2025-09-18 07:01
Brent, WTI both down for a second day of decline Fed rate cut of a quarter point already priced in, analyst says Market clouded by rising supply, US demand concerns TOKYO/SINGAPORE, Sept 18 (Reuters) - Oil prices declined for a second session on Thursday, after the Federal Reserve cut interest rates as expected and traders focused on concerns about the U.S. economy and excess supplies. Brent crude futures fell 26 cents, or 0.38%, to $67.69 a barrel by 0656 GMT. U.S. West Texas Intermediate futures dropped 28 cents, or 0.44%, to $63.77. Sign up here. The Fed cut its policy rate by a quarter of a percentage point on Wednesday and indicated it will steadily lower borrowing costs over the rest of the year, responding to signs of weakness in the jobs market. Lower borrowing costs typically boost demand for oil and push prices higher. But the latest move and the hint of two more cuts this year was already priced in, said Priyanka Sachdeva, a senior market analyst at Phillip Nova. "What caught markets’ attention was not just the easing, but Powell’s downbeat message," she said, referring to Fed Chair Jerome Powell. "He stressed weakening job markets and inflation that remains sticky, making the cut look more like risk-management than a demand booster." The indication of more rate cuts coming from the Fed signals that policymakers assess risk to the economy from unemployment to be higher than from inflation, said Claudio Galimberti, chief economist and global director of market analysis at Rystad Energy, in a client note. Persistent oversupply and soft fuel demand in the U.S., the world's biggest oil consumer, also weighed on the market. U.S. crude oil stockpiles fell sharply last week as net imports dropped to a record low while exports jumped to a near two-year high, data from the Energy Information Administration showed on Wednesday. A rise in distillate stockpiles (USOILD=ECI) , opens new tab by 4 million barrels, however, against market expectations of a gain of 1 million barrels, raised worries about demand in the world's top oil consumer and pressured prices. https://www.reuters.com/business/energy/oil-edges-lower-amid-worries-over-us-economy-market-oversupply-2025-09-18/
2025-09-18 06:53
BEIJING, Sept 18 (Reuters) - China has called on its top hog producers to "take the lead" in cutting output, state-run Shanghai Securities News reported on Thursday, as the country battles a supply glut and sluggish consumer demand in its massive pork sector. At a high-level meeting on Tuesday, officials urged major companies - including Muyuan Foods (002714.SZ) , opens new tab and Wens Foodstuff (300498.SZ) , opens new tab - to reduce breeding sows, lower slaughter volumes, and keep hog weights around 120 kg, the report said. Sign up here. The meeting, jointly held by the National Development and Reform Commission and the Ministry of Agriculture and Rural Affairs' animal husbandry bureau, signals a stronger push by Beijing to rein in overcapacity and stabilise prices. Authorities also plan to tighten credit for hog production capacity expansion and cut subsidies that fuel pig output growth, the report said. The move comes as hog prices plunge to around 13 yuan ($1.83) per kg, down from 18.8 yuan a year ago, according to consultancy MySteel, pressuring margins across the industry. As of 0607 GMT, shares of Muyuan had slipped 2%, while Wens tumbled 3%. ($1 = 7.1102 Chinese yuan renminbi) https://www.reuters.com/markets/commodities/beijing-urges-top-hog-producers-cut-output-state-media-says-2025-09-18/
2025-09-18 06:49
Powell describes rate cut as risk-management measure SPDR Gold Trust holdings fall 0.44% on Wednesday Sept 18 (Reuters) - Gold prices extended losses on Thursday as the dollar firmed after the U.S. Federal Reserve cut interest rates by an expected quarter of a percentage point and adopted a measured rhetoric on further policy easing. Spot gold dipped 0.6% to $3,637.41 per ounce, as of 0636 GMT, after hitting a record high of $3,707.40 on Wednesday. Sign up here. U.S. gold futures for December delivery slipped 1.2% to $3,671.30. "The general message from the Fed was slightly to the hawkish side on interest rates, they didn't really enthusiastically endorse lower rates," said Marex analyst Edward Meir. "As a result, we saw the dollar firm up after the Fed meeting and the Treasury rates also moved higher... I think over the short term, we are probably a little bit overbought here and we could retrace a bit further maybe to the $3,600 mark." The dollar (.DXY) , opens new tab rose 0.4% to extend gains against its rivals, making gold more expensive for other currency holders. The Fed reduced rates by 25 basis points on Wednesday and indicated it will steadily lower borrowing costs for the rest of this year. Fed Chair Jerome Powell characterised the policy action as a risk-management cut in response to the weakening labour market and the central bank is in a "meeting-by-meeting situation" regarding the outlook for interest rates. Traders are currently pricing in a 90% chance of another 25-bp cut at the Fed's next meeting in October, compared with a 74.3% probability a day earlier, according to the CME Group's FedWatch tool. The Bank of England will announce its own policy decision later on Thursday, and is widely anticipated to keep rates at 4%. Meanwhile, SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.44% to 975.66 tonnes on Wednesday from 979.95 tonnes on Tuesday. Elsewhere, spot silver fell 0.6% to $41.40 per ounce, platinum gained 0.5% to $1,371.60 and palladium eased 0.2% to $1,152.24. https://www.reuters.com/world/india/gold-slips-dollar-firms-after-feds-message-interest-rate-path-2025-09-18/
2025-09-18 06:40
PARIS, Sept 18 (Reuters) - French utility EDF's nuclear production was reduced by 1.1 gigawatt early on Thursday, data from the company showed, as workers lowered power output at the Flamanville 1 reactor as part of a nationwide strike expected to hit several sectors. Nuclear production was only affected at a single power plant while hydropower output was unaffected, the data showed. Sign up here. France has 57 GW of total nuclear capacity, which produces about 70% of the country's annual electricity. https://www.reuters.com/sustainability/sustainable-finance-reporting/nationwide-french-strike-cuts-french-electricity-production-2025-09-18/
2025-09-18 06:33
MOSCOW, Sept 18 (Reuters) - Oil demand continues to grow in Asia, while China and some other countries have been replenishing their crude stockpiles, Alexander Dyukov, the head of Russian oil major Gazprom Neft (SIBN.MM) , opens new tab said on Thursday, TASS news agency reported. OPEC+ group agreed earlier this month to further raise oil production from October as its leader Saudi Arabia pushes to regain market share, while slowing the pace of increases compared with previous months due to an anticipated weakening of global demand. Sign up here. Dyukov, the head of Russia's top four oil producer, however, said demand was still robust. "Global oil consumption rises in the summer. In fact, in Asia, consumption continues to rise in the autumn. Furthermore, we see that a number of countries, including China, are currently replenishing their strategic oil reserves," Dyukov was quoted as saying. The International Energy Agency said last week global oil supplies would rise more rapidly than expected this year because of planned output increases by the OPEC+ group comprising the Organization of the Petroleum Exporting Countries and allies such as Russia, according to an agency report. However, OPEC's own report made no change to its relatively high forecasts for oil demand growth this year and next, saying the global economy was maintaining a solid growth trend. Dyukov also said it is expected that Gazprom Neft will increase both crude production and refining volumes this year, TASS reported, without providing figures. https://www.reuters.com/business/energy/russias-top-oil-executive-says-asian-oil-demand-still-growing-tass-reports-2025-09-18/
2025-09-18 06:33
Security ministry to gain vetting powers on investment projects Plan concerns critical projects and also golf, industrial parks Investor-reliant Vietnam has faced criticism over slow approvals HANOI, Sept 18 (Reuters) - Investors in Vietnam in energy, telecommunications, construction and other sectors, will need police approval for projects, under a major reform meant to boost security and ensure the "absolute leadership" of the ruling Communist Party, a draft decree says. The proposed text from the public security ministry, which is still subject to changes, could increase compliance costs for business in the Southeast Asian nation while significantly expanding the powers of the security apparatus. Sign up here. "In socio-economic development, security must be ensured, without sacrificing national interests for economic benefits," said the proposal published on the security ministry's website, which other ministries can comment on until September 22. It could then be signed into law by the prime minister provided no major changes are requested. Export-reliant Vietnam is highly dependent on foreign investors and currently conducts limited security checks on most development projects, giving the police largely a consulting role. It is unclear how extensively the new rules would be applied, if approved, and whether they would concern only future projects. In a separate explanatory document, the ministry said the new provisions were necessary to deal with a more complex international situation dominated by strategic competition meant "to increase the sphere of influence of strong countries," without specifying which nations. The ministry did not reply to a request for comment. In Communist-run Vietnam, police already play a crucial role beyond security, encompassing a major influence on legislation and growing interests in the economy. The party leader and Vietnam's most powerful man, To Lam, headed the security ministry before moving to the top job. Separately, the army oversees a wide array of businesses, including banks and the largest telecom operator Viettel. The planned reform would give the security ministry the power to vet development projects on security grounds for a broad variety of critical infrastructures like nuclear power plants, telecommunication and satellite services with foreign involvement, ports and oilfields. U.S. companies SpaceX and Amazon are planning to launch their satellite communication services in Vietnam. GOLF PROJECTS TO BE VETTED BY POLICE Seemingly less critical operations would also need the ministry's approval, including industrial parks and golf courses, according to the draft document. Vietnam plans to expand its golf industry from nearly 100 courses at present, according to Vietnam Golf Association. The family business of U.S. President Donald Trump is partnering with a local developer on a large golf resort to be built close to Hanoi. The country is also home to huge industrial operations of multiple multinationals, including South Korea's Samsung Electronics (005930.KS) , opens new tab, Japan's Honda (7267.T) , opens new tab and U.S. chipmaker Intel (INTC.O) , opens new tab, which are attracted by low labour costs but have at times voiced concerns over slow project approvals. The ministry, supported by national and local police forces, will establish whether yet-to-be-defined security conditions are met for projects to go ahead, including those involving foreign investors, according to the draft proposal. A Vietnam-based legal consultant, who declined to be named to speak more freely, said the decree would effectively give the police the power to veto projects, and noted some companies had expressed concerns about the draft document, fearing it could increase compliance costs and delay projects. Other corporate, diplomatic and legal representatives contacted by Reuters about the draft decree did not comment, with some declining to discuss the matter because of the sensitive nature of the issue or due to lack of clarity around the proposed rule. Under the proposal, the security ministry will also develop a mechanism to supervise and inspect foreign aid projects and will "comprehensively appraise the impacts on security, social order and safety on foreign-invested projects, implemented in many key localities and areas, where many labourers and workers live," the document says. A similar decree was implemented in 2019 to guarantee defence priorities were taken into account for economic projects, but gave the army less explicit powers and was more limited in its scope. https://www.reuters.com/world/asia-pacific/investors-vietnam-face-strict-police-screening-under-planned-reform-2025-09-18/
