Carbon Emissions Climbed Less Than Feared in 2022 Despite Coal Resurgence -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil edged up 0.5% to $84.73 a barrel.

--European natural gas rose 1.2% to EUR 47.65 a megawatt-hour.

--Gold futures declined 0.3% to $1,839.70 a troy ounce.

--LME copper fell 2.4% to $8,913 a metric ton.

--Wheat futures gained 0.5% to $7.14 a bushel.

TOP STORY:

Carbon Emissions Climbed Less Than Feared in 2022 Despite Coal Resurgence

Global carbon emissions inched higher last year, according to the International Energy Agency, but the increase was less than what had been feared as booming demand for renewable energy kept the impact from resurgent coal plants in check.

An analysis by the energy forecaster, whose members comprise many of the world's largest energy consumers, said emissions of carbon dioxide, a greenhouse gas that drives climate change, climbed less than 1% or 321 million metric tons in 2022.

While the increase takes total emissions to 36.8 billion tons, their highest level ever, the increase is smaller than what had been feared following a year in which the global energy crisis sparked by Russia's invasion of Ukraine drove many countries to fire up long-shunned coal and oil power plants.

The soaring price of fossil fuels and concerns about the security of global energy supplies provoked by the energy crisis have also proven a boon for renewable energy sources, the growth of which continued in 2022 and helped to alleviate the rise in carbon emissions, the Paris-based agency said.

OTHER STORIES:

EU Probes Germany's Compensation for RWE Amid Phasing Out of Coal

The European Commission is investigating Germany's revised calculations for the compensation of power operator RWE AG during the phase-out of lignite-fired plants in the Rhenish mining area.

The European Union's executive arm said on Thursday that the inquiry concerns an amendment to an agreement signed between the government and RWE. The amendment includes postponement of the final closure of two plants to March 2024 from end of 2022 and anticipation of the final closure of three other plants to 2030 from 2038, with the original compensation of 2.6 billion euros ($2.8 billion) remaining unchanged.

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Impala Platinum 1H Profit Rose on Pricing, Destocking; Backs Production Views

Impala Platinum Holdings Ltd. on Thursday reported a rise in profit for the first half of the fiscal year on the back of robust pricing and destocking inventory, and backed production guidance.

The South African platinum miner made a net profit of 13.97 billion rand ($770.6 million ) for the six months ended Dec. 31, up from ZAR13.84 billion a year earlier. The company said the rise in net profit was due to strong platinum group metal pricing and destocking which offset lower refined volumes, though it was hampered by inflation and rand depreciation.

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RWE Acquires UK Solar, Battery Storage System Developer

RWE AG has acquired U.K. solar and battery storage systems developer JBM Solar for an undisclosed sum as it aims to continue growing its portfolio in the country.

MARKET TALKS:

Natural Gas Falls Ahead of EIA Storage Report

0826 ET - Natural gas prices fall 1.4% to $2.772/mmBtu after a six-session streak of gains, as investors gear up for a weekly EIA storage report at 10:30 am ET. The data is expected to show inventories fell by just 74 billion cubic feet, according to a WSJ survey. That is well below the average 134-bcf decline and would highlight the weak demand picture that persists due to mild weather in Texas and reduced feedgas demand for LNG plants as Freeport LNG is still not back to 100% after shutting in June. If forecasts for today's report are confirmed, a total storage surplus would widen from 15% above average to a portly 20% above average. ([e-mail])

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Demand Optimism Spurs Higher Grains

0821 ET - CBOT grain futures are higher overnight, driven by optimism that the recent drop in futures was enough to entice more export buyers to purchase from the US. "Bulls are in 'hope' mode right now," says John Payne of Hedgepoint Global. "Corn bulls specifically want to see good exports, continued rallies in RBOB to increase ethanol margins and problems in the second crop Brazil corn. All of those cards are on the table right now, to a small degree." Soybean futures are following corn, although "to a lesser degree," Payne adds. In pre-market trade, corn is up 0.9%, soybeans rise 0.1%, and wheat climbs 0.9%. ([e-mail]; @kirkmaltais)

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WTI Oil Rising for 3rd Straight Day on Bounce in Demand

0812 ET - US crude prices are increasing for a third straight session, up 0.4% at $78.02 a barrel as they begin to make a move toward the upper end of a months-long range between $71 and $82. Yesterday's weekly EIA report was mixed as it showed a bullish uptick in U.S. demand for both gasoline and diesel fuels, along with record-high U.S. crude-oil exports that may begin to tighten domestic supplies. But the report also showed that even with the surge in exports, U.S. crude inventories increased last week for a tenth straight week to a bearish, 21-month high of 480 million barrels, 9% above the five-year average for this time of year. ([e-mail])

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Palm Oil Ends Higher Amid Brighter Supply-Demand Dynamics

1034 GMT - Palm oil ended higher in Asia, extending Wednesday's gains as supply-demand dynamics turned brighter amid unfavorable weather conditions in producing regions and China's improving macroeconomic picture. Analysts say that worries about a potential supply shortage may have driven buying interest during the session, as flash floods and heavy rain in Malaysia in recent days prompt traders to stock up. Overnight strength in soybean oil futures on the Chicago Board of Trade has likely offered further support, analysts say. The benchmark Bursa Malaysia Derivatives contract for May delivery rose MYR111 to MYR4,293 a ton. ([e-mail])

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Metals Slip After Fed Comments

0850 GMT - Metals prices weaken as investors mull hawkish comments from Federal Reserve officials and a stronger dollar. Three-month copper on the LME is down 0.8% at $9,055 a metric ton while aluminum falls 0.4% to $2,433 a ton and zinc declines 0.7% to $3,111.50 a ton. Minneapolis Fed President Neel Kashkari said he could favor a 50-basis-point rate increase later this month to get inflation properly under control, while Atlanta Fed's Raphael Bostic says rates need to be raised to a 5%-5.25% range and remain there for some time. The comments are weighing on risk sentiment, which along with a 0.3% rise for the ICE Dollar Index, is dragging on metals. ([e-mail])

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(END) Dow Jones Newswires

03-02-23 0958ET