2024-09-03 19:30

Sept 3 (Reuters) - U.S. oil refiner Phillips 66 (PSX.N) , opens new tab sold its natural gas gathering and processing assets in East Texas to Voyager Midstream Holdings, a portfolio firm of Pearl Energy Investments, the company said on Tuesday. "This transaction with Voyager Midstream Holdings is part of our plan to monetize non-core assets that are expected to generate over $3 billion in proceeds that will be deployed to further our strategic priorities," a company spokesperson said. The company said last year it would monetize $3 billion in non-core assets in 2024 as part of a plan to boost returns by cutting costs and assets. Haynesville, located primarily in Louisiana and East Texas, contains large amounts of natural gas. Houston-based Voyager said the assets are located in Panola, Rusk and Harrison counties in Texas and Caddo parish in Louisiana. "We are committed to growing our infrastructure footprint in East Texas and North Louisiana and improving producer connectivity and netbacks," Voyager CEO Will Harvey said. Voyager did not disclose the deal value. The company said the acquisition also includes the Carthage hub, a natural gas trading and delivery hub which can handle over 1 billion cubic feet per day. The hub provides connectivity to multiple markets across the U.S., including access to LNG markets in Texas and Louisiana. Sign up here. https://www.reuters.com/markets/deals/voyager-midstream-acquires-some-natgas-assets-phillips-66-2024-09-03/

2024-09-03 16:01

MOSCOW, Sept 3 (Reuters) - Russia's annual inflation may have peaked in July, the central bank said on Tuesday, but medium-term inflationary risks remain high and it is too early to speak about a steady reduction in inflation pressure. The central bank is expected to raise its key interest rate by 100 basis points to 19% at its meeting on Sept. 13 to combat high inflation, a Reuters poll of analysts showed on Monday. Sign up here. https://www.reuters.com/markets/europe/russian-central-bank-says-medium-term-inflation-risks-remain-high-2024-09-03/

2024-09-03 15:52

Manufacturing PMI rises to 47.2 in August vs 46.8 in July New orders, production sub-indexes decline Construction spending falls 0.3% in July WASHINGTON, Sept 3 (Reuters) - U.S. manufacturing contracted at a moderate pace in August amid some improvement in employment, but a further decline in new orders and rise in inventory suggested factory activity could remain subdued for a while. The survey from the Institute for Supply Management (ISM) on Tuesday also showed manufacturers continuing to pay higher prices for inputs last month. It did not change expectations that the Federal Reserve will cut interest rates by 25 basis points when it kicks off its long awaited easing cycle this month. "Input price pressures moved up modestly to the highest in three months, but they are not so high in our judgment to threaten continued slow disinflation," said Conrad DeQuadros, senior economic advisor at Brean Capital. "No bar to a September rate cut here but nothing to push the Fed to a half-point cut either." The ISM said its manufacturing PMI rose to 47.2 last month from 46.8 in July, which was the lowest reading since November. A PMI reading below 50 indicates contraction in the manufacturing sector, which accounts for 10.3% of the economy. The PMI remained below the 50 threshold for the fifth straight month, but was above the 42.5 level that the ISM said over time indicates an expansion of the overall economy. Five manufacturing industries, including primary metals, furniture and computer and electronic products, reported growth last month. Machinery, textile mills, transportation equipment as well as electrical equipment, appliances and components were among the 12 industries reporting contraction. The PMI and regional factory surveys have, however, consistently overstated manufacturing weakness. So-called hard data on manufacturing production and business spending on equipment suggest the sector has been largely treading water, as demand for goods has not collapsed despite hefty rate hikes from the U.S. central bank. The Fed is expected to start cutting rates at its Sept. 17-18 policy meeting. Comments from respondents in the survey were mixed. Chemical products makers reported "a noticeable slowdown in business activity." Machinery manufacturers described new order intake as "sluggish at best." But miscellaneous goods manufacturing said that "new orders continue to be strong." Primary metals manufacturers reported that order books remained "strong for now," and were "running overtime to keep pace as hiring hourly employees has been difficult." Stocks on Wall Street were trading lower. The dollar rose against a basket of currencies. U.S. Treasury yields fell. WEAK ORDERS The ISM survey's forward-looking new orders sub-index fell to 44.6 last month from 47.4 in July. Output declined further, with the production sub-index slipping to 44.8, the lowest level since May 2020, from 45.9 in July. The ISM said the low level of production execution was "putting additional pressure on profitability." Despite weak demand, manufacturers faced higher prices for inputs, likely reflecting soaring freight rates. The survey's measure of prices paid by manufacturers increased to 54.0 from 52.9 in July a sign that raw materials prices increased for the eighth straight month, reversing eight consecutive months of decreases. That suggests goods deflation has probably run its course for now, but will probably not have a material impact on inflation, which is slowing. Goods prices were unchanged in July after falling for two straight months. The measure of supplier deliveries fell to 50.5 from 52.6 in the prior month. A reading above 50 indicates slower deliveries. Factory employment contracted, though the pace slowed. The survey's manufacturing employment measure rose to 46.0 from 43.4 in July. Companies continued to reduce head counts through layoffs, attrition and hiring freezes, the ISM said. This measure has not been a reliable predictor of manufacturing payrolls in the government's closely watched employment report. According to a Reuters survey of economists, manufacturing employment was likely unchanged in August after edging up by 1,000 jobs in July. Overall nonfarm payrolls were forecast increasing by 160,000 positions after rising 114,000 in July. The unemployment rate was estimated to have fallen to 4.2% from near a three-year high of 4.3% in July. A second report from the Commerce Department's Census Bureau on Tuesday showed construction spending dropped 0.3% in July after being unchanged in June as higher mortgages and increased supply weighed on single-family homebuilding. Construction spending increased 6.7% year-on-year in July. Investment in residential construction fell 0.4%, with outlays on new single-family construction projects plunging 1.9%. A surge in mortgage rates in the spring chilled homebuilding and sales, leading to an inventory overhang in some regions. The excess supply and weak demand has forced builders to hold back breaking ground on new projects. Single-family homebuilding dropped to a 16-month low in July, with inventory near levels last seen in early 2008. Sign up here. https://www.reuters.com/markets/us/us-manufacturing-edges-up-august-8-month-low-trend-remains-weak-2024-09-03/

2024-09-03 14:27

WASHINGTON, Sept 3 (Reuters) - U.S. construction spending fell more than expected in July as higher mortgages and increased supply weighed on single-family homebuilding. The Commerce Department's Census Bureau said on Tuesday that construction spending dropped 0.3% after being unchanged in June. Economists polled by Reuters had forecast construction spending dipping 0.1%. Construction spending increased 6.7% year-on-year in July. Spending on private construction projects decreased 0.4% in July. Investment in residential construction also fell 0.4%. Outlays on new single-family construction projects plunged 1.9%. Spending on multi-family housing was unchanged. A surge in mortgage rates in the spring weighed on homebuilding and sales, leading to an inventory overhang in some regions. The excess supply and weak demand has forced builders to hold back breaking ground on new projects. Single-family homebuilding dropped to a 16-month low in July, with inventory near levels last seen in early 2008. Residential investment, which includes homebuilding, contracted in the second quarter after double-digit growth in the January-March quarter. Mortgage rates have since dropped to 16-month lows amid expectations the Federal Reserve will start cutting interest rates this month. Spending on private non-residential structures like factories dropped 0.4% as the boost from a drive by President Joe Biden's administration to bring semiconductor manufacturing back to the United States fades. Investment in public construction projects edged up 0.1%. State and local government spending slipped 0.1% and outlays on federal government projects jumped 2.1%. Sign up here. https://www.reuters.com/markets/us/us-construction-spending-falls-more-than-expected-july-2024-09-03/

2024-09-03 12:58

Sept 3 (Reuters) - Chevron (CVX.N) , opens new tab said on Tuesday it had started water injection operations at the company's projects, Jack/St. Malo and Tahiti off the U.S. Gulf of Mexico, to boost oil and natural gas recovery. Since the fields started production in 2014, Jack/St. Malo have cumulatively produced almost 400 million gross barrels of oil equivalent (boe), the company said in a release. "Delivery of these two projects maximizes returns from our existing resource base and contributes toward growing our production to 300,000 net barrels of oil equivalent per day (boepd) in the U.S. Gulf of Mexico by 2026," said Bruce Niemeyer, president of Chevron Americas' Exploration & Production. The water injections would add nearly 175 million boe to St. Malo field's gross ultimate recovery, the company said, while studying ways to further increase recovery from the Tahiti and Jack/St. Malo facilities. Chevron is the operator of the St. Malo field and holds a 51% working interest, while also being the operator of the Tahiti facility with a 58% working interest. Sign up here. https://www.reuters.com/markets/commodities/chevron-starts-operations-boost-output-gulf-mexico-2024-09-03/

2024-09-03 12:40

Ukraine criticizes Mongolia for not arresting Putin under ICC warrant U.S. urges Mongolia to support U.N. Charter principles and rule of law Putin discusses boosting trade and gas pipeline project with Mongolia Sept 3 (Reuters) - Russian President Vladimir Putin received a red carpet welcome on Tuesday on a state visit to Mongolia, whose failure to arrest him under a warrant from the International Criminal Court was criticised by Ukraine as a blow against justice. As he stepped out of his limousine in the capital Ulaanbaatar, Putin was greeted by his Mongolian counterpart Ukhnaagiin Khurelsukh in front of a row of ceremonial guardsmen on horseback wearing helmets with pointed tops. The Kremlin leader stooped to kiss a young girl who stepped forward to welcome him in Russian and present him with flowers. An International Criminal Court arrest warrant issued last year against Putin obliges the court's 124 member states, including Mongolia, to arrest the Russian president and transfer him to The Hague for trial if he sets foot on their territory. Mongolia's failure to act on it was "a heavy blow to the International Criminal Court and the system of criminal law", Ukrainian Foreign Ministry spokesperson Heorhiy Tykhyi said. "Mongolia has allowed an accused criminal to evade justice, thereby sharing responsibility for the war crimes," he wrote on the Telegram messaging app. Ukraine, he said, would work with its allies to ensure Mongolia felt the consequences. The United States, which is not a member of the ICC and is keen to develop relations with Mongolia as an important source of rare-earth minerals needed in high-tech applications, was also critical of Ulaanbaatar. "We don't believe any country should give Putin a platform to promote his war of aggression against Ukraine," State Department spokesperson Matthew Miller told a regular briefing. "We do expect Mongolia to adhere to its commitment and support for the principles of the U.N. Charter, including sovereignty and territorial integrity, and convey that those principles must be upheld around the world," he said. Miller said Washington understood Mongolia's position sandwiched between two larger neighbors, which are China and Russia, but added; "We do think it's important that they continue to support the rule of law around the world." While the United States is not an ICC member, it supported the court's decision to issue an arrest warrant for Putin. The ICC warrant accuses Putin of illegally deporting hundreds of children from Ukraine. The Kremlin has rejected the accusation, saying it is politically motivated. Kremlin spokesman Dmitry Peskov said last week that Moscow had no worries about any action in connection with the warrant, as Russia had a "great dialogue" with Mongolia and all aspects of the visit had been discussed in advance. "Relations with Mongolia are among the priorities of our foreign policy in Asia. They have been brought to a high level of comprehensive strategic partnership," Putin told Khurelsukh. The Mongolian leader said he hoped the visit would boost bilateral trade and economic cooperation. Mongolia is on the planned route of a major pipeline that Russia wants to construct to carry 50 billion cubic metres of natural gas a year from its Yamal region to China. The project, Power of Siberia 2, is part of Russia's strategy to compensate for the loss of most of its gas sales in Europe since the start of the Ukraine war. It is the planned successor to an existing pipeline of the same name which already supplies Russian gas to China and is due to reach its planned capacity of 38 billion cubic metres per year in 2025. The new venture has long been bogged down over key issues such as the pricing of the gas. However, Putin said on the eve of his visit that preparatory work, including feasibility and engineering studies, were proceeding as scheduled. Sign up here. https://www.reuters.com/world/putin-gets-lavish-welcome-mongolia-despite-icc-warrant-2024-09-03/