2025-01-08 04:33

WTI, Brent gains limited by US dollar strength API shows US crude stocks fall 4.02 million barrels, sources say OPEC production falls in December, Reuters survey shows Jan 8 (Reuters) - Oil prices trimmed earlier gains on Wednesday as the dollar strengthened but continued to find support from a tightening of supplies from Russia and other OPEC members and a drop in U.S. crude stocks. Brent crude was up 32 cents, or 0.42%, at $77.37 a barrel at 1217 GMT. U.S. West Texas Intermediate crude climbed 47 cents, or 0.63%, to $74.72. Both benchmarks had risen more than 1% earlier in the session. "The dollar's safe haven status is appreciated as fears of renewed U.S. inflationary pressure grow," said Tamas Varga, an analyst with oil broker PVM. A stronger dollar makes oil more expensive for holders of other currencies. "The drop (in oil prices) seems to be driven by a general shift in risk sentiment with European equity markets falling and the USD getting stronger," said UBS analyst Giovanni Staunovo. Oil output from the Organization of the Petroleum Exporting Countries fell in December after two months of increases, a Reuters survey showed. Field maintenance in the United Arab Emirates offset a Nigerian output hike and gains elsewhere in the group. In Russia, oil output averaged 8.971 million barrels a day in December, below the country's target, Bloomberg reported citing the energy ministry. U.S. crude oil stocks fell last week while fuel inventories rose, market sources said, citing American Petroleum Institute figures on Tuesday. Despite the unexpected draw in crude stocks, the significant rise in product inventories was putting those prices under pressure, Varga added. Analysts expect oil prices to be on average down this year from 2024 due in part to production increases from non-OPEC countries. "We are holding to our forecast for Brent crude to average $76/bbl in 2025, down from an average of $80/bbl in 2024," BMI, a division of Fitch Group, said in a client note. Sign up here. https://www.reuters.com/business/energy/oil-prices-up-tighter-opec-supply-us-jobs-data-2025-01-08/

2025-01-08 02:55

MUMBAI, Jan 8 (Reuters) - The Indian rupee is likely to open weaker on Wednesday after upbeat U.S. economic data lifted U.S. bond yields, prompting the dollar to resume its uptrend. The one-month non-deliverable forward indicated that the rupee will open at 85.80-85.81 to the U.S. dollar, compared with 85.7125 in the previous session. The dollar index dipped during Asia trade to 108.5 after rising 0.3% on Tuesday as data showed that job openings in the U.S. grew to 8.098 million, exceeding forecasts for a 7.7 million rise, while services sector activity also accelerated. The greenback had dipped to is lowest level in a week on Monday as traders assessed whether U.S. President-elect Donald Trump's tariff policies would match his aggressive rhetoric. The data, alongside a supply of $39 billion worth of 10-year U.S. bonds, prompted the 10-year Treasury yield to rise about 8 basis points to 4.69%, its highest level since April last year. Persistent strength in the U.S. dollar, concerns over India's slowing economic growth and tepid capital flows have pressured the rupee in recent weeks. Foreign investors have net sold nearly $2 billion worth of Indian stocks and bonds over January so far, while India has pegged its forecast for annual growth in the year ending in March at 6.4%, the slowest pace in four years, per data released on Tuesday. "Juxtaposing less favourable global catalysts (slippery yuan included) and domestic drivers, we expect the rupee to lose ground this quarter," DBS Bank said in a note. "Rupee traders have been keen to assess the new RBI (Reserve Bank of India) Governor’s view on the currency since he assumed office last month. Recent INR price action points to a higher tolerance for a weaker exchange rate," it said. Asian currencies were mostly weaker on Wednesday, with the offshore Chinese yuan trading lower at 7.34. KEY INDICATORS: ** One-month non-deliverable rupee forward at 86.05; onshore one-month forward premium at 24.5 paise ** Dollar index down 0.1% at 108.58 ** Brent crude futures up 0.3% at $77.3 per barrel ** Ten-year U.S. note yield at 4.68% ** As per NSDL data, foreign investors sold a net $356 million worth of Indian shares on Jan. 6 ** NSDL data shows foreign investors sold a net $56.6 million worth of Indian bonds on Jan. 6 Sign up here. https://www.reuters.com/markets/currencies/rupee-face-pressure-upbeat-us-data-reignites-dollar-uptrend-2025-01-08/

2025-01-08 00:10

SEOUL, Jan 8 (Reuters) - South Korea's acting President Choi Sang-mok on Wednesday said the government will work with the central bank and regulators to respond swiftly to any financial market volatility and focus on communicating with the incoming U.S. administration. Sign up here. https://www.reuters.com/markets/currencies/skorea-acting-president-says-government-will-respond-swiftly-market-volatility-2025-01-08/

2025-01-07 23:10

Exxon's profits likely to be well below consensus Asset impairments could cost about $600 million Global fuel demand lags expectations HOUSTON, Jan 7 (Reuters) - Exxon Mobil (XOM.N) , opens new tab signaled on Tuesday that sharply lower oil refining profits and weakness across all its businesses would reduce its fourth-quarter earnings by about $1.75 billion from the prior quarter. The oil major also said in an SEC filing that upstream asset sales would benefit results by about $400 million, but overall impairments would cost about $600 million. The company's filing did not specify a reason for the impairments. Exxon's snapshot is closely watched for clues to how other oil majors will fare when they begin releasing results this month. Exxon is expected to post a profit of $1.76 a share for the fourth quarter, down from $2.48 a share, in the same quarter last year, according to financial firm LSEG. Exxon's earnings snapshot signaled profits "well below consensus," said Biraj Borkhataria, an oil analyst with RBC Capital Markets, in a note to investors. The forecast showed "significant headwinds" in refining, he added. The company indicated oil refining margins would cut earnings by between $300 million and $700 million from the third-quarter level. It also signaled timing effects would lop off another $500 million to $900 million. Demand for gasoline and diesel has lagged expectations globally and the start of new oil refineries in Asia and Africa led to excess supplies in the market. U.S. fuel stockpiles grew in the quarter as refiners keep their utilization rates high and demand was weaker than expected. Oil prices declined about 6% in the quarter ended Dec. 31 from the prior three months, and down nearly 12% from a year-ago, as traders worried about global oil demand. The drop was partially offset by higher U.S. prices for natural gas, which were up about 30% from the prior quarter. The industry bellwether had posted $8.6 billion in earnings for the third quarter, and an adjusted profit of $9.96 billion in the year-ago fourth quarter. Exxon also said that lower margins in its chemicals business would lower earnings by about $400 million compared to the third quarter. The company will release final results on Jan. 31, the filing said. Sign up here. https://www.reuters.com/business/energy/exxon-mobil-expects-fourth-quarter-upstream-earnings-ease-2025-01-07/

2025-01-07 22:22

BUENOS AIRES, Jan 7 (Reuters) - Argentina's economy is seen expanding by 4.5% in 2025 while the country's inflation rate is estimated to end this year at 25.9%, according to the average forecast of analysts surveyed by the central bank's market expectations survey published on Tuesday. South America's second-biggest economy has suffered a prolonged slump, marked by one of the world's highest rates of creeping consumer prices and only recently showing signs clawing its way out of recession. Its inflation rate in particular has been in triple digit territory since early 2023, peaking near 300% last April but easing to 166% in November, according to official data. The bank's market expectations survey expects last December's monthly inflation rate to inch up to 2.7%, compared to the prior month, before slowing to 2.5% in January. The Argentine economy grew 3.9% in last year's third quarter, compared to the prior quarter, marking its first quarterly expansion since slipping into a technical recession at the end of 2023. The surveyed analysts expect economic growth around 1% through the first half of 2025, but speeding up to an annualized rate of 4.5% by the end of the year. The peso currency, meanwhile, is expected to finish 2025 at 1,205 pesos per U.S. dollar, while the government's primary fiscal surplus is seen at 11.2 trillion argentine pesos ($10.8 billion). ($1 = 1,035.0000 Argentine pesos) Sign up here. https://www.reuters.com/world/americas/argentina-economy-seen-growing-45-inflation-cooling-under-26-2025-01-07/

2025-01-07 22:08

SAO PAULO, Jan 7 (Reuters) - Brazilian planemaker Embraer (EMBR3.SA) , opens new tab delivered 75 aircraft in last year's fourth quarter, similar to the same period in 2023, the company said in a securities filing on Tuesday. The world's third-largest planemaker delivered 31 commercial jets and 44 executive jets during the three-month period ending in December. Embraer delivered a total of 206 aircraft last year, 14% higher than in 2023, and is expected to release full fourth-quarter earnings on February 27. Sign up here. https://www.reuters.com/business/aerospace-defense/brazils-embraer-delivered-75-planes-fourth-quarter-2025-01-07/