Oil hedging activity reaches record levels in October as traders take on market risks
Oil futures and option trading reached record levels during October as investors sought to hedge against the growing uncertainty caused by the ongoing war in the Middle East, and an upcoming bearish supply and demand forecast for 2025. This led to big swings in oil prices. By locking in an oil price, hedging can protect producers from market volatility and reduce their risk. This can give traders the opportunity to make money during volatile times. According to the Intercontinental Exchange, 68.44 millions barrels of crude oil were traded as futures and options in October.
Drone crashes into oil depot in Russia’s Stavropol Region
Vladimir Vladimirov, the local governor of Stavropol in southern Russia, said that a drone had crashed on an oil storage depot. This was the second suspected Ukrainian strike in a row on Russian energy and fuel targets. It followed a period of seven weeks after a fuel station in Tula, Russia was attacked on September 10. Vladimirov, on Telegram, said that there were no injuries in the incident at Svetlograd Oil Depot. Baza Telegram, a channel close to Russia's Security Services, has posted a CCTV footage purportingly showing the attack at the oil depot.
German wind production falls, resulting in higher spot prices
The European immediate power prices increased on Thursday as the German wind power forecast is for a fall. LSEG data show that the German baseload electricity for Friday rose 6% to 109.40 Euros ($118.17 per megawatt-hour (MWh). The French equivalent contract rose 1.1% to 69 euro/MWh. LSEG data indicated that the German wind power production was expected to drop by 4.6 gigawatts to 6.9 GW while French output is projected to increase 370 megawatts to 4.8 GW. Data showed that the German solar industry was expected to increase its supply by 730 MW on Friday to reach 6.7 GW.
British Business Oct 18,
These are the most popular stories in the British business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. The Times: British online retailer N Brown Group has agreed to a takeover of 191 million pounds ($248.72 millions) led by its majority owner Joshua Alliance. British Prime Minister Keir starmer has criticised senior members of his Cabinet for urging him to reverse planned cuts in Finance Minister Rachel Reeves’s first budget.
Palm oil continues to decline against weaker competitors; export data cap losses
The price of Malaysian palm oils futures dropped for the second session in a row on Tuesday. This was due to the weakness of rival edible oil and crude oil, but robust export data helped limit this fall. The benchmark palm-oil contract for December delivery at the Bursa Derivatives exchange closed down by 1.04% to 4,268 Ringgit ($993.26) per metric ton. It has fallen 1.89% over two sessions. David Ng, a proprietary trading at Kuala Lumpur's Iceberg X Sdn. Bhd.…
Prices of gas in Europe are lower due to profit-taking and lower demand
The Dutch and British wholesale prices of gas were lower on Tuesday morning due to profit-taking and after media reports that Israel was willing not strike Iranian oil targets. This eased concerns about a disruption in supply. LSEG data shows that the benchmark front-month contract for the Dutch TTF hub dropped by 1.00 euros to 39.40 Euro per megawatt hour, or $12.91/mmbtu by 0849 GMT. The front-month contract on the British market was reduced by 3.00 pence, to 98.00 per therm. The British day-ahead contracts was 2.6 cents lower at 95.00 pence per therm.
Palm extends its loss due to rival oil weakness
The price of Malaysian palm oils futures continued to fall on Tuesday. This was due to the weakness in other oils, but strong export data helped limit losses. By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for December delivery fell 38 ringgit or 0.88% to 4,275 Ringgit ($993.26) per metric ton. David Ng said that the market was being impacted by the overnight decline in Chicago soyoil prices and the lower Dalian palm olein, a proprietary trading at Kuala Lumpur based trading firm Iceberg X Sdn Bhd.
Prices for EUROPE GAS remain stable despite cooler temperatures and Middle East anxieties
The Dutch and British wholesale prices of gas rose slightly on Thursday morning, as demand increased due to the colder weather and reduced wind. However, the range remained tight as the market continued to monitor the developments in the Middle East. LSEG data show that the benchmark front-month contract for the Dutch TTF Hub was up 0.21 euro at 38.76 Euros per Megawatt Hour (MWh), which is $12.42 per mmBtu at 0839 GMT. The contract for the day-ahead was up by 0.82 euros at 38.72 euro/MWh.
S&P 500 closes near flat; more data on jobs is awaited. Middle East in focus
S&P 500 closed little changed Wednesday. Technology shares gained, but investors were nervous about Middle East tensions. Also, more U.S. employment data is due this week. Nvidia shares are up, which helped lift the S&P 500 Technology index. Nike shares fell after the athletic apparel and footwear maker retracted its annual revenue projection just before a new CEO was set to take over. Investors monitored Mideast headlines after Israel and the U.S. pledged to strike back following Iran's attack on Israel on Tuesday. Joe Biden, the U.S.
Shares of US energy companies rise as Middle East crisis fuels supply concerns
The shares of U.S. Energy companies rose in premarket trading on Wednesday. This was due to the rise in oil prices, which was a result of concerns about a possible escalation in tensions in Middle East. The markets went into a risk off mode after the announcement. The demand for safe-haven currencies such as the Japanese yen, Swiss franc and oil stocks was strong. Benchmark Brent crude rose by 2.8% to $75.59 per barrel while U.S. crude climbed 3% to $71.92. Matthew Ryan…
VEGOILS - Palm oil rises by more than 4%, the biggest increase in over a month on higher oil and soyoil
The price of crude oil and Chicago soyoil drove the increase in Malaysian palm oils futures by more than 4%. At the close of the day, the benchmark palm oil contract on Bursa Derivatives Malaysia Exchange for December delivery rose by 190 ringgit or 4.74% to 4,196 ringgit (1,006.72) per metric tonne, the highest gain recorded since July 3, 2023. The contract rose by 4.79%, reaching an intraday high of 4198 ringgit per metric ton in the first session. The contract also rose 5.03% in two consecutive sessions.
As tensions in the Middle East escalate, futures prices fall; employment data is on tap
U.S. Stock Index Futures fell on Wednesday, as geopolitical tensions and a port strike in the United States kept investors on edge before data that was expected to shed some light on the state of the economy and its monetary policy trajectory. Wall Street's major indexes started the fourth quarter of the year with a gloomy outlook. The S&P 500, and Nasdaq touched lows that were about two weeks old in the previous session as investors dumped riskier assets in response to Iran firing missiles at Israel in retaliation to its attacks on Lebanon.
Spot prices rise due to a projected drop in wind energy supply
The European spot power price continued to rise on Tuesday. Wind power is expected to continue to decrease in the region on Wednesday. LSEG data show that German baseload power for the day ahead rose by 39.8%, to 97.50 Euros ($108.23), per megawatt-hour (MWh), at 0818 GMT. The French contract, which is equivalent to the English contract, added 42.9% or 85 euros/MWh. According to LSEG analyst Naser Hachemi, an increase in Germany's residual load, mainly due to lower wind power production, makes Germany a daytime net importer.
French and Benelux stocks: Factors to watch
Here are some company news and stories that could impact the markets in France and Benelux or even individual stocks. Le Monde reported that France's new Premier Michel Barnier was considering a temporary rise in corporate tax for the biggest companies of France, as well as taxation on share buybacks. Bloomberg News, citing sources familiar with the issue, reported that on Sunday, October 4, the European Union plans to vote whether or not to impose tariffs on imported Chinese electric vehicles.
Spot prices fall on increasing wind and solar volumes
The European power price fell on Thursday as a result of the expectation that wind and solar energy will be more available in the days ahead. This overshadowed the effect of the rising demand due to the cooling temperatures. At 0820 GMT, the price of German baseload electricity for Friday had fallen by 71.1% to 17.0 euros per Megawatt Hour (MWh). The French equivalent contract was 21.0 euros/MWh down 16.8%. LSEG data indicated that the German wind power production was expected to be 41.1 gigawatts on Friday compared to 30.5 GW Thursday.
EU's von der Leyen announces 35 bln euro loan in Kyiv visit
Ursula von der Leyen, President of the European Commission during her visit to Kyiv last Friday, announced a loan for Ukraine up to 39 billion dollars ($35 billion), saying that it was necessary to protect the country from Russian attacks and to help it survive the winter. Zelenskiy, standing next to her, said that the loan will be used for energy procurement, air defences, and arms procurement. He urged his allies, at the press conference, to approve a "victory strategy" he had drafted by the end the year.
As Russia attacks Ukraine's energy infrastructure, the price of gas in Europe is rising.
The Dutch and British wholesale prices of gas closed higher on Monday amid concerns about supply as Russia fired missiles against energy infrastructure in Sumy, a city located north-east Ukraine. LSEG data show that the benchmark front-month contract for the Dutch TTF hub at 1600 GMT was 1.17 euros higher, at 35.37 Euros per Megawatt Hour (MWH), which is $11.81 mmBtu. The benchmark TTF contract fell to its lowest level since July, before recovering slightly in the morning of Tuesday.
Palm extends its losses as concerns about demand weigh
Malaysian palm futures continued to fall on Friday. They hit a new low of three weeks, as the sluggish market outweighed worries about supplies of sunflower oil from the Black Sea region, which is the largest producer, and gains in soft oils. The benchmark contract for palm oil delivery in November on Bursa Derivatives exchange was down 21 Ringgit (0.55%) at $3,831 Ringgit ($888.45). The contract is down 1.7% this week. A Mumbai-based trader said that palm oil has been struggling to recover, despite the gains made by soyoil. Sunoil supply is also a concern.
Ministry: Romania will launch CfD-based support scheme for green energies in mid-November
Romania will launch its first auction of onshore renewable energy projects by mid-November through a contract-for-difference (CfD) support scheme funded by the European Union, the energy ministry said on Monday. It said that the scheme would set a strike-price of 78 Euros per Megawatt Hour for solar projects, and 82 Euros for wind. The long-awaited low carbon energy support scheme will fix the price of electric for providers to an agreed level for a period of 15 years.
Colombia's Ecopetrol claims that operations have been affected by roadblockades and pipeline attacks
Ecopetrol, Colombia's state oil company, said that its operations were affected by the attacks on Cano Limon - Covenas and Bicentenario and a nationwide strike of truckers which has caused transport to be snarled. The company said in a press release that the production of hydrocarbons may be affected in the next few days, and this could affect fuel supply. The protests by truckers, who began Monday, in opposition to government plans to raise diesel prices, threaten to bring Colombia to a standstill, with long traffic jams on the motorways.
