2024-01-10 05:26

Brent futures settle 1% lower, WTI futures fall 1.2% U.S. crude, fuel stocks rose last week -EIA Euro zone facing possible recession, ECB VP says U.S. will consult partners if Houthi attacks continue in Red Sea NEW YORK, Jan 10 (Reuters) - Oil prices fell nearly a dollar a barrel on Wednesday after a surprise jump in U.S. crude stockpiles raised worries about demand in the largest oil market. U.S. West Texas Intermediate crude futures fell 87 cents, or 1.2%, to $71.37 a barrel. Global benchmark Brent crude oil futures settled 79 cents, or 1%, to $76.80 a barrel. Prices had gained more than 1% early in the session but reversed course after the U.S. Energy Information Administration reported a surprise build in crude oil stockpiles and larger-than-expected jumps in storage of gasoline and distillates. "Today's EIA report highlights investor concerns of slowing demand growth," said Rob Haworth, senior investment strategist at U.S. Bank Asset Management. U.S. crude inventories rose by 1.3 million barrels in the week ended Jan. 5 to 432.4 million barrels, compared with analysts' expectations in a Reuters poll for a 700,000 barrel drop. Gasoline stocks rose by 8 million barrels while distillate stocks jumped by 6.5 million barrels, the EIA reported. "Part of the explanation is weaker crude and refined product exports resulting in higher U.S. builds, so that is something to watch in my view, how foreign demand evolves," said UBS analyst Giovanni Staunovo. Europe's weak economic outlook added to oil demand concerns. The euro zone may have been in recession last quarter and prospects remain weak, European Central Bank Vice President Luis de Guindos said on Wednesday. Limiting some losses, investors remained worried about potential oil supply disruptions in the Middle East during the Israel-Hamas war. The White House said attacks by Yemen-based Houthi militants in the Red Sea were "escalatory" and the U.S. will consult with its partners about next steps if they continue. "Today's market reaction indicate traders are actively balancing the potential impact of growing geopolitical risk and slowing economic growth on commodity prices," said Thomas Wash, market strategist at Missouri-based Confluence Investment Management. https://www.reuters.com/business/energy/oil-prices-extend-gains-after-us-crude-stocks-draw-2024-01-10/

2024-01-09 23:52

Juniper Networks jumps on likely $13-bln buyout by HPE Boeing slips for second day Bias remains for policy to stay tight - Atlanta Fed's Bostic Dow down 0.42%, S&P 500 down 0.15%, Nasdaq up 0.09% NEW YORK, Jan 9 (Reuters) - The S&P 500 and Dow lost ground and closed lower on Tuesday, pressured by a modest rise in Treasury yields as investors assessed the timing and size of any Federal Reserve interest rate cuts in 2024 ahead of inflation data this week. Expectations the central bank could begin cutting rates as soon as March have been slowly decreasing, with CME's FedWatch Tool showing a 65.7% chance for a cut of at least 25 basis points (bps) for the month, down from 79% a week ago. That has helped keep U.S. Treasury yields hovering near the 4% mark, with the benchmark 10-year yield last up slightly at 4.019% after reaching a high of 4.053% earlier in the session. Investors are bracing this week for more Treasury supply and the consumer price index (CPI) and producer price index (PPI). Earnings season unofficially begins on Friday, with reports from banks such as JPMorgan (JPM.N). "It's all speculation on what the Fed may or may not do and the bond market clearly got ahead of itself in anticipating rate cuts starting in March," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. "The fed futures will move around based on earnings definitely and on the data. ... The market is just jumping one way or the other trying to get ahead of things if they occur." The Dow Jones Industrial Average (.DJI) fell 157.85 points, or 0.42%, to 37,525.16. The S&P 500 (.SPX) lost 7.04 points, or 0.15 %, at 4,756.50 and the Nasdaq Composite (.IXIC) gained 13.94 points, or 0.09 %, at 14,857.71. A late move higher helped push the Nasdaq back into positive territory for the day. The majority of the 11 major S&P sectors fell, with energy (.SPNY) the weakest with a decline of 1.63% while tech (.SPLRCT) led the four sector gainers with a rise of only 0.25%. Stocks had rallied on Monday, with the Nasdaq and S&P 500 scoring their first daily percentage climbs of more than 1% since Dec. 21 and biggest one-day percentage advances since Nov. 14. Atlanta Fed President Raphael Bostic on Monday stressed the need to keep monetary policy tight, while Fed Governor Michelle Bowman retreated from her persistently hawkish view and signaled a willingness to support eventual rate cuts as inflation eases. Investors will parse Fed Vice Chair for Supervision Michael Barr's remarks for his perspectives on the policy outlook later on Tuesday. Boeing (BA.N) weakened for a second straight session to close down 1.41% as the plane maker, main U.S. air regulator and U.S. airlines were still wrangling over 737 MAX 9 inspection guidelines that would address safety lapses after airlines found several aircraft with loose parts. The parts were found on grounded 737 MAX 9s in the wake of last week's emergency landing of an Alaska Airlines flight after a panel blew off. Juniper Networks (JNPR.N) surged 21.81% after a source told Reuters that Hewlett Packard Enterprise (HPE.N) was in talks to buy the networking product maker in a $13-billion deal. The server maker dropped 7.3%. Declining issues outnumbered advancers by a 2.1-to-1 ratio on the NYSE while on the Nasdaq, declining issues outnumbered advancers by a 1.7-to-1 ratio. The S&P 500 posted 12 new 52-week highs and no new lows while the Nasdaq recorded 90 new highs and 87 new lows. Volume on U.S. exchanges was 10.56 billion shares, compared with the 12.3 billion average for the full session over the last 20 trading days. https://www.reuters.com/markets/us/futures-ease-after-strong-rally-inflation-data-awaited-2024-01-09/

2024-01-09 23:43

HAVANA, Jan 9 (Reuters) - Shortly after Cuban taxi driver Javier Ernesto heard fuel prices were set to soar fivefold on Feb. 1, he bolted for his local gas station. "We're trying to fuel up before they raise prices," the 33-year-old Havana resident told Reuters as he waited in a line of vehicles several blocks long. "It's a considerable hike and I think it's going to be hard for us afterwards." Cubans across the capital crowded gas stations and braced for impact ahead of the biggest single jump in fuel prices on the island in decades, a measure the communist-run government says is necessary to control deficit spending and raise funds for imports of food, medicine and critically - more fuel. The price increase for the popular 94 octane gasoline will bring a single 40-liter tank of fuel to 6,240 pesos, or about $23 at the black market exchange rate, well over the average monthly state salary of 4,209 pesos, or $15.60. There will be similar rises for other grades of gasoline and diesel, the government said on Monday. "It's not the same to fill your tank with 1,000 pesos as it is to spend 6,000," said state worker Ernesto Cordero. "The price of everything is going to go up; this will cause a chain reaction." The announcements, though rumored for months, rocked Cuba, where residents who depend on vast state subsidies to survive, have seen inflation spike and costs of most goods and services skyrocket. The government, which said it will also raise prices of liquified gas, used for cooking, and electricity for top-tier users, said it will protect the vulnerable from rising prices. In a separate announcement on Monday, the government said it would open 29 service centers that will charge for fuel exclusively in dollars, a twist that 28-year-old doctor Pedro Ducasse, of Havana, worried might lead to privileged access to gasoline for those with access to foreign currency. Health workers, he told Reuters, earn wages in pesos and would not enjoy that luxury. "I'm not against the rise in prices but the issue is that there should be fuel available for everyone," he said. Cuba's government has said charging in dollars is necessary to raise funds to import fuel from abroad, and said it hopes the new measures will help stabilize supply in the long term. https://www.reuters.com/world/americas/cubans-brace-impact-gasoline-prices-set-soar-2024-01-09/

2024-01-09 23:32

SAO PAULO, Jan 9 (Reuters) - Brazil will bolster security and aid efforts for the Yanomami territory, officials said on Tuesday, covering ancestral lands that for years have suffered a range of illegal activities largely fueled by wildcat gold mining. The government will spend 1.2 billion reais ($245 million) this year in security and assistance efforts for the Yanomami territory, Brazil's largest Indigenous reservation, located along the border with Venezuela. The plan includes establishing a local security headquarters that aims to consolidate federal security efforts to fight wildcat gold mining, a root problem in the region. The Yanomami territory, an area about the size as Portugal, has been invaded by illegal gold miners for decades, but the destructive incursions multiplied in recent years when then-President Jair Bolsonaro dismantled environment protection efforts. The illegal mining and deforestation have also exacerbated a humanitarian crisis in the territory, marked by malnutrition and other diseases like malaria, as well as sexual abuse. The rivers that dot the Yanomami lands have also faced mercury pollution that is especially harmful to area wildlife. Around 31,000 Indigenous people live in the territory, most of whom are Yanomami, but members of the Ye'kwana community are also present. A year ago, leftist President Luiz Inacio Lula da Silva launched an emergency operation to expel thousands of wildcat gold miners, known locally as garimpeiros, and assist Indigenous communities. Rui Costa, Lula's Chief of Staff, described the plan as a next phase that is "implementing permanent and structural measures in that region," in comments following a government meeting that discussed the matter. Other measures include food distribution and a new health center that will focus on Indigenous medical needs. ($1 = 4.8996 reais) https://www.reuters.com/world/americas/brazil-bolster-security-yanomami-territory-amazon-rainforest-2024-01-09/

2024-01-09 22:45

CAIRO, Jan 9 (Reuters) - The United Kingdom Maritime Trade Operations (UKMTO) organization and British maritime security firm Ambrey on Tuesday received reports of incidents in the Red Sea near Yemen. UKMTO received a report of an incident approximately 50 nautical miles (93 km) west of Yemen's Hodeidah, which authorities were investigating, it said in an advisory note. Ambrey received reports of suspicious activity from two merchant vessels southwest of Yemen's Mokha, though no damage was reported. A tanker either saw flares or missile trails, while a bulk carrier detected three small vessels approximately 1 mile in the direction of their port quarter, Ambrey said in an advisory note. The bulk carrier reported seeing two missiles fired from the direction of the boats and one unmanned aerial vehicle flying ahead of the vessel, Ambrey added. "Ambrey assessed this event was separate from an event that was reported west of Hodeidah around the same time," it said. Yemen's Iranian-backed Houthi militants, who control much of Yemen, have launched wave after wave of exploding drones and missiles at commercial vessels since Nov. 19, in what they say is a protest against Israel's military operations in Gaza. Ansarullah, a Houthi group, targeted a vessel in the Red Sea, a Yemeni military source told Al Jazeera on Tuesday. The Houthi campaign has been extraordinarily disruptive to international shipping, causing some companies to suspend transits through the Red Sea and instead take the much longer, costlier journey around Africa. https://www.reuters.com/world/middle-east/ukmto-ambrey-receive-reports-incidents-red-sea-near-yemens-hodeidah-2024-01-09/

2024-01-09 22:43

CHICAGO, Jan 9 (Reuters) - Tyson Foods (TSN.N) and Cargill (CARG.UL) said on Tuesday they suspended operations at beef plants in Kansas due to a massive snowstorm, reducing U.S. meat production. Blizzard-like conditions had left meatpacking workers stranded on highways on Monday while others spent the night at the slaughterhouses where they work, the companies and state officials said. Disruptions at plants slashed beef production at a time prices remain high after U.S. ranchers reduced their herds. Nationwide, meatpackers slaughtered an estimated 94,000 cattle on Tuesday, down 25% from a week earlier, the U.S. Department of Agriculture said. Cargill, a major producer of ground beef, said it idled a plant in Dodge City, Kansas, due to snow, cold and a loss of power. The plant will re-open once power returns and conditions are safe, which could come as early as Wednesday, the company said. Cargill is "committed to minimizing any disruption" to customers, spokesman Chuck Miller said. He confirmed that "some employees got stuck on the road outside the plant" and said the company hired tow truck drivers to assist them. About 50 employees out of 2,850 stayed at Cargill's plant due to road closures, while the majority "made it home," Miller said. "Half of our plant has had power and heat for a majority of the winter storm, and everyone has had access to food, water and assistance," he said. In the eastern half of the U.S., wintry weather knocked out power to over 418,000 homes and businesses in 12 states. Tyson Foods said it canceled both shifts at its sprawling beef plant in Holcomb, Kansas, after allowing some workers the option of "sheltering in place" there with a hot meal and drinks on Monday night. Employees were able to leave by Tuesday morning, the company said. The winter storm left about 60 to 100 vehicles stuck on roads near Cargill's plant on Monday, and others stranded near Tyson's facility, said Steve Hale, spokesman for the Kansas Department of Transportation. The department advised Cargill on Monday that highways were being closed, he added. "The roads are already treacherous and now we've got lots of vehicles that are all over the place, either stranded or waiting to get in or out of these plants," Hale said. Outside of Tyson's plant, a highway resembled a parking lot with vehicles left overnight in the middle of the road and on the shoulder, said Trooper Anthony Calderon of the Kansas Highway Patrol. "It looked like you were at the mall," he said. https://www.reuters.com/business/retail-consumer/tyson-foods-cargill-idle-us-beef-plants-due-snowstorm-2024-01-09/