Adnoc Launches New Natural Gas, Chemicals Investment Unit Valued at $80 Billion -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is flat at $72.34 a barrel

--European benchmark gas is down 2.5% at 46.05 euros a megawatt-hour

--Gold futures are up 1.2% at $2,653.50 a troy ounce

--LME three-month copper futures are up 0.7% at $9,026.00 a metric ton

TOP STORY:

Adnoc Launches New Natural Gas, Chemicals Investment Unit Valued at $80 Billion

Adnoc launched a new unit to invest in natural gas, chemicals and low-carbon energies, as it aims to capitalize on growing international demand and transform into a fully integrated energy company.

Abu Dhabi National Oil Co., known as Adnoc, said Wednesday that the investment unit, called XRG, will have an enterprise value of $80 billion. XRG will support Adnoc's international growth with a focus on transformational investments across natural gas, chemicals and low-carbon energy solution, the company said.

These three markets form the pillars of Adnoc's international growth strategy as it aims to become a key energy and energy-products supplier globally, betting particularly on rising demand in China, India and Japan.

OTHER STORIES:

NTPC Green Energy Shares Rise in Debut After More Than $1 Billion IPO

NTPC Green Energy shares rose in their trading debut after it raised more than $1 billion in its initial public offering, becoming the latest Indian company to tap a buoyant equity market.

Shares were recently at 122.75 rupees, or 14% higher than its IPO price, after opening 3.3% higher.

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Trump Treasury Nominee's Oil Math Doesn't Add Up

Donald Trump's Treasury Secretary pick, Scott Bessent, has a government deficit-reduction plan, neatly packaged as 3-3-3, which includes the U.S. producing an additional 3 million barrels of oil-equivalent a day. Not only does that energy plan seem impossible to implement, it makes little sense.

First of all, convincing oil-and-gas companies to produce more--the equivalent of over a fifth of total U.S. oil production today--will be a near-impossible task. The industry was scarred by years of overproduction during the shale boom, and investors no longer tolerate wildcatter behavior: They would rather see cash returns over excessive fracking. Trump's major oil and gas donors have already signaled that they don't want to "drill, baby, drill."

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Galp Pulls the Plug on Lithium Plant Plans in Portugal

Galp said it will not proceed with its Portuguese Aurora project after being unable to find new international partners.

The Portuguese oil-and-gas producer said late Tuesday that it has been looking for new partners to invest in the project since Sweden's Northvolt pulled out in early 2024.

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Arabica Coffee at Highest Price Since 1977 on Supply Concerns

Arabica coffee prices have hit their highest level since 1977 as concerns grow about tight global supplies.

Continuous arabica coffee futures on the ICE rose 2.8% to $3.175 a pound, near the all-time record of $3.356. Futures are up nearly 69% in the year-to-date.

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Anglo American Sells 6.6% Stake in Platinum Business for $528 Mln

Anglo American sold 9.6 billion South African rand ($527.9 million) worth of shares in Anglo American Platinum ahead of a full demerger of the business, and more than originally planned.

The diversified miner said Wednesday that it sold 17.5 million shares of Anglo American Platinum, or about 6.6% of its issued share capital, at 548 rand each. The price is an 8.6% discount to Anglo American Platinum's closing price of 599.45 rand on Tuesday.

MARKET TALKS:

Europe's Gas Trades Lower on Cease-Fire Deal, Pluto Plant Restart Plans -- Market Talk

1420 GMT - European natural-gas prices are pressured by lower supply risks after Israel and Hezbollah reached a cease-fire deal and Australia's Woodside Energy began preparations to restart the Pluto LNG facility. The benchmark Dutch TTF contract trades 1.8% lower at 46.38 euros a megawatt hour in afternoon trade, after rising to more than 48 euros a megawatt hour last week. Still, fears of supply risks due to the recent escalation in conflict between Russia and Ukraine and lower EU gas inventories due to higher winter demand are still providing a floor to prices. ([e-mail])

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U.S. Natural Gas Futures Lower Ahead of Storage Data -- Market Talk

0900 ET - U.S. natural gas futures are lower with forecasts overnight showing slightly warmer near-term temperatures. The EIA's weekly storage report is expected to be a small withdrawal, but still widening the inventory surplus over the five-year average. "We don't expect today's release to spur much price response short of a miss of more than 10 Bcf off of average street ideas that favor negligible change," Ritterbusch says in a note. "Beyond the weather factor, an upswing in production and a softening in export activity appears to be adding to today's downside price pressure." Nymex natural gas is off 5.2% at $3.287/mmBtu as January takes the front month position. ([e-mail])

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Trump's Tariff Plan Could Threaten U.S. Refiners -- Market Talk

1355 GMT - President-elect Donald Trump's tariffs on Canadian and Mexican imports would hurt U.S. refiners if crude oil were included, analysts say. According to data from the Energy Information Administration, the two countries are the top sources of U.S. crude imports. "The U.S. imports 5.2 million barrels a day of crude and petroleum products from Canada and Mexico," DNB Markets' Helge Andre Martinsen and Tobias Ingebrigtsen say in a note to clients. "A 25% tariff hike would be very painful for landlocked U.S. refineries that are dependent on pipeline imports of Canadian crude." ([e-mail])

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Oil Futures Higher in Steady Pre-Thanksgiving Trade -- Market Talk

0830 ET - Crude futures gain with the market digesting the Israel-Hezbollah ceasefire agreement and Donald Trump's tariff threats while looking to the weekend's OPEC+ meeting. "We've seen limited interest in moving either WTI or Brent futures positioning around the post-ceasefire agreement and tariff news, and both factors are now largely in the price," Chris Weston of Pepperstone says in a note. Pre-positioning ahead of the OPEC+ meeting will need to be put in place by Friday even as some U.S. traders take an extended break for Thanksgiving, he says, but "calmness seen in the price action and lack of trending conditions suggests oil traders see the OPEC+ meeting as a lower volatility affair." The group is widely expected to extend output cuts beyond December. WTI is up 0.7% at $69.23 a barrel, and Brent is up 0.6% at $73.23. ([e-mail])

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Metal Prices Gain as U.S. Dollar Slips -- Market Talk

1130 GMT - Metal prices rise, with LME three-month copper up 0.8% at $9,030.50 a metric ton and LME three-month aluminum up 0.1% at $2,610 a ton. Metals have strengthened as the U.S. dollar weakens, making it cheaper for foreign investors to purchase dollar-denominated commodities. Copper and aluminum remain down on-week and on-month, however, as Donald Trump's victory in the U.S. presidential election in early November sent the greenback sharply higher. The latest LME Commitment of Traders report released Tuesday shows speculators decreased bullish bets in copper, aluminum and zinc last week, ING analysts say in a note. Investors cut their net long positions in copper by 0.9% to 57,892 lots in the week ended Nov. 22, the lowest level since January, ING adds. LME three-month zinc rises 1.55% to $3,112.50 a ton. ([e-mail])

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Anglo American Likely to Sell Brazilian Nickel Assets Next -- Market Talk

1026 GMT - Anglo American looks likely to sell its Brazilian nickel assets next, as it continues its business reshaping, Berenberg analysts write in a research note. They estimate a net asset value of $331 million for the mines. After this, the mining giant will seek to demerge Anglo American Platinum, before divesting its diamond business. However, Berenberg views the timing of these two disposals as poorly timed, with better days ahead for platinum prices and a bottom-of-the-cycle diamond price currently and broadly unappealing outlook. "We see downside sentiment risk on at least the nickel and De Beers divestments, and our perceived struggles for Anglo to execute on its strategy will disappoint the market." Shares are up 2.8% at 24.39 pounds.([e-mail])

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Palm Oil Rises, Tracking Gains in Soybean Oil -- Market Talk

1008 GMT - Palm oil ended higher, tracking overnight gains in soybean oil on the Chicago Board of Trade, Kenanga Futures said in a research note. Soybean and palm oil tend to trade in tandem as they are used in similar products. Prices may have also been supported by concerns over weaker production prospects in Malaysia due to adverse weather conditions, Kenanga Futures said. The Bursa Malaysia Derivatives contract for February delivery ended 62 ringgit higher at 4,797 ringgit a ton.([e-mail])

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European Gas Prices Fall on Easing Supply Fears -- Market Talk

0926 GMT - European natural-gas prices fall in early trade as fears of tighter supplies ease, with the benchmark Dutch TTF contract trading 2.4% lower at 46.10 euros a megawatt hour. "Concerns over an imminent halt to Russia gas supplies eased after a capacity auction in Austria suggested pipeline flows from Russia will continue in December," ANZ Research analysts say in a note. Still, uncertainties surrounding Russian flows persist as U.S. sanctions against Gazprombank will make it harder for European importers to handle payments and as a transit deal between Russia and Ukraine is set to expire at the end of the year. Prices are also supported by faster gas storage withdrawals across the EU as lower temperatures increase demand for the heating fuel. ([e-mail])

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Gold Futures Rise as Dollar Slips on De-Escalating Middle East Tensions -- Market Talk

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11-27-24 0953ET