2025-08-27 19:20

US crude stocks down by 2.4 million barrels: EIA Trump's hefty India tariffs take effect US envoy to meet Ukrainian representatives in New York Russia plans higher August crude exports HOUSTON, Aug 27 (Reuters) - Oil prices settled higher on Wednesday after data showed a larger-than-expected drop in U.S. crude inventories and as investors weighed the potential impact from new U.S. tariffs on India. Brent crude futures were up 83 cents, or 1.2%, at $68.05 a barrel. West Texas Intermediate crude futures gained 90 cents, or 1.4%, to $64.15. Both contracts fell by more than 2% on Tuesday. Sign up here. U.S. crude inventories dropped by 2.4 million barrels to 418.3 million barrels last week, the Energy Information Administration said, compared with analysts' expectations in a Reuters poll for a 1.9-million-barrel draw. U.S. gasoline stocks fell by 1.2 million barrels compared with expectations for a 2.2 million-barrel draw. Distillate stockpiles, which include diesel and heating oil, fell by 1.8 million barrels versus expectations for an 885,000-barrel rise, the EIA data showed. "The gasoline demand number is supportive and shows people are getting ready to travel over the Labor Day weekend. This is the crescendo of the summer driving season, also the last big hurrah for the summertime gasoline blend," said Phil Flynn, senior analyst with Price Futures Group. U.S. President Donald Trump's doubling of tariffs on imports from India to as much as 50% was also in focus. The tariffs in response to India's purchases of Russian oil took effect on Wednesday. There was no sign of supply disruption so far, but uncertainty over whether the U.S. will target the oil flows is deterring some traders from taking new positions, said UBS analyst Giovanni Staunovo. While the immediate impact of U.S. tariffs on Indian exports appears limited, the ripple effects on the economy pose challenges that must be addressed, India's Finance Ministry said in its July monthly economic review, released on Wednesday. Russia and Ukraine have also stepped up attacks on each other's energy infrastructure, worrying traders about supply disruptions. Russia launched a massive drone attack on energy and gas transport infrastructure across six Ukrainian regions overnight, Ukrainian officials said on Wednesday. Ukraine struck Russian oil refineries and exporting infrastructure in recent days. U.S. special envoy Steve Witkoff said on Tuesday he will meet Ukrainian representatives in New York this week and that Washington is also in talks with Russia in an effort to end the war. Russia has made an upward revision to its crude oil export plan from western ports by 200,000 barrels per day in August from the initial schedule after attacks on its refineries last week, three people close to the matter said on Tuesday. New York Federal Reserve Bank President John Williams said on Wednesday that interest rates will likely fall at some point but policymakers will need to see what upcoming data indicate about the economy before deciding whether it is appropriate to make a cut at the September 16-17 meeting. Lower interest rates can reduce consumer borrowing costs and boost economic growth and demand for oil. https://www.reuters.com/business/energy/oil-edges-up-us-crude-stocks-drop-impact-us-tariffs-india-2025-08-27/

2025-08-27 19:07

Fed Governor Lisa Cook to file lawsuit against Trump's firing attempt Markets expect 87% chance of 25-basis point rate cut next month U.S. PCE data due on Friday Aug 27 (Reuters) - Gold was little changed on Wednesday as investors closely awaited upcoming inflation data for clues on interest rate cuts, while concerns about the Federal Reserve's independence lingered after U.S. President Donald Trump tried to fire a Fed governor. Spot gold was up 0.1% to $3,394.49 per ounce at 02:22 p.m. ET (18:22 GMT). U.S. gold futures for December delivery settled 0.5% higher at $3,448.6. Sign up here. U.S. Personal Consumption Expenditures, the Fed's preferred inflation gauge, is due on Friday and could offer cues on the interest-rate path. Economists polled by Reuters expect the PCE price index (USPCEY=ECI) , opens new tab to rise 2.6% in July, matching June's rise. "If (the PCE data) is a miss showing stronger inflation, that might begin to call into question whether the Fed's going to be able to cut interest rates in September," said Jim Wyckoff, senior analyst at Kitco Metals. "I suspect it would take an awfully strong inflation number to preempt the Fed from cutting rates in September." Gold, a zero-yield asset, thrives in a low-interest rate environment and is considered a hedge against uncertainty. Markets are anticipating an over 87% chance of a 25-basis-point rate cut at the Fed's policy meeting next month, according to CME FedWatch Tool , opens new tab. Trump said earlier this week he was removing Federal Reserve Governor Lisa Cook from her position on the Fed's board of directors. Meanwhile, Cook's lawyer said she would file a lawsuit to prevent Trump from firing her, kicking off a potentially protracted legal fight. Gold prices rose to a more than two-week high on Tuesday, following Trump's attempt to fire Cook. Trump threatening to fire a Fed governor is "really negative for the economy, interest rates and the dollar," said Jeffrey Christian, managing partner of CPM Group. "Gold is staying in a relatively narrow range because people are trying to ascertain what it all means for the economy." Elsewhere, spot silver fell 0.1% to $38.57 per ounce, platinum slipped 0.2% to $1,345.66, and palladium dropped 0.3% to $1,091.01. https://www.reuters.com/world/india/gold-little-changed-with-inflation-data-focus-2025-08-27/

2025-08-27 18:15

BRASILIA, Aug 27 (Reuters) - Brazil's economy created a net 129,775 formal jobs in July, data from the Labor Ministry showed on Wednesday, the lowest since March and slightly below the 135,577 expected by economists in a Reuters poll. The data accounts for 2,251,440 jobs opened and 2,121,665 closed during the period, the ministry said. Sign up here. The net result fell short of the 191,373 net jobs created in the same month last year, and marked the lowest for any July since 2020, adjusted data showed. From January to July, 1,347,807 net jobs were created in Brazil, down from 1,503,467 a year earlier, according to adjusted data. https://www.reuters.com/world/americas/brazil-creates-fewer-formal-jobs-than-expected-july-2025-08-27/

2025-08-27 18:15

Aug 27 (Reuters) - KoBold Metals, the mining company backed by U.S. billionaires Jeff Bezos and Bill Gates, has received seven permits to search for lithium and other minerals in the Democratic Republic of Congo, it said on Wednesday. The Central African country signed a deal with KoBold in July, allowing the U.S. miner to initiate a large-scale mineral exploration programme. Sign up here. The agreement also positioned KoBold to acquire Manono, considered one of the world's largest deposits of lithium, which is used in electric vehicle batteries. “Our exploration efforts across all seven new licenses will be focused on lithium," a company official told Reuters. According to data published on the country’s mining registry website, four of the permits are located in Manono territory in Tanganyika province, while three others are located in Malemba Nkulu territory in Haut-Lomami province. The licenses allow for the exploration of around a dozen minerals, including lithium, coltan, and rare earths. The Manono lithium deposit is at the centre of a dispute between the Congolese government and Australia-based AVZ Minerals (3A2.H) , opens new tab over the authorities' failure to grant a mining permit. https://www.reuters.com/world/africa/kobold-metals-granted-seven-congo-lithium-exploration-permits-2025-08-27/

2025-08-27 18:08

Aug 27 (Reuters) - Folgers coffee maker J.M. Smucker (SJM.N) , opens new tab missed Wall Street estimates for first-quarter profit on Wednesday, hurt by a rise in commodity costs as U.S. tariffs weighed. Higher inflation has prompted packaged food companies such as J.M. Smucker and Conagra Brands (CAG.N) , opens new tab to raise product prices in a bid to offset elevated input costs, which have worsened due to tariff-led expenses since the start of the year. Sign up here. The rise in prices has led to weaker product demand for J.M. Smucker, whose shares fell about 7% following the results. The company, which imports green coffee majorly from Brazil and Vietnam, had warned in June that the commodity's heavy exposure to tariffs would hurt its profitability. The Jif peanut butter maker buys about 500 million pounds of green coffee each year and could face the brunt of 50% tariffs on Brazilian imports, which were raised in July from a prior level of 10%. J.M. Smucker's cost of products sold in the three months ended July 31 rose 23% to $1.64 billion, leading a quarterly loss of $43.9 million on a GAAP basis. The company posted adjusted profit of $1.90 per share for the first quarter, missing analysts' average estimate of $1.93 per share, according to data compiled by LSEG. It had reported a profit of $185 million a year ago. However, J.M. Smucker raised its annual net sales growth forecast to a range of 3% to 5%, up from a prior view of 2% to 4%. https://www.reuters.com/business/retail-consumer/jm-smucker-misses-quarterly-profit-estimates-high-coffee-prices-weigh-2025-08-27/

2025-08-27 13:53

Spending on war in Ukraine, high interest rates slowing economy Official forecast was 2.5% for 2025 Russia also cuts forecast for industrial production Russia's key interest rate is at 18% MOSCOW, Aug 27 (Reuters) - Russia sees economic growth in 2025 slowing to 1.5%, far below the earlier 2.5% forecast, as high interest rates imposed to reduce inflation have stifled borrowing, Finance Minister Anton Siluanov told President Vladimir Putin on Wednesday. Russia's war economy grew robustly at 4.1% in 2023 and 4.3% in 2024, far faster than G7 countries, despite multiple rounds of Western sanctions imposed after its invasion of Ukraine in 2022, but it is slowing sharply this year. Sign up here. Economy Minister Maxim Reshetnikov warned in June that Russia was on the brink of slipping into recession unless monetary policy changed. Russia's highest military spending since the Cold War has stoked inflation, which prompted the central bank to raise its key interest rate to 21% in October, the highest level since the early years of President Vladimir Putin's rule in 2003. The central bank cut to 20% in June and then to 18% in July, but the economy is still shackled by the cost of credit and labour shortages, according to analysts. Siluanov told Putin that the Economy Ministry now saw growth of at least 1.5% this year. The official forecast for 2025 was 2.5%. "If this year we see rather tough conditions for the implementation of monetary and credit policy, we see that the rate of economic growth will nevertheless be no less than 1.5 percent this year, at least according to the assessment of the Economy Ministry," Siluanov said. "A balanced budget will give more opportunities to the central bank to soften monetary and credit policy, which means that credit resources will be more accessible." Reuters in January reported exclusively that Putin had grown increasingly concerned about distortions in Russia's wartime economy, particularly with a cut to investment by major companies due to high interest rates. GROWTH OR STAGNATION? During Putin's first two terms as president from 2000 to 2008, the size of Russia's economy soared to $1.7 trillion from less than $200 billion in 1999. But Russia's nominal GDP is now just $2.2 trillion, about the same level it was in 2013, the year before Russia annexed Crimea from Ukraine. "There are a lot of nuances in terms of ensuring economic growth," Putin told Siluanov and other key government ministers. He said there was a constant debate between the government, central bank and experts about the key interest rate and the situation in the economy. First Deputy Prime Minister Denis Manturov told Putin that manufacturing industry would grow about 3% - below an earlier forecast of 4.3% - and that industrial production would be about 2% - below an earlier forecast of 2.6%. Russian GDP grew by 1.1% in the second quarter of 2025 compared with 4.0% growth in the same period last year, federal statistics service Rosstat said earlier this month. According to the International Monetary Fund, Russia's economy is now expected to expand by 0.9% this year, compared with its previous view of 1.5% growth. With the economy slowing but Russia still spending vast sums on the war in Ukraine, Moscow will probably have to raise taxes and cut spending. https://www.reuters.com/business/finance/russia-slashes-2025-economic-growth-forecast-15-25-2025-08-27/