2025-04-16 07:49
JAKARTA, April 16 (Reuters) - Indonesia awarded five oil and gas blocks to companies, its energy ministry said on Wednesday, as it attempts to replenish its oil and gas reserves and improve its energy security. Over the coming years, the government plans to offer nearly 60 oil and gas blocks to try to reverse a decade-long decline in output. Sign up here. "The government hopes these auction winners will be able to contribute to Indonesia's energy security ahead," Tri Winarno, senior official at the Energy and Mineral Resources Ministry said in an online broadcast on Wednesday's awards. Indonesia awarded both the Gaea and Gaea II blocks in West Papua to a consortium comprising eight companies, including Enquest Petroleum Production Malaysia Ltd, BP Exploration Indonesia Ltd, CNOOC Southeast Asia Ltd. Gaea has estimated resources of 9.6 billion barrels of oil or 71.8 trillion cubic feet of gas, while Gaea II has estimated resources of 8.5 billion barrels of oil or 35.1 tcf of gas, Tri said. The government also awarded the Binaiya block in offshore Maluku, which has 6.7 billion barrels of oil and 15 tcf of gas potential, to state explorer PT Pertamina Hulu Energy, and Malaysia's Petronas unit PC North Mandura II Ltd and Korea's SK Earthon Co Ltd. PC North Madura II Ltd and SK Earthon, together with Japan's INPEX Corporation, were also awarded the Sepang block offshore East Java. The Kojo block in Makassar Strait was awarded to Armada Etan Ltd. Once a significant oil producer and a member of the Organization of the Petroleum Exporting Countries, Indonesia has grown increasingly reliant on imported energy. It has offered to increase energy imports from the United States as part of negotiations on tariffs. https://www.reuters.com/business/energy/indonesia-awards-five-oil-gas-blocks-seeks-energy-security-2025-04-16/
2025-04-16 07:17
April 16 (Reuters) - Malaysian oil and gas giant Petroliam Nasional IPO-PETO.KL said on Wednesday it has secured additional gas supplies to minimize supply disruptions caused by the huge fire at the Putra Heights pipeline earlier this month. PETRONAS Energy & Gas Trading (PEGT) has procured an extra 155 million standard cubic feet per day (MMSCFD) of gas, boosting the total supply volume to 400 MMSCFD via the Trans Thailand-Malaysia (TTM) gas pipeline system, the company said. Sign up here. This increased supply -- directed towards the northern region of Peninsular Malaysia, including Bestari Jaya, Meru and Kapar -- has helped stabilize supply, Petronas said. It said that it has also added an extra 86 MMSCFD supply to the Serdang City Gate for the Interconnected Klang Valley distribution network, a joint effort with Gas Malaysia Berhad (GASM.KL) , opens new tab to expand gas distribution network supply capacity. The fire earlier this month at the Petronas-operated pipeline affected at least 305 people, including those left homeless after some 190 homes were damaged, authorities said. It also led to interrupted gas supply in several areas, impacting four power plants initially, of which the Kapar and Serdang plants are now operating normally following the additional supply, Petronas said. It said it currently expects the restoration of the Putra Heights pipeline by July 1 at the earliest. https://www.reuters.com/business/energy/malaysias-petronas-secures-extra-gas-supply-after-hit-putra-heights-pipeline-2025-04-16/
2025-04-16 07:14
MOSCOW, April 16 (Reuters) - The Organization of the Petroleum Exporting Countries (OPEC) has received updated oil output compensation plans from eight countries that have exceeded voluntary production quotas within the OPEC+ group, it said on Wednesday. The countries are Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman. Sign up here. https://www.reuters.com/business/energy/opec-receives-oil-output-compensation-plans-eight-countries-2025-04-16/
2025-04-16 06:49
April 16 (Reuters) - The Indonesian Attorney General's Office said it has arrested an employee of global palm oil company Wilmar Group (WLIL.SI) , opens new tab on graft charges related to corruption in obtaining export permits, a day after the firm denied its staff were being investigated. The announcement came after a string of arrests, including four judges and two lawyers, by the Attorney General's Office, which says the judges took 60 billion rupiah ($3.57 million) to arrange for a favourable verdict against three companies, including Wilmar. Sign up here. The office said late on Tuesday that the suspect will be held for 20 days in a Jakarta prison. Wilmar told Reuters: "We are now assisting with investigations." On Monday, the company released a statement saying "investigations so far have not involved Wilmar Group or any of its employees". A court had last month acquitted three companies - Wilmar Group, Musim Mas Group, and North Sumatra-based Permata Hijau Group - on charges of misconduct in obtaining export permits in 2022. When the corruption charges were first brought against the companies, prosecutors were seeking fines and payments up to 11 trillion rupiah ($653.4 million). ($1 = 16,835.0000 rupiah) https://www.reuters.com/world/asia-pacific/indonesia-arrests-wilmar-employee-linked-palm-oil-graft-case-2025-04-16/
2025-04-16 06:47
U.S. issues new sanctions on Chinese imports of Iranian oil Global trade tensions dominate U.S. crude stockpiles rose last week, EIA data shows Chinese quarterly GDP growth beats expectations HOUSTON, April 16 (Reuters) - Oil prices rose nearly 2% on Wednesday to a two-week high on concerns about global supplies after Washington issued new sanctions targeting Chinese importers of Iranian oil. Brent crude futures settled up $1.18, or 1.8%, to $65.85 a barrel, while U.S. West Texas Intermediate crude ended $1.14, or 1.9%, higher at $62.47. Sign up here. Both benchmarks closed at their highest levels since April 3, according to data from LSEG. The U.S. on Wednesday issued new sanctions targeting Iran's oil exports, including against a China-based "teapot refinery", as President Donald Trump seeks to ramp up pressure on Tehran and drive Iranian oil exports down to zero. The action comes as the U.S. government has relaunched negotiations with Iran over its nuclear programme this month. Meanwhile, Iran's right to enrich uranium is not negotiable, Foreign Minister Abbas Araqchi said ahead of the next round of talks in Rome on Saturday. The Organization of the Petroleum Exporting Countries has received updated plans for Iraq, Kazakhstan and other countries to make further oil output cuts to compensate for pumping above agreed quotas, the group said, further buoying oil futures. Elsewhere, U.S. crude stockpiles rose while gasoline and distillate inventories fell last week, the Energy Information Administration said. Crude inventories rose by 515,000 barrels to 442.9 million barrels in the week ended April 11, the EIA said, compared with analysts' expectations in a Reuters poll for a 507,000-barrel rise. TRUMP TARIFFS The International Energy Agency said on Tuesday that global oil demand growth this year will be the lowest since 2020, when demand contracted due to the COVID-19 pandemic. "The level of the tariff increases announced so far is significantly larger than anticipated. The same is likely to be true of the economic effects, which will include higher inflation and slower growth," said Federal Reserve Chair Jerome Powell. Oil futures pared some gains after Powell gave his remarks. Trump has ratcheted up tariffs on Chinese goods, prompting Beijing to impose retaliatory duties on U.S. imports. "The world economy hinges in large part on whether the U.S. and China can come to an agreement and not start a prolonged trade war," Alex Hodes, director of market strategy at financial services firm StoneX, said in a note. A Bloomberg report quoted an anonymous source as saying that China wants more respect from the Trump administration before it will agree to trade talks, analysts said. "A de-escalation of the trade war between the U.S. and China would reduce the downside in economic growth prospects and limit the downside for oil demand growth," said UBS analyst Giovanni Staunovo. The uncertainty over trade tensions has led several banks, including UBS, BNP Paribas and HSBC, to cut their crude price forecasts. "Using a conservative estimate of a 15% decline in global GDP growth, based on the impact of the U.S.-China trade war of 2018-2019, we could see oil demand growth sputter to just 600,000 bpd in 2025, roughly half of our pre-tariff estimates," said Janiv Shah, vice president of commodity markets analysis at Rystad Energy. Data showed China's GDP grew 5.4% year-on-year in the first quarter, beating the 5.1% expected in a Reuters poll, but this growth is unlikely to continue through the year, said PVM Oil analyst Tamas Varga. https://www.reuters.com/business/energy/oil-subdued-markets-assess-effects-trade-war-2025-04-16/
2025-04-16 06:32
Nvidia, tech shares battered as US curbs chip sales to China Gold climbs 3.5%, dollar slides and safe havens jump Powell: Economy slowing in Q1, Fed remains in wait-and-see mode Treasury yields fall 4 bps BOSTON/LONDON, April 16 (Reuters) - Global shares fell sharply on Wednesday as U.S. restrictions on chip sales to China and continued tariff uncertainty battered tech stocks, while gold traded at record highs and support for the dollar continued to erode. Washington issued new export licensing requirements for sales to China of Nvidia's (NVDA.O) , opens new tab H20 and AMD's (AMD.O) , opens new tab MI308 artificial intelligence chips. Nvidia said the move would cost it $5.5 billion and its shares slumped nearly 7%. Sign up here. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell about 1.5%. "Capital markets remain caught between news about new tariffs and, on the other hand, about tariff negotiations or suspensions," Paul Christopher, a strategist with the Wells Fargo Investment Institute, wrote in a note on Wednesday. The Dow Jones Industrial Average (.DJI) , opens new tab fell 1.7%, the S&P 500 (.SPX) , opens new tab dropped 2.2%, and the tech-heavy Nasdaq Composite (.IXIC) , opens new tab slumped 3.1%. U.S. Federal Reserve Chair Jerome Powell said on Wednesday the Fed would wait for more data on the economy's direction before changing interest rates, and characterized recent market volatility as a logical processing of the Trump administration's dramatic shifts in tariff policy. "Powell is doing what the rest of us are doing - waiting and watching," Jamie Cox, managing partner for Harris Financial Group, said in an email. "The Federal Reserve won't act unless and until either the labor market turns or there is a systemic risk, such as a breakdown in the payment system." Data on Wednesday showed that U.S. retail sales surged in March as households boosted purchases of motor vehicles ahead of tariffs, though concerns about the economic outlook are hurting discretionary spending. President Donald Trump on Tuesday ordered a probe into potential new tariffs on all imports of critical minerals, on top of reviews into pharmaceutical and chip imports. Beijing is continuing to play hardball, having reportedly ordered airlines to suspend deliveries of Boeing (BA.N) , opens new tab aircraft. EUROPE, ASIA SHARES ALSO LOWER European stocks fell, with the STOXX 600 index (.STOXX) , opens new tab down 0.2%, also hit by declining tech company shares. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab fell 0.8%, snapping a four-day winning streak. Chinese blue chips (.CSI300) , opens new tab rose 0.3%, as investors also digested some solid GDP data that pre-dated the tariff increases in April, but the Hong Kong Hang Seng index fell 1.9%. "The broader focus still remains on tariffs," said Aneeka Gupta, economist and strategist at WisdomTree. "In China, we've had the restrictions raise concerns that access to global tech hardware would be further choked off," Gupta said. "That's also resulting in a bit of a risk-off sentiment in the market." The White House said Trump is open to making a trade deal with China but Beijing should make the first move. The World Trade Organization sharply cut its forecast for global merchandise trade from solid growth to a decline on Wednesday, saying further U.S. tariffs and spillover effects could lead to the heaviest slump since the height of the pandemic. TREASURIES DOWN, GOLD SHINES The uncertainties left gold in an unstoppable position, with bullion hitting another record high of $3,339 per ounce, last up 3.5%. Australian bank ANZ on Wednesday updated its forecast for gold to hit $3,600 an ounce by year-end, saying safe-haven demand for the asset would accelerate. U.S. Treasury yields fell after comments from the Fed's Powell stoked concerns about economic growth and inflation pressures. The benchmark 10-year Treasury yield fell 4 basis points to 4.283%, after yields surged last week on concerns about the stability of the U.S. economy. Traders of short-term interest-rate futures are betting the Fed resumes rate cuts in June and that by year-end the policy rate, currently in the 4.25%-4.50% range, will be a full percentage point lower. The U.S. dollar index, which tracks the currency against six peers, slid 0.7% to around its lowest since April 2022 in a sign investors remained cautious about U.S. assets . The Japanese yen and Swiss franc, seen as safe assets during market turbulence, rallied around 0.8% and 1.2%, respectively. The yen was trading around its highest level since September while the franc was at its highest in 10 years . Bank of Japan Governor Kazuo Ueda told the Sankei newspaper that the central bank may need to take policy action if U.S. tariffs hurt the Japanese economy, signaling the potential to pause the bank's rate-hiking cycle. Oil prices read more to a two-week high on concerns about global supplies after Washington issued new sanctions targeting Chinese importers of Iranian oil. In cryptocurrencies, bitcoin added 0.5% to $84,389, down nearly 10% for the year. https://www.reuters.com/markets/global-markets-wrapup-1-2025-04-16/
