Key Takeaways
- Goldman Sachs anticipates the Federal Reserve will implement three rate cuts in the latter half of 2025, following an initial hold next week, driven by a slowing U.S. job market and stagnant consumer spending.
- The global Liquefied Natural Gas (LNG) market is poised for its largest supply surge since 2019, indicating significant expansion in energy production.
- TotalEnergies (TTE) is advancing its environmental commitments, planning to use carbon credits from 2030 to offset Scope 1 & 2 emissions and investing in U.S. forest management projects for carbon storage.
- Recent explosions in Iran reportedly preceded a peak in oil prices, highlighting the geopolitical sensitivity of energy markets.
Monetary Policy Outlook: Goldman Sachs on Fed Rate Cuts
Goldman Sachs has issued a revised forecast for the Federal Reserve's monetary policy, projecting that the central bank will initiate three interest rate cuts during the remaining 2025 meetings. The firm expects the Fed to maintain current rates at its upcoming meeting, but then pivot to easing policy in response to a slowing U.S. job market and stagnant consumer spending. Private-sector hiring is reportedly nearing "stall speed," a key factor pressuring policymakers to consider rate adjustments.
Global Energy Markets: LNG Surge and Geopolitical Tensions
The global Liquefied Natural Gas (LNG) market is set to experience its most significant supply surge since 2019. This substantial increase in LNG availability could have considerable implications for global energy prices and supply dynamics.
Meanwhile, oil prices recently peaked following reports of explosions in Iran, underscoring the volatile nature of energy markets in response to geopolitical events. Newsquawk noted that its team reported on the explosions a full 90 minutes before oil prices reached their peak, highlighting the immediate market reaction to such developments.
TotalEnergies' Green Initiatives and Carbon Offsetting
TotalEnergies SE (TTE) is reinforcing its commitment to environmental sustainability through new initiatives. The energy giant plans to utilize carbon credits from 2030 onwards to voluntarily offset a portion of its Scope 1 and Scope 2 emissions.
In a related move, TotalEnergies (TTE) has signed a deal with NativState to boost green investments in forest management projects across Arkansas, Louisiana, Mississippi, and Tennessee. These projects are specifically designed to protect and enhance carbon storage, aligning with the company's broader environmental objectives.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.