2024-10-08 06:23

Fed's September meeting minutes due on Wednesday Hezbollah fired rockets at Israel's city, Haifa Silver down nearly 1% Oct 8 (Reuters) - Gold prices were little changed on Tuesday as market participants awaited the minutes of the latest Federal Reserve policy meeting and economic data for insights on the U.S. interest rate path. Spot gold was flat at $2,639.45 per ounce by 0530 GMT. U.S. gold futures lost 0.2% to $2,661.80. Gold has lost some momentum due to the rising dollar and bond yields, but downside risks may be limited by global conflicts that favour safe-haven assets, said Tim Waterer, chief market analyst at KCM Trade. Hezbollah fired rockets at Israel's third-largest city, Haifa, while Israel appeared ready to expand its offensive into Lebanon, marking one year since the Hamas attack that ignited the Gaza war. Bullion is considered a safe investment during times of political uncertainty. Investors are focused on the minutes of the Fed's latest policy meeting, due on Wednesday, followed by the U.S. Consumer Price Index on Thursday and the Producer Price Index data on Friday. Several Fed officials are also lined up to speak throughout the week. "Looking ahead, if we see any upside surprises in the U.S. CPI numbers this week, this could further boost the dollar and pressure gold," Waterer added. According to the CME FedWatch tool, markets are no longer pricing in a 50-basis-point reduction at the Fed's November meeting after last week's strong jobs report. They now see an 87% chance for a 25-bp cut. Meanwhile, St. Louis Fed President Alberto Musalem expressed support for more rate cuts, emphasizing that the economy's performance will guide policy. Spot silver lost nearly 1% to 31.40 per ounce. Platinum was down 0.7% to $964.95 and palladium fell 2.3% to $1,001. Elsewhere, China is "fully confident" of achieving its full-year economic and social development targets, with some funds from 2025's budget being brought forward to support projects, chairman of the country's economic planner said Tuesday. Sign up here. https://www.reuters.com/markets/commodities/gold-eases-dollar-firms-focus-fed-cues-us-data-2024-10-08/

2024-10-08 06:11

HOUSTON, Oct 8 (Reuters) - Oil prices slid on Tuesday, settling down more than 4% on news of a possible ceasefire between Hezbollah and Israel, although prices found some support on fears of a potential attack on Iranian oil infrastructure. Brent crude futures settled down $3.75, or 4.63%, at $77.18 a barrel. U.S. West Texas Intermediate futures finished down $3.57, or 4.63%, at $73.57 a barrel. At their session lows, both were down more than $4 a barrel. "We continue to be very headline dependent," said John Kilduff, partner with Again Capital LLC. "This morning, we heard about the potential ceasefire. Then we got indications targets are still being dialed in and energy targets are in the mix." "That Hezbollah is open to a ceasefire, is the kind of headline that people jump on," said Phil Flynn, senior analyst at Price Futures Group. "There should be a lot of volatility up and down on this conflict." On Monday, Brent rose above $80 per barrel for the first time since August after more than a 3% daily gain. That followed the largest weekly gain in over a year, roughly 8%, in the week to Friday on rising concerns of a spreading war in the Middle East. Hezbollah left the door open to a negotiated ceasefire after Israeli forces raised the stakes in the conflict with its Iran-backed enemy by making new incursions in the south of Lebanon. Israeli defense minister Yoav Gallant said it appeared the replacement for slain Hezbollah leader Sayyed Hassan Nasrallah had also been eliminated. Late on Tuesday, Israel's military warned people away from specific buildings in the southern suburbs of Beirut. The oil price rally began after Iran launched a missile barrage at Israel on Oct. 1. Israel has sworn to retaliate and said it was weighing its options. Some analysts said an attack on Iranian oil infrastructure was unlikely and warned oil prices could face considerable downward pressure if Israel focuses on any other target. In the U.S., Hurricane Milton intensified into a Category 5 storm on its way to Florida after forcing at least one oil and gas platform in the Gulf of Mexico to shut on Monday. U.S. crude oil stocks rose by nearly 11 million barrels last week, while fuel stockpiles fell, according to market sources citing American Petroleum Institute figures on Tuesday. Crude stocks rose by 10.96 million barrels in the week ended Oct. 4, the sources said on condition of anonymity. Gasoline inventories fell by 557,000 barrels, and distillate stocks fell by 2.60 million barrels, they said. Sign up here. https://www.reuters.com/business/energy/oil-edges-lower-after-rallying-highest-over-month-middle-east-war-risk-2024-10-08/

2024-10-08 06:05

LITTLETON, Colorado, Oct 8 (Reuters) - Power producers in the United States have lifted natural gas-fired generation to new highs over the first nine months of 2024, sustaining the country's position as the leading driver of global natural gas consumption. Natural gas's share in the U.S. generation system also climbed to new highs this year. Gas supplied a record 46% of total power since June, LSEG data shows, as power firms boosted output from all sources to meet rising power demand. The fast growth pace of gas use in the U.S. undermines the country's credibility as a potential leader in energy transition efforts, and is at odds with stated ambitions to lower fossil fuel use in power generation by 2030. Yet most key power systems within the U.S. - which is also the world's largest natural gas producer - show no signs of reducing gas use over the near term, and look more likely to continue lifting gas-fired output for years to come. This widening discrepancy between international climate pledges and national-level power generation trends leaves the U.S. open to fresh criticism from climate advocates, who may attempt to ratchet up pressure on the U.S. to curb gas use. LEADING THE CHARGE Through the first nine months of the year, total power generation from gas-fired power plants in the United States was 55.6 million megawatt hours (MWh), according to LSEG. That total was up nearly 5% from the same months in 2023, and the highest since at least 2021. And that growth pace was well above several other major gas-consuming nations, including China, South Korea, Japan, Iran, Italy and Russia, data from energy think tank Ember shows. Indeed, of the 10 largest gas-fired electricity producers, only Mexico, Qatar and Thailand grew gas consumption faster than the U.S. over the first half of 2024, Ember data shows. But as those three nations generate less than a quarter of the gas-fired electricity generated by the U.S., the United States' share of global gas-powered electricity hit a new high of 30% so far in 2024, from less than 29% in 2023. HOME GROWN The main drivers of U.S. gas demand growth are a handful of power systems that are taking steps to reduce output from coal-fired plants in order the cut pollution, but are struggling to meet rising power demand without gas-fired output. The PJM Interconnection system - spanning Pennsylvania, New Jersey, North Carolina and large parts of the Midwest - has the largest total share of U.S. gas-fired output, at 21%. The Midcontinent Independent System Operation (ISO), with a service area stretching from Arkansas to North Dakota, accounts for around 13% of national gas-fired power output. The Electric Reliability Council of Texas (ERCOT) power system accounts for another 12%, while the Florida power system accounts for around 11%. Of those systems, Florida posted the steepest year-to-date rise in gas use, of 13.4% from the same months in 2023. The Midcontinent and PJM systems grew gas use by around 3%, while ERCOT increased gas-fired generation by 1%, LSEG data shows. The main stand-out among large gas-fired power systems was the SERC Reliability Corporation, which serves customers across the Carolinas, Tennessee, Georgia, Missouri and other states. SERC gas-fired generation was 2.5% down from the same months in 2023, but was offset by higher output from system nuclear plants and a 5% climb in coal-fired output. Gas remains the single largest power source within the SERC system, however, and so looks set to remain an integral power fuel in that system for the foreseeable future. And gas looks set to become of increasing importance in other major U.S. power systems as well, especially in areas where outdated coal-fired generation is being phased out and needs to be replaced by other on-demand power plants. And as long as that coal phase-out process continues, total U.S. gas-fired generation looks set to keep climbing, regardless of any country-level aims to curb power output from fossil fuels. Only once U.S. generation capacity of clean power, including renewables, is substantially higher, and is backed by a hefty battery storage network, will U.S. power producers be able to make substantial cuts to gas-based power. Sign up here. https://www.reuters.com/markets/commodities/us-drives-global-natural-gas-demand-new-highs-2024-maguire-2024-10-08/

2024-10-08 06:03

NEW DELHI, Oct 8 (Reuters) - India should double the customs duty on steel to check imports as the country faces dumping of steel and predatory pricing, ArcelorMittal Nippon Steel India's CEO Dilip Oommen said on Tuesday. India's finished steel imports from China hit a seven-year high during the first five months of the 2024/25 financial year. "The basic customs duty should be doubled to 15% from 7.5% currently," Oommen said at the FT Live Energy Transition Summit India. Sign up here. https://www.reuters.com/markets/commodities/india-facing-dumping-steel-predatory-pricing-says-ceo-arcelormittals-india-jv-2024-10-08/

2024-10-08 05:52

SEOUL, Oct 8 (Reuters) - South Korean President Yoon Suk Yeol said his country has agreed with Singapore to enter into a strategic partnership next year, the 50th anniversary of the two nations setting up diplomatic relations. Yoon, who is visiting Singapore for a summit with Singapore's Prime Minister Lawrence Wong, said in a televised address that the two nations will deepen cooperation in fields such as artificial intelligence and startups under the strategic partnership. The two countries also signed an extradition treaty, Yoon said, adding it will help them to step up judicial cooperation. In addition, South Korea, the world's No.3 importer of liquefied natural gas (LNG), and Singapore, an LNG hub, signed a memorandum of understanding for cooperation in LNG supplies, which will contribute to the stability of the international supply chain, Yoon said. The cooperation could include LNG swaps, joint purchases, and cooperation in response to any LNG supply chain crises, the Yonhap news agency reported. Yoon visited the Philippines earlier this week and after wrapping up his trip to Singapore on Wednesday will head to Laos, to attend a regional summit of leaders of the Association of Southeast Asian Nations and several other Asian countries. In a written interview with The Straits Times newspaper, Yoon was quoted as saying that Seoul will actively participate in joint military exercises with ASEAN and step up defence industry cooperation. South Korea will also work to jointly address emerging threats such as cyber and transnational crime, he said. Sign up here. https://www.reuters.com/world/asia-pacific/president-yoon-says-south-korea-form-strategic-partnership-with-singapore-next-2024-10-08/

2024-10-08 05:47

MUMBAI, Oct 8 (Reuters) - The Indian rupee was little changed on Tuesday, as dollar sales from state-run banks supported the currency even as most of its Asian peers declined amid the rise in U.S. bond yields and oil prices. The rupee was at 83.9475 against the U.S. dollar as of 11:00 a.m. IST, a tad stronger from its close at 83.9775 in the previous session. State-run banks sold dollars "heavily" in early trading, most likely on behalf of the Reserve Bank of India (RBI), to support the currency, three traders said. The rupee has hovered close to the 84 handle for the last four trading sessions but has not fallen below it largely on account of interventions by the central bank. On the day, the rupee was also cushioned by diminished appetite to short sell the currency after the RBI on Monday informally instructed banks to avoid large bets against it, traders said. Most Asian currencies were lower by 0.1% to 0.3%, while the dollar index was steady at 102.4. U.S. bond yields rose on Monday, with the 10-year Treasury yield climbing to a two-month peak of 4.03%, as bets of aggressive rate cuts by the Federal Reserve have diminished after upbeat jobs data. Interest rate futures are now pricing in 50 basis points of Fed rate cuts over the remainder of 2024, down from around 72 basis points last week. Brent crude oil prices climbed to an over one-month peak of $81.16 per barrel on fears that the Middle East could be on the brink of a region-wide war. Brent oil prices have risen 11% over October so far. "There were some signs that Asian central banks are turning more concerned about FX volatility," MUFG Bank said in a note, pointing to market interventions by the Indonesian and Indian central banks. Sign up here. https://www.reuters.com/markets/currencies/rupee-sidesteps-dip-asia-fx-supported-by-state-run-banks-dollar-sales-2024-10-08/