U.S. Weighs Seizing Tankers Carrying Iranian Oil to Pressure Tehran -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil rises 2.5% to $70.51 a barrel.

--European benchmark gas is up 1.6% to 32.37 euros a megawatt hour.

--Gold futures are up 1% to $5,080.40 a troy ounce.

--LME three-month copper futures are up 1% to $13,228.50 a metric ton.

TOP STORY:

U.S. Weighs Seizing Tankers Carrying Iranian Oil to Pressure Tehran

Trump administration officials have discussed whether to seize additional tankers involved in transporting Iranian oil but have held off, concerned about Tehran's near-certain retaliation and the impact on global oil markets, U.S. officials said.

The U.S. has seized several ships that have carried Iranian oil as part of its two-month-old blockade of sanctioned tankers serving Venezuela. The tankers, which make up the so-called shadow fleet, help transport illicit oil from numerous sanctioned countries to China and other buyers.

OTHER STORIES:

Treasury Allows U.S. Companies to Provide Supplies to Venezuela for Oil Production

The Trump administration on Tuesday let U.S. companies supply Venezuela with equipment and technology needed to boost the country's oil production.

The Treasury Department issued a new general license allowing transactions by U.S. entities to supply "goods, technology, software, or services for the exploration, development, or production of oil and gas in Venezuela," according to the Treasury's Office of Foreign Assets Control.

--

OPEC Holds Oil-Demand Forecast Steady, Says Production Fell in January

The Organization of the Petroleum Exporting Countries kept its forecasts for global oil-demand unchanged and said production from the wider OPEC+ alliance fell last month amid losses in Venezuela, Iran and Kazakhstan.

Oil demand is projected to rise by 1.34 million barrels a day next year--slightly below 2026's estimated 1.38 million barrels a day--supported by easing inflation, fiscal measures and improving global trade, the Vienna-based cartel said in its closely watched monthly report.

--

Europe Needs to Learn Its Lesson: Stop Relying on Imported Energy

It's no fun relying on other countries for your energy needs when major powers start using their resources as a bludgeon. Europe is finding that out the hard way, again.

The European Union doesn't have the rich energy deposits of the Middle East or America. Its reliance on imports has been increasing as domestic oil and gas fields such as the North Sea basin deplete and climate policies phase out dirtier fuels including coal.

--

Chevron to Expand Into Libya After Winning Contract Auction

Chevron will expand into Libya after the company said it was a winning bidder in the country's 2025 bidding round.

The energy company on Wednesday said it was the winning bidder for Contract Area 106 in the Sirte Basin of Libya.

--

TotalEnergies Slashes Buyback, Boosts Savings Target as Lower Prices Hit Profit

TotalEnergies said it would reduce stock buybacks and step up cost savings after lower oil prices hit its fourth-quarter results.

The French energy giant is looking to boost its output of both hydrocarbons and electricity while reining in expenses, at a time when oil majors are positioning themselves for a period of weaker prices and greater investor scrutiny of their balance sheets.

--

Ford Aluminum Supplier Expects Fire-Damaged Plant to Be Repaired in June

Repairs to a fire-damaged aluminum plant are set to wrap up by the end of June, helping relieve a costly bottleneck for Ford Motor and other automakers.

The aluminum maker Novelis said that once repairs are completed at its Oswego, N.Y., plant, operations will gradually step up over a period of months to reach regular-rate production. Repairs will cost at least $255 million, according to a preliminary estimate filed late last year by the company to receive a county tax exemption for the work.

--

Evolution Mining Has No Intention of Sitting on Its Cash -- Interview

Evolution Mining has no plans to hoard cash and reckons its dividend policy is flexible enough to keep paying shareholders bumper returns amid a boom in gold prices, the Australian gold miner's chief executive officer said.

Sydney-based Evolution on Wednesday surprised investors with a record-breaking midyear payout, as the company benefited from a surge in gold and copper prices to record highs. Evolution reported a record first-half profit and a more than doubling in group cash flow to 608 million Australian dollars, equivalent to US$430 million.

--

Vision Ridge Raises $2.4 Billion for Sustainable Asset Deals

Vision Ridge Partners has raised about $2.4 billion to invest in businesses such as battery-system developers, electric vehicle-fleet operators and sustainable food producers around the world, as the private-equity firm expects to capitalize on decreasing costs of clean-energy technologies.

The fund

The total raised for Vision Ridge's Sustainable Asset Fund IV and related parallel vehicles far exceeded the $1.25 billion the Boulder, Colo.-based firm collected for a predecessor pool that wrapped up in 2021. Vision Ridge manages a total of about $5.6 billion in assets.

MARKET TALKS:

Oil Climbs 2% on U.S.-Iran Fears -- Market Talk

1411 GMT - Oil prices extend gains, with Brent crude climbing above $70 a barrel as concerns over U.S.-Iran developments keep traders on edge. The international oil benchmark rises 2.2% to $70.29 a barrel, while the U.S. oil gauge WTI is up 2% to $64.67 a barrel. According to U.S. officials, the Trump administration weighed seizing additional tankers involved in transporting Iranian oil--like it did in Venezuela--but has held off, concerned about Tehran's retaliation and the impact on global markets. "Taking similar action with Iran would be escalatory and would likely see the market needing to price in an even larger risk premium than it already is," analysts at ING say. ([e-mail])

--

Grains Mostly Lower as Traders Look to Brazil -- Market Talk

0917 ET - Corn and soybean futures are lower in pre-market trade, after turning higher in yesterday's session after the USDA's WASDE report made reference to President Trump's call for more purchases of U.S. soybeans by China. For soybeans in particular, a major issue that's limiting any gains prices may make is that with a record-size crop coming out of Brazil, low prices are what's needed to be competitive on the world export market. "A continuation of the rally will serve to only reduce U.S. competitiveness even further," says the Hightower Report in a note. "A move toward last week's highs is likely to encounter more significant hedge selling." Soybeans are down 0.2%, while corn sinks 0.4%. Wheat is up 0.3%. ([e-mail])

--

Oil Futures Rise On U.S.-Iran Risk Perception -- Market Talk

0905 ET - Oil futures are higher with the market focused on the U.S.-Iran situation. Shifting sentiment around U.S. and Iran talks makes it hard for traders to know what to price, says Nikos Tzabouras of Tradu. "Do we price prospects of a military instance, or prospects of a successful outcome in the nuclear talks?" While the broader fundamental outlook is bearish for oil, with oversupply looming, the geopolitical premium can spike at any time. "Ukraine peace remains elusive, the EU is tightening sanctions, and although we've seen talks between the U.S. and Iran, tensions linger," he adds. "So this sustains flow risks." WTI is up 2.5% at $65.55 a barrel and Brent is up 2.3% at $70.41 a barrel.([e-mail])

--

Gold Above $5,100 as Investors Eye U.S. Jobs Data -- Market Talk

1143 GMT - Gold prices extend gains, climbing back above $5,100 on a weaker dollar and as softer-than-expected U.S. retail sales boosted expectations of further interest-rate cuts. New York futures rise 1.9% to $5,123 a troy ounce in afternoon trading, while the U.S. dollar index is down 0.2% to 96.58. The next key catalysts are delayed U.S. jobs data due later on Wednesday and consumer-price index figures scheduled for Friday. "Today's jobs report is a pivotal event for the FX market," ING analysts say. "A materially weak print would likely pave the way for markets to price in a cut in April." A lower interest-rate environment typically benefits non-yielding bullion. ([e-mail])

--

EU Gas Storage Levels Could Drop Below 20% by End of Winter -- Market Talk

0912 GMT - Gas inventories across the European Union risk falling below 20% of capacity by the end of winter if depletion rates remain at current levels, analysts at Commerzbank say. Storage levels are already below 37% after colder temperatures drove up heating demand in recent weeks. Extremely low inventories would raise reliance on LNG imports in the near term--a manageable scenario given ample global supply--but would also limit flexibility if unexpected shortages occur. "After all, storage facilities remain necessary to cover higher demand in winter and also serve as a safety buffer in the event of temporary bottlenecks," says Commerzbank's Thu Lan Nguyen. In early trading, the benchmark TTF gas contract rises 1.5% to 32.32 euros a megawatt-hour. ([e-mail])

--

London's Miners Boosted by Rise in Precious Metal Prices -- Market Talk

0857 GMT - London's miners rise in morning trade as precious metal prices continue to climb. In New York, gold futures are up 0.8% at $5,073 a troy ounce while silver climbs 3.7% to $83.39 an ounce. U.S. retail sales were flat in December, which bolsters the case for a rate cut by the U.S. Federal Reserve. This is giving gold a boost as lower borrowing costs typically support non-yielding assets. Hochschild Mining rises 1.8% while Fresnillo and Endeavour Mining are both up around 1%. Rio Tinto's London shares are up 1.7% while Anglo American is up 1.2%.([e-mail])

--

Copper Rises But Near-Term Trading Expected to Remain Subdued -- Market Talk

(MORE TO FOLLOW) Dow Jones Newswires

02-11-26 1016ET