MARKET MOVEMENTS:
–Brent crude oil is up 4.3% to $79.30 a barrel.
–European benchmark gas is up 5.3% to 51.40 euros a megawatt-hour.
–Copper futures are up 0.5% to $13,547 a metric ton.
–Gold futures are down 2.3% to $4,019.30 a troy ounce.
TOP STORY:
U.A.E. Crude Output Surged in June After OPEC Exit
The United Arab Emirates boosted crude output by 80% in June from the previous month after quitting the Organization of the Petroleum Exporting Countries to escape production quotas and bring oil to the market on its own terms.
The country–one of the world’s largest oil producers–pumped 3.81 million barrels a day last month, an increase of 1.64 million barrels a day from May, OPEC data showed. In February, before the war, output stood at 3.42 million barrels a day.
June’s increase came before the latest flare-up in tensions between the U.S. and Iran, which has curtailed traffic through the Strait of Hormuz and threatened a recovery in Gulf production, marking the sharpest escalation since the two sides agreed to a 60-day peace deal in mid-June.
OTHER STORIES:
Frequent Oil Draws From U.S. Strategic Reserve Push Old System to Breaking Point
The U.S. is tapping in to its national stocks of crude with abandon. The withdrawals are taking a toll on the strategic reserve system.
Just in the past four years, the Biden and Trump administrations have ordered the largest releases from the Strategic Petroleum Reserve while seeking to tamp down soaring oil prices-a total of 352 million barrels, or nearly half the capacity of the stocks.
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Shell to Sell India Renewables Business to Aditya Birla for $1.8 Billion
Shell said it agreed to sell Sprng Energy to Aditya Birla Renewables for $1.8 billion, nearly four years after it bought the supplier of solar and wind power in India.
The U.K. energy major said Monday that it signed an agreement for the sale of Solenergi Power, which includes Sprng Energy, to Aditya Birla Renewables, the renewable-energy platform of the Indian conglomerate. Shell said the move reflects its focus on adjusting the portfolio of its power business.
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Gulf Pipeline Push Could Weaken Hormuz’s Grip on Oil Markets, Goldman Sachs Says
The Strait of Hormuz has emerged as one of oil’s biggest geopolitical vulnerabilities in recent months. Goldman Sachs says a wave of pipeline projects could soon give Gulf producers a way around the chokepoint and ease the risk premium attached to the waterway.
As a fresh wave of strikes between the U.S. and Iran once again threatens traffic through the strategic waterway–which used to carry one-fifth of the world’s oil shipments–analysts at the bank say new capacity could shield more than 45% of prewar Persian Gulf oil exports from further disruptions by the end of 2027 and more than 60% by the end of 2028.
MARKET TALKS:
Heat in the Midwest Supporting Corn and Soybean Prices — Market Talk
1058 ET – July heat continues to be a factor giving corn and soybean futures support. The latest outlook issued by the National Weather Service shows that above-average heat looks to be in place in U.S. Plains for the next two weeks, with states on the eastern side of the Corn Belt beginning to see temperature relief near the end of the month. For today, the heat outlook for both the U.S. and Europe looks to support grain futures, says Joe Davis of Futures International. “The U.S. and EU are experiencing heat this week from high pressure heat domes sitting over growing areas,” says Davis. CBOT corn is up 1.3%, soybeans rise 0.4%, and wheat falls 0.1%. ([email protected])
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Gold Down 2.5% as U.S.-Iran Tensions Push Oil Higher — Market Talk
1454 GMT – Gold plunges 2.5% as oil prices extend gains on escalating tensions between the U.S. and Iran. “If oil prices continue to push higher, that will only reinforce expectations that the Fed could remain more hawkish over the coming months,” says Fawad Razaqzada, market analyst at Forex.com. “On top of that, the stronger U.S. dollar is adding further pressure.” In afternoon trading, New York gold futures fall 2.5% to $4,010 a troy ounce. Market focus now turns to a busy week for U.S. economic data and speeches from Federal Reserve officials. ([email protected])
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Hogs Higher With Seasonality Seen Returning — Market Talk
1008 ET – Seasonal strength typically seen in hog prices at this time of year appears to be returning, with the most-active contract up 1%. “For the first time yet this summer, the hog and pork markets are finally starting to act a little more summer-ish,” says StoneX in a note. “The pork cutout at $101.34 [per hundredweight] on Friday afternoon is a fresh eight-month high there, and with finally some support out of those processing items being seen -hams and bellies.” The firm notes that some short-covering is being seen – with Friday’s Commitment of Traders report from the CFTC showing a net short position of just over 29,000 contracts. Live cattle futures are up 0.1%. ([email protected])
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U.S. Natural Gas Futures Extend Losses — Market Talk
0947 ET – U.S. natural gas futures continue their slide as weather forecasts are revised cooler and exports are seen falling on maintenance at Freeport LNG. “We are searching for a new area of support,” Gary Cunningham of Tradition Energy says in a note. Power-sector demand will start the week lower with heat in the south dissipating and Texas even trending toward cooler than normal for mid-July, he says. Still, “at some point soon we should see some recovery as short sellers take some profit and give us a small bounce and prices firm.” Nymex natural gas is down 2.9% at $2.854/mmBtu.([email protected])
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Crude Futures Rise As U.S., Iran Step Up Strikes — Market Talk
1247 GMT – Oil futures start the week higher after the U.S. and Iran increased their strikes at the weekend, reducing vessel passage through the Strait of Hormuz. WTI is up 4% at $74.27 a barrel and Brent is up 4.1% at $79.10. “What the market is pricing is not the strikes themselves but the damage to diplomacy,” Anindya Banerjee of Kotak Neo says in a note. While every fresh exchange delays normalization of tanker traffic through the strait, both the U.S. and Iran have incentives to contain the situation, he says. “Washington wants oil cheap ahead of its midterm elections and Tehran wants sanctions relief, and Qatari mediation remains active–so our base case is a contained conflict rather than a full re-closure.” ([email protected])
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Oil Gains More Than 3.5% as U.S.-Iran Standoff Deepens
0725 GMT – Oil prices surge more than 3.5% after the U.S. and Iran exchanged fresh strikes, intensifying their standoff over control of the Strait of Hormuz waterway. In early European trading, Brent crude is up 3.6% to $78.76 a barrel, while WTI futures rise 3.6% to $73.99 a barrel. “Escalation has slowed vessels transiting the strait to a trickle, renewing concerns over oil supply tightness through the third quarter,” analysts at ING say. “The risk is that this escalates to levels seen early in the war, where neighboring countries and their energy infrastructure are also targeted.” ([email protected])
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European Energy Stocks Rise on Higher Oil Price — Market Talk
0738 GMT – European oil companies are rising in early trade on higher oil prices after weekend tit-for-tat strikes between the U.S. and Iran. Confusion over whether the Strait of Hormuz is open also boosted prices. The U.S. said the Strait–which carries around a fifth of the world’s oil–was open, while Tehran said it was closed. Brent crude is up 3.6% to $78.76 a barrel, while WTI futures rise 3.6% to $73.99 a barrel. In London, shares of BP and Shell are up 2.4% and 1.4%, respectively, while France’s TotalEnergies shares are up 2%. Eni shares are up 2.5%, while Equinor shares are 2.7% higher. ([email protected])
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Gold Slides as U.S.-Iran Strikes Push Oil Higher — Market Talk
0733 GMT – Gold futures slide more than 1% after fresh strikes between the U.S. and Iran sent oil prices higher, reviving concerns about inflation and prospects of tighter monetary policy. In early trading, New York gold was down 1.2% at $4,066.10 a troy ounce. The latest escalation, which is renewing concerns over the future of the Strait of Hormuz and supply tightness in the third quarter, pushed U.S. Treasury yields and the dollar higher, adding further pressure on non-yielding precious metals. Investors are now awaiting upcoming U.S. inflation data and Federal Reserve Chair Kevin Warsh’s congressional testimony for fresh clues on the outlook for interest rates. ([email protected])
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Iron Ore Falls Amid Rising Supply — Market Talk
0222 GMT – Iron ore falls in early Asian trade. Oversupply pressures are likely to intensify as supplies from Australia, Brazil and new sources increase, ANZ Research strategists say in a note. This would limit room for iron-ore prices to rise further, they add. The underlying demand for iron ore looks fragile, with weak downstream steel consumption and restocking momentum already fading. The most-traded iron ore contract on the Dalian Commodity Exchange is last down 0.4% at 745.0 yuan a ton. ([email protected])
Write to Barcelona Editors at [email protected]
(END) Dow Jones Newswires
07-13-26 1134ET
Source: Original Article
