2025-02-20 11:44

Feb 20 (Reuters) - Refiner HF Sinclair (DINO.N) , opens new tab on Thursday posted a bigger-than-expected loss for the fourth quarter, becoming the latest energy company to take a hit from weak refining margins and rising global capacity. Bigger rivals Valero Energy (VLO.N) , opens new tab and Marathon Petroleum (MPC.N) , opens new tab, as well as energy heavyweights such as Exxon Mobil (XOM.N) , opens new tab, have seen refining profits normalize from 2022 peaks, when a post-pandemic demand recovery and sanctions over producer Russia's invasion of Ukraine had boosted fuel prices. U.S. refinery margins, measured by the 3-2-1 crack spread , averaged $16.66 in the October-December quarter, down nearly 25% from a year earlier. HF Sinclair's refinery adjusted margin shrank to $6.86 per produced barrel in the fourth quarter, from $13.58 a year earlier, due to weakness in the West and Mid-Continent regions caused by excess global fuel supplies hurting prices. Overall sales of products that the company refines crude into, such as gasoline and diesel, fell 9.4% from the previous quarter to 596,800 barrels per day (bpd). That pulled down revenues by 15% to $6.5 billion in the quarter. However, the company's lubricants and midstream segments performed better than last year. Adjusted profit in the lubricants segment grew thanks to a decrease in feedstock inventory charges, while the midstream segment benefited from higher tariffs charged to transport crude. On an adjusted basis, the Dallas-based company reported a loss of $1.02 per share for the quarter ended December, compared with analysts' estimates for a loss of 90 cents, according to data compiled by LSEG. Sign up here. https://www.reuters.com/business/energy/hf-sinclair-posts-bigger-than-expected-loss-lower-refining-margins-2025-02-20/

2025-02-20 11:37

LONDON, Feb 20 (Reuters) - The pound edged up on Thursday, as traders awaited UK data on consumer spending and business activity after this week's hot inflation print complicated the outlook for Bank of England monetary policy. Sterling was last at $1.261, up 0.2% against the dollar by 1108 GMT. Against the euro it was unchanged at 82.795 pence. Wednesday's UK inflation print showed consumer inflation rose faster than expected in January, which could weaken the case for the BoE to deliver another two rate cuts this year. Traders are currently betting on two more rate cuts in 2025 from the BoE. "Leading indicators suggest inflation will stay high in the UK, and growth may surprise positively. These factors could delay gradual rate cuts but won’t change the overall view of a slow disinflationary process," George Vessey, lead FX and macro strategist at Convera, wrote in a note. The Office for National Statistics said its consumer price index rose at an annual rate of 3% in January, above forecasts for a rise of 2.8%. Services inflation, which the BoE has flagged as an obstacle, rose at a rate of 5%, from 4.4% in December, but was below expectations for rise of 5.2%. The BoE's next meeting is still a month away, set for March 20. Market players will be closely monitoring UK retail sales figures and preliminary business activity surveys data, both due on Friday, for a read on the strength of the economy. They will follow Tuesday's jobs data that showed accelerating wage growth and last week's GDP figures that showed Britain's economy unexpectedly grew by 0.1% in the final three months of last year. "In addition to rate differentials supporting the pound, its sensitivity to global risk appetite will keep traders vigilant amidst geopolitical uncertainties. However, the UK is currently out of Trump’s tariff line, providing sterling an advantage over the euro," said Vessey. Sign up here. https://www.reuters.com/markets/currencies/sterling-edges-up-investors-await-data-2025-02-20/

2025-02-20 11:29

Federal workers were fired 'based on your performance' Twelve of the fired workers received good performance appraisals White House says it is removing workers who are not mission-critical Feb 20 (Reuters) - Federal workers fired for alleged poor performance as part of U.S. President Donald Trump's remaking of the federal government received excellent performance reviews before they were fired, according to interviews and documents seen by Reuters. The discrepancy reflects a potential legal misstep by Elon Musk's cost-cutting Department of Government Efficiency, which has fired thousands of mainly probationary federal workers across the U.S. government in a matter of days. Twelve workers fired from seven government agencies last week told Reuters that they were among the many public workers who received letters that cited their performance as a reason they were being let go. "The Agency finds, based on your performance, that you have not demonstrated that your further employment at the Agency would be in the public interest," according to one of the letters, seen by Reuters. The White House said the firings were conducted in order to make government more efficient, but did not answer questions about why high-performing employees were fired. "President Trump and his administration are delivering on the American people’s mandate to eliminate wasteful spending and make federal agencies more efficient, which includes removing probationary employees who are not mission critical," said Anna Kelly, a White House spokesperson. All twelve of the workers told Reuters they had received high performance reviews in recent weeks or months before their dismissals, and some had received merit-based cash bonuses and awards. Reuters reviewed copies of recent performance evaluations and other commendations provided by the workers, and spoke with their former supervisors. "It never once crossed my mind that I would be exposed to this kind of action," said Patrick Shea, a 23-year-old river ranger in Hells Canyon in Idaho who had served with the U.S. Forest Service for 15 months, including seasonal work during college. Shea was promoted on December 15, 2024 and praised by his supervisor for doing outstanding work, according to a performance review seen by Reuters. Don Quinn, an employment lawyer who represents federal employees, said he saw no legal rationale for citing performance when dismissing probationary employees, who typically enjoy very limited job protections. "What they're trying to do is they're trying to cover themselves by saying it's a performance issue, which, in my mind, opens it up to possible liability for a false firing," he said. On Wednesday night, several labor groups sued the administration for its firing of probationary workers, arguing the action was outside the authority of the Office of Personnel Management, which oversees the federal civilian workforce. TOP PERFORMERS FIRED Five of the fired workers interviewed by Reuters were working in the Forest Service, a Department of Agriculture agency that maintains national forests and combats wildfires. Tanya Torst was a partnership coordinator at the USFS and said she was nearly done with a two-year probationary period when she was fired last weekend. The National Federation of Federal Employees, which represents Forest Service workers, has said the Trump administration has fired 3,400 USFS employees, though a spokesperson for the USDA told Reuters the figure was "about 2,000." Torst, who is a member of NFFE local 1875, had received positive performance reviews, five cash awards, and two raises, including one in December 2024, for her work raising money from external partners to manage six forests in California, according to documents seen by Reuters. "I feel like I'm betrayed by my fellow citizens when all I do is support the forest and serve people," Torst said. Reuters also spoke to fired workers with high performance reviews from the USDA's Natural Resources Conservation Service, Economic Research Service and Agricultural Research Service. The USDA did not respond to a request for comment. Reuters also spoke to two workers fired from the Food and Drug Administration, including Matt, a neuroscientist researching tobacco product safety who only provided his first name for fear of retaliation. Matt had received the highest possible rating - "Achieved Outstanding Results" - in a review seen by Reuters for the period ending December 31, with his supervisor commenting that Matt "had a spectacular year in 2024" and "excelled in every project he took on." The FDA did not respond to a request for comment. Reuters also spoke to workers fired from the Environmental Protection Agency, which did not respond to a comment request, and General Services Administration, which declined to comment on personnel matters. Many of the workers said they planned to appeal their firings to the Merit Systems Protection Board, an independent three-member panel. Trump was blocked by a federal judge on Tuesday from firing its Democratic chair. A federal judge on Tuesday declined to block the worker firings in a suit brought by states. Sign up here. https://www.reuters.com/world/us/federal-workers-were-fired-for-performance-their-records-say-otherwise-2025-02-20/

2025-02-20 11:27

PARIS, Feb 20 (Reuters) - Potential Chinese export restrictions on lithium extraction technology could create new opportunities for Eramet following its launch of lithium production in Argentina, the head of the French mining group said on Thursday. China has proposed restricting the export of technology to process lithium, widely used in batteries, in response to U.S. tariffs, and Reuters reported this week that one Chinese company has stopped exporting sorbents, a piece of equipment used in lithium processing. "So it will open potentially opportunities for Eramet," Chair and CEO Christel Bories said of Chinese export curbs during a presentation of Eramet's annual results. "We are considering potentially using our technologies and our patents on the sorbents to enter into new projects, providing the technology but also participating in equity." Eramet's Centenario project in Argentina started production in December and the group aims to reach a nominal annual capacity rate of 24,000 metric tons of lithium carbonate equivalent at the end of this year. Eramet is studying an expansion of the project but does not expect to commit further investments before next year, Bories added. Eramet is also in discussions in Chile to develop lithium deposits after securing a concession. The group remains upbeat on longer-term demand for lithium despite a drop in prices and expects the market to rebalance from next year following a period of oversupply, Bories said. Sign up here. https://www.reuters.com/markets/commodities/china-lithium-tech-export-curbs-may-benefit-eramet-ceo-says-2025-02-20/

2025-02-20 11:23

Palm oil has reached unusual premium over soyoil Buyers and sellers mutually agreeing to cancel contracts India is world's biggest palm oil importer MUMBAI, Feb 21 (Reuters) - Indian refiners have cancelled orders for 100,000 metric tons of crude palm oil (CPO) scheduled for delivery between March and June, because of a surge in benchmark Malaysian prices and negative refining margins in India, four trade sources said. Refiners in the world's largest importer of palm oil cancelled the quantity over the last four days, including 30,000 tons on Friday, after Malaysian palm oil futures rose more than 11% over four weeks. The Indian cancellations could limit the rally in Malaysian palm oil prices, although they could also support soyoil prices as some refiners shift to soyoil. The trade sources spoke on condition of anonymity because they were not authorised to speak to the press. One Indian buyer, who operates a refinery on the east coast and cancelled palm oil shipments for March delivery, said the combination of negative refining margins in India and high overseas prices meant it made sense to lock in profits by selling palm oil back to suppliers, rather than importing it. Price-sensitive Asian buyers traditionally rely on palm oil due to its low cost and quick shipping times. However, the recent price rise has pushed palm oil to a premium over soyoil on the global market. An influx of soyoil into India between February and March, priced slightly lower than palm oil has prompted some refiners to cancel their palm oil purchases to switch to soyoil, Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage, said. A Mumbai-based dealer with a global trade house said buyers and sellers were mutually agreeing to cancel contracts, with buyers accepting a slightly lower price than the current market rate for cancellations. Crude palm oil (CPO) is being offered at about $1,210 a ton, including cost, insurance and freight (CIF), in India for March delivery, compared to around $1,120 to $1,130 a month ago. India's palm oil imports, which are primarily from Indonesia and Malaysia, in January fell 45% from a month ago to 275,241 metric tons, the lowest in nearly 14 years, as refiners turned to cheaper soyoil. The soyoil is imported mostly from Argentina and Brazil. Market speculation India will raise its import duty on palm oil to support local oilseed farmers has also prompted some refiners to cancel contracts and book profits, said a New Delhi-based dealer with a global trade house. Sign up here. https://www.reuters.com/markets/commodities/indian-refiners-cancel-palm-oil-orders-due-price-surge-2025-02-20/

2025-02-20 11:18

Groups seek increased biofuel volumes for 2026 and beyond EPA urged to release multi-year RFS standards for market certainty NEW YORK, Feb 20 (Reuters) - U.S. oil and biofuel groups banded together this week to urge the new Trump administration to increase volumes of renewable fuels that must be blended into the nation's fuel mix in 2026 and beyond, according to a letter seen by Reuters. The move is unusual because the oil and biofuels industries are frequently at odds with each other on issues related to the Renewable Fuel Standard (RFS) program, the around two-decade-old law that requires refiners to blend billions of gallons of biofuels into fuels like gasoline, or buy credits from those that do. The oil industry has historically seen biofuels, like corn-based ethanol, as unwanted competition to petroleum-based fuels. Both industries' interests, however, align in opposition to electric vehicles, which pose a threat to any form of liquid fuel. President Donald Trump last month revoked his predecessor Joe Biden's executive order to make half of all new vehicles sold in 2030 electric in an effort to slash greenhouse gas emissions. "While our organizations have not always agreed on every detail, we have joined together in recognition of the critical role liquid fuels serve in the American economy, to advance liquid fuels, and ensure consumers have a choice of how they fuel their vehicles," the groups said in a letter to Lee Zeldin, the new administrator for the Environmental Protection Agency, dated Wednesday. "We believe strong, steady volumes for conventional biofuel targets, biomass-based diesel, and advanced fuels would more accurately reflect the availability and ongoing investments in feedstocks and production capacity," the letter added. One of the groups clarified to Reuters that they want an increase in volumes. The groups that signed the letter included the American Petroleum Institute, one of the nation's top oil trade organizations, and the Renewable Fuels Association and Growth Energy. The American Fuel and Petrochemical Manufacturers, another oil group that typically weighs in on RFS-related issues, was absent from the letter. The groups also urged the EPA to release multi-year standards for the RFS to provide more market certainty for both refiners and renewable fuel producers. Renewable volume obligations, commonly known as RVOs, were proposed and finalized annually until the compliance year 2023, when standards were set through 2025. The administration soon will likely need to begin considerations for 2026 volumes. The EPA finalized biofuel blending volumes at 20.94 billion gallons in 2023, 21.54 billion gallons in 2024 and 22.33 billion gallons in 2025. Sign up here. https://www.reuters.com/business/energy/us-oil-biofuel-groups-unite-urge-new-trump-epa-boost-biofuel-mandates-2025-02-20/