MARKET MOVEMENTS:
--Brent crude oil is up 0.3% to $118.284 a barrel
--European benchmark gas up 8.6% to EUR130.71 a megawatt
hour
--Gold futures are up 0.8% to $1,834.70 a troy ounce.
--Wheat futures are up 0.2% to $10.52 a bushel
--Three-month copper prices are down 0.5% to $9,166.50 a metric
ton
TOP STORY:
Turkey, UN Eye Sea Lane for Grain Through Ukraine's Mines
Turkish and United Nations diplomats are discussing a new
proposal for extracting grain currently blockaded in Ukrainian
ports, by escorting freighters through a safe passage among the
defensive mines that protect Black Sea ports amid the war with
Russia.
The proposal is the latest effort by Turkey and the U.N. to
transport Ukrainian grain out of the country. Russia's invasion has
left about 20 million metric tons of grain stranded in Ukraine,
heightening fears of a global food crisis after months in which the
war has already driven up the cost of food world-wide.
OTHER STORIES:
High US Fuel Exports Are Contributing to $5-a-Gallon Gas
A rapid rise in American fuel exports this year has helped push
gasoline prices to a record $5 a gallon and is pressuring U.S.
prices of natural gas, which hit the highest levels in over a
decade earlier this month.
In recent months, companies and commodities traders have shipped
more U.S. gasoline and diesel to Latin America and other foreign
markets, reaping higher prices than the fuel could fetch
domestically. They have also sent more liquefied natural gas, or
LNG, to Europe after Russia's invasion of Ukraine.
--
World's Biggest Miner Scraps Immediate Thermal-Coal Exit
The world's largest mining company abandoned the sale of its
last thermal coal mine, and said it would aim to close the
Australian pit in 2030.
Despite record-high coal prices, BHP Group Ltd. said it failed
to find a buyer for the Mt Arthur mine, which is one of Australia's
biggest coal operations but is technically complex and will have a
large cleanup bill when it closes.
--
Norway's Equinor Agrees With Centrica to Deliver Additional Gas
to UK
Norwegian energy group Equinor ASA said Thursday that it has
signed an agreement with British energy supplier Centrica PLC to
deliver additional gas supplies to the U.K. over the next three
winters.
The new supply agreement adds around 1 billion cubic meters a
year to Equinor's existing, bilateral contract with Centrica and
brings the total volume under the contract to more than 10 BCM a
year, it said. Centrica owns the U.K.'s largest power-and-gas
retailer, British Gas.
Equinor typically supplies 20-22 BCM of natural gas to the U.K.
every year, which covers more than 25% of the country's gas demand,
it said.
--
Petrotal Corp. Tenders 720,000 Barrels of Oil as Peru Pipeline
Temporarily Reopens
Petrotal Corp. said Thursday that around 720,000 barrels of oil
from the Bretana field have been tendered at the Bayovar Port in
Peru for the July lifting.
The London and Toronto-listed oil-and-gas company said it has
been able to deliver a material amount of oil to Bayovar in recent
weeks following a temporary reopening of section II of the northern
Peruvian pipeline.
MARKET TALKS:
Copper Supply Concerns May Emerge When Demand Rises
1054 GMT - Copper supply concerns may be brought to the fore
when demand for the base metal increases, a Kotak Securities
analyst says. The world's top producers, Chile and Peru, have
witnessed major supply disturbances this year, Kotak says, noting
that the countries combined represent about 40% of the global
supply. Chile's copper output fell 7.4% on year in the
January-April period, while about 20% of Peru's output is at risk
due to tensions at major mines, it says. Besides, major producers
including Glencore, Southern Copper and BHP have all cut their
production guidance for 2022, Kotak adds, expecting LME copper
prices to move within the $8,800 a ton to $10,200 a ton range in
the next three months. LME three-month copper drops 1.3% to
$9,114.00 a ton. (clarence.leong@wsj.com)
--
Oil Wavers as Investors Mull Fed Rate Hike
0837 GMT - Oil prices are little changed after U.S. oil
inventories rose by more than expected and as investors parse the
effect on the economy from the Federal Reserve's 0.75
percentage-point rate rise. Brent crude is up 0.2% at $118.45 a
barrel, while WTI adds 0.2% to $115.42 a barrel. Data from the
Department of Energy on Wednesday showed U.S. oil stocks rose by
almost 2 million barrels when analysts had been forecasting a
decline of 1.4 million barrels. Investors were still parsing the
impact of the Fed's rate increase. Risk assets rallied on Wall
Street on Wednesday after the rate hike, but risk sentiment has
turned sour Thursday with global stocks and U.S. stock futures
slumping. (william.horner@wsj.com)
--
Fed Rate Hike Stems Metals Losses
0737 GMT - Metals prices are stabilizing after the Federal
Reserve raised interest rates by 75 basis points late on Wednesday.
Gold futures in New York are up 0.5% to $1,829.20 a troy ounce
having closed 0.3% higher a day previous. Copper meanwhile is 0.1%
lower at $9,200 a metric ton, having risen 0.7% following the rate
increase. Sentiment for metals has remained weak given the
macroeconomic forecast of rising inflation rates and China's strict
Covid-19 policy hampering a restart in industrial activity. "It
does seem like they are trying to kick the can down the road when
it comes to a recession in what the Fed calls a 'soft landing',"
analysts at Marex say in a note. (yusuf.khan@wsj.com)
--
Zambia Sees Potential in Mopani Copper Mines
0718 GMT - Zambia state miner, ZCCM-IH hopes to turn around
operations at Mopani Copper mines to ensure sustainability and
continued development of the country's third-largest metal
producer, says Loisa Mbatha state miners corporate manager. Zambia
has sought the services of French investment bank Rothschild &
Co to assess strategic options for the 200,000 metric tons-a-year
copper miner, as Africa's No.2 copper and cobalt producer continues
efforts to boost production amid growing demand driven by a global
energy transition. "ZCCM-IH is committed to see that MCM delivers
to its optimal production levels in order to contribute to the
national production target of three million metric tons of copper
by 2030," Mbatha says.
(Nicholas.Bariyo@wsj.com;@Nicholasbariyo)
--
Steel Prices to Stay High on Chinese Infrastructure Demand,
Ukraine War
0328 GMT - Steel prices could trend higher as Chinese
infrastructure demand kicks in from 2H onward, analysts from Fitch
Solutions say in a note. "China seems to be looking at increasing
its financial support to the economy in 2022, amidst weakening
economic growth prospects driven by real estate sector weakness and
strict Covid-19-related lockdowns," they say. "Demand recovery in
China appears to be outpacing supply recovery as Covid-19
restrictions are eased." Dwindling exports from Ukraine due to the
Russian invasion as well as an unwillingness from some market
participants to import Russian-made steel are also supporting
prices of the construction material, the analysts add.
(yongchang.chin@wsj.com)
--
Aluminum Rises, Aided by Upbeat Chinese Industrial Output
Data
0215 GMT - Aluminum rises in the Asian morning session, helped
by upbeat Chinese industrial output data released Wednesday,
analysts say. National Bureau of Statistics data show that primary
aluminum production in China rose for a second consecutive month in
May to reach an all-time high, ING strategists say in a research
note. Aluminum production jumped 3.1% on year and 1.8% on month to
3.4 million metric tons, as power constraints eased and aluminum
smelters restarted operations together with the addition of new
production capacity, the strategists add. The three-month LME
aluminum contract is up 1.95% at $2,643.00 a ton.
(ronnie.harui@wsj.com)
Write to Yusuf Khan at yusuf.khan@wsj.com
(END) Dow Jones Newswires
June 16, 2022 08:41 ET (12:41 GMT)
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