2025-03-27 13:16

SAO PAULO, March 27 (Reuters) - Brazil's 12-month inflation rate accelerated slightly less than expected in early March but still hit its highest level in two years, official data showed on Thursday, as the Brazilian central bank continues to tighten monetary policy. Annual inflation in Latin America's largest economy was 5.26% in the period, statistics agency IBGE said, speeding up from 4.96% in the previous month and remaining well above the upper end of the central bank's 1.5%-4.5% target range. Sign up here. The reading was the highest for the IPCA-15 inflation index since March 2023, although slightly below the 5.30% forecast by economists in a Reuters poll. Brazil's central bank last week delivered a third consecutive 100-basis-point hike to its benchmark interest rate, taking it to 14.25%, and signaled a smaller increase at its next policy meeting. The central bank has pointed to a challenging path to bring inflation back to its 3% goal despite the aggressive rate hikes. Earlier on Thursday it raised long-term inflation forecasts despite anticipating weaker economic activity this year. Inflation would only approach the official goal in the third quarter of 2027, according to the central bank's estimates. "With the headline rate likely to trend upwards to 6% y/y over the coming months, we expect an additional 75 bp of tightening over the next couple of meetings," said Jason Tuvey, deputy chief emerging markets economist at Capital Economics. In the month to mid-March, consumer prices rose 0.64%, down from the 1.23% increase seen a month earlier. Economists expected a 0.70% rise. All nine groups surveyed by IBGE posted price increases in the period, with the food and beverage category standing out as costs in the segment rose 1.09%. Elevated food prices have been hurting President Luiz Inacio Lula da Silva's popularity and led his government to recently slash food import taxes. The leftist leader has vowed to bring inflation down. https://www.reuters.com/world/americas/brazils-annual-inflation-hits-two-year-high-rate-hikes-continue-2025-03-27/

2025-03-27 12:11

SINGAPORE, March 27 (Reuters) - CNOOC Ltd (600938.SS) , opens new tab on Thursday reported a 11.4% growth in 2024 net profit on record oil and gas output despite weaker oil prices. Sign up here. The offshore oil and gas specialist posted a net profit of 137.9 billion yuan ($18.99 billion) in a filing to the Hong Kong Stock Exchange on Thursday. This is CNOOC's second-highest profit on record. Domestic rival Sinopec Corp's on Sunday reported net income that fell 16.8% to 50.3 billion yuan. CNOOC's oil and gas output rose 7.2% to a record 726.8 million barrels of oil equivalent (boe), meeting the high end of its target. Historically one of the industry's lower-cost explorers and producers, the company's all-in production cost held steadily low at $28.52 per boe, compared to $28.83 in 2023. Capital expenditure totalled 130.2 billion yuan last year, up versus about 128 billion in 2023. Proven reserves totalled 7.27 billion boe as of the end of 2024, also a record high, and the reserve replacement ratio stood at 167%. The reserve life remained at 10 years. "Reserves are the cornerstone of our development. We adhered to the philosophy of value-driven exploration and targeted at large and medium-sized oil and gas fields," the company said. CNOOC remains a top contributor to China's domestic oil production growth as state-owned oil companies tackle geologically more challenging and more costly resources such as shale oil to counter a steep decline at mature basins. The company maintained a focus on developing natural gas, including major projects such as the phase-2 of deepsea Shenhai-1 in the South China Sea. It made a total of 10 oil and gas discoveries such as deepwater Lingshui 36-1 gas field in the South China Sea and deep-reservoir coal bed methane project - Shenfu - in northern China. Net production overseas expanded 10.8% thanks to projects, including in Guyana and Canada, outpacing output growth of 5.6% from offshore China. Globally the company was awarded in 2024 contracts for 10 blocks in Mozambique, Brazil and Iraq, and was operator for seven of them. CNOOC continues to "dynamically review" and "optimise" assets in the face of growing geopolitical uncertainties, management told an earnings call following the results. When asked if CNOOC would consider divesting its onshore shale oil asset in the U.S. following the sale of Gulf of Mexico assets, CNOOC said this has not come on to the management's review agenda. CNOOC also declared a final dividend of HK$0.66 per share for 2024. ($1 = 7.2635 Chinese yuan renminbi) https://www.reuters.com/business/energy/china-cnoocs-2024-net-profit-rises-11-record-output-2025-03-27/

2025-03-27 12:11

BRASILIA, March 27 (Reuters) - Brazil's central bank raised its inflation projections on Thursday for the long-term despite anticipating weaker economic activity this year, and said that this scenario makes reaching its 3% target challenging. After forecasting inflation at 5.1% for 2025 last week when it lifted interest rates by 100 basis points and signaled a smaller hike at its next policy meeting, the bank now projected inflation at 3.7% in 2026 and 3.1% in the third quarter of 2027, the final period covered by its latest estimates. Sign up here. The data, released in the bank's quarterly monetary policy report, effectively show inflation remaining above target throughout the entire forecast horizon, only nearing the 3% goal more than two years ahead. Compared with the previous report in December, inflation expectations rose by 0.6 percentage points for this year and 0.1 percentage points for 2026. The forecast for the third quarter of 2026, considered the most influenced by current monetary policy decisions, also increased by 0.1 percentage points to 3.9%. "Inflation projections remained above target, making convergence to the goal challenging," policymakers said. "The effects of rising inflation expectations, inertia from recent inflation surprises, and upward revisions to short-term projections pushed estimates higher, while the increase in real interest rates, exchange rate appreciation, and lower oil prices contributed to downward pressures," they added. The deterioration in inflation forecasts came even as the central bank revised its economic growth outlook lower, now expecting Latin America's largest economy to expand by 1.9% this year, down from 2.1% in December. It attributed the revision to "a more contractionary monetary policy, weaker fiscal impulse, reduced slack in production factors, and moderating global growth." https://www.reuters.com/world/americas/brazil-central-bank-raises-long-term-inflation-forecasts-sees-challenging-path-2025-03-27/

2025-03-27 12:07

VTX is one of few private operators of scale left in the Permian Vitol working with Jefferies to find potential buyers Deliberations at an early stage, deal is not guaranteed -sources VTX produces 46,000 boepd across two Texas counties NEW YORK, March 27 (Reuters) - Global commodities trader Vitol is exploring a sale of its VTX Energy Partners business, in a deal that could value the U.S. shale oil and gas producer at as much as $3 billion, including debt, people familiar with the matter said. The move aims to capitalize on the fact that the VTX oil and gas business is one of the few remaining privately-owned operators of scale in the Permian basin after the last two years' run of dealmaking in the top U.S. oilfield resulted in many unlisted energy producers being scooped up by listed peers seeking to boost their scale. Sign up here. This scarcity value may help Vitol secure a bumper payout on its bet on VTX, having pledged $1 billion in 2022 to establish the company and fund its management team, which had previously built and sold a number of privately-owned oil and gas producers, according to the company's website. Vitol is working with investment bankers at Jefferies (JEF.N) , opens new tab to solicit potential buyer interest in VTX's assets, which lie in the Permian Basin's southern Delaware region, the sources said, requesting anonymity as the discussions are confidential. The deliberations are at an early stage, the sources said, cautioning that a deal is not guaranteed and Vitol could ultimately choose to keep the business. Vitol and Jefferies did not immediately respond to requests for comment. VTX produces around 46,000 barrels of oil equivalent per day from about 46,000 net acres (186 square kilometers) across two Texas counties, according to its website. The company also owns a water treatment business, which is part of the sale effort, per two of the sources. VTX is Vitol's second U.S. shale venture, having launched Vencer Energy in July 2020 to scoop up assets at depressed valuations at the height of the COVID-19 pandemic, when global commodity prices plunged due to a steep fall in demand. In 2023, Vitol sold Vencer to Civitas Resources (CIVI.N) , opens new tab in a deal worth $2.1 billion. Last year, VTX sold its surface acres to oil and gas land management company LandBridge (LB.N) , opens new tab for $245 million. Among recent deals involving private Permian producers selling to publicly-listed peers were Double Eagle's $4.1 billion agreed purchase by Diamondback Energy (FANG.O) , opens new tab and Coterra Energy's (CTRA.N) , opens new tab acquisitions of Franklin Mountain Energy and Avant Natural Resources for a combined $3.95 billion. https://www.reuters.com/business/energy/energy-trader-vitol-eyes-3-billion-sale-us-shale-producer-sources-say-2025-03-27/

2025-03-27 12:06

WCS discount narrows to lowest since late 2020 Traders discount chance of new U.S. tariffs on Canada Canadian crude benefits from U.S. actions against Venezuela LONDON, March 27 - Canadian oil producers selling crude to U.S. refiners are enjoying a significant windfall, and they have one man to thank: President Donald Trump. Following weeks of trade tensions and verbal spats between the North American neighbours, it might seem surprising that Trump's policy whirlwind is offering Canada a boost. Sign up here. But that is the thing about global trade networks. When you make one change, it can have a cascading effect with many unintended consequences – and beneficiaries. Canada, the world's fourth-largest crude producer, supplied U.S. refiners with around 4 million barrels per day in 2024, roughly half of total crude imports for the world's biggest oil consumer. Canada sends around 90% of its oil exports to the United States, which is mostly shipped via pipelines from the western province of Alberta to land-locked refiners in the U.S. Midwest. The future of this interdependence was thrown into turmoil at the end of last year, when the incoming U.S. president vowed to impose tariffs on America's northern neighbour, a promise he briefly made good on last month, before rowing back most of the tariffs within a few days. The main Canadian crude grades typically trade at a discount to benchmark U.S. crude due to transportation costs and its grade, and the tariff threat initially caused that gap to widen. But in recent weeks, the discount for Western Canada Select (WCS) delivered in Hardisty, Alberta has steadily shrunk, hitting $9.75 a barrel this week, the smallest since late November 2020, according to LSEG data. This WCS strength partly reflects traders' confidence that Canadian oil exports will continue to be exempt from U.S. tariffs, according to Rory Johnston, founder of Toronto-based consultancy Commodity Context. While Trump plans to announce new tariffs on unspecified countries on April 2, few expect this to include Canadian crude. VENEZUELA But the reduction in the WCS discount is also linked to Trump's recent actions against Venezuela. The administration revoked a production licence for Chevron, which imported 210,000 bpd of heavy-grade Venezuelan oil into the United States last year, and slapped a tariff on countries buying oil from Caracas. As it happens, Canadian crude is a good substitute for the Venezuelan grade, meaning it is now in high demand from U.S. Gulf Coast refineries that require heavy crude. Canadian producers have also benefited from completion last year of the Trans Mountain pipeline expansion, which raised its capacity to 890,000 bpd. The pipeline offers producers the only export route to international markets bypassing the United States. Crude exports from Vancouver are set to rise to a record of 643,000 bpd in March, of which 45% are set to go to the United States, according to Kpler data. Canadian crude producers may not enjoy this windfall for long as OPEC+ producers are expected to bring more oil into the market in the coming months, including heavy grade crude. But what will also likely be coming in the next few months is more energy market volatility driven by the U.S. ever-evolving trade policy. And given Canadian oil producers' geographic location and position in the market, they may continue to benefit from this turmoil, even if that is not what the "America First" agenda has in mind. The opinions expressed here are those of the author, a columnist for Reuters Want to receive my column in your inbox every Thursday, along with additional energy insights and trending stories? Sign up for my Power Up newsletter here. https://www.reuters.com/markets/commodities/canadian-crude-exporters-are-unintended-recipients-trump-bump-bousso-2025-03-27/

2025-03-27 12:00

March 27 (Reuters) - Liquefied natural gas infrastructure provider New Fortress Energy (NFE.O) , opens new tab said on Thursday it would sell its assets and operations in Jamaica to Excelerate Energy (EE.N) , opens new tab for about $1.06 billion. Shares of New Fortress rose over 4% to $11.53 in premarket trading. Sign up here. Last year, New Fortress began exploring options that included bringing in strategic partners or selling assets, after it was forced to defer shareholder dividend payments while it held talks with bondholders to address near-term debt maturities. The Excelerate deal "is a meaningful step as we continue to streamline our operations," said New Fortress CEO Wes Edens. The company plans to use the sale proceeds to reduce its debt pile, which stood at $8.4 billion at the end of 2024. The assets being sold include the Montego Bay onshore terminal, the Old Harbour floating terminal, and the Clarendon combined heat and power plant that supplies 65% of Jamaica's electricity. The deal, expected to close in the second quarter, would also boost Excelerate's existing global footprint, with its LNG infrastructure currently deployed in several countries including Bangladesh, Brazil, Finland and Pakistan. Separately, Excelerate said it expects the acquisition to immediately add to its earnings per share, with assets that complement its "existing operational expertise and long-term LNG supply agreements." Both the companies provide floating LNG import terminals that allow countries to import natural gas without having to build large-scale facilities, which can cost tens of billions of dollars and take years to construct. The sale was reported by Reuters, citing sources, earlier in the day. https://www.reuters.com/markets/deals/new-fortress-energy-sell-jamaica-assets-106-billion-excelerate-energy-2025-03-27/