2024-07-31 21:27

NEW YORK, July 31 (Reuters) - U.S. oil demand rose to a seasonal record in May as American cars guzzled the most gasoline since before the pandemic, data from the U.S. Energy Information Administration (EIA) showed on Wednesday. Total crude oil and petroleum product supplied, the EIA's proxy for demand, rose by 792,000 barrels per day (bpd) month-over-month to 20.80 million bpd in May, the data showed. That is the highest monthly figure since August, and a record high for the month of May. The data marks a significant reversal in the trajectory of U.S. oil demand: weekly updates from the EIA had pegged oil demand for May at just around 20 million bpd. Demand for gasoline alone rose to a post-pandemic high of 9.40 million bpd, the most since August 2019. The previous post-pandemic high for U.S. gasoline consumption was 9.36 million bpd in June 2021. Gasoline demand in the U.S. typically peaks during the summer driving season. While markets are unlikely to react to the data because of the time lag, it should make forecasters raise their projections for this year's U.S. oil demand growth, UBS analyst Giovanni Staunovo said. The U.S. is the world's largest consumer of oil, making its demand trajectory crucial to global markets and energy transition targets. OIL AND GAS OUTPUT FALLS Meanwhile, U.S. crude oil production fell in May in its first monthly decline since January, while natural gas output decreased to its lowest since February 2023, EIA data showed. Crude oil production fell by 61,000 barrels per day (bpd) to 13.18 million bpd in May, as lower output from the Federal Offshore Gulf of Mexico and North Dakota offset record production in Texas and New Mexico, the EIA said. Gross natural gas production in the U.S. Lower 48 states fell for a third month in a row in May to 113.8 billion cubic feet per day (bcfd), according to EIA's monthly 914 production report. That was the first time gas output fell for three months in a row since October 2020 and compares with a monthly record high of 118.2 bcfd in December 2023. In top gas-producing states, monthly output in May rose to a record high of 35.1 bcfd in Texas and a three-month high of 19.5 bcfd in Pennsylvania. That compares with a monthly record high of 21.9 bcfd in Pennsylvania in December 2021. Sign up here. https://www.reuters.com/business/energy/us-oil-output-fell-may-first-time-since-january-eia-says-2024-07-31/

2024-07-31 21:07

July 31 (Reuters) - Albemarle (ALB.N) , opens new tab, the world's largest lithium producer, said on Wednesday it would slash costs for the second time this year and that everything but its dividend could be on the chopping block. The aggressive move was caused by tumbling prices for the metal used to make electric vehicle batteries after the company swung to a second-quarter loss. Shares fell 2.9% to $91 in after-hours trading. The Tesla (TSLA.O) , opens new tab supplier and its peers have been buffeted in the past year by lithium oversupply from China and a softening of aggressive EV adoption rates that has dragged down prices for the ultralight metal and delayed expectations for how long the energy transition could take. General Motors (GM.N) , opens new tab, for example, earlier this month backed away from its target of producing 1 million EVs annually by 2025 in North America. Albemarle, with operations across the globe, had already slashed staff in January. Yet lithium prices have continued to tumble, from an average of $20 per kilogram at the end of last year to a current range of roughly $12 to $15 per kg, the company said. "The market is not improving. It's actually probably getting a little worse," Albemarle CEO Kent Masters told Reuters. "We're using the term 'lower for longer' from a pricing perspective, and we have to be able to operate through that downturn." To save costs, the company is launching a "comprehensive review of its cost and operating structure" that should be complete by October, Masters said. Albemarle also plans to pause construction of an Australian processing unit and idle production at a second one at the site. "We will look at everything to get us kind of a mean and lean position," he said, adding that additional layoffs and asset sales are on the table. The company's dividend, which has been raised annually for 30 years, likely would not be affected. "It's important for our shareholders. So our plan is we would stick with that," he said. The pace of EV demand growth across the globe has this year failed to keep up with robust expectations, spooking lithium industry investors. Goldman Sachs (GS.N) , opens new tab analysts, for example, doesn't expect global lithium demand to outpace supply until 2030. RESULTS Albemarle reported a net loss of $188.2 million, or $1.96 per share, compared to a net profit of $650 million, or $5.52 per share, in the year-ago quarter. Excluding one-time items, Albemarle earned 4 cents per share. By that measure, analysts expected earnings of 41 cents per share, according to IBES data from LSEG. Albemarle did keep its full-year profit outlook, helped in part by results from its catalyst division and cost cuts, which have saved more than $150 million this year. Despite the price drop, Albemarle and its peers have repeatedly said they expect demand for lithium to jump later this decade as EVs go mainstream. The Charlotte, North Carolina-based company plans to discuss the quarterly results on a Thursday morning call with investors. Sign up here. https://www.reuters.com/markets/commodities/tumbling-lithium-prices-push-albemarle-fresh-round-cost-cuts-2024-07-31/

2024-07-31 21:00

July 31 (Reuters) - Oil and gas firm APA (APA.O) , opens new tab beat analysts' estimates for second-quarter profit on Wednesday, helped by higher production and oil prices. Shares were up 1.1% at $31.52 in after market trade. The company raised its full-year estimate of net gain on third-party oil and gas purchases and sales to $350 million, up by $120 million from its estimates in May. APA also lifted its cost savings expectations from its Callon Petroleum deal to $250 million, from $150 million earlier. The company bought its rival in an all-stock transaction valued at $4.5 billion earlier this year. Houston-based APA's quarterly oil production was at 253,649 barrels per day (bpd), compared with 198,831 bpd a year earlier, while average oil prices rose 7.7% to $82.28 per barrel in the second quarter. Brent crude rose in the second quarter on an average on OPEC+ production cut extension, expectations of strong demand and Fed rate cuts, prompting oil firms to produce more. APA said it expects full-year capital to be at or below its outlook of $2.7 billion, as it plans to average at nine to ten rigs in the Permian Basin and 11 rigs in Egypt. The company expects to curtail about 90 millions of cubic feet per day (MMcfpd) of natural gas in the third quarter, higher than its second quarter curtailment of 78 MMcfpd. A slump in natural gas prices due to high inventories and lower demand have forced U.S. producers to cut down on production. APA reported an adjusted profit of $1.17 per share for the quarter ended June 30, compared with analysts' average estimate of 94 cents, according to LSEG data. Sign up here. https://www.reuters.com/business/energy/apa-beats-second-quarter-profit-estimates-higher-oil-prices-2024-07-31/

2024-07-31 20:45

TEAHUPO'O, Tahiti, July 31 (Reuters) - Competition was cancelled at the Olympic surfing venue of Teahupo'o in Tahiti on Wednesday, with conditions still super challenging after a storm swept though the region, forcing the event to go on hold. Organisers said competition was likely to resume at 7 a.m. (1700 GMT) on Thursday, starting with women's round three and planning to move into the quarter-finals for men and women. Tahiti's Teahupo'o delivered some of the best conditions ever seen for a competition for the men's round three on Monday, before strong winds ripped through the lineup and continued into Tuesday. Wednesday brought home the challenges of forecasting waves and weather on an isolated island in the South Pacific. With time running out to finish competition, organisers initially said they would send the women's round three out into a maelstrom of 15-foot stormy surf at one of the world's most dangerous waves. They quickly changed their minds, however, and cancelled for the day, leaving a nail-biting wait to wrap up the event and decide the medals. Running for half a day on Wednesday would have allowed organisers to complete competition and crown medallists on Thursday, which looks to have the best conditions left in the waiting period that ends on Monday. One-and-a-half days of competition remain now, meaning a finish is more likely at the weekend - but far from certain. Kevin Wallis, head of forecasting at Surfline.com, which works with the Olympic surf organisers, said a repeat of Monday's stunning conditions was unlikely. "In a perfect world, you get four really great days of surf like we had on Monday morning, but that doesn't always happen," Wallis told Reuters during the break in competition on Tuesday. "We've been super lucky so far. We've had two and a half days of anywhere from good to unbelievably all-time good in the case of Monday morning. "So I would just look whether we get anything more like that the rest of the waiting period - probably not - but we've got a day-and-a-half to finish. We've got to try and find the best day-and-a-half left in the waiting period." When surfing resumes, women's round three action will see Australian world champion Tyler Wright up against Israel's Anat Lelior before local favourite Vahine Fierro takes on countrywoman Johanne Defay in heat two. Friendly fire is a theme for the men's quarter-finals too, with France's Kauli Vaast and Joan Duru meeting, along with Brazil's Joao Chianca and Gabriel Medina, while Ethan Ewing and Jack Robinson of Australia will be fighting for a semi-final berth. Sign up here. https://www.reuters.com/sports/olympics/surfing-competition-resume-tahiti-challenging-conditions-2024-07-31/

2024-07-31 20:36

TSX ends up 1.3% at 23,110.81 Eclipses July 16 record closing high For the month, the index gains 5.65% Energy gains 3%; oil settles 4.3% higher July 31 (Reuters) - Canada's main stock index climbed to a record high on Wednesday, helped by gains for resource, technology and high dividend pay stocks, as the Federal Reserve signaled it could begin cutting interest rates in the coming months. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 286.14 points, or 1.3%, at 23,110.81, eclipsing the all-time closing high it set on July 16. For the month, the index was up 5.65%, its biggest monthly advance since November. The Fed held interest rates steady but opened the door to reducing borrowing costs at its next meeting in September as inflation continues coming into line with the U.S. central bank's 2% target. "With rates potentially moving lower, we do have more of a dividend play in the TSX," said Stan Wong, a portfolio manager at Scotia Wealth Management. "Those dividend players will be a bit more attractive in a falling, or lower interest rate environment." High dividend paying stocks dominate the utilities and financial sectors, which combined account for roughly one-third of the TSX's market capitalization. Financials rose 0.7% and utilities ended 0.8% higher. Energy was up 3% as the price of oil settled 4.3% higher on rising Mideast tension, while the materials group added 2% as gold and copper prices climbed. Technology was another standout, climbing 2.9%. "There is a double edged sword with technology given the higher valuations but also the higher growth prospects of artificial intelligence, cybersecurity and the cloud," Wong said. Preliminary data showed Canadian economic growth accelerating to 2.2% in the second quarter, while corporate results were also upbeat, helping to boost the shares of New Gold Inc (NGD.TO) , opens new tab and Precision Drilling Corp (PD.TO) , opens new tab. They were up 13.1% and 6.8% respectively. Sign up here. https://www.reuters.com/markets/tsx-futures-jump-commodity-boost-fed-decision-tap-2024-07-31/

2024-07-31 19:54

July 31 (Reuters) - A bipartisan group of U.S. lawmakers on Wednesday introduced a bill that would block Chinese solar panel makers from claiming subsidies for their American factories. WHY IT MATTERS The American Tax Dollars for American Solar Manufacturing Act was introduced as some of the world's largest solar panel producers, which are based in China, are setting up factories in the United States. Their facilities are supported by new tax credits created by President Joe Biden's landmark climate change law, the 2022 Inflation Reduction Act. The Biden administration has sought to boost investment that creates U.S. jobs in clean energy, but is desperate to prevent over-reliance on geopolitical rival China. Some U.S. solar equipment manufacturers have said they find it hard to compete against a flood of cheap imports and are worried by China's outsized presence in the global market. KEY QUOTE "We cannot allow American tax dollars to go to Chinese companies that cheat and undermine American solar manufacturing," Senator Sherrod Brown, a Democrat from Ohio, said in a statement. Brown's legislation was co-sponsored by fellow Democratic Senator Jon Ossoff of Georgia and two Republican senators - Rick Scott of Florida and Bill Cassidy of Louisiana. Sign up here. https://www.reuters.com/business/energy/us-lawmakers-seek-block-chinese-firms-solar-manufacturing-subsidy-2024-07-31/