2025-10-15 10:22
LONDON, Oct 15 (Reuters) - The pound firmed against a broadly weaker dollar on Wednesday, as Britain's finance minister Rachel Reeves confirmed tax rises and spending cuts are on the horizon, and market focus stays on the Bank of England's rate path. The pound was up 0.2% against the dollar at $1.3349 and 0.1% firmer versus the euro at 87.15 pence . Sign up here. Britain's currency was benefiting from broad pressure on the dollar, which softened as markets interpreted comments made by Federal Reserve Chair Jerome Powell on Tuesday as dovish, and risk sentiment improved. Reeves said on Wednesday she was looking at both tax rises and spending cuts for her budget on November 26, confirming widely held expectations given her pledges about balancing the country's books. Neil Wilson, UK investor strategist at Saxo Markets, said the pound's 2025 gains versus the dollar will be tougher to hold on to amid pressure coming from the UK's precarious fiscal position. "I'm not sure how many sellers are left in the short USD trade but I would tend to favour a pre-Budget retreat to the 1.30 support before we maybe see some fiscal tightening that is more than the market is expecting," he said, adding that this could push down yields and weigh on the pound into the year-end. The pound came off a peak of $1.3787 in July but remains up 6.8% versus the dollar in 2025. Markets are still digesting Tuesday's data that showed growth in average British earnings slowed slightly in the three months to August, suggesting the Bank of England may be able to continue cutting rates cautiously. But British inflation, which looks set to remain the highest in the Group of Seven advanced economies this year and next, has also been under the spotlight. The International Monetary Fund's chief economist said on Tuesday that the Bank of England needs to be "very cautious" about future rate cuts. Money markets are placing an 87% chance of no change at the BoE's next meeting on November 6. https://www.reuters.com/world/uk/sterling-strengthens-against-weaker-dollar-reeves-budget-plans-focus-2025-10-15/
2025-10-15 08:24
MUMBAI, Oct 15 (Reuters) - The Reserve Bank of India's liquidity infusion via a phased cash reserve ratio cut had less impact than expected as dollar sales and maturing FX forwards drained funds, poising short-term rates for a rise, four analysts said. In June, the central bank announced a phased 100-basis-points CRR cut from September to November to release about 2.5 trillion rupees ($28.3 billion), but analysts said the liquidity boost has proved far smaller than the expected 1.25 trillion rupees. Sign up here. "Although the CRR requirement in the banking system has declined, much of this liquidity has been absorbed due to the RBI's foreign exchange market interventions. As a result, the net liquidity injection has not been substantial," said Vikas Garg, head of fixed income at Invesco Mutual Fund. A cut in the CRR frees up funds that banks must otherwise park with the central bank, boosting liquidity and typically easing short-term rates. When that liquidity boost is muted, funding costs can stay high. Half of the planned CRR cut has taken effect, yet banking system liquidity briefly slipped into deficit last month. "We have held a view that the CRR cut was not even going to fully offset the FX forward book maturity drain from domestic banking liquidity, and that is playing out," said Dhiraj Nim, economist and FX strategist at ANZ. The RBI has $14.45 billion in forwards maturing in October–November after $5.85 billion rolled off in September, while rupee-supporting interventions since late August amid U.S. tariff and visa pressures have further drained liquidity, analysts said. On Wednesday, the RBI intervened heavily in the currency market to bolster the rupee, mirroring its February strategy. Post-February, the central bank had initiated significant liquidity infusions, and traders expect a similar approach. "Today's intervention has opened up doors for open market purchases, if not immediately, then maybe after the remaining CRR cut takes effect," said VRC Reddy, treasury head at Karur Vysya Bank. The daily average banking system liquidity surplus has dropped to 1.3 trillion rupees since September 6, when the first CRR cut took effect, compared to 2.8 trillion rupees between August 1 and September 5. "If a durable gap emerges, intervention through permanent liquidity tools cannot be ruled out, and if yields do rise sharply, the RBI can step in with OMOs," ANZ's Nim added. ($1 = 88.3520 Indian rupees) https://www.reuters.com/world/india/india-rbis-liquidity-boost-falters-amid-fx-market-intervention-analysts-say-2025-10-15/
2025-10-15 07:56
JAKARTA, Oct 15 (Reuters) - At least 10 people were killed and 18 injured after an oil tanker caught fire early on Wednesday as it was being repaired in Indonesia's Riau Islands province, according to local police. Fire broke out on the vessel, the MT Federal II, at around 4 a.m. on Wednesday (2100 GMT Tuesday) at a shipyard in the city of Batam, local police chief Zaenal Arifin said. Batam is around 20 kilometres (12.4 miles) away from Singapore by sea. Sign up here. MT Federal II was docked and undergoing repairs when it caught fire, Arifin said, adding that the cause was under investigation and the ship was not carrying oil. As of Wednesday afternoon, 10 people had died and 18 others were receiving treatment in the hospital, Arifin said, adding that all the victims were working to repair the vessel. "Some of them were heavily injured," Arifin said. He added that it was not clear who owns the vessel. In June, a vessel caught fire in Batam while being repaired, killing four people and injuring nine others. In that case, local police have named two people who are suspected of violating standard safety procedures. https://www.reuters.com/world/asia-pacific/indonesia-oil-tanker-catches-fire-killing-10-local-police-say-2025-10-15/
2025-10-15 07:41
OPEC head repeats call for investments in oil and gas Energy security key to climate action success - Saudi minister Saudi minister sees Europe struggling with transition challenge MOSCOW, Oct 15 (Reuters) - The head of OPEC and the producer group's most influential energy minister on Wednesday defended oil's role in providing secure energy supplies, pushing back against predictions of a faster transition to cleaner fuels. OPEC, which accounts for about a third of global oil supply, has consistently argued that oil demand will continue rising for decades, disagreeing with forecasts, such as from the International Energy Agency, that demand will peak soon. Sign up here. OPEC Secretary General Haitham Al Ghais said growing economies, rising populations and urbanisation led "to one clear signal that the world will need much more energy than it is consuming today". OPEC URGES MORE INVESTMENT IN OIL INDUSTRY Speaking at the Russian Energy Week conference in Moscow, he predicted oil would continue to account for about 30% of the global energy mix by 2050, and forecast 23% growth in primary energy demand by then. The Organization of the Petroleum Exporting Countries has been calling for more oil industry investment and said in a July report that the sector needed $18.2 trillion to be spent by 2050, compared with the $17.4 trillion it estimated last year. By contrast, the IEA said in 2021 there should be no investment in new oil and gas projects if the world was serious about meeting climate targets. In a September report, though, the IEA said investment was needed to offset supply losses. Speaking at the Moscow event, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said that energy security and economic prosperity were prerequisites for successful climate action. Without energy security and economic prosperity, "I don't think you'll be able to attend to sustainability and climate change," he said. He singled out Europe, saying it was struggling with the challenge of moving away from its established energy infrastructure towards uncertain alternatives. The OPEC+ producer group, comprising OPEC and allies including Russia, is pumping more barrels to regain market share after years of cuts to support prices. The extra supply is adding to fears of a glut and weighing on oil prices this year. https://www.reuters.com/business/energy/opec-secretary-general-says-oil-gas-industry-needs-more-investment-2025-10-15/
2025-10-15 07:40
At least four vessels divert to Zhoushan; one to Tianjin Zhoushan terminal connected to Sinopec refineries via pipeline SINGAPORE, Oct 15 (Reuters) - Trading firms have diverted at least five more crude oil tankers from a major port in eastern China after the U.S. imposed sanctions on an import terminal there on Friday, according to trading sources and shipping data. The U.S. sanctions have disrupted plans for the country's refiners to unload their cargoes at the port of Lanshan in the refining hub of Shandong province. Diverting the ships may also cause congestion at the alternative ports, particularly at Zhoushan, located further south off the coast of Zhejiang province, where several ships have been redirected, multiple traders who participate in the market said. Sign up here. The Rizhao Shihua Crude Oil Terminal in Lanshan, half-owned by Sinopec Kantons Holding (0934.HK) , opens new tab, a unit of Sinopec, also known as China Petroleum and Chemical (600028.SS) , opens new tab, was sanctioned on Thursday by the U.S. for receiving Iranian oil on board sanctioned vessels. One-fifth of Sinopec's crude oil imports pass through the Rizhao Shihua terminal, according to industry executives and analysts. In response, Chinese refiners began moving their ships away from the terminal. Unipec, the trading arm of Sinopec, Asia's largest refiner, over the weekend diverted the Very Large Crude Carrier New Vista, capable of carrying up to 2 million barrels of oil, to the ports of Ningbo and Zhoushan, where it is currently waiting to discharge its cargo. Unipec has also diverted the VLCC Xin Yue Yang, carrying 2 million barrels of Omani crude, to Zhoushan, for arrival on October 21, data from LSEG and Kpler showed. Zhoushan is an archipelago south of Shanghai and the terminal there is connected to Sinopec's eastern Chinese refineries via pipelines. Another two vessels, the VLCC Spherical and the Suezmax Fulger, which can carry up to 1 million barrels of oil, are also heading to Zhoushan, LSEG data showed. It's unclear if the Spherical, which is carrying 2 million barrels of Brazilian crude, will eventually discharge at Zhoushan as it is still waiting for instructions, a shipping source said. The Fulger, carrying about 1 million barrels of Egyptian Arco crude, is due to discharge at Zhoushan on October 19, the data showed. It was not immediately clear which companies chartered the Spherical and Fulger. The VLCC Habshan, chartered by CSSA, the shipping arm of French energy major TotalEnergies (TTEF.PA) , opens new tab, has switched its destination to the port of Tianjin, north of Rizhao, for arrival on October 26, LSEG data showed. The VLCC is carrying about 2 million barrels of Congolese Djeno crude, data from LSEG and Kpler showed. Tianjin is the site of Sinopec's major subsidiary refinery Tianjin Petrochemical as well as a base for an oil reserve Sinopec operates. TotalEnergies and Sinopec did not immediately respond to requests for comment. Sinopec Kantons said on Monday that it expects its business will be impacted by the sanctions. https://www.reuters.com/world/asia-pacific/tanker-diversions-sanctioned-chinese-terminal-may-cause-congestion-other-ports-2025-10-15/
2025-10-15 07:12
Oct 15 (Reuters) - Gold prices pierced the $4,200 mark for the first time to set a fresh record high on Wednesday, as renewed U.S.-China trade tensions exacerbated existing global uncertainties, alongside increased bets on further U.S. Federal Reserve rate cuts. Spot gold was up 1.4% at $4,199.99 per ounce by 0659 GMT, after hitting an all-time high of $4,200.11. U.S. gold futures for December delivery gained 1.3% to $4,218 per ounce. Sign up here. https://www.reuters.com/world/china/gold-tops-4200-first-time-us-china-trade-tensions-fed-cut-bets-2025-10-15/
