-- Brent crude oil is down 0.6% at $76.23 a barrel.
-- European benchmark gas is up 3.3% at EUR 41.31 a megawatt
-- Gold futures are up 1.6% at $1,981.50 a troy ounce.
-- LME three-month copper futures are down 0.8% at $8,855.50 a
-- Wheat futures are 1% higher at $6.70 a bushel.
Big Oil Eyes New Deals in North Africa Amid Rising Energy
After years of underinvestment in North Africa's energy
infrastructure, global oil-and-gas giants from Halliburton Co. and
Chevron Corp. to Eni SpA are ramping up their presence in the
region as demand from Europe grows.
Executives in the industry are betting it is worth drilling
again in some of the hardest places to do business in the world as
Europe increasingly turns to other sources for its energy needs
after shunning its main supplier, Russia, over the invasion of
Ukraine. In recent months, a string of European officials have
visited the region to help advance talks over potential supply
Halliburton and Honeywell International Inc. are hammering out
$1.4 billion worth of deals to develop an oil field and refinery
with National Oil Corporation in Libya, which has the largest known
oil reserves in Africa, according to the chairman of state-owned
firm, Farhat Bengdara. Italy's Eni is planning investments aimed at
replacing nearly half of the gas it was importing from Russia with
gas from Algeria.
Electric-Vehicle Growth Expands GM Cyber Chief's Concerns to
Electric vehicles are taking General Motors Co. 's cyber chief
into new territory.
Kevin Tierney, the auto maker's chief cybersecurity officer,
often finds himself monitoring risks across information-technology
systems, autonomous vehicles and manufacturing plants. Now, he's
adding power-grid security to his day-to-day work.
His added brief is mostly due to the sweeping shift away from
gas-powered cars. California, among several states, has mandated
zero-emission vehicles by 2035, and GM is significantly upgrading
its EV production capacity, including with a $650 million
investment in Lithium Americas Corp. as part of a plan to develop a
mine in Nevada and secure access to a mineral key to the batteries
used in EVs. The company plans to release several new electric
models this year, and aims to install thousands of charging
stations across the U.S. by 2025.
What Does 'Made in America' Mean? In Green Energy, Billions
Hinge on the Answer
Virginia-based power company AES Corp. says it is ready to push
the button on a solar-panel order of more than $1 billion if a
manufacturer will commit to building a factory in the U.S.
If that factory gets built, AES can buy its panels and apply for
federal subsidies recently made available to clean-energy
developers that use equipment made in the U.S.
There is one problem: The government hasn't decided what "made
in the U.S." means, and how strictly to define it.
"You can't sign on the dotted line until this is clarified,"
said Andrés Gluski, AES's chief executive. The company and two
other developers have said they would collectively buy as much as
$6 billion in panels from a manufacturer that sets up in the
Weaker Dollar Should Be a Tailwind for Commodities
1044 GMT - The U.S. dollar has been falling on the back of
reduced rate-hike expectations, and this is likely to act as a
tailwind for commodity prices, according to ANZ Research. In recent
years the relationship between commodities and currencies has been
upended by the pandemic and subsequent inflationary pressures, ANZ
says in a note. However, with supply-side issues now easing, this
relationship could remerge, with a weaker dollar signaling higher
commodity prices, the economic research firm says. "Energy
shortages in Europe have eased... so, the commodity price-dollar
relationship should re-emerge in 2023," it said. ANZ added that
with the Fed nearing the end of its rate hiking cycle, the dollar
should continue to weaken, with the greenback down 1.2% this week.
Oil Pares Gains Following Fed Boost
0838 GMT - Crude oil prices are moving lower, having pushed
higher after the Federal Reserve's move to push interest rates up
by 25 basis points yesterday. Brent crude is down 0.3% to $76.49 a
barrel while WTI is down 0.4% to $70.64 a barrel. Both remain up
for the week - Brent 4.9%, and WTI 5.80%, respectively. Despite the
early losses, analysts say demand for oil remains strong and is
likely to strengthen further. "The Energy Information Association's
weekly report highlighted strong exports, while domestic fuel
stockpiles declined," ANZ Research says in a note. It adds that
Asian demand also remains firm, while the prospect of no more rate
hikes this year also providing impetus for oil.
Base Metals Mixed, Gold Rises on Fed Interest-Rate Hike
0825 GMT - Base metal prices are mixed in early trade in London
while gold is rising after the Federal Reserve hiked interest rates
by 25 basis points Wednesday. Three-month copper is up 0.1% to
$8,938.50 a metric ton while nickel is down 1.4% to $22,450 a ton.
Gold meanwhile is 1.5% higher at $1,979.10 a troy ounce. "This was
a 'dovish hike', i.e., higher rates but with lower projections,"
Peak Trading Research says in a note. The dollar fell following the
rate rise, with indications from Fed chair Jerome Powell that fewer
or possibly no more rate hikes are set to happen for the rest of
this year, a bullish trend for commodity markets, Peak says.
Africa, Europe Poised to be Green Hydrogen Leaders
1638 GMT - Africa and Europe are poised to be leaders in
renewable hydrogen production thanks to Africa's mineral reserves
and renewable potential combined with Europe's production and
import targets, Rystad Energy says. Still, Rystad says a barrier to
building out Africa is investment, with only 13 megawatts of the
planned 114 GW having reached a final investment decision.
"Africa's unparalleled mineral reserves are critical for
electrolyzer production and the region's fantastic renewable
potential combined with Europe's prodigious production and import
targets will not just alter energy flows, they will create them
anew," Rystad's Rajeev Pandey says. (firstname.lastname@example.org;
Write to Barcelona Editors at email@example.com
(END) Dow Jones Newswires
March 23, 2023 07:52 ET (11:52 GMT)
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