Latest news with #OPEC-plus
Hamilton Spectator
6 days ago
- Business
- Hamilton Spectator
S&P/TSX composite cruises to record close on rise in energy stocks
Canada's main stock index rode energy stocks to a record close Monday, despite a cautious day that followed a month of major gains and a weekend checkered with angst over higher steel tariffs and developments in Ukraine and the Middle East. 'There was actually a fair bit of nervousness coming into today on the weekend, with some of the Trump tariff headlines that came out after the close on Friday and geopolitical tensions again with Russia and Ukraine,' said Greg Taylor, chief investment officer at PenderFund Capital Management. But the S&P/TSX composite index climbed 213.91 points to 26,388.96, its highest level ever at day's end. In New York, the Dow Jones industrial average overcame an initial drop to rise 35.41 points to 42,305.48. The S&P 500 index inched up 24.25 points to 5,935.94, while the Nasdaq composite increased 128.85 points to 19,242.61. 'In Canada it's more of a cautious tone, and I think the fact that we're higher — led by the commodities — is probably a decent positive, especially after such a big move that we had in markets in May,' Taylor said. The TSX posted its largest monthly gain since November in May, rising 5.56 per cent. That trajectory continued Monday, driven by gold and oil shares. Energy stocks flowed upward after OPEC-plus countries announced Saturday they would ramp up oil production less than some had feared. Meanwhile, Ukrainian attacks in Russia over the weekend raised uncertainty about the flow of oil and gas around the world, as did Iran's criticism of a report that revealed its growing stockpiles of enriched uranium. 'We're also seeing a bit of concern with the wildfires out west and whether that's going to take even more supply off the board,' Taylor said, pointing to blazes raging across the Prairies that have forced producers to remove non-essential staff and shut output. On the metals front, Agnico Eagle Mines Ltd., Barrick Mining Corp. and Kinross Gold Corp. placed among the mining outfits whose shares rose by between 5.2 and 6.3 per cent on Monday. Taylor said geopolitical tension and a weaker U.S. dollar help explain their popularity, with the price of gold often seen as an inverse barometer of economic anxiety. After markets closed Friday, U.S. President Donald Trump announced he would double the tariffs on steel and aluminum imports to 50 per cent this Wednesday. But the TSX industrials index ticked down only slightly. Taylor said markets now take the president's pronouncements with a grain of another commodity: salt. 'As much as no one likes to say it out loud, Trump has a history of walking back on a lot of these announcements that just seem to be thrown out there as trial balloons as much as anything else,' Taylor said. 'This might actually not come to pass.' This week, investors will be watching whether the Bank of Canada will cut interest rates on Wednesday. Market watchers will also be on the lookout for national employment figures slated to drop on June 6. 'There has been a bit of a concern around the health of the economy and whether we are going to start to see a slowdown and on the verge of looking at a recession, and that payroll number is probably going to be a good indicator,' Taylor said. The Canadian dollar traded for 72.96 cents US compared with 72.68 cents US on Friday. The July crude oil contract was up US$1.73 at US$62.52 per barrel and the July natural gas contract was up 24 cents US at US$3.69 per mmBTU. The August gold contract was up US$81.80 at US$3,397.20 an ounce and the July copper contract was up 18 cents US at US$4.86 a pound. This report by The Canadian Press was first published June 2, 2025. Companies in this story: (TSX: GSPTSE, TSX: CADUSD) — With files from The Associated Press
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Business Standard
30-05-2025
- Business
- Business Standard
Stock Market LIVE: Sensex drops 300 pts to 80,450 as India-Pak tensions escalate; Nifty at 24,300
11:29 AM Stock Market LIVE Updates: Indian Railways to run special trains from Jammu and Udhampur to Delhi 11:28 AM Stock Market LIVE Updates: SEAD, off-ramp, and the Pahalgam trigger: A conflict vocabulary grows 11:09 AM Stock Market LIVE Updates: 11 AM market update - Sensex falls over 900 points, Broader markets follow Stock Market LIVE Updates: Indian benchmark equity indices fell sharply on Friday after Pakistan fired eight missiles directed at several Indian cities, which were all intercepted by air defence units leading to an escalation in the India-Pak conflict. This comes after India's precision strike on nine-terror camps in Pakistan and Pakistan occupied Kashmir (PoK) following the deadly terror attack in Pahalgam on April 22 8:08 PM Live updates @6:55 Stock Market LIVE Updates: Several stocks, including Bajaj Finance, Coforge, Laurus Labs, Bank of Maharashtra, and Transformers and Rectifiers (India), are likely to be in focus today, Thursday, May 8, 2025. This follows their respective announcements of dividend payouts to shareholders, a form of passive income representing a share of the company's profits. According to BSE data, these stocks are scheduled to trade ex-dividend tomorrow, May 9, 2025 8:07 PM Live updates @6:00 The core GRM was at $7.5 per barrel. The refining capacity utilisation was at 121 per cent. Inventory gain per barrel was about $1.7 (versus a loss of $0.9 in the prior quarter and a gain of $0.5 a year ago). The core marketing Ebitda was ₹1.4 per litre (₹4 in the prior quarter, negative ₹2 a year back). The LPG burden amounted to ₹10,446 crore in FY25, and ₹3,216 crore in Q4FY25. There is an impairment of investment in a subsidiary, BPRL with gross carrying value of investment of ₹13,180 crore. There was also a ₹45 crore forex loss. Capex was ₹16,510 crore in FY25 and is targeted at ₹19,000 crore for FY26 and ₹22,000 crore in FY27. Debt at ₹23,280 crore was up by ₹4,510 crore year-on-year (Y-o-Y) and ₹3,660 crore quarter-on-quarter (QoQ). 8:07 PM Live updates @5:56 Indian Oil(IOCL) reported strong gross refining margins (GRMs) and marketing margins in the fourth quarter of the financial year 2025 (Q4FY25). They are still experiencing under-recoveries on gas, but this may reduce in future and the government may compensate for under-recoveries. All three companies have steady dividend payouts. In BPCL's Q4FY25 results, the Ebitda and Adjusted PAT, stood at ₹7,760 crore and ₹4,550 crore, down 16 per cent and 18 per cent year-on-year (YoY), respectively 8:06 PM Live updates @9:55 Crude and gas prices have dipped and OPEC-plus is hiking supply, bringing cheers to India which is a massive energy importer. Downstream businesses like the oil marketing companies (OMCs) and gas players will gain the most from this cheap energy. For OMCs, cheaper oil and gas equate to better margins. 8:05 PM Live updates @4:55 Tailwinds for oil marketing companies in India as margins remain robust 8:05 PM Live updates @4:30 A BofA Securities report issued on May 5 indicated that more than half of the companies within the benchmark Nifty 50 Index, having reported their results for the quarter ending in March, have surpassed analyst projections. Should this trend continue, it will likely strengthen confidence in a market that has already outperformed many of its major Asian counterparts in the past month. This outperformance is partly attributed to the belief that India's domestically focused economy is relatively shielded from US President Donald Trump's trade policies 8:03 PM Live updates @4:05 While Emkay Research has an unchanged target price of ₹8,200, it has upgraded the stock to 'Add' from 'Reduce', given stock price correction, continued revenue growth momentum supported by deal intake and pipeline, and strong execution. 8:03 PM Live updates @4:00 Given the order book and execution, most brokerages believe that the company will maintain its growth momentum in FY26. Kotak Research forecasts a strong 20.8 per cent organic revenue growth in constant-currency terms in FY26 as compared to 16.4 per cent growth in FY25. This, according to analysts led by Kawaljeet Saluja of the brokerage, will come on the back of a strong broad-based growth momentum across geographies, verticals and services, healthy increase in 12-month order backlog, strong deal win trajectory and pipeline, and revenue synergies from Cigniti through cross-selling of Coforge's services to Cigniti's large accounts. The brokerage has a 'Buy' rating with a target or fair value of ₹9,000. 8:02 PM Live updates @3:55 Stock Market LIVE Updates: Indian benchmark equity indices BSE Sensex and Nifty50 were range bound in muted trade on Thursday, amid mixed global cues. At around 11 AM, the BSE Sensex was higher by 41.96 points, or 0.05 per cent, at 80,788.74, and the Nifty50 was at 24,400.30, lower by 14.10 points, or 0.06 per cent. 7:59 PM Live updates @3:30 Lower employee stock options (Esop) and operating leverage helped the company post an adjusted operating profit margin of 18.7 per cent, up 110 basis points (bps) Q-o-Q. Margins at the earnings before interest and taxes (Ebit) was at 13.2 per cent, and was higher than analyst estimates. A large portion of the margin gains, according to BOB Capital Markets, has come from better gross margins than expected. Some of it has come from lower-than-expected selling and general administration, and Esop costs. The company is eyeing an Ebit margin of 14 per cent in FY26. 7:59 PM Live updates @3:05 The company, which ended FY25 with revenues of just under $1.5 billion, maintained its $2 billion revenue target for FY27. Its growth in the medium term is likely to be broad-based, similar to its historical performance. The 12-month executable order book at $1.5 billion is also up 47 per cent — part of it contributed by the Cigniti acquisition.
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Business Standard
08-05-2025
- Business
- Business Standard
Tailwinds for oil marketing companies in India as margins remain robust
Crude and gas prices have dipped and OPEC-plus is hiking supply, bringing cheers to India which is a massive energy importer. Downstream businesses like the oil marketing companies (OMCs) and gas players will gain the most from this cheap energy. For OMCs, cheaper oil and gas equate to better margins. OMCs such as Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL) and Indian Oil (IOCL) reported strong gross refining margins (GRMs) and marketing margins in the fourth quarter of the financial year 2025 (Q4FY25). They are still experiencing under-recoveries on gas, but this may reduce in future and the government may compensate for under-recoveries. All three companies have steady dividend payouts. In BPCL's Q4FY25 results, the Ebitda and Adjusted PAT, stood at ₹7,760 crore and ₹4,550 crore, down 16 per cent and 18 per cent year-on-year (YoY), respectively. The core GRM was at $7.5 per barrel. The refining capacity utilisation was at 121 per cent. Inventory gain per barrel was about $1.7 (versus a loss of $0.9 in the prior quarter and a gain of $0.5 a year ago). The core marketing Ebitda was ₹1.4 per litre (₹4 in the prior quarter, negative ₹2 a year back). The LPG burden amounted to ₹10,446 crore in FY25, and ₹3,216 crore in Q4FY25. There is an impairment of investment in a subsidiary, BPRL with gross carrying value of investment of ₹13,180 crore. There was also a ₹45 crore forex loss. Capex was ₹16,510 crore in FY25 and is targeted at ₹19,000 crore for FY26 and ₹22,000 crore in FY27. Debt at ₹23,280 crore was up by ₹4,510 crore year-on-year (Y-o-Y) and ₹3,660 crore quarter-on-quarter (QoQ). The debt-equity (D/E) ratio is low at 0.3x. IOCL's Q4FY25 Ebitda of ₹13,570 crore and PAT of ₹7,260 crore were up 30 per cent and 50 per cent Y-o-Y, well above consensus. The Ebitda of ₹7,660 crore was driven by higher GRMs, and strong marketing margins. LPG losses for the quarter were ₹5,600 crore. There is a chance of LPG compensation in FY26, while sustaining higher GRMs and strong retail margins. The GRMs per barrel of $7.9 (including inventory gain of $2.43) rose $4.9 Q-o-Q. The blended marketing margin of ₹6,526 per tonne improved 37 per cent Y-o-Y and slipped 13 per cent Q-o-Q with a blended retail margin of ₹6.4 per litre (down ₹2.8 Q-o-Q and down ₹2.6 Y-o-Y). IOCL is expanding its refining capacity (adding 18 million tonnes (MT) by FY28 on base of 70 MT) and is also adding petrochemical capacity. IOCL hopes to receive compensation for LPG losses of ₹19,900 crore for FY25. LPG losses in Q1FY26 may decline given the ₹50 per cylinder hike and lower Asian LPG prices. LPG losses are expected to average ₹160-170 per cylinder in FY26, about 45 per cent lower Y-o-Y. HPCL reported Q4FY25 earnings, with Ebitda of ₹5,730 crore and PAT of ₹3,350 crore, driven by strong GRMs and marketing margins. Core GRM was $7.1 per barrel, while blended marketing margin at ₹5.5 per kg was a beat. The LPG loss was ₹3,300 crore in Q4, while net debt grew 6 per cent Y-o-Y (19 per cent Q-o-Q) to ₹57,900 crore. The company's CMD said the current capex cycle is coming to an end and the focus is on generating positive free cash flow with debt reduction. HPCL's refining volume was up 4 per cent Q-o-Q at 6.7 million metric tonnes (MMT), with utilisation at 118 per cent. Blended marketing margin was ₹5.5 per kg. Exports were up 7 per cent Q-o-Q at 0.59 MMT. Share of profits from associates and joint ventures was at ₹350 crore vs ₹460 crore loss Q-o-Q. Capex for FY25 was ₹14,510 crore. The FY26-27 capex target is ₹13,000-14,000 crore per annum. The standalone D/E ratio has reduced to 1.38x with a one-year target of 1-1.1x. The Vizag upgrade project is scheduled to commission in Q2FY26. It would add $2-3 per barrel in GRMs. Barmer Refinery is making steady progress, with commissioning expected in October 25. About 20 per cent of the crude mix would be local Barmer at some discount. The Petchem block should be commissioned by Jan-26. The key risks for the OMCs include rising crude and gas prices, rupee weakness, government policy and any issues with ongoing expansions. Given US tariff uncertainties, global demand may remain muted, leading to crude trading in a range of $65-70 per barrel. This could help OMCs maintain strong margins while LPG losses would also reduce.
Yahoo
21-03-2025
- Business
- Yahoo
Opinion - Trump learned from Biden's mistakes: Never underestimate Saudi Arabia
When it comes to energy, President Trump is playing chess, not checkers. Former President Joe Biden wasn't even playing tic-tac-toe. Consider: Why are U.S. officials traveling to Saudi Arabia to negotiate peace between Ukraine and Russia? Why not more traditional diplomatic venues like Geneva or Vienna? Because Trump knows that Saudi Arabia is critical to lowering oil prices and pressuring Russia to come to the bargaining table. He also knows that Mohammed bin Salman, the Saudi crown prince, craves acceptance as a global leader and that hosting these high-level meetings helps him achieve that end. Biden had spurned bin Salman, promising in 2019 to make him 'a pariah.' Trump won't be making that mistake. Gasoline prices are down 11 percent from a year ago, providing welcome relief to Americans worried about inflation and a boost for the Trump White House. Trump campaigned on lowering energy prices; nothing could be more important to the success of this administration. Biden's approval ratings were clobbered when gasoline prices breached $5 per gallon in 2022; for Trump, the stakes are equally high. Gasoline prices are lower because crude oil is hovering around $67 per barrel, down from $84 a year ago. Why the drop? There are numerous factors, but the most important is that OPEC+, for the first time since 2022, has agreed to expand output in April. Between next month and September 2026, OPEC-plus has agreed to reverse its prior 2.2 million barrel per day cuts; unless demand strengthens unexpectedly, or there is a major disruption of production in the Middle East, the bump in output should keep prices steady, and below the $78 level posted on Inauguration Day. For that, you can thank Trump and his outreach to bin Salman. Saudi Arabia remains the world's 'swing producer' of oil and the leader of OPEC, and the crown prince guides its policies. He is behind the oil cartel's decision to raise output. Bin Salman anticipates that Trump will tighten sanctions on Iran, which will reduce global supplies; OPEC is delighted to step up. Soon after taking office, Trump spoke virtually to the global corporate and political leaders at the World Economic Forum at Davos, saying: 'I'm also going to ask Saudi Arabia and OPEC to bring down the cost of oil. You got to bring it down, which, frankly, I'm surprised they didn't do before the election. … They're very responsible, actually, to a certain extent, for what's taking place — millions of lives are being lost.' Trump was correct; OPEC-manipulated high prices have enabled Vladimir Putin's war effort. Though Russian oil production fell last year, revenues rose 2 percent. OPEC boosting output could lower prices and bring peace closer. Trump's speech knocked oil prices down about 1 percent; soon after, OPEC announced a production hike beginning in April. Longer term, Trump will work to expand U.S. oil output. That will not happen overnight, especially since some of the most promising new sources of oil lie in areas like Alaska, which could take years to come onstream. Lower oil prices will not encourage oil companies to 'Drill, baby, drill!' but the White House can boost oilfield investment by reversing Biden policies that hiked royalties required on federal lands, imposed stiff fees on methane leaks, and withheld drilling permits and lease sales. The industry will respond to such incentives. Still, Saudi Arabia and Trump's relationship with bin Salman remain key. Biden went out of his way to insult the Saudi leader, punishing him for allegedly masterminding the murder of journalist Jamal Khashoggi. The president also refused to speak to MBS, saying he would only communicate with his aging father. Of more consequence was Biden's decision to rescind the terror designation that Trump had slapped on the Houthis and to cut off sales of offensive weapons to the Saudis, both of which complicated their war against the terror group in Yemen. Biden's hostility toward Saudi Arabia encouraged its leader to advocate for lower oil production and higher prices, which in turn hurt Biden's standing and the U.S. Pummeled by high inflation and anxious about looming midterm elections, Biden traveled to Saudi Arabia in 2022 to beg for higher oil production. Rather than shake bin Salman's, Biden insisted on a 'fist bump' — a mortifying diplomatic episode. The Saudi prince was unmoved, and oil prices stayed high. The result was that Biden drained the Strategic Petroleum Reserve, reducing the amount in storage to its lowest level since 1984. Trump will push the Saudis to keep prices low; he also needs their help to resolve the conflict in Gaza. Recent U.S. attacks on the Houthis, Iran proxies and enemies of Saudi Arabia, are part of the complex negotiations. Trump will continue to play chess, not checkers. Liz Peek is a former partner of major bracket Wall Street firm Wertheim and Company. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
21-03-2025
- Business
- The Hill
Trump learned from Biden's mistakes: Never underestimate Saudi Arabia
When it comes to energy, President Trump is playing chess, not checkers. Former President Joe Biden wasn't even playing tic-tac-toe. Consider: Why are U.S. officials traveling to Saudi Arabia to negotiate peace between Ukraine and Russia? Why not more traditional diplomatic venues like Geneva or Vienna? Because Trump knows that Saudi Arabia is critical to lowering oil prices and pressuring Russia to come to the bargaining table. He also knows that Mohammed bin Salman, the Saudi crown prince, craves acceptance as a global leader and that hosting these high-level meetings helps him achieve that end. Biden had spurned bin Salman, promising in 2019 to make him ' a pariah.' Trump won't be making that mistake. Gasoline prices are down 11 percent from a year ago, providing welcome relief to Americans worried about inflation and a boost for the Trump White House. Trump campaigned on lowering energy prices; nothing could be more important to the success of this administration. Biden's approval ratings were clobbered when gasoline prices breached $5 per gallon in 2022; for Trump, the stakes are equally high. Gasoline prices are lower because crude oil is hovering around $67 per barrel, down from $84 a year ago. Why the drop? There are numerous factors, but the most important is that OPEC+, for the first time since 2022, has agreed to expand output in April. Between next month and September 2026, OPEC-plus has agreed to reverse its prior 2.2 million barrel per day cuts; unless demand strengthens unexpectedly, or there is a major disruption of production in the Middle East, the bump in output should keep prices steady, and below the $78 level posted on Inauguration Day. For that, you can thank Trump and his outreach to bin Salman. Saudi Arabia remains the world's 'swing producer' of oil and the leader of OPEC, and the crown prince guides its policies. He is behind the oil cartel's decision to raise output. Bin Salman anticipates that Trump will tighten sanctions on Iran, which will reduce global supplies; OPEC is delighted to step up. Soon after taking office, Trump spoke virtually to the global corporate and political leaders at the World Economic Forum at Davos, saying: 'I'm also going to ask Saudi Arabia and OPEC to bring down the cost of oil. You got to bring it down, which, frankly, I'm surprised they didn't do before the election. … They're very responsible, actually, to a certain extent, for what's taking place — millions of lives are being lost.' Trump was correct; OPEC-manipulated high prices have enabled Vladimir Putin's war effort. Though Russian oil production fell last year, revenues rose 2 percent. OPEC boosting output could lower prices and bring peace closer. Trump's speech knocked oil prices down about 1 percent; soon after, OPEC announced a production hike beginning in April. Longer term, Trump will work to expand U.S. oil output. That will not happen overnight, especially since some of the most promising new sources of oil lie in areas like Alaska, which could take years to come onstream. Lower oil prices will not encourage oil companies to 'Drill, baby, drill!' but the White House can boost oilfield investment by reversing Biden policies that hiked royalties required on federal lands, imposed stiff fees on methane leaks, and withheld drilling permits and lease sales. The industry will respond to such incentives. Still, Saudi Arabia and Trump's relationship with bin Salman remain key. Biden went out of his way to insult the Saudi leader, punishing him for allegedly masterminding the murder of journalist Jamal Khashoggi. The president also refused to speak to MBS, saying he would only communicate with his aging father. Of more consequence was Biden's decision to rescind the terror designation that Trump had slapped on the Houthis and to cut off sales of offensive weapons to the Saudis, both of which complicated their war against the terror group in Yemen. Biden's hostility toward Saudi Arabia encouraged its leader to advocate for lower oil production and higher prices, which in turn hurt Biden's standing and the U.S. Pummeled by high inflation and anxious about looming midterm elections, Biden traveled to Saudi Arabia in 2022 to beg for higher oil production. Rather than shake bin Salman's, Biden insisted on a 'fist bump' — a mortifying diplomatic episode. The Saudi prince was unmoved, and oil prices stayed high. The result was that Biden drained the Strategic Petroleum Reserve, reducing the amount in storage to its lowest level since 1984. Trump will push the Saudis to keep prices low; he also needs their help to resolve the conflict in Gaza. Recent U.S. attacks on the Houthis, Iran proxies and enemies of Saudi Arabia, are part of the complex negotiations. Trump will continue to play chess, not checkers.
