MARKET MOVEMENTS:
–Brent crude oil is down 0.5% to $76.11 a barrel.
–European benchmark gas is up 0.6% to EUR51.49 a megawatt-hour.
–Gold futures are up 0.1% to $2,770.90 a troy ounce.
–LME three-month copper futures are up 0.6% at $9,066.50 a metric ton.
TOP STORY:
U.S. Crude Oil Stockpiles Rise for First Time in 10 Weeks
U.S. crude oil inventories increased for the first time in 10 weeks as exports fell and refineries lowered their capacity use, according to data released Wednesday by the U.S. Energy Information Administration.
Commercial crude oil stocks excluding the Strategic Petroleum Reserve rose by 3.5 million barrels to 415.1 million barrels in the week ended Jan. 24, and were about 6% below the five-year average for the time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude stockpiles would increase by 1.1 million barrels.
Oil stored in the SPR rose by 248,000 barrels to 394.8 million barrels. Oil stocks at Cushing, Okla., the Nymex delivery hub, increased by 326,000 barrels to 21 million barrels.
The EIA estimated U.S. crude oil production at 13.2 million barrels a day, down by 237,000 barrels a day. Crude imports fell by 297,000 barrels a day to 6.4 million barrels a day, and exports were down by 829,000 barrels a day at 3.7 million barrels a day.
OTHER STORIES:
Fresnillo Meets Output Target After Flat Silver Production
Fresnillo met its overall production target after silver output for 2024 was flat.
The silver producer said Wednesday that it produced 56.31 million ounces of silver in 2024 compared with 56.28 million ounces a year prior and in line with the target range of between 55 million and 62 million ounces.
That result was driven by higher ore grades and increased volumes of silver ore from the company’s San Julian Veins and Saucito operations, offset by decreased production at San Julian as it approached the end of its life, the company said.
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Calumet Says $1.44 Billion Loan Delayed on Trump Administration Review
Calumet will have to wait to receive the first part of its previously approved $1.44 billion loan facility that is now under review.
The manufacturer of specialty branded products and renewable fuels said Tuesday it was informed about a tactical delay, which may last or days or weeks, by the Energy Department’s Loan Programs Office. The facility is being reviewed to make sure it’s in alignment with White House priorities, the company said.
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U.S. Ethanol Production Slides
Average daily ethanol production in the U.S. shrank back from the previous week, falling well below analyst estimates and back to a level last seen more than three months ago.
In its latest report, the Energy Information Administration said average daily ethanol production for the week ended Jan. 24 fell to 1.015 million barrels a day. That’s down 84,000 barrels a day from the previous week, and arrives at a level last seen in early October.
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Energy Fuels, Navajo Nation Reach Deal on Uranium Transport
Energy Fuels said it has reached a deal that would allow the transport of uranium ore through the Navajo Nation, resolving a dispute months after the shipments were halted.
The Denver company said Wednesday that the agreement would allow it to transport ore from its Pinyon Plain Mine near the Grand Canyon in northern Arizona to its White Mesa Mill in southern Utah. Shipments are expected to resume in 2025.
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GE Vernova Plans to Invest Nearly $600M in U.S. Factories, Creating 1,500 Jobs
GE Vernova is planning to invest about $600 million in its U.S. factories over the next two years to meet rising electricity demand.
The energy manufacturing company that focuses on power, wind and electrification, said the investments are expected to create around 1,500 new jobs.
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Hess 4Q Earnings Rise on Higher Output
Hess reported a rise in profit and revenue for the fourth quarter, driven by higher production volumes.
The oil-and-gas production company on Wednesday posted a profit of $542 million, or $1.76 a share, compared with $413 million, or $1.34 a share, in the same period a year ago.
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Pod Point Enters U.K. Flexible Energy Wholesale Market Ahead of Schedule
Pod Point Group said it entered the wholesale flexible energy market in the U.K. under new regulations earlier than expected.
The electric-vehicle charging company on Wednesday said it would be the first company to sell energy on the wholesale market under the new P415 regulation, which allows companies who aren’t energy suppliers to sell wholesale energy as a virtual trading party.
MARKET TALKS:
European Gas Prices Climb Amid Steep Inventory Withdrawals — Market Talk
1711 GMT – European natural-gas prices hit their highest level this year as inventories across the continent keep depleting fast. The benchmark Dutch TTF contract is up 0.6% at 51.49 euros a megawatt hour, after rising more than 6% earlier in the evening. “It’s a combination of factors prompting this steep increase in one day,” Rabobank’s energy strategist Florence Schmit says. “But ultimately it’s against the backdrop of not putting an end to the steep withdrawals we have seen over most of January.” Gas storage in the EU was 55.4% full while net withdrawals stood at around 4.8 terawatt hours as of Monday, signaling the need for higher LNG imports to rebuild inventories for next winter. Prices are also boosted by lower wind speeds and colder temperatures forecasts for next week, as well as increased bullish bets by investment funds, Schmit says. (giulia.petroni@wsj.com)
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Gold Futures Rise Ahead of Federal Reserve Meeting — Market Talk
1648 GMT – Gold futures rise despite a stronger U.S. dollar, as the market awaits the first Federal Reserve meeting of the year. Futures are up 0.2% to $2,772.40 a troy ounce. Gold prices have had a volatile series of sessions, climbing to near-record highs on Friday on softer U.S. tariff expectations–before a sharp selloff on Monday, SP Angel analysts say in a note. The Fed meeting is due later Wednesday, with markets expecting officials to hold interest rates steady after recent inflation rebound concerns, SP Angel writes. However, recent U.S. data does show steady progress on improving inflation, while the labor market remains firm, SP Angel adds. Lower interest rates typically boost the appeal of non-interest bearing bullion. (joseph.hoppe@wsj.com)
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Base Metal Prices Rise; Tariff Threats Underpin U.S. Price Outperformance — Market Talk
1633 GMT – Base metal prices rise, with LME three-month copper up 0.7% at $9,078 a metric ton and LME three-month aluminum up 2% at $2,625 a ton. LME prices have recovered some ground after several consecutive sessions of losses, but copper and aluminum remain down 2.2% and 0.8% on week respectively. Over the weekend, President Trump singled out copper, aluminum and steel for targeted tariff hikes, Citi analysts write. Markets quickly moved to price the heightened tariff risk with a fresh jump in U.S.-based pricing for copper and aluminum, Citi says. There is further upside for U.S. commodities exchange Comex copper over LME with a 10% effective tariff on U.S. copper now the base case, Citi says. Citi continues to expect LME base metal price weakness upon tariff confirmation, with 0-3 month copper estimate of $8,500 a ton. (joseph.hoppe@wsj.com)
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Oil Falls on U.S. Stockpiles Build, Tariff Worries — Market Talk
1631 GMT – Oil prices fall in evening trade in Europe, pressured by a rise in U.S. crude stockpiles and concerns over the impact of trade tariffs. Brent crude is down 0.5% to $76.08 a barrel, while WTI falls 0.8% to $73.18 a barrel. The Energy Information Administration reported U.S. crude oil inventories rose by 3.5 million barrels last week, against expectations of a 1.1-million-barrel increase projected by analysts. Meanwhile, the market is weighing the potential impact on global growth and demand of U.S. tariffs on Canadian and Mexican imports. “Crude prices keep dancing to the rhythm of Trump’s tariff orchestra,” Saxo Bank analysts say. Prices are also pressured by easing supply concerns in Libya following protests at key ports. (giulia.petroni@wsj.com)
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South American Forecasts Support Grains Prices — Market Talk
1123 ET – Trader focus continues to be rooted in the prospects for South American crops — with CBOT grain futures rising as forecasts for Argentina are leaning dry, while parts of Brazil are receiving too much rain and are expected to get more. The excess rainfall in Brazil is delaying planting of the safrinha corn crop in Brazil, the country’slarger crop. “It is typically a long planting window for the safrinha corn crop to get planted in Brazil, but you don’t want to see a third or more of the crop planted outside the optimal planting window, and right now, the pace is setting up that way,” Brian Pullam of Linn & Associates says. The weather is also impacting soybean planting in both countries. (kirk.maltais@wsj.com)
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Trump’s Plans Unlikely to Boost Onshore Drilling in 2025, UBS Says — Market Talk
1617 GMT – U.S. President Trump’s “drill, baby drill” plans aren’t expected to boost U.S. onshore drilling activity this year, UBS’s Giovanni Staunovo says. “Drilling activity indicators like rigs and frac spreads do not suggest a strong increase in production activity,” he says in a note. “And lower oil prices would weigh on U.S. oil supply growth prospects.” The U.S. oil gauge WTI is down 0.8% to $73.19 a barrel, while Brent crude falls 0.5% to $76.08 a barrel in evening trade. Weaker oil prices can reduce the profitability of drilling operations or push companies to decrease capital investment in exploration and production. (giulia.petroni@wsj.com)
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OPEC+ Likely to Stick to Output Plan, UBS Says — Market Talk
(MORE TO FOLLOW) Dow Jones Newswires
01-29-25 1236ET