2025-10-28 22:28

Slovnaft keen to diversify from Russian crude Move 'jeopardises' supply of non-Russian fuel to Central Europe Slovnaft perceives cut as breach of contract Janaf denies breaching terms of contract Oct 28 (Reuters) - (This Oct 28 story has been corrected to clarify that an exemption from EU sanctions has expired, in paragraph 3) Slovak refiner Slovnaft said on Tuesday that Croatian pipeline operator JANAF (JANF.ZA) , opens new tab had reduced deliveries of non-Russian crude to it for technical reasons, hitting its efforts to refine fuel from other sources. Sign up here. Janaf responded denying Slovnaft's assertion that it was in breach of contract. Slovnaft, part of Hungary's oil and gas group MOL (MOLB.BU) , opens new tab, mostly processes Russian oil and an exemption to EU sanctions that allowed it to export products to the Czech Republic derived from those deliveries expired in June. It has sought to raise the amount of non-Russian crude at its refinery and was due to have a mix of 50% of non-Russian crude in October and November, according to a spokesman. SLOVNAFT SAYS ISSUE JEOPARDISES NON-RUSSIAN FUEL SUPPLIES But Slovnaft is facing the loss of 90,000 tonnes of deliveries of Arab Light crude via Janaf, which Slovnaft spokesman Anton Molnar said has told it that volume is needed to help push other volumes through the system. "Janaf told us they need this technological amount because they stopped supplying Serbia's NIS after the U.S. administration sanctioned them," he said. Earlier this month, Janaf said in a statement that it had delivered everything in its system owned by Russian-owned NIS (NIIS.BEL) , opens new tab following the sanctions. Replacing the volume cannot be done quickly, impacting Slovnaft's refining schedule, Molnar said. "They seriously jeopardise the supply of non-Russian fuel to Central Europe," he said, adding that Slovnaft had informed Janaf that it considered the Croatian company in breach of contract. JANAF SAYS CONTRACT BREACH ACCUSATION 'FALSE AND UNFOUNDED' Responding to Reuters, Janaf said oil transport through its system was being carried out according to the transport schedule and in full compliance with its agreement with Slovnaft. "We firmly reject the claims made by Slovnaft ... regarding breaches of the contract provisions as false and unfounded," it said in a statement. It called on the MOL Group to increase its utilisation of the oil pipeline's capacity. "The current use of the pipeline by the MOL Group is significantly below the contracted and customary business practice in the oil pipeline transport sector," it said. The Adriatic pipeline from Croatia is a key route for alternative supplies for Hungary and Slovakia, which have long relied mostly on Russian crude via the Druzhba pipeline. Hungarian and Slovak officials have worried over the Adriatic's capacity and costs. JANAF transports 2.1 million metric tons of crude oil to MOL's refineries in Hungary and Slovakia this year under an existing deal. In 2024, Slovnaft processed a total 4.8 million tonnes of crude, of which 662,000 tonnes were alternative types. Slovakia and Hungary, which both differ with the EU over Brussels' approach to the war in Ukraine, are also facing their own questions over U.S. sanctions on Russian oil companies Lukoil and Rosneft. Hungarian Prime Minister Viktor Orban said last week that Hungary was working on finding a way to circumvent those sanctions and he is expected to meet President Donald Trump next week to discuss the sanctions. https://www.reuters.com/business/energy/slovak-refiner-slovnaft-says-croatias-janaf-cuts-supply-non-russian-crude-2025-10-28/

2025-10-28 21:48

Exxon was awarded the block this year, marking its return to the Caribbean nation Venezuela suspended all energy pacts with Trinidad this week Declares Trinidad's prime minister persona non grata Trinidad will not give further details to Venezuela about the work HOUSTON/CARACAS, Oct 28 (Reuters) - Venezuela is seeking location and other details from Trinidad and Tobago about the first field tests to be conducted by Exxon Mobil (XOM.N) , opens new tab in an ultra-deepwater area it was recently awarded in the Caribbean country, according to two sources and a document seen by Reuters. Venezuela's Vice President and oil minister Delcy Rodriguez demanded information on Exxon's plans, including if potential finds could extend into Venezuela's territory. She relayed this in a meeting she called with the dual-island nation's acting head of its mission to Caracas, Dayne-Marc Chin Slick, earlier this month, according to a diplomatic note he sent to Trinidad's Foreign Minister. Sign up here. Exxon was awarded the block earlier this year, marking its return to Trinidad for oil and gas exploration activities. The block is near the maritime border with Venezuela and northwest of the prolific Stabroek block Exxon operates in nearby Guyana. Venezuela's National Assembly declared Trinidad's prime minister persona non grata on Tuesday, in a further deterioration of bilateral relations. Venezuela on Monday suspended a wide energy pact with the country, including several joint gas projects, after President Nicolas Maduro criticized what he called its pro-U.S. stance amid ongoing military escalation in the region. A similar standoff with Guyana in recent years led to the suspension of Exxon's drilling in the north portion of the Stabroek block, which was declared in force majeure due to Exxon's inability to complete exploration work there. Rodriguez told Trinidad's acting head of mission Chin Slick that, under Article 8 of a delimitation treaty on territorial borders, either country has to inform the other of any planned exploration as long as the area is within 500 meters (1,640 feet) of the border, according to the diplomatic note. Trinidad and Venezuela sit just six miles (9.7 km) away at their closest point. Trinidad is prepared to inform Venezuela about a seismic survey Exxon plans next year, but will not give further details about the work plan or say if there is potential for a discovery extending into Venezuela, since none has been made, the internal Trinidad government memo showed. "The Government of Trinidad and Tobago is bound by confidentiality provisions and, as a consequence, specific and detailed information on Exxon Mobil's operations for Block TTUD 1 cannot be disclosed," the Foreign Ministry's memo stated. Exxon declined to comment. Trinidad's energy ministry, and Venezuela's information and oil ministries did not immediately respond to requests for comment. Up until April, when Trinidad's government changed, the two countries had close relations, with Caracas granting a license to Shell (SHEL.L) , opens new tab and Trinidad's National Gas Company (NGCTT.UL) to develop the 4.2-trillion-cubic-foot Dragon gas field in Venezuelan waters. Venezuela also agreed in 2020 not to object to Trinidad's plans to develop its share of the 10 TCF Loran-Manatee gas field. About 73% of the reserves lie on the Venezuelan side of the border. However, bilateral relations have become complicated since Trinidad's new Prime Minister Kamla Persad-Bissessar arrived. Rodriguez said this week Trinidad's attitude towards Venezuela was "hostile." https://www.reuters.com/business/energy/venezuela-asks-trinidad-provide-details-exxon-field-tests-sources-say-2025-10-28/

2025-10-28 21:43

Oct 28 (Reuters) - U.S. pipeline operator ONEOK (OKE.N) , opens new tab reported a rise in third-quarter profit on Tuesday, helped by robust volumes in the Rocky Mountain region as well as the impact of a series of acquisitions. ONEOK has been diversifying its portfolio through acquisitions over the past two years, including a Gulf Coast NGL pipeline system from Easton Energy, as well as Medallion Midstream and EnLink Midstream. Sign up here. In June, ONEOK completed its $940 million acquisition of the remaining 49.9% stake in the Delaware Basin joint venture from NGP XI Midstream Holdings, giving the company sole ownership of natural gas gathering and processing facilities in West Texas and New Mexico's Delaware Basin. Core profit from the natural gas liquids segment rose nearly 20% to $748 million, while the natural gas gathering and processing segment's core profit jumped roughly 78% to $566 million from a year earlier. Its refined products and crude segment rose to $582 million in core profit during the quarter, primarily driven by the Medallion and EnLink acquisitions. ONEOK transports natural gas, natural gas liquids, refined products and crude oil through its 60,000-mile-long network of pipelines. The Tulsa, Oklahoma-based company reported net income attributable to shareholders of $939 million, or $1.49 per share, for the quarter ended September 30, compared with $692 million, or $1.18 per share, a year earlier. https://www.reuters.com/business/oneok-posts-higher-third-quarter-profit-acquisitions-pay-off-2025-10-28/

2025-10-28 21:42

Oct 28 (Reuters) - U.S. Health Secretary Robert F. Kennedy Jr. ordered the Centers for Disease Control and Prevention staff to probe the potential harms of offshore wind farms, Bloomberg News reported on Tuesday, citing people familiar with the matter. The move is part of a broader push by the Trump administration to scrutinize offshore wind development, which Trump himself has repeatedly criticized. Sign up here. In late summer, the Department of Health and Human Services, headed by Kennedy, instructed CDC's National Institute for Occupational Safety and Health, or NIOSH, to prepare research about wind farms' impact on fishing businesses, the report said. Kennedy has met NIOSH director John Howard about the issue and listed particular experts for Howard's team to contact, Bloomberg reported. "Work on this report has been halted solely due to the Democrat-led government shutdown," an HHS spokesperson told Reuters. The report added that the office of the U.S. surgeon general has also been involved in the initiative, which the HHS, prior to the ongoing government shutdown, aimed to have completed within a couple of months. https://www.reuters.com/business/healthcare-pharmaceuticals/rfk-jr-directs-cdc-study-alleged-harms-offshore-wind-farms-bloomberg-news-2025-10-28/

2025-10-28 21:18

HOUSTON, Oct 28 (Reuters) - Gold Reserve (GRZ.V) , opens new tab has asked the U.S. Court of Appeals for the Third Circuit to stay all further proceedings of the auction of Citgo Petroleum's parent until the company's motion to disqualify the judge, a court officer and two advising firms overseeing the auction is resolved, according to a petition filed on Tuesday. Sign up here. https://www.reuters.com/legal/litigation/gold-reserve-asks-us-court-appeals-stay-citgo-parent-auction-proceedings-2025-10-28/

2025-10-28 21:06

ORLANDO, Florida, Oct 28 (Reuters) - Another wave of U.S. tech euphoria lifted Wall Street to new highs on Tuesday, this time in the shape of a deal between Microsoft and OpenAI, a day ahead of a clutch of U.S. Big Tech earnings and the Federal Reserve's policy decision. In my column today, I look at the U.S. stock markets' record concentration and the iron grip 'Big Tech' has on Wall Street. By global standards, however, the U.S. isn't actually that top-heavy at all. Sign up here. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Today's Talking Points * Tech venture mania Another strand was added to the tangled U.S. tech and artificial intelligence ecosystem on Tuesday as Microsoft and OpenAI reached a deal to allow the ChatGPT maker to restructure itself into a public benefit corporation, valuing OpenAI at $500 billion. Many Big Tech firms have commitments, joint ventures, or tie-ups worth hundreds of billions of dollars with one another. OpenAI and Nvidia are two of the most involved. Skeptics argue not all will play out as flagged and concentration risk is only increasing, but for now, they are enough to keep the AI-fueled market juggernaut going. * U.S. job losses mount Amazon and UPS on Tuesday announced combined job losses of at least 62,000, among the biggest round of publicly confirmed job cuts in a year that has seen a slow, steady drumbeat of firms shedding workers. How much this gets on Fed officials' radar remains to be seen. But at the very least, and with no economic data being released due to the government shutdown, it is a sign that the labor market is weakening, perhaps even more than they have bargained for. * Fed to deliver The Federal Reserve is widely expected to cut interest rates again on Wednesday by a quarter of a percentage point, and according to rates futures markets, repeat the move in December and at least twice more next year. Let's see what signals Chair Jerome Powell gives about that. There may also be some big changes around the Fed's balance sheet and the plumbing of the U.S. banking system, with the Fed perhaps announcing it will end QT soon. Indeed, this could open up the possibility of the Fed buying bonds or bills in the near future. US stock market concentration is less extreme than you think With Wall Street scaling fresh peaks and five of the "Magnificent Seven" U.S. tech giants reporting earnings this week, investors' focus is once again zeroing in on record-high stock market concentration and the risks associated with it. But this concern may be overblown. This is not a new debate, but it has raged in the last two years, particularly with the explosion in Nvidia's share price. The chipmaker's market cap has quadrupled since 2023 to $4.5 trillion, lifting the Mag 7's share of the S&P 500 above the 30% mark. However, surprising as it may be to many market-watchers, concentration on Wall Street is not that extreme by global standards. In fact, the U.S. lags well behind many developed economies when it comes to equity market concentration, and even further behind some key emerging economies. AMERICAN UNEXCEPTIONALISM When looking at a dozen of the world's largest stock markets, the U.S. is actually the fifth-least concentrated, according to Michael J. Mauboussin and Dan Callahan at Morgan Stanley. The top 10 U.S. stocks accounted for 33.8% of total market cap at the end of September this year. Only India, Japan, China and Canada were less concentrated, while concentration was most extreme in France, Taiwan and Switzerland. It should be noted, however, that Taiwan is an outlier, heavily skewed by Taiwan Semiconductor Manufacturing Co, the world's biggest producer of advanced chips. On its own, TSMC accounts for over 40% of the country's entire stock market cap. Meanwhile, equity market concentration appears to be intensifying in key emerging economies, primarily driven by tech. That was the conclusion of research published this year by Morningstar's Lena Tsymbaluk and Michael Born. They analyzed China, Brazil, South Korea, Taiwan and India, five countries that account for 80% of the Morningstar Emerging Markets Target Market Exposure Index. Morningstar's Target Market Exposure indices include a country's or region's 75% most liquid stocks in terms of trading volume and turnover. Based on these criteria, the top five stocks at the end of last year represented 27% of India's market compared with 35% in China, 46% in South Korea, 47% in Brazil, and 72% in Taiwan. For comparison, the equivalent shares in Morningstar's U.S., UK and global TME indexes were 26%, 17.5%, and 33%, respectively. For all the fretting that Wall Street's eggs are all in the one Big Tech basket, concentration risk is more extreme in other countries - something that U.S.-based investors seeking to diversify their portfolios by going into overseas markets should perhaps bear in mind. DOES IT MATTER? This all raises the inevitable question of whether market concentration really matters. To be sure, it is hard to "beat the market" when mega-cap stocks make outsize gains. That is often the case during periods of high concentration, as returns tend to be driven by the handful of stocks at the top rather than all the individual names underneath. Look no further than the U.S. for evidence of this. Only 8% of surviving active funds in the U.S. large-cap blend category beat the passive alternative over the decade ending June 2024, according to Morningstar. The Mag 7's footprint in U.S. earnings and performance is simply too large. There are also concerns that high concentration increases risk, given that one is essentially betting on the performance of a handful of companies. In the U.S., many worry that the tech bubble – or, more specifically, the artificial intelligence bubble – will burst. With valuations so high, Cassandras fear that this top-heavy market will simply keel over. But obviously none of those outcomes has come to pass. Of course, there may be a day of reckoning, but it may not be for some time. And it is certainly not inevitable, given the strength of these tech giants' earnings and how entrenched investors' "buy the dip" mentality has become. It is ultimately a classic risk-reward dilemma. If you want a more balanced portfolio, diversify more because a sharp reversal in tech could trigger an outsized downturn. If you want to keep enjoying the returns generated by the biggest names, there is no need to rock the boat. Currently, the bigger risk may be betting on a reversal too soon. As the market maxim goes, being too early is the same as being wrong. What could move markets tomorrow? Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/world/china/global-markets-trading-day-graphic-2025-10-28/