2024-03-05 05:14

Brent futures settle lower for fourth session in a row China vows to 'transform' economy, sets ambitious growth target Dollar declines after U.S. services industry growth slows API says US crude stocks up 423,000 barrels last week - sources NEW YORK, March 5 (Reuters) - Oil prices fell nearly 1% on Tuesday, pressured by skepticism around China achieving its economic growth target and investors' declining risk appetite despite support from a weaker U.S. dollar. Brent crude futures settled 76 cents, or 0.9%, lower at $82.04 a barrel, their fourth straight decline. U.S. West Texas Intermediate crude futures fell 59 cents, or 0.8%, to $78.15 a barrel. Both benchmarks had dropped by more than a dollar during the session. Weighing on prices, China, the world's biggest oil importer, set an economic growth target for 2024 of around 5%. While the target is similar to last year's goal and in line with analysts' expectations, the lack of big-ticket stimulus plans to prop up the country's struggling economy disappointed investors. "The growth target is OK, but the missing part is how they want to achieve that - what sort of stimulus is unclear for now," UBS analyst Giovanni Staunovo said. Risk-off sentiment in the broader financial markets also put pressure on prices, Staunovo added. Gold prices hit a record high on Tuesday on rising bets for a U.S. interest rate cut in June, while Wall Street fell on weakness in megacap stocks. Providing some support to oil prices, the U.S. dollar slipped on easing growth in the services sector. A cheaper greenback typically supports oil prices by lifting demand from investors holding other currencies. "Beyond that, the market is really just looking for the next headline here, with the upcoming storage reports in focus," Mizuho analyst Robert Yawger said. The first of this week's two U.S. inventory reports, from the American Petroleum Institute industry group, showed U.S. crude stocks rose by 423,00 barrels in the week ended March 1, market sources said, much smaller than the increase of 2.1 million barrels expected by analysts in a Reuters poll. Official data from the U.S. Energy Information Administration is due on Wednesday at 10:30 a.m. ET (1530 GMT). If the EIA reports a crude storage build, it will be the sixth straight week of rising oil stocks in the country. https://www.reuters.com/business/energy/oil-extends-fall-chinas-pledge-transform-economy-fails-impress-2024-03-05/

2024-03-05 05:10

MILAN, March 5 (Reuters) - Vitol-backed energy storage company VTTI is close to acquiring a majority stake in Italy's biggest liquefied natural gas import terminal from Exxon Mobil (XOM.N) , opens new tab and QatarEnergy, two sources with knowledge of the matter said on Monday. The deal, which sources previously said could value the entire terminal at about 800 million euros ($868 million), would give VTTI a role in the European LNG market at a time when flows of the liquefied gas to Italy are on the rise. Exxon put its 70.68% interest in the Adriatic LNG terminal up for sale last year, as part of a strategy to divest non-core assets. QatarEnergy owns a 22% stake. VTTI and QatarEnergy were not available for comment outside working hours in Europe and the Gulf. Exxon did not immediately respond to a request for comment. Once a deal is signed, Italian gas grid operator Snam, which currently owns a 7.3% in the terminal, will have 45 days to decide whether to exercise its right of first refusal to increase its stake in the project. The chief executive of state-controlled Snam said in January the group could increase its stake in the terminal to as much as 30% under an agreement with the current shareholders, boosting its influence over an asset considered strategic for the country. One of the sources said last-minute surprises to VTTI's purchase attempt could not be ruled out. The sources declined to be named because they were not authorised to speak publicly about the matter. Investment manager BlackRock (BLK.N) , opens new tab in December bowed out of exclusive talks to acquire the asset, reopening the possibility for VTTI to buy it. The Adriatic LNG terminal is located about 9 miles (15 km) off the Veneto coastline and has a regasification capacity of 9 billion cubic metres of natural gas per year. It is the only Italian LNG terminal that can receive so-called super large-scale LNG vessels with a capacity of up to 217,000 liquid cubic meters. ($1 = 0.9212 euros) https://www.reuters.com/business/energy/vitol-close-buying-exxon-qatarenergy-stakes-italy-lng-terminal-sources-say-2024-03-05/

2024-03-05 02:34

WASHINGTON/LONDON/SINGAPORE, March 5 (Reuters) - Bitcoin touched a record high on Tuesday, fueled by investors pouring money into U.S. spot exchange-traded crypto products and the prospect that global interest rates may fall. The world's largest cryptocurrency hit a high of $69,202, topping November 2021's all-time peak of $68,999.99. Investor interest has increased since the Securities and Exchange Commission approved 11 spot bitcoin ETFs in late January. It then reversed course and was recently down around 7% at $63,400. “The bitcoin all-time high marks a turning point for crypto," said Nathan McCauley, CEO and co-founder of crypto platform Anchorage Digital. "Traditional institutions were once sitting out; today, they are here in full force as the principal drivers of the crypto bull market." The cryptocurrency's latest meteoric rally may have more legs than in 2021 as more institutional investors commit long-term money that could help the token sustain its high levels this time, some experts believe. Bitcoin's nearly 160% ascent since October, of which 44% came in February alone, marks a sharp contrast to 2022, when the market was beaten into an 18-month long crypto winter, plagued by a string of high-profile corporate bankruptcies and scandal. Net flows into the 10 largest U.S. spot bitcoin funds reached $2.2 billion in the week ended March 1, with more than $2 billion of that going into BlackRock's iShares Bitcoin Trust (IBIT.O) , opens new tab, according to LSEG data. "Bitcoin has essentially been going straight up for several days,” said Steve Sosnick, chief strategist at Interactive Brokers. “It’s normal to see a little bit of profit taking, when any asset becomes so extended." RISK ON In addition to demand from a wider pool of investors, bitcoin, and crypto generally, has gotten a boost from the prospect of the Federal Reserve cutting U.S. interest rates, which often prompts investors to divert capital into assets that are higher yielding or more volatile. “One part of (bitcoin's rally) has to do with the generally positive sentiment on risk in general," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "You can see that in the all-time high in the S&P 500 and Nasdaq." Investors have lapped up crypto, mega-cap technology stocks and investment-grade corporate bonds in particular this year. Also on Tuesday, gold struck a record high, moving further above $2,100 per ounce in a rally sparked by growing bets for a U.S. interest rate cut in June. "(Cryptocurrencies) are now being used as an alternative to using gold when markets are looking to hedging against increased risks, higher interest rates," said Stuart Cole, chief economist at Equiti Capital. "So no surprise I think that when you see the gold price rallying, cryptos are doing the same.” Analysts say bitcoin also benefited ahead of April's so-called halving event - a process that takes place every four years in which the rate at which tokens are released is cut in half, along with the rewards given to miners. Supply of bitcoin is limited to 21 million, of which 19 million have already been mined. Despite its recent popularity, for many investors, bitcoin is simply too volatile and lacks enough real-world applications to be anything other than a speculative asset. Yet, in addition to the cocktail of flows of money into ETFs, the prospect of constrained bitcoin supply and an eventual decline in U.S. interest rates, some companies are adding crypto to their corporate coffers. In February, software firm MicroStrategy (MSTR.O) , opens new tab - a long time holder of bitcoin - said it had recently bought about 3,000 more bitcoins for $155 million, while social media platform Reddit also said in a regulatory filing it had bought small amounts of bitcoin and ether. On Monday, the number of dollar-pegged stablecoins issued by Tether crossed $100 billion for the first time. Tether issues a stablecoin that is designed to maintain a constant value of $1 and is widely used as a way of moving money in cryptocurrency without being exposed to price swings in other tokens such as bitcoin and ether. The price of ether , the world's second largest cryptocurrency was last trading at $3,486, well below its record high of $4,867 that it touched in November 2021. "Active trader positioning in bitcoin now appears fairly long. Valuations for ether and most other tokens remain below their highs from the previous crypto cycle," said Zach Pandl, head of research at Grayscale Investments. Crypto stocks were trading lower on Tuesday, with shares in Coinbase (COIN.O) , opens new tab down 5.4% and shares in crypto miners Riot Platforms (RIOT.O) , opens new tab and Marathon Digital (MARA.O) , opens new tab down 9.1% and 13.4%, respectively. https://www.reuters.com/technology/bitcoin-surges-past-68000-sight-record-high-2024-03-05/

2024-03-05 01:27

SYDNEY, March 5 (Reuters) - Australia's current account surplus rose sharply in the December quarter as iron ore and coal exports surged, a much-needed boost to the economy that lessens the risk of recession. Other data from the Australian Bureau of Statistics on Tuesday showed government spending also rose in the quarter, helping offset a steep drag from inventories. ABS data from on Tuesday showed the current account surplus jumped to A$11.8 billion ($7.68 billion) in the fourth quarter, from an upwardly revised A$1.3 billion the previous quarter. That compared to forecasts of a A$5.6 billion surplus. The ABS said net exports - driven by higher export prices and rising shipments of mining commodities - would add 0.6 percentage points to gross domestic product (GDP) in the fourth quarter, when analysts had thought they would add only 0.2 percentage points. Government spending also rose 0.4% in the quarter, which added 0.1 percentage point to GDP. The spending helped offset a sharp fall in mining inventories in the quarter, which looked to have shaved 1 percentage point off growth. "Coupled with solid capex data and a modest boost from public demand, GDP growth should be positive, albeit unspectacular in tomorrow's print," said Sean Langcake, head of macroeconomic forecasting for Oxford Economics Australia. Figures for fourth-quarter GDP are due on Wednesday. The median forecasts had pencilled in a subpar increase of 0.3%, which would see annual growth slow to 1.4%. The slowdown in the economy is a major reason the Reserve Bank of Australia (RBA) held interest rates steady at 4.35% in February, having raised them by 425 basis points since May 2022 to tame inflation. Markets are confident that the tightening is over, but futures pricing suggests any rate relief won't come until September. https://www.reuters.com/markets/australia-q4-current-account-surplus-surges-lessens-recession-risk-2024-03-05/

2024-03-05 00:43

March 4 (Reuters) - A blizzard that dumped up to 10 feet (3 meters) of snow on the California mountains in recent days has pushed snowpack levels above average for the first time this year, a welcome bounty before hot and dry weather inevitably returns. But experts warn much of the excess could be washed away by a warm rainstorm, and that snow levels measuring just a few points above average will fail to solve long-term problems. California, home to nearly 40 million people and a $50 billion agricultural industry, keeps a close watch on snowpack in the Sierra Nevada as a reserve for future water supplies. After suffering historic drought for much of this century, the state is on track for a second wet year in a row. The precipitation will help recharge aquifers and reservoirs, improve fish habitat and ease constraints on farmers. While the moisture may stave off fire conditions for now, rain also promotes vegetation growth that will fuel future wildfires. "It's a pretty stark contrast to where we were in January, when we had very little snow on the mountains," said Heather Cooley, director of research at the Pacific Institute, a think tank focused on water. "But there's still a long way to go to erase the overextraction that we saw during the dry years." With droughts becoming more frequent and intense as a result of climate change, policy-makers must press forward with projects such as water recycling, stormwater capture and floodplain restoration to ensure long-term supplies, Cooley said. "We can't be distracted by one year, even two good years," Cooley said. Statewide, snow levels were at 104% of average , opens new tab for March 4, according to the California Department of Water Resources, with northern region at 111% of normal and the south at 94%. But water managers place more importance on snowpack measurements as of April 1, the traditional peak, and the current level statewide is only 94% of the April 1 average. Moreover, the recent blizzard was an outlier from this year's warm, rainy weather. Another warm rainstorm would wash away much of the reserve and increase flood risk. "The last thing we need is a really warm, wet storm that rolls through and causes a lot of a lot of flooding and leads to all the snow melt all at once," said Justin Collins, meteorologist with the National Weather Service office in Reno. https://www.reuters.com/world/us/california-snowpack-now-above-average-will-it-last-2024-03-05/

2024-03-05 00:14

Tether stablecoin widely used to move cryptocurrencies $100 bln mark hit as bitcoin nears record high price US regulators have warned of stablecoin vulnerabilities LONDON, March 5 (Reuters) - The number of dollar-pegged stablecoins issued by Tether has crossed $100 billion, as the price of bitcoin surged on Tuesday towards a record high amid broader cryptocurrency demand. Tether issues a stablecoin which is designed to maintain a constant value of $1. It is widely used as a way of moving money in cryptocurrency without being exposed to price swings in other cryptocurrencies such as bitcoin and ether. At just over $100 billion in circulation, Tether is the third-biggest cryptocurrency, with around $27 billion worth of the tokens having been issued in the last year, according to market tracker CoinGecko. Around $122.5 billion of the token has changed hands in the last 24 hours, CoinGecko data shows. The Tether token's milestone, which it posted on its website late on Monday, comes as a surging bitcoin was just 5% off a record high. Bitcoin's price has surged 57% so far in 2024 and at $66,600 is not far from hitting a record high of $70,000. Tether, which is widely used as a way to purchase cryptocurrencies on exchanges, says it maintains its dollar peg by holding dollar-based reserves which match the volume of cryptocurrencies it has created. "Traders were willing to pay a premium on tether in order to get their orders through," said Justin D'Anethan, head of Asia-Pacific business development at digital assets market maker Keyrock. "Ironically, tether has always been FUDed (plagued by anxiety about their legitimacy) as they resisted disclosing their reserves and balance sheet for years," D'Anethan said. "Nonetheless, they’ve been around and stood the test of many volatility events, from 2017 up to now," D'Anethan added, noting that a majority of cryptocurrency pairs are denominated in Tether's stablecoin, which explains the demand for it when investors are bullish about cryptocurrencies. U.S. regulators have warned banks that stablecoin reserves could be subject to rapid outflows, for example if holders rushed to exchange such tokens back into traditional currency. Tether agreed to provide quarterly reports on its reserves for two years, as part of a 2021 settlement with the New York Attorney General's office. At the end of 2023, Tether's reserves held $63 billion of U.S. Treasuries, as well as $3.5 billion of precious metals, $2.8 billion of bitcoin, $3.8 billion of "other investments" and $4.8 billion of "secured loans", its latest report says. https://www.reuters.com/business/finance/stablecoin-tether-crosses-100-billion-tokens-circulation-2024-03-05/