Biden Administration Moves to Block Oil Drilling on Millions of Acres in Alaska -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil falls 0.5% to $90.16 a barrel

--European natural gas prices rise 3.4% to EUR32.14 a megawatt hour

--Gold futures were flat at $1,944.00 a troy ounce

--LME three-month copper futures fall 1% to $8,280 a metric ton

--Wheat futures were flat at $6.09 a bushel

TOP STORY:

Biden Administration Moves to Block Oil Drilling on Millions of Acres of Alaskan Wilderness

The Biden administration moved to ban oil drilling in a swath of Alaskan wilderness, including canceling all remaining oil and gas leases issued in the Arctic National Wildlife Refuge under the previous administration.

The announcement Wednesday comes after the Biden administration approved the Willow oil-drilling project in Alaska's National Petroleum Reserve earlier this year over the objections of many Democrats and environmentalists.

The Interior Department's proposed regulation would bar new oil or gas leasing on 10.6 million acres, or more than 40%, of the National Petroleum Reserve. The reserve is a 23-million acre area managed by the department.

Interior Secretary Deb Haaland said she also authorized the cancellation of seven oil and gas leases issued by the Trump administration in Alaska's Arctic National Wildlife Refuge. The leases had been suspended in 2021.

"As the climate crisis warms the Arctic more than twice as fast as the rest of the world, we have a responsibility to protect this treasured region for all ages," President Biden said in a statement Wednesday.

OTHER STORIES:

China Exports Fall for Fourth Month as Once-Reliable Growth Engine Sputters

China's exports to the rest of the world dropped for a fourth straight month in August amid softening global demand, offering little relief from a deepening economic malaise.

China has struggled to sustain a wave of overseas demand for Chinese-made goods that carried it through much of the three years of the Covid-19 pandemic, particularly as Western consumers tilted their spending back toward services and away from goods. Higher borrowing rates in the U.S. and other developed countries also hit consumer appetites.

China's outbound shipments dropped 8.8% in August from a year earlier, contracting for a fourth consecutive month, China's General Administration of Customs said Thursday. The reading was better than the 10% decline expected by economists polled by The Wall Street Journal. They represented an improvement from the 14.5% year-over-year drop in exports in July, which marked the worst such result since February 2020.

Imports into China, including intermediate components, commodities and consumer products, fell 7.3% in August from a year earlier, a pace slower than July's 12.4% drop as well as the 9.7% decline anticipated by economists.

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Microsoft Will Use Carbon-Absorbing Rocks to Meet Climate Goals

Most of the world's efforts to remove carbon from the atmosphere use giant, vacuum-like devices that suck in air and isolate the carbon. Microsoft is funding a new approach that uses crushed-up limestone to achieve the same result.

The tech company said Thursday it agreed to buy credits from startup Heirloom Carbon for the removal of up to 315,000 metric tons of carbon dioxide over 10 years. That would amount to a purchase commitment of at least $200 million based on market prices and would offset the equivalent of the annual emissions of around 70,000 gasoline-powered cars.

The deal will help Microsoft neutralize its carbon emissions and is one of the largest ever purchases of carbon-removal credits.

MARKET TALKS:

Palm Oil Closes Lower, Tracking Soybean Oil's Losses

1014 GMT - Palm oil closed lower, falling for a fourth consecutive session, tracking soybean oil's losses overnight on the Chicago Borad of Trade. The two vegetable oils often move in tandem as they are used in similar products. Meanwhile, reports citing Turkish President Tayyip Erdogan as saying the Black Sea grain deal could be restored soon could weigh on palm oil prices, analysts said. Palm oil is a popular substitute for edible oil exported from the Black Sea region. The Bursa Malaysia Derivatives contract for November delivery fell MYR50 to MYR3,831 a ton.([e-mail])

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Barry Callebaut's Plan Looks Like a Good Start for New CEO

0920 GMT - Barry Callebaut's investment plan and restructuring seem a positive first step under its new Chief Executive Peter Feld, Deutsche Bank analyst Siobhan Lynch says in a research note. The Swiss chocolate company will invest around CHF500 million and named Peter Vanneste as new chief financial officer amid a reshuffling of its executive ranks that will shrink its committee to six from nine members. It also plans to shift its geographic structure, which will improve customer experience in the long term, but will take time to fully integrate, DB says. However, the lack of information regarding next year's outlook might keep some investors on the sidelines until Nov. 1, when the company plans to share more details on the program and its guidance, DB says. ([e-mail])

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Oil on Course to Halt Multi-Day Winning Streak

0749 GMT - Oil prices edge lower, halting a run of gains, as traders awaited U.S. inventory data. Brent crude oil weakens 0.5% to $90.16 a barrel, halting a seven-day run of gains. WTI declines 0.6% to $87.04 following a nine-day rally. Department of Energy data on changes in U.S. stocks is due later Thursday, offering investors a clue on crude oil demand. A private sector reading of U.S. stocks reported a 5.5 million barrel drawdown in the week through Friday, though that was less than the previous week. Traders are also mulling Chinese trade data, which showed imports and exports both fell in August, though the declines were less than forecasted. ([e-mail])

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Metals Fall After China's Trade Data Reflects Its Economic Malaise

0738 GMT - Metals prices are falling as concerns over China's economy continue to hurt sentiment. Three-month copper and aluminum are both 0.1% lower at $8,351 a metric ton and $2,191 a ton, respectively. Gold, meanwhile, is 0.1% lower at $1,942.40 a ton. Data from China on Thursday showed exports in August had fallen for a fourth month in a row, showcasing the country's current economic malaise. However, ANZ in a note highlights a bright spot within commodities, that a number of imports rose on month. Copper ore, for example, rose by more than 36%, while iron ore also was up more than 13%. "With inventories relatively low, the prospects of further stimulus measures triggered restocking across commodities, which should keep demand strong in the short term," ANZ says. ([e-mail])

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Iron Ore Falls But Hopes for More Property Stimulus Measures by China May Support

0258 GMT - Iron-ore futures are lower in early Asian trade. Despite the drop this morning, iron ore prices could get a boost amid expectation for more property stimulus measures, Huatai Futures analysts say, referring to a state media report that said that policies restricting home purchases and property loans were "out of date." Meanwhile, Vale, the world's largest producer and exporter of iron ore, remains positive about China's iron ore demand, given high operating rates at mills and low inventories of iron ore and steel across the country, ANZ analysts say in a research note. The most-traded iron ore contract on the Dalian Commodity Exchange is down 0.6% at CNY898.0 a ton. ([e-mail])

(END) Dow Jones Newswires

09-07-23 0719ET