2024-05-20 07:07
MOSCOW, May 20 (Reuters) - Russia's Slavyansk oil refinery, located in the Krasnodar region, was damaged after a weekend drone attack, state-run TASS reported on Monday, citing a company security official. Six drones crashed onto the territory of the oil refinery in Slavyansk in Russia's southern Krasnodar region in early hours of Sunday, according to local officials. Interfax news agency reported the refinery halted work after the attack. "There is damage. Its scale and size will be determined," TASS quoted the security official, Eduard Trudnev, as saying on Monday. Slavyansk refinery is a private plant with a capacity of around 100,000 barrels per day. It supplies fuel both for domestic use and export. Russia has reported a rise in Ukrainian attacks on its territory since its forces opened a new front in northeastern Ukraine's Kharkiv region earlier this month. Sign up here. https://www.reuters.com/world/europe/russias-slavyansk-oil-refinery-damaged-after-weekend-drone-attack-tass-reports-2024-05-20/
2024-05-20 06:47
US Fed officials seek more inflation data before cutting rates Iranian president dies in helicopter crash Saudi crown prince postpones Japan trip Another Russian energy facility hit in drone attack NEW YORK, May 20 (Reuters) - Oil prices eased less than 1% on Monday as U.S. Federal Reserve officials said they were awaiting more signs that inflation was declining before the central bank starts cutting interest rates. Two top Fed officials said they're not yet ready to say inflation trends are again moving sustainably back to the central bank's 2% target, weighing in after data last week showed a welcome easing in consumer price pressures in April. Lower interest rates would reduce borrowing costs for consumers and businesses, which could boost economic growth and demand for oil. Brent futures fell 27 cents, or 0.3%, to settle at $83.71 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 26 cents, or 0.3%, to settle at $79.80. That kept the premium of Brent over WTI near its lowest level since March for a third day in a row. A narrower premium makes it less profitable for energy companies to send vessels to the U.S. to pick up crude cargoes for export. That leaves more oil in the U.S. that must be consumed or stored. The premium of the Brent front-month over the second month, known in the industry as backwardation, fell to its lowest since January. When a market is in backwardation, energy firms are more likely to pull oil out of storage and use it now rather than wait for prices to decline in the future. If the market switches to contango, with future contracts worth more than the front-month, energy firms could start storing oil for the future, which could depress prices. UNFAZED BY WORLD EVENTS The market, however, appeared unfazed by political uncertainty in two major oil-producing countries after Iran's president died in a helicopter crash and Saudi Arabia's crown prince deferred a trip to Japan because of the health of his father, the king. Iranian oil policy should be unaffected by the president's sudden death because Supreme Leader Ayatollah Ali Khamenei holds ultimate power with the final say on all state matters. In Saudi Arabia, the market is already accustomed to Crown Prince Mohammed Bin Salman's leadership in the energy sector, said Saul Kavonic, an energy analyst at MST Marquee. "Continuity in Saudi strategy is expected regardless of this health issue," he said. The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, are scheduled to meet on June 1. "The market also appears increasingly numb to developments on the geopolitical front, likely due to the large amount of spare capacity OPEC is sitting on," said Warren Patterson, head of commodities strategy at ING. Data showed that Saudi Arabia's crude oil exports rose for a second consecutive month in March, reaching their highest in nine months. Russia remained China's top oil supplier in April for a 12th month, with volumes rising 30% from a year earlier as refiners continued to cash in discounted shipments, while supplies from Saudi Arabia fell a quarter on higher prices. Russian President Vladimir Putin said gas output rose by 8% in the first four months of the year but oil output declined by 1.8%, a dip largely due to production cuts under OPEC+ agreements. Even though the Slavyansk oil refinery in the Krasnodar region of Russia was damaged by a drone attack over the weekend, Russia said it suspended a ban on gasoline exports until June 30. The country, however, said it would put the ban back in place July 1 to Aug. 31. Sign up here. https://www.reuters.com/business/energy/oil-prices-climb-amid-uncertainty-over-iran-presidents-fate-2024-05-20/
2024-05-20 06:37
Gold scales an all-time peak at $2,449.89 per ounce Silver hits highest level since 2012 May 20 (Reuters) - Gold prices rose to an all-time high on Monday as a cocktail of factors from U.S. rate cut expectations, China's stimulus measures to geopolitical tensions lifted demand, with the momentum also carrying silver to a more than 11-year peak. Spot gold rose 0.9% to $2,435.96 per ounce as of 2:26 p.m. ET (1826 GMT) after hitting a record high of $2,449.89 earlier in the session. U.S. gold futures settled 0.9% higher to $2,438.50. "Inflation is sticky, we may see some whipsaws in the inflation data, but also the burdening debt in the U.S., there is a cause to be diversified away from that too. So it's this perfect storm that's kept the market elevated in gold," said Daniel Pavilonis, senior market strategist at RJO Futures. Data last week showed that U.S. consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend, boosting expectations for a September interest rate cut. Lower rates reduce the opportunity cost of holding non-yielding bullion, which also benefits from uncertainty in the market. RJO's Pavilonis expects gold to propel to near $2,500 in the short term as there's a fear of missing out from gold's rally. "There's a lot of non-traders that are calling up places(brokers) ... to buy futures or to take physical delivery." Gold has also been supported by increased increased holdings in China's central bank. Adding to gold's upside was elevated risk aversion as Iranian President Ebrahim Raisi, was killed in a helicopter crash, analysts at Kitco Metals wrote in a note. Meanwhile, some analysts also pointed out gold's surge to China's announcement of "historic" steps to stabilise its crisis-hit property sector. China is a key consumer of gold and other industrial metals. Spot silver rose 2.2% to $32.17 after hitting an over 11-year high. Platinum dipped 2.5% to $1,053.43 after hitting its highest since May 2023. Palladium rose 2% to $1,028.66. "Platinum is trading at premium over palladium with rising inflows of exchange traded funds," ANZ said in a note. Sign up here. https://www.reuters.com/markets/commodities/gold-hits-record-peak-rate-cut-bets-burnish-appeal-silver-jumps-2024-05-20/
2024-05-20 06:27
SYDNEY, May 20 (Reuters) - Private equity group Quinbrook Infrastructure Partners said on Monday it would start work on a new iron ore mine and "green iron" processing facility in the state of Queensland which could cost as much as A$3.5 billion ($2.4 billion). The proposal, announced at a ceremony attended by Treasurer Jim Chalmers, will mine magnetite iron in Queensland and then refine it into "green iron," so-called because the steel precursor is processed using hydrogen produced from clean energy sources instead of coal. Quinbrook is in talks to source the green hydrogen from a facility Stanwell Corporation, a Queensland state-owned utility, is proposing to build nearby. Quinbrook said planning approvals are underway and development would take several years. New mines take an average of 12 years to develop in Australia and Quinbrook said it must still test the quality and scale of the Eulogie deposit, located roughly 70 km (44 miles) west of the port of Gladstone. A representative for Quinbrook did not immediately respond to questions from Reuters. The project is an apparent coup for the government's flagship Future Made in Australia program, a A$22.7 billion suite of subsidies and incentives announced last week to lure manufacturing and minerals processing to the country. "This is exactly the type of project the ‘Made in Australia’ and critical minerals policies ... are designed to support and the recent Federal budget announcements have given us and our partners the confidence to get on with it," Quinbrook Managing Partner David Scaysbrook said in a statement. The statement did not specify how much Quinbrook or its partners expect to receive in tax credits or other support. Australia has set aside billions to subsidise green hydrogen production and the Stanwell Corporation project has been shortlisted for government funding. ($1 = 1.4925 Australian dollars) Sign up here. https://www.reuters.com/markets/commodities/private-equity-group-proposes-green-iron-site-australias-queensland-2024-05-20/
2024-05-20 06:27
May 20 (Reuters) - China's imports of fuel oil rose 10% in April from a year earlier to 2.93 million metric tons, data from the General Administration of Customs showed on Monday, the highest level since at least 2020 according to Reuters' records. The April imports, which equate to about 620,180 barrels per day, were 48% higher than in March, as traders brought in more shipments from Venezuela and Iran, according to trading sources familiar with the transactions. The import volumes included purchases under ordinary trade, which are subject to import duty and consumption tax, as well as imports into bonded storage. Imports into the bonded tanks reached 2.21 million tons, or roughly 467,800 bpd, also the highest since at least 2020. "Higher supplies from Venezuela due to the relaxation of sanctions contributed to the higher volumes. Refiners' margins processing the heavier materials were also supportive," said one Chinese trading executive. Imports trended higher as some refiners ramped up purchases before prices strengthened further, amid a global rally in the high sulphur fuel oil market in the second quarter this year. Meanwhile, fuel oil export volumes, mostly of low-sulphur fuel oil, in April were at 1.64 million tons, or about 347,130 bpd, up 10% from the corresponding month last year. Exports rose from the same month last year as global bunker demand firmed amid geopolitical shipping disruptions this year. The exports are measured mostly by sales from bonded storage for vessels plying international routes. The tables below show China's fuel oil exports and imports in metric tons. The exports section largely captures China's low sulphur oil bunkering sales along its coast. (Figures are based on latest available data at the time of publishing, and may be subject to revision by China customs at a later date) (metric ton = 6.35 barrels for fuel oil conversion) Sign up here. https://www.reuters.com/business/energy/chinas-fuel-oil-imports-soar-highest-since-least-2020-2024-05-20/
2024-05-20 06:06
May 20 (Reuters) - Crypto startup funding rose for a second straight quarter to hit $2.4 billion in the first three months of 2024, PitchBook data showed, as expectations of lower interest rates and the debut of the first U.S. bitcoin spot ETF whetted investor appetite. Funding was spread across 518 deals and rose by 40.3% from the previous quarter, according to data firm PitchBook. Global venture capital investments dropped to a near five-year low in the same period. Investor bets on digital asset startups too have been on a slide since the peak of over $10 billion in the first quarter of 2022, hurt by a economic worries and the shutdown of key market players. However, the landmark U.S. regulatory approval of spot bitcoin ETFs, which are offered by heavyweights BlackRock and Fidelity, boosted the legitimacy of the asset class and helped send bitcoin to a record high of $73,803 in March. "The recovery in publicly traded tokens and continued rise in institutional adoption will drive increased VC funding," PitchBook analyst Robert Le said. Startups focused on building infrastructure for crypto and blockchain technology led the way in funding during the quarter, according to PitchBook. The largest deal was made by decentralized cloud platform Together AI, which raised $106 million in an early stage round led by Salesforce Ventures that valued the company at $1.1 billion. "The investment rounds have become highly competitive, especially at the early stages," PitchBook's Le said. "This is compounded by the fact that early-stage deals are earning higher valuations than late-stage deals but.. we will see if this trend holds in the coming quarters." Exits were still low, though. Le expects mergers to pick up later this year, particularly among crypto exchanges, custodians and infrastructure providers as the market matures. (This story has been refiled to capitalize 'B' in PitchBook in headline and text) Sign up here. https://www.reuters.com/technology/venture-capital-funding-crypto-rises-24-bln-pitchbook-says-2024-05-20/
