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Daily Update — May 01, 2025

Measuring Municipal Bonds; Pakistan’s Oil Plan Amid US Tariffs; and Mining for the Energy Transition

Today is Thursday, May 1, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.

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Economy

Tracking Munis in Uncertain Markets

 

As uncertainties around tariffs, inflation and interest rates continue to make headlines, how are yield seekers viewing municipal bonds? S&P Dow Jones Indices’ head of global fixed income indices, Jennifer Schnabl, and Vanguard’s director of exchange-traded fund capital markets, David Sharp, discuss the key performance drivers of munis in challenging markets.

 

Learn more about the S&P Municipal Bond Index, a broad, market value-weighted index that seeks to measure the performance of the US municipal bond market.

Global Trade

Pakistan mulls buying US crude as bargaining tool to negotiate Trump tariffs

 

Pakistan is attempting to import crude oil from the US as part of its strategy to negotiate softer tariffs following President Donald Trump’s 90-day tariff pause. The tariffs, which stand at 29% for Pakistan, have prompted the country to explore diplomatic avenues to maintain a healthy bilateral trade relationship with Washington. Cnergyico, Pakistan's top refinery, expressed its interest in importing light sweet US crude grades because of their compatibility with the company’s existing feedstock configuration, which primarily processes light-end Saudi crude.

 

Cnergyico Vice Chairman Usama Qureshi underscored the logistical benefits of using larger tankers, such as Aframax and Suezmax, to lower freight costs per metric ton. Qureshi noted that incorporating light sweet US crude into the company’s feedstock mix would significantly boost the production of gasoline and middle distillate motor fuels, which are in short supply in Pakistan. 

Energy Transition & Sustainability

Listen: How mining giant balances energy transition, nature and sustainability priorities

 

Building out the infrastructure needed for the low-carbon energy transition will require a substantial increase in the production of critical minerals such as copper, nickel, zinc and lithium. These minerals are needed for various technologies, including electric vehicles, battery storage, clean hydrogen, geothermal, wind, solar and electricity networks. 

 

In this episode of the “All Things Sustainable” podcast, hear about how one of the biggest producers of critical minerals, Vale Base Metals, is approaching this increased demand and balancing it with sustainability issues including community engagement, biodiversity, waste management and physical climate risk.

In case you missed it

  • Economic and trade tensions will likely lower demand for oil in 2025, adding to the risk of oversupply. Despite diversification efforts, the economic growth of countries in the Gulf Cooperation Council remains highly correlated with oil prices.
  • Crude oil futures declined in midafternoon trading in Asia on April 29 as progress in Russia-Ukraine peace negotiations fueled expectations of a potential surge in supply.
  • Market turmoil surrounding President Trump's tariff plans significantly affected bank stock prices and increased economic uncertainty, hindering ongoing deal discussions, but several bank executives remain resolute and ready to pursue M&A opportunities.

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