2024-01-12 05:00

HOUSTON, Jan 11 (Reuters) - Both crude distillation units (CDUs) and two vacuum distillation units (VDUs) shut down on Thursday at TotalEnergies (TTEF.PA) 238,000 barrel-per-day (bpd) Port Arthur, Texas refinery, sources familiar with plant operations said. The units, which convert crude oil into feedstock for all other units at the refinery, were shut following a malfunction on the gasoline-producing fluidic catalytic cracker (FCC), the sources said. TotalEnergies spokesperson Marie Maitre declined to comment on refinery operations. The 150,000-bpd ACU-1 CDU and 40,000-bpd ACU-2, as well as the 51,000-bpd VDU-1 and 60,000-bpd VDU-2, were shut after a malfunction on the 76,000-bpd FCC-2, the sources said. In a notice filed with the Texas Commission on Environmental Quality (TCEQ) on Thursday, the company said the malfunction began Wednesday afternoon and continued till Thursday morning, during which steam use and production were reduced. TotalEnergies also told the state pollution regulator FCC-2 had returned to normal operation. FCC-2 has struggled to reach full production since completing a three-month overhaul in late November, sources have said. ACU-2 and VDU-1 remained shut into mid-December as FCC-2 was raising its production level. The FCC-2 overhaul included replacement of the 1.3-million-pound (589.7 metric-ton) reactor on the unit. https://www.reuters.com/markets/commodities/all-crude-units-shut-totalenergies-texas-refinery-sources-2024-01-12/

2024-01-12 04:57

Gold hits one-week high U.S. producer prices unexpectedly fall in December U.S. and Britain carry out strikes against Houthis in Yemen Jan 12 (Reuters) - Gold prices scaled a one-week peak on Friday as an escalation in the Middle East conflict fuelled safe-haven buying, while softer U.S. producer price inflation boosted bets that the Federal Reserve might cut interest rates sooner. Spot gold was up 1% at $2,048.21 per ounce at 2:24 p.m. ET (1924 GMT), after climbing as much as 1.7% earlier in the session. Bullion was mostly flat on the week, but extended its run above the $2,000 level to nearly a month. U.S. gold futures settled 1.6% higher at $2,051.60. U.S. and Britain launched air strikes across Yemen in retaliation against Houthi forces for attacks on Red Sea shipping that the Iran-backed fighters cast as a response to the war in Gaza. Iran condemned the attacks, warning that it will fuel "insecurity and instability" in the region. A rise in geopolitical risk is pushing gold prices up, and at the same time, the U.S. central bank may be getting ready to start moderating its restrictive monetary policy, said Bart Melek, head of commodity strategies at TD Securities. The U.S. producer price index (PPI) data came in negative, which was also a significant catalyst for prices, Melek added. U.S. producer prices unexpectedly fell in December amid declining costs for goods such as diesel fuel and food, suggesting inflation would continue to subside. However, data on Thursday showed U.S. consumer prices rose more than expected in December. Traders see an 80% probability of an interest rate cut in March, according to the CME Fedwatch tool, compared with about a 70% chance seen before the PPI report. Considered a safe haven, gold tends to gain during times of uncertainty, while lower interest rates also lift the appeal of the zero-yield asset. Spot silver rose 1.9% to $23.20 per ounce. Platinum lost 0.5% to $910.49, down for the second straight week. Palladium was down 1.3% to $975.51, falling for the third consecutive week. https://www.reuters.com/markets/commodities/gold-gains-dollar-dip-safe-haven-appeal-2024-01-12/

2024-01-12 04:56

2023 crude imports 11.28 mln bpd, +11% on yr 2023 natgas imports 2nd highest on record; Dec imports at record 2023 refined fuel exports +16.7% on yr Jan 12 (Reuters) - China's annual crude oil imports hit an all-time high in 2023, customs data showed on Friday, as fuel demand recovered from a pandemic-induced slump despite economic headwinds. China imported 11% more crude oil last year versus 2022 at 563.99 million metric tons, equivalent to 11.28 million barrels per day (bpd), up from a previous record of 10.81 million bpd in 2020, data from the General Administration of Customs showed. Imports in December totalled 48.36 million tons, or 11.39 million bpd, up from November's 10.33 million bpd. Domestic passenger transport levels increased steadily through 2023 following the country's abrupt exit from pandemic restrictions in November 2022. China's highway traffic for 2023 jumped 43.6% from the previous year in passenger kilometres for the January to November period, according to Ministry of Transport data. Domestic air traffic also recovered rapidly, rising 27% on the previous year to reach a new record in December, according to data from aviation analytics firm OAG. International travel saw a more muted recovery, with December flight volumes still down 39% on the same month in 2019, shortly before borders were closed. Domestic diesel demand was weaker amid an ongoing slowdown in the construction sector and an uncertain outlook for the manufacturing sector. China's oil demand growth has been forecast by analysts to slow to around 4% in the first half of 2024 due to the country's property market woes, although moderating growth in domestic output will continue to support import levels. The primary drivers for oil imports in 2024 are expected to be aviation demand for kerosene and demand in the petrochemical sector for high-end chemical products used in the manufacture of key goods such as solar panels and electric vehicles. China's demand for naphtha, a key feedstock for petrochemicals, is forecast by the International Energy Agency to grow 13.3% through this year. Friday's data also showed China's natural gas imports, comprising both liquefied natural gas (LNG) and piped gas, rose 9.9% to reach 119.97 million tons in 2023. That's the second highest on record after 2021, when China imported 121.4 million tons. Imports in December at 12.65 million tons hit a record monthly high, up from November's 10.95 million tons, to meet strong heating demand amid colder-than-usual weather. Growing pipeline gas supplies from Russia also helped bolster the imports. China last year exported a total of 62.69 million metric tons of refined fuel products, which include diesel, aviation fuel, gasoline and marine fuel, up 16.7% on the previous year, the data also showed. December exports at 4.64 million tons were the lowest since last June as companies ran short of export quotas. (metric ton = 7.3 barrels for crude oil conversion) For more details, click on https://www.reuters.com/business/energy/chinas-2023-crude-oil-imports-hit-record-fuel-demand-recovers-2024-01-12/

2024-01-12 04:47

Jan 12 (Reuters) - Citi Research on Friday lowered its Brent price forecasts for this year and 2025, citing oversupply concerns but expects prices holding above $70 per barrel in 2024 as OPEC+ keeps global oil markets "finely balanced". Citi cut its 2024 Brent price forecast by $1 to $74 per barrel and slashed 2025 forecast by $10 to $60 per barrel, but said in a note that recent activity in the Red Sea causing further tension in the Middle East could see near-term upside to the risk premium. The United States and Britain launched strikes from the air and sea against Houthi military targets in Yemen in response to the movement's attacks on ships in the Red Sea, a dramatic regional widening of the Israel-Hamas war in Gaza. Brent crude futures were trading around $79 a barrel at 0337 GMT on Friday, while U.S. West Texas Intermediate crude futures were trading around $73.60. "We believe softer market fundamentals, absent major supply disruptions, will result in OPEC+ rolling over its Q1 2024 production cuts throughout the whole 2024 and start tapering them only in H2 2025," analysts at Citi said. Last month, the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, have pledged to cut 2.2 million barrels per day (bpd) for the first quarter of 2024. "2025 looks to pose more challenges for OPEC+, as a large surplus looms despite extended production cuts, which in our base case is likely to make it increasingly difficult to protect $70/bbl on a Brent basis," Citi noted. Citi said global oil markets would likely flip into a 1.2 million bpd surplus on average, assuming OPEC+ starts tapering the production cuts in the second half of 2025. https://www.reuters.com/markets/commodities/citi-lowers-brent-price-outlook-2024-2025-oversupply-fears-2024-01-12/

2024-01-12 00:28

Microsoft briefly overtakes Apple as world's most valuable company Citigroup profit to take $3.8-bln hit on charges, reserves US consumer prices rise more than expected in December Dow up 0.04%, S&P 500 down 0.07%, Nasdaq flat NEW YORK, Jan 11 (Reuters) - U.S. stocks closed little changed on Thursday as news of hotter-than-expected inflation and signs of labor market strength dampened hopes for early interest rate cuts by the Federal Reserve this year, but a fall in Treasury yields kept declines in check. In a choppy session, equities opened higher and the benchmark S&P 500 (.SPX) briefly surpassed its record closing high of 4,796.56, hit in January 2022, before erasing initial gains. After ending 2023 with a strong rally, stocks have struggled to find upward momentum, with the S&P 500 up only 0.21% on the year, as mixed economic data and Fed officials' comments have led investors to scale back expectations for the timing and size of any rate cuts from the U.S. central bank this year. The U.S. Labor Department reported that consumer prices rose more than expected in December, with Americans paying more for shelter and healthcare. A separate report showed the number of people filing new claims for unemployment benefits unexpectedly fell last week to 202,000. "They're just understanding it for what it was. The thing that pushed it up was primarily shelter," said Scott Ladner, chief investment officer at Horizon Investments in Charlotte, North Carolina. "Nobody believes that is going to be a persistent go-forward problem apart from inflation, so the thing that drove the 'hot print' was something that everybody's kind of discounting." Comments from some Fed officials have pushed back on potential rate cuts. On Thursday, Cleveland Fed President Loretta Mester and Richmond Fed President Tom Barkin said consumer price data for December did little to assure them inflation is now on a steady track back to the central bank's 2% target, with more information needed before any decision to begin reducing rates. At 4:11 p.m. the Dow Jones Industrial Average (.DJI) rose 15.29 points, or 0.04%, to 37,711.02. The S&P 500 (.SPX) lost 3.21 points, or 0.07%, at 4,780.24 and the Nasdaq Composite (.IXIC) gained just 0.54 points, at 14,970.19. A fall in Treasury yields helped keep losses for equities in check, after an auction of $21 billion in 30-year bonds was well received. "People are still worried about supply in the Treasury market. ... Is there going to be sufficient demand to soak that all up? And especially at the long end, the real fear is at the long end and the auction today, it was just perfect," said Ladner. Microsoft (MSFT.O) briefly overtook Apple (AAPL.O) as the world's most valuable company, after the iPhone maker's shares dropped nearly 4% since the year began due to concerns over falling demand. Microsoft's shares rose 0.49%, while Apple shed 0.32%. Nearly all of the S&P 500's 11 major sectors declined, with only energy (.SPNY) and technology (.SPLRCT) in positive territory, up 0.16% and 0.44%, respectively. Crypto stocks reversed early gains and tumbled, with names such as Coinbase (COIN.O) off 6.7%, Bitfarms down 13.33% and Riot Platforms (RIOT.O) 15.82% lower. The U.S. securities regulator approved the first U.S.-listed exchange-traded funds (ETF) to track spot bitcoin late on Wednesday. Citigroup (C.N) fell 1.77% after a filing showed the lender booked about $3.8 billion in combined charges and reserves that will erode its fourth-quarter earnings, due to be reported on Friday. Other banks including fell, with JPMorgan Chase (JPM.N), down 0.42%, Bank of America (BAC.N), down 1.33% and Wells Fargo (WFC.N) off 0.08% ahead of their earnings reports on Friday. Declining issues outnumbered advancers for a 1.3-to-1 ratio on the NYSE and a 1.8-to-1 ratio on the Nasdaq. The S&P index recorded 40 new 52-week highs and one new low, while the Nasdaq recorded 109 new highs and 138 new lows. Volume on U.S. exchanges was 11.41 billion shares, compared with the 12.27 billion average for the full session over the last 20 trading days. https://www.reuters.com/markets/us/futures-rise-before-inflation-data-crypto-stocks-up-after-etf-approval-2024-01-11/

2024-01-11 23:26

CAIRO, Jan 12 (Reuters) - Dollar revenues from Egypt's Suez Canal are down 40% from the beginning of the year compared to 2023, canal authority head Osama Rabie said on Thursday, after attacks on ships by Yemen's Houthis caused major shippers to divert away from the route. Ship traffic was down 30% in the period between Jan. 1 and Jan. 11 compared to a year prior, Rabie said, speaking on a late night talk show. The number of vessels to pass through the Suez Canal dropped to 544 so far this year, from 777 in the equivalent period of 2023, he said. The Suez Canal is a key source of scarce foreign currency for Egypt, and authorities have been trying hard to boost revenues in recent years, including through an expansion of the canal in 2015. A further expansion is under way. Yemen's Iran-aligned Houthis have been attacking commercial vessels in the Red Sea for weeks to show support for Palestinian militant group Hamas in its fight against Israel. Many commercial shippers have diverted vessels to other routes. The United States announced last month a new international mission to patrol the Red Sea and deter attacks. Rabie said only ships that had to proceed promptly with their journey had diverted around the Cape of Good Hope, and that others were waiting for the situation to stabilise. The security concern to shippers could not be overcome with discounts or other incentives offered by the canal, he said. "A very large portion of the goods will return (to the Canal) once this matter is finished," he said, in reference to the Houthi attacks. https://www.reuters.com/markets/commodities/egypts-suez-canal-revenues-down-40-due-houthi-attacks-2024-01-11/