MARKET MOVEMENTS:
--Brent crude oil is up 1.1% to $63.52 a barrel
--Gold futures are up 1% to $3,340.90 a troy ounce
--LME three-month copper futures are down 0.3% at $9,447 a metric ton
TOP STORY:
Key Player in Russian Oil Trading Hit by U.K. Sanctions
The U.K. sanctioned a vital figure in Russia's oil trade, stepping up economic pressure on Moscow to strengthen Ukraine's hand in peace negotiations. The clandestine activities of Etibar Eyyub were earlier reported by The Wall Street Journal last year.
What happened?
Britain said its "largest ever sanction package" will target dozens of tankers Russia uses to transport oil and five traders from Azerbaijan. They were Eyyub, his business partner Tahir Garayev and three associates.
Prime Minister Keir Starmer said Friday that Russia's "shadow fleet" of aging tankers bankrolled the war and threatened critical subsea European infrastructure.
OTHER STORIES:
BP Shares Rise on Report Exxon, Chevron and Rivals Eyeing Oil Major
More takeover talk involving potentially several suitors was lifting shares of BP on Friday.
U.K. shares of BP UK:BP rose over 3% on Friday, while U.S.-listed shares BP gained over 2%.
Chevron, Exxon Mobil, TotalEnergies and Adnoc Gas from Abu Dhabi have been analyzing a potential deal, the Financial Times reported Friday, citing sources. Takeover talk was stirred days ago by a report that Shell was studying the possibility of a BP purchase.
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Iberdrola to Sell U.K.'s Smart-Meters Rental Business to Macquarie in $1.2 Billion Deal
Iberdrola agreed to sell its smart meter rental business in the U.K. to Macquarie Group for 899.7 million pounds ($1.19 billion).
The Spanish energy company said Friday that it will sell SP Smart Meters Assets-which it owns through Scottish Power-to the Australian investment bank in a deal expected to complete in the third quarter of the year.
Nissan Motor Co. announced on Friday that it has withdrawn its plan to build an electric vehicle (EV) battery plant in Kitakyushu, western Japan, and has notified the government offices of Fukuoka Prefecture and Kitakyushu City of the decision.
Nissan had only recently signed an agreement on the plan with the prefectural and city governments in January this year. Due to ongoing operational difficulties, the company is reviewing its production plans for the entire group and has been forced to make adjustments.
Gold Miner Regis Resources Sees Its Future Deep Underground -- Interview
PERTH, Australia--The chief executive of Regis Resources believes the market tends to misunderstand how much gold the company has beneath the ground.
Six years ago, the Australian gold miner was extracting the precious metal from open pits--operations that are relatively straightforward for analysts to value. But in recent years, Regis has gone underground, retrieving more of its gold from tunnels that reach deep beneath the Earth's surface
China to Crack Down on Rare-Earth Materials Ahead of U.S. Trade Talks
China has announced a crackdown on the smuggling of critical minerals, coming just one day before trade talks with the U.S., in which rare earth restrictions could be on the table.
Chinese authorities--including ministries of commerce, public security and state security and customs--convened a meeting in the southern port city of Shenzhen on Friday. According to an official readout, the agencies pledged to step up the enforcement of export controls on strategic mineral resources.
MARKET TALKS:
Gold Rises on Softer Dollar, Lingering Uncertainties -- Market Talk
1422 GMT - Gold prices gain as much as 1% in afternoon trade on a softer U.S. dollar, with markets looking ahead to the upcoming U.S.-China trade talks this weekend. Futures are up 0.7% at $3,328.10 a troy ounce, while the dollar index trades 0.3% lower, making bullion less expensive for holders of other currencies. Despite some positive signs this week, broader market uncertainty around tariffs still weighs on investor sentiment. In a Truth Social post, President Trump said Friday that an "80% tariff on China seems right," which would be a considerable reduction from the current 145%. Traders are also keeping a close eye on the geopolitical front amid rising tensions between India and Pakistan. ([email protected])
U.S. Natural Gas Futures Gain Ground -- Market Talk
0952 ET - U.S. natural gas futures are higher on largely technical moves with weather-related demand steady as air conditioning use rises and late-season heating demand fades. "While momentum is bullish and traders appear eager for a reason to press gas pricing higher--and may be briefly successful--the near-to-medium term fundamental picture remains soft," Eli Rubin of EBW Analytics says in a note. Nymex natural gas is up 5.2% at $3.778/mmBtu, on track for a second straight weekly gain. ([email protected])
Oil Futures on Track for Weekly Gains Amid Trade Optimism
0944 ET - Oil futures are higher and heading for gains in a week that started with a slump on planned OPEC+ output increases and is ending with optimism about U.S. trade talks. "All eyes will be on this weekend's trade negotiations with China which should give more direction on global trade," Dennis Kissler of BOK Financial says in a note. Indonesian plans to buy more U.S. petroleum products to get a trade deal, and added U.S. sanctions against buyers of Iranian oil are supportive of crude, but the conflict between India and Pakistan bears watching, he adds. "While currently it seems contained, an escalation could temporarily hurt oil demand from India." WTI is up 1% at $60.51 a barrel and Brent is up 0.9% at $63.38 a barrel. ([email protected])
Grains Higher As Trump Signals Lower China Tariff -- Market Talk
0941 ET - CBOT grains are higher as President Trump signals support for reducing the current tariff on Chinese goods. In a post on Truth Social, Trump says that an "80% tariff on China seems right!" --which would be a reduction from the 145% tariff currently active. This comes ahead of weekend meetings between U.S. and Chinese officials in Switzerland, and an overall increasingly-optimistic view of trade negotiations going forward, says AgResource in a note, including the U.S.-U.K. trade deal announced Thursday. Most-active corn is up 1.1%, getting a lift as the U.S.-U.K. trade deal includes provisions for higher ethanol exports to the U.K. Soybeans rise 0.5% and wheat climbs 0.1%. ([email protected])
OPEC+ Strategy Pivot Likely to Weigh on Oil Through 2026
1134 GMT - OPEC+'s more aggressive policy shift is expected to weigh on prices through this year and next, according to Capital Economics. "The fact that OPEC+ has ditched its 18-month plan and is announcing output quotas on a month-by-month basis adds even more uncertainty to the oil market outlook and makes a wide range of outcomes plausible," says economist Hamad Hussain. "In any case, it was only a matter of time before OPEC+ switched its focus to regaining market share - and we suspect that this shift will be long-lasting." Capital Economics now forecasts Brent crude at $60 a barrel by the end of 2025 and $50 a barrel by the end of 2026. ([email protected])
Base Metals Mixed With Focus on Trade -- Market Talk
1054 GMT - Base metals are mixed in midday trading, with analysts saying prices are likely to remain rangebound in the absence of any major catalysts. LME three-month copper is down 0.2% to $9,453.50 a metric ton, while three-month aluminum rises 0.8% to $2,427.50 a ton as traders closely monitor global trade developments and central bank moves. "Base metal prices have recovered significantly from the low following 'Liberation Day' and the index of the London Metal Exchange LMEX is now trading 9% higher than its low a month ago," Commerzbank Research analysts say. However, "the upside potential for base metal prices is also likely to be exhausted for the time being as long as there is no good news about a rapprochement in the tariff dispute between the U.S. and China." ([email protected])
Oil Gains Further Amid Trade Optimism, Iran Sanctions
1006 GMT - Crude prices extend gains in midday trade, supported by optimism surrounding global trade talks and fresh U.S. sanctions on Iran's oil exports. Brent rises 1.6% to $63.83 a barrel, while WTI is up 1.7% to $60.92 a barrel. The U.S. Treasury Department sanctioned a third Chinese independent refinery over purchases of Iranian oil, signaling continued pressure on Tehran ahead of an expected fourth round of nuclear talks. The move contributed to a rise in crude prices at a time when investor sentiment has already improved ahead of U.S.-China talks. However, concerns over the demand outlook persist. Kazakhstan reportedly said it has no plans to cut oil output in May, increasing the chances of another accelerated production hike from the OPEC+ group in July. ([email protected])
Gold Futures Rise After Thursday's Slide -- Market Talk
0808 GMT - Gold prices rise in early trading amid a softer U.S. dollar and following a 1% decline in the previous session. Futures are up 0.8% at $3,331.50 a troy ounce. Progress in global trade negotiations after the U.S. announced a deal with the U.K. and ahead of an ice-breaking meeting with China has eased demand for safe-haven assets in recent days. However, market watchers say investors are wary of the limited scope of the U.K. agreement and look at the upcoming meeting between Washington and Beijing with cautious optimism, as negotiations could be long and drawn-out. "Sentiment remains fragile," says Ipek Ozkardeskaya, senior analyst at Swissquote Bank. ([email protected])
Oil Set for Weekly Gains on Trade Optimism
0733 GMT - Oil prices are on track for a weekly gain of more than 3%, buoyed by renewed optimism surrounding global trade negotiations. In early trade, Brent crude and WTI both rise 0.9% to $63.38 and $60.44 a barrel, respectively. The U.S. announced a trade deal with the U.K.-the first with a major trading partner since President Donald Trump imposed blanket tariffs-and is scheduled to meet with China over the weekend. "Easing trade tensions helped lift crude oil prices," analysts at ANZ Research say. "The U.K. deal raises investor confidence that agreements with other countries can be reached despite more complicated issues." Meanwhile, China's exports growth showed unexpected resilience in April month, but the country's oil imports slipped from March levels. ([email protected])
Gold May Have Found 'Floor Price' Around $3,000-$3,100 an Ounce -- Market Talk
0154 GMT - Gold trading has likely found a new baseline "floor price" around $3,000-$3,100 an ounce, State Street Global Advisors' SPDR gold strategy team says in a note. Its base-case scenario is for gold to trade at $3,100-$3,500 an ounce in 2025. Under this scenario, "harsher trade and tariff rates are rolled back, including between U.S.-China, but policy uncertainty and tensions remain on the front foot for the balance of 2025," the team says. Other factors under this scenario include a Fed that is limited in its ability to lower rates owing to inflation uncertainty even as U.S. and global growth slows. Spot gold edges 0.1% lower to $3,301.57 an ounce. ([email protected])
Copper Edges Higher Amid Hopes for U.S.-China Trade Talks -- Market Talk
0119 GMT - Copper edges higher in early Asian trade amid hopes for U.S.-China trade talks. President Trump sounded an optimistic note about U.S.-China talks scheduled for this weekend in Switzerland and said he could possibly talk with Chinese leader Xi Jinping after the negotiations. Traders are also more appreciative of China's recent stimulus measures, which include cutting the required reserve ratio and mortgage rates, ANZ Research analysts say in a note. This should provide financial support to small- and medium-sized enterprises as well as tariff-hit firms, they add. The three-month LME copper contract is 0.1% higher at $9,439.50 a ton.([email protected])
(END) Dow Jones Newswires