2025-09-11 11:49
IEA expects oversupply to increase with OPEC output boost EIA reports bigger than expected rise in oil stocks US consumer prices data due later on Thursday LONDON, Sept 11 (Reuters) - Oil prices fell on Thursday, pressured by concerns over softening U.S. demand and broad oversupply that offset threats to output from conflict in the Middle East and the Russian war in Ukraine. Brent crude futures were down 63 cents, or 0.9%, at $66.86 a barrel by 1139 GMT while U.S. West Texas Intermediate crude futures lost 68 cents, or about 1.1%, to $62.99. Sign up here. The benchmark contracts gained more than $1 each on Wednesday after Israel's attack on Hamas leadership in Qatar the previous day and the mobilisation of Polish and NATO air defences to shoot down suspected Russian drones that had strayed into Poland's airspace during an attack on western Ukraine. However, the International Energy Agency said in its monthly report that world oil supply will rise more rapidly than expected this year as OPEC+ members increase output further and supply from outside the group grows, with limited expansion in demand. "Our market is torn between perceived supply shortage due to the rise in tension in the Middle East and Ukraine and actual oversupply as reflected in rising OPEC+ production and swelling stocks implied in the weekly and monthly EIA reports," PVM Oil Associates analyst Tamas Varga said. While the uncertainty around secondary sanctions against Russian oil buyers China and India also puts a floor under the market, prices should resume their fall once those tensions ease, he added. U.S. crude inventories rose by 3.9 million barrels in the week to September 5, the Energy Information Administration said, against expectations of a draw of 1 million barrels. A softer U.S. economy, meanwhile, has raised expectations that the Federal Reserve will cut interest rates next week. "Traders are taking a more cautious stance ahead of the upcoming U.S. inflation report (later on Thursday), with expectations of more significant Federal Reserve rate cuts already factored in, which could be unsettled by a warmer than expected CPI report," said IG market analyst Tony Sycamore. The Organization of the Petroleum Exporting Countries and allies, a group collectively known as OPEC+, on Sunday decided to raise production from October. OPEC is due to issue its monthly oil market report at 1200 GMT. Saudi Arabia's crude oil exports to China are set to surge in October after a deep cut in prices, several trade sources told Reuters on Thursday, with Aramco shipping about 1.65 million barrels per day in October, compared with 1.43 million bpd allocated in September. https://www.reuters.com/business/energy/oil-prices-fall-nearly-1-oversupply-weaker-us-demand-2025-09-11/
2025-09-11 11:47
ATHENS, Sept 11 (Reuters) - The United States wants to expand its energy ties with Greece, U.S. Interior Secretary Doug Burgum said during a visit to Athens on Thursday, as the Trump administration works to further reduce Russia's oil and gas supplies to Europe. Burgum has been in Europe this week aiming to seal energy supply deals, which the U.S. hopes will strengthen its influence in the region while weakening Russia's. Sign up here. On Wednesday, Greece announced that a consortium including oil major Chevron (CVX.N) , opens new tab had bid to explore for natural gas in its waters. "The Trump administration has a couple of goals around energy and one of those is energy abundance, so energy to our friends and our allies so they do not have to buy from our adversaries," Burgum told Prime Minister Kyriakos Mitsotakis during a meeting in Athens. A ban on seaborne Russian crude oil has cut the EU's Russian oil imports by 90%, but Hungary and Slovakia still import via a pipeline. Europe is expected to purchase about 13% of its gas from Russia this year, though that is down from 45% before Russia's 2022 invasion of Ukraine, EU data shows. The U.S. has pressured the EU to accelerate the phase out Russian fossil fuels to reduce funds for Moscow's war chest. Part of that push is to offer more of its abundance of shale gas and oil reserves in export deals. Greece's imports of U.S. liquefied natural gas increased by 95% in the first half of this year. A controversial maritime deal signed in 2019 has strained Greece's relations with Libya and Turkey. However, some of the blocks in which Chevron is interested are offshore Crete near one of the disputed areas. Greece has taken that as tacit U.S. support for its maritime boundaries. "It's a very interesting coincidence that you come a day after Chevron officially submits interest to start exploratory work in areas south of Crete, confirming the sovereign rights of the Hellenic Republic in that area," Mitsotakis told Burgum. https://www.reuters.com/business/energy/us-eyes-stronger-energy-ties-with-greece-says-interior-secretary-2025-09-11/
2025-09-11 11:34
SINGAPORE, Sept 11 (Reuters) - Saudi Arabia's crude oil exports to China are set to surge in October after a deep cut in prices, several trade sources said on Thursday. State oil company Saudi Aramco (2222.SE) , opens new tab will ship about 51 million barrels to China in October, about 1.65 million barrels per day (bpd), a tally of allocations to Chinese refiners showed. Sign up here. The October plan compares with 1.43 million bpd allocated in September and matches the volume in August which was the highest since April 2023. Companies which planned to increase Saudi crude liftings next month were Asia's top refiner Sinopec (600028.SS) , opens new tab, Hengli Petrochemical (600346.SS) , opens new tab and Shenghong Petrochemical, the sources said. Aramco did not immediately respond to a request for comment about its October allocation to China. Earlier Reuters reported that Aramco spoke to Asian buyers on the sidelines of this week's APPEC conference in Singapore, nudging them to lift more crude in October as it seeks to reclaim market share. The state producer set the October price for its flagship Arab Light crude to Asia at $2.20 a barrel above the Oman/Dubai average, down $1 per barrel from a five-month high in September. The price cut followed a weekend decision by the Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, to raise production by 137,000 barrels per day in October. The group, which is led by Saudi Aramco and pumps about half of the world's oil, has already boosted production targets by 2.5 million bpd since April, equivalent to about 2.4% of global demand. https://www.reuters.com/business/energy/saudi-crude-oil-supply-china-set-surge-october-trade-sources-say-2025-09-11/
2025-09-11 11:08
LONDON, Sept 11 (Reuters) - Britain’s largest electricity supplier Octopus Energy has signed a deal with Chinese wind turbine manufacturer Ming Yang Smart Energy (601615.SS) , opens new tab, which could see the first Chinese made turbines installed in Britain. Britain is seeking to scale up renewable power to help meet its climate targets but is also grappling with rising project costs and high electricity prices. Sign up here. The partnership, announced on Thursday, will see the companies explore opportunities to use Ming Yang Smart Energy’s technology as part of Octopus Energy's plans to develop up to 6 gigawatts of wind through its Winder initiative, which matches communities that would like wind farms with project developers. “By combining Octopus’s expertise in smart technology and software with outstanding wind turbines, we can optimise every kilowatt and cut energy costs for millions of bill payers,” Zoisa North-Bond, CEO of Octopus Energy Generation, said in a statement. Elsewhere in Europe, the European Commission last year launched a review into Chinese turbine manufactures in response to industry concerns that cheaper imports could threaten the competitiveness of European firms. Ming Yang Smart Energy was due to supply turbines for a 300-megawatt Waterkant wind farm in Germany under a deal announced last year, but Hamburg-based asset manager Luxcara said last month it had instead chosen Siemens Gamesa, a subsidiary of Germany's Siemens Energy as its supplier. Britain’s Energy Minister Ed Miliband visited China earlier this year to discuss climate and energy issues, and has said it would be negligent to not engage with China on climate issues. https://www.reuters.com/sustainability/boards-policy-regulation/britains-octopus-energy-partners-with-chinese-wind-turbine-maker-2025-09-11/
2025-09-11 11:00
LITTLETON, Colorado, Sept 11 (Reuters) - It's been said that there's little point in other countries cutting back on pollution while China keeps building new coal plants and lifts its own emissions ever higher. But so far in 2025 China's power sector has managed a rare decline in pollution from the use of fossil fuels, which bodes well for climate trackers hoping that China's mammoth pollution trends are close to peaking. Sign up here. The problem is, the cuts made in China have been more than offset by sharply higher discharge from power plants in the United States, where coal-fired electricity generation has jumped to three-year highs in 2025. The higher pollution load from the U.S. means that global power sector pollution will likely keep climbing this year even if China's power emissions fall. The U.S. pollution offset also clearly negates the argument that it is pointless to cut pollution while China's emissions expand, and reveals that the world could get closer to capping power sector discharge if other countries follow China's lead. COAL CUTS Between January and July, China's emissions of carbon dioxide from fossil fuel use in power generation dropped by 30 million metric tons compared to the same months in 2024, data from energy think tank Ember shows. That emissions cut marks a 1% fall from the year before and comes after two straight years of pollution growth during the January to July period in China. On a full-year basis, China's power emissions from fossil fuels have recorded nine straight years of growth, so even a modest pullback in power emissions in 2025 would mark a rare milestone in China's pollution reduction efforts. Total power emissions from fossil fuel use were 3.24 billion tons of CO2 during January to July, down from 3.27 billion tons during January to July of 2024. Key to the emissions drop has been the first cut in coal-fired power generation since 2022, which in turn has been facilitated by a 14% year-over-year rise in clean electricity output. Total clean electricity production during the January to July window was 2,445 terawatt hours (TWh), which is around 303 TWh more than was generated during the same months last year. Electricity generation from coal-fired power plants - which remains China's main power source - was 3,277 TWh during January to July, down around 30 TWh or 1% from the same months in 2024. Gas-fired electricity generation in China was also down by around 1% from a year ago. US POWERING UP As China's power sector has curbed coal use this year, U.S. power firms have raised it, with coal-fired electricity supplies jumping by 16% during the January to July window from the same months in 2024. Total U.S. coal-fired electricity supplies were 435 TWh during January to July, up from 375 TWh a year ago and the highest since 2022. The emissions toll from that spike in coal use was a 37 million ton increase in CO2 discharge compared to the same months last year. Total U.S. power sector emissions from fossil fuel use during January to July were 978 million tons of CO2, up from 941 million tons for the same period in 2024. U.S. power emissions were amplified by a rise in coal's share of the generation mix from just under 15% a year ago to nearly 17% so far in 2025. The main driver of that higher coal use was a climb in the price of natural gas during the opening months of the year. Natural gas-fired power plants remain the primary power source in the U.S., but power firms cut gas generation by 4% during January to July after gas prices averaged 65% more during the opening half of 2025 compared to the same period in 2024. To compensate for the lower gas-fired supplies, power firms burned cheaper but higher-emitting coal instead, triggering the swell in pollution. CLEANING UP Alongside higher coal-fired output, U.S. utilities also generated around 30% more solar-powered electricity during January to July compared to a year earlier, and 3% more wind and hydro-powered electricity. Total U.S. clean electricity generation during January to July rose by 6% to a record 1,155 TWh. Clean power's share of the U.S. electricity generation mix also climbed to a record 44% during January to July, up from just under 43% the year before. However, with total electricity demand rising at its fastest pace in decades, U.S. utilities continue to rely on fossil fuels for a majority of electricity production. And with thermal coal prices still roughly 20% cheaper than gas prices for power generation, many utilities are likely to sustain their high use of coal within the generation mix in order to keep overall costs in check. This suggests that further increases in U.S. emissions could be seen, which would drive global power pollution levels to new highs even if China manages to keep its own fossil fuel use in check through the rest of the year. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn , opens new tab and X , opens new tab. https://www.reuters.com/markets/commodities/chinas-rare-cut-power-pollution-offset-by-higher-us-emissions-2025-09-11/
2025-09-11 10:54
LONDON, Sept 11 (Reuters) - What matters in U.S. and global markets today By Anna Szymanski, Editor-in-Charge, Reuters Open Interest Sign up here. Oracle’s skyrocketing share price lifted Asian equities on Thursday, as AI enthusiasm shows no signs of abating. Meanwhile, European markets remain in wait-and-see mode ahead of the European Central Bank’s rate decision later today. The focus will be less on what the ECB does – which is expected to be nothing – and more on what President Christine Lagarde says. Investor attention will then turn once again to U.S. inflation data, with a consumer price update due following a soft producer price report yesterday. This is one of the last major data releases before the Federal Reserve’s meeting next week, and the question now is not whether the central bank will cut but by how much. Mike is enjoying some well deserved time off, and will be back with the Morning Bid next week. Today's Market Minute * Police and federal agents mounted an intense manhunt on Thursday for the sniper believed to have fired the single gunshot that killed conservative activist Charlie Kirk as he was fielding questions about gun violence during a university appearance. * Protesters across France obstructed highways, burned barricades and clashed sporadically with police on Wednesday in a show of anger against President Emmanuel Macron, the political elite and planned spending cuts. * Klarna (KLAR.N) shares jumped 30% in their hotly anticipated New York debut, valuing the Swedish fintech at $19.65 billion, ending the company's years-long wait for a listing and underscoring a rebound in the broader U.S. IPO market. * The global crude oil market is facing two long-term fundamental shifts that will change how cargoes flow around the world and how they are priced, writes ROI columnist Clyde Russell. * The dollar has been beaten down this year amid rising expectations for Fed easing, but ROI markets columnist Jamie McGeever argues that even if lower nominal rates are already reflected in the greenback's price, lower 'real' rates may not be. Another day, another AI record Oracle (ORCL.N) shares skyrocketed around 40% on Wednesday, its biggest one-day percentage jump since 1992, after the company announced four multi-billion-dollar contracts on Tuesday. Oracle co-founder Larry Ellison saw his fortune rise by about $100 billion to around $392.6 billion, according to Forbes. The cloud service firm’s surge boosted Asian tech stocks on Thursday, pushing indices in Japan, Taiwan and South Korea to fresh highs. European shares edged up modestly early on Thursday , opens new tab, as with the STOXX 600 rising modestly as investors await the ECB’s decision. Most economists expect no change in policy, but ECB President Christine Lagarde’s remarks will be closely watched for signals about future easing amid the ongoing trade and geopolitical tensions. The ECB cut its key policy rate to 2% in the year through June but has been on hold ever since, arguing that the 20-country euro zone economy is in a "good place". Lagarde is likely to keep the door open for further rate cuts, especially since inflation is expected to temporarily dip below the ECB's 2% target next year, supporting market bets that a final "insurance" cut could come around the turn of the year. The dollar steadied during Asian trading and gold continued to hover near record highs after an unexpected drop in U.S. producer prices on Wednesday reinforced bets for a Fed rate cut next week. The U.S. Producer Price Index fell 0.1% during August, the Labor Department's Bureau of Labor Statistics said on Wednesday. This followed a 0.7% jump in July, which was revised downwards. Traders are essentially certain there will be at least a 25 basis point cut at the Fed meeting next week, with a slim chance for a 50 bps move. U.S. CPI data due later today is expected to show a 0.3% monthly rise and 2.9% annual increase. While a weaker print could fuel bets for a larger cut, the report would have to be very hot indeed to shake up easing expectations. Chart of the day Oracle (ORCL.N) shares surged more than 40% to hit a record high on Wednesday, putting the company on track to join the trillion-dollar club. The company unveiled four multi-billion-dollar contracts on Tuesday, amid an industry-wide shift to spend aggressively to stay ahead in the AI race. Today's events to watch Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab 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/business/finance/global-markets-view-usa-2025-09-11/
