2024-06-07 05:41

SEJONG, South Korea, June 7 (Reuters) - Oil and gas prospects identified off South Korea's east coast hold "great potential", a founder of the petroleum exploration research firm advising the government said on Friday. South Korean President Yoon Suk Yeol announced on Monday the discovery of the prospects at the site off the coastal city of Pohang, which he said could contain as much as 14 billion barrels of oil and gas, and authorised drilling to prove up resources. "The prospects identified show great potential ... for hydrocarbon," said ACT GEO co-founder and adviser Vitor Abreu, whose firm was contracted by the Korea National Oil Corporation (KNOC) to study data from the area. Hydrocarbons form the basis of crude oil, natural gas and other petroleum resources. The targeted find is up to 2 km (1.2 miles) below the ocean's surface, the energy ministry previously said. Abreu said the prospects being surveyed had all the key main elements of highly prospective finds and estimated potential reserves ranged from 3.5 billion to 14 billion barrels of oil equivalent. The analysis estimated the success rate of finding resources from drilling at 20%, South Korean officials and Abreu said, which was high for such a project but still meant an 80% chance of failure, he added. Australia's Woodside Energy (WDS.AX) New Tab, opens new tab, which previously had rights to explore the area, said in 2023 that it had exited several blocks that it no longer considered prospective, including in South Korea. KNOC principal adviser Kwak Won-jun said new data and analysis had since become available, allowing for a different conclusion on the likelihood of a discovery. Woodside said on Friday that it was inappropriate to comment further because it was no longer a participant in the blocks. CAUTIOUS OPTIMISM The government announcement drew cautious optimism in the country among some experts but sceptics questioned the decision to go ahead with drilling, which Yoon said could cost 100 billion won ($73.3 million) for each of the wells being drilled. Yoon said up to five wells would be drilled starting near the end of the year in the hope of reaching findings by the first half of next year, while other officials said as many as 10 wells may be needed. The prospects are near areas that have been extensively explored and drilled since the late 1990s, including South Korea's only viable gas field to date that produced about 45 million barrels equivalent of natural gas and ultra-light crude oil between 2004 and 2021, according to KNOC. South Korea is the world's fourth-largest buyer of crude and gas, according to KNOC, and the ninth-largest energy consumer. ($1 = 1,365.2100 won) Sign up here. https://www.reuters.com/business/energy/south-korea-east-coast-energy-prospects-hold-great-potential-says-consultant-2024-06-07/

2024-06-07 05:18

MUMBAI, June 7 (Reuters) - India's foreign exchange reserves (INFXR=ECI) New Tab, opens new tab hit a record high of $651.5 billion as of May 31, the governor of the central bank said on Friday. "India's external sector remains resilient and the key external vulnerability indicators continue to improve," Shaktikanta Das said while announcing the latest interest rate decision. "Overall, we remain confident of meeting our external financing requirements comfortably." Reserves rose by $4.8 billion in the reporting week, the biggest rise in over two months. They had fallen by $2 billion in the prior week. The RBI intervenes in the foreign exchange market to curb excess volatility in the rupee. Changes in foreign currency assets are caused by the RBI's intervention as well as the appreciation or depreciation of foreign assets held in the reserves. Foreign exchange reserves also include India's reserve tranche position in the International Monetary Fund. For the week to which the foreign exchange data pertains, the rupee traded in a range of 83.04 to 83.4775 against the dollar, and logged its worst week in over two months. The currency was trading at 83.45 on Friday. Sign up here. https://www.reuters.com/markets/currencies/indias-forex-reserves-hit-record-high-6515-billion-may-31-2024-06-07/

2024-06-07 05:10

U.S. nonfarm payrolls rise 272,000 in May U.S. rate futures price in just one cut in 2024 Euro on pace for largest weekly loss since roughly early April Dollar on track for largest weekly loss vs yen since late April NEW YORK, June 7 (Reuters) - The U.S. dollar rebounded on Friday after data showed the world's largest economy created a lot more jobs than expected last month, suggesting that the Federal Reserve could take time in starting its easing cycle this year. The dollar index , which tracks the currency's value against six major peers led by the euro, rose 0.8% to 104.91, its best daily gain since April 10. For the week, the index was on track for a 0.2% gain, with the strong jobs number offsetting a run of weaker macro data that had earlier prompted investors to put two quarter-point Fed rate cuts back on the table in 2024. U.S. nonfarm payrolls expanded by 272,000 jobs last month, data showed, while revisions showed 15,000 fewer jobs created in March and April combined than previously reported. Economists polled by Reuters had forecast payrolls advancing by 185,000. Average hourly earnings rose 0.4% after having slowed to a 0.2% rate in April. Wages increased 4.1% in the 12 months through May following an upwardly revised 4.0% annual rise the prior month. The unemployment rate, however, edged up to 4% from 3.9% in April, breaching a level that had previously held for 27 straight months. "The markets and the Fed bow down to the holy grail of one number, and it is the payrolls report. Of course, it is not just about that headline print but also the higher-than-expected wage number," said David Rosenberg, founder and president of Rosenberg Research in Montreal. "But as they say — 'it is what it is.' And because we know what the Fed is laser-focused on, and how the Fed is so omnipresent when it comes to market activity in stocks and bonds, consider this to be a bearish report because it simply will embolden the hawks on the FOMC (Federal Open Market Committee)." The FOMC is not expected to make any change at its policy meeting next week, Following the jobs data, the rate futures market has priced in just one cut of 25 basis points this year, either at the November or December meeting, according to LSEG's rate probability app. The chances of a rate cut in September declined to about 50.8% post-jobs, from around 70% late on Thursday. The dollar rose 0.6% against the yen to 156.64 . The U.S. currency was still down 0.4% on the week, on track for its worst weekly performance since late April, or around the time Japanese monetary authorities stepped in to the market to prop up the yen. Like the Fed, the Bank of Japan decides rate policy next week, and consensus is building in the market for an imminent reduction in its monthly bond purchases as a means of tightening credit conditions. Despite recent firmness, the yen remains not far from the 34-year trough beyond 160 per dollar reached at the end of April, which prompted Japanese officials to spend some 9.8 trillion yen ($62.9 billion) intervening in the currency market to support it. The euro, meanwhile, dropped 0.8% versus the dollar to $1.0803 . On the week, Europe's single currency slid 0.4%, its largest weekly percentage loss since the week starting April 8. The currency's losses also came a day after the European Central Bank cut rates in a well-telegraphed move, but offered few hints about the outlook for monetary policy given that inflation is still above target. Sterling , meanwhile, retreated 0.5% against the dollar to $1.2722 after earlier in the session hitting $1.2825, the highest level since mid-March. Sign up here. https://www.reuters.com/markets/currencies/dollar-hovers-near-8-week-low-payrolls-test-looms-2024-06-07/

2024-06-07 05:08

June 7 (Reuters) - Investors are scouring U.S. credit card spending patterns to size up which, if any, trends could give specialty retailers a boost in the summer months. Recent quarterly results from retailers show shoppers are selectively buying non-essential, nice-to-have products - forgoing electronics, but not being shy about plunking down cash on those wide-legged jeans they've been coveting. That's been good for sales of in-vogue products such as Birkenstock's (BIRK.N) New Tab, opens new tab shoes, Abercrombie and Fitch's (ANF.N) New Tab, opens new tab jeans and Vuori's athleisure clothing - and less so for products from Home Depot (HD.N) New Tab, opens new tab and Best Buy (BBY.N) New Tab, opens new tab. "Consumers are being choosier about where and when they spend. They are seemingly willing to splurge on items that are not inexpensive, be (it) a pair of Hokas or Birkenstocks," said research firm Emarketer analyst Zak Stambor. Demand for on-trend products boosted sales growth in clothing by 3.2%, sports goods by 1.9% and footwear by 0.4% in the first quarter of 2024, compared to a year earlier, according to market research firm GlobalData. But big-ticket items, particularly related to living spaces, fell off consumers' shopping lists. Sales of electronics fell 1.9% for the quarter, while homeware purchases dropped 4.2% during the first quarter, versus the year earlier period. "Outdoor grills, patio sets ...televisions, couches, beds, it's all been a bit challenging as of late," Telsey Advisory Group analyst Joseph Feldman said. "There was a pull-forward of demand during the pandemic and we're still kind of coming off of that high and so you're still seeing some softness there." That divergence is evident in retailers' share prices. Abercrombie & Fitch shares have nearly doubled this year, while Home Depot's stock is down 4.5%. RETAILER RELEVANCE Last week, Nordstrom (JWN.N) New Tab, opens new tab executives said the company's first-quarter sales growth in active-clothing and -footwear was led by a few hot brands, citing Vuori, Hoka and Adidas. The department store chain set aside designated space in its stores to tout Roger Federer-backed On sneakers, Sam Edelman sandals and Birkenstocks. Across the U.S. retail landscape, "some of the stronger retailers are doing well. And then some of the brands that are putting out innovative products are doing well. And then others like department stores (are) just consistently trying to find a way to be relevant," Morningstar analyst David Swartz said. Dick's Sporting Goods (DKS.N) New Tab, opens new tab noted in a conference call with investors that it plans to continue its strategy of offering sought-after brands such as Hoka and On Holding's sneakers. Last week, the sporting goods retailer raised its annual profit and sales forecasts on robust demand for footwear and athletic apparel. Its shares are up nearly 45% this year. Other retailers including VF Corp, Victoria's Secret and Under Armour, have not seen demand bounce back, according to analysts who said shoppers may feel less urgency to shop at their stores. The three retail chains, which saw sales declines in the recent quarter compared to a year ago, are adjusting their merchandise to better attract shoppers. Under Armour's founder Kevin Plank, who returned as the company's CEO in April said, "This is not where I envisioned Under Armour playing at this point in our journey. That said, we'll use this turbulence to reconstitute our brand and business." After the mixed start to the year for retailers, credit card data is offering investors clues on which products and brands were hot or not as summer got underway. Consumer Edge, a New York-based research firm with hedge fund and private equity clients, said it analyzed data of about 40 million U.S. credit card transactions to find winners and losers in the retail landscape. Shoppers spent about 30% more on Vuori activewear over the six months through May 28, compared to a year earlier, and 25% more on Skims underwear, it said. Skims is an underwear clothing company owned by Kim Kardashian, which is expected to go public later this year or in 2025. Last year, Reuters reported Skims was in talks with investment firm Wellington Management to lead a new funding round valuing the company at about $4 billion. Spending on Abercrombie & Fitch products, and on Hoka and On Holding shoes, also rose from a year ago, according to Consumer Edge. However, it said spending on Victoria's Secret products was down in the mid-single digit percentage range, Under Armour saw a high-single digit fall and North Face was down mid-double digits. In clothing and shoes, "newer, more niche companies are doing better and we see that they are taking share from the more established players," Consumer Edge Head of Insights Michael Gunther said. Sign up here. https://www.reuters.com/business/retail-consumer/americans-are-getting-pickier-they-are-still-spending-hot-items-2024-06-07/

2024-06-07 05:05

OSLO, June 7 (Reuters) - The flow of Norwegian gas to northern England via the Langeled pipeline resumed on Friday as repairs were completed following a June 2 outage that triggered renewed concerns over energy security in Europe. "The ramp-up of the gas transport from the Nyhamna processing plant to the receiving terminal in Easington is ongoing," Norwegian pipeline system operator Gassco said, referring to facilities at each end of the Langeled pipeline. Britain's Easington import terminal received gas from Langeled at a rate of 40.3 million cubic metres (mcm) per day at 1058 GMT, up from zero on Thursday, according to flow data from Britain's National Gas. Sunday's interruption of gas flows from Norway's onshore Nyhamna plant via Langeled to Easington drove Europe's benchmark gas price on Monday to 38.56 euros per megawatt hour (MWh), its highest since December. The outage was caused by a crack in a two-inch pipeline onboard Equinor's (EQNR.OL) New Tab, opens new tab offshore Sleipner Riser platform, which acts as a connection between Langeled North and Langeled South. "The repair work on Sleipner Riser has been completed," Gassco said in a statement. Europe's benchmark gas price stood at 32.90 euros per MWh in early afternoon trade, down 0.8% from the previous day. Norwegian gas system operator Gassco had said it planned to gradually ramp up flows on Friday. Nyhamna is able to process up to 79.8 mcm per day at full capacity, while Easington can receive 72.50 mcm/day, according to Gassco data. Norway in 2022 overtook Russia as Europe's biggest gas supplier after Moscow's invasion of Ukraine, meeting roughly a quarter of the continent's demand and making any outages at Norwegian fields a possible trigger for higher prices. Sign up here. https://www.reuters.com/markets/commodities/norway-gas-flow-britain-resumes-after-repair-2024-06-07/

2024-06-07 05:04

ST PETERSBURG, Russia, June 7 (Reuters) - Cut off from the West, Russia is pitching its $2 trillion economy to giants like China and Saudi Arabia and longer-term prospects like Zimbabwe and Afghanistan at its premier investment forum in St Petersburg, which was founded by the tsars as a window to Europe. The war in Ukraine has led to the biggest upheaval in Russia's relations with the West since the 1962 Cuban Missile Crisis, and Western sanctions have forced a once-in-a-century revolution in Russia's economic relations. Since Peter the Great laid the foundations of the modern Russian state and made St Petersburg the capital in the early 18th Century, Russia's rulers have looked to the West as a source of technology, investment and ideas. The 2022 invasion of Ukraine, though, has forced President Vladimir Putin to pivot towards Asia and the rest of the non-Western world amid what the Kremlin says amounts to an economic blockade by the United States and its European allies. Western sanctions have not torpedoed Russia's economy, however, and Moscow has nurtured ties with China, major regional powers in the Middle East and across Africa and Latin America. It is less clear, though, how much cash these countries are prepared to invest in Russia's economy, and at what price. No blockbuster deals were announced so far. But Russian officials say it is just beginning - and that relations with the West are ruined for a generation. Bolivian President Luis Arce, who will join Putin at the main session of the St Petersburg International Economic Forum, said he wanted to share the experience of Bolivia's new economic model - with a big state - since 2006. "We have our own economic model, which we have been implementing since 2006, and we want to share this experience," Arce told Putin. Zimbabwean President Emmerson Mnangagwa is attending, as are 45 other foreign officials including the Saudi energy minister, Oman's minister of trade and commerce, and a senior Taliban official. Russian trade with Zimbabwe is tiny though - just $168 million in 2023 versus Russian-European Union trade of$300 billion in the year before Russia invaded Ukraine. Gone from the forum are the Western investors and investment bankers who once flocked to secure a slice of Russia's vast mineral wealth and one of Europe's biggest consumer markets. Reuters saw no major Western companies at the forum. Largely gone too are the 1990s oligarchs who made fortunes wheeling and dealing in the chaos of a collapsing superpower. In Putin's Russia the main arbiter is the state, controlled by the former Cold War spies and technocrats in his entourage. CHINESE DRAGON State-controlled banks such as Sberbank (SBER.MM) New Tab, opens new tab, VTB In a sign of the times, Alfa Bank's stand was a vast Chinese inflated dragon adorned with Chinese characters and an assertion that Alfa was "the best bank for business with China". Chinese luxury car brand Hongqi featured armoured vehicles. A delegation from the Taliban, still officially banned in Russia, toured the stands. The Taliban originally drew members from fighters who, with U.S. support, repelled Soviet forces in the 1980s. The theme of the forum is the statement: "The foundation of a multipolar world is the formation of new points of growth." While Russia's economy has shown resilience in the face of stringent Western sanctions, prices are rising as defence spending balloons. In dollar terms, the economy is about the same size it was a decade ago, and Putin is locked into an economic war with the West whose financial might is at least 25 times bigger than Russia's on a nominal GDP basis. From many foreign attendees there was praise for Russia. "This year's event has grown in size... There are a lot of opportunities," Nebeolisa Anako, an official from Nigeria, told Reuters. "The West may be actually isolating themselves as they are a minority in the world, although a very important part of the world. It is always better to cooperate with other parts of the world." Other officials from Africa and the Middle East echoed those words. Saudi Energy Minister Prince Abdulaziz bin Salman met Putin's energy point man, Deputy Prime Minister Alexander Novak, at the forum. Novak said "friendly countries" took the vast majority of its oil exports and that about 70% of it was paid for in national currencies. "We already supply 95% of oil and petroleum products to friendly countries this year in four months," Novak said. Sign up here. https://www.reuters.com/world/europe/amid-war-putin-looks-east-russias-window-europe-2024-06-07/