2025-11-11 06:14
Reuters Open Interest (ROI) is your essential source for global financial commentary. LAUNCESTON, Australia, Nov 11 (Reuters) - The decision by Saudi Aramco to cut the price of its crude oil for Asian refiners for December cargoes has been viewed as a move to build market share amid concerns of looming global oversupply. But the reduction was at the lower end of forecasts by Asian refiners and seems more of a move to keep Saudi oil just competitive enough against other grades, while also giving the world's biggest crude exporter flexibility should China and India shun Russian barrels amid U.S. sanctions. Sign up here. Aramco (2222.SE) , opens new tab last week lowered its official selling price (OSP) for its benchmark Arab Light grade for Asian customers to a premium of $1 a barrel over the Oman/Dubai average for December-loading cargoes. This was down $1.20 a barrel from a premium of $2.20 for November-loading crude and takes the OSP to the lowest level in 11 months. However, the reduction in the OSP was expected by Asia's refiners, who buy about 80% of Aramco's seaborne exports. Asian refiners forecast that Aramco would drop the OSP for Arab Light by between $1.20 and $1.50 a barrel in a survey conducted by Reuters ahead of the announcement. This means the actual reduction was at the lower end of expectations, a move that doesn't really fit with a market narrative that the Saudis are slashing oil prices in order to build market share. Rather, the lower OSP reflects Aramco's long-standing practice of following the current market dynamics in setting prices. The premium of cash Dubai crude to swaps has been trending lower in recent weeks, averaging $1.12 a barrel so far this month, down from $1.73 in September. The price of global benchmark Brent crude over Dubai has also been trending lower, with the exchange for swaps dropping to a rare discount last week. Brent's discount to Middle East benchmark Dubai widened to 26 cents a barrel on Monday, the most in more than five years and down from a premium of $3.77 a barrel as recently as June 19. What this means is that crude grades that are priced against Brent are becoming relatively cheaper compared with those priced against Dubai. Crudes that are priced against Brent include grades from West Africa, Latin America and even U.S. grades, given West Texas Intermediate Midland is deliverable into the Brent benchmark. In effect, what Aramco is doing with the cut to its December OSP is ensuring that its crude remains competitive against other grades. This means that Saudi crude will remain in the mix when Asian refiners are deciding what they need for December and January processing. RUSSIAN UNCERTAINTY It also means that Aramco can take advantage of any reduction in the supply of Russian crude, which has been hit by new sanctions by U.S. President Donald Trump. Some refiners in the main buyers of Russian crude, China and India, have been reported to be looking for alternative supplies. There is some evidence of this happening in top crude importer China, with commodity analysts Kpler estimating November seaborne imports from Russia will drop to around 926,000 barrels per day (bpd) from 1.45 million bpd in October. At the same time China's imports of Saudi crude are on track to rise to 1.78 million bpd in November from 1.20 million bpd in October. However, Asia's second-biggest oil importer, India, is expected to receive about 589,000 bpd of Saudi crude in November, down from 691,000 bpd in October, according to Kpler estimates. India is still buying Russian crude, with 2.26 million bpd expected to land in November, up from 1.70 million bpd in October. However, India's purchases of Russian oil may start to ease from December onwards if its refiners are genuine in their stated commitment to buy less. With uncertainty over how much Russian crude will be bought by China and India, it seems that Aramco has positioned to take advantage of any gaps in supply by making more crude available at prices that are at least competitive with other grades. 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/saudi-crude-oil-price-cut-is-just-enough-stay-competitive-2025-11-11/
2025-11-11 06:13
Nov 11 (Reuters) - The boss of German potash and salt miner K+S (SDFGn.DE) , opens new tab has called on Berlin to accelerate permits for raw material extraction projects and ease energy costs, warning that the country’s industrial base is at risk. "It is unacceptable that, as a raw materials extraction company in Germany, we often have to wait years for important permits. This has to be faster. And it can be faster. Other countries, such as Canada, where we also have production facilities, are showing us how it can be done," said K+S Chief Executive Officer Christian Meyer. Sign up here. K+S has invested around 600 million euros ($700 million) in its Werra potash plant, but Meyer said high energy prices were weighing heavily on both the company and the wider economy. "The situation is so dramatic that, without exaggeration, the future of industry in our country is at stake," he added. The German chemical sector, the country's third-largest, has been struggling for years with subdued demand, high energy costs, supply chain issues, while global inflation and trade tensions continue to pile on pressure. "Politicians must understand this and remedy this situation now," Meyer said. ($1 = 0.8575 euros) https://www.reuters.com/business/energy/ks-boss-urges-faster-permits-lower-energy-costs-safeguard-german-industry-2025-11-11/
2025-11-11 05:33
A look at the day ahead in European and global markets from Tom Westbrook The longest U.S. government shutdown on record looks to be nearly over, and traders are riding the tail end of a wave of relief that began late last week. Sign up here. The Senate approved a compromise that would restore U.S. government funding. It next heads to the House, where Speaker Mike Johnson has said he would like to pass it as soon as Wednesday and send it on to President Donald Trump to sign into law. Gold and the Nasdaq (.IXIC) , opens new tab have logged their best gains in months, with gold in particular attempting to recover the momentum that shot it to record highs in October with an added boost from bets on future U.S. interest rate cuts. Asian share markets were mostly steady or a little higher through Tuesday and the risk-on mood pushed the safe-haven yen to a nine-month low. The U.S. bond market is closed on Tuesday for a holiday, but long bonds have been sold and shorter ones were steadier, reflecting markets' shift out of riskier assets as well as an expectation that the resumption of U.S. data publication builds a case for rate cuts. Elsewhere, Japanese tech investor SoftBank Group (9984.T) , opens new tab is about to report second-quarter earnings in the midst of feverish investment in artificial intelligence that has sent its share price soaring. Sony (6758.T) , opens new tab raised its operating profit forecast for the year ending March 2026 by 8%, citing a smaller impact from U.S. tariffs and the strength of its music and chips businesses. In Australia, shares in one of the world's most expensive banks, Commonwealth Bank (CBA.AX) , opens new tab, fell nearly 5% after the country's biggest lender said competition was cutting margins. In China, Tuesday is Singles Day and the culmination of what has evolved into a weeks-long shopping bonanza. Last year, 1.44 trillion yuan ($202 billion) of goods were sold during the period. That's almost five times the $41.1 billion U.S. shoppers spent last year during Cyber Week, the period from Black Friday to Cyber Monday. Key developments that could influence markets on Tuesday: - Earnings from SoftBank, Vodafone and Munich Re - German ZEW survey, British weekly employment data https://www.reuters.com/world/china/global-markets-view-europe-2025-11-11/
2025-11-11 05:14
BEIJING, Nov 11 (Reuters) - China is willing to resume exchanges with Canada and cooperate in various fields, its foreign minister said to his Canadian counterpart without specifying the sectors, the official Xinhua news agency reported on Tuesday. Foreign Minister Wang Yi said China is willing to strengthen communication with Canada, adding that the diplomatic, commercial and other departments of both countries could enhance coordination and properly address their respective concerns. Sign up here. Wang made the remarks to Canada's Anita Anand over a phone call, following a meeting between Chinese President Xi Jinping and Canadian Prime Minister Mark Carney on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum in South Korea last month. Both leaders discussed trade issues including agriculture and electric vehicles. Wang also said the leaders' meeting marked the return of bilateral ties to the right track after years of turbulence. https://www.reuters.com/world/china/china-ready-resume-exchanges-cooperate-with-canada-foreign-minister-says-2025-11-11/
2025-11-11 05:08
Nov 11 (Reuters) - Australia's corporate regulator said on Tuesday it has sued AVZ Minerals and two of its directors, alleging the miner failed to disclose an escalating legal dispute with the Democratic Republic of the Congo over its stake in a lithium project. The Australian Securities and Investments Commission (ASIC) accused the Perth-based company of breaching disclosure obligations and engaging in "misleading and deceptive conduct" by withholding information about the dispute. Sign up here. AVZ holds a 75% stake in the Manono lithium project , opens new tab through its subsidiary, Dathcom Mining. It has been embroiled in a legal dispute with the DRC government since 2022 over ownership rights to the project, which comprises the world's largest deposits of hard-rock lithium. The watchdog also alleged that Managing Director Nigel Ferguson and Technical Director Graeme Johnston breached their director duties by authorising exchange filings that were "false or misleading, or omitted matters" relating to the dispute. "We allege Mr Ferguson and Mr Johnston failed to inform investors of the ongoing issues in this matter for nearly 12 months," ASIC Deputy Chair Sarah Court said in a s , opens new tab tatement , opens new tab. "The pair allegedly failed to take reasonable steps to ensure AVZ complied with its continuous disclosure obligations and that statements to the ASX (Australian Securities Exchange) were not misleading or deceptive." AVZ went on a halt in May 2022 and was delisted from the ASX in May 2024. The company did not immediately respond to a Reuters request for comment. https://www.reuters.com/sustainability/boards-policy-regulation/australia-watchdog-sues-avz-minerals-over-congo-disclosure-breaches-2025-11-11/
2025-11-11 04:42
MUMBAI, Nov 11 (Reuters) - The Indian rupee inched up on Tuesday, helped by modest inflows and dollar sales from state-run banks, but progress in U.S.-India trade negotiations remained the focal point for future direction, traders said. The rupee closed at 88.5675 against the U.S. dollar, up 0.1% on the day. Sign up here. The currency lingered near the 88.70 mark for most of the session, with dollar sales from a few foreign banks prompting an uptick in the latter half, traders said. The market took note of the optimistic remarks on U.S.-India negotiations but the reaction was muted as investors wait for concrete developments. On Monday, U.S. President Donald Trump said that Washington was getting close to reaching a deal with India. Analysts at ING expect India to clinch a trade deal in the coming few months but warned that "prevailing uncertainty around tariffs may weigh on investor sentiment in the near term." India's benchmark equity indexes, the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab, rose about 0.5% each. The dollar index was steady at 99.6 and most Asian currencies slipped. The focus for global markets is on the imminent end of the U.S. government shutdown, which has delayed economic data, central to gauging the outlook for interest rates in the world's largest economy. The Federal Reserve cut interest rates at its most recent meeting, but Chair Jerome Powell cautioned against assuming another cut in December. Money markets are currently pricing in a 63% chance of a 25 basis point rate cut next month. An end to the shutdown is expected to lead to a raft of data releases which could prompt a reassessment of these expectations. https://www.reuters.com/world/india/rupee-draw-support-trumps-trade-optimism-curbed-by-firm-dollar-2025-11-11/
