2024-04-23 11:42

WARSAW, April 23 (Reuters) - Polish oil refiner Orlen (PKN.WA) New Tab, opens new tab has cancelled contracts to buy Venezuelan oil and refined products after losing more than $400 million on prepayments for deliveries it never received, a company manager said on Tuesday. Oil and tanker charter contracts put in place by the Swiss based unit Orlen Trading Switzerland (OTS) were scrapped as tankers weren't loading and a U.S. sanctions window was about to close, the person said. The U.S. Treasury Department in October issued a licence lifting sanctions on Venezuela's oil production and exports through mid-April, prompting trading houses to buy cargoes from little known intermediaries registered as customers of state company PDVSA. The loading of six tankers, including three Very Large Crude Carriers (VLCC), initially scheduled for December and January, was not completed in March. With daily demurrage costs of $600,000 and the April 18 sanctions window closure date nearing, Orlen decided to cancel the contracts, the manager said. In late February, when new management of OTC was appointed following a change at the helm of its parent, the demurrage bill for the six tankers amounted to $30 million, the person said. OTC is now being audited. Prosecutors are probing former management activities linked to the oversight of the trading unit. In two other probes, prosecutors are examining whether the company under the helm of former CEO Daniel Obajtek artificially lowered prices ahead of a 2023 election and sold assets at below fair value. Orlen wrote down 1.6 billion zloty ($394 million) from the value of OTS this month saying it had prepaid purchases of oil and refining products but did not receive the products by the agreed deadline. It assessed the reimbursement of the prepayments as unlikely. The largest beneficiary, a Dubai based intermediary run by a Chinese citizen, received over $200 million in prepayments, the manager said, without providing further detail. Contrary to standards, the advance payments were paid without collateral to entities with which Orlen had never cooperated before, the company said on April 11. OTS was set up in Zug, Switzerland, in 2022 ahead of the European Union ban on imports of Russian oil products which came into force in early 2023. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/polands-orlen-scraps-deals-buy-venezuelan-oil-after-heavy-losses-source-2024-04-23/

2024-04-23 11:32

STRASBOURG, April 23 (Reuters) - The European Parliament voted on Tuesday to back a year-long extension to tariff-free trade for Ukrainian farm produce, while introducing new curbs on the level of imports to assuage protesting EU farmers. The parliament voted by 428 votes to 131 with 44 abstentions in favour of the extension, which will now apply from June 6 after clearing this final procedural hurdle. WHY IT'S IMPORTANT The tariff liberalisation, dating from June 2022, was designed to help keep Ukraine's economy afloat as it battles Russia's invasion. The curbs means Ukraine will earn 331 million euros ($353.2 million) less from exports to the EU than in 2023, compared with 240 million in an original European Commission proposal, according to EU diplomats. CONTEXT What might have been a routine roll-over, initially proposed in January, turned into a drawn-out debate on the new curbs as protests by EU farmers mounted, notably in Poland The initial European Commission proposal stipulated that tariffs should kick in on poultry, eggs and sugar if imports exceeded the average levels of 2022 and 2023. EU lawmakers added oats, groats, maize and honey to the list, while France and Poland pushed for the reference period to calculate the average to include 2021, the year before Russia's invasion when Ukraine farm produce was lower because of tariffs. Eventually, a compromise was found to include just the second half of 2021. This will be the last roll-over. The EU and Ukraine aim to put in a longer term arrangement from June 2025. ($1 = 0.9370 euros) Coming soon: Get the latest news and expert analysis about the state of the global economy with Reuters Econ World. Sign up here. https://www.reuters.com/world/europe/eu-lawmakers-back-ukraine-food-import-extension-with-curbs-2024-04-23/

2024-04-23 11:28

MUMBAI, April 23 (Reuters) - Extreme weather events along with prolonged geopolitical tensions could pose a risk to India's inflation trajectory, even as growth in the South Asian nation exhibits an uptrend, the Reserve Bank of India (RBI) said in its latest bulletin on Tuesday. "...food price pressures have been interrupting the ongoing disinflation process even as shocks from adverse climate events and geopolitical tensions add uncertainties to the outlook," the RBI staff said in a 'State of the Economy' article. India is likely to experience more heat-wave days than normal between April and June, the country's weather office said earlier this month. While alignment with the inflation target is gradually occurring, incoming data will provide greater clarity and confidence on the disinflation path, the RBI said. India's retail inflation (INCPIY=ECI) New Tab, opens new tab eased to a five-month low of 4.85% in March from 5.09% in the previous month. The central bank, which has kept policy rates unchanged for the last seven meetings, seeks to ensure inflation aligns durably and sustainably to the 4% target. Retail inflation is seen averaging at 4.5% in 2024-25, the central bank estimates. Meanwhile, conditions are shaping up for an extension of a trend upshift in real gross domestic product growth in India, backed by strong investment demand and upbeat business and consumer sentiments, the RBI said. So far, "capital deepening" is powering the step-up in the India's growth trajectory, led by sustained public investment, and supported by productivity improvements, it said. India's economy grew at a quicker-than-expected 8.4% in October-December, its fastest pace in one-and-a-half years. Comfortable foreign exchange reserves and a return of capital inflows are expected to contribute to stability in India's foreign exchange market, according to a separate article in the bulletin. Coming soon: Get the latest news and expert analysis about the state of the global economy with Reuters Econ World. Sign up here. https://www.reuters.com/world/india/indias-inflation-risk-extreme-weather-geopolitical-issues-cenbank-says-2024-04-23/

2024-04-23 11:25

April 23 (Reuters) - Halliburton (HAL.N) New Tab, opens new tab beat first-quarter profit estimates on Tuesday as higher drilling demand from international markets helped the oilfield services firm counter a slowdown in North America. Oil and gas producers are looking to secure new international and offshore inventories, boosting oilfield equipment and services demand and helping companies like Halliburton. International rig count, an indicator of future production, stood at 965 on an average at the end of March, 5.4% higher than the previous year, according to Baker Hughes data. Revenue from Halliburton's international segment rose 12%, to $3.3 billion in the January to March quarter from last year, aided by 21% growth in Latin America. The strength in its international segment contrasts sharply with its North America revenue, which declined 8% from a year ago to $2.5 billion, primarily driven by lower pressure pumping services on U.S. land as well as decreased wireline activity throughout the region. The Houston, Texas-based company posted an adjusted profit of 76 cents per share for the three months ended March 31, topping analysts' average estimate of 74 cents per share, according to LSEG data. Its total quarterly revenue of $5.80 billion also beat estimates of $5.67 billion. Bigger rival SLB (SLB.N) New Tab, opens new tab reported a 14% rise in first-quarter profit on Friday, in line with analysts' estimates as higher oil and gas drilling demand in the Middle East and Africa helped offset weakness in North America. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/halliburton-beats-q1-profit-growing-international-strength-2024-04-23/

2024-04-23 10:42

MUMBAI, April 23 (Reuters) - The Reserve Bank of India (RBI) bought $8.56 billion on a net basis in the spot foreign exchange market in February, data released on Tuesday as part of the central bank's monthly bulletin showed. The RBI did not sell any dollars in the spot market in February. In January, the central bank had bought a net of $1.95 billion in the spot market. The Indian rupee appreciated by 0.2% against the dollar in February. The unit traded in a range of 82.8225 to 83.1150. The RBI's net outstanding forward purchase stood at $9.69 billion as of end-February, compared with a net purchase of $9.97 billion at the end of the previous month, the data showed. The central bank intervenes in the spot and forwards market to curb exchange rate volatility. The domestic currency settled at 83.3425 on Tuesday, after hitting a record low of 83.5750 last week. Coming soon: Get the latest news and expert analysis about the state of the global economy with Reuters Econ World. Sign up here. https://www.reuters.com/world/india/india-cenbank-bought-net-856-bln-spot-forex-market-february-bulletin-shows-2024-04-23/

2024-04-23 10:24

LONDON, April 23 (Reuters) - Data showing British businesses recorded their fastest growth in activity in nearly a year helped the pound steady against the dollar on Tuesday, after touching its lowest in five months the day before, but it remained under pressure against the euro. The pound rose as much as 0.3% against the dollar after the data was released, but failed to hold those gains and was last just in positive territory. Still, after three successive days of declines to as low as $1.2299, its weakest since November, this at least marked a stabilisation. The S&P Global UK Composite Purchasing Managers' Index for the services and manufacturing sectors jumped to an 11-month high of 54.0 in April from March's 52.8, above all forecasts in a Reuters poll of economists. The gain was led by an big rise in services. European data was also better than expected and the common currency at one point rose 0.2% against the pound to 86.43 pence, matching its previous day's three-month high, though these moves also failed to hold. Euro/sterling has traded in a tight range for months, but broke out on Friday when the euro climbed 0.65% after Bank of England Deputy Governor Dave Ramsden said the risk of British inflation getting stuck too high had receded and it might prove weaker than the BoE's most recent forecasts. Also speaking last week, Governor Andrew Bailey said next month's inflation numbers were on track for a sharp drop towards the central bank's 2% target. Huw Pill, the central bank's chief economist, speaks later on Tuesday. "(Ramsden's comments) indicated that the leadership at the Bank of England is turning more dovish, that increases the risk of them cutting rates sooner, maybe as soon as the June MPC meeting," said Lee Harman senior currency analyst at MUFG. "That more dovish outlook is starting to have an impact on the pound." Expectations that the Bank of England would cut rates later than the Federal Reserve and ECB had supported the British currency earlier in the year. But recent stronger U.S. inflation data means markets don't see U.S. rate cuts until much later in the year. Coming soon: Get the latest news and expert analysis about the state of the global economy with Reuters Econ World. Sign up here. https://www.reuters.com/markets/currencies/sterling-steadies-after-strong-british-activity-data-2024-04-23/