Brazil real recovers ground on US dollar

Spanish Market: Agriculture, Crude oil, Fertilizers, Natural gas, Oil products
22/01/25

The Brazilian real continued to strengthen against the US dollar today thanks to increased investor confidence domestically and an easing in the dollar globally in recent days after the real tumbled in the last weeks of 2024 on fiscal concerns.

The exchange rate ended the session at R5.946/$1, as the real appreciated by 1.4pc on the day. The real has strengthened by about 7.8pc to the dollar from an intradday low of R6.4/$1 on 25 December. The last time the exchange rate between the two currencies ended the day below the R6/$1 threshold was on 11 December, when it stood at R5.989/$1.

The real's recent appreciation took place as domestic investors are more confident about the country's spending cut plans, according to Sidney Lima, an analyst at Ouro Preto Investimentos, an investment management firm.

But it is hard to say whether the recent appreciating trend will continue in the future, he said. That will "depend on the continuity of fiscal reforms in Brazil and global economic conditions," he added.

At the same time, the US dollar index, which tracks the dollar against six main trading partner currencies, has fallen from a more-than two-year high on 12 January on uncertainty over whether US president Donald Trump will follow through on his tariff threats.

Still, the Brazilian real has depreciated by around 20pc to US dollar since 22 January 2024.

By Lucas Parolin

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

23/04/25

India, Saudi Arabia to establish two Indian refineries

Mumbai, 23 April (Argus) — India and Saudi Arabia will collaborate on establishing two refineries and petrochemical projects in India, according to an Indian government release today. Indian prime minister Narendra Modi met Saudi prime minister Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 had pledged to invest $100bn in India in multiple areas including energy, petrochemicals, infrastructure, technology, fintech, digital infrastructure, telecommunications, pharmaceuticals, manufacturing and health. The government did not disclose further details, but industry sources said that one of the two refineries might be Indian state-run BPCL's planned refinery in Andhra Pradesh , which Saudi Arabia's state-controlled Saudi Aramco may join as an investor. The other one might be a refinery in Gujarat, under a partnership with Indian upstream firm ONGC and Aramco. But plans for a 1.2mn b/d refinery in Ratnagiri in collaboration with IOC and Adnoc have mostly been ruled out, because of logistical issues relating to the size of the refinery and land acquisition hurdles, among others. Saudi Arabia is the third-largest crude supplier to India, making up 15pc or 712,000 b/d of India's total imports in January-March, data from oil analytics firm Vortexa show. Saudi Arabia's share in the Indian market has declined, after Russia became India's biggest supplier following its war with Ukraine. Modi's trip to the Middle East comes close on the heels of US vice president JD Vance's visit to India on 21 April. The visit included negotiations for an India-US bilateral trade agreement and efforts towards enhancing co-operation in energy, defence, strategic technologies and other areas. JD Vance in India Vance said on 22 April at his speech in Jaipur that India will benefit from US energy exports and said the US wants to help India explore its own considerable natural resources, including its offshore natural gas reserves and critical mineral supplies. US president Donald Trump has pushed India to step up its purchases of US crude and LNG. Crude imports from the US doubled on the month to 289,000 b/d in March, of which 65,000 b/d was Canadian Cold Lake crude, according to trade analytics firm Kpler. The visits come at a time when geopolitical and trade uncertainty has risen, because of Trump's volatile tariff policies. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cyclone, outages cut Australia’s Woodside output in 1Q

23/04/25

Cyclone, outages cut Australia’s Woodside output in 1Q

Sydney, 23 April (Argus) — Australian independent Woodside Energy's LNG output dropped in January-March, because of Cyclone Zelia and the retirement of its North West Shelf's (NWS) 2.5mn t/yr train 2 in late 2024. Woodside's overall LNG production fell by 14pc from 231,200 b/d in October-December to 213,900 b/d in January-March (see table) . LNG production at Woodside's 14.4mn t/yr NWS project fell by 22pc on the year to near a three-year low of 71,100 b/d of oil equivalent (boe/d) in January-March, as category 5 storm Cyclone Zelia hit the WA coastline in early February. Woodside's chief officer Meg O'Neil is calling for certainty on the continuation of operations at NWS beyond 2030 , as the firm has yet to receive federal consent, after receiving state government approval late last year. The decision lies with whomever forms government following the federal election on 5 May. Woodside's 4.9mn t/yr Pluto LNG project offshore Western Australia's production dropped by 11pc on the year to 115,000 b/d in the January-March quarter, because of three unplanned outages, which caused days-long shutdowns. This comes after a previous unplanned outage in November 2024 caused by a faulty control system , which halted LNG production for seven days. The cause of the outage is under investigation and the company said it will continue to monitor the facility to minimise the risk of future unplanned outages. Woodside's 13pc interest in Wheatstone remained steady, with production up by 3pc on the year to 26,900 b/d in January-March, from 26,200 b/d in the same period a year earlier. By Grace Dudley Woodside LNG production (mn boe) NWS Pluto Wheatstone* Total Jan-Mar '25 6.4 10.4 2.4 19.2 Oct-Dec '24 7.1 11.2 2.5 20.8 Jan-Mar '24 8.2 11.8 2.4 22.3 2024 29.4 46.7 9.3 85.5 2023 32.8 45.6 10.2 88.6 y-o-y % ± -21.9 -11.3 2.8 -7.5 q-o-q % ± -10.1 -7.1 -1.5 -13.7 *Woodside controls a 13pc interest in Wheatstone LNG Source: Woodside Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

FERC commissioner Phillips resigns from agency

22/04/25

FERC commissioner Phillips resigns from agency

Washington, 22 April (Argus) — Democratic commissioner Willie Phillips has resigned from the US Federal Energy Regulatory Commission (FERC) after serving more than three years at an agency responsible for permitting natural gas infrastructure and regulating wholesale power markets. Phillips' departure will clear the way for President Donald Trump to nominate a replacement at FERC, who once confirmed by the US Senate would provide Republicans a 3-2 majority for the first time since 2021. Phillips, whose term was not set to expire until June 2026, had a reputation for negotiating bipartisan deals on contentious orders involving pipelines and power market issues in the two years he served as FERC's chairman under former president Joe Biden. Phillips has yet to release a statement explaining his abrupt resignation. But Trump has already fired Democratic commissioners and board members at other agencies that, like FERC, are structured as independent from the White House. Two of the fired Democrats, who were serving at the US Federal Trade Commission, have filed a lawsuit that argues their removal was unlawful under a 1935 decision by the US Supreme Court. The White House did not respond to a question on whether it had pressured Phillips to resign. FERC chairman Mark Christie, a Republican, offered praise for Phillips as a "dedicated and selfless public servant" who sought to "find common ground and get things done to serve the public interest". Christie for months has been downplaying the threats to FERC's independence caused by Trump's executive order that asserts sweeping control over FERC's agenda. Energy companies have come to depend on FERC in serving as independent arbiter in disputes over pipeline tariffs and electricity markets, without the consideration of political preferences of the White House. Former FERC chairman Neil Chatterjee, a Republican who served in Trump's first term, said in a social media post it was "disappointing" to see Phillips pushed out after he "played it straight" in his work at the agency. As chairman, Phillips was able to authorize a "massive LNG project" — the 28mn t/yr CP2 project — at a time when Biden had sought to pause LNG licensing, Chatterjee said. Separately, Paul Atkins was sworn in as the chairman of the US Securities and Exchange Commission (SEC) on 21 April, after the US Senate voted 52-44 earlier this month in favor of his confirmation. Atkins was previously the chief executive of financial consulting firm Patomak Global Partners and served as an SEC commissioner from 2002-08. Republicans will now have a 3-1 majority at the SEC. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Halliburton working to mitigate tariff impact: Update

22/04/25

Halliburton working to mitigate tariff impact: Update

Adds details from call. New York, 22 April (Argus) — Oilfield services giant Halliburton said it is working to mitigate the impact of tariffs, but still expects to take a 2-3¢/share hit on its second quarter profits. About 60pc of the tariff impact will fall on Halliburton's completions and productions unit, which includes its hydraulic fracturing business, while the rest will affect the drilling and evaluation operation. The company said it has a well-diversified supply chain and can pull other levels to mitigate the effect of tariffs. "We need a bit more clarity and stability in the structure of tariffs so that we can really understand what levers we can pull and then what the overall outcome is going to be," chief financial officer Eric Carre told analysts today after Halliburton posted first quarter results. Quizzed about the market turmoil resulting from US president Donald Trump's growing trade wars, the company said customers are still digesting how their operations will be affected. "From our perspective anyway, the market's not building new equipment," said chief executive officer Jeff Miller, helping to avoid the risk of an oversupply seen in past cycles. Moreover, US upstream companies are more "biased to working through things" than in the past, he added, echoing comments from Liberty Energy last week that the industry is better placed to withstand a downturn than in the recent past given a focus on capital restraint rather than growth at any cost. Halliburton recognized there is more uncertainty now than there was three months ago. However, its international business reported a "solid start" to 2025, with significant contract awards. Even as the market slows in North America, Halliburton aims to outperform rivals by driving technology gains and improving the quality of its services. "Many of our customers are in the midst of evaluating their activity scenarios and plans for 2025," said Miller. "Activity reductions could mean higher than normal white space for committed fleets, and in some cases, the retirement or export of fleets to international markets." International revenue this year is expected to be flat to slightly down compared with 2024, given increased risks to the outlook. Miller struck an upbeat tone in discussing the industry's long-term prospects, despite tariffs and the earlier return of Opec+ barrels, both of which have weighed on oil prices. Demand is at record levels and fossil fuels will play a key role in meeting future energy demand. "Decline curves are real, and in many basins significant, and adequate supplies today do not guarantee adequate supplies tomorrow without ongoing investment," Miller warned. "Our technology will continue to transform the industry and it will unlock new sources of value for us and our customers." 1Q profit, revenue down Profit of $204mn in the first quarter was down from $606mn in the same three months of 2024. Revenue slipped to $5.4bn from $5.8bn. North America revenue fell by 12pc to $2.2bn, largely because of lower stimulation activity in US land as well as a decline in completion tool sales in the Gulf of Mexico. International sales dipped by 2pc to $3.2bn, with Latin America revenue falling 19pc because of a slowdown in Mexico. However, revenue grew in Europe, Africa, the Middle East and Asia. The company also reported a pre-tax charge of $356mn from employee severance costs and an impairment of assets held for sale. Halliburton is the first of the top oilfield services firms to release results. Baker Hughes will follow later on Tuesday, and SLB at the end of the week. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Bulk organic imports avoid US fees on Chinese ships

22/04/25

Bulk organic imports avoid US fees on Chinese ships

Minneapolis, 22 April (Argus) — The fees imposed by the US on Chinese-built vessels will not significantly impact maritime organic imports to the US due to exceptions for small bulk vessels, but containerized imports will face some fees. The US announced Thursday that it will impose fees of $50/net ton (nt) on Chinese ship operators and $18/nt, or $120/container, on Chinese-built ships. Most organic imports to the US, especially for corn and organic soybeans, use bulk vessels to ship to the US. During the 2024-25 marketing year through March, no bulk vessel bringing organic corn and soy products into the country exceeded 70,000 dwt, according to bill of lading data. The fees will exclude any Chinese-built bulk vessel with a capacity of under 80,000 dwt, according to the US Trade Representative (USTR). As a result, bulk organic imports into the US will avoid these fees, even if imported on a Chinese ship. Some organic imports are brought in using containers. For a container with 21 metric tonnes (t) of organic soybeans, a fee of $120/container would be $0.16/bushel. The fee would be similar for a container of organic corn, but organic corn is rarely imported via container. The fee for a container with 21t of organic soybean meal will be $5.18/short ton. Some exporters to the US are more exposed to the fees on containers because of higher use of containerized freight. Shipments from the Black Sea used entirely bulk vessels over the past year, which will avoid the fees. Exporters in Africa and India, however, use containers for most exports and will be more exposed. Africa supplied 50pc of US maritime organic soybean meal imports during the 2023-24 marketing year, according to Argus estimates. All imports of organic soybeans from Argentina since last May used bulk vessels because of the higher cost of containerized freight to the US. If containerized freight rates between the US and Argentina fall, some organic commodities could be exported to the US by containers. Organic imports could also face some delays because of these fees, market contacts said. Some containers may wait at port longer until a non-Chinese-built vessel is available to ship the product to the US. This would lead to longer shipping times into the US and potentially to demurrage charges. The fees will take effect in October and will escalate over the next three years. The fees on a container brought in on a Chinese-built vessel will grow each year from $120/container in 2025 to reach $250/container in April 2028. By Alexander Schultz Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more