2024-08-02 11:37

US unemployment rate rises to 4.3% in July Spot gold posts 1.8% rise this week Silver, platinum log weekly rises Aug 2 (Reuters) - Gold prices retreated on Friday as profit-taking kicked in after bullion jumped over 1% earlier in the session on hopes of rate cuts buoyed by weaker than expected U.S. jobs data. Spot gold fell 0.5% to $2,432.19 per ounce as of 2:34 p.m. ET (1834 GMT). U.S. gold futures settled 0.4% lower to $2,4769.8 However, gold gained 1.8% this week as rising safe-haven demand due to Middle East tensions and expectations of rate cuts by the U.S. Federal Reserve made the metal more appealing for investors. "At this level we do anticipate a pullback and some profit taking but fundamentally here's a lot more upside potential than the downside risk," said Alex Ebkarian, chief operating officer at Allegiance Gold. Meanwhile, U.S. 10-year yields dropped to their lowest since December and the dollar (.dxy) , opens new tab hit its lowest since March after data showed that employers added fewer jobs in July than economists had forecast, while the unemployment rate increased to 4.3%. The data follows comments from Fed Chair Jerome Powell, who said on Wednesday that rates could be cut as soon as September if the U.S. economy follows its expected path. Bullion is traditionally considered a hedge against geopolitical and economic risks, and lower interest rates reduce the opportunity cost of holding the asset. "The marketplace just now is factoring in a better-than-70% chance for a 50-basis-point cut by the Fed at the September FOMC meeting," said Jim Wyckoff, senior market analyst at Kitco Metals in a note. Elsewhere, spot silver fell 0.2% to $28.49 per ounce, platinum was steady at $959.16 and palladium dropped 1.7% to $889.86. Both silver and platinum logged weekly gains. Sign up here. https://www.reuters.com/markets/commodities/gold-prices-head-best-week-4-months-us-jobs-data-eyed-2024-08-02/

2024-08-02 11:27

MOSCOW, Aug 2 (Reuters) - Russia will increase oil exports via its western ports to 1.95 million barrels per day (bpd) in August, up by some 150,000 bpd from July, although high domestic demand will restrain overseas sales potential, two trade sources said on Friday. Russia needs to supply its own market with enough crude oil to produce motor fuels essential to meet demand in the summer driving season and to replenish supplies ahead of seasonal maintenance. Russia's August oil shipments from Primorsk, Ust-Luga and Novorossiisk will rise by 9% on a daily basis from July's plan, Reuters calculations show. Oil loadings from the three western ports in July were revised up by some 0.23 million bpd from the initial schedule, to some 1.8 million bpd after Lukoil, Rosneft and Gazpromneft obtained additional loading slots. Russia's largest private oil company Lukoil ramped up seaborne exports last month as its supplies to Europe via the Druzhba pipeline are currently suspended. For August, Russia's offline primary oil refining capacity is seen declining by a third from July to 1.7 million tons, according to Reuters calculations based on data from industry sources. Russia's oil loadings are also capped by the state's pledge to the OPEC+ group of oil-producing nations to cut output. Sign up here. https://www.reuters.com/markets/commodities/russias-august-western-port-oil-loadings-rise-9-mm-sources-say-2024-08-02/

2024-08-02 11:26

Exxon raises 2024 oil and gas output goal to 4.3 million bpd Lifts capital spending guidance to $28 billion for 2024 Aims to cut cumulative $5 billion in costs through 2027 Aug 2 (Reuters) - Exxon Mobil (XOM.N) , opens new tab on Friday posted a better-than-expected $9.2 billion second-quarter profit based on rising oil prices and volume gains from its purchase this year of shale oil firm Pioneer Natural Resources. Exxon delivered a $2.14 per share profit that beat analysts' estimates on oil production and pricing gains that offset refining weakness. Results mirrored profit beats by rivals BP , Shell(SHEL.L) , opens new tab and ConocoPhillips (COP.N) , opens new tab. "I'd say vectors are all pointing up," said Exxon CEO Darren Woods of the output gains. The top U.S. oil producer's focus on oil underscores its view that demand will remain strong for years to come, he said. "Oil demand continues to be at record levels. Last year was a record. We anticipate this year will be a record and then next year will be a record," Woods said. BP this month forecast peak oil demand next year. Net income was $9.24 billion, up from $7.88 billion a year ago, largely on higher oil prices and gains from asset sales that offset weaker refining earnings. Shares were up a fraction at $117.91 in early trading as the overall stock market fell for the second day in a row. The company warned the Golden Pass liquefied natural gas (LNG) joint venture development project stalled by the lead contractor's bankruptcy would be delayed until late 2025. Exxon owns a 30% stake in the project and had earlier expected a first-half startup. US SHALE BOOST The profit boost from the Pioneer purchase highlighted how quickly Exxon was able complete the $60 billion deal compared to rivals. Chevron and ConocoPhillips' acquisitions are still waiting on regulatory reviews. Chevron this week indicated the closing of its Hess purchase may not happen until the second half of next year. Exxon, a partner with Hess in Guyana, has challenged Chevron's deal and its arbitration claim should be resolved by September 2025, Chief Financial Officer Kathryn Mikells told Reuters in an interview, later than Chevron has signaled. It raised its 2024 output target by 13% to 4.3 million barrels of oil equivalent per day (boepd) following the Pioneer deal, Mikells said. Exxon produced 3.74 million boepd in 2023. "We already see a line of sight of greater synergies" than expected when Exxon announced the transaction, Mikells said, adding that any updates would be disclosed in December. REFINING WEAKER Profits from pumping oil and gas jumped 25% over a year ago to $7.1 billion while those from the company's gasoline and diesel business fell 32% to $946 million. Chemicals profits were flat at $779 million in the quarter. Expenses rose modestly with capital spending of $7.03 billion, including $700 million in spending on assets acquired from Pioneer, up from $6.17 billion in the same quarter a year ago. Exxon increased its annual capital expenditure guidance to $28 billion from the previously estimated $23-$25 billion. The results also showed higher cash flow from operations which will help fund higher share buybacks and dividends. Cash flow from operations climbed to $10.5 billion, from $9.4 billion a year ago. The company plans to buy back $19 billion in shares this year, the largest share repurchase program among its top Western rivals, up from $17.4 billion last year. Oil and gas production in the second quarter grew by 15% from the previous quarter, or 574,000 boepd, including the added Pioneer contribution. Exxon had anticipated that Pioneer would add 500,000-550,000 boepd of output in the quarter. Its Guyana operations, which were expected to produce about 600,000 boepd this year with partners, posted peak production in May, with a record of 663,000 boepd. Sign up here. https://www.reuters.com/business/energy/exxon-delivers-92-billion-second-quarter-profit-raises-output-target-2024-08-02/

2024-08-02 11:12

Aug 2 (Reuters) - Pipeline operator Enbridge (ENB.TO) , opens new tab raised its full-year profit forecast on Friday, as it benefits from its newly acquired assets and projects. Enbridge has closed several deals so far this year, including a $4.3 billion deal to buy U.S. utility Questar Gas Company and Wexpro from Dominion Energy (D.N) , opens new tab. Quester supplies gas in Utah, Southern Wyoming and Southeastern Idaho to about 1.2 million customers. The company also sanctioned an expansion of its Gray Oak pipeline by 120 thousands of barrels per day (kbpd) in the Permian basin, and said the integration of Enbridge Gas Ohio and Enbridge Gas Utah was well underway. Enbridge raised its expectation for full-year adjusted core profit between C$17.7 billion and C$18.3 billion, from its previous range of C$16.6 billion to C$17.2 billion. It, however, reported a lower-than-expected profit in the second quarter ended June 30, partly hurt by weaker income from its Canadian gas transmission segment and higher interest rates that hiked borrowing costs and hurt demand. Quarterly adjusted core profit from Enbridge's Canadian Gas Transmission segment was down 30% to C$98 million from a year earlier, while adjusted core profit from its Mainline System fell 9.3% to C$1.32 billion in the quarter. In contrast, peer TC Energy (TRP.TO) , opens new tab, which is in the process of spinning off its oil business, reported a profit beat on Thursday, helped by higher volumes of natural gas transported through its system and said it expects the AI boom to further fuel demand. Enbridge reported an adjusted profit of 58 Canadian cents per share, compared with analysts' average estimate of 64 Canadian cents, according to LSEG data. Sign up here. https://www.reuters.com/business/energy/enbridge-misses-second-quarter-profit-estimates-2024-08-02/

2024-08-02 11:08

PARIS, Aug 2 (Reuters) - Electricity production at the Golfech nuclear plant in southern France was reduced by 1 gigawatt (GW) on Friday, EDF data showed, after the utility said high water temperatures on the Garonne river could mean reduced output until Aug. 10. The restrictions are the first this year linked to high temperatures, which typically represent less than one percent of annual production. Nuclear output in France has been relatively consistent this year, following years of disruption caused by extended maintenance. EDF sometimes limits production when temperatures are near a threshold that varies depending on the nuclear plant. On Thursday it extended a warning of possible reduced output that had been expected to end on Saturday. EDF was not immediately available for comment. LSEG data showed that the 28 Celsius (82.4 Fahrenheit) temperature limit for the River Garonne that cools Golfech was breached once on July 31. Only one of several forecasts showed temperatures surpassing that level over the next week. "Dropping temperatures in France should ease the pressure and allow the plant to return to normal generation levels sooner. However, the beginning of next week has temperatures rising once again and problems could start once again," LSEG analyst Ulrich Weber said. He also said demand caused by a heatwave in Southern Europe should fall from Friday, and LSEG data showed demand would fall in France on Monday. French nuclear plants have some 44.7 GW of available capacity, with about 73% online. While capacity is reduced at Golfech 1, the Golfech 2 reactor is offline for maintenance, with load limitations imposed for fuel savings, EDF said in an online note. Sign up here. https://www.reuters.com/business/energy/hot-river-water-curbs-output-french-nuclear-plant-2024-08-02/

2024-08-02 10:59

Aug 2 (Reuters) - The pound steadied on Friday after suffering sharp losses a day earlier when the Bank of England (BoE) cut interest rates for the first time in more than four years. Sterling was nearly flat at $1.2739, after having hit a fresh one-month low at $1.2708 earlier in the session, and was on track to post its biggest weekly decline in nearly four months, down 1%. The BoE cut rates on Thursday by a quarter-point to 5% in a tight vote by its policymakers, underscoring the extent to which inflation risks are still hanging over the economy. Governor Andrew Bailey stressed the central bank was not committing to a series of quick rate cuts, saying the stronger performance of the economy in recent months could keep inflation risks on the radar. However, the pound continued to weaken against the euro , touching an eight-week low of 84.995 pence at one point on Friday. Euro/sterling was last up 0.27% at 84.915 pence. "Looking ahead, we see scope for the UK policy rate to be cut more than that in the euro zone and look for euro/sterling to turn slowly higher," ING analysts said. "We have been too bullish on euro/sterling this year, but still favour levels above 85 later this year." Investors are fully pricing one further cut to interest rates by the BoE later this year. Meanwhile, the dollar eased against other major currencies ahead of U.S. payrolls data that is expected to show U.S. employment increased at a slower, but still healthy, pace in July. A wave of selling hit stock markets on Thursday and Friday, while safe-haven currencies and bonds rose after data showing a surprise slump in U.S. manufacturing ignited worries about a downturn. Fed Chair Jerome Powell said earlier this week that a U.S. rate cut could come at next month's policy meeting, but after the dour factory reading, traders are pricing in a higher chance of a bigger 50 basis point rate cut next month. Sign up here. https://www.reuters.com/markets/currencies/sterling-steadies-after-boe-driven-slide-eyes-us-payrolls-2024-08-02/