Oil Extends Drop After Report Points To Jump In US Inventories

Summary:

Oil fell for a second day after an industry report indicated the biggest increase in US inventories in more than three months.

West Texas Intermediate held above $60, while Brent settled at more than $64 on Tuesday. US crude inventories rose 6.5 million barrels last week, according to a document from the American Petroleum Institute seen by Bloomberg. That would be the biggest jump since July 25 if confirmed by official data later Wednesday.

Oil declined Tuesday after a global equities rally hit a speed bump and the greenback climbed to the highest in more than five months, weighing on crude and other dollar-denominated commodities. WTI has fallen 16% this year as increased production from OPEC+ and non-member nations amplified concerns over a forming glut, although prices have rebounded somewhat after the US last month announced sanctions on Rosneft PJSC and Lukoil PJSC, Russia's two biggest producers.

Source: Bloomberg Europe

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Olivia Brooks

Political

Economic

US President Donald Trump said he met with representatives from Switzerland and announced additional trade talks, as the European nation seeks to reduce a tariff rate that ranks higher than any other developed nation.

"It was my Great Honor to just meet with high level Representatives of Switzerland," Trump said Tuesday in a social media post. "We discussed many subjects including, and most importantly, Trade and Trade Imbalance. The meeting was adjourned with the understanding that our Trade Representative, Jamieson Greer, will discuss the subjects further with Switzerland's Leaders."

Trump has imposed a 39% tariff on goods from Switzerland, threatening to drive up costs for chocolatiers including Lindt and watchmakers, including Swatch Group and Rolex SA. Pharmaceuticals accounted for almost half of Swiss exports to the US in 2024, according to data compiled by Bloomberg Economics.

The US earlier this year scrapped plans to impose tariffs on gold bars from Switzerland after the plan shocked global markets and threatened to disrupt supplies.

Switzerland has recently proposed moving some business from Swiss gold refiners to the US as part of a bid to broker a broader trade deal.

The presidential meeting comes as Helene Budliger Artieda, Switzerland's top trade diplomat, has made repeated trips to Washington in recent weeks as Bern attempts to negotiate a lower rate. The White House did not immediately respond to a request for comment on who Trump met with.

Swiss President Karin Keller-Sutter declined to give a timeline for negotiations when asked about the progress late last month.

"In the end the US president decides," she said. "So maybe it just needs some more patience."

Despite the tariff rate, indications are that demand for Swiss goods has, in some cases, withstood the impact of the tariffs. Foreign sales to the US excluding gold, adjusted for seasonal swings, were 43% higher in September than in August, the country's customs office said last month.

Still, Bern has cut its growth forecast for next year based on the expected impact of Trump's tariffs on the economy. Foreign sales of Swiss watches fell in September, driven by a 55% plunge in exports to the US.

Source: Bloomberg Europe

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Manuel

Stocks

Advanced Micro Devices (AMD) on Tuesday reported record quarterly results above analysts' projections as booming demand for AI helped boost sales of its data center chips.

AMD posted adjusted earnings per share of $1.20 on revenue that jumped 36% year-over-year to a record $9.25 billion in the third quarter, well above analysts' estimates compiled by Visible Alpha.

Sales in AMD's data center segment—by far its largest—rose 22% year-over-year to $4.3 billion, slightly above expectations. The results did not include any revenue from shipments of AMD's MI308 AI chip line to China, which AMD has said it would resume after ironing out a revenue-sharing agreement with the Trump administration.

CEO Lisa Su said the strong results mark "a clear step up in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth."

Why This Is Significant

AMD has faced growing expectations heading into Tuesday's print to impress investors with strong revenue growth that would justify its stock gains this year amid worries about an AI bubble. The chipmaker's solid showing for the third quarter could help it defend its recent momentum.

For the current quarter, AMD said it sees revenue between $9.3 billion and $9.9 billion, above the analyst consensus of $9.17 billion. That range doesn't include any revenue from AMD MI308 shipments to China either, AMD said.

Shares of AMD slipped about 1% in extended trading following the release, after dropping close to 4% in Tuesday's session amid broader declines as worries about an AI bubble weighed on tech stocks. The chipmaker's stock has more than doubled in value this year.

Source: Investopedia

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Manuel

Political

Economic

Canada could scrap a cap on oil and gas emissions if other measures like effective carbon markets, stronger regulations, carbon capture and storage technologies proved successful, the government said in a budget plan unveiled on Tuesday.

The climate plan, disclosed as part of Prime Minister Mark Carney's first budget, said under those conditions, the cap “would no longer be required as it would have marginal value.”

Reuters reported last month that, Canada was in talks with energy companies and the oil-producing province of Alberta about eliminating the emissions cap from the country’s oil and gas sector if the industry and province reduce their carbon footprint in other ways.

Canada’s emissions cap was not enforced through legislation and not scheduled to take effect until 2030, but has been condemned by Canadian oil and gas companies that say it would result in lower production.

Carney, who has been focused on trying to steer Canada's economy through trade wars with the U.S. and China, has been criticized by some members of his own party for backing away from the Liberals' focus on the environment.

Carney’s budget also included steps to speed up investments in clean energy by offering further tax credits, updating clean fuel regulations and plans to modernize Canada’s electrical grids, which officials said would require investments “nearly triple from current levels to meet anticipated future demand.”

It said the government would propose amendments to greenwashing legislation that had created investment uncertainty. Passed during former Prime Minister Justin Trudeau's government last year, the legislation had been criticized by oil companies.

Ahead of the budget's release, Keith Stewart, a senior energy strategist at Greenpeace, said Carney should be doing more for the environment given his previous experience as a UN special envoy on climate.

“When you’re the prime minister, you can make the rules and say - ‘You’re not allowed to do these things, like keep developing fossil fuels,” he said. “There are things that governments can do that bankers can’t - and I don’t think he’s entirely made that shift.”

The budget called the transition to low-carbon energy and clean technology “an economic necessity” and a “moral obligation.”

Source: Reuters

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Manuel

Political

The government shutdown now stands at 35 days and is tied as the longest in US history as economic pain points continue to mount.

This past weekend was the worst yet at airports, and Transportation Secretary Sean Duffy warned Tuesday that another week of shutdown could even force the administration to close some of the national airspace in what he said could prompt "mass chaos."

Meanwhile the Supplemental Nutrition Assistance Program (SNAP), which is received by roughly one in eight Americans, will pay partial food aid benefits, according to a Trump administration court filing on Monday.

Trump added some confusion around that issue Tuesday when he posted on social media that benefits would "be given only when the Radical Left Democrats open up government." White House press secretary Karoline Leavitt claimed later in the day he wasn't referring to these immediate benefits, saying "we're getting that partial payment out the door."

Either way, these growing economic ripples appear to be having an effect on lawmakers: Senate Majority Leader John Thune suggested to reporters Tuesday that bipartisan talks may have the Senate "close to an off-ramp."

This new momentum comes ahead of a Senate recess scheduled to start at the end of the week. The outlines of a possible deal are coming into focus, which could reopen the government — but perhaps only for a matter of weeks. Government Shutdown: Stoppage Tied for Longest Ever as Trump's Team Warns of 'Mass Chaos' at Airports_1

Government Shutdown: Stoppage Tied for Longest Ever as Trump's Team Warns of 'Mass Chaos' at Airports_1

Overall, flight interruptions have now impacted over 3 million passengers, an airline group says, and the delays continued over the weekend with new stoppages seen Monday in Southern California.

Saturday was also the beginning of an open enrollment period for healthcare programs run by Affordable Care Act exchanges. Premium increases there — with Democrats looking to extend enhanced government subsidies for those plans — are at the heart of the impasse as some premiums are set to double next year.

Republicans have said they will promise a healthcare vote on a specified date in the coming weeks in return for reopening the government now.

It remains to to be seen if that concession unlocks enough Democratic votes after the party has said for weeks that these two votes need to happen at the same time.

Source: Yahoo Finance

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Cryptocurrency

Bitcoin traded at $100,640.15 as of press time, down 5.6% in the past 24 hours, after briefly losing the $100,000 price threshold on Binance futures for the first time since June 23.

The sell-off wiped billions from the broader crypto market as traders confronted a three-month high in the dollar, equity weakness, and a four-day streak of spot ETF outflows totaling roughly $1.34 billion.

The dollar index rose to 100.215, up 0.3% over the past 24 hours, as markets reassessed the likelihood of near-term Federal Reserve rate cuts.

Equity markets retreated after major bank CEOs warned of a potential 10% to 15% correction in stock prices. This combination of a stronger greenback and risk-off sentiment in traditional markets typically compresses the risk premium in cryptocurrencies.

Bitcoin’s correlation to tech equities and its sensitivity to dollar strength placed it directly in the path of the macro shift.

US spot Bitcoin ETF flows turned decisively negative over the past four sessions, with cumulative outflows reaching approximately $1.34 billion, according to data from Farside Investors.

The most recent trading day saw roughly $186.5 million exit the products, with BlackRock’s IBIT accounting for the entirety of the outflows while competing ETFs registered zero net activity.

The sustained withdrawal pattern reflects institutional repositioning as traders weighed macro conditions against Bitcoin’s valuation near six-figure levels.

Leverage magnified the downturn across crypto derivatives markets. According to Coinglass data, $1.3 billion in futures positions were liquidated in the past 24 hours, with long positions accounting for about $1.1 billion of the total. That was the second consecutive day with over $1 billion in liquidations.

The forced unwinding of leveraged bets accelerated Bitcoin’s descent, creating cascading sell pressure that pushed the asset closer to the $100,000 support level.

Futures markets often amplify spot moves during periods of high volatility, and the scale of the washout ranks among the most significant liquidation events in recent weeks.

Altcoins follow Bitcoin lower

The broader crypto market mirrored Bitcoin’s losses, with major tokens posting single-digit percentage declines.

Ethereum traded at $3,328.12, down 8% in the past 24 hours, while BNB fell 7.7% to $917.20. Solana dropped 7% to $154.48, and XRP declined 5% to $2.18. Dogecoin slipped 6.3% to $0.1570, and Cardano lost 6.7% to trade at $0.5153.

The sell-off unfolded against a backdrop of renewed security concerns in the decentralized finance sector.

The Balancer V2 exploit, which drained between $110 million and $128 million across multiple chains, and Berachain’s subsequent emergency network halt and hard fork kept sentiment cautious across protocols and tokens.

While DeFi incidents typically contain their damage to specific ecosystems, the timing of the exploits added a soft headwind to crypto markets already contending with macro pressure and negative flows.

Bitcoin’s losing the $100,000 level arrives as the convergence of dollar strength, equity weakness, institutional outflows, and derivatives liquidations created a technical setup that overwhelmed near-term support.

Source: Cryptoslate

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Manuel

Commodity

Political

The Trump administration and private investors are partnering with two rare earth startups in a $1.4 billion deal to scale up the nation's access to materials and technology that is crucial for producing an array of high-tech goods and military equipment.

The investment in Vulcan Elements and ReElement Technologies is the latest stake taken by the U.S. in a handful of private companies — including another rare earths company and chipmaker Intel — since President Donald Trump began his second term in January. The White House has made it a priority to bolster the nation's supply chain in a market dominated by China.

Vulcan Elements manufactures rare earth magnets, while ReElement processes rare earth mineral ores and recycles old batteries and other products made with rare earths.

Rare earths are used in fighter jets, guided missiles, drones and nuclear submarines as well as smartphones and wind turbines.

The influx of cash will allow Vulcan and ReElement to ramp up their annual magnet production to 10,000 tonnes annually, the companies said.

“Our investment in Vulcan Elements will accelerate U.S. production of rare earth magnets for American manufacturers,” Secretary of Commerce Howard Lutnick said. “We are laser-focused on bringing critical mineral and rare earth manufacturing back home, ensuring America’s supply chain is strong, secure and perfectly reliable.”

The deal announced this week comes just days after Trump met with Chinese leader Xi Jinping and agreed to cut tariffs on China, which Beijing reciprocated by allowing the export of rare earth elements.

Before Xi and Trump met last week, China had imposed restrictions that would have required foreign companies to get special approval to export items that contain even small traces of rare earths elements sourced from China, even if those products were made elsewhere by foreign companies. However, it didn't eliminate restrictions that were imposed in the spring after Trump imposed his initial round of tariffs.

China accounts for nearly 70% of the world’s rare earths mining and controls roughly 90% of global rare earths processing.

The deal includes a $620 million loan from the Department of Defense, $50 million of federal incentives from the Department of Commerce and $550 million in private capital.

The Defense Department will receive warrants in both Vulcan and ReElement, with Commerce getting a $50 million equity stake in Vulcan.

In July, the Defense Department agreed to invest $400 million in shares of the Las Vegas-based MP Materials, which runs the only American rare earths mine. The unusual direct investment in the company made the government the largest shareholder in MP Materials.

A week later, MP Materials announced a new $500 million agreement with tech giant Apple to produce more of the powerful magnets used in iPhones as well as other high-tech products like electric vehicles.

U.S. Steel, Lithium Americas and Trilogy Metals are among the companies the U.S. government has taken equity stakes in under Trump.

Those investments have drawn skepticism from economists, former government officials and even members of the president’s own party.

While it’s not unprecedented for the government to offer financial support to business and industries, historically those investments usually came during major economic crises.