2025-11-19 13:28

Nov 19 (Reuters) - Saudi Arabia's crude oil exports hit a seven-month high in September, data from the Joint Organizations Data Initiative (JODI) showed on Wednesday. Crude exports from the world's largest oil exporter increased to 6.460 million barrels per day (bpd), slightly higher than August's 6.407 million bpd, and their highest level since February. Sign up here. Saudi Arabia's crude output, meanwhile, touched a nearly two-and-a-half-year peak, of 9.966 million bpd in September, its highest since April 2023. Output in August stood at 9.722 million bpd. Saudi Arabia and other OPEC members submit monthly export figures to JODI, which publishes them on its platform. Refinery crude throughput in the kingdom rose to 2.940 million bpd in September, a 1.3% rise from August's 2.902 million bpd, JODI data revealed, while direct crude burning decreased by 122,000 bpd to 485,000 bpd. "OPEC+ Group of Eight decided to unwind their production cut in September, with Saudi Arabia increasing its production by 244,000 bpd, but with crude and refined product exports up by a fraction of it," said UBS analyst Giovanni Staunovo. "As inventory level was nearly unchanged, the difference must have been consumed domestically." OPEC+ has hiked its output targets by roughly 2.9 million barrels per day since April, equivalent to 2.7% of global supply, but agreed to pause increases in the first quarter of next year as the producers' group moderates plans to regain market share due to rising fears of a supply glut. OPEC+ pumped 43.02 million barrels per day in October, OPEC said last week, down 73,000 bpd from September. Expected demand for OPEC+ crude at 43.0 million bpd in 2026 implies that the world market will show a small surplus of 20,000 bpd if the wider group keeps pumping at October's rate, according to a Reuters calculation based on the report. The International Energy Agency (IEA) meanwhile said last week the market faces an even bigger surplus next year of as much as 4.09 million barrels per day. Saudi Arabia is expected to export at least 36 million barrels of crude oil to China in December. https://www.reuters.com/business/energy/saudi-arabia-crude-exports-rise-seven-month-high-september-2025-11-19/

2025-11-19 12:42

SEOUL, Nov 19 (Reuters) - A South Korean passenger ferry carrying 267 passengers and crew got stranded on Wednesday after running aground off the southwestern tip of the Korean peninsula, the coast guard said. Authorities were deploying all possible resources and carrying out a rescue operation, it said in a statement. Sign up here. The coast guard believed there were no casualties so far from the incident and the boat was not taking on water, the Yonhap News Agency reported. The 26,000-tonne ferry was travelling from Jeju Island to Mokpo, according to the coast guard. A coast guard official said the ferry had struck a rocky island near Jindo. The area is near the site of the sinking of the Sewol ferry in 2014 that killed more than 300 people, mostly school children heading for a school trip. https://www.reuters.com/world/asia-pacific/south-korean-ferry-with-260-passengers-hits-rocks-ytn-reports-2025-11-19/

2025-11-19 12:24

GC repo rate above Fed target range, signals scarce liquidity Bank reserves near critical level Fed funds rate rises, influenced by repo rate increases NEW YORK, Nov 19 (Reuters) - The cost of U.S. overnight funding in the repo market has stayed stubbornly high and is expected to remain elevated going into year-end despite recent Federal Reserve easing, adding another layer of stress to already fragile financial markets. A spike in repurchase or repo rates signals liquidity is scarce and raises funding costs across the financial system. Sign up here. The general collateral, or GC repo rate, which is the cost of borrowing short-term cash using Treasuries or other debt securities as collateral, opened at 4.05% on Tuesday, according to repo traders. That's five basis points higher than the upper end of the Fed's target range of 3.75%-4.00%. On October 31, the GC rate spiked to 4.25%, driven by the typical month-end surge in repo rates as banks step back from intermediation to manage their own higher balance sheet costs tied to reporting requirements. A similar surge is expected as the market approaches year-end. Overnight repo rates also have traded consistently above the Interest Rate on Reserve Balances (IORB) currently at 3.90% since mid-October, which suggest bank reserves are dipping into levels that could raise red flags. As of last week, reserves dropped to $2.8 trillion from $3.3 trillion a few months ago—just shy of the $2.7 trillion level Fed Governor Christopher Waller deems "ample" to prevent market disruptions. "We suspect that markets may be more vulnerable to overnight funding rate pressure than they were in 2019," said Joseph Abate, head of rates strategy at SMBC Nikko Securities, referring to September of that year when funding costs soared due to a large drop in bank reserves as corporations tried to meet a tax deadline and make payments for Treasury debt settlements. He cited large hedge funds' Treasury long positions in the cash market in so-called basis and relative value trades, with repo financing also growing sharply this year. In a basis trade, for instance, hedge funds would typically buy cash Treasuries and simultaneously hedge by selling futures to asset managers who will end up holding a long position on them. To finance that long position, hedge funds tap the repo market. Abate said hedge funds' long positions swelled by nearly $400 billion in the first six months of the year to $2.4 trillion. Their use of repo funding also increased by nearly $700 billion this year and is more than twice as large as in 2019, he added. TIGHTER OVERNIGHT LIQUIDITY Tighter overnight liquidity reflects several factors, including a surge in U.S. bill issuance by the Treasury to build its cash balance, and the impact of the record 43-day U.S. government shutdown that ended last week. The shutdown meant that the U.S. Treasury accumulated funds in its account at the Fed called the Treasury General Account (TGA), as government payments of salaries and other expenses were curtailed. At the same time, when new Treasuries are issued, investors such as dealers, banks and money market funds must pay cash to the U.S. Treasury on settlement day. This payment drains reserves from the private sector and moves them to the TGA. As available reserves decline it gets costlier to borrow cash in the repo market, pushing rates higher. "There's no doubt that with the government shutdown and the increase in the TGA and the fact that there are no balances left at the reverse repo facility, we are operating on the edge of what an ample reserve regime is," said Brij Khurana, portfolio manager at Wellington Management in Boston. Scott Skyrm, executive vice president at Curvature Securities, also pointed to the swelling U.S. budget deficit this year, which needs to be financed by new debt. "If we have $1.8 trillion in the budget deficit, that's an extra $100 billion of Treasuries coming into the market every month," said Skyrm. "Somebody has to pay for those and that's cash being used to finance those Treasuries." Still, the clearest sign of stress, analysts said, is the recent rise in the effective fed funds rate (EFFR) -- the interest banks charge each other for overnight loans to meet reserve requirements. Analysts attributed this to the pull higher from repo rates. The EFFR is currently at 3.88%, up from 3.86% touched on October 31 two days after the Fed cut interest rates by 25 basis points. Some market participants also warned repo pressures could trigger the unwinding of leveraged trades in riskier assets such as stocks and bitcoin, both of which have seen sharp selloffs in recent weeks. To be sure, the Fed has the ultimate backstop -- the Standing Repo Facility (SRF) -- which serves as a shock absorber for temporary market liquidity shortfalls, although there have been long-standing questions about its ability to fulfill that role. Fed officials have urged banks to use the Standing Repo Facility (SRF) without concern that borrowing from the central bank signals distress. Last week, New York Fed President John Williams met with major Wall Street banks to discuss SRF usage and gather feedback to ensure the tool remains effective in managing interest rates. https://www.reuters.com/business/finance/what-fed-cut-us-repo-rates-still-high-liquidity-tightens-into-year-end-2025-11-19/

2025-11-19 12:19

Bitcoin falls to seven-month low Investor jitters pressure risk assets Lack of speculative spirit weighing, analyst says Nov 19 (Reuters) - Investors pulled roughly $523 million from BlackRock's flagship iShares Bitcoin Trust (IBIT.O) , opens new tab on Tuesday, according to data from Farside Investors, marking the fund's largest single-day withdrawal since its launch. Bitcoin , a bellwether for crypto markets, fell below $90,000 this week, its lowest level in seven months. Sign up here. IBIT, the largest spot bitcoin ETF, has attracted strong investor demand since its launch in January 2024 and has been central to the crypto ETF boom. The fund outflows highlight the severity of the selloff in bitcoin, which has corrected sharply after hitting a record high in October, and underscore how deep the pullback has been across risk assets. In contrast, gold has remained resilient, calling into question bitcoin's status as a hedge or as a replacement for the yellow metal. Some analysts have said the moves point to investors swapping bitcoin exposure for gold. "The crypto market entered a hangover in August," said Kraken's Global Economist Thomas Perfumo, adding a lot of that demand was driven by borrowed money. "Momentum seemingly peaked during the summer. But the truth is this hangover trend started months ago," he added. Analysts have also pointed to profit-taking by long-term shareholders as well as growing caution among bitcoin treasury firms, which had stepped up their purchases earlier in the year. "Bitcoin treasury companies purchased nearly $50 billion of bitcoin over the past year. Recently, many of these firms have begun trading at a discount to net asset value, which weighs on near-term market expectations for net new bitcoin purchases by these firms," said Brian Vieten, research analyst at Siebert Financial. The shift comes at a time when several heavyweight investors have raised concerns about stretched valuations across asset classes. "An ongoing lack of speculative spirits is weighing on bitcoin," said José Torres, senior economist at Interactive Brokers. IBIT, which has over $73 billion in assets, has fallen 19% quarter-to-date. https://www.reuters.com/markets/wealth/investors-pull-record-523-million-blackrocks-flagship-bitcoin-etf-2025-11-19/

2025-11-19 12:16

KAMPALA, Nov 19 (Reuters) - About three-quarters of a $5 billion pipeline crucial for exporting crude oil from Ugandan fields through neighbouring Tanzania has been built, Uganda's state-run sector regulator said on Wednesday. After nearly two decades of delay, Uganda has now set the second half of next year as the target for starting production from oilfields in its Albertine rift basin in the west of the country. Sign up here. The 1,443-kilometer (897-mile) East African Crude Oil Pipeline (EACOP) must be finished before production at the $15 billion oil project owned by France's Total Energies (TTEF.PA) , opens new tab and China's CNOOC kicks off. EACOP will connect the Ugandan oilfields to Tanzania's Indian Ocean Tanga port and has been described as the world's longest electrically heated crude pipeline. Ernest Rubondo, chief executive of the Uganda Petroleum Authority which overseas the country's hydrocarbons sector, said in a statement that all the pipes for the project had been delivered to various stations along the EACOP route. So far, at least $3.3 billion has been invested in the project, which is 62% owned by TotalEnergies, Rubondo said. Other shareholders include state-owned petroleum firms in Uganda and Tanzania, and CNOOC. Over $4 billion is being invested in Uganda's petroleum sector including on activities in the Kingfisher and Tilenga discoveries between 2025-2027 in "preparation for production", Rubondo said. Drilling and associated development activity at Tilenga and Kingfisher projects ahead of start of crude production is 60% and 74% complete, respectively, Rubondo said. https://www.reuters.com/business/energy/three-quarters-5-billion-east-africa-crude-pipeline-built-uganda-says-2025-11-19/

2025-11-19 12:08

Dutch government suspends intervention at Nexperia Move follows talks with Chinese government Dutch Economy Minister cites goodwill gesture Talks between Netherlands and China to continue Nexperia chip shortages hit auto supply chains, production AMSTERDAM, Nov 19 (Reuters) - The Dutch government said on Wednesday it was suspending its intervention at computer chipmaker Nexperia after what it said were constructive talks with China over a dispute which has led to shortages of chips needed by car manufacturers. Although the move will give some comfort to customers that the clash over Nexperia between China and the Netherlands is easing, supply chain issues have not yet been resolved. Sign up here. Nor has a dispute between Nexperia's European headquarters and its Chinese parent Wingtech (600745.SS) , opens new tab which was sparked by the Dutch state taking control of Nexperia on September 30. DUTCH POSITIVE ABOUT MEASURES TAKEN BY CHINA The Dutch government said intervention was needed to prevent Nexperia's former CEO from moving its operations to China. Beijing responded by halting exports of Nexperia's finished products on October 4, a measure it has since partly relaxed. Dutch Economy Minister Vincent Karremans said in a statement on Wednesday that the decision was a gesture of goodwill, adding that talks will continue. "We are positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world," he said in a statement. Meanwhile, European Union trade chief Maros Sefcovic welcomed the move, saying it would help stabilize supply chains. Nexperia is a major supplier of basic computer chips to the car industry, and shortages have threatened automotive supply chains, leading to production slow downs and halts. BMW (BMWG.DE) , opens new tab, Bosch and Aumovio (AMV0n.DE) , opens new tab all said they welcomed the development but that it is too early to judge what impact it will have, while Mercedes-Benz (MBGn.DE) , opens new tab and Volkswagen (VOWG.DE) , opens new tab declined to comment. Nexperia manufactures most of its wafers in Hamburg, Germany, and then sends them to Dongguan, China to be packaged and sent on to customers. STALEMATE CONTINUES TO THREATEN SUPPLIES After the Dutch state intervention, Nexperia's Chinese arm declared itself no longer subject to control by European management and on Oct. 26, the European side of the company stopped shipping wafers to it, citing non-payment. That stalemate continues to threaten supplies, although the Chinese side is now selling down stockpiles of chips it has previously processed, offering temporary relief to customers. Nexperia said it was preparing a reaction. Separately, a Dutch court in October ordered the removal of ex-Nexperia CEO and Wingtech founder Zhang Xuezheng, citing alleged mismanagement. A spokesperson for Wingtech, which oversees Nexperia's Chinese operations, said it "strongly rejects these accusations" and the Dutch government should end participation in the case, which was brought by the company's European managers. "The ministry should now file a letter with the (court), explicitly withdrawing its support for the proceedings," the spokesperson added. The next step in the legal process will be hearings on a formal investigation into mismanagement, a spokesperson for Amsterdam's Enterprise Court said. No date has been set. https://www.reuters.com/business/retail-consumer/dutch-government-suspends-state-intervention-chipmaker-nexperia-statement-2025-11-19/