Business
Reliance to fund oil refinery in US; Donald Trump calls it ‘historic $300 billion deal’ – The Times of India
MUMBAI: Reliance Industries (RIL) will bankroll the first new oil refinery project in the US in 50 years, marking one of its biggest overseas bets and a return to the American energy market after four years.America First Refining (AFR), the startup developing the refinery at the Brownsville port in Texas, said it received a “nine-figure investment from a global supermajor at a 10-figure valuation” in Feb but did not name the investor. “For the first time in half a century, the US will build a new refinery designed specifically for American shale oil,” said AFR chairman & founder John Calce.US President Donald Trump, announcing the refinery project on his social media platform Truth Social, named RIL as the investor and called the investment by India’s largest privately held energy company “tremendous”.This announcement comes after RIL exited the upstream oil and shale gas business in the US in 2021.Construction of the 168,000-barrels-per-day shale oil refinery is expected to begin in the second quarter of this year.
‘Opportunity for Indian co to enter US refining ecosystem’AFR also said the “same global supermajor” had signed a 20-year agreement to purchase the refinery’s output.The project is also expected to help narrow India’s trade surplus with the US, an issue that has long been a point of concern for Trump. “This is a historic $300 billion deal, the biggest in US history,” read Trump’s post on Truth Social.According to AFR, the figure reflects the long-term offtake arrangement under which the global supermajor will purchase 1.2 billion barrels of shale oil valued at $125 billion and 50 billion gallons of refined petroleum products such as gasoline, diesel and jet fuel worth about $175 billion. Combined, the transactions are expected to improve the US trade balance by $300 billion, it said.Analysts noted that the actual equity investment in the refinery itself has been described as a “nine-figure” sum, implying several hundred million dollars, while the project valuation is in the “ten-figure” range, indicating that the capital commitment is likely to remain below $1 billion.The Texas refinery will mark RIL’s second greenfield investment outside India. In 2021, the company announced a partnership with Abu Dhabi National Oil Company (ADNOC) to build a $2 billion petrochemicals plant in the UAE.Industry experts say the project could deepen economic cooperation between India and the US. M S Banani, joint managing director of Axiom Gas Engineering, a fuel station developer, said Texas is one of the world’s most important energy hubs, hosting major companies such as ExxonMobil, Chevron, Shell and BP.“Establishing a refinery there provides direct access to crude supply and one of the largest fuel markets globally,” Banani said. “RIL has extensive experience in processing heavy and sour crude at its Jamnagar refinery complex, which gives it a strong technical advantage in refining diverse crude grades, including those available from regions such as Venezuela.”From a business perspective, the investment represents an opportunity for an Indian company to enter the American refining ecosystem and potentially expand into fuel distribution and retail in the future, Banani added.“It reflects both the growing global presence of Indian industry and the strengthening strategic partnership between India and the US.”The development coincides with volatility in global oil prices driven by the intensifying conflict in West Asia. However, the announcement had little impact on RIL’s shares. At close of trading, the stock was down 1.3% at Rs 1,391 on the BSE. RIL did not comment on the announcement.
Oil prices jumped on Tuesday as Donald Trump weighed Iran’s latest proposal to end the war.
The US president is unhappy with the latest Iranian proposal, a US official said on Monday. Iranian sources disclosed that Tehran’s proposal avoided addressing its nuclear programme until hostilities cease and Gulf shipping disputes are resolved.
Trump’s displeasure with the Iranian offer leaves the conflict deadlocked, with Iran shutting shipping flows through the Strait of Hormuz, which typically carries supply equal to about 20 per cent of global oil and gas consumption, and the US keeping in place its blockade of Iranian ports.
Brent crude rose to $108.13 per barrel, hovering near a three-week high, while US West Texas Intermediate went up to $96.48.
Both benchmarks are well above pre-war levels. Brent was trading at $72 before the US-Israeli war on Iran began on 28 February.
Asian stocks were broadly subdued at the opening. While MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.12 per cent, hovering near the record high it touched on Monday, Nikkei fell 0.5 per cent.
The S&P 500 eked out modest gains on Monday and was on course for a nearly 10 per cent gain for April. US stock futures were 0.1 per cent higher in Asian hours.
Indian shares are set to open lower on Tuesday, with GIFT Nifty futures pointing to the benchmark Nifty 50 opening below Monday’s close of 24,092.70. Both Nifty and Sensex snapped a three-session losing run on Monday, led by a rebound in technology stocks, but the broader momentum remained constrained by unresolved tensions around the Strait of Hormuz.
Elevated oil prices are a particular headwind for India, the world’s third-largest crude importer, heightening inflation risks, pressuring economic growth and widening the country’s import bill.
Foreign portfolio investors offloaded domestic stocks worth Rs 11.5bn ($122m) on Monday, extending their selling streak to a sixth straight session.
Vessel crossings showed signs of recovery over the weekend, according to the maritime intelligence firm Windward, but analysts warned increased movement was yet to translate into a surge in oil and gas flows.
Iran reportedly offered to end its blockade of the waterway without addressing its nuclear programme, passing the proposal to Washington through Pakistani mediators. But Mr Trump has made ending Iran’s atomic programme a condition for any deal.
Central banks are also in focus this week, with the Bank of Japan, the US Federal Reserve, the Bank of England, and the European Central Bank all due to announce policy decisions. All are expected to hold rates steady, but markets will be watching closely for signals about how policymakers plan to respond to the inflationary pressure from the war.
“The BOJ is likely to stay highly sensitive to market volatility,” Fred Neumann, chief Asia economist at HSBC, told Reuters. “Our base case remains one single 25 basis point hike this year in July, but a June rate rise becomes more likely if the Strait of Hormuz is still effectively closed after mid-May.”
Oil prices extended their gains on Tuesday as efforts to end the US-Iran war appear stalled, with the crucial Strait of Hormuz waterway still mainly shut, keeping energy supplies from the key Middle East producing region out of the reach of global buyers.
US President Donald Trump is unhappy with the latest Iranian proposal aimed at ending the war, a US official said on Monday.
Iranian sources disclosed on Monday that Tehran’s proposal avoided addressing its nuclear program until hostilities cease and Gulf shipping disputes are resolved.
Trump’s displeasure with the Iranian offer leaves the conflict deadlocked, with Iran shutting shipping flows through the Strait of Hormuz, which typically carries supply equal to about 20% of global oil and gas consumption, and the US keeping in place its blockade of Iranian ports.
Brent crude futures for June climbed 45 cents, or 0.4%, to $108.68 a barrel, after gaining 2.8% in the previous session to its highest close since April 7. The contract is up for a seventh day.
US West Texas Intermediate (WTI) crude for June rose 58 cents, or 0.6%, to $96.96, after gaining 2.1% in the previous session.
An earlier round of negotiations between the US and Iran collapsed last week following failed face-to-face talks.
“For oil traders, it’s not the rhetoric that matters any more, but the actual physical flow of crude oil through the Strait of Hormuz, and right now, that flow remains constrained,” Fawad Razaqzada, market analyst at City Index and FOREX.com, said in a note.
Razaqzada added that even if a resolution is reached, production outages and logistical challenges mean recovery could take months.
Ship-tracking data revealed significant disruptions in the region, with six Iranian oil tankers forced to turn back due to the US blockade.
However, a liquefied natural gas tanker managed by the United Arab Emirates’ Abu Dhabi National Oil Co did cross the Strait of Hormuz and appears to be near India, ship-tracking data showed on Monday.
Before the US-Israeli war on Iran, which began on February 28, between 125 and 140 vessels transited the strait daily.
The General Motors global headquarters at Hudson’s Detroit in Detroit, Michigan, US, on Monday, Jan. 12, 2026.
Jeff Kowalsky | Bloomberg | Getty Images
DETROIT – General Motors is set to report its first-quarter earnings before the bell Tuesday.
Here’s what Wall Street is expecting, based on a survey of analysts by LSEG:
- Earnings per share: $2.62 adjusted
- Revenue: $43.68 billion
Those results would mark a roughly 1% decline in revenue compared with a year earlier and a 5.8% decrease in adjusted earnings per share.
GM’s 2025 first-quarter results included $44.02 billion in revenue, net income attributable to stockholders of $2.78 billion, and adjusted earnings before interest and taxes of $3.49 billion.
Aside from earnings and any changes to the automaker’s 2026 guidance, investors will be monitoring effects from the Iran war, tariff impacts and additional charges related to the automaker’s pullback in all-electric vehicles.
After announcing $7.6 billion in EV write-downs last year, the automaker said it expected additional charges but at a lower level than in 2025.
GM’s 2026 earnings guidance is better than its expectations and results from last year. It includes net income attributable to stockholders of between $10.3 billion and $11.7 billion; adjusted earnings before interest and taxes of $13 billion to $15 billion; and EPS of between $11 and $13 for the year.
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