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MARKET MOVEMENTS:
–Brent crude oil is down 0.6% at $72.51 a barrel
–European benchmark gas is up 2.3% at 45.15 euros a megawatt-hour
–Gold futures are down 0.4% at $2,633.30 a troy ounce
–LME three-month copper futures are flat at $8,944.50 a metric ton
TOP STORY:
Avangrid to Start NYSE Delisting Process After Iberdrola Buyout Gets Approvals
Avangrid will start a process to delist from the New York Stock Exchange after majority shareholder Iberdrola got regulatory approvals to complete a deal to take full control of the U.S. utility.
Spain’s Iberdrola said late Friday that it expected to close on Monday its $2.55 billion deal for the shares in Avangrid it didn’t already own.
The transaction received authorization from the U.S. Federal Energy Regulatory Commission and the Maine Public Utilities Commission, as well as from the New York Public Service Commission.
OTHER STORIES:
China’s EV Boom Is Starting to Pinch Oil Producers
China’s oil demand is nearing a turning point as electric vehicles take a growing share of its vehicle market, the world’s largest.
The country has long been the thirstiest consumer of crude. China accounted for 16% of global demand in 2023, or 16.4 million barrels a day, up from around 9% in 2008. More significantly, China was the largest buyer of marginal barrels. During that span, it contributed to more than half the growth in global oil demand. Since a record consumption year in 2023, after the country emerged from strict zero-Covid policies, demand has slowed. Oil consumption is projected to rise a mere 0.8% year on year in 2024 and by an additional 1.3% in 2025, according to the International Energy Agency.
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Good Energy Agrees on Further Extension to Esyasoft Bid Deadline
Good Energy Group said the U.K. Takeover Panel agreed to extend Esyasoft Holding’s deadline to make a bid so the Dubai-based holding company can progress with its due diligence.
The U.K renewable-energy company said Monday that Esyasoft now has until Jan. 20 to either make a firm offer or walk away. The previous deadline was set to end on Monday, having been previously extended from Nov. 25.
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Coke, PepsiCo Lobby to Keep Sugary Sodas in Food-Stamp Program
Robert F. Kennedy Jr. wants to take sugary drinks out of the shopping carts of food-stamp recipients. Coca-Cola, PepsiCo and Keurig Dr Pepper are mobilizing to stop him.
Kennedy, the president-elect’s nominee to run the Health and Human Services Department, aims to remove soda and processed foods from federal programs such as the Supplemental Nutrition Assistance Program, also known as food stamps. The move could have big repercussions for the beverage industry.
MARKET TALKS:
Oil Futures Slip to Start Shortened Trading Week — Market Talk
0849 ET – Oil futures are lower at the start of what’s expected to be a light trading week, after falling last week on the Fed outlook for fewer interest-rate cuts that strengthened the U.S. dollar, and continuing concerns about demand prospects for 2025. “This week will likely bring a subdued trade with WTI downside possible to about the $67 1/2 mark. We don’t see any major developments capable of pushing values appreciably lower or much above last week’s high of $71,” Ritterbusch says in a note. WTI is off 0.6% at $69.07 a barrel and Brent is down 0.6% at $72.51 a barrel. ([email protected])
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Volatile Week Seen for U.S. Natural Gas — Market Talk
0842 ET – U.S. natural gas futures look to extend last week’s rally with winter weather pushing up demand, strong LNG exports and expectations of a cold start to January. “It’s likely to be an extremely volatile week, aided by a mid-week Christmas break, Jan’25 futures expiring at Friday’s close, and of course what’s likely to be large colder/warmer run to run weather model trends for the first half of January,” NatGasWeather.com says in a note. The Nymex front month is up 0.6% at $3.769/mmBtu after reaching $3.944/mmBtu overnight. ([email protected])
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Europe’s Gas Price Rises as Russia-Ukraine Transit Deal Nears End — Market Talk
1141 GMT – European natural-gas prices rise in midday trade as the deal allowing Russian gas to transit through Ukraine nears expiry. The benchmark Dutch TTF contract is up 2.8% at 45.36 euros a megawatt hour. European countries still getting the Russian fuel via the Ukrainian route are rushing to find possible alternatives to keep supplies intact after Kyiv reiterated that it won’t extend the deal. Russia is willing to continue delivering gas, but that would be “almost impossible” after Jan. 1, said Slovak Prime Minister Robert Fico on Sunday after a meeting with Russian President Vladimir Putin. Prices are also supported by stronger demand for the heating fuel as winter kicks in and inventory declines sharply across Europe. ([email protected])
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China’s New-Energy-Vehicle Sales Could Grow 25% to 30% Next Year — Market Talk
1040 GMT – China’s electric-vehicle sector is set to continue growing in 2025, CCB International analyst Qu Ke says. He projects total industry sales volume to rise about 25% to 30% next year, driven by hybrid plug-in cars due to a wide range of models. He adds that new-energy vehicles purchased in 2025 will still qualify for tax exemption, and the government is likely to extend its trade-in program for old cars, which will support sales. Qu favors Geely due to the growing market share of its new Galaxy series. Zeekr is another top pick because of its new models and growing overseas exposure, he says. Qu also likes Leapmotor for its overseas expansion and views the company as a beneficiary of China’s consumption downgrade.([email protected]; @ivy_jiahuihuang)
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Palm Oil Ends Higher Amid Concerns Over Weak Output — Market Talk
1020 GMT – Palm oil ended higher amid concern over weaker output support prices, according to David Ng, a trader at Kuala Lumpur-based proprietary trading company Iceberg X. Ng sees deploy at MYR4400 and resistance at MYR4800. Trading may still be muted ahead of Christmas followed by the New Year holidays and heightened global volatility might limit gains, according to Kenanga Futures analysts in a commentary. The Bursa Malaysia Derivatives contract for March delivery rose MYR112 to MYR4,545 a ton. ([email protected])
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Base Metals Edge Higher Despite Strong Dollar — Market Talk
0939 GMT – Base metals rise despite a strong U.S. dollar, after the latest inflation print alleviated concerns over interest-rate cuts next year. The three-month LME copper contract trades 0.5% higher at $8,985 a ton, while aluminum is up 0.2% at $2,547.50 a ton. Last week, the Federal Reserve’s hawkish shift boosted the dollar, making commodities more expensive for holders of other currencies. But mean reversion strategies–a market theory suggesting that prices tend to revert to their historical average over time–have come into play, Sucden Financial says. “We expect this trend to hold in the coming days, with prices across the complex edging slightly higher,” head of research Daria Efanova wrote on Saturday. “However, given the thinning liquidity over the holiday period, we are cautious about the potential price choppiness until the year-end.” ([email protected])
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Oil Edges Higher After U.S. Inflation Data But Demand Concerns Persist — Market Talk
0930 GMT – Oil prices inch higher after softer-than-expected U.S. inflation data eased worries over interest-rate cuts next year, but concerns over global demand trends continue to weigh on the market. Brent crude is up 0.5% at $73.33 a barrel, while WTI rises 0.6% to $69.91 a barrel. The latest PCE data print showed inflation wasn’t as stubborn as economists had predicted, sparking a positive reaction among investors following the Federal Reserve’s hawkish shift. Still, prices continue to trade in a tight range amid widespread concerns over oil-demand growth in China and prospects of a supply surplus next year. An overall cautious sentiment is also spurred by uncertainties over market developments next year when President-elect Donald Trump returns to the White House. ([email protected])
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Gold Broadly Stable After U.S. Inflation Data Eased Rate-Cut Concerns — Market Talk
0914 GMT – Gold prices are broadly stable as a softer-than-expected U.S. inflation reading rekindled hopes of interest-rate cuts next year. The personal consumption expenditures price index–the Federal Reserve’s preferred inflation gauge–rose 0.1% the previous month and 2.4% over the past 12 months, below analysts expectations. Futures are flat at $2,644.30 a troy ounce following a weekly loss on Friday after the U.S. central bank signaled fewer rate cuts next year, boosting the dollar and bond yields. Traders now await the last batch of economic data this week, including the consumer confidence reading due later Monday and initial jobless claims on Thursday. ([email protected])
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Copper Rises; Recent Drops Look Overdone — Market Talk
0301 GMT – Copper is higher in early Asian trade. Prices are likely to rebound slightly this week following declines in the wake of the Federal Reserve’s meeting last week, when markets pared back rate cut views, sending the dollar higher and weighing on copper. That reaction looks overdone to Nanhua Futures analysts. Though the Fed signaled fewer rate cuts for 2025 that doesn’t represent a significant change, the analysts say. While demand may be weak by the year-end, copper’s fundamentals look solid for now as production is supported by a large backlog of orders, Galaxy Futures analysts say in a commentary. Production is expected to continue apace through the month, they add. The three-month LME copper contract is 0.5% higher at $8,985.00 a ton. ([email protected])
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Palm Oil Rises Amid Bargain Hunting — Market Talk
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12-23-24 0909ET