains that the disinflation process is neither simple nor linear, but ultimately a combination of softer employment and weakening consumer demand should lead to deeper cuts through Q3 this year," they said. Financial markets are pricing in one quarter-point BoE rate cut by June and see a roughly 50% chance of another by November, according to LSEG data. The YouGov data was based on a survey of 2,101 adults on January 21-22. https://www.reuters.com/world/uk/uk-public-inflation-expectations-rise-january-citiyougov-survey-shows-2026-01-26/

2026-01-26 12:38

China receives 74% of Guinea's bauxite exports Guinea overtook Australia as No.1 bauxite supplier in 2023 Strong output weakens alumina prices DAKAR, Jan 26 - Guinea's bauxite exports rose 25% in 2025 to 182.8 million metric tons, official data seen by Reuters showed, ‌cementing its dominance in aluminium ore supply. A record 74% of shipments went to China, according to Chinese customs data, as Beijing tightens its grip over Guinea's vast resources. Sign up here. Guinea overtook Australia as the world's No.1 bauxite exporter in 2023, said Fitch Solutions' BMI research firm, persistently posting double-digit ‌output growth. The mines ministry data showed 23 companies shipped bauxite in 2025. China's Chalco (601600.SS) , opens new tab led with 22.1 million tons, followed by CBG - a company majority owned by a consortium including mining firms Rio Tinto (RIO.L) , opens new tab and Alcoa (AA.N) , opens new tab - with 17.4 million tons. SMB, Guinea's first ‍private bauxite exporter, and the largely Guinean-owned AGB2A/SDM joint venture shipped 17.0 million tons each. Exports slowed in the second half, but rose 16% to 84 million tons. BEIJING TIGHTENS GRIP ON GUINEA RESOURCES China remains the ⁠main beneficiary of Guinea's mining boom, controlling over 60% of the giant Simandou iron ore project ‍that began producing last year and holding stakes in gold and lithium projects. China's bauxite imports jumped 26.4% ‌in ‌2025 to 200.5 million tons on Guinean supply, data from its General Administration of Customs showed. A Citi note said Guinea had shipped China 150 million tons of bauxite by November — over 80% of the feedstock Beijing needed for its 45 million-ton aluminium smelting plants. GUINEA OUTPUT WEAKENS ⁠GLOBAL PRICES Guinea’s output surge ⁠came as China capped smelting capacity, pushing down prices. Shanghai alumina fell 48% in the first 10 months of 2025. The mines minister told Reuters in November the government is accelerating plans for domestic alumina refineries and iron-ore pellet plants to ‍reduce raw exports. "We are finally seeing production growth translate into state finances," said Bernabe Sanchez, principal mineral economist at Canadian consultancy CPCS, citing the Guinea budget ministry’s projections for a 40% rise in 2025 revenues. He expects strong exports to continue as state-owned Nimba and ‍Axis Mining ramp up production. Weekly ministry data for January 12–18 showed 4.9 million tons of bauxite and 175,880 tons of iron ore shipped. https://www.reuters.com/world/asia-pacific/guineas-bauxite-exports-jump-25-183-million-tons-2025-chinese-demand-2026-01-26/

2026-01-26 12:36

BEIJING, Jan 26 (Reuters) - China's agriculture ministry vowed to speed up measures to help the beef and dairy sectors stabilise production capacity, according to a meeting readout released on Monday, as the industries grapple with a supply glut. Supportive policies have helped the beef cattle farming industry return to profit and narrowed losses in the dairy cattle sector, but stabilising production remained an arduous task, the ministry said. Sign up here. The ministry also vowed to help the sectors receive more credit support. https://www.reuters.com/world/asia-pacific/china-pledges-policy-support-beef-dairy-sectors-2026-01-26/