Markets ever more sensitive to disruption: Glencore

: Crude oil, Metals, Natural gas, Oil products
26/08/05

Energy markets are increasingly sensitive to disruptions because of the significant inventory drawdowns in the first half of this year, trading firm Glencore said today.

Reporting its results for the January-June period, Glencore said the volatility was such that it waived its $200mn value-at-risk (VaR) limit for a period between March and May.

Glencore uses VaR to provide an estimate of the potential loss on risk positions over a defined time horizon, at a specified confidence level, based on historical price movements. It said the measure hit a high of $456mn during the first half, when it averaged $165mn. The measure averaged $72m in the comparable period in 2025.

Glencore expects market volatility to remain "above historical norms" for some of the second half of this year, "albeit at lower levels than experienced during the first half."

Glencore today said adjusted earnings before interest and taxation, depreciation and amortisation (Ebitda) at its Marketing business, which encompasses its trading operations, rose to $3.64bn in January-June, from $1.7bn a year earlier. The increase was driven mainly by oil and gas trading operations, it said.

The company's Industrial business, which includes its extensive mining operations and its small crude production concern, made an adjusted Ebitda of $6.5bn, up by 72pc on the year.

Glencore's overall profit in the first half of the year was $4.4bn, compared with a loss of $655mn a year earlier.

By Ben Winkley

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.

News

26/08/05

Australia’s BHP faces iron ore port strike in August

Sydney, 5 August (Argus) — Unionised workers at Australian mining firm BHP's Port Hedland iron ore export operations will strike on 8-9 August after the company and employees failed to reach a breakthrough at the last enterprise bargaining meeting on 4 August. The meeting was productive but failed to resolve substantive issues, the combined port unions — the Electrical Trades Union, Australian Workers Union and Australian Manufacturing Workers' Union — said on 4 August. BHP has committed to tabling an updated enterprise agreement (EA) proposal at the next bargaining meeting scheduled for 18 August, a spokesperson for the firm said today. Significant progress was made at the 4 August meeting, which was mediated by Australia's workplace ombudsman the Fair Work Commission, BHP added. Industrial action will start with a 24-hour ban on ship-loading from 05:30 AWST on 8 August (21:30 GMT, 7 August), followed by a 24-hour work stoppage from 05:30 AWST on 9 August (21:30 GMT, 8 August). About 150 workers plan to join the action over the weekend. The Chamber of Minerals and Energy (CME) WA estimates that a 24-hour stoppage at Port Hedland would cost BHP A$120mn ($83mn) in export revenue. BHP has been negotiating a new EA with its Port Hedland maritime workforce since October 2025, which will cover around 450 employees, excluding contractors. Up to 236 of these workers are eligible to strike, Fair Work Commission (FWC) records show. Port Hedland has a total workforce of around 1,200 workers. Port Hedland workers last held industrial action on 16 July , but this did not prevent a loaded vessel from leaving the port early on 17 July, BHP said, despite about 63 workers participating in the strike. Port Hedland is the world's largest bulk iron ore export port and a key export hub in BHP's WA iron ore supply chain. BHP produced 256.9mn t of iron ore from its WA operations in the July 2025-June 2026 fiscal year. All of BHP's WA iron ore is exported through Port Hedland. By Emma Partis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Texas halts data center approvals: Update

26/08/04

News

26/08/04

Texas halts data center approvals: Update

Updates with comment from American Electric Power Houston, 4 August (Argus) — Texas governor Greg Abbott (R) has halted approvals for new data center projects seeking to connect to the state's power grid until regulators complete an audit of the facilities, directing the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to expand its review of all projects advancing through the interconnection process. Under the order made Monday, regulators must collect information on power consumption, water use, on-site generation plans, tax incentives, ownership structures and potential impacts on local communities. Projects that fail to comply with the review must be denied connection to the Texas grid. The order comes as opposition to data center development spreads across Texas and pressure mounts on Abbott to take a tougher stance on the industry. Local governments across the state have pursued moratoriums and proposed new restrictions on data centers, while elected officials from both parties have called for greater scrutiny of facilities' effect on the grid, water supplies and rural communities. Against that backdrop, Abbott's directive expands an ongoing effort by ERCOT and the PUCT to vet large-load projects, broadening the review beyond grid planning to include resource consumption, incentives and local impacts. ERCOT is currently considering approximately 474GW of requests to connect to the Texas grid, more than five times the state's record peak electricity demand, Abbot said. Roughly 90pc of those requests are associated with data centers, according to the governor. "That unprecedented load growth could endanger the reliability and stability of the Texas electric grid," Abbott wrote in the directive. The review is necessary in part because some data centers failed to comply with a state survey measuring water and power usage, he said. He also cited concerns raised during legislative hearings and public meetings regarding the sector's impact on local communities and critical infrastructure. The Data Center Coalition, which represents major data center operators, said it supports the review if it helps distinguish legitimate projects from speculative proposals. "We are hopeful this directive from the Governor will help separate those who are responsible water and energy stewards from those who are not," said Dan Diorio, the group's executive vice president of state policy and government affairs. "With billions of dollars in investment and hundreds of thousands of jobs on the line, we urge the PUCT and ERCOT to move swiftly." Behind the hype Texas officials have been struggling to determine how much of the state's projected load growth is genuine and how much reflects speculative filings, duplicate applications and so-called "ghost load" requests. Regulators have warned that inflated interconnection queues make it difficult to forecast future demand and risk prompting unnecessary spending on generation and transmission infrastructure, potentially saddling consumers with the cost of investments that ultimately prove unnecessary. In an effort to streamline the process, the state launched Batch Zero , which was developed to help separate credible projects from speculative proposals by imposing stricter requirements on large-load customers. Under the framework, projects seeking 75MW or more that meet certain financial commitments are grouped into a single system-wide study intended to identify which projects are prepared to move forward and what transmission infrastructure may be required to serve them. In a notice to market participants Monday, ERCOT said it was pausing the process and would not issue the 7 August classifications scheduled under the study, delaying a key milestone that would have informed developers whether their projects had been selected for evaluation in the first batch. "ERCOT is reviewing governor Abbott's letter concerning data centers and will work with the Public Utility Commission of Texas to implement the governor's directive, including postponement of the Batch Zero transmission planning study," the grid operator said. American Electric Power, one of the largest utilities participating in ERCOT's new large-load review process, said it is monitoring the governor's order and assessing potential impacts. The company recently disclosed that it has submitted about 45GW of prospective demand to ERCOT for interconnection, making it one of the biggest utility stakeholders in Batch Zero. "We respect governor Abbott's focus on supporting Texas' continued economic growth while ensuring a reliable and resilient electric system, and we will continue to work constructively with state leaders, ERCOT, customers and other stakeholders as this process moves forward," the company said in an email to Argus . The Columbus, Ohio-based utility said it remains confident in its Texas growth outlook, citing demand from large oil and gas companies, industrials and data centers. ERCOT said it would consult with the commission on next steps before the PUCT's 20 August open meeting. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Texas halts data center approvals, orders audit

26/08/04

News

26/08/04

Texas halts data center approvals, orders audit

Houston, 4 August (Argus) — Texas governor Greg Abbott (R) has halted approvals for new data center projects seeking to connect to the state's power grid until regulators complete an audit of the facilities, directing the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to expand its review of all projects advancing through the interconnection process. Under the order made Monday, regulators must collect information on power consumption, water use, on-site generation plans, tax incentives, ownership structures and potential impacts on local communities. Projects that fail to comply with the review must be denied connection to the Texas grid. The order comes as opposition to data center development spreads across Texas and pressure mounts on Abbott to take a tougher stance on the industry. Local governments across the state have pursued moratoriums and proposed new restrictions on data centers, while elected officials from both parties have called for greater scrutiny of facilities' effect on the grid, water supplies and rural communities. Against that backdrop, Abbott's directive expands an ongoing effort by ERCOT and the PUCT to vet large-load projects, broadening the review beyond grid planning to include resource consumption, incentives and local impacts. ERCOT is currently considering approximately 474GW of requests to connect to the Texas grid, more than five times the state's record peak electricity demand, Abbot said. Roughly 90pc of those requests are associated with data centers, according to the governor. "That unprecedented load growth could endanger the reliability and stability of the Texas electric grid," Abbott wrote in the directive. The review is necessary in part because some data centers failed to comply with a state survey measuring water and power usage, he said. He also cited concerns raised during legislative hearings and public meetings regarding the sector's impact on local communities and critical infrastructure. The Data Center Coalition, which represents major data center operators, said it supports the review if it helps distinguish legitimate projects from speculative proposals. "We are hopeful this directive from the Governor will help separate those who are responsible water and energy stewards from those who are not," said Dan Diorio, the group's executive vice president of state policy and government affairs. "With billions of dollars in investment and hundreds of thousands of jobs on the line, we urge the PUCT and ERCOT to move swiftly." Behind the hype Texas officials have been struggling to determine how much of the state's projected load growth is genuine and how much reflects speculative filings, duplicate applications and so-called "ghost load" requests. Regulators have warned that inflated interconnection queues make it difficult to forecast future demand and risk prompting unnecessary spending on generation and transmission infrastructure, potentially saddling consumers with the cost of investments that ultimately prove unnecessary. In an effort to streamline the process, the state launched Batch Zero , which was developed to help separate credible projects from speculative proposals by imposing stricter requirements on large-load customers. Under the framework, projects seeking 75MW or more that meet certain financial commitments are grouped into a single system-wide study intended to identify which projects are prepared to move forward and what transmission infrastructure may be required to serve them. In a notice to market participants Monday, ERCOT said it was pausing the process and would not issue the 7 August classifications scheduled under the study, delaying a key milestone that would have informed developers whether their projects had been selected for evaluation in the first batch. "ERCOT is reviewing governor Abbott's letter concerning data centers and will work with the Public Utility Commission of Texas to implement the governor's directive, including postponement of the Batch Zero transmission planning study," the grid operator said. ERCOT said it would consult with the commission on next steps before the PUCT's 20 August open meeting. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Aramco profit up, export capacity unmoved: Update

26/08/04

News

26/08/04

Aramco profit up, export capacity unmoved: Update

Updates throughout London, 4 August (Argus) — State-controlled Saudi Aramco posted robust second quarter results today, as higher oil prices offset most of the impact of output losses resulting from the US-Iran war. The firm said attempts by Yemen's Houthi rebels to disrupt shipping in the Red Sea have not affected its export capacity. Aramco reported an adjusted net income of $33.39bn in the second quarter, up by $8.2bn on the same period last year and down by $411mn on the first quarter, and exceeding the $31.59bn median of analysts' forecasts. Aramco's total hydrocarbons production fell to 9.463mn boe/d in the second quarter from 12.780mn b/d of oil equivalent (boe/d) in the second quarter of last year and 12.614mn boe/d in the first quarter as it was forced to shut in much of its oil output due to the effective closure of the strait of Hormuz. The US-Iran war and the effective closure of the strait of Hormuz has forced most Mideast Gulf countries to curtail their oil and gas output. For Aramco, liquids output posted the biggest decline, falling to 7.57mn b/d in April-June from around 10.48mn b/d a year earlier and 10.56mn b/d in the previous quarter. Gas production fell to 9.92bn ft³/d in the second quarter of this year, from 11.85bn ft³/d a year earlier and 10.51 ft³/d in Jan-March 2026. Saudi Arabia exported most of its oil through the strait of Hormuz before the US-Iran war began. But it has been able to sustain a large part of its exports by diverting crude through its 7mn b/d East-West pipeline to the Red Sea terminal on Yanbu, which bypasses the key waterway. But recent attempts by the Houthis to blockade Saudi maritime trade have put these lifeline exports at risk. Saudi crude exports from Yanbu fell by 470,000 b/d on the month to 3.67mn b/d in July, Kpler data show, with more volumes heading north towards Egypt instead of south through the Bab el-Mandeb strait. Saudi Aramco chief executive Amin Nasser said today that the Bab el-Mandeb events had no impact on the firm's export capability. He said said Aramco continued to capitalise on all available routes from Yanbu, including the Bab el-Mandeb, Egypt's Suez Canal and the 2.5mn b/d Sumed pipeline which facilitates exports from the Egypt's Ain Sukhna port into the Mediterranean. Aramco also confirmed that some of its facilities were targeted in attacks in the second quarter and more recently in July . But while Nasser said these caused some disruptions, the impact was not material to the company's finances or operations. Production capacity intact Naser said that Aramco would be able to bring crude production back to pre-war levels within days and up to its 12mn b/d maximum sustainable production capacity within three weeks. Saudi Arabia produced 10.88mn b/d of crude in Feburary, the last normal month of production before the US-Iran war, according to Argus estimates. He also said that any damage resulting from the conflict would be absorbed by its existing capital expenditure plan for the year of $50bn-55bn. "The current conflicts did not impact whatsoever our activity with regard to our long-term plans," Nasser said. Aramco said it continued to advance projects to maintain its 12mn b/d crude production capacity in the second quarter. This included the 600,000 b/d Zuluf project, which is expected online in 2026, and the 50,000 b/d second phase of the Dammam project, expected in 2027. Higher oil prices helped cushion some of the blow from the company's inability to freely export oil from inside the Mideast Gulf. Aramco sold its crude at an average of $108.1/bl in the second quarter, up from $76.9/bl in the first quarter and $66.7/bl in the same period in 2025. Revenues rose to $139.15bn, from $124.60bn in the first quarter and from $108.6bn a year earlier. Aramco's board kept its base dividend relatively unchanged at $21.9bn in the second quarter, which will be paid in the third quarter. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Australia's AVL partners with Alcoa on vanadium Bess

26/08/04

News

26/08/04

Australia's AVL partners with Alcoa on vanadium Bess

Sydney, 4 August (Argus) — Developer Australian Vanadium (AVL) and its fully-owned subsidiary VSUN Energy have signed a non-binding memorandum of understanding (MoU) to conduct a scoping study for a vanadium battery energy storage system (VBess) at aluminium producer Alcoa's alumina refining operations in Western Australia (WA). The study will assess the financial and technical merits of a 400-640MWh vanadium Bess for increasing Alcoa's renewable energy use and reducing its electricity costs during peak demand periods, AVL said on 4 August. The study will also examine "electrolyte supply considerations," which may include sourcing from AVL's 33 MWh/yr vanadium electrolyte plant in Perth, WA. AVL is one of four vanadium developers in WA and is currently conducting a feasibility study for its 11,200 t/yr vanadium pentoxide mine , located 50km south of Meekatharra in WA. The company partnered with Japanese manufacturer Sumitomo Electric to apply for the WA government's A$150mn ($105mn) tender to construct a 500MWh VBess in Kalgoorlie and submitted its stage-two expression of interest on 27 July. Alcoa expands aluminium operations Alcoa announced in June its $4.1bn acquisition of Australian miner South32's bauxite, alumina and aluminium assets across Australia, South Africa and Brazil. The deal is expected to close in the first half of 2027. This includes the 4.4mn t/yr Worsley alumina refinery , which will be added to Alcoa's existing WA alumina portfolio, including the 4.2mn t/yr Pinjarra refinery and the 2.85mn t/yr Wagerup refinery. Alcoa currently operates its WA alumina refineries using natural gas. The company extended a gas supply deal with Woodside for a further 31.1 petajoules (PJ) (830mn m³) over three years from 2027-2030 in June. Alcoa also has a 10-year gas supply deal with US oil firm Chevron for 130PJ starting from 2028. The Australian government will offer A$2bn in low-emissions aluminium production credits from 2028-29 to help smelters transition to renewable energy sources by 2035. South32's Worsley refinery emitted 3.18mn t/yr of scope 1 CO2 equivalent (CO2e) in 2024-25, making it the third largest non-LNG emitter in Australia, according to Australia's Clean Energy Regulator. Meanwhile, Wagerup and Pinjarra emitted a collective 2.58mn t/yr of scope 1 CO2e in 2024-25. By Daniel Gage-Brown Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Argus Brazil Motor Fuels Forward Curves

A daily forward curves service providing 24-month price visibility across Brazil’s biofuels, gasoline, diesel and feedstock markets to support hedging, procurement and strategic planning.

Argus Hydrogen Analytics

A quarterly analytics service delivering global clean hydrogen demand, supply and production cost forecasts to 2040, covering sectors and regions worldwide.

Argus Steelmaking Raw Materials Outlook

Monthly 24-month forecasts for crude steel, iron ore and metallurgical coal, with data-driven insights for smarter sourcing and strategy.

Argus Renewable Gas and Power

Electricity and gas energy attribute certificate prices, news, analysis and market data, bringing transparency to voluntary and compliance energy transition markets globally.

Argus Carbon

Carbon price benchmarks, policy and project news, and deep analysis, on a daily basis.

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