2025-08-27 12:51
Aug 27 (Reuters) - A unit of U.S. energy company Sempra (SRE.N) , opens new tab will supply 2 million tonnes per annum (Mtpa) of liquefied natural gas from the Port Arthur LNG Phase 2 development project to EQT Corp (EQT.N) , opens new tab for 20 years, the companies said on Wednesday. Commercial activity in the U.S. LNG sector has been increasing rapidly after President Donald Trump lifted a moratorium on new liquefied natural gas export permits soon after taking office in January. Sign up here. Sempra has inked agreements with several companies to supply the superchilled fuel from its Port Arthur LNG Phase 2 project. Last week, it agreed to supply ConocoPhillips (COP.N) , opens new tab with 4 mtpa of LNG. The company in July signed a deal with Japan's biggest power generator JERA to supply 1.5 million tonnes of LNG, after Sempra's Port Arthur Phase 2 project in Texas won U.S. approval to export liquefied natural gas to markets in Europe and Asia. Sempra still expects to make a final investment decision on the Port Arthur LNG Phase 2 project in 2025. LNG companies typically reach an FID on projects once they have secured enough supply deals to obtain the necessary financing for construction. https://www.reuters.com/business/energy/eqt-buy-lng-sempras-port-arthur-phase-2-project-2025-08-27/
2025-08-27 12:39
European stocks calm after French selloff Investors await pivotal Nvidia earnings after Fed drama Dollar recovers even as Fed independence worries linger LONDON/SINGAPORE, Aug 27 (Reuters) - The U.S. dollar recovered on Wednesday even as investors worried about attacks on Federal Reserve independence, while European shares edged higher after a sharp drop the day before, with the focus now turning to earnings from AI leader Nvidia (NVDA.O) , opens new tab. Concerns for U.S. Federal Reserve independence swirled as a lawyer for Fed Governor Lisa Cook said she would file a lawsuit against President Donald Trump's move to fire her on Monday. Sign up here. Even so, the dollar rebounded from its drop in the previous session and was up 0.3% against a basket of currencies at 1210 GMT. "If you think about near-term policy and the impact, despite thinking that inflation can become unanchored when you have a less independent central bank, Cook has been dovish overall," said Justin Onuekwusi, chief investment officer at St. James's Place. "I think what concerns markets overall is the persistent rhetoric on the Fed that can put the future independence of the central bank into question," said Onuekwusi, adding that markets appeared complacent about the attendant risks to policymaking. The two-year U.S. Treasury yield , which typically moves in step with interest rate expectations, hit its lowest since May at 3.645%. But the yield on the 30-year bond , which bore the brunt of Tuesday's selloff, rose 2 basis points to 4.93%. Those moves widened the yield curve measured by the gap between two and 30-year yields further to around 128 bps, nearing its widest since early 2022 . Trump has repeatedly criticised Fed Chair Jerome Powell and policymakers for not cutting interest rates. Market watchers interpreted Powell's comments at the Fed's annual Jackson Hole symposium last week as indicating cuts could be on the way. That has led to investors raising their bets on a rate cut next month, with traders pricing in an 84% chance of the Fed moving in September and expecting more than 100 bps of easing by June 2026. "I think investors are focused more on the upcoming payroll print and what that means for a September rate move," said Ben Bennett, APAC investment strategist at Legal and General Investment Management. Europe's STOXX 600 index was trading 0.2% higher after a nearly 1% drop on Tuesday, when French Prime Minister Francois Bayrou's gamble to win backing for his deeply unpopular debt-reduction plan backfired. Bayrou's move to call a confidence vote on September 8 has raised the risk that the euro zone's second-largest economy could soon face another government collapse. However, French bonds calmed and stocks rose (.FCHI) , opens new tab following a sharp selloff on Monday and Tuesday. "What is key is whether or not we will be able to have a budget by the end of the year," said AXA chief economist Gilles Moec. For the time being, markets were pricing in a repeat of last year, when the French government ultimately pushed through a budget, but market reaction could change if a new snap election was called, he added. The euro and sterling dropped against a stronger dollar, with the euro falling to $1.1574, its lowest since August 6. NVIDIA U.S. stock futures were trading around 0.1% higher. , The focus is turning to earnings from Nvidia later on Wednesday, which will set the tone for how tech-concentrated U.S. equity indexes, which have reached near record highs, will trade. The company has been at the forefront of a market recovery from April's lows, crossing the $4 trillion market capitalisation mark in July to become the world's most valuable company as investors continued to bet on the global demand for AI infrastructure. Data showed options traders are pricing in about a $260 billion swing in Nvidia's market value after the firm reports earnings, where its business in China will be watched after an unusual profit-sharing deal with the Trump administration. Caught in the crossfire of a Sino-U.S. trade war, the fate of Nvidia's China business hangs on where the world's two largest economies land on tariff talks and chip trade curbs. In Asia, Japan's long-dated government bond yields rose to fresh all-time highs following a weak result in the Bank of Japan's regular debt purchase operations. In commodities, spot gold was 0.5% lower after touching a two-week high in the previous session. Oil prices edged up, with the market on alert for fresh developments in the war in Ukraine and investors weighing hefty new U.S. tariffs on India, the world’s third-biggest crude consumer. Both Brent crude and West Texas Intermediate crude futures were up around 20 cents at $67.43 and $63.47 respectively. https://www.reuters.com/world/china/global-markets-wrapup-4-2025-08-27/
2025-08-27 12:39
US envoy to meet Ukrainians representatives in New York Trump's hefty India tariffs take effect US oil inventories show weekly decline, sources say Russia plans higher August crude exports LONDON, Aug 27 (Reuters) - Oil prices steadied on Wednesday as investors digested an industry report showing a drop in U.S. crude and gasoline inventories and the potential impact of new U.S. tariffs on India while watching for developments in the war in Ukraine. U.S. special envoy Steve Witkoff said on Tuesday that 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. Sign up here. Oil found some support from the American Petroleum Institute's weekly supply report, which market sources said showed U.S. crude, gasoline and distillate inventories fell last week. Official inventory data is due at 1430 GMT. Brent crude futures were up 18 cents, or 0.3%, at $67.40 a barrel by 1212 GMT. West Texas Intermediate (WTI) crude futures gained 19 cents, or 0.3%, to $63.44. Both contracts had fallen by more than 2% on Tuesday. U.S. President Donald Trump's doubling of tariffs on imports from India to as much as 50% was also in focus. The tariffs over India's purchases of Russian took effect on Wednesday. While there is no sign of supply disruption so far, uncertainty over whether the U.S. will target the oil flows is deterring some traders from taking new positions, said UBS analyst Giovanni Staunovo. "That uncertainty, in my view, keeps some investors on the sidelines until more clarity emerges on the next steps of U.S. President Trump," he said. "The API report was supportive." In other recent developments, Russian refineries have been hit by Ukrainian drone attacks, forcing them to export the crude they cannot process. 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. https://www.reuters.com/business/energy/oil-steadies-investors-focus-ukraine-inventories-tariffs-india-2025-08-27/
2025-08-27 12:35
LONDON, Aug 27 (Reuters) - HSBC (HSBA.L) , opens new tab customers in Britain reported problems accessing mobile and online banking services on Wednesday, as the bank apologised and said it was investigating the matter urgently. Thousands of HSBC customers started reporting problems around 11am local time, with the incidents continuing for at least two hours, according to outages tracking website Downdetector. Sign up here. HSBC UK's service page on its website said there were problems with both mobile and online banking. "We understand some customers are having issues accessing banking services right now. We're really sorry and are investigating as a matter of urgency. We will share an update as soon as possible," a HSBC spokesperson said. British lawmakers reported in March this year that nine top UK banks and building societies suffered at least 803 hours of unplanned tech and systems outages in the last two years, blocking millions of customers from accessing their cash. https://www.reuters.com/business/finance/thousands-struggle-access-hsbc-uk-services-after-outages-2025-08-27/
2025-08-27 12:05
BUDAPEST, Aug 27 (Reuters) - Crude oil shipments via the Druzhba pipeline could resume as soon as August 27 or 28, though the pipeline from Russia might not run at full capacity, Hungarian oil company MOL's (MOLB.BU) , opens new tab executive chairman told website mandiner.hu. Hungary and Slovakia said on Friday that oil supplies via the Druzhba pipeline could be suspended for at least five days after Ukraine's latest attack on Russian energy infrastructure. Sign up here. MOL's Zsolt Hernadi said in the interview on mandiner.hu that his company was able to supply its refineries from operational reserves, but may have to fall back on strategic reserves. If MOL had to increase imports via the Adriatic pipeline, it would still import Russian oil because Hungary and Slovakia were granted an exemption from sanctions, Hernadi said. He added that he was not sure that MOL would be able to import sufficient volumes of crude via the Adriatic pipeline to run both of its refineries at full capacity if shipments via Druzhba were halted entirely. If Druzhba oil flows do not resume by September 1, Slovakia will need to tap its strategic reserves and its refinery will not be allowed to export, Hernadi said, cutting Hungary's fuel imports by 20% while also affecting Ukraine. "One seventh of Ukraine's diesel needs are supplied by the refinery in Slovakia through Hungary ... and this will immediately stop," Hernadi said. https://www.reuters.com/business/energy/head-hungarys-mol-says-druzhba-oil-flows-could-resume-august-27-or-28-2025-08-27/
2025-08-27 12:00
Petrochemicals supply to exceed demand by 20-25% by 2030 South Korea to cut capacity in reponse to US tariffs China considers closing loss-making plants LONDON, Aug 27 (Reuters) - U.S. President Donald Trump's trade wars are nudging the global plastics industry toward a painful but necessary restructuring to address acute overcapacity that has kept the industry’s profits in a prolonged slump. Demand for plastics – from packaging and manufactured goods to solar panels and car parts – is expected to grow sharply in the coming decades as middle classes grow in large economies, particularly in Asia. This means more oil demand. Sign up here. Consumption of petrochemical feedstocks – oil-derived products such as naphtha, propane and ethane – accounted for 95% of total oil demand growth between 2019 and 2024. Creation of these plastics building blocks is forecast to rise by 2.1 million barrels per day between 2024 and 2030, reaching 18.4 million bpd, according to the International Energy Agency. Given this growth, petrochemicals’ share of total oil consumption is expected to increase from 15.8% in 2024 to 17.4% by 2030, offsetting declines in demand for transportation fuel. It is therefore no surprise that oil and gas majors including Exxon Mobil (XOM.N) , opens new tab, Saudi Aramco (2222.SE) , opens new tab and the UAE’s Adnoc have invested heavily in petrochemicals, betting that rising demand for feedstocks will counterbalance the impact of electric vehicles on fuel consumption. China has also ramped up domestic production to boost petrochemical self-sufficiency. In the U.S., meanwhile, there has been a surge in cheap ethane production and thus petrochemical plants thanks to the shale boom that began in the early 2010s. GROWING PAINS Rapid petrochemicals production growth since 2022 has created a severe imbalance between supply and demand, putting heavy pressure on margins. Benchmark Chinese PDH margins, known as cracks, have been deeply negative for most of the past two years. Benchmark naphtha cracks have also turned negative in Asia, Europe and the U.S. in recent months. As a result, chemical producers worldwide have suffered a collapse in earnings. South Korean petrochemical producers LG Chem and Lotte Chemical posted losses in 2024. U.S. producer Dow Inc cut its dividend last month after reporting a second-quarter loss. Dow and German rival BASF (BASFn.DE) , opens new tab both cut full-year guidance, citing added pressure from global trade wars. Unfortunately for the sector, petrochemical overcapacity is expected to worsen. Supply is projected to exceed demand by 20–25% by 2030 as new plants come online, according to the Institute for Energy Economics and Financial Analysis. In short, the industry is in need of tightening. A CRISIS NOT WASTED Trump’s tariff might do just that. South Korea’s petrochemical industry – one of its top five export sectors and the backbone of its car and electronics industries – was hit hard after Trump announced 25% tariffs on imports from the Asian country on April 2. The tariffs were delayed and later reduced to 15% after a trade deal last month, but first-half revenue from South Korean petrochemical exports to the U.S. still fell by more than a fifth year on year, ING said in a note. The South Korean government, which has long urged the sector to restructure, responded by pushing 10 companies to cut annual naphtha-cracking capacity by 2.7 to 3.7 million metric tons, roughly a quarter of the country’s annual capacity of 14.7 million tons. In Europe, the petrochemicals sector’s distress has been compounded by high energy costs since the 2022 energy crisis, prompting plant closures in France, Germany and Britain. Dow said in July it will shut three sites in Germany and the UK. The weaker demand outlook because of the trade wars only adds to the pressure on plants. Crucially, China is reportedly considering an overhaul of its vast chemicals sector, targeting closure of ageing, loss-making plants as part of an “anti-involution” campaign, a buzzword for curbing destructive competition that erodes profit. Of course, cleaning up China’s petrochemical industry is likely to face resistance from local officials and will be dwarfed by new capacity additions, but any reduction would be welcome respite to the global market. LONG PATH The rapid expansion of petrochemical capacity, especially in China, has far outpaced demand growth, creating one of the worst crises in the sector’s history. Shrinking this bloated sector – and thus boosting profits – is likely to be a long process. Shell (SHEL.L) , opens new tab CEO Wael Sawan said last month that the “incredibly long” trough in the chemicals sector could persist for some time. So while Trump’s trade policies may feel like yet another painful blow, they could serve as the wake-up call the petrochemicals industry needs. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn and X. https://www.reuters.com/markets/commodities/trump-tariffs-force-much-needed-petrochemicals-contraction-2025-08-27/
