Oil Slips Amid Abating Fears of Supply Disruptions
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Yahoo
4 minutes ago
- Yahoo
Oil jumps as Trump shortens Russia's deadline to end Ukraine war, US-EU trade deal spurs demand optimism
Oil prices jumped Monday as President Trump shortened a timeline for Russia to end the war with Ukraine, prompting concerns potential sanctions could hit supply. Meanwhile, an agreement between the US and EU on the framework of a trade deal spurred optimism over demand. West Texas Intermediate (CL=F) climbed 1.9% to trade above $66 per barrel, and Brent (BZ=F) crude, the international benchmark price, rose to nearly $69 per barrel. The trade deal between the European Union and the US announced on Sunday includes $750 billion in EU purchases of American oil and natural gas. The stocks of liquified natural gas producers like Cheniere Energy (LNG), NextDecade (NEXT), and Venture Global (VG) all rose Monday as well. The 15% tariff deal on US imports from the EU fueled investors optimism over an eventual agreement with China as Washington and Beijing launched renewed trade talks. Meanwhile on Monday, President Trump shortened a timeline on Russia to end the war with Ukraine, from 50 days to less than two weeks, spurring concerns of a supply shock ahead. The president has threatened 'secondary tariffs' on Russia and countries purchasing from Moscow. "If enforced, oil markets cannot ignore the impact of triple-digit tariffs on Russian oil, given the significant scale of Russian exports and limited OPEC spare capacity, potentially leading to a supply shock," JPMorgan's Natasha Kaneva and her team wrote in a note earlier this month. The EU recently approved tougher price caps on Russian crude exports expected to go into effect in early September as a way to curtail the country's revenue. JPMorgan analysts expect oil price volatility to increase heading into September, citing uncertainty around Russia. The analysts also noted increases in supply from the Organization of Petroleum Exporting Countries and its allies (OPEC+) will already have been absorbed into the market by the fall. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 minutes ago
- Yahoo
Mexico Launches $12 Billion Debt Offering to Support Pemex
(Bloomberg) -- Mexico kicked off a $12 billion debt offering that will raise money to support state-owned Petroleos Mexicanos, the world's most indebted oil major. Can This Bridge Ease the Troubled US-Canadian Relationship? Budapest's Most Historic Site Gets a Controversial Rebuild Trump Administration Sues NYC Over Sanctuary City Policy The offering, which is expected to price Monday, will consist of dollar-denominated debt maturing August 2030, according to a person familiar with the matter. The deal launched at about 170 basis points over Treasuries, down from initial price talk of 200 basis points, added the person, who requested anonymity because the information is private. The deal will be in the form of pre-capitalized securities, or P-Caps, a type of instrument used in asset-backed finance that will allow Mexico to borrow billions of dollars from debt investors to support Pemex while keeping the obligations off its books. Bloomberg News reported last week that Mexico was looking to raise as much as $10 billion with the transaction — part of a plan by President Claudia Sheinbaum's administration to shore up the struggling state oil producer, which has a debt load of almost $100 billion, according to the company's results released Monday. Pemex posted a net income of 59.52 billion pesos ($3.2 billion) for the second quarter, the first profit in more than a year. The company was boosted by currency moves as the peso straightened amid a rally in risk assets, and also benefited from a decrease in the cost of sales. P-Caps Mexico, through an entity named Eagle Funding LuxCo., will sell the so-called P-Caps and use the proceeds of the sale to buy a portfolio of US government debt including Treasuries, according to a filing last week. Pemex will then take that portfolio and use it as collateral for loans through the repurchase market, using the proceeds as it sees fit, according to an offering memorandum seen by Bloomberg. If Pemex isn't able to pay back the loans, the banks will seize the collateral and end up whole. In that scenario, the investors in P-Caps would lose their collateral, and end up with sovereign debt from Mexico, according to a presentation seen by Bloomberg. Fitch Ratings placed Pemex on Ratings Watch Positive on July 22, saying that if successful, the transaction will improve the Mexican government's track record of support for the company. The reassessment may result in a multiple notch upgrade for the driller into the BB category, Fitch said. --With assistance from Vinícius Andrade and Michael Gambale. (Updates with launch details in first and second paragraphs) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Confessions of an American Who Helped North Korea's Wild Remote Worker Scheme Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Los Angeles Times
6 minutes ago
- Los Angeles Times
California, other states sue over USDA demand for SNAP recipients' data
California and a coalition of other liberal-led states filed a federal lawsuit Monday challenging the U.S. Department of Agriculture's recent demand that they turn over the personal information of millions of people receiving federal food assistance through the Supplemental Nutrition Assistance Program. USDA Secretary Brooke L. Rollins informed states earlier this month that they would have to transmit the data to the USDA's Food and Nutrition Service to comply with an executive order by President Trump. That order demanded that Trump's agency appointees receive 'full and prompt access' to all data associated with federal programs, so that they might identify and eliminate 'waste, fraud, and abuse.' Last week, USDA officials informed state SNAP directors that the deadline for submitting the data is Wednesday and that failure to comply 'may trigger noncompliance procedures' — including the withholding of funds. In announcing the states' lawsuit Monday, California Atty. Gen. Rob Bonta said the 'unprecedented' demand 'violates all kinds of state and federal privacy laws' and 'further breaks the trust between the federal government and the people it serves.' Bonta's office noted that states have administered the equivalent of SNAP benefits — formerly known as food stamps — for 60 years. It said that California alone receives 'roughly $1 billion a year' to administer the program in the state and that 'any delay in that funding could be catastrophic for the state and its residents who rely on SNAP to put food on the table.' The USDA has demanded data for all current and former SNAP recipients since the start of 2020, including 'all household group members names, dates of birth, social security numbers, residential and mailing addresses,' as well as 'transactional records from each household' that show the dollar amounts they spent and where. It said it may also collect information about people's income. Meanwhile, a Privacy Impact Assessment published by the agency showed that it also is collecting data on people's education, employment, immigration status and citizenship. The USDA and other Trump administration officials have said the initiative will save taxpayers money by eliminating 'information silos' that allow inefficiencies and fraud to fester in federal programs. 'It is imperative that USDA eliminates bureaucratic duplication and inefficiency and enhances the government's ability not only to have point-in-time information but also to detect overpayments and fraud,' Rollins wrote in a July 9 letter to the states. The Trump administration, which is pursuing what Trump has called the biggest mass deportation of undocumented immigrants in the nation's history, has requested sensitive data from other federal programs and services to share it with immigration officials — including Medicaid and the IRS. That has raised alarm among Democrats, who have said that tying such services to immigration enforcement will put people's health at risk and decrease tax revenue. California sued the Trump administration earlier this month for sharing Medicaid data with Immigration and Customs Enforcement. On Monday, Bonta raised similar alarms about the administration's demand for SNAP data, questioning what it will do with the information and how families that rely on such assistance will react. His office said it appeared to be 'the next step' in the administration's anti-immigrant campaign. 'President Trump continues to weaponize private and sensitive personal information — not to root out fraud, but to create a culture of fear where people are unwilling to apply for essential services,' Bonta said. 'We're talking about kids not getting school lunch; fire victims not accessing emergency services; and other devastating, and deadly, consequences.' Bonta said the USDA demand for SNAP benefits data is illegal under established law, and that California 'will not comply' while it takes the administration to court. 'The President doesn't get to change the rules in the middle of the game, no matter how much he may want to,' Bonta said. 'While he may be comfortable breaking promises to the American people, California is not.' The new data collection does not follow established processes for the federal government to audit state data without collecting it wholesale. During a recently concluded public comment period, Bonta and other liberal attorneys general submitted a comment arguing that the data demand violates the Privacy Act. 'USDA should rethink this flawed and unlawful proposal and instead work with the States to improve program efficiency and integrity through the robust processes already in place,' they wrote. Last week, California and other states sued the Trump administration over new rules barring undocumented immigrants from accessing more than a dozen other federally funded benefit programs, including Head Start, short-term and emergency shelters, soup kitchens and food banks, healthcare services and adult education programs. The states did not include USDA in that lawsuit despite its issuing a similar notice, writing that 'many USDA programs are subject to an independent statutory requirement to provide certain benefits programs to everyone regardless of citizenship,' which the department's notice said would continue to apply. Bonta announced Monday's lawsuit along with New York Attorney General Letitia James. Joining them in the lawsuit were Kentucky Gov. Andy Beshear and the attorneys general of Arizona, Colorado, Connecticut, the District of Columbia, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, Washington and Wisconsin, as well as the state of Kentucky.
