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Use of nitrogen fertilizers in agriculture: major fertilizer producer warns of a global threat

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use of nitrogen fertilizers in agriculture

Using nitrogen fertilizers in agriculture is relevant to the world today. Fertiglobe, the largest producer in the Middle East region, said there is now a serious threat to the global market. This news is brought to us by the Bloomberg News Agency. 

The company is confident that tensions will remain at the same level. Many manufacturers from Europe are beginning to cut production. The reason for this is the rising cost of gas. Gas is the main raw material for producing fertilizers. 

“Even today, when the cost of ammonia and urea is very high, individual producers manage to maintain the profitability of production. But many companies with small production volumes will close because high hydrocarbon prices make their operations unprofitable,” says Ahmed El-Hoshi, head of Fertiglobe.

The cost of gas is skyrocketing due to current events in Ukraine. Russia, in response to European sanctions, has decided to gradually reduce its hydrocarbon supplies. Gas is the main raw material for the production of nitrogen fertilizers. But at the same time, El-Hoshi is confident that fertilizers will still be in high demand. There are very few grain reserves left around the world, so grain producers will be forced to buy fertilizers at any price.

In late July, Vera Songwe, executive director of the UN Economic Commission for Africa, warned that problems with access to fertilizer could cause a global food crisis. Many countries in Africa and Latin America are in the growing season, and a lack of fertilizer will affect future harvests and the world’s food supply. She expects crops to fall by 10-17 percent.



Commodities

Brent oil prices could reach $150 per barrel, says JPMorgan

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Brent oil prices could reach $150 per barrel, says JPMorgan
© Reuters.

In a recent forecast, JPMorgan has predicted a potential surge in prices to $150 per barrel. This prediction was made on Monday, as the financial institution observed escalating oil rates that have been on a consistent upward trajectory.

The bank’s forecast reflects the ongoing trend in the global oil markets where prices have steadily increased. The price of Brent oil, a benchmark for international prices, has been rising consistently, indicating a robust demand and tightening supply.

This prediction by JPMorgan comes amid a global economic recovery from the pandemic, which has seen an uptick in energy consumption across various sectors. The consequent rise in demand for oil and other energy commodities is putting upward pressure on their prices.

JPMorgan’s forecast is one of several indicators pointing towards a bullish trend in the global oil market. However, it remains to be seen how this potential surge will impact the broader economy and whether it will sustain over the long term. For now, investors and market stakeholders will be closely watching these developments in the oil markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Commodities

Gold prices hold steady amid Federal Reserve’s interest rate warning and global economic concerns

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Gold prices hold steady amid Federal Reserve's interest rate warning and global economic concerns
© Reuters.

Gold prices remained mostly steady on Monday, despite the potential for a further drop due to warnings from the Federal Reserve about prolonged higher interest rates. The strength of the dollar and yield pressures have also contributed to the situation. Over recent weeks, gold has shown minimal fluctuation in its trading range.

The Federal Reserve recently signaled that interest rates could rise again this year and may decrease less than previously anticipated in 2023, possibly remaining above 5%. This has caused investors to favor the dollar as a safe haven, as global economic conditions appear to be worsening.

Inflation is resurging in major economies due to rising oil prices, which could potentially hamper growth this year. Amid these circumstances and growing concerns about a possible U.S. government shutdown, gold has found some support.

Meanwhile, on Monday, industrial metals saw little movement due to escalating worries about additional economic challenges in China. The London Metal Exchange (LME) and nickel finished last week on a lower note. These concerns were amplified after China Evergrande (HK:) Group, a struggling property developer, announced it could not issue new debt due to an ongoing government investigation into one of its units.

China’s property sector is facing a cash crunch that has persisted for three years and has received limited fiscal support from Beijing. This week, attention will be focused on Chinese purchasing managers’ index data, scheduled for release on Friday, for further insights into business activity.

Oil prices rose on Monday as investors shifted their attention back to tighter supply outlooks. This shift occurred after Moscow implemented a temporary ban on fuel exports while remaining wary of potential further rate hikes that could dampen demand.

contracts ended their three-week winning streak and fell last week following the Federal Reserve’s hawkish stance which unsettled global financial sectors and raised concerns about oil demand. Prices had surged over 10% in the preceding four weeks due to predictions of a significant crude supply deficit in the fourth quarter, following Saudi Arabia and Russia’s decision to extend additional supply cuts until the end of the year.

Last week, Moscow temporarily banned gasoline and diesel exports to most countries in an effort to stabilize its domestic market. More updates on stock market trends and other business, political, tech, sports, and auto news are expected to follow.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Oil prices steady as Russia eases fuel export ban

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Oil prices steady as Russia eases fuel export ban
© Reuters. FILE PHOTO: Pumpjacks are seen against the setting sun at the Daqing oil field in Heilongjiang province, China December 7, 2018. REUTERS/Stringer

By Paul Carsten

LONDON (Reuters) – Oil prices held steady on Monday after Russia relaxed its fuel ban, taking the edge off earlier gains on a tighter supply outlook and wariness over interest rates that could curb demand.

futures were up 17 cents, or 0.18%, at $93.44 a barrel by 1133 GMT after settling 3 cents lower on Friday.

U.S. West Texas Intermediate crude was up 7 cents, or 0.08%, at $90.10.

Russia approved some changes to its fuel export ban, lifting the restrictions for fuel used as bunkering for some vessels and diesel with high sulphur content, a government document showed on Monday.

The ban on all types of gasoline and high-quality diesel, announced last Thursday, remains in place.

“The market continues to digest Russia’s temporary ban on diesel and gasoline exports into an already tight market, offset with the Fed’s hawkish message that rates will stay higher for longer,” said IG Markets analyst Tony Sycamore.

Crude prices fell last week after a hawkish Federal Reserve rattled global financial markets and raised concerns over oil demand. That snapped a three-week rally of more than 10% after Saudi Arabia and Russia constrained supply by extending production cuts to the end of the year.

Last week, Moscow issued a temporary ban on gasoline and diesel exports to most countries to stabilise the domestic market, fanning concerns of low products supply as the Northern Hemisphere heads into winter.

In the United States, the number of operating oil rigs fell by eight to 507 last week – the lowest count since February 2022 – despite higher prices, a weekly report from Baker Hughes showed on Friday.

Compounding supply constraints, U.S. oil refiners are expected to have about 1.7 million barrels per day (bpd) of capacity offline for the week ending Sept. 29, decreasing available refining capacity by 324,000 bpd, research company IIR Energy said on Monday.

Offline capacity is expected to rise to 1.9 million bpd in the week ending Oct. 6, IIR added.

Expectations of better economic data this week from China, the world’s largest crude importer, lifted sentiment. However, analysts flagged that oil prices face technical resistance at the November 2022 highs reached hit last week.

China’s manufacturing sector is expected to expand in September, with the purchasing manufacturing index forecast to rise above 50 for the first time since March, Goldman Sachs analysts said.

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