2025-07-02 07:21
July 2 (Reuters) - Iranian President Masoud Pezeshkian on Wednesday put into effect a law passed by parliament last month to suspend cooperation with the U.N. nuclear watchdog IAEA, Iranian state media reported. Sign up here. https://www.reuters.com/world/middle-east/iran-enacts-law-suspending-cooperation-with-un-nuclear-watchdog-2025-07-02/
2025-07-02 07:14
NE Asia ships up to 465,000 tons of jet fuel to Europe in June, sources say Mideast supply disruption fears boosted east-west arbitrage Newly-built LR2 tankers provide lower freight rates SINGAPORE, July 2 (Reuters) - Traders shipped the most jet fuel from Northeast Asia to Europe in almost a year in June as lower freight rates and ample Asian supplies spurred exports, according to shiptrackers and three trade sources, amid fears of a Middle East supply disruption. Some 350,000 metric tons (2.8 million barrels) of aviation fuel is heading to Europe from South Korea and China, Kpler data showed, with some trader estimates at 465,000 tons for bookings made in June. Sign up here. These shipments are expected to slightly ease Asia's jet fuel oversupply and provide a floor to prices in the near term, analysts said. Vitol, BP (BP.L) , opens new tab, Aramco Trading, Gunvor and Unipec, the trading arm of Asia's largest refiner Sinopec (600028.SS) , opens new tab, chartered the five tankers that loaded in June, the data showed. Vitol and Saudi Aramco declined to comment on the matter, while Gunvor, Unipec and BP did not immediately respond to requests for comment. Northeast Asia jet fuel exports rose in June as refiners increased production after completing maintenance at their plants and as "product cracks" strengthened, Vortexa's head of APAC analysis Ivan Mathews said, referring to fuel profit margins. Traders mainly pivoted their spot cargoes to the West to cash in on lucrative margins and a drop in freight rates, given a lack of spot buying interest from regional importers recently, two Singapore-based trade sources said. These trade flows "were purely opportunistic, spurred by geopolitical tensions that sent Northwest Europe cracks surging, while freight rates on modern newbuild vessels remained attractive enough to justify the move", said Kpler senior lead research analyst Zameer Yusof. Physical jet fuel prices in Northwest Europe were $60 to $80 per ton higher than in Asia for most of June, LSEG data showed. Europe's jet fuel demand typically rises in summer, a peak travel season. June flight numbers there were up 5.2% on year and 7.8% on month, a Eurocontrol report showed. At the same time, jet fuel prices in Europe rose on fears supply might be disrupted due to conflict in the Middle East. Meanwhile, the cost to ship 90,000 tons of jet fuel on LR2 tankers fell to a one-month low of about $40 to $45 per ton for bookings made before the Iran-Israel conflict began on June 13. At least four new LR2 vessels have been booked to carry jet fuel from east to west in June and July, data from two shipping sources showed. Typically, maiden voyages on new vessels will be cheaper because some owners want to accumulate tracking history and mileage, one shipbroking source said. But analysts did not expect Asian jet fuel prices to rise with the increase in exports to Europe. "Asia remains chronically net long jet/kero by around 625 kbd in June and July, and Europe-bound flows won’t make a meaningful dent in that surplus," Kpler's Yusof said. "It's hard to stay constructive when China is targeting jet/kero exports exceeding 2 million tons per month." China exported 1.92 million tons of jet fuel in May, up 20% on year. https://www.reuters.com/business/energy/northeast-asia-sends-most-jet-fuel-europe-nearly-year-june-2025-07-02/
2025-07-02 07:00
JAKARTA, July 2 (Reuters) - Indonesia plans to cut the duration of mining quotas back to one year from the current three years to improve governance in the sector and better control coal and ore supplies, mining minister Bahlil Lahadalia said on Wednesday. Resource-rich Indonesia extended the validity of mining production quotas, locally known as RKAB, to three years in 2023 to ease red tape. Sign up here. Miners in Indonesia are required to seek RKAB approval to determine how much ore they may dig out over a period of time. "Because we allowed three-year RKAB, we could not control the balance between coal production and global demand ... Same thing happened to nickel, as well as bauxite," Bahlil told members of parliament. The switch back to one year was proposed to the minister by lawmakers overseeing the mining sector. The move is expected to help underpin prices of coal and ores and boost government revenues, Bahlil added. https://www.reuters.com/markets/commodities/indonesia-plans-cut-mining-quota-period-back-one-year-minister-says-2025-07-02/
2025-07-02 06:40
Iran suspending cooperation with IAEA boosts geopolitical risk premium: analyst Weaker US dollar supportive of oil prices Up next: official US crude inventory report from EIA at 1430 GMT LONDON, July 2 (Reuters) - Oil futures edged up on Wednesday as Iran suspended cooperation with the U.N. nuclear watchdog and markets weighed expectations of more supply from major producers next month while the U.S. dollar softened further. Brent crude added 92 cents, or 1.4%, to $68.03 a barrel at 1125 GMT, while U.S. West Texas Intermediate crude rose 89 cents, or 1.4%, to $66.34 a barrel. Sign up here. Brent has traded between a high of $69.05 a barrel and low of $66.34 since June 25, as concerns of supply disruptions in the Middle East producing region have ebbed following the ceasefire between Iran and Israel. Iran put into effect a law on Wednesday that stipulates that any future inspection of its nuclear sites by the International Atomic Energy Agency needs approval by Tehran's Supreme National Security Council. The country has accused the institution of siding with Western countries and providing a justification for Israel's air strikes. "The market is pricing in some geopolitical risk premium from Iran's move on the IAEA," said Giovanni Staunovo, commodity analyst at UBS. "But this is about sentiment, there are no disruptions to oil." Planned supply increases by the Organization of the Petroleum Exporting Countries and its allies including Russia, know as OPEC+, appear already priced in by investors and are unlikely to catch markets off-guard again imminently, said Phillip Nova senior market analyst Priyanka Sachdeva. Four OPEC+ sources told Reuters last week the group plans to raise output by 411,000 barrels per day next month when it meets on July 6, a similar amount to hikes agreed for May, June and July. "We are all talking about additional supply coming to the market, but the supply has not really hit the market," Staunovo said. "Probably because it's being consumed domestically." Saudi Arabia lifted shipments in June by 450,000 bpd from May, according to data from Kpler, its highest in more than a year. However, overall OPEC+ exports are relatively flat to slightly down since March, Staunovo said. He expects this to persist over the summer as hot weather drives higher energy demand. The greenback continued to weaken, falling to a 3-1/2-year low against major peers earlier on Wednesday. A weaker dollar tends to support oil prices, as it could boost demand for buyers paying in other currencies. U.S. non-farm payrolls data due on Thursday will shape expectations around the depth and timing of interest rate cuts by the Federal Reserve in the second half of this year, said Tony Sycamore, analyst at IG. Lower interest rates could spur economic activity which would in turn boost oil demand. Official U.S. oil stockpile data from the Energy Information Administration is due Wednesday at 10:30 a.m. ET. American Petroleum Institute data late on Tuesday showed U.S. crude oil inventories rose by 680,000 barrels in the past week at a time when stockpiles typically draw amid the summer demand season, sources said. https://www.reuters.com/business/energy/oil-prices-little-changed-investors-look-ahead-opec-meeting-2025-07-02/
2025-07-02 06:34
MADRID, July 2 (Reuters) - Spain's Zelestra has secured a 235 million euro ($277 million) increase to an existing loan scheme which will help it develop renewable energy projects in Europe, the U.S and elsewhere, Chief Executive Leo Moreno told Reuters. Owned by Swedish investment firm EQT (EQTAB.ST) , opens new tab and previously known as Solarpack, Zelestra has been expanding beyond solar power to wind energy and storage assets. Sign up here. The sustainability-linked financing, provided by a pool of 11 banks, dates back to 2023. This marks the second increase after one last year and brings the value of the loan to 770 million euros, CFO Xavier Puig said. The loan now has an extra year before it matures - which will be in March 2029, he added. Zelestra has more than 5 gigawatts (GW) contracted in long-term agreements with customers and plans to have 9 GW by the end of next year, Moreno said. The funds will be used to fuel growth in its core markets: the U.S., Spain, Italy, Germany, India and Latin America. "The large increase of this corporate facility demonstrates the confidence that the financing sector has in us," he said. Credit Agricole CIB is the agent bank for the loan while HSBC is the sustainability advisor. Zelestra has a pipeline of 29 GW of renewables projects at various stages of development. It wants to reach 40 GW by the end of next year. It has earmarked 5 billion euros through 2026 to fuel its growth, part of which has been invested in projects that are now operating. ($1 = 0.8475 euros) https://www.reuters.com/sustainability/climate-energy/spains-zelestra-gains-an-extra-280-million-financing-renewable-energy-projects-2025-07-02/
2025-07-02 06:31
US Senate passes Trump's sweeping tax and spending bill US non-farm payrolls report due on Thursday July 2 (Reuters) - Gold prices edged higher on Wednesday as investors shifted their focus to the U.S. fiscal situation and lingering uncertainty ahead of the July 9 deadline for U.S. tariffs to take effect. Spot gold was up 0.1% at $3,340.67 per ounce at 1157 GMT. U.S. gold futures were steady at $3,351.10. Sign up here. "The markets are again focused on the U.S. fiscal situation ... and combined with uncertainty about the July 9 tariff deadline, these create fog for traders, who are directing flows towards safe-haven assets like gold," said Ricardo Evangelista, senior analyst at brokerage ActivTrades. U.S. Senate Republicans narrowly passed President Donald Trump's tax and spending bill on Tuesday, a package cutting taxes, reducing social safety net programmes and boosting military spending while adding $3.3 trillion to the national debt. "We still think debt level concerns, ongoing pressure on the Fed to adjust their rates and weaker U.S. economic data will support the price of gold," said UBS commodity analyst Giovanni Staunovo. Data on Tuesday showed U.S. job openings increased unexpectedly in May, but a decline in hiring added to signs that the labour market has shifted into lower gear. Fed Chair Jerome Powell reiterated that the U.S. central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts. The focus now shifts to U.S. ADP employment data due later in the day, followed by June non-farm payroll figures on Thursday, for further insights into labour market conditions. In other precious metals, spot silver gained 0.5% to $36.24 an ounce, platinum rose 2.2% to $1,380.31 and palladium climbed 2% to $1,122. https://www.reuters.com/world/india/gold-prices-ease-ahead-us-data-investors-weigh-fed-rate-stance-2025-07-02/
