--Brent crude oil edged up 0.2% to $85.62 a barrel.
--European benchmark gas rose 1.1% to EUR58 a megawatt hour.
--Gold futures were flat at $1,945.20 a troy ounce.
--LME copper fell 1.2% at $9,164.50 a metric ton.
--Wheat futures edged down 0.2% at $7.60 a bushel.
BP's CEO Plays Down Renewables Push
BP PLC Chief Executive Bernard Looney plans to dial back
elements of the oil giant's high-profile push into renewable
energy, he has said in recent discussions with people close to the
Mr. Looney has said he is disappointed in the returns from some
of the oil giant's renewable investments and plans to pursue a
narrower green-energy strategy, according to people familiar with
the discussions. He has told some of the people that BP needs to do
more to convince shareholders of its strategy to maximize profit in
areas where it has a competitive advantage, including its legacy
In some of the conversations, Mr. Looney has said he plans to
place less emphasis on so-called ESG goals--a catchall term for
environmental, social and governance--to help clarify that those
aren't distracting the company from its ability to deliver profits,
the people said.
OPEC+ Ministers Set to Stay the Course on Oil Production Amid
China Covid Woes
An OPEC+ panel will likely recommend keeping the group's current
oil-production policy unchanged Wednesday, delegates said, amid
uncertainties about demand in China and the impact of sanctions on
Russian crude supplies.
Maintaining the status quo will allow the Organization of the
Petroleum Exporting Countries and a group of producers led by
Russia--collectively known as OPEC+--to take more time to assess
consumption data from China, the world's biggest oil importer, and
determine how a resurgence of Covid-19 cases there and European
Union sanctions on Moscow have affected demand.
Delegates said that OPEC+ will remain conservative in their
approach until there are clearer signals that markets require
higher crude supplies.
Glencore 2022 Production Volumes in Line With Guidance
Glencore PLC said Wednesday that its 2022 production volumes
were in line with the guidance issued in October.
The FTSE 100-listed commodity mining and trading company said
that copper and zinc volumes reflected the base effect of asset
sales as well as geotechnical constraints and supply-chain
headwinds in Kazakhstan.
Glencore said its copper production fell 12% to 1.1 million
metric tons last year compared with guidance of 1.1 million metric
tons, plus or minus 20,000 tons.
Copper guidance for 2023 stands at 1.0 million metric tons, plus
or minus 30,000 tons.
Nickel Pricing Likely to Stay Volatile in 1H
1058 GMT - Nickel pricing is likely to remain volatile for the
first half of 2023 with the market still reeling from last year's
short squeeze and subsequent drop in trading volumes. "Increased
fragmentation of the nickel market, along with recurring attempts
to remedy this and a lack of transparency, suggest prices will
remain volatile," Bank of America Global Research says in a note. A
correction on the LME is likely later this year, but as
electric-vehicle demand for nickel grows, output will need to
increase, BofA says. "We think that may be difficult, so the nickel
market, both in terms of Class 1, refined and Class 2, non-refined
units, is set to flip back into deficit by 2026. This should
ultimately keep prices supported." (firstname.lastname@example.org)
Glencore's 2022 Production Disappoints, But Tailwinds Brighten
1010 GMT - Although Glencore's share price has performed
strongly over the past six to 12 months, its 2022 output figures
will have disappointed shareholders, eToro analyst Mark Crouch says
in a note. Results were in line with its October guidance but the
slide in production reflects a range of issues including asset
sales, production problems, supply-chain issues as well as
underwhelming hauls at some sites with 2023 production guidance
fairly conservative, Crouch says. "Looking forward, though, there
are some tailwinds that might provide a demand boost for base
metals, such as the lifting of Covid-19 restrictions in China and a
brighter-than-expected outlook for the global economy," Crouch
says. Shares are down 0.2% at 540.40 pence.
Glencore's 2022 Production Update Unlikely to Change Outlook
0833 GMT - Although Glencore's better production numbers will
likely drive some small consensus earnings increases into year end
there was little in the release to change outlook as there was a
lack of new guidance for 2023, RBC Capital Markets analyst Tyler
Broda says in a note. "We continue to see Glencore as providing the
best risk/reward on a 6 to 12 month view in the sector, however
near-term pressure on coal prices, driven by falling [Japan Korea
LNG] gas prices, are likely to weigh in the short term," Broda
says. RBC rates the stock outperform and has a 520 pence target
price. Shares are up 0.6% at 544.30 pence.
Metals Slip Ahead of Fed Rate Decision
0836 GMT - Metals are slipping ahead of Wednesday's Federal
Reserve decision on interest rates, with the market largely
expecting a 25 basis-point hike today. Three-month copper is down
0.9% to $9,196 a metric ton while gold is 0.3% lower at $1,938.90 a
troy ounce. The market is entering an pivotal spot for risk
markets, with the Fed able to set the tone for the months ahead,
says Stephen Innes, managing partner at SPI Asset Management. While
the market is widely expecting a 25bp hike, a less hawkish outcome
would be welcomed by investors, he adds. (email@example.com)
Oil Ticks Higher Ahead of Fed, OPEC+ Meetings
0834 GMT - Oil prices edge higher ahead of meetings of the
Federal Reserve and an OPEC+ panel. Brent crude gains 0.3% to
$85.73 a barrel. While both meetings have the potential to move the
oil market, the likely outcomes have been well flagged ahead of
Wednesday. The OPEC+ panel is largely expected to recommend keeping
output levels unchanged while the Fed is broadly seen raising
interest rates by half a percentage point. The OPEC+ meeting will
not consist of all the group members and so is unlikely to see a
big change in policy, ING says in a note. "The meeting could shed
some more light on how the group sees the outlook evolving in the
months ahead," the bank notes. (firstname.lastname@example.org)
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(END) Dow Jones Newswires
February 01, 2023 07:26 ET (12:26 GMT)
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