Exxon, Chevron Earnings Tempered by Trading Impacts -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is down 1.2% to $109.13 a barrel.

--European benchmark gas is down 0.3% to 45.88 euros a megawatt-hour.

--Copper futures are down 0.2% to $12,995 a metric ton.

--Gold futures are down 0.3% at $4,618 a troy ounce.

TOP STORY:

Exxon, Chevron Earnings Tempered by Trading Impacts

Trading impacts tempered Exxon Mobil and Chevron's profits in the first quarter, though the results otherwise beat Wall Street's expectations.

The U.S. oil giants are poised to reap a windfall this year due to a nearly 60% jump in oil prices since the start of the Iran war. But an accounting quirk resulted in billions of dollars of paper losses on hedging contracts in the first three months of 2026. Ultimately, the companies expect to benefit from higher oil prices when the trades settle.

OTHER STORIES:

U.S. Oil Giants Are Suddenly Taking Another Look at 'Uninvestable' Venezuela

Rising above the din of voices in the lobby of the J.W. Marriott in Venezuela's capital, Caracas, is an unusual sound: Spanish spoken with a Texas twang.

Engineers, lawyers and other emissaries of the U.S. oil industry have flocked to the heavily guarded hotel to pitch their Venezuelan counterparts on plans to revive the country's rundown oil fields. Dozens have met with a receptive Delcy Rodriguez, Venezuela's acting president. One small Texas operator was recently heard boasting that his company is nimble enough to get oil flowing faster than the oil giants.

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Five Takeaways From the Journal's Analysis of the U.A.E.'s Exit From OPEC

The United Arab Emirates' decision to withdraw from OPEC marked a new alignment in the Middle East, where the tiny but fantastically wealthy Persian Gulf country becomes more tied to Israel and the U.S. than the Arab world.

For decades, the Gulf, led by Saudi Arabia, favored stability at all costs in the region, avoiding provocations with a hostile Iran and backing dictatorship over democracy. Now, the U.A.E. has taken on a more disruptive role, embracing Israel's military dominance and rethinking its role in traditional Arab-led institutions.

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Companies Are Talking More About Renewables, But Policy Headwinds Still Bite

Companies reeled in references to renewable energy in their investor filings last year when President Trump took office and proclaimed that the U.S. would "drill, baby, drill." But now--amid an oil and gas crisis--mentions of clean energy have jumped.

The number of corporate annual reports that include the terms "renewable" and "clean energy" rose to 1,760 in the first quarter of 2026 from 1,368 during the same period last year, when Trump returned to the White House, according to research from WSJ Pro Sustainable Business.

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Australia Doubles Down on Energy Shift as Middle East Tensions Simmer

Australia's push to rely on a broader range of countries for its oil imports will extend beyond a reopening of the Strait of Hormuz, illustrating how the Middle East conflict could permanently reshape energy supply chains even if hostilities end.

The country will also seek to increase the use of renewable energy to reduce its dependence on the global oil market and guard against future supply shocks, said Chris Bowen, Australia's climate change and energy minister.

MARKET TALKS:

Oil Prices Slip But Remain Elevated as U.S.-Iran Standoff Continues -- Market Talk

0930 ET - Crude futures lose some steam as markets watch the U.S.-Iran standoff amid reports that Tehran presented a new peace proposal. The news is countered by fears of a significant escalation in hostilities that could further damage refineries and keep oil trade at a minimum. "President Trump may prioritize the 'eradication of the nuclear program' over a complete reopening of the strait, as the U.S. is an energy exporter," XS.com's Samer Hasn writes. He warns that "the world may soon face a massive second inflationary shock." WTI crude falls 2% to $103 a barrel. Brent is slightly down, to $110. ([e-mail]; @ptrevisani)

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Soybean Futures Back at $12/Bushel Mark -- Market Talk

0927 ET - CBOT soybean futures are up 0.4% at $12 a bushel, the first time since March that soybeans have risen above this level. Soybean futures have gained nearly 15% year-to-date. Gains in soyoil, supported by higher crude prices, are pushing underlying soybean futures higher, with the $12 a bushel mark a "psychological resistance" point, says Joe Davis of Futures International in a note. Corn futures are up 0.8%, while wheat is 0.7% higher. ([e-mail])

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Cocoa Gains on Hershey Results, West African Disruption -- Market Talk

1327 GMT - Cocoa futures rise by over 4% on week after chocolatier Hershey posted expectation-beating earnings and revenues, easing some investor fears around the extent of falling demand. Meanwhile, Ghana's cocoa regulator said government funds are being used to buy illicit beans, Reuters reported. The allegations compound worries around the liquidity crisis within West African cocoa farming, with farmers struggling to find buyers for their crops. However, demand will remain suppressed in the near term, as demand remains historically low and weather conditions are favorable, Rabobank analysts write. Cocoa futures in New York rise 4.5% for the week to $3,528 a metric ton. ([e-mail])

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Gold Headed for Weekly Loss on Higher Rate Fears -- Market Talk

0808 GMT - Gold prices are headed for a weekly loss of 3% as higher oil prices fuel expectations that central banks might keep interest rates higher for longer. New York futures are down 0.6% to $4,600.20 a troy ounce, with thin trading volumes across key Asian markets on Friday due to public holidays. In the previous session, bullion found support as the U.S. dollar weakened, with the Japanese yen recovering after government officials signaled potential intervention to prop up the currency. Meanwhile, silver futures fall 0.6% to $73.61 an ounce, while platinum was down 0.8% to $1,977.80 an ounce. ([e-mail])

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Oil Remains Elevated as U.S.-Iran Talks Impasse Continues

0735 GMT - Oil prices remain in triple-digit territory after hitting a wartime high in the previous session, as U.S.-Iran talks remain at an impasse. In early European trading, Brent crude for July deliver-now the front-month contract-is up 0.2% to $110.66 a barrel, while WTI futures for June slip 0.5% to $104.46 a barrel. The international oil benchmark surged to its highest in four years on Thursday, before easing by the close as markets await progress in negotiations. Concerns remain centered on the Strait of Hormuz, where any prolonged conflict could lead to even more severe disruptions to Gulf production. Meanwhile, "the gap between the paper and physical markets is narrowing as tightness begins to materialize for the first time since the conflict began," analysts at ANZ say. ([e-mail])

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Europe's Jewelers Lustred by Iran War's Drag on Gold -- Market Talk

0639 GMT - Europe's jewelers and watchmakers can expect a boost from a changing energy and commodity landscape, analysts at RBC Capital Markets say. Gold--which surged in price last year--has fallen some 12% since the start of the Iran war, as oil prices climb and investors prepare for higher interest rates ahead. Silver prices have fallen, too. That is good news for the hard-luxury groups who use the precious metals in their products, RBC writes in a note. Companies like Cartier-owner Richemont, Swiss watchmaker Swatch and Danish jeweler Pandora can all benefit, the bank says. Those groups also have relatively little exposure to higher oil prices, RBC adds. ([e-mail]; @joshualeokirby)

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Aluminum, Zinc Price Outlook Stronger Than BofA Previously Expected -- Market Talk

0252 GMT - Bank of America pulls forward its $4,000/metric ton aluminum-price forecast to 4Q 2026 from 2Q 2027, citing damage to smelters in the Middle East. It also lifts its expectations for prices further out, says analyst Michael Widmer. BofA meanwhile raises its 2026 average zinc-price forecast by 13% to $3,309/ton, citing tightness in markets outside of China. "Adjustments for the other metals are marginal," says Widmer. While the Middle East conflict will likely impact both metals demand and supply, "the hit to demand is not strong enough to flip our baseline balances for now," he says. LME 3-month aluminum is up 0.9% at $3,503.50/ton. Zinc is up 0.8% at $3,387/ton, while copper is 0.8% higher at $13,092/ton. ([e-mail]; @RhiannonHoyle)

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Copper Higher, Supported by Stronger China Demand -- Market Talk

0237 GMT - Copper is higher in early Asian trading. Prices are supported by signs of stronger demand in China, say ANZ research analysts in a commentary. Manufacturing activity in China continues to grow, with the official manufacturing PMI in expansionary territory with a 50.3 reading for April, the analysts say. Investors are also closely watching the developments in the Middle East. The three-month LME copper contract is 0.9% higher at $13,106.00 a ton. ([e-mail])

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Gold Likely to Remain Under Pressure for a Bit -- Market Talk

0222 GMT - Citi expects gold to remain under pressure in the near term amid Middle East uncertainty, particularly "in the case of higher oil prices and another wave of equity market correction." It reiterates a $4,300/oz target for the next 0-3 months. Citi is, however, more bullish in the medium term. "While gold tends to suffer alongside risky assets in the early stage of a major correction, we expect gold to eventually outshine as a haven asset, supported by heightened geopolitical uncertainty and rising stagflation risks," Citi says. It keeps a 6-12 month target of $5,000/oz. Spot gold is up 0.2% at $4,631.77 an ounce. ([e-mail]; @RhiannonHoyle)

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Gold Steady But Stagnation of Diplomacy in Middle East Weighs -- Market Talk

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05-01-26 1007ET