2025-07-03 23:21
July 4 (Reuters) - Australian oil and gas producer Santos (STO.AX) , opens new tab said on Friday it had signed a mid-term liquefied natural gas supply deal with QatarEnergy Trading, a wholly-owned unit of QatarEnergy, the world's largest exporter of LNG. Under the deal, Santos said it would supply 0.5 million tonnes of LNG per annum over a period of two years from 2026. The commodity would be supplied from the firm's wide portfolio of LNG assets, it said in its statement. Sign up here. Qatar is the world's third-biggest liquefied natural gas exporter after the U.S. and Australia. "We continue to see very strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG, as well as for reliable regional supply," said Kevin Gallagher, Santos CEO and managing director. In June, Santos, the country's second-largest independent gas producer, said it had been progressing well towards final commissioning activities at its Barossa LNG project. The Barossa project, together with the Pikka Phase 1 project in Alaska, is expected to deliver a 30% increase in production for Santos in the next 18 months compared to 2024. Last month, an international consortium led by Abu Dhabi's National Oil Company (ADNOC) offered to buy out Santos in an all-cash $18.7 billion takeover bid, which the latter intended to support. https://www.reuters.com/business/energy/australias-santos-signs-lng-supply-deal-with-qatarenergys-unit-2025-07-03/
2025-07-03 22:55
July 3 (Reuters) - Barclays on Thursday said it raised its Brent oil price forecast by $6 to $72 per barrel for 2025 and by $10 to $70 a barrel for 2026 on an improved outlook for demand. "Geopolitical tensions have eased as the U.S.-mediated ceasefire between Israel and Iran continues to hold and the risk premium has evaporated, but price action has been reflecting better-than-expected fundamentals, in our view," said Barclays in a note. Sign up here. Despite an accelerated increase in output from the Organization of the Petroleum Exporting Countries and its allies including Russia (OPEC+), global crude oil inventories declined in the second quarter, Barclays said. The tighter balance outlook is driven by stronger demand growth, weaker non-OPEC supply growth, and the International Energy Agency's (IEA) upward revision of baseline demand estimates, it said. Barclays raised its outlook for global demand growth by 260,000 barrels per day, with most of that coming from Organisation for Economic Co-operation and Development (OECD) countries, where it said "demand has been coming in stronger than expected". It now sees U.S. oil demand growing by 130,000 bpd this year, which is 100,000 bpd ahead of its previous estimate following a weather-related demand boost earlier in the year, although it still expects a gradual slowdown in activity. On the supply side, while OPEC+ will likely continue to phase out its voluntary production cuts at an accelerated pace, the actual output increase likely will continue to lag, Barclays said, pointing to pressure on some OPEC+ producers to curb output to compensate for earlier producing above their quotas. "Between March and May 2025, OPEC+ target increased by 548 kb/d but the group's output remained largely flat, resulting in better compliance, in aggregate," it said. https://www.reuters.com/business/energy/barclays-raises-brent-forecast-72-per-barrel-2025-2025-07-03/
2025-07-03 22:43
LIMA, July 2 (Reuters) - A protest by informal miners in Peru is blocking parts of a key copper corridor used by major miners MMG (1208.HK) , opens new tab, Glencore (GLEN.L) , opens new tab and Hudbay (HBM.TO) , opens new tab, leaders of the action and an industry source said on Wednesday. The demonstrators at the blockade in the Chumbivilcas province of the Cusco region are pushing Peru's government to extend a deadline to regularize informal mining operations, said Luis Huaman, one of the protest leaders. Sign up here. The companies operating major copper mines in the area - MMG's Las Bambas, Hudbay's Constancia and Glencore's Antapaccay - did not immediately reply to requests for comment. Reuters could not determine the scope of the potential impact to operations at the sites, which rank among the top 10 producers in the country, led by Las Bambas in the fourth slot. The area is one of several nationwide where members of Peru's artisanal and informal miners organization, CONFEMIN, began staging protests on Friday. "This blockade is in support of the national protest, for unconditional formalization," Huaman said in an interview. "We are not allowing (trucks from) large-scale mining to pass." A mining industry source familiar with Las Bambas told Reuters that after several days of protest, the company is being affected, but did not provide further details. Las Bambas has faced numerous protests in recent years, and has used longer alternate routes to avoid roadblocks. https://www.reuters.com/markets/commodities/protesters-block-peru-copper-route-used-by-large-miners-2025-07-02/
2025-07-03 21:50
Bill cuts solar and wind tax credits, keeps nuclear and geothermal Energy Innovation projects 300 GW capacity fall due to bill Oil and gas industry praises bill for advancing energy dominance agenda WASHINGTON, July 3 (Reuters) - Advocates of clean energy on Thursday decried the final passage of President Donald Trump's tax cut bill by the House of Representatives as a reversal of course on the energy transition, while fossil-fuel interests rejoiced. Trump's fellow Republicans in the House passed the bill 218-214 and it now heads to the president's desk. Trump is expected to sign it on Friday. Sign up here. The legislation sharply cuts access to a 30% tax credit for solar and wind power projects that had been set to run until 2032 and which developers had relied on. Research firm Energy Innovation projected that the bill would result in a fall of 300 gigawatts of U.S. electricity capacity, as demand soars for the first time in two decades, driven by growth in data centers and artificial intelligence. Meanwhile, demand for power from data centers is estimated at upward of 100 GW, according to nonprofit group American Clean Power. The bill's passage "is a dramatic swing in federal policy, disrupting the good-faith investments of American companies that are powering our economy and creating hundreds of thousands of jobs," said Jason Grumet, ACP's president. Jefferies global investment bank said in a research note to clients that the phaseout of the wind and solar subsidies will lead to a "medium-term rush" to claim credits, which could speed the roll-out of projects for a couple of years. After that period, investors will need to reassess such projects without them. It said nuclear and geothermal power, energy sources that the Trump administration favors for dependable electricity generation, received better access to credits in the legislation. Battery storage projects will also retain the full tax credit through 2033 and phase out fully by 2036. The "longer runway" for those baseload resources to use the tax credits won praise from the Data Center Coalition, whose members include Amazon (AMZN.O) , opens new tab and Microsoft (MSFT.O) , opens new tab. Mike Sommers, the president and CEO of the American Petroleum Institute, the top oil and gas lobbying organization, said Congress had advanced Trump's "energy dominance agenda" of maximizing oil and gas output. Production of oil and gas had already hit a record during the administration of former President Joe Biden. "We applaud Congress for unleashing our nation’s oil and natural gas resources, and we look forward to President Trump signing this bill into law," Sommers said in a release. COAL GETS A BREAK Some tax credits favored by the oil industry, like those for hydrogen and carbon capture, were preserved in the bill. The bill also mandates sales of oil and gas drilling rights in federal lands and in waters off Alaska and the Gulf of Mexico, which Trump has renamed the Gulf of America. It allows coal used in steel making a new production tax break of 2.5% of costs that could be worth hundreds of millions of dollars for the industry. It also reduced royalty rates that coal companies have to pay when mining on public lands. Rich Nolan, the president and CEO of the National Mining Association lobbying group, said the bill supports "today's mining industry which stands ready to create additional jobs and revenues for our economy." Daniel Francis, a director with Generate Capital, said the focus for wind and solar industries will shift to states and communities. "Ultimately the impact of the bill will be to move decisions down the federal chain from Congress to states, counties and cities," he said. "Because economies run on power, because voters care about their power bills, and there is no alternative." https://www.reuters.com/sustainability/climate-energy/clean-energy-backers-blast-us-budget-bill-setback-2025-07-03/
2025-07-03 21:30
MEXICO CITY, July 3 (Reuters) - Ample rains across Mexico in recent weeks have helped replenish the country's parched reservoirs, but much of the drought-plagued country's water supply remains in a deficit, according to data from national water agency CONAGUA. June was a wetter-than-normal month in a country reeling from several years of drought. Over 148 millimeters (5.83 inches) of rain fell in Mexico between May 31 and June 29, which was 51.3% above the historical average for the period. Sign up here. Mexico City, where generations of mismanagement have made the city built on a lake prone to both flooding and water shortages, had its wettest June in 21 years, the city's water management secretariat said. Still, national water storage levels at the dams monitored by CONAGUA were 5% below the national historical average at the end of June. "However, in recent weeks, that volume deficit has decreased due to the rainfall," CONAGUA hydrology official Daniel Arriaga said in a presentation. The Cutzamala reservoir system, critical for Mexico City and the surrounding metropolitan region, was 52.1% full as of June 30, an improvement over a year earlier, when reservoirs were 26.7% full. Meanwhile, 97 of the 210 dams monitored by CONAGUA remain below 50% capacity. Those 97 dams serve reservoirs that account for 42% of the system's total volume. Looking ahead, CONAGUA's outlook suggests limited relief for Mexico's nagging water troubles, with July to September rains expected to be only average or below average in many parts of the country. However, CONAGUA forecasts above-average rain in July and August in parts of the northwest, most of which is currently experiencing moderate to extreme drought. https://www.reuters.com/sustainability/boards-policy-regulation/mexicos-water-deficit-persists-even-after-torrential-summer-rains-2025-07-03/
2025-07-03 20:39
S&P 500 up 0.83%; Nasdaq gains 1.02%; Dow up 0.77% US job growth beats expectations in June Tripadvisor gains on report Starboard Value built stake Synopsys, Cadence rise as US lifts China export curbs NEW YORK, July 3 (Reuters) - Wall Street rallied on Thursday to record closing highs, as chipmaker Nvidia rose closer to a $4 trillion valuation and a surprisingly strong U.S. jobs report cheered investors, who shrugged off dimming chances for an interest rate cut this month. The S&P 500 and Nasdaq closed at record highs, notching a third week of gains. The Dow closed up 0.77%, only 0.41% away from its own record. Sign up here. Chipmaker Nvidia (NVDA.O) , opens new tab rose 1.3%, putting its market capitalization at $3.89 trillion. The company is close to overtaking Apple's (AAPL.O) , opens new tab all-time record and becoming the world's most valuable company in history. Trading volume was light in a shorter session on the eve of Friday's U.S. Independence Day holiday. "We are seeing a real bout of irrational exuberance; the stock market is very biased towards optimism," said Kristina Hooper, Chief Market Strategist at Man Group in New York. "But there's some basis for it. I think there is some level of relief because the jobs report was not as weak as it could have been." The rally has been fueled by retail investors, who are largely ignoring the inflationary pressure on the horizon, uncertainty around tariffs and "are focused on the tangible, which is today's jobs report," she said. The S&P 500 (.SPX) , opens new tab gained 51.94 points, or 0.83%, to 6,279.36 and the Nasdaq Composite (.IXIC) , opens new tab gained 207.97 points, or 1.02%, to 20,601.10. The Dow Jones Industrial Average (.DJI) , opens new tab rose 344.11 points, or 0.77%, to 44,828.53. Data showed nonfarm payrolls increased by 147,000 jobs last month, 33% more than the 110,000 jobs forecasted by economists polled by Reuters. Unemployment fell to 4.1% last month, a better result than the 4.3% expected. Traders quickly priced out chances of an interest-rate cut in July, with the odds of a 25-basis-point reduction in September at 68%, according to CME Group's Fedwatch tool, down from 74% a week ago. After markets closed, Republicans in the U.S. House of Representatives approved President Donald Trump's massive tax-cut and spending bill, an expected outcome. The legislation will add $3.4 trillion to the nation's $36.2 trillion debt, according to the nonpartisan Congressional Budget Office, and will also push millions of Americans off health insurance. Large tax cuts and increased government spending can boost demand in the economy. This can add inflationary pressure, especially when the economy shows signs of strength, such as the latest jobs report. "Some data points, like the jobs report, are positive and charming. But if we just take a step back, the picture is not that great," said Alex Morris, CEO of F/m Investments, which manages $18 billion in Washington, D.C. For the week, the S&P 500 gained 1.72%, the Nasdaq rose 1.62%, and the Dow climbed 2.3%. The Russell 2000 Small Cap index rose 3.41%. "It's kind of perplexing," Morris said. "This feels like that last bull rush before all of the data really comes together." Tripadvisor (TRIP.O) , opens new tab climbed 16.7% after the Wall Street Journal reported activist investor Starboard Value had built a stake of more than 9% in the online travel company. Datadog (DDOG.O) , opens new tab jumped 14.9% after the cloud security firm was set to replace Juniper Networks on the S&P 500. Markets closed at 1 p.m. ET. Trading volume on U.S. exchanges was 10.85 billion shares, much lighter than the 17.82 billion average for the full session over the last 20 trading days. https://www.reuters.com/sustainability/sustainable-finance-reporting/us-stock-futures-steady-investors-await-payrolls-data-2025-07-03/
