2025-01-24 05:16

Trump reiterates call on OPEC to bring down oil prices US president moves to raise US oil output Trump vows to impose tariffs on European Union, Canada and Mexico U.S. crude stocks fall by 1 million barrels HOUSTON, Jan 24 (Reuters) - Oil prices settled slightly higher on Friday but posted a weekly decline, ending four straight weeks of gains, after U.S. President Donald Trump announced sweeping plans to boost domestic production while demanding that OPEC move to lower crude prices. Brent crude futures settled up 21 cents, or 0.27%, to $78.50 a barrel. U.S. West Texas Intermediate crude (WTI) settled up 4 cents, or 0.05%, to $74.66. Brent has lost 2.8% this week while WTI was down 4.1%. Trump on Friday reiterated his call for the Organization of the Petroleum Exporting Countries to cut oil prices to hurt oil-rich Russia's finances and help bring an end to the war in Ukraine. "One way to stop it quickly is for OPEC to stop making so much money and drop the price of oil ... that war will stop right away," Trump said as he landed in North Carolina to view storm damage. The threat of harsh U.S. sanctions on Russia and Iran, which are key oil producers, could undermine Trump's goal of lowering energy costs, StoneX analyst Alex Hodes said in a note on Friday. "Trump knows this and has leaned on OPEC to cover the void that these will create," Hodes said. On Thursday, Trump told the World Economic Forum he would demand that OPEC and its de facto leader, Saudi Arabia, bring down crude prices. OPEC+, which includes Russia, has yet to react, with delegates from the group pointing to a plan already in place to start raising oil output from April. "I don't really expect OPEC will change policy unless there is a change in fundamentals," UBS commodities analyst Giovanni Staunovo said. "Markets will be relatively muted until we get more clarity on sanctions policy and tariffs." TARIFFS Chevron (CVX.N) , opens new tab said on Friday it had started production at a $48 billion expansion of the giant Tengiz oilfield, which will bring its output to around 1% of global crude supply, and could further pressure OPEC's efforts in the last few years to limit production. Trump declared a national energy emergency on Monday, rolling back environmental restrictions on energy infrastructure as part of his plans to maximize domestic oil and gas production. These rollbacks could support oil demand but have the potential to exacerbate oversupply, said Nikos Tzabouras, senior market specialist at trading platform Tradu. Trump's policies so far have largely followed predictions on the supply side, including cutting red tape to promote domestic supply growth, according to StoneX's Hodes. However "the lower hanging fruit for growth has already been picked." The U.S. president vowed on Wednesday to hit the European Union with tariffs and impose 25% tariffs on Canada and Mexico. He also said his administration was considering a 10% punitive duty on China. As attention shifts to a possible February timeline for new tariffs, caution is likely to persist in the market, given potential negative implications for global growth and oil demand prospects, said Yeap Jun Rong, a market strategist at IG. Traders expect oil prices to range between $76.50 and $78 a barrel, he added. While bullish catalysts such as a significant drawdown in U.S. crude stocks are providing temporary positive swings, an over-supplied global market and projections of ailing Chinese demand continue to weigh on crude futures, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova. U.S. crude inventories last week hit their lowest level since March 2022, the U.S. Energy Information Administration said. Sign up here. https://www.reuters.com/markets/commodities/oil-falls-prospect-trump-pushing-up-crude-supplies-2025-01-24/

2025-01-24 01:52

Jan 24 (Reuters) - Australia's corporate regulator said on Friday it was assessing all options for a regulatory response, after bourse operator ASX's (ASX.AX) , opens new tab clearing and settlement software CHESS broke down last month. The Australian Securities and Investments Commission (ASIC) said it was deeply disappointed by the incident and the impact it had on the market. "ASIC is engaging with the RBA (Reserve Bank of Australia) and stakeholders on the impact of the incident and lessons for the future," ASIC said in an emailed statement to Reuters. ASX said on Thursday it will pay a rebate of A$1 million ($628,000.00) to traders affected by deferred settlements due to the CHESS (Clearing House Electronic Subregister System) outage on Dec. 20. "ASIC is in regular contact with ASX and has underlined its expectations for the ongoing resilience, reliability, integrity, and security of CHESS," ASIC said. ASX had been looking to replace the CHESS software using blockchain-based technology, but abandoned the overhaul in November 2022, six years after announcing it, citing concerns about the product's complexity and scalability. It is currently facing a lawsuit from Australia's corporate regulator alleging it misled the public about the progress of a troubled software upgrade. ($1 = 1.5924 Australian dollars) Sign up here. https://www.reuters.com/markets/australias-corporate-watchdog-assessing-regulatory-response-options-after-asx-2025-01-24/

2025-01-24 00:28

First big IPO of Trump's second term Trump's order to end moratorium on new LNG export permits a boost Company forced to halve valuation as investors balk at earnings outlook Concern also over Venture Global's contract arbitration cases Jan 23 (Reuters) - Liquefied natural gas exporter Venture Global (VG.N) , opens new tab said on Thursday it had raised $1.75 billion, marking the first big initial public offering of President Donald Trump's second term as investors bet on his plan to boost U.S. energy production. Venture Global is the second-largest exporter of liquefied natural gas, or LNG, in the United States, and one of Trump's first moves after his inauguration was to sign an executive order to end a moratorium on new LNG export permits, which clears an obstacle to Venture Global's expansion plan. However, the company was forced to nearly halve the valuation it was seeking after investors balked at its estimates for long-term profit for exports, Reuters reported on Wednesday. The offering of 70 million shares was sold at $25 each, within a revised range of $23 to $27 apiece. The company also increased the number of shares on offer. The company had initially set a target of selling 50 million shares for $40 to $46 each to raise as much as $2.3 billion for a valuation of $110 billion. Trump had promised to maximize U.S. oil and natural gas production in part by clearing away what he deems unnecessary regulation and bureaucracy. Trump has also said he wants to see European companies buy more U.S. LNG. Venture Global's offering extends a strong start to the year for IPOs, buoyed by interest rate cuts by the U.S. Federal Reserve and expectations of deregulation and corporate tax reductions under the Trump administration. Oilfield services provider Flowco's (FLOC.N) , opens new tab shares jumped in their market debut last week, while Smithfield Foods is set to go public next week with a valuation aim of $10.7 billion. Venture Global has five LNG projects in various stages of development near the Gulf of Mexico in Louisiana and expects to have total peak production of 143.8 million tonnes a year. Developers such as Venture Global have built terminals along the U.S. Gulf Coast to liquefy and ship the gas, turning the United States into the world's top LNG exporter. Investors had been concerned by Venture Global facing contract arbitration cases brought by some of the world's top oil and gas producers, including BP (BP.L) , opens new tab, Shell (SHEL.L) , opens new tab and Repsol (REP.MC) , opens new tab, for cargoes exported from the company's first project, the Calcasieu Pass plant. The cases could cost Venture Global billions of dollars if it loses, its IPO document indicated. Despite the price revision, Venture Global's market value is on track to surpass rival Cheniere Energy (LNG.N) , opens new tab, currently the largest U.S. LNG exporter with a market value of around $52.36 billion. Venture Global, founded in 2013, will start trading on the New York Stock Exchange on Friday under the ticker symbol "VG." The IPO is being underwritten by a syndicate of Wall Street banks led by Goldman Sachs, JPMorgan and BofA Securities. Sign up here. https://www.reuters.com/business/energy/venture-global-lng-raises-175-bln-after-pricing-us-ipo-2025-01-24/

2025-01-23 23:33

Jan 23 (Reuters) - The unit of Blackstone (BX.N) , opens new tab dedicated to investments in the energy industry has agreed to acquire Potomac Energy Center, the asset manager told Reuters on Thursday, in a deal symbolizing the allure to investors of power plants sited near data centers. Blackstone Energy Transition Partners has agreed to buy the 774-megawatt natural gas-fired power plant in Loudoun County in northern Virginia, according to a statement. The statement gave no financial details, but sources familiar with the matter said Blackstone is paying around $1 billion for the facility. Fellow investment firm Ares Management (ARES.N) , opens new tab has owned the plant since 2021. Potomac Energy Center is situated in the area of northern Virginia outside of Washington D.C. which is estimated to have around a quarter of the current U.S. data center capacity. This proximity was one of the reasons why Potomac Energy Center was so attractive, according to Blackstone Energy Transition Partners' Senior Managing Director Bilal Khan. "This opportunity is unique," Khan told Reuters. "Not only for its location and its unparalleled access to data centers in Virginia, but also for the efficiency of the plant and the young age of the facility." The plant was built in 2017. The boom in artificial intelligence and data centers is driving power demand to record levels, with growth expected to persist for the rest of the decade. This is making generation assets increasingly attractive to buyers, especially so for gas-fired power plants which can provide the consistent power output that data centers require. Earlier this month, Constellation Energy (CEG.O) , opens new tab agreed the $16.4 billion purchase of Calpine. The largest U.S. power deal in nearly two decades is aimed at adding Calpine's predominantly gas-fired fleet to Constellation's existing generation mix which is majority nuclear power. Blackstone has been investing, across a number of strategies, into both data centers and the energy infrastructure powering them. In September, it agreed a $16 billion deal to buy Australian data center operator AirTrunk, while AI cloud platform CoreWeave said in May it raised a $7.5 billion debt facility from investment firms including Blackstone. Sign up here. https://www.reuters.com/business/energy/blackstone-buy-1-billion-virginia-power-plant-near-data-centers-2025-01-23/

2025-01-23 23:18

Trump makes accusations in video address to Davos meeting The banks deny making banking decisions based on politics Trump mentions JPMorgan CEO Jamie Dimon Jan 23 (Reuters) - U.S. President Donald Trump on Thursday accused the CEOs of Bank of America (BAC.N) , opens new tab and JPMorgan Chase (JPM.N) , opens new tab of not providing banking services to conservatives, echoing Republican complaints about the industry. The broadside against Wall Street banks comes after some institutions have been accused by both congressional Republicans and Republican-led states of "woke capitalism" as well as de-banking gunmakers, fossil fuel companies and others perceived to be aligned with the political right. The two banks targeted on Thursday denied they made banking decisions based on politics. "I hope you start opening your bank to conservatives, because many conservatives complain that the banks are not allowing them to do business within the bank, and that included a place called Bank of America," said Trump, who returned to the White House on Monday. "What you're doing is wrong," he said, in an address at the World Economic Forum in Davos, Switzerland, via a video link. Trump did not cite evidence or specifics of any wrongdoing, in a question-and-answer session with corporate leaders and CEOs assembled on stage. He also referenced JPMorgan CEO Jamie Dimon. "You and Jamie and everybody, I hope you're gonna open your bank to conservatives," Trump said. In recent years various financial companies in the U.S. and elsewhere have tried to respond to growing interest from investors and clients on issues like climate change and workforce diversity. But institutions have simultaneously faced complaints they unfairly cut off conservative groups over their viewpoints rather than violations of their policies such as bans on promoting violence. Bank of America CEO Brian Moynihan did not address the claim in comments right after Trump spoke, but he smiled and complimented him on the U.S. hosting the upcoming World Cup. "We welcome conservatives," a Bank of America spokesperson said in an email. "We are required to follow extensive government rules and regulations that sometimes result in decisions to exit client relationships. We never close accounts for political reasons and don't have a political litmus test." JPMorgan, the biggest U.S. lender, also said it has never and would never close an account for political reasons. "We follow the law and guidance from our regulators and have long said there are problems with the current framework Washington must address," it said. "We welcome the opportunity to work with the new Administration and Congress on ways to remove regulatory ambiguity while maintaining our country's ability to address financial crime," a JPMorgan spokesperson said by email. Singling out specific companies is not unprecedented for Trump, who made a habit of accusing companies like Boeing and Ford of wrongdoing during his first term while praising others that furthered his political aims. Some in the banking industry said that the criticism could lead to some changes. Greg Baer, President and CEO of trade group Bank Policy Institute, said it agrees with Trump's diagnosis that much de-banking occurs as a result of an anti-money laundering and 'reputational risk' regime administered by the federal banking agencies. "We look forward to working with the administration to address this problem and enable banks to provide more services to more customers," he said. Raymond James analyst Ed Mills called it highly unusual for a U.S. President to call out financial institutions by name, but said Trump's comments could be significant as his administration prepares new regulations. "These comments could be early indicators that expansion of their business to cover some of his preferred industries would be welcomed," Mills said. COMPLAINTS FROM CONSERVATIVES In 2022 JPMorgan came under fire for shuttering the account of the National Committee for Religious Freedom, a non-profit founded by the former U.S. Ambassador for International Religious Freedom Sam Brownback. Among other things the bank said it wanted "confidential donor information" from the organization, according to a 2024 letter from the Kansas attorney general. JPMorgan declined to discuss the episode in detail, but a representative said Thursday that it does not discriminate on the basis of political or religious views and that it was a business decision. JPMorgan last year won credit from conservative groups for changes such as dropping a requirement that merchants using its WePay service not accept payments tied to risks like allegations of racism or sexual harassment. It also started using language that it serves customers "regardless of political, social or religious viewpoints." Investors so far have not broadly supported the matter. At Bank of America, a shareholder resolution last year calling on it to report on "risks of politicized de-banking" won support from only 3% of votes cast, not enough to be resubmitted. Sign up here. https://www.reuters.com/markets/trump-accuses-bank-america-jpm-not-doing-business-with-conservatives-2025-01-23/

2025-01-23 22:54

Jan 24 (Reuters) - Rio Tinto (RIO.AX) , opens new tab warned on Friday that its first-quarter shipments could be affected by disruptions to its rail operations following record rainfall along Western Australia's Pilbara coastline due to tropical cyclone Sean. A railcar dumper at the East Intercourse Island (EII) port facility, which handled 45 million metric tons of total iron ore shipments in 2024, had experienced severe flooding, the producer of the steel-making commodity said. The situation is currently under assessment with preliminary findings indicating that the EII dumper may be out of operation for three to four weeks for repair work, Rio said. "Recovery works within the broader Iron Ore system are progressing, with the majority of rail and port operations now returned to operations," the company said, adding it was maintaining its overall shipment forecast for 2025. Heavy rains led Rio Tinto to report a 1% fall in its iron ore shipments in the December quarter, highlighting the recurring impact of severe weather conditions on production, particularly in the rain-stricken Pilbara region. Meanwhile, Port Hedland, which is integral to iron ore shipments from miners such as BHP Group (BHP.AX) , opens new tab and Fortescue (FMG.AX) , opens new tab, reopened on Monday after the threat posed by the cyclone subsided, with operations resuming following clearance from the Pilbara Ports Authority. Sign up here. https://www.reuters.com/markets/commodities/rio-tinto-sees-q1-shipment-disruptions-after-cyclone-induced-rail-operations-2025-01-23/