Phillips 66 Proposes New Board Members Amid Elliott Battle — Commodities Roundup
MARKET MOVEMENTS:
TOP STORY:
Phillips 66 Proposes New Board Members Amid Elliott Battle
Phillips 66 is nominating two new directors to its board amid an intensifying proxy fight with activist Elliott Investment Management, confirming an earlier report by The Wall Street Journal.
The oil refiner disclosed four nominees, including the two new ones, in its proxy materials Wednesday morning. They will be up against Elliot's slate of picks once that is finalized.
Phillips 66 has a classified board, which means only a handful of seats are to be voted on at the company's annual meeting in May.
On Tuesday, Elliott had filed a lawsuit against Phillips 66 and its board to require four board seats be up for election, arguing the company hadn't given enough information about how many seats would be up for a vote and was violating its rights as a shareholder.
OTHER STORIES:
Repsol Sells Stake in Spanish Solar, Wind Portfolio to Schroders Capital
Repsol said it sold a 49% stake in its Spanish portfolio of eight wind farms and two solar plants to Schroders Capital.
The Spanish oil and gas company said the stake was bought by Schroders Greencoat, the specialist renewables manager of Schroders Capital.
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Hydro One Names Wolburgh Jenah Interim Chair
Hydro One appointed Susan Wolburgh Jenah as its interim chair of the board, filling in for Timothy Hodgson, who took an unpaid leave of absence to run in the federal election for the Liberal Party of Canada.
The Canadian utility, which is the largest electricity transmission and distribution provider in the province of Ontario with roughly 1.5 million customers, said Tuesday that Wolburgh Jenah joined its board at the beginning of 2020.
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U.S. Crude Oil Stockpiles Post Unexpected Decline
U.S. crude oil inventories fell unexpectedly last week despite an increase in imports and a small rise in refinery runs, according to data released Wednesday by the U.S. Energy Information Administration.
Commercial crude oil stockpiles excluding the Strategic Petroleum Reserve fell by 3.3 million barrels to 433.6 million barrels in the week ended March 21, and were about 5% below the five-year average for the time of year, the EIA said. Crude stocks were expected to have risen by 1 million barrels, according to a Wall Street Journal survey of analysts.
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Ithaca Energy Says Pretax Profit Rose, Delivers on Dividend Guidance
Ithaca Energy said pretax profit for 2024 increased and was supported by the combination with Eni's U.K. upstream oil and gas assets.
The London-listed energy company said profit before tax rose to $334.3 million from $302 million in 2023.
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Rivian to Spin Out Micromobility Business
Rivian Automotive is spinning out its micromobility business into a new startup called Also Inc.
The Irvine, Calif., electric-vehicle maker said Wednesday it plans to have a substantial minority shareholder in Also. The new company will focus on small, lightweight vehicles, as well as micromobility, which includes electric scooters and bicycles.
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Gold Road to Gold Fields: Ball Is in Your Court
The primary sticking point in talks about a potential acquisition of Australian miner Gold Road Resources by South Africa's Gold Fields was the price, according to the Australian company's chief executive.
Gold Road on Monday said it had rejected a roughly $2.1 billion takeover proposal this month from Gold Fields, its joint venture partner in the Gruyere gold mine in Western Australia's northeastern goldfields region. It called the offer highly opportunistic.
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On the Front Line of Trump's Trade War: Rio Tinto's New Smelter
A four-hour drive north of the U.S. border, the first big Western aluminum smelter to be built in more than a decade is coming to life on the front line of President Trump's global trade war.
Rio Tinto approved the project less than two years ago, saying it wanted to future-proof the Western world's largest hub of aluminum smelters in Québec's Saguenay-Lac-Saint-Jean region.
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Terrestrial Energy to Go Public Via SPAC
Terrestrial Energy has agreed to go public by merging with a blank check company.
The company said the deal with blank-check company HCM II Acquisition gives it a pre-money equity value of $925 million and would make it the first publicly traded developer of molten salt nuclear reactors.
MARKET TALKS:
Base Metal Prices Mixed; LME Copper Slumps as U.S. Tariffs Expected Within Weeks — Market Talk
1557 GMT - Base metal prices are mixed, with LME three-month copper down 1.7% at $9,944 a metric ton and LME three-month aluminum up 0.3% at $2,617.5 a ton. Copper on New York's Comex commodity exchange has risen to record highs on reports U.S. tariffs on copper imports could be coming within several weeks, well ahead of the 270-day deadline for the decision, ING analysts say in a note. Meanwhile, benchmark LME prices slumped on falling expectations for tightness in markets outside the U.S. later in the year, as traders scramble to get ahead of tariffs, ING writes. In 2024, around 50% of U.S. domestic consumption of copper was imported, and it will be challenging to replace imports with domestic production in the near term, ING says. ([email protected])
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Gold Futures Slip But Outlook Is Bullish on Tariff Concerns, Citi Says — Market Talk
1553 GMT - Gold futures slip, but hold near all-time highs. Futures are down 0.1% at $3,022.40 a troy ounce, hovering close to its all-time record of $3,065.20/oz, set Thursday. The effect of the upcoming April 2 reciprocal tariffs on global growth, and the outlook for U.S. growth underpin a bullish outlook on gold for the next three months, Citi analysts say in a note. The market appears to be significantly underpricing the effects of April 2's tariffs on growth and commodity prices, and investors should take insurance against adverse outcomes, they add. Citi raises its three-month estimate for gold to $3,200 an ounce, from $3,000/oz. ([email protected])
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Oil Gains on U.S. Inventory Draw, Supply Risks — Market Talk
1546 GMT - Oil prices extend gains in afternoon trade, buoyed by U.S. stockpile draws and U.S. pressure on Iran and Venezuela. Brent crude is up 1.2% to $73.27 a barrel, while WTI rises 1.4% to $69.98 a barrel. The EIA reported a 3.3-million-barrels fall in crude oil inventories last week, against expectations of a 1-million-barrel rise. Also distillate fuel and gasoline inventories fell, sending positive signals about demand trends in the world's top crude consumer. Prices are also supported by U.S. plans to impose tariffs on buyers of Venezuelan crude and sanctions targeting Iranian exports. However, "despite the short-term gains, the longer-term crude oil outlook remains murky, with more OPEC+ supplies to come online and uncertainty over demand remaining high due to Trump's tariffs and trade war," says Fawad Razaqzada, market analyst at Forex.com. ([email protected])
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U.S. Natural Gas Futures Edge Up As Expiration Nears — Market Talk
0953 ET - U.S. natural gas futures are higher with a pickup in LNG feedgas flows, while this week's expiration of the April contract is expected to generate volatility. The last two trading days have shown front-month losses in 10 of the past 12 months, says Eli Rubin of EBW Analytics in a note. "Volatility risks rise as trading volumes thin and the Nymex gas contract nears physical settlement." Henry Hub spot prices have been supportive amid a loose supply/demand balance in March, and "refill demand in April may also offer support," he says. "We retain a modest bearish bias ahead of final settlement tomorrow afternoon." The Nymex front month is up 0.7% at $3.866/mmBtu. ([email protected])
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Bank of America Moves Gold Price Target to $3,500/oz — Market Talk
0933 ET - Having crossed over the $3,000 per troy ounce mark this month, gold futures are now poised to rise to $3,500 per troy ounce within the next two years, says Bank of America in a note. The firm says that the new target can be hit if investment demand for gold increases by 10%. This demand can come from a number of places, including continued buying by central banks and continuing appetite for gold ETFs among retail investors. Uncertain geopolitics also appears to be supportive for gold futures, Bank of America adds. Early in trading, most-active gold futures are up 0.1% to just below $3,028 an ounce. ([email protected])
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Low-$70s Brent Could Allow U.S. to Increase Pressure on Iran — Market Talk
1334 GMT - Brent crude priced in the low $70s a barrel could create a favorable environment for the U.S. to impose stricter sanctions on Iran, according to Rystad Energy. "Current market conditions could give the U.S. a strategic edge," head of geopolitical analysis Jorge Leon says. Meanwhile, OPEC+'s planned output increase could help offset a potential loss of up to 1.5 million barrels per day of Iranian exports without destabilizing global prices. In January, Iran's crude exports surged to nearly 1.5 million barrels a day--the highest since May of last year--potentially suggesting Tehran's anticipation of heightened U.S. pressure, Leon says. ([email protected])
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U.S. Copper Tariffs Coming in Weeks Would Lessen Supply Crunch Risks — Market Talk 1300 GMT - LME three-month copper falls 1.85% to $9,924.50 a metric ton as the U.S. looks set to announce copper import tariffs in the coming weeks, Goldman Sachs analysts say in a note. This would greatly shorten the timeline for tariffs, which were expected between September and November, Goldman says. Greater certainty on the tariffs will push the U.S. commodities exchange Comex premium even higher over LME prices, with less time to ship the metal to the U.S., the analysts write. That said, pulling the tariffs and therefore U.S. demand forward, an expected supply crunch in the second half of the year is likely to be less pronounced. This reduces the upside potential for LME prices, Goldman says, backing its three- and six-month expectations of $9,700 a ton and $10,000 a ton, respectively. ([email protected])
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Oil Futures Gain on Reported U.S. Inventory Draw — Market Talk
0927 ET - Oil futures are higher after an industry report of a large drawdown in U.S. crude stocks for last week, while lingering concerns about the impact on supply of U.S. tariffs against buyers of Venezuelan crude add support. The API reported a 4.6 million barrel reduction in crude inventories, analysts note. "Draws at this time of the year are not seasonal and could cause some concern for U.S. stocks going into the summer," Scott Shelton of TP ICAP says in a note. The closely watched EIA data are due at 10:30 a.m. ET, with analysts in a Wall Street Journal survey predicting a crude stock build of 1 million barrels. WTI is up 1% at $69.70 and Brent is 1% at $73.76 a barrel. ([email protected])
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Precious Metals Drive Commodity Strength in 1Q — Market Talk
0854 ET - Commodities have had a big 2025 so far, propelled by the volatility of President Trump's tariff battles, says Ole Hansen of Saxo Bank in a note. Hansen says that strength in precious metals is what's underpinning a 7.9% year-to-date climb in the Bloomberg Commodity Index, with precious metals gaining 15.2% in that time. Gold, climbing to unprecedented levels of over $3,000 per troy ounce, and silver, finding highs not seen since 2012, are the chief gainers so far in 2025, with investors seeking safe havens for their money and central banks seeking to reduce their dependency on fiat currencies, says Hansen. Natural gas has had a big start to the year as well, jumping over 25%, while crude oil prices have struggled. Agricultural commodities have posted a gain of 2.2% year-to-date. ([email protected])
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Palm Oil Ends Higher Amid Positive Sentiment — Market Talk
1024 GMT - Palm oil ended higher amid positive sentiment. Investor sentiment was supported by expectations of a narrowed scope for U.S. tariffs, while the appeal of Malaysian stocks as a safer alternative is likely to provide further upside, says Kenanga Futures in a commentary. From a technical perspective, crude palm oil futures have been trading within a range of 4,200 to 4,700 ringgit a ton since mid-December 2024, Phillip Nova analyst Lim Tai An says in a commentary. Resistance is seen around the 4,330 ringgit level, while support is anticipated near 4,200 ringgit a ton, the analyst says. The Bursa Malaysia derivatives contract for June delivery was 14 ringgit higher at 4,259 ringgit a ton. ([email protected])
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European Gas Price Falls Amid Black Sea Cease-Fire Talks — Market Talk
1008 GMT - European natural-gas prices slide in early trade as talks over a cease-fire in the Black Sea weigh on sentiment, with the benchmark Dutch TTF down 1.3% to 41 euros a megawatt hour. Any progress toward a resolution to end the war in Ukraine raises hopes for the resumption of some Russian gas flows to Europe at a time when inventory levels are low, putting pressure on prices. According to industry group Gas Infrastructure Europe, EU storage is only 33.9% full. However, "buyers in Europe remain skeptical they will see any meaningful increase in supplies from Russia," analysts at ANZ Research say. "Moreover, there is growing concern that the EU's upcoming ban on the transhipment of Russian LNG at EU ports will disrupt winter deliveries from Russia's Yamal LNG terminal." ([email protected])
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EnBW's CEO Calls for German Energy Policy Certainty — Market Talk
0947 GMT - EnBW's Chief Executive Officer Georg Stamatelopoulos says transforming Germany's energy system would only work if is designed to match demand and implemented effectively. Stamatelopoulos says new gas-fired power plants are urgently needed and called on the new German administration to deliver clarity on the Power Plant Security Act soon. The act would ensure gas-power plants can be built in the country to replace coal power plants currently being phased out. The CEO calls for adjustments to Germany's energy policy and says that stable legal and regulatory frameworks will be crucial to delivering the certainty needed to invest in the system. Shares trade down 0.9% at 68.20 euros. ([email protected])
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OPEC+ Compensation Cuts Unlikely to Offset Output Increase — Market Talk
0937 GMT - Compensation cuts from OPEC+ members exceeding oil output quotas aren't expected to outweigh the group's planned production increase, according to BNP Paribas. While full compliance with the cuts could theoretically more than offset the returning flows starting in April, analysts at the bank remain cautious about adherence. "We note Kazakhstan's ramp-up in production from the Tengiz field and Iraq's stated intention to resume flows from Kurdistan through the Ceyhan pipeline." Meanwhile, OPEC+ could also decide to boost output further if compliance rates exceed expectations, they say. U.S. pressure on Iran and Venezuela is instead expected to limit the impact of OPEC+'s output increase, with Iranian exports expected to fall by 600,000 barrels a day and Venezuelan exports by 72,000 barrels a day in 2025. BNP forecasts Brent crude at an average of $73 a barrel this year. ([email protected])
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OPEC+ Offsets Risks From U.S. Pressure on Iran, Venezuela — Market Talk
0919 GMT - OPEC+'s spare capacity and readiness to increase oil output help mitigate some risks associated with U.S. efforts to curb Iranian and Venezuelan crude exports, according to Capital Economics' Kieran Tompkins. "These dual campaigns on Iran and Venezuela could amount to a sizeable reduction in global oil supply," the senior economist says, adding that the market could lose up to 1.5 million barrels a day. However, "the complexion of these upside risks to oil prices would look very different if OPEC+ weren't sitting on around 6 million bpd of spare capacity." Any upward pressure on oil prices due to U.S. actions against Iran and Venezuela is expected to fade quickly, Tompkins says, with Brent crude still projected to average $70 a barrel this year. ([email protected])
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Gold Futures Hold Near Record Highs on ETF Inflows, Safe-Haven Demand — Market Talk
0900 GMT - Gold futures rise, holding ground near record highs. Futures are up 0.1% at $3,029.40 a troy ounce, near Thursday's record of $3,065.20/oz. The precious metal is up nearly 14% in the year to date as trade and economic uncertainty bolster safe-haven demand, driven by President Trump's unpredicatable trade policy, ING analysts say in a note. That said, since setting a fresh record gold has traded in a relatively narrow range. Over the first quarter of 2025, gold-backed ETFs have recorded 155 metric tons of net inflows so far, bringing holdings to their highest total since September 2023, ING says. There is room for more additions given the present total is still short of the peak holdings in 2020, ING adds. ([email protected])
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Oil Rises on Supply Concerns — Market Talk
0857 GMT - Oil prices edge higher in early trade, supported by market concerns over global supplies after the U.S. stepped up efforts to limit Iranian and Venezuelan crude sales. Brent and WTI both rise 0.5% to $72.74 and $69.36 a barrel, respectively. Futures are also boosted by bullish U.S. stockpiles figures from the American Petroleum Institute, which point to inventory draws across the board last week. Meanwhile, traders are keeping a close eye on U.S.-Russia negotiations, with Moscow saying it would comply with a Black Sea cease-fire upon the lifting of some banking sanctions. However, the impact of any agreement on the physical oil market is expected to be relatively minor, analysts say, given that Russia diverted oil flows to other markets following Western sanctions. ([email protected])
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China's Copper Demand Strength Unlikely to Last — Market Talk
0349 GMT - The copper market may remain well supplied with the strength of Chinese demand for the metal unlikely to last, Julius Baer says in a note, reiterating its neutral outlook. It sees the metal's fundamental backdrop as "rather soft," with slowing growth in the U.S. and prevailing softness in Europe pointing to sluggish demand. China's copper demand was robust last year due to the government's goal to complete unfinished property projects, its push for exports as well as front-loading activity ahead of U.S. tariffs, it says. Julius Bear doesn't see these factors as likely to last. Meanwhile, there has been an acceleration of output growth, which points to an overall well-supplied copper market, it adds. The three-month LME copper contract is down 1.3% at $9,984 a ton. ([email protected])
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