2025-02-05 07:51

LONDON, Feb 5 (Reuters) - Norway's Equinor (EQNR.OL) , opens new tab is reducing its ambitions for developing renewable energy capacity by 2030, it said on Wednesday, the latest move by a European energy company to cut green targets as the market for renewables sours. Equinor follows peers BP (BP.L) , opens new tab and Shell (SHEL.L) , opens new tab, which have trimmed plans to expand in renewable energy, especially offshore wind, where they previously hoped to benefit from their experience of operating oil and gas production at sea. The offshore wind industry has struggled with interest rate rises, cost inflation, supply bottlenecks, changing regulatory regimes and unattractive margins, testing investors' patience. "For renewables, the ambition for installed capacity is reduced to 10-12 gigawatt by 2030," Equinor said in a strategy update on Wednesday. This is down from a target of 12-16 gigawatts (GW) by 2030 Equinor set in 2021. The company was doing it to adapt to market conditions and to further strengthen value creation for shareholders, it said. The new target included Equinor's 10% stake in Danish offshore developer Orsted (ORSTED.CO) , opens new tab, the world's largest, as well as its 16.2% ownership in solar company Scatec (SCATC.OL) , opens new tab, Equinor said. In addition, Equinor is scrapping a previous 2030 target to allocate 50% of gross capital expenditures to renewables and low carbon solutions, it said. Separately, Equinor on Wednesday posted slightly higher-than-expected profits for the final quarter of 2024, while raising its oil and gas output forecast. Sign up here. https://www.reuters.com/sustainability/climate-energy/equinor-cuts-renewable-energy-target-due-industry-headwinds-2025-02-05/

2025-02-05 07:38

NAIROBI, Feb 5 (Reuters) - Kenya's shilling was unchanged against the dollar on Wednesday, data from the London Stock Exchange Group showed. At 0725 GMT, the shilling quoted at 128.90/129.40, unchanged from Tuesday's closing rate. Sign up here. https://www.reuters.com/markets/currencies/kenya-shilling-steady-versus-dollar-lseg-data-shows-2025-02-05/

2025-02-05 07:24

US crude oil stocks rose sharply last week, EIA says China hits US with tariffs on imports of oil, other energy commodities Trump clamp-down on Iran may support prices near term Feb 5 (Reuters) - Oil prices fell more than 2% on Wednesday as a large build in U.S. crude and gasoline stockpiles signaled weaker demand, while worries about a new China-U.S. trade war fueled fears of softer economic growth. Brent crude futures settled down $1.59, or 2.09%, to $74.61 a barrel. U.S. West Texas Intermediate crude was down $1.67, or 2.3%, to $71.03. U.S. crude oil inventories rose sharply last week, the Energy Information Administration said on Wednesday, as refiners facing soft gasoline demand did maintenance work. "Refiners just don't have a call for crude right now," said John Kilduff, a partner at Again Capital in New York. "They're racing into maintenance, given the slack demand we're seeing for gasoline," he added. Concern over a new trade war between the U.S. and China, the world's largest energy importer, also pressured prices. On Tuesday, China announced tariffs on imports of U.S. oil, liquefied natural gas and coal in retaliation for U.S. levies on Chinese exports, pushing WTI down 3% at its session low, the lowest since Dec. 31. "China putting a tariff on U.S. imports reduces the demand for those commodities, which need to be redirected into another market," said Andrew Lipow, president of Lipow Oil Associates. On Wednesday, Iran's President Masoud Pezeshkian urged OPEC members to unite against possible U.S. sanctions, after Trump said he would restore the "maximum pressure" campaign on Iran that he enacted in his first term. Trump drove Iran's oil exports to near zero during part of his first term after reimposing sanctions to curtail the country's nuclear program. "Should these sanctions be reimposed, the resulting supply squeeze could sustain the upward momentum in oil prices, particularly amid slower than expected supply adjustments from OPEC+ producers," said Ahmad Assiri, research strategist at brokerage Pepperstone. Tehran's oil exports brought in $53 billion in 2023 and $54 billion a year earlier, according to EIA estimates. Output during 2024 was running at its highest level since 2018, based on OPEC data. "The oil market is now caught between increasing fears that an escalating trade war will damage global oil demand growth on the one hand and possible sudden disruption of Iranian oil exports," said Bjarne Schieldrop, chief commodities analyst at SEB. Sign up here. https://www.reuters.com/markets/commodities/oil-little-changed-market-shrugs-off-china-tariffs-iran-pressure-supports-2025-02-05/

2025-02-05 07:24

SINGAPORE, Feb 5 (Reuters) - Fuel oil margins climbed after U.S. President Donald Trump reimposed a tougher policy on Iran, though trade sources expect a short-lived rally amid unclear supply disruption, while softer China demand and broader tariff concerns weighed on sentiment. The market, particularly for high-sulphur fuel, has undergone volatile movements this year so far, as trade participants considered mixed drivers and eyed supply uncertainties. The recent strength in traded margin or crack spread was more of a knee-jerk reaction, a fuel oil trader said, adding that Chinese demand remained a bearish factor. Singapore's 380-cst high-sulphur fuel oil (HSFO)/Brent crack for March reached a discount of about 70 cents a barrel in Wednesday morning trade, according to market sources. Cracks compared over 80% higher versus early 2025 when it was at a discount wider than $5 a barrel, based on LSEG data. The front-month value hit a multi-year high in end-January. HSFO benchmarks have been supported due to risks of tighter logistics after the U.S. imposed broader sanctions on Russia. However, the strength will remain capped on weaker demand, market sources said. China's fuel oil imports are set to soften due to a hike in the product's import tax this year and lower rebates on purchases. Concerns on broader tariffs are also adding much volatility to the market, another fuel oil trader said. Meanwhile, Trump restored on Tuesday his "maximum pressure" campaign on Iran that includes efforts to drive its oil exports down to zero, reimposing Washington's tough policy on the country. Iranian oil typically moves via a shadow fleet of tankers that conceal their activities to skirt sanctions. Sign up here. https://www.reuters.com/markets/commodities/fuel-oil-rally-expected-stall-market-shakes-off-us-iran-policy-2025-02-05/

2025-02-05 07:19

Q4 profit of $4.4 billion beats estimates Group reports stronger power sales, LNG trading PARIS, Feb 5 (Reuters) - French oil major TotalEnergies (TTEF.PA) , opens new tab reported a 15% drop in fourth-quarter earnings on Wednesday, closing out a year marked by low oil prices and weak fuel demand that were partially offset by higher electricity sales and liquefied natural gas trading. Adjusted net income for the final three months of 2024 was $4.4 billion, down from $5.2 billion a year previously but slightly higher than the third quarter's $4.1 billion. The results beat expectations for $4.2 billion, according to a Visible Alpha consensus of six analysts. Western oil majors are facing reduced economic activity and competition from new African and Asian refineries, which caused profit margins for converting crude oil into fuel products to collapse last year. The trend is expected to continue in 2025. Total's European refining margin for the fourth quarter was $25.90 per metric ton — half the $50.10 realized in late 2023 — while crude oil prices were nearly $10 per barrel lower than the previous year. Last week Shell, Chevron and ExxonMobil all reported fourth-quarter earnings hard hit by the downturn in refining margins. Total was able to end the year on a higher note thanks to its integrated LNG division, where traders captured higher profits due to market volatility and boosted earnings by 35% to $1.4 billion. The company said it expects higher gas prices, upstream production and power sales in early 2025. Total announced a 7% increase in the 2024 dividend to 3.22 euros per share, and for 2025 confirmed share buybacks of $2 billion per quarter. Sign up here. https://www.reuters.com/business/energy/totalenergies-posts-drop-fourth-quarter-profit-weak-oil-demand-2025-02-05/

2025-02-05 07:09

PARIS, Feb 5 (Reuters) - French oil major TotalEnergies (TTEF.PA) , opens new tab reported a 15% drop in fourth quarter earnings on Wednesday, closing out a year marked by low oil prices and weak fuel demand which were partially offset by higher electricity sales and liquefied natural gas (LNG) trading. Adjusted net income for the final three months of 2024 was $4.4 billion, versus $5.2 billion a year previously and slightly higher than the third quarter's $4.1 billion. The results beat an expected $4.2 billion, according to a Visible Alpha consensus of six analysts. Sign up here. https://www.reuters.com/business/energy/totalenergies-posts-drop-q4-profit-weak-oil-demand-2025-02-05/