2025-11-13 06:48
Tests will also be carried out on trains, ships, machinery Government pledges transparent review of B50 implementation Considering exemption for non-public service sectors amid supply concerns NUSA DUA, Indonesia, Nov 13 (Reuters) - Indonesia will start road testing vehicles using biodiesel with palm oil content of 50% in early December as the government considers whether to implement the "B50" mandate only in certain sectors, energy ministry official Eniya Listiani Dewi said on Thursday. The government aims to introduce the B50 standard in the second half of next year, raising palm oil content from 40% this year in an effort to reduce its reliance on imported fuel. Sign up here. The tests will also be carried out on train engines, ships, mining equipment and generators, she said on the sidelines of an industry conference held on the resort island of Bali. Eniya said the government will carefully review all aspects of B50 implementation, including technical issues, pricing and the availability of supply for the palm oil-based fuel, and will be transparent about its findings. The government is considering whether to only implement B50 in so-called public service obligation sectors (PSO) such as public transport as well as some logistics facilities, due to concerns about Indonesia's limited biodiesel production capacity. "We had discussions on the possibility of increasing the blending to 50% for the PSO and reducing it for non-PSO sectors - we'll examine that," Eniya said. "The challenge is in the upstream sector. We can't implement simultaneously at 50%," she added. https://www.reuters.com/sustainability/climate-energy/indonesia-start-road-tests-b50-biodiesel-next-month-considering-selective-2025-11-13/
2025-11-13 06:46
Trump signs deal to end US government shutdown Private surveys indicate job market weakness Nov 13 (Reuters) - Gold prices fell 1% on Thursday, pulling back from a three-week high earlier in the session amid a broad market sell-off following the reopening of the U.S. government. Spot gold lost 1.1% to $4,151.86 per ounce as of 02:16 p.m. EST (1916 GMT). Elsewhere, spot silver fell 2.3% to $52.18 after rising to its highest level since October 17 earlier in the session. Sign up here. U.S. gold futures for December delivery settled 0.5% lower at $4,194.50. The U.S. government will resume operations after a record 43-day shutdown, under an agreement that funds federal operations through January 30. "Precious metals are caught in a widespread selloff, where stocks, bonds, the dollar, and crypto are all under pressure and in the red," said Tai Wong, an independent metals trader. "It's a classic buy-the-rumor, sell-it-all after the U.S. government re-opens." Earlier in the session, spot gold hit a session high of $4,244.94, the highest level since October 21. Initially, gold and silver markets rallied on the expectation that economic data released after the end of the shutdown will reveal U.S. labor market weakness and push the Fed toward at least one December rate cut, said Jim Wyckoff, senior analyst at Kitco Metals. However, citing worries about inflation and signs of relative stability in the labor market after two U.S. interest rate cuts this year, a growing number of Federal Reserve policymakers are signaling reticence on further easing. Private surveys have indicated job market weakness. While the U.S. central bank reduced rates last month, Fed Chair Jerome Powell cautioned that further easing this year was not guaranteed, partly due to a lack of data. Lower interest rates typically benefit gold, which offers no yield and is often seen as a safe-haven asset during periods of economic uncertainty. Platinum was down 2.8% at $1,569.65 and palladium fell 3.7% to $1,419.75. https://www.reuters.com/world/india/gold-extends-rise-trump-signs-deal-lift-shutdown-2025-11-13/
2025-11-13 06:14
SYDNEY, Nov 13 (Reuters) - Australia’s conservative Liberal Party on Thursday walked away from its policy to achieve net zero emissions by 2050 and pledged instead to prioritise bringing down energy prices if elected. The announcement settles months of public infighting between moderate and right-wing faction members over the party’s climate policy, and aligns the Liberals with the National Party, their rural-based coalition partner. Sign up here. Opposition Leader Sussan Ley said the Liberal party would dismantle the centre-left Labor government’s environment and energy policies if elected, scrapping targets on reducing emissions and renewable energy generation. But it would not withdraw from the Paris climate agreement, she added. "Today the Liberal Party has decided to put affordable energy first," Ley told reporters at a news conference. "Net zero would be welcome if we can get there with technology, with choice and voluntary markets." The Liberal Party’s plan would also involve preventing early coal plant closures, lifting Australia's ban on nuclear energy and increasing investment in new gas supply and infrastructure. Ley said while the party would no longer pursue net zero, emissions would still be reduced "in line with comparable countries" and "as fast as technology allows". The decision came after a five-hour party meeting on Wednesday where a majority of members voted to abandon the target. It puts the Liberal Party in line with the Nationals, who voted earlier this month to abandon its commitment to reach net-zero emissions. But Julia Dehm, an associate law professor at La Trobe University, said the plan was not in line with the Paris agreement, which requires emission reduction commitments that "represent a progression beyond previous commitments". "Australia risks international reputational damage and potential international legal actions if there isn't bi-partisan commitment to take ambitious action to prevent dangerous global heating in line with our international obligations," she said in a statement. While the Liberal Party committed to net-zero by 2050 under former Prime Minister Scott Morrison in 2021, the dispute reignited after a resounding national election defeat to the centre-left Labor Party in May. The Labor government aims to cut emissions by 62%-70% from 2005 levels by 2035, and reach net-zero emissions by 2050. In September, it announced A$5 billion ($3.3 billion) in funding to help industrial facilities decarbonise. ($1 = 1.5389 Australian dollars) https://www.reuters.com/sustainability/cop/australias-conservative-liberal-party-abandons-net-zero-policy-2025-11-13/
2025-11-13 06:14
NEW DELHI, Nov 13 (Reuters) - India's credit guarantee support for exporters will require a budget allocation of 20 billion rupees ($227.54 million) for the fiscal year 2026, a government source told reporters on Thursday. On Wednesday, the country's cabinet approved spending 450.6 billion rupees towards providing support to exporters, including 200 billion rupees in credit guarantees on bank loans. Sign up here. ($1 = 87.8950 Indian rupees) https://www.reuters.com/world/india/india-allocate-2275-million-exporters-credit-guarantee-fy26-source-says-2025-11-13/
2025-11-13 06:08
Reuters Open Interest (ROI) is your essential source for global financial commentary SYDNEY, Nov 13 (Reuters) - The liquefied natural gas market is bracing for a surge in supply next year, largely from top exporter the United States, but what is less certain is just how low spot prices will have to drop to clear the additional volumes. Global supply of the super-chilled fuel is expected to rise to 475 million metric tons in 2026, according to data from commodity analysts at Kpler, a 10.2% gain over the 431 million tons forecast for 2025. Sign up here. To put this figure in context, the expected increase in supply is equivalent to the total annual demand of South Korea, the world's third-biggest LNG importer behind China and Japan. The bulk of the increase in LNG supply comes from the United States, with Kpler's principal LNG analyst Go Katayama telling a seminar in Sydney on Thursday that U.S. capacity will rise to 130 million tons next year. This is up from 90 million tons in 2024 and an expected 110 million this year. Such a jump in supply is likely to weigh on prices, with Kpler forecasting that benchmark Asian spot prices will average $10 per million British thermal units (mmBtu) in 2026, down from about $12 in 2025. That doesn't seem overly bearish, but within an average price forecast for a calendar year there can be quite some movement on a week-by-week basis. For instance, it's likely that demand during the upcoming northern winter will keep the spot price around its current $11.10 per mmBtu, with the risk that a colder-than-usual season will push the price higher. This means the spot price will start 2026 well above the $10 average forecast for the whole year, giving it scope to drop throughout the year. If all 44 million tons of forecast new LNG supply does eventuate and hit the market, much of it will come in the second half of 2026. This makes it likely that spot prices will be weaker in the second half as the market struggles to absorb additional supply. WHO BUYS? The question is who is likely to buy the new LNG, much of which is uncontracted and thus available for spot transactions. China's weak LNG imports this year may well reverse amid stronger residential and trucking demand, with Kpler expecting imports to rise 8 million tons to 75 million in 2026. Other potential bright spots for LNG demand are India and Southeast Asian nations such as Thailand and the Philippines. However, these countries can largely be described as price-sensitive buyers, and it would likely take a drop to below $8 per mmBtu to drive them to take significant volumes. Europe's LNG demand may also increase as the continent continues to walk away from Russian pipeline natural gas, but growth may be more modest as renewables increase their share of the region's energy mix. Whether the new volume of LNG hitting the market in 2026 will be enough to drive the spot price as low as $8 is debatable, but a further wave of supply in 2027 could be enough to rout prices. Qatar, which vies with Australia as the second-biggest LNG producer, is advancing work to boost its output from 77 million tons to 126 million by 2027. QatarEnergy CEO Saad al-Kaabi said last week the Middle East producer is on track to start up new production from its massive North Field by the middle of next year, with the fourth quarter being the latest it would commence. The LNG market is heading for a situation where supply additions are running ahead of demand growth. This is leading to a market consensus that spot prices are likely to drop on a sustained basis, which will help boost demand in Asia. But for any lift in demand to be sustained, prices will have to remain depressed, a situation that is likely to curb future investment in new LNG capacity. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn , opens new tab and X , opens new tab. The views expressed here are those of the author, a columnist for Reuters. https://www.reuters.com/markets/commodities/lng-prices-will-drop-2026-absorb-supply-surge-how-much-2025-11-13/
2025-11-13 06:04
LITTLETON, Colorado, Nov 13 (Reuters) - A jump in natural gas costs has spurred several U.S. utilities to lift coal power output and cut back on gas-fired generation so far this year, reversing a years-long trend of lower coal use and emissions in the country. While the trend has been a national phenomenon, six states - Arkansas, Indiana, Michigan, Ohio, South Carolina and Wisconsin - will play a more prominent role in determining the future trajectory of U.S. coal use if natural gas prices keep climbing. Sign up here. That's because these six key states have roughly equal-sized generation shares from coal and gas within their electricity mixes, and so have the capability to replace one fuel with the other whenever market conditions dictate. With U.S. wholesale natural gas prices up 44% from a year ago and close to testing multi-year highs, additional coal-for-gas switching is likely in areas where utilities are under pressure to keep power bills in check even as demand rises. GAS PRICE INFLATION Benchmark U.S. natural gas futures have averaged around $3.57 per million British thermal units (mmBtu) so far in 2025, according to data from LSEG. That compares to a $2.47/mmBtu average in 2024, and means that heavy gas consumers have been hit with a steep jump in commodity costs in 2025 even as lowering prices has become a major focus of nearly all U.S. authorities. To cut costs, several utilities have opted to burn more coal instead of gas, as U.S. coal prices this year have averaged around 20% less than gas prices and have risen only 7% from 2024's average, data from LSEG shows. Total U.S. coal-fired electricity production through the opening seven months of the year increased by around 16% from the year before, Ember data shows, reflecting the broadly higher coal use across the country. Over the same period, U.S. gas-fired generation declined by around 4%, in response to some of the cost-saving efforts underway at several utilities. THE "KEY 6" STATES There have been several states that have both increased their coal use and decreased their gas consumption by far more than the U.S. average, and so have had an outsized impact on national coal and gas consumption trends this year. Combined coal-fired generation across Arkansas, Indiana, Michigan, Ohio, South Carolina and Wisconsin - the "Key 6" states - increased by 26% so far in 2025, while their collective gas use has dropped by 9%, Ember data shows. Coal use in these states was particularly strong during the opening months of 2025, when gas prices underwent a steep year-over-year climb and spurred those utilities with both coal and gas generation assets to tilt output in favor of coal. Arkansas, Michigan and Wisconsin all slashed their year-over-year gas-fired generation totals by well over twice the national average, while also sharply boosting coal-fired output to multi-year highs. With gas prices already close to their highest levels since 2023 and rising due to higher use for heating and strong demand from LNG exporters, cost-sensitive utilities are likely to step up coal-for-gas switching in the months ahead. EMISSIONS TOLL Higher coal burning within utility generation mixes will lead to a fresh swell in overall U.S. power sector emissions. Coal-fired generation in the U.S. emits roughly 950,000 metric tons of CO2 per terawatt hour (TWh), compared to around 550,000 tons per TWh from gas-fired generation, Ember data shows. Despite this, the pressure to keep costs in check will likely sustain the trend of cutting back on gas use when gas prices climb, while plugging any resulting generation shortages with increased coal-fired production. The heightened federal support for coal-fired power and coal mining will also maintain the momentum in favor of coal and provide utilities with some political cover against consumer pushback against a coal revival - at least over the near term. Over the longer run, sustained increases in coal pollution alongside the retirements of decades-old coal plants will force utilities to cut coal power output again, especially as the scale of renewables generation and battery storage expands. But for the coming months at least, coal-fired output across the Key 6 states - and more broadly - looks set to keep growing. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn , opens new tab and X , opens new tab. https://www.reuters.com/markets/commodities/six-us-states-watch-rising-gas-prices-drive-coal-comeback-2025-11-13/
