US growth quickens to 3.4pc in 3Q on investment

Spanish Market: Metals, Natural gas
29/10/26

US economic growth accelerated to an annual 3.4pc rate in the third quarter, as stronger investment and a rebound in government spending spurred growth, the Bureau of Economic Analysis (BEA) said today.

Gross domestic product (GDP) increased from 2.2pc in the second quarter and 2.5pc in the first quarter, BEA said in its first of three estimates for the quarter. Growth topped economists' estimates of a median 3.2pc in a survey by Trading Economics. It was the fastest growth in a year.

The economy picked up speed even as the Mideast Gulf conflict, which began in February, lifted energy prices.

The data follow the Federal Reserve's decision Wednesday to hold its target rate unchanged after a quarter-point hike in September. The Fed said economic activity is "expanding at a strong pace" but that inflation "remains elevated."

Investment, much of it driven by artificial intelligence (AI) and the data center buildout, led the acceleration in GDP growth, rising by 19.6pc as equipment spending jumped by 20.9pc and spending on intellectual property products climbed by 8.4pc. Residential investment declined by 3.3pc.

Consumer spending, the biggest part of the economy, rose by 3.8pc, matching its pace in the second quarter. Exports declined by 5.7pc, primarily because of lower shipments of petroleum and related products. Imports, which subtract from growth, rose by 19.7pc.

Government spending, including investment, rose by 5.3pc, with federal spending up by 15.8pc and state and local spending flat.

By Bob Willis

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29/10/26

IRGC claims three tankers hit mines in SoH

New York, 29 October (Argus) — Iran's Islamic Revolutionary Guard Corps (IRGC) claimed on 29 October that three oil tankers caught fire and were abandoned after striking naval mines in the "unauthorised route" of the strait of Hormuz, but the claims have not been independently verified. The claims follows previous IRGC statements attributing vessel incidents to naval mines. The US Central Command (Centcom), which oversees US forces in the Middle East, said yesterday that Iranian media claims of vessels hitting sea mines while transiting the strait of Hormuz are false, adding that the primary transit route of the strait remained free of mines. The IRGC Navy said the tankers struck the mines while attempting to transit the southern route of the disputed waterway with their radar and navigation systems off and while "ignoring warnings" from Iranian forces, according to Iranian news agency Tasnim. The identities of the vessels remains unknown, and their cargoes and the status of their crews were not immediately clear. This morning, the UK Maritime Trade Operations Centre reported that an unidentified vessel caught fire 17 km offshore Khasab, northern Oman, in the Mideast Gulf, but it is unknown if these incidents are related. Meanwhile, the US warned commercial vessels this week to plan for additional transit times near the strait of Hormuz and the Gulf of Oman as military operations step up the blockade of Iranian ports and coastlines in response to Iran's continued aggression. At least 28 attacks on vessels have been reported between 1-21 October, the highest number since the start of the US-Iran war. By Delfina Marchese Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Iran downplays latest US overture

29/10/26

Iran downplays latest US overture

Washington, 29 October (Argus) — Iran has confirmed receiving a diplomatic missive from US vice president JD Vance but is restating its conditions for allowing free navigation through the strait of Hormuz. Neither Tehran nor Washington disclosed the content of Vance's letter or explained its timing. President Donald Trump on Wednesday presented the message as Vance's initiative, which, Trump said, had to do with providing "help with medical supplies and various things". Vance addressed his letter to Iran's supreme national security council secretary Mohsen Rezaei, according to Iranian news agency Tasnim. Rezaei has yet to respond to the letter, but Tehran would insist on the US' consent to the conditions set for allowing free navigation through Hormuz, said Tasnim, which is affiliated with Iran's Islamic Revolutionary Guard Corps. Iran's conditions effectively restate, and demand implementation, of the concessions Trump agreed to in June under a briefly-lived Memorandum of Understanding with Iran. Tehran is eyeing repatriation of frozen Iranian assets in foreign banks, the lifting of the US naval blockade and broad sanctions relief. The Trump administration appears to believe that those concessions are no longer plausible. The US naval blockade has chocked off Iran's crude exports since mid-July. A US military-assisted campaign has increased the flow of oil through Hormuz. But the US-sponsored maritime oil transporting operation has significantly increased freight and insurance costs for the tankers that do make it to the Gulf of Oman without being hit by Iran. The US military on Wednesday warned commercial vessels to plan for additional transit times near the strait of Hormuz and Gulf of Oman as military forces step up the blockade of Iranian ports and coastlines. Tehran says it has reasons to be wary of any diplomatic overtures from the US. Both in June 2025 and February 2026, US diplomatic outreach to Tehran set the scene for US military strikes against Iran. The White House may feel less constrained over resuming large-scale hostilities with Iran after the midterms elections, as Trump has indicated. Israel held a parliamentary election on 27 October, with interim results signaling that prime minister Benjamin Netanyahu could to remain in office in the near term, at least in a caretaker capacity. But "I don't see any possibility of what President Trump is looking for, which is a knockout punch that will essentially force the Iranians into a compromise or capitulation", Washington-based Carnegie Endowment senior fellow Karim Sadjadpour said last week. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Nabors sees ‘huge potential’ in Venezuela

29/10/26

Nabors sees ‘huge potential’ in Venezuela

Pittsburgh, 29 October (Argus) — US-based drilling rig operator Nabors sees "huge potential" to grow its rig count in Venezuela and expects its Lower 48 rig count to extend gains into the fourth quarter. Nabors said the broader outlook for Venezuela is improving, with customers considering new long-term drilling programs. "With the right commercial arrangements, Venezuela could quickly become a meaningful contributor to our international business," president and chief executive Anthony Petrello said on an earnings call. Venezuela has slowly re-emerged as an oil exporter following the lifting of US sanctions after the 3 January seizure of former leader Nicolas Maduro and years of underinvestment. Crude output for the country has increased by 200,000 b/d since January to 1.2mn b/d in September but remains well below its past peak of 3mn b/d . Nabors won a multi-year drilling contract in Venezuela in the third quarter and is redeploying an idle US rig to meet its undisclosed client's schedule. The country currently has nine working rigs, down from more than 85 in 2013, Petrello said. Nabors retained a small employee presence in the country during the downturn and maintained its rigs there to the best extent possible. Nabors is tracking more than 20 additional rig opportunities in Venezuela, excluding potential increases by vertically integrated operators with their own rigs, Petrello said. The company has five idle rigs in Venezuela ready to respond to increased activity. "We are evaluating a number of opportunities with long-standing customers and other customers in Venezuela to start operations next year," Petrello said. Nabors expects its international drilling rig count to average 92-93 rigs in the fourth quarter and exit the year with 92 rigs. Intensified hostilities in the Middle East delayed some rig growth and equipment deliveries during the quarter. Nabors received suspension notices for five rigs in Saudi Arabia and pushed one rig deployment from the fourth quarter into the first quarter because of the disruption. Despite those delays, it remains on schedule for 18 new-build rigs to begin operations in the fourth quarter, chief financial officer Miguel Rodriguez said. In its US business, Nabors' average Lower 48 rig count increased by six sequentially in the third quarter to 73. The company ended the quarter with 74 rigs and expects to average 75 rigs in the fourth quarter, exiting 2026 with 76-77 rigs, Rodriguez said. Nabors expects tight US rig availability and consistent global demand to support further price gains. By Brad MacAulay Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Fed holds rate steady, awaits more data: Update

28/10/26

Fed holds rate steady, awaits more data: Update

Adds Warsh comments, details, economy background Houston, 28 October (Argus) — The US Federal Reserve on Wednesday held its target interest rate steady at 3.75-4pc, pausing after last month's hike as policymakers weighed renewed inflation pressures against signs of a softer US labor market. The Federal Open Market Committee (FOMC) voted to keep the federal funds target range unchanged, saying the "accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee's 2 percent goal." The vote to hold was 10-2, with governor Lisa Cook and Cleveland Fed president Beth Hammack dissenting in favor of an increase. The decision by the FOMC was broadly expected even as policymakers had said in September they expected at least one more hike by the end of the year. The Fed raised rates by 25 basis points in September to 3.75-4pc, its first increase since July 2023. Fed chairman Kevin Warsh told reporters after the meeting Wednesday that Fed policymakers remain primarily focused on elevated inflation while describing US employment conditions as "positive". The FOMC said in its statement that economic activity is expanding at a "strong pace" compared with a "solid pace" in the September statement. The statement Wednesday reiterated that "uncertainty remains elevated," largely due to geopolitical tensions, while domestic spending is "resilient" and capital investment is "robust". After Wednesday's decision, the CME FedWatch tool showed an 82.6pc probability of a quarter point hike at the final meeting of the year in December. The Fed has been balancing inflation pressures that are accelerating on Gulf war-related energy spikes against a cooling labor market. Consumer prices rose by 3.7pc in September from a year earlier, accelerating from a 3.4pc annual increase in August. The labor market has shown signs of weakening. US employers added just 29,000 jobs in September, down from a downwardly revised 133,000 in August, while the unemployment rate edged up to 4.2pc, still near multi-decade lows. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US pushing further cuts to methane regulations

28/10/26

US pushing further cuts to methane regulations

Washington, 28 October (Argus) — President Donald Trump's administration has unveiled a proposal to roll back methane regulations on the oil and gas industry, ahead of a subsequent initiative that could end further federal regulation of the potent greenhouse gas. The proposal — released on Tuesday — is meant to provide "near-term relief" on oil and gas methane rules that the US Environmental Protection Agency (EPA) said were unachievable, unreasonable or lacked clarity. The administration said the existing methane rules, which were issued under former president Joe Biden, will result in 100,000-200,000 low-producing wells closing by 2030 because of the costs of coming into compliance. "I'm officially terminating Biden's expensive and unnecessary methane regulations to save consumers and energy producers $45bn in costs," Trump said at an event in Texas on Tuesday. The proposal rollback, which will be open to comment through 16 December, would dismantle key parts of Biden-era regulations that were expected to cut the industry's methane emissions by nearly 80pc below baseline levels. EPA plans to eliminate a program to monitor for massive methane leaks called "super emitter" events it said was unnecessary, while ending a ban on flaring of associated gas at oil wells it said was infeasible in some locations. Another major cut to the rules would cut methane detection at the estimated 1mn "marginal" wells in the US that produce less than 15 b/d of oil equivalent (boe/d) but account for roughly half of the industry's methane emissions. EPA said weakening those rules will mean only about 25,000 wells will be decommissioned in 2029, rather than nearly 200,000 wells if the rules stayed intact. Those and other changes will result in 55,000 boe/d more oil and gas production by 2030 compared to a baseline scenario, the agency expects. EPA began dismantling the methane rules soon after Trump started his second term. The agency already cut back on mandatory flare testing and delayed some compliance deadlines by 18 months or longer. In the latest proposal, EPA said it will decide whether to eliminate the methane rules entirely once it finalizes a rule where it claims to have no authority to regulate greenhouse gas emissions from power plants. "EPA's proposal sets the stage for the complete deregulation of methane under the Clean Air Act even after a decade of widely supported standards and multiple congressional actions mandating that EPA regulate methane," Clean Air Task Force methane regulatory director Darin Schroeder said. Oil and gas groups lauded EPA for its proposal to cut back on methane regulations. The regulations as initially finalized under Biden would have "threatened the continued operation of hundreds of thousands of marginal wells nationwide", Independent Petroleum Association of America chief executive Edith Naegele said. EPA expects the rule will result in 54mn-80mn metric tonnes of additional methane emissions through 2050, which at the high end would produce the same annual greenhouse gas emissions of 24 coal-fired power plants. Another effect of the rollback will be increased ozone emissions and smog, particularly in oil-producing states such as Texas, New Mexico and Oklahoma, EPA found. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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