2025-04-04 06:59

Lund oversaw BP's 2020 plan to slash oil, gas output Company veered back towards oil and gas this year Elliott, shareholders had discussed potential leadership changes April 4 (Reuters) - BP (BP.L) , opens new tab Chair Helge Lund intends to step down "likely during 2026" and the process to pick his successor has started, the energy group said on Friday amid a campaign by activist hedge fund Elliott for more change at the company. Lund had backed BP's 2020 strategy under former CEO Bernard Looney to move away from oil and gas, including an ambition to cut its hydrocarbon output by 40% this decade. BP's shares have been underperforming rivals such as Shell (SHEL.L) , opens new tab and Exxon (XOM.N) , opens new tab. BP's market capitalisation of around $84 billion is currently less than half of Shell's. Sign up here. Following gradual steps away from that strategy - and Looney's departure in 2023 after it emerged he had not disclosed relationships with colleagues - new Chief Murray Auchincloss in February announced a renewed focus on oil and gas. Elliott Management, which has built a near 5% stake in BP according to sources, wants even more change, including a more ambitious asset disposal programme compared with the group's $20 billion divestment target through 2027. BP's shares were down 1.7% in early trading compared with a 2% fall for a wider index of energy companies (.SXEP) , opens new tab. "The decision to step down should be well received and reinforce BP's intention to undergo a structural strategic change. It also likely shows the first real impact of Elliott's involvement," said Giacomo Romeo, equity analyst with Jefferies. Lund stands for re-election at BP's April 17 annual shareholder meeting. Elliott has met with other shareholders to discuss issues including potential leadership changes, sources have told Reuters. Elliott Management declined comment on Friday. Some climate-focused investors have called for Lund's exit for not allowing shareholders a vote on BP's renewed focus on oil and gas. "Now is the right time to start the process to find my successor and enable an orderly and seamless handover," Lund said in a statement. Lund received fees and benefits for his role at BP of 882,000 pounds ($1.15 million) for last year and holds stock that was worth 2.8 million pounds as of February, according to BP's annual report. The successful candidate will join the board and work with Lund ahead of taking on the role, at which point Lund will step down from the board, most likely in 2026, BP said. Norwegian national, Lund, 62, was named chair of the BP board in January 2019. Before that, he was the CEO of BG Group when Shell bought it, following a 10-year stint as CEO of Norway's Equinor (EQNR.OL) , opens new tab, formerly Statoil. He has also been the chair of Danish drugmaker Novo Nordisk (NOVOb.CO) , opens new tab since 2018. https://www.reuters.com/business/energy/bp-chair-step-down-2025-04-04/

2025-04-04 06:53

TOKYO, April 4 (Reuters) - Japan's ruling coalition and the opposition Democratic Party for the People (DPP) agreed to curb gasoline prices to help cushion consumers against wider economic pain stemming from U.S. tariffs, a DPP lawmaker said on Friday. The secretary-generals of Prime Minister Shigeru Ishiba's Liberal Democratic Party (LDP), junior coalition partner Komeito, and DPP agreed to launch the measures by June, DPP's Kazuya Shimba told reporters after a meeting with his counterparts. Sign up here. Shimba did not spell out what measures the government would take. LDP's secretary-general Hiroshi Moriyama separately said that the steps would be implemented through March next year and could be funded without compiling a supplementary budget, according to Japanese media. Japanese Prime Minister Shigeru Ishiba has promised to help domestic industry deal with the fallout from President Donald Trump's tariffs, which include a 25% levy on auto imports and a reciprocal 24% tariff on other Japanese goods. "This is a situation that could be called a national crisis," Ishiba told parliament on Friday. "I believe that it is necessary to consider and respond to it in a non-partisan manner, including not only the government and ruling parties, but also the opposition parties." https://www.reuters.com/world/asia-pacific/japan-ruling-bloc-agrees-curb-gasoline-prices-june-2025-04-04/

2025-04-04 06:31

Swedish CPIF inflation -0.5% month/month, +2.3% year/year Data well below analysts' expectations Inflation has been running above forecast this year Supports Riksbank's cautious stance on policy STOCKHOLM, April 4 (Reuters) - Swedish headline consumer prices fell 0.5% in March from the previous month and rose 2.3% from the same month a year earlier, flash figures from the statistics office (SCB) showed on Friday, bringing inflation back near the Riksbank's target. The outcome eases pressure on the Riksbank to adopt a more hawkish stance, and the crown weakened against the euro shortly after the data release. Analysts had on average expected inflation, measured using the consumer price index with a fixed interest rate (CPIF), to edge 0.2% lower on the month and rise 2.6% year-on-year. Sign up here. "Today's data puts inflation close to the Riksbank’s just updated forecast and lends temporary support to the Board’s cautious stance," Swedbank said in a research note. Sweden's central bank held its key policy rate at 2.25% at its latest meeting and forecast policy would remain unchanged for the foreseeable future though uncertainty, not least linked to U.S. policy moves and global trade, is unusually great. Inflation had been running higher than expected this year and, while the Riksbank has said it expects consumer price increases to remain above the 2% target level through this year, board members have said the uptick looks to be temporary. How U.S. President Donald Trump's sweeping new tariffs on global trading partners, and the response they are likely to generate, will impact inflation remains uncertain, and Governor Erik Thedeen has said the Riksbank is ready to act if necessary. Some economists have predicted that a tighter monetary policy may be called for in the year ahead. "Today's inflation print is a welcome relief for Governor Thedeen & Co, which buys them more time in these uncharted international risk waters. We stick to our long-held baseline for unchanged policy rate of 2.25 percent," Handelsbanken said in a note. The flash figures are a preliminary reading with a fuller set of data due on April 11. https://www.reuters.com/markets/europe/swedish-march-flash-cpif-inflation-falls-back-below-forecast-2025-04-04/

2025-04-04 06:30

NEW DELHI, April 4 (Reuters) - India is looking to strengthen energy and defence ties with Sri Lanka and promote investments during Prime Minister Narendra Modi's two-day state visit to the island nation, where New Delhi competes with China for greater influence. Modi, set to arrive on Friday evening, will be the first global leader hosted by Sri Lankan President Anura Kumara Dissanayake after he took office in September. Sign up here. Sri Lanka is keen to attract foreign investment to stabilise its economy after a financial crisis in 2022, during which India provided $4 billion in financial assistance. India is also one of Sri Lanka's key bilateral lenders, which agreed to restructure about $1.36 billion in loans after the island nation defaulted on its debt in May 2022. "Prime Minister Modi’s visit aims to strengthen the longstanding ties between Sri Lanka and India," the Sri Lankan president's office said in a statement. The visit will see pacts signed on key sectors such as energy, digitalisation, security, healthcare, as well as agreements related to India’s debt restructuring assistance for Sri Lanka, it added. At their first meeting in New Delhi in December, the leaders discussed investments in Sri Lanka and plans for India to supply liquefied natural gas to Sri Lanka and help link power grids. The talks also featured development of a regional energy and industrial hub in eastern Trincomalee. In January, Dissanayake said the two were in talks on building an oil refinery there as a joint venture focusing on exports, domestic media said. When completed, the project would stoke competition between India and China, whose state energy firm Sinopec (600028.SS) , opens new tab has signed a deal to build a $3.2-billion oil refinery in Sri Lanka's southern port city of Hambantota. New Delhi-run Indian Oil Corp is already the second biggest fuel supplier after state-owned Ceylon Petroleum Corp. India's foreign ministry did not comment on whether the proposed Trincomalee refinery will figure in this week's talks. It told reporters in a briefing ahead of the visit that Modi would join in a ceremony to break ground for a 120-megawatt solar power project of the Ceylon Electricity Board and India's National Thermal Power Corporation (NTPC.NS) , opens new tab. The ministry said it hoped to wrap up an agreement on defence cooperation with Sri Lanka. December's discussions had envisioned provision of arms to Sri Lanka to boost its defence capability. https://www.reuters.com/world/india/indias-modi-aims-stronger-energy-defence-ties-with-sri-lanka-visit-2025-04-04/

2025-04-04 06:10

LITTLETON, Colorado, April 4 (Reuters) - Coal traders could become rare winners among businesses reeling from U.S. President Donald Trump's drastic new tariff regime that adds at least 10% to the cost of nearly all goods imported into the United States. That is because energy providers across Asia - which has been hit with some of the highest new U.S. tariffs - will be under pressure to cut power costs for their consumers, which include many of the world's largest goods producers. Sign up here. By helping to lower operating costs for factories, Asia's utilities may allow manufacturers to sustain some sales to the world's largest importer, even with the new tariffs in place. But in order to produce the cheapest power possible, Asian power producers will need to step up the use of coal and likely cut back on the use of pricier fuels in their generation mix. That would be good news for coal traders and miners in the region, but likely bad news for regional emissions levels, which will only climb further as more coal gets burned for power. HARDEST HIT Most affected by the new U.S. tariff levels are the manufacturers of Asia, where China and Vietnam have been hit with new tariffs of 34% and 46%, respectively. Between them, China and Vietnam are home to a major share of the global production of electronics, clothing, furniture and sporting goods that are regularly purchased by U.S. consumers. Other Asian nations with large export-oriented manufacturing bases that have also been hit with steep new tariffs include Indonesia (32%), Cambodia (49%), Malaysia (24%) and the Philippines (17%). Given the relatively soft state of consumer demand in the U.S. so far in 2025, companies will not be able to pass on much of the cost increase triggered by the tariffs to consumers without incurring a sharp drop in sales. So, instead many companies may try to absorb at least some of the tariff impact themselves, and look for ways to reduce costs in order to maintain a profitable operating margin. This widespread search for cost reductions will likely be aided by local governments, who will be eager to preserve jobs in the manufacturing sector despite the new hostile trade arena. COAL FIX Coal traders will happily volunteer to help in those cost-cutting endeavours by supplying power producers with extra volumes of thermal coal for electricity production. Coal is by far the cheapest and largest source of thermal power production in Asia, and accounted for around 56% of regional electricity supplies in 2024, according to Ember. Pollution reduction efforts have seen natural gas displace some coal output in certain countries, and accounted for around 10% of regional electricity supplies last year. Going forward, however, coal will likely undergo a resurgence as utilities prioritise cost over all else in an effort to help manufacturers weather the tariff storm. For coal traders, this will likely mean supplying higher volumes more regularly to major coal-burning hubs across the region. And the region's largest manufacturers are already among the fastest-growing coal consumers in the world, according to data from global trade intelligence firm Kpler. Indeed, in 2024 nearly all major manufacturing hubs in Asia recorded steep increases in coal imports from the year before, including China (10%), Vietnam (28%), Cambodia (26%), the Philippines (5%) and Malaysia (3%). In addition, the import totals into those countries were all record highs in 2024, even as shipments to countries outside of Asia continue to decline. This combination of growing demand among a narrowing group of consuming nations is good news for coal traders, who can optimize shipments to a relatively small number of destinations. In 2025, thanks to the cost-cutting drive triggered by Trump's new tariffs, the coal volumes shipped to Asia's main markets will likely only climb higher still. That means that even as Asia's production lines struggle to maintain margins with the new tariffs in place, coal traders can expect growth in both volumes and margins as the region's power system attempts to drive power costs as low as possible. The opinions expressed here are those of the author, a market analyst for Reuters. https://www.reuters.com/business/energy/coal-traders-could-be-rare-winners-trumps-tariff-turmoil-maguire-2025-04-04/

2025-04-04 06:06

Brent closes at lowest since August 2021 Oil posts biggest weekly decline since 2023 China announces retaliatory tariffs on US OPEC+ unexpectedly speeds up oil output hikes Russian court rules not to suspend Caspian pipeline export terminal HOUSTON, April 4 (Reuters) - Oil prices plunged 7% on Friday to settle at their lowest in over three years as China ramped up tariffs on U.S. goods, escalating a trade war that has led investors to price in a higher probability of recession. China, the world's top oil importer, announced it will impose additional tariffs of 34% on all U.S. goods from April 10. Nations around the world have readied retaliation after Trump raised tariff to their highest in more than a century. Sign up here. Commodities including natural gas, soybeans and gold also dived, while global stock markets tumbled. Investment bank JPMorgan said it now sees a 60% chance of a global economic recession by year-end, up from 40% previously. Global benchmark Brent futures settled $4.56, or 6.5%, lower at $65.58 a barrel, while U.S. West Texas Intermediate crude futures lost $4.96, or 7.4%, to end at $61.99. At the session low, Brent fell to $64.03 and WTI hit $60.45, their lowest in four years. For the week, Brent was down 10.9%, its biggest weekly loss in percentage terms in a year and a half, while WTI posted its biggest decline in two years with a drop of 10.6%. "To me, this is probably close to fair value in crude until we get some sort of indication of how much demand has actually been reduced by," said United ICAP Energy Specialist Scott Shelton. "My opinion is we probably will end up in the mid to high $50s in the near term for WTI," Shelton said, warning that demand would suffer under the current market circumstances. Trump's new tariffs are "larger than expected" and the economic fallout, including higher inflation and slower growth, likely will be as well, Federal Reserve Chair Jerome Powell said in remarks that pointed to the potentially difficult set of decisions ahead for the U.S. central bank. OPEC+ INCREASES Further pressuring oil prices, the Organization of the Petroleum Exporting Countries and allies (OPEC+) decided to advance plans for output increases. The group now aims to return 411,000 barrels per day (bpd) to the market in May, up from the previously planned 135,000 bpd. A ruling by a Russian court that the Caspian Pipeline Consortium's (CPC) Black Sea export terminal facilities should not be suspended also pressured prices lower. That decision could avert a potential fall in Kazakhstan's oil production and supplies. Imports of oil, gas and refined products were given exemptions from Trump's sweeping new tariffs, but the policies could stoke inflation, slow economic growth and intensify trade disputes, weighing on oil prices. Goldman Sachs analysts responded with sharp cuts to their December 2025 targets for Brent and WTI by $5 each to $66 and $62 respectively. "The risks to our reduced oil price forecast are to the downside, especially for 2026, given growing risks of recession and to a lesser extent of higher OPEC+ supply," the bank's head of oil research, Daan Struyven, said in a note. HSBC trimmed its 2025 global oil demand growth forecast from 1 million bpd to 0.9 million bpd, citing tariffs and the OPEC+ decision. Money managers raised their net long U.S. crude futures and options positions in the week to April 1, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. https://www.reuters.com/business/energy/oil-set-worst-week-months-over-trumps-new-tariffs-2025-04-04/