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Kazakhstan's oil production fell 3% but remained above OPEC+ quota
According to an industry source who is familiar with the calculations and statistics, Kazakhstan's oil output fell 3% in March, to 1,82 million barrels of oil per day (bpd) by April. However, it was still above the OPEC+ quota. Saudi Arabia, the group's leader, has demanded that all members adhere to their quotas. Kazakhstan, a country in the top 10 oil producers, had a quota of 1.473 millions bpd for OPEC+. The energy ministry of the country said in May that they were committed to OPEC+ but did not plan to reduce output as it "frequently informed" their OPEC+ partner. OPEC+ agreed to increase oil production for a second month in a row, increasing output by 411,000 barrels despite lower prices and expectations that demand would be weaker. The expansion of the Tengiz oilfield, Kazakhstan's largest, led by Chevron has resulted in an increase in oil production this year. In April, the field produced 885, 000 bpd. This is down from 950,000 in March. The Kazakhstani energy ministry didn't immediately respond to a comment request on Wednesday. Kazakhstan had previously pledged to compensate its overproduction by decreasing its cumulative production by 1.3 millions bpd before April 2026. Western oil majors such as Shell, ExxonMobil, TotalEnergies, Eni and Chevron are involved in Kazakhstan oil projects.
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Maguire: How to gauge China's potential power rebound after the trade truce
The recent agreement between the United States of America and China to pause hostilities in trade for 90 days is likely to spur new activity within China's massive manufacturing sector. This will have repercussions on the country's need for energy. The trade truce, on paper, is only temporary and could be rescinded by either party if they feel unfairly treated in negotiations. The sharp reduction in tariffs during the truce period marks a significant deescalation of trade tensions and should lead to a rebound in output and sentiment among Chinese manufacturers. Here are some key metrics you can use to track the impact of the trade tensions reduction on power generation, emissions and manufacturing output in China in the next few months. CLEAN START As factory production increases across China, the share of clean energy sources in China's overall mix of electricity generation will decline. Ember data shows that clean power sources made up a record 39% (950 TWh) of China's electric supply during the first quarter 2025. This was aided by a 18% increase in the production of clean electricity from the same period of 2024. Clean energy has increased its share in the mix of power generation partly due to Beijing’s efforts to reduce reliance on fossil fuels, which have resulted in a steady increase in clean power production capacity. The subdued tone in China's manufacturing sector between January and March also contributed to a higher share of clean power. Since the beginning of the year, scores of Chinese factories have reduced their output as Trump's tariffs threatened or came into effect. This has led to a reduction in the power consumption of these plants. In turn, this allowed utilities to reduce the use of fossil fuels in electricity generation. Ember data show that fossil fuel-fired power production was down by 4% compared to the previous year, at 1,494 TWh. The use of fossil fuels in China's energy mix will continue to increase, and any increase in industrial output and factory production is likely to give it a boost. SUMMER PEAK The impending factory production rebound is likely to occur during China's traditionally peak period of power consumption. This could lead to record electricity generation and usage over the summer, regardless of whether the trade truce lasts. China's electricity demand peaks in the summer, due to a greater use of air conditioners. The temperatures can reach over 85 degrees Fahrenheit (30 degrees Celsius) in Beijing on average. In order to meet the high demand, power companies tend to rely heavily on fossil fuels, particularly during evenings, when air conditioner usage increases and solar farm production falls. China's energy firms could be forced to reduce fossil fuel generation more than usual if China's massive manufacturing sector increases its collective output in the summer. The use of fossil fuels could reverse the gains that were made in China by using clean energy sources during the first quarter of this year. The increased use of fossil fuels could also cause a new rise in emissions from the power sector, which are already at their highest during summer. This could reach a record high in 2025, if fossil energy production also reaches new heights. OUTPUT MOTOR MONITORING The trade truce is likely to spark an increase in manufacturing, but some materials will see a greater rise in production. Assemblies will increase and stockpiles will be replenished, resulting in a significant increase in the production of resins, plastics, and copper wires. Tariffs reduced, exports of Chinese goods and products are expected to increase in the next few months. Solar cells, toys, and furniture are examples of products that cannot be manufactured in large quantities elsewhere. They can provide a good indication of the health of China's manufacturing industry. The traffic at key Chinese container port could also be a good indicator of the health of Chinese manufacturers. Shipments of semi-finished and finished products are expected to increase in the coming months. These are the opinions of the columnist, an author for.
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South Korea's MFG purchases about 64,000 T of feed wheat, traders claim
Major Feedmill Group of South Korea (MFG) bought about 64,000 metric tonnes of animal feed wheat from worldwide origins that were optional in a private transaction on Wednesday, without holding an international tender. A consignment of goods was purchased for an estimated cost and freight (c&f), plus $1.50 per ton, as a surcharge to cover additional port unloading. The trading house Cofco was thought to have sold it. If the shipment is from the Black Sea, as some traders anticipated, it will be between July 25 and august 25. Black Sea wheat shipped via Cape of Good Hope (often done to avoid attacks against shipping in the Red Sea) should be transported between July 5 and august 5. If you are sourcing from Australia, Canada or the United States, your shipment will be between August 15 and Sept. 15 Russia, Denmark India and China cannot be considered as origins. Ukrainian wheat cannot be loaded in Ukrainian ports. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. The MFG bought around 60,000 tons soymeal on a separate deal with traders, said traders. (Reporting and editing by Louise Heavens, Michael Hogan)
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South Korea's NOFI buys estimated 65,000 tons corn, traders say
European traders reported that the leading South Korean animal feed manufacturer Nonghyup Feed Inc., (NOFI), bought approximately 65,000 metric tonnes of animal feed corn on Wednesday in an international bid seeking up to 138,000 metric tons. The corn was bought in one shipment for arrival in South Korea on or around 10 September. It was expected that the corn would only be from South America and South Africa. The estimated price was $234.46 per ton, cost and freight plus $1.50 for port unloading. It was thought that the seller would be Mitsui, a trading house. A second consignment up to 69,000 tonnes, also requested in the tender, was not purchased. The reports reflect the assessments of traders, and future estimates on prices and volume are possible. The tender requested shipment from South America from July 14 to August 2, or from South Africa from July 24 to August 12. The seller has the right to choose the origin of the corn they supply. However, traders were expecting South American origin. If South African corn was sourced, then only 55,000 tonnes would be required. Chicago corn futures dropped to Five-month lows Technical selling and ideal planting conditions in the U.S. Corn Belt pushed prices on Tuesday. NOFI also purchased about 60,000 tonnes of soymeal on Wednesday in a separate bid. (Reporting and editing by Vijay Kishore, with Michael Hogan)
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Alstom confirms that talks are ongoing about the Channel Tunnel trains but says there has been no agreement yet
Alstom, a French train manufacturer, said that it is in discussions about providing high-speed, double-decker trains to be used through the Channel Tunnel. However, no contract has yet been signed, according to the company. A spokesperson for the company confirmed that there were talks, but refused to name the operators, citing their confidential nature. The spokesperson also said the company would not reveal the size of any potential contract until it was signed. Financial Times reported the first reports of the talks. The Financial Times said that the second largest train manufacturer in the world was looking to supply trains between London and Europe's continental cities, including Paris, Brussels, and Amsterdam. Alstom CEO Henri Poupart Lafarge told analysts in a call after earnings that deregulation of the high-speed rail industry in Europe was creating new opportunities for both traditional and new operators to expand their fleets. Poupart-Lafarge stated that "Even the traditional operators now want to acquire more rolling stock in order to meet this growing demand." "We have made significant progress in certifying and homologating our trains for use in tunnels." Alstom’s Avelia Horizon is the only double-decked high-speed train on the market that offers low costs per seat with high capacity. The spokesperson stated that the model meets all technical requirements for operation in France, Britain, and the tunnel between the two. Avelia Horizon has so far confirmed orders for 115 trains with France's SNCF and 12 with Proxima - the first independent company in France to enter the high speed market - as well as 18 with Morocco's ONCF. Alstom is positioning this model as an important product for Europe's expanding cross-border rail industry, which has seen a surge in passenger demand amid the push to find more sustainable travel options. (Reporting from Anna Peverieri, Gdansk; editing by Milla Nissi-Prussak).
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South Korea's NOFI purchases about 60,000 T of soymeal from traders
European traders reported that leading South Korean animal feed manufacturer Nonghyup Feed Inc. purchased about 60,000 tons of soymeal in a Wednesday international tender. The soymeal could have been sourced from the United States or South America, but also China. The estimated price was $348.69 per ton, c&f. This included a surcharge of an additional port unloading. Trading house Olam was suspected to be the seller. The tender was for soymeal to arrive in South Korea by September 20. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. The tender stated that shipments were to be made between July 24 and august 12 from South America or between September 1 and 20, from China. Or between August 18 and september 6, if coming from the U.S. Pacific Northwest Coast. NOFI also released a separate bid to purchase up to 138,000 tonnes of animal feed corn, which also closes on Wednesday. (Reporting and Editing by Louise Heavens, Michael Hogan)
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South Korea's NOFI offers up to 60,000 tons of soymeal
European traders reported on Wednesday that leading South Korean animal feed manufacturer Nonghyup Feed Inc. has announced an international tender for the purchase of up to 60,000 tons of soymeal, sourced from South America or China. They said that the deadline for submitting price offers to the tender is also on Wednesday, May 14. Soymeal in a consignment between 40,000 and 60,000 metric tonnes was wanted for delivery to South Korea on or around September 20. They said that shipments were needed between July 24 and august 12 for South America, or between September 1 to 20 for China, or between August 18 and september 6 if they came from the U.S. Pacific Northwest Coast. Traders said that they were seeking offers in both outright and cost and freight included (c&f), as well as a premium to the Chicago September 2025 contract for soymeal. NOFI also released a separate bid to purchase up to 138,000 tonnes of animal feed corn, which also closes on Wednesday. (Reporting and editing by Emelia Matarise, Emelia Hogan)
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South Korea's NOFI offers to purchase up to 138,000 T of corn
European traders reported on Wednesday that the leading South Korean feedmaker Nonghyup Feed, or NOFI as it is commonly known, has launched an international tender for up to 138,000 tons of animal feed grain. Also, the deadline for submitting price offers to the tender is Wednesday, May 14th. Two consignments of corn, each ranging from 45,000 to 69,000 tonnes, are expected in South Korea in September. Around September 10, the first corn shipment was expected to arrive in South Korea. Shipping is required between August 8 and 27, if the product comes from the U.S. Pacific Northwest Coast, or the U.S. Gulf, between July 19 and August 7, from South America, between July 14 to 2nd, or from South Africa, between July 24 to 12th. Second corn shipment is expected to arrive in South Korea on or around September 20. If you are sourcing from the U.S. Pacific Northwest Coast, the shipment will be between August 18 and September 6, if from the U.S. Gulf of Mexico between July 29 and August 17, if from South America or South Africa between July 24 and August 12, or a combination between those dates. The sellers have the right of choice in the origins they supply. Traders said that they were looking for offers in both outright prices per tonne c&f as well as a premium to the Chicago September 2025 Corn contract. The traders said that Asian demand was sparked by the Chicago corn futures falling to a five-month low on Tuesday due to technical selling, and good planting conditions in the U.S. Corn Belt. NOFI also announced a separate tender on Wednesday to purchase up to 60,000 tonnes of soymeal. (Reporting and editing by Rashmi aich, with Michael Hogan)
Low gas prices, LNG need in spotlight at Gastech conference
Top energy executives and ministers will meet in Houston this week for the yearly Gastech conference, with U.S. markets in focus as growing melted gas (LNG) exports help wean Europe off Russian gas and as Asia moves away from coal.
The U.S., when an importer of LNG, has actually gone beyond Qatar as the world's top exporter, with brand-new innovation allowing America's. shale manufacturers to tap huge reserves. Both countries have. significant LNG expansion jobs underway, playing higher. value in international markets from Europe to Asia.
The conference comes to the U.S. for the first time considering that. 2019 as the country has also become the world's greatest natural. gas producer. U.S. gas production grew 4% in 2015 to. 125 billion cubic feet per day (Bcf/d). Exports of the. super-cooled gas leapt 12% to 11.9 Bcf/d.
Gastech expects to host some 50,000 guests from 125. countries, with sessions on everything from gas markets and. decarbonization to Expert system (AI) and energy. security.
Surging supply has actually pressed U.S. gas prices to
multi-decade lows
this year, hampering producers but benefiting consumers and. LNG companies
using record quantities
of gas.
By 2026, U.S. LNG exports should be double their 2024. levels, with annual feed gas requirements averaging 19.7 Bcf/d. in 2 years' time, stated Matthew Palmer, executive director at. S&P Global Product Insights.
Gas prices will be significantly higher in. 2025 as new LNG export jobs boost demand, stated Jim Simpson,. CEO of energy research study company, East Daley Analytics.
In the U.S., brand-new export capability development will support. Europe's dedication to divest away from Russian gas following. its intrusion of Ukraine, while using Asian buyers a greener. option for power generation.
Venture Global, whose CEO, Mike Sabel will talk to. attendees about the function of LNG in Europe's energy supply mix,. is amongst those companies. The business's Plaquemines LNG export. center in Louisiana will have an export capability of as much as 20. million metric tonnes per year, and is expected to start. operations this year.
The U.S. exported some 7.48 million metric lots of
LNG in August
, approximately 43% of which went to Asia, according to LSEG data.
GAS MANUFACTURERS BID THEIR TIME
U.S. shale gas companies are banking on brand-new LNG terminals to. boost their market and rates. Poor returns have actually forced some to. cut production this year.
The next 9 months have more opportunity of being. over-supplied than under-supplied since the LNG projects do. not arrive in force up until late next year, stated the president of. Aegis Hedging, Matt Marshall.
U.S. producers typically need Henry Hub natural gas. prices above $3 per million British thermals units (mmBtu) to. produce cash flow for more drilling, stated S&P Global's Palmer. Gas rates are currently around $2.33 per mmBtu and have only. traded above $3 a few times this year.
Henry Center gas prices are expected to average $2.19 per. mmBtu this year, the U.S. Energy Info Administration. ( EIA) stated today in a regular monthly report, lowering its estimate. by 11 cents from the prior forecast.
The general story here is that a manufacturer of natural. gas needs to not expect this market to turn outrageously bullish. with the turn of the year. It is going to require time and this. market is susceptible to lower costs actually until next summer season,. stated Aegis' Marshall.
Significant U.S. manufacturers, consisting of Chesapeake and EQT. were preparing to reduce production and defer well. conclusions in the 2nd half of 2024 in August, after prices. sank nearly 40% over the two months prior.
As those brand-new LNG projects come online and take in more shale. gas, costs are anticipated to enhance. The U.S. EIA is. forecasting an average Henry Hub cost of $3.14 next year.
Our expectation is that as LNG exports increase, the. market will return to stability, moving Henry Hub into the. $ 3-4/ MMBtu variety that will support a boost in production,. said Marshall.
(source: Reuters)