EU Policies Discourage U.S. Businesses, Says Energy Secretary -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil falls 1.6% to $64.23 a barrel.

--European benchmark gas is down 0.8% to 37.78 euros a megawatt-hour.

--Gold futures are up 0.9% to $4,879.10 a troy ounce.

--LME three-month copper futures are down 0.1% to $12,744 a metric ton.

TOP STORY:

EU Policies Discourage U.S. Businesses, Says Energy Secretary

The European Union's policies make it harder and riskier for American businesses to bring energy products into the bloc, U.S. Energy Secretary Chris Wright said on Thursday.

"If those regulations are not meaningfully reformed, it's not worth it for them to send the energy into Europe," Wright told Journal House at the World Economic Forum in Switzerland, before calling himself a "passionate Europhile" a few minutes later.

OTHER:

Scott Sheffield, the Shale Boss Spurned by Exxon, Joins Fight Against Coterra

Oil boss Scott Sheffield has a new job: activist gunslinger.

Investment firm Kimmeridge is preparing to nominate Sheffield, the former chief executive of Pioneer Natural Resources, to join Coterra Energy's board as part of an activist push to revamp the company, according to people familiar with the matter.

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Change in Venezuela Isn't the Only Reason to Own Oil-Field-Services Stocks

America's removal of Venezuelan President Nicolas Maduro has captured the imaginations of oil-field-services companies looking to put their equipment to work there. But Venezuela isn't the main reason to get excited about these companies.

Oil-field-services giants have been among the biggest gainers in the energy universe since Maduro's capture: SLB and Halliburton's shares have appreciated 21% and 13%, respectively, outpacing the 6.8% gain for an ETF tracking large oil-and-gas-sector companies.

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Venture Global Shares Rise on Arbitration Win Against Repsol

Shares of Venture Global rose after the company said it achieved a win in its arbitration proceedings with Repsol LNG about liquid natural gas sales through an agreement between the two companies.

The stock rose 11% to $10.04 in Thursday's premarket trading after closing Wednesday up 33% so far this year.

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Sasol Lifts Fuel-Sales Outlook But Gas Production Forecast Dims on Reduced Demand

Sasol raised its guidance for fiscal 2026 fuel sales volumes after fiscal second-quarter production improved at its Natref refinery, but trimmed its gas-production outlook.

The South African chemicals and energy group on Thursday said that for the year through June 30 it now expects fuel sales volumes to increase by 5% to 10% on year, compared with its earlier forecast of a 0% to 3% uptick.

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Gold Resource Says Contractors Are Illegally Blockading Gold Mine

Gold Resource said that contractors are staging an illegal blockade at its Don David Gold Mine in Oaxaca, Mexico.

The gold and silver producer said Thursday that roughly 20 employees across four contractors "established an illegal mine-access blockade, resulting in the work stoppage." The contractors started the blockade over a dispute with the union representing workers at the mine, the company said.

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Hudbay Brings In New Japanese Partner for Exploration of Projects in Manitoba

Hudbay Minerals has secured another funding partner to bolster its exploration in northern Manitoba of properties that in the past produced both base and precious metals.

The copper-focused mining company said Thursday it granted a Japanese government agency, Japan Organization for Metals & Energy Security, an option to buy a 10% interest in three projects located within trucking distance of Hudbay's processing facilities in the town of Flin Flon, Manitoba. To gain the stake, the agency would have to fund at least 6 million Canadian dollars (US$4.3 million) for exploration over about three years.

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Freeport-McMoRan Posts Higher 4Q Profit Despite Significantly Lower Production

Freeport-McMoRan said fourth-quarter production was significantly hurt by the ongoing suspension of operations at one of its mines, though higher prices for precious metals helped boost profit.

The Phoenix copper and gold miner on Thursday posted net income of $406 million, or 28 cents a share, compared with $274 million, or 19 cents a share, a year earlier.

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Eldorado Gold Launches Dividend Program

Eldorado Gold will begin paying out a quarterly dividend, a milestone as the Canadian miner prepares for its Skouries project in Greece to begin producing.

Eldorado said Thursday that it is initiating a regular dividend program, with an initial payout of 7.5 cents a share set for March 13 to shareholders of record at the close of business Feb. 27.

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Lundin Mining Drop Following Production Report, Guidance for Coming Years

Lundin Mining's shares were sharply lower after the Canadian miner raised its forecast for copper production over 2026 and 2027 but held its target for gold output essentially steady at the midpoint of guidance.

In morning trading, the shares were 9.1% lower at C$33.33. That narrows the advance over the last three months to 63%.

MARKET TALKS:

U.S. Natural Gas Storage Draw Beats Expectations

1101 ET - Withdrawals from U.S. natural gas inventories were bigger-than-expected last week but below the five-year average, EIA data show. Gas in underground storage fell by 120 billion cubic feet to 3,065 Bcf, raising the surplus over the 2021-2025 average to 177 Bcf from 106 Bcf the week before. The drawdown was bigger than the 103 Bcf estimate in a Wall Street Journal survey of analysts, but smaller than the average 191 Bcf decline for the week. Nymex natural gas is extending this week's rally, up 14% at $5.548/mmBtu as a coming freeze across much of the U.S. is expected to bring about larger-than-usual draws in following weeks.([e-mail])

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Cattle Flat Ahead of USDA Report -- Market Talk

1009 ET - Cattle futures on the CME are flat, with traders awaiting the release of tomorrow's Cattle on Feed report from the USDA. Analysts surveyed by WSJ forecast a drop of over 3 percentage points in the total amount of cattle on feedlots, along with a drop of over 7 points in new placements. "If realized, this would be the smallest December placement rate since 2015, and the smallest inventory since 2017," says AgResource in a note. Lean hog futures are up 1% in morning trade. ([e-mail])

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Optimism Around Renewable Fuels Lifts Grains -- Market Talk

0942 ET - Grain futures climb, supported by a surge in optimism around the U.S. government finalizing regulations that the agricultural sector hopes will be favorable to grain feedstock demand. In the case of corn, the potential of making E15 fuel--motor vehicle fuel containing 15% ethanol-- available nationally year-round would boost corn demand by over 2 billion bushels, says Naomi Blohm of Total Farm Marketing in a note. "If E15 replaced E10 nationwide year-round, the incremental corn use is on the order of 2.4-2.8 billion bushels per year," says Blohm. "That would be new demand." The potential for higher blend quotas for soybean-based biofuels is driving those futures higher as well. CBOT corn climbs 0.4%, soybeans up 0.5%, and wheat rises 1.3%. ([e-mail])

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U.S. Natural Gas Futures Rally Loses Some Steam

0828 ET - U.S. natural gas futures continue their rally at a slower pace, while the coming freeze across much of the U.S. leads the market to reassess storage expectations. Gas demand projections for the next 10 days have shifted the outlook for storage levels at the end of this winter and the start of next winter down by several hundred billion cubic feet, Gary Cunningham of Tradition Energy says in a note. "That is a big driver of why the impacts of the cold on prices is extending well beyond the near term." Today's EIA storage report and midday weather updates could see traders who bought at the start of the rally take profits and ease markets slightly lower towards the end of the day, he adds. Nymex natural gas for February delivery is up 7% at $5.216/mmBtu.([e-mail])

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Crude Futures Give Back Some Gains

0859 ET - Oil futures are returning some gains amid a lull in geopolitical tensions. The decline "appears to be profit-taking and as the diesel market has led the way higher in recent sessions, it is leading the way lower today," Ritterbusch and Associates says in a note. President Trump's walking back his threat of tariffs on some European countries over Greenland reduces some uncertainty, while tensions between the U.S. and Iran have eased, the firm says. The risk reduction might suggest further downside with Venezuelan supply looking available sooner than previously expected, although the severe cold spell facing the U.S. in coming days makes it "too early to rule out fresh highs in diesel futures." WTI is off 1.6% at $59.64 a barrel and Brent is 1.5% lower at $64.26 a barrel. ([e-mail])

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Palm Oil Rises, Tracking Soybean Oil Strength -- Market Talk

1049 GMT - Palm oil prices ended higher, tracking gains in the soybean oil market, says David Ng, a trader at Kuala Lumpur-based Iceberg X. Expectations for stronger export demand, in addition to stronger prices of rival oils overnight, also pushed futures higher, Kenanga Futures analysts say in a note. They ad that slowing production for January is seen to ease Malaysian stockpiles as well, with levels reaching a seven-year high and offering further upward support. Kenanga Futures sees support for CPO futures at 4,115 ringgit a ton and resistance at 4,225 ringgit a ton. The Bursa Malaysia Derivatives contract for April delivery closed 44 ringgit higher at 4,198 ringgit a ton. ([e-mail])

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Miners Left out of European Rally as Metals Slip -- Market Talk

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01-22-26 1158ET