MARKET MOVEMENTS:
--Brent crude oil is 0.6% lower at $85.03 a barrel.
--European benchmark gas rises 3.1% to EUR54 a megawatt
hour.
--Gold futures are down 1.1% at $1,845.30 a troy ounce.
--Three-month copper is 1.7% lower at $8,862.50 a metric
ton.
--Wheat futures are 0.1% lower at $7.85 a bushel.
TOP STORY:
Oil Demand to be Driven by Asia This Year as China Reopens, IEA
Says
The International Energy Agency raised its forecasts for oil
demand this year to a record level, as China's reopening fueled a
surge in air travel across Asia, while also adding to its supply
forecast as Russian production remained surprisingly resilient to
Western sanctions.
The Paris-based energy watchdog said in a monthly report that it
expects oil demand to grow to 101.9 million barrels a day this
year--a record level--propelled almost entirely by rising demand in
Asia. The figure is 200,000 barrels a day more than the IEA
forecast last month, which was also a record amount.
That figure means demand is expected to grow by 2 million
barrels a day this year, of which Asian nations will account for
1.4 million barrels a day and China alone will account for 900,000
barrels a day.
OTHER STORIES:
Glencore to Return $7.1 Bln to Shareholders After Record 2022
Earnings
Glencore PLC said Wednesday that it will return $7.1 billion to
shareholders after reporting record 2022 earnings on the back of
significant growth in its marketing and energy divisions.
The Anglo-Swiss commodity mining and trading company declared
distributions of $5.6 billion and a $1.5 billion share-buyback
program.
This follows increased earnings and net debt reducing to $75
million, significantly beating a market consensus of net debt of
around $386 million. However, the net debt figure should imply
total shareholder returns of around $9 billion, leaving the actual
result a significant miss, RBC Capital Markets said in a research
note.
Glencore reported record adjusted earnings before interest,
taxes, depreciation and amortization of $34.06 billion for 2022, up
from $21.32 billion in 2021 and slightly above a market consensus
of $33.94 billion, taken from FactSet and based on 13 analysts'
estimates.
--
Chinese President Xi Jinping Pledges to Boost Consumption,
Investment
Chinese President Xi Jinping has pledged to boost domestic
consumption and investment to anchor economic expectations and
improve business confidence, according to an article published
Wednesday by the ruling Communist Party journal Qiushi.
The government should give priority to the recovery and
expansion of consumption by unleashing the potential of the
domestic market and increasing residents' income, especially low
and middle-income groups, Xi said in a speech dated back in
December during the country's annual key economic work
conference.
Chinese policy makers usually make key economic decisions at
this year-end meeting, including setting growth targets for the
following year. China will unveil its economic targets at an annual
legislative meeting early next month.
--
Fortescue's First-Half Net Profit Fell 15%, Cuts Dividend
Fortescue Metals Group Ltd. on Wednesday reported a 15% fall in
first-half profit and pared its interim dividend as iron-ore prices
fell and production costs increased.
The world's fourth-largest iron-ore producer said it made a net
profit of US$2.37 billion in the six months through December, down
from US$2.78 billion in the year-earlier period. That beat market
expectations of a US$2.34 billion profit, according to 12 analyst
forecasts compiled by Vuma Financial.
Directors declared an interim dividend of 75 Australian cents
(US$0.52) a share, down from 86 Australian cents a year ago.
Underlying earnings before interest, tax, depreciation and
amortization, or Ebitda, declined to US$4.35 billion from US$4.76
billion in the year-earlier period.
MARKET TALKS:
Platinum Supply at Risk Amid South Africa Power Struggles
1043 GMT - Platinum supply remains at risk this year as South
Africa--the globe's largest producer--faces deepening power issues,
putting strain on refiners and miners, Bank of America says in a
note. "Ultimately, the mining sector is heavily dependent on power
availability. No power, no output," BofA says, noting that 90% of
South Africa's power comes from state provider Eskom, which has
implemented load shedding for months now to try and ease the strain
on the grid. As a result, BofA expects South African PGM output to
slip 3.5% this year and platinum to move into deficit. Palladium
remains under less strain due to low auto demand, the U.S. bank
says. Futures Wednesday are down 1.4% to $925 a troy ounce.
(yusuf.khan@wsj.com)
--
Malaysian Palm Oil Prices Fall, Could Trade Sideways in Near
Term
1004 GMT - Malaysian crude palm oil prices closed a tad lower on
Wednesday. The commodity could continue to trade sideways amid
muted demand, as most importing countries have already stocked up
on vegetable oils, UOB Kay Hian analysts Leow Huey Chuen and
Jacquelyn Yow write in a note. While production in February is
likely to remain low due to widespread floods in Malaysia, a lack
of strong demand could mean that prices of the commodity would
likely struggle to find direction, they add. The benchmark Bursa
Malaysia Derivatives Exchange contract for April delivery closed
MYR21 lower at MYR3,935 a metric ton. (yiwei.wong@wsj.com)
--
Oil Falls on US Demand Worries
0845 GMT - Oil prices tumble as data suggests a sharp build in
U.S. crude oil inventories. Brent crude oil falls 1.1% to $84.61 a
barrel while WTI sheds 1.2% to $78.10 a barrel. American Petroleum
Institute figures reportedly showed a 10.5 million barrel build in
U.S. crude stocks in the week through Feb. 10. Signs of weak U.S.
demand are undermining optimism surrounding China's growing
appetite for crude oil. "We expect oil and gas demand to increase
in China but are a bit more cautious than most...Still, the wild
card remains U.S. demand and whether the biggest major
oil-consuming economy slips into the recession abyss," says Stephen
Innes, managing partner at SPI Asset Management in a note.
(william.horner@wsj.com)
--
Metal Prices Slip as Dollar Strengthens
0844 GMT - Metal prices are moving lower in early trading, with
a rising dollar once again acting as a headwind for commodity
prices. Three-month copper is down 1.5% to $8,884 a metric ton
while aluminum is 0.4% lower at $2397.50 a ton. Gold meanwhile is
down 1% to $1,846.20 a troy ounce--a 10-week low. Deutsche Bank is
now pricing in two more 25 basis-point rate hikes from the Federal
Reserve amid strong employment and warm inflation data recently.
"These all support our base case for a recession rather than a soft
landing," DB analyst Jim Reid says in a note, adding that a more
hawkish approach from the Fed is still likely.
(yusuf.khan@wsj.com)
--
Glencore 2022 Earnings Seen as Solid Despite Working Capital
Drag
0747 GMT - Glencore has reported a solid set of 2022 results
with Ebitda rising 60% to a record $34.1 billion largely on the
back of coal, Citi says. The commodity mining and trading company's
working capital has been a drag for free cash flow given continued
build in the second half, but that has been partially offset by
higher earnings in its marketing business, Citi analysts say in a
research note. "We believe that markets are likely to look through
the working capital build in the context of stronger EBIT in
marketing," the U.S. bank says. Citi retains its buy rating and 700
pence target price on the stock. Shares closed Tuesday at 515.9
pence. (joseph.hoppe@wsj.com)
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
February 15, 2023 06:39 ET (11:39 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Fortescue Metals (ASX:FMGCD)
Historical Stock Chart
From Nov 2024 to Dec 2024
Fortescue Metals (ASX:FMGCD)
Historical Stock Chart
From Dec 2023 to Dec 2024
