Oil prices fell more than 2% after a meeting between Joe Biden and European leaders resulted in an agreement to ship more LNG to the EU but no new sanctions targeting Russian oil exports.
The U.S. and the EU said they will aim to ship an additional 15 billion cubic meters of LNG to the bloc, part of efforts to ease the region's reliance on Russian energy supplies.
The fact that the meeting also didn't produce new sanctions targeting Russian oil exports directly eased fears of such an outcome, which could have tightened oil markets further, analysts said.
Read: U.S. Ramps Up Gas Deliveries to Europe Amid Scramble for New Supplies
Fitch said oil prices could remain volatile as the market grapples with export disruptions and the possible broadening of Russia sanctions to include oil-and-gas supply.
Export disruptions have exceeded Fitch's initial expectations, reflecting "self-sanctioning at the company level." It now expects Russian oil production for 2022 to contract by an average of 983,000 barrels a day, sharply lower production than its previous 692,000 barrels a day growth forecast.
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Copper and aluminum prices are set for higher levels of volatility for the rest of the year, according to Goldman Sachs.
Supplies are tight with stockpiles of both metals at around the same level that they started the year at. They are also at their lowest level since 2008, despite the first quarter typically being a "seasonal surplus" phase.
"Crucially, the first quarter's seasonal surplus traditionally creates the inventory buffer required to accommodate any demand and supply shocks later in the year," Goldman Sachs said. "Without it, prices must do all the work to balance markets."
EMEA HEADLINES
U.S. to Boost Gas Deliveries to Europe Amid Scramble for New Supplies
PARIS-The U.S. is ramping up shipments of liquefied natural gas to Europe this year as the continent hunts for new supplies around the globe to phase out its reliance on Russian energy after the invasion of Ukraine.
President Biden was meeting with European Union leaders at a summit in Brussels, where crafting a trans-Atlantic plan to slash Europe's purchases of Russian energy is a central topic. The U.S. and the EU on Friday said they would work to ship an additional 15 billion cubic meters of LNG for the 27-nation bloc this year, using supplies from the U.S. and elsewhere. The EU imported a record 22 billion cubic meters of LNG last year.
German Business Confidence Deteriorated Sharply in March, Ifo Says
Business confidence in Germany took a hit in March, falling to a fourteen-month low, as high energy prices and uncertainty from the Ukraine war dampened the short-term outlook.
The Ifo business-climate index declined to 90.8 points in March from 98.5 points in February, according to data from the Ifo Institute released Friday. This is the lowest reading since January 2021.
U.K. Retail Sales Weakened in Feb as Online Shopping Fell, People Returned to Offices
U.K. retail sales edged lower in February as the easing of Covid-19 restrictions led to a decline in online shopping, while spending tied to the return to workplaces and socializing increased.
Retail sales volumes last month weakened by 0.3% from January, the Office for National Statistics said Friday. Economists polled by The Wall Street Journal had forecast retail sales would weaken by 0.8%.
U.K. Consumer Confidence Falls as Ukraine War, Inflation Dampen Mood
Consumer confidence in the U.K. declined for the fourth consecutive month as the cost-of-living crisis and uncertainty stemming from the war in Ukraine hit households' mood.
The consumer-confidence barometer compiled by research firm GfK fell to minus 31 in March from minus 26 in February, the lowest level since November 2020, when the country was dealing with a surge in Covid-19 cases.
Yokohama Rubber to Buy Agricultural, Industrial-Machinery Tire Business From Sweden's Trelleborg
Yokohama Rubber Co. said Friday that it will acquire the agricultural and industrial-machinery tires business of Sweden's Trelleborg AB for 2.04 billion euros ($2.24 billion).
The Japanese tire company said the acquisition of Trelleborg Wheel Systems Holding AB would strengthen its commercial tire business.
Smiths Group 1H Pretax Profit Rose on Strong Demand; Backs Guidance
Smiths Group PLC said Friday that first-half pretax profit and revenue rose, and that it is confident in meeting guidance for the full year.
The British engineering group said it made a pretax profit of 160 million pounds ($211 million) for the half year ended Jan. 31 compared with GBP84 million in the year-earlier period.
BP to Invest $1.3 Bln in UK Electric-Vehicle Charging Infrastructure
BP PLC said Friday that it plans to invest 1 billion pounds ($1.32 billion) to expand electric-vehicle charging in the U.K. over the next 10 years.
The energy major said BP Pulse will triple the number of public charging points in its U.K. network with 300-kilowatt and 150-kilowatt ultra-fast charging points.
U.K. Car Manufacturing Had Worst February in 13 Years, War to Hurt Further
U.K. car manufacturing had its worse February in 13 years as the industry continued to suffer from the global chip shortage and the loss of a major plant last Summer, an industry body said Friday as it warned that the war in the Ukraine will hurt the sector further.
The Society of Motor Manufacturers and Traders said that a total of 61,657 cars drove off production lines in February, compared with 105,008 in February 2021, and 59,777 in for the same month in 2009.
China Looks to Salvage Relationship With Europe
With its ties with the U.S. shakier than in decades, Beijing is becoming wary that its alignment with Russia during the Ukraine crisis could also cost it a relationship that has sometimes functioned as a buffer in its contest with Washington: Europe.
For years, Chinese leaders have deployed a divide-and-conquer approach to Europe, enticing some nations such as Germany and those in Central and Eastern Europe with both market access to the world's second-largest economy and greater Chinese investments in some of those countries.
U.S., EU Reach Preliminary Deal on Data Privacy
BRUSSELS-The U.S. and the European Union reached a preliminary deal on controlling how digital data moves between their two markets, European Commission President Ursula von der Leyen said Friday.
The deal, if concluded, could resolve one of the thorniest outstanding issues between the two economic giants and assuage concerns of companies with operations on both sides of the Atlantic. An earlier deal regulating trans-Atlantic data flows was deemed illegal by the EU's top court in 2020.
Russian Central Bank Chief Tried to Quit Over Ukraine War
Russian Central Bank Gov. Elvira Nabiullina tried to resign after the invasion of Ukraine, people familiar with the matter said. Her effort was rejected by Russian President Vladimir Putin who instead nominated her for a third term.
Over nearly a decade Ms. Nabiullina has been one of Mr. Putin's most stalwart allies in buttressing the Russian economy against volatile oil prices and U.S. sanctions in a growing face-off with the West, while remaining one of the few liberals who hold senior positions in the Russian government.
Biden Calls for Russia to Be Expelled From G-20
BRUSSELS-President Biden said Russia should be expelled from the Group of 20 major economies and pledged the U.S. would take in up to 100,000 refugees fleeing Ukraine as he met Thursday with world leaders to discuss new sanctions and humanitarian aid in response to Moscow's invasion.
The gatherings in Brussels came amid concerns that Russian President Vladimir Putin could order the use of chemical or other unconventional weapons in Ukraine, a move Mr. Biden said would trigger a response from the U.S. and allies.
GLOBAL NEWS
U.S. to Boost Gas Deliveries to Europe Amid Scramble for New Supplies
PARIS-The U.S. is ramping up shipments of liquefied natural gas to Europe this year as the continent hunts for new supplies around the globe to phase out its reliance on Russian energy after the invasion of Ukraine.
President Biden was meeting with European Union leaders at a summit in Brussels, where crafting a trans-Atlantic plan to slash Europe's purchases of Russian energy is a central topic. The U.S. and the EU on Friday said they would work to ship an additional 15 billion cubic meters of LNG for the 27-nation bloc this year, using supplies from the U.S. and elsewhere. The EU imported a record 22 billion cubic meters of LNG last year.
India's Russian-Oil Buy: Red Flag or Red Herring?
Desperate times call for desperate measures.
The adage may sum up India's recent decision to buy discounted Russian oil. While it raised eyebrows in the West, the purchase at this time of soaring prices likely represents opportunistic buying by the world's third-largest crude importer rather than a significant structural shift.
Derby's Take: Cleveland Fed Finds Some Data Understate Inflation Trend
Underlying levels of inflation haven't been as moderate as some recent Federal Reserve data have shown.
According to a report Thursday from the Federal Reserve Bank of Cleveland, a modernized way to measure inflation has been knocked out of whack by the pandemic and a major shift in consumer spending from services into goods.
Small Trucking Companies Are Getting Squeezed by Soaring Diesel Prices
The rapid rise in diesel fuel prices this month is squeezing freight transportation companies and their customers, and leaving small trucking operators struggling to catch up with the escalating costs.
Independent operators and smaller fleets are most exposed to diesel prices that have hit record highs because they have less leverage with shippers and are having a harder time matching fuel surcharges to the rising rates at the pump.
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03-25-22 0638ET
