Nigeria's Dangote Refinery says it will suspend fuel sales in local currency
The decision by the 650,000-barrel-per-day Dangote Refinery to price its gasoline in dollars could lead to a hike in the gasoline prices and a weakening of the naira as local fuel traders scramble for greenbacks.
The refinery on the outskirts of Lagos has struggled to secure sufficient crude volumes under an arrangement by the Nigerian government to sell it crude in naira.
"To date, our sales of petroleum products in Naira has exceeded the value of Naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency" the company said in a statement.
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Reuters
2 hours ago
- Reuters
Investors react to US-Russia summit reaching no agreement
NEW YORK, Aug 15 (Reuters) - A highly anticipated summit between U.S. President Donald Trump and Russian President Vladimir Putin on Friday yielded no agreement to resolve or pause Moscow's war in Ukraine, despite both leaders describing the talks in Alaska as productive. During a brief appearance before the media following the nearly three-hour talks, the two leaders said they had made progress on unspecified issues. But they offered no details and took no questions, with the normally loquacious Trump ignoring shouted questions from reporters. "There were many, many points that we agreed on. I would say a couple of big ones that we haven't quite got there, but we've made some headway," Trump said, standing in front of a backdrop that read, "Pursuing Peace." COMMENTS: HELIMA CROFT, GLOBAL HEAD OF COMMODITY STRATEGY AT RBC CAPITAL MARKETS, NEW YORK: "It seems to be the scenario that we anticipated in our note. Soundbites signaling diplomatic progress but few concrete deal specifics. We will watching to see whether the 'too be continued' outcome is enough to table the secondary sanctions on India for continuing to import Russian oil. Certainly will fall short of anything that will convince the Europeans to consider vacating their Russian energy sanctions." CAROL SCHLEIF, CHIEF MARKET STRATEGIST, BMO PRIVATE WEALTH, MINNEAPOLIS: "The only news was absolutely no news out of it. Not sure there will be any market impactful portions - geopolitical issues in general do not tend to preoccupy market attention for very long if at all." "Markets are at new highs despite this conflict going on for three years. Markets care more about consumers, inflation and commentary from Wyoming next week." ERIC TEAL, CHIEF INVESTMENT OFFICER, COMERICA, CHARLOTTE, NORTH CAROLINA: "The fact that there were no economic sanctions is a positive and markets should breathe a sigh of relief, but it doesn't appear as though a deal is in hand." "If anything, we see opportunity in the energy sector, as oil prices are at pretty low levels here and the prospect of sanctions on oil did not bear out. There could be a relief rally and that would be an opportunity to invest in energy as we head into higher seasonal demands and economic growth beginning to re-accelerate." "Gold and precious metals are likely to sell off because of being an asset class good for safety. Given concerns about inflation, they are a good buying point as well if any weakness." EUGENE EPSTEIN, HEAD OF TRADING AND STRUCTURED PRODUCTS, NORTH AMERICA, MONEYCORP, NEW JERSEY: "I don't think anybody expected it to be particularly specific or substantive. It's essentially a first step towards potentially something more. They both kind of said everything diplomatically. But it's more about the significance of the meeting as a whole, as opposed to the content of what they're saying." "Again, I don't think anybody really expected them to suddenly within a couple of hours come up with a very specific set of plans or any kind of blueprint to something. It basically was just showing their willingness to have continued talks to arrive at a conclusion that is beneficial for all parties. And I think this is just the first steps, and many more to come." "Basically, President Trump needs to go back to the European Union and relay what Putin has said. And then he's got to negotiate with Zelenskiy. For the most part, I think they've laid the groundwork for a deal. And my feeling is that it will probably get done, but there's probably a couple more steps. I'm thinking one of those steps will be Trump, Putin and Zelinski all meeting in the next month." "They will probably reach a deal in 30 days. I was kind of surprised that they didn't take any questions. So there's a little bit of disappointment in that, but until a deal is done, you can't really take any questions." "Overall, the markets will like it marginally because I think they've made some progress. But I don't think we will be up 400 points in Dow futures on Sunday night." MICHAEL ASHLEY SCHULMAN, CHIEF INVESTMENT OFFICER, RUNNING POINT, EL SEGUNDO, CALIFORNIA: "At this point, it has been three years into the war, so it really shouldn't have much effect. I think markets will take it as status quo, but I think there's only upside from here." JAMIE COX, MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND, VIRGINIA: "Without Ukraine at the table, there was little chance for a peace accord. That Putin attended at all was significant, but he can't be seen ending the conflict while on American soil meeting with Trump."
Reuters
5 hours ago
- Reuters
Foreign holdings of US Treasuries climb to record $9.13 trillion in June
NEW YORK, Aug 15 (Reuters) - Foreign holdings of U.S. Treasuries rose to record levels in June, topping $9 trillion for a fourth straight month, data from the Treasury Department showed on Friday. Holdings of U.S. Treasuries climbed to $9.13 trillion in June, up from $9.05 trillion in May. Compared with a year earlier, Treasuries owned by foreigners were up nearly $1 trillion, or 10% higher. However, on a transaction basis, the U.S. experienced outflows of $5 billion after buying roughly $147 billion in Treasuries in May, the largest since August 2022. In April, there was an outflow of $40.8 billion as President Donald Trump's back-and-forth tariff policies roiled markets. Japan remained the largest non-U.S. holder of Treasuries, with a record $1.147 trillion in June, up $12.6 billion from the previous month's $1.134 trillion. UK investors, the second-largest owner of U.S. government debt, raised their pool of Treasuries to another record of$858.1 billion, up 0.6% from $809.4 billion in May. The UK overtook China as the second-largest non-U.S. holder of Treasuries in March. The UK is widely viewed as a custody country, generally a proxy for hedge fund investments. Other countries used by hedge funds for custody services include the Cayman Islands and the Bahamas. Treasury holdings of China, the third-largest owner of U.S. government debt, were little changed at$756.4 billion, compared with $756.3 billion in May, which was the lowest since February 2009 when the country's stock of Treasuries dropped to$744.2 billion. China's holdings were way below their largest level of more than $1.3 trillion held between 2012 and 2016. China, the world's second-largest economy, has been gradually dumping Treasuries to bolster its currency, the yuan. Analysts said a slowing Chinese economy, post-COVID challenges, and trade barriers have diminished China's inflows from exports. Data also showed that other foreign investors in Asia like Hong Kong and India reduced their cache of Treasuries to $242.6 billion and $227.4 billion, respectively. Foreign investors, meanwhile, also poured back into U.S. equities, injecting inflows of $163.1 billion in June that followed $115.8 billion in purchases in May. Data also showed that the net capital inflow into the United States totaled just $77.8 billion, down 75% from the revised$318.1 billion in May, which was the largest since September 2024.
Reuters
8 hours ago
- Reuters
Exclusive: US mulled use of Russia icebreakers for gas development ahead of summit-sources
LONDON, Aug 15 (Reuters) - The United States has had internal discussions on using Russian nuclear-powered icebreaker vessels to support the development of gas and LNG projects in Alaska as one of the possible deals to aim for when President Donald Trump meets Vladimir Putin on Friday, three sources familiar with the matter told Reuters. Trump landed in Alaska on Friday for what he called a "high stakes" summit with Russia's Putin to discuss a ceasefire deal for Ukraine and end the deadliest war in Europe since World War Two. Both the U.S. and Russian presidents, due to meet at a Cold War-era air force base in Alaska's largest city, are seeking wins from their first face-to-face talks since Trump returned to the White House. The icebreaker idea has been discussed among White House officials as one of the potential deals to try to strike with Russia at the Alaska summit, one of the sources said. The ongoing talks between the U.S. and Russia over Ukraine have included discussions about business deals. The White House is planning to continue this approach at the summit on Friday, said the source, who like the others spoke on condition of anonymity due to the sensitivity of the talks. The White House did not immediately respond to a request for comment. Kremlin officials were not available for comment. Russia operates the world's only fleet of nuclear-powered icebreakers, which play a central role in maintaining year-round shipping access along the Northern Sea Route, a strategic path for global energy and trade flows. Trump's administration is pushing to transport gas from Alaska's remote north to Asian clients. Trump has pitched Alaska LNG, a proposed $44 billion project to ship liquefied natural gas along a 800-mile pipeline from Alaska, to Asian buyers as a way to reduce their dependence on Russian LNG. Another project, similarly aimed at Asian markets, is Qilak LNG, which is targeting 4 million tons per annum of LNG. Qilak did not immediately respond to a request for comment. An industry source said that Alaska LNG had "no identified needs for Russian icebreakers." Reuters was not immediately able to establish which, if any, specific project would benefit if a deal was reached in the Alaska talks. The nuclear icebreakers could also facilitate the transport of construction materials and equipment to remote areas in Alaska, where infrastructure is limited and weather conditions are harsh.
