Norway's Castberg oilfield remains temporarily halted, Equinor says
OSLO, May 12 (Reuters) - Output from Norway's Johan Castberg oilfield in the Arctic Barents Sea remains temporarily halted while repairs are being made following an outage, operator Equinor (EQNR.OL), opens new tab said on Monday.
Production from the field's floating production, storage and offloading (FPSO) vessel was shut at the weekend due to a small oil leak from a heat exchanger. There was no discharge of oil into the sea, the company said.
The Johan Castberg field pumped its first oil in late March and has a capacity to produce up to 220,000 barrels per day.
"We expect to reach plateau production during the second quarter, but are in a start-up phase with various tests and operations that could affect production along the way," Equinor said in an emailed statement.
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Reuters
11 hours ago
- Reuters
Morning Bid: Relief at two-week Middle East window
LONDON, June 20 (Reuters) - What matters in U.S. and global markets today I'm excited to announce that I'm now part of Reuters Open Interest (ROI), opens new tab, an essential new source for data-driven, expert commentary on market and economic trends. You can find ROI on the Reuters website, opens new tab, and you can follow us on LinkedIn, opens new tab and X., opens new tab Last month's China-U.S. trade showdown turned world markets' focus to Geneva, and that's where attention is yet again, only this time for European talks with Iran, as President Donald Trump has delayed a decision on direct U.S. involvement in the Israel-Iran war to allow a two-week window for negotiations. It's Friday, so I'll provide a quick overview of what's happening in global markets and then offer you some weekend reading suggestions away from the headlines. Today's Market Minute * Iran said on Friday it would not discuss the future of its nuclear programme while under attack by Israel, as Europe sought to draw Tehran back into negotiations and the United States considers whether to get involved in the conflict. * Investor unease about an increasingly uncertain environment is rising, as Norway's shock rate cut on Thursday highlights how U.S. tariffs, Middle East conflict and a shaky dollar make global monetary policy and inflation even harder to predict. * The Federal Reserve took a slightly hawkish turn on Wednesday, indicating it is worried more about rising inflation than slowing growth. But Chair Jerome Powell suggested this outlook should be taken with a large grain of salt, writes ROI markets columnist Jamie McGeever. * The Israel-Iran conflict has boosted global diesel prices, with gains outstripping the jump in crude prices, highlighting the vulnerability of diesel-heavy European consumers even as the region's refiners get a windfall. Read the latest from ROI energy columnist Ron Bousso. * UK finance minister Rachel Reeves insists higher economic growth is her top priority, but the government's current plan to address the country's chronically low investment is unlikely to be ambitious enough. What may be needed is a structural rethink of the finance ministry itself, argues Mike Peacock, the former head of communications at the Bank of England. Relief at two-week Middle East window Even though U.S. markets were closed for the Juneteenth holiday on Thursday, Wall St futures fell sharply during the day as tensions over the Israel-Iran war boiled. But those losses were mostly reversed before the market re-opened on Friday after Trump gave Tehran a fortnight to come up with a compromise before he decides whether to add U.S. firepower to Israel's air attacks on Iranian nuclear installations. Drone and missile attacks between the two warring sides continue, however. As is always the case with Middle East conflicts, the price of oil is the lodestar. Iran is OPEC's third-largest producer. U.S. crude came within a whisker of five-month highs on Thursday before falling back today to just over $75 per barrel. While a major concern, the rise in energy prices is still shy of a "shock", with crude prices down 7% year-on-year despite the tense situation. Foreign ministers from Britain, France and Germany along with the European Union's foreign policy chief were due to meet their Iranian counterpart Abbas Araqchi in Geneva on Friday to try to de-escalate the conflict. If Trump goes to the wire with his decision about direct U.S. involvement in the war, this will coincide with the expiration of his 90-day pause on "reciprocal" tariff hikes across the world, further fogging up the windscreen for world markets. Treasury yields were steady going into Friday's open, as investors juggled the energy picture and this week's relatively hawkish Federal Reserve meeting. The dollar fell back (.DXY), opens new tab from Thursday's highs. While the median forecast from Fed policymakers is still two interest rate cuts over the rest of the year, inflation forecasts were nudged higher and 7 of the 19 central bankers now expect no further easing in 2025. But confident forecasting is next to impossible now for the major central banks as they try to balance edgy oil prices, uncertain tariff hikes and multiple geopolitical risks. The Bank of England and Bank of Japan also left their key policy rates unchanged this week, largely for those reasons. Two rate cuts did emerge this week, however. Swiss interest rates returned to zero as expected as the Swiss National Bank battles the deflationary effects of currency strength , largely due to the franc's "safe haven" appeal. Norway surprised with a quarter point cut as well, taking the heat out of an oil-driven crown that had hit two-year highs this week. Stock markets (.STOXX), opens new tab, (.HSI), opens new tab around the world rallied on Friday as the oil price fell back, with Japan's Nikkei (.N225), opens new tab bucking that trend and ending slightly in the red again. A relatively thin trading session is expected on Wall Street later following the holiday on Thursday, though unfolding events in the Middle East will continue to create considerable trepidation before the close. The Philadelphia Fed's June business survey tops the data diary. Next week's events are led by Fed boss Jerome Powell's semi-annual congressional testimony on Tuesday and Wednesday and the release of the Fed's favored inflation gauge - the personal consumption expenditures measure - on Friday. A NATO summit in The Hague on Wednesday adds to the geopolitical focus. Elsewhere, sterling was firmer in the wake of the BOE decision, even with a surprisingly poor UK retail sales readout for May. There was some marginally better news from UK public borrowing numbers. While slightly above forecasts for May, the government has borrowed 37.7 billion pounds over the first two months of the 2025/26 fiscal year, less than the 40.7 billion pounds the Office for Budget Responsibility had predicted. In China, foreign direct investment from January to May fell 13.2% from the same period last year, more than had been forecast. And the European Union said it will bar Chinese companies from participating in EU public tenders for medical devices worth 60 billion euros or more ($68.9 billion) per year after concluding that EU companies are not given fair access in China. Weekend reading suggestions * MONETIZING DEBT: With no end in sight for outsize U.S. deficits and debt accumulation, the Fed "will almost certainly" be forced to monetize enough federal debt to prevent a default at some point, opens new tab, according to former Bank of England policymaker Willem Buiter and Professor Anne Sibert. Higher inflation and interest rates "are all but assured", they wrote in a column on Project Syndicate. "The Fed will have no choice but to engage in sovereign debt purchases that it knows to be incompatible with its monetary-policy objectives," they concluded. "The inflation surge could be no more than three years away." * EMOTIONAL FED?: Central bank communication is one of the most closely watched signals by markets, but it is not just what is said, but how it is said,, opens new tab argue economists Dimitris Anastasiou, Apostolos Katsafados, Christos Tzomakas and Steven Ongena in a paper on CEPR's VoxEU site. "Even subtle emotional cues can shift expectations and pricing behaviour in financial markets," they wrote. "Portfolio managers, particularly in the banking sector, may need to recalibrate models to include emotional tone as a market-moving variable." * US FIRMS MUSCLE IN: U.S. defense giants, backed by a Congressional delegation, used this week's Paris Airshow to showcase their cutting-edge technology and court European partners as they seek to tap into the rising regional military spending. Reuters' Joe Brock, Giulia Segreti, Paul Sandle and Tim Hepher show how despite the pledges by many European nations to boost military self-sufficiency, the continent remains heavily reliant on U.S. defense firms such as Lockheed Martin, Raytheon, Boeing, Anduril, Palantir and Elon Musk's SpaceX. * G6-PLUS?: President Trump's early departure from this week's G7 summit in Canada left the group without an overarching agreed communique and raised questions about the future shape of the group, opens new tab. Writing on the Chatham House site, the RIIA's economy and finance director Creon Butler outlines different formats that could be considered, including "G6-plus" without the full attendance of the United States or "G7-plus" with invited guests and limited issue-specific statements. * REFINING OKLAHOMA: Nestled beneath Oklahoma's Wichita Mountains sits a warehouse containing the only machine in the United States capable of refining nickel, a crucial energy transition metal now dominated by China. President Donald Trump has said he wants to boost U.S. production of minerals and, as Reuters' Ernest Scheyder shows, Oklahoma's push into minerals processing marks a turn in efforts to wean America off Chinese rivals. The state houses the country's only nickel refinery, its largest lithium refinery, two lithium-ion battery recycling plants, a rare earths magnet facility, and several electronic waste collection facilities. That's more than in any other state. Chart of the day During the parade of central bank meetings this week, Swiss interest rates returned to zero, and Norway's central bank surprised markets with a quarter point cut. Both decisions were currency-related and have been influenced by the swooning dollar and rising geopolitical tensions. The supercharged Swiss franc has drawn safe-haven demand and threatens Switzerland with deflation, as it flirts with 10-year highs against the green back. The Norwegian crown is highly linked to the oil price and hit its strongest level in two years this month as crude shot higher on Middle East worries. The major central banks all held the line, largely due to growing uncertainty over trade, oil prices and war. Today's events to watch * Philadelphia Federal Reserve's June business survey (8:30 a.m. EDT), May leading indicator (10:00 a.m. EDT); Canada May house prices, retail sales and producer prices (8:30 a.m. EDT) * European foreign ministers meet Iranian counterpart in Geneva * European Union finance ministers meet in Luxembourg, European Central Bank Vice President Luis de Guindos attends * U.S. corporate earnings: Accenture, Kroger, Carmax, Vertex Pharmaceuticals, Darden Restaurants Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias. Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here.
Business News Wales
12 hours ago
- Business News Wales
Developers Revealed for Celtic Sea Floating Wind Projects
Delivering floating offshore wind off the coast of Pembrokeshire has taken a significant step forward, as the Crown Estate has named Equinor and a joint venture between EDF Renewables UK and ESB as preferred bidders, following the conclusion of its Round 5 leasing process. Two developers have each secured rights to develop 1.5GW of floating offshore wind (FLOW) capacity in the Celtic Sea, with a third 1.5GW lease area yet to be awarded. As part of the Crown Estate's Round 5 leasing process, both successful bidders will pay an annual option fee of £350 per megawatt, amounting to £525,000 per year for their 1.5GW lease area. Unlike traditional fixed-bottom turbines, FLOW technology allows wind farms to be installed in deeper waters, opening up vast new areas of seabed for renewable energy generation. This latest announcement represents a major milestone for the emerging Floating Offshore Wind industry in the Celtic Sea, with the Crown Estate forecasting the potential for a further 4GW to 10GW to be made available by 2030. The news also follows the Crown Estate's recent commitment to invest £400 million in enhancing port and onshore infrastructure. With two project development areas being located in different parts of the Celtic Sea coastline, strategic investment in ports and the grid will now be critical, as potential supply chain investors await further information from the leasing process regarding the developers' supply chain plans. A major benefit of this announcement is that we now know the developers who will be progressing these projects, so communities and supply chains across South Wales and the South West can engage with the developers to co-create opportunities to maximise the benefit from these projects. What these stakeholders need from the developers now is an indication of project timelines and milestones to prepare and align themselves. This announcement is a significant vote of confidence in the UK's world-leading offshore energy market at a time of global volatility and uncertainty for the sector. Energy Secretary Ed Miliband said: 'Floating offshore wind will be transformative for economic growth in Wales and the South West, unlocking thousands of jobs in places like Port Talbot and Bristol, bolstering our energy security and delivering industrial renewal. 'The Celtic Sea has huge untapped potential to support our mission to become clean energy superpower, so we can get energy bills down for good through our Plan for Change.' Secretary of State for Wales, Jo Stevens, said: 'This is a hugely significant moment for the clean energy industry in Wales and one which will have a positive impact for generations to come. 'Floating offshore wind will help deliver the transition to clean energy, bring down bills for households and help secure the UK's home-grown energy supply. 'Increased economic growth and thousands of new well-paid jobs will come from this huge vote of confidence in Wales' energy industry and its workforce.' Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said: 'The establishment of floating offshore wind in the Celtic Sea marks the start of a new industrial opportunity for Wales. 'Over the last six months, we have been working through our Task and Finish Group to ensure Wales is in the best possible position to reap the rewards from the energy transition. 'This is an exciting and important step in that journey, and we look forward to working with the industry, The Crown Estate and counterparts in Westminster to write the next chapter in this story.' Matthieu Hue, CEO of EDF Renewables UK, said: 'I am absolutely delighted to announce that we, together with our project partner ESB, have secured preferred Bidder status with The Crown Estate for an Agreement for Lease as part of the Round 5 Leasing Process. 'We look forward to further developing the Gwynt Glas offshore wind farm, helping the UK maintain a market leading position in floating wind and recognising the important role that floating wind can play in the UK's ambition towards reaching net zero.' Jim Dollard, Executive Director at ESB, said: 'ESB, in partnership with our colleagues in EDFR, is delighted to have been successful in The Crown Estate Round 5 seabed allocation in the Celtic Sea. The Celtic Sea is of strategic importance to ESB given its location adjacent to Ireland and the opportunities to develop a floating offshore project in what we believe to be an ideal area bodes well for our ambitions to develop a portfolio of floating offshore wind projects in Ireland and UK to contribute to the net zero plans for both countries as well as those of ESB.' Trine Borum Bojsen, Senior Vice President for Renewables Europe of Equinor, said: 'We are delighted to be given this opportunity in the Celtic Sea. The UK is a core strategic market for Equinor and a market where we have more than a decade's experience in offshore wind. The seabed lease offers the scalability and timing flexibility we seek and is a long-term option for Equinor's renewables portfolio. We believe that the deeper waters in the Celtic Sea have good future potential for floating wind which will play an important role in unlocking the UK's journey towards net zero.'
Reuters
12 hours ago
- Reuters
Norway plans temporary ban on power-intensive cryptocurrency mining
COPENHAGEN, June 20 (Reuters) - Norway aims to impose a temporary ban on the establishment of new data centres that mine cryptocurrency with the most power-intensive technology, in order to conserve electricity for other industries, the Nordic country's government said on Friday. "The Labour Party government has a clear intention to limit the mining of cryptocurrency in Norway as much as possible," Minister for Digitalization and Public Administration Karianne Tung said in a statement. "Cryptocurrency mining is very power-intensive and generates little in the way of jobs and income for the local community," she added. A temporary ban could be introduced during the autumn of 2025, the government said.
