MARKET MOVEMENTS:
--Brent crude oil is down 0.6% at $88.96 a barrel
--European benchmark gas is down 2.7% to EUR28.14 a megawatt hour
--Gold futures are up 0.3% at $2,354.40 a troy ounce
--LME three-month copper futures are up 0.8% at $10,040.50 a metric ton
TOP STORY:
PetroChina's First-Quarter Net Profit Rose on Higher Sales
Chinese state-controlled oil company PetroChina said its net profit and revenue rose in the first quarter, primarily due to a rise in sales volume for its oil and gas products.
PetroChina, the listed arm of state-owned China National Petroleum Corp., said Monday that its net profit rose 4.7% from a year earlier to 45.68 billion yuan ($6.30 billion). Revenue rose 10.9% on year to CNY812.18 billion.
The Chinese oil major attributed the revenue increase primarily to higher sales volume of refined oil, natural gas and chemical products.
The group's average realized price for crude oil fell 0.8% on year to US$75.41 a barrel in the first quarter, the company said.
OTHER STORIES:
BMW Plans $2.8 Billion China Factory Update to Boost EV Production
BMW will invest $2.76 billion to adapt one of its major Chinese factories to produce more electric vehicles, part of plans to roll out its newest fully electric offerings in the world's largest EV market.
The German automaker will spend 20 billion yuan ($2.76 billion) on its plant in Shenyang, China, to ready it to produce its coming Neue Klasse series electric-vehicle models, with production targeted for 2026.
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Tesla Wins Data-Security Clearance in China
Tesla has become the first foreign automaker to win approval from data-security regulators in China, which could pave the way for its vehicles to be used by the government, state-run enterprises and at military sites.
The China Association of Automobile Manufacturers said late Sunday that Tesla's Model 3 and Model Y had been added to a list of vehicle models whose data use meets national security standards. It said 76 models from six automakers, including BYD, Li Auto and Nio, had also been cleared from data-security concerns.
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SSAB to Supply Finland's Nordec With Fossil-Free Steel
Swedish steelmaker SSAB agreed to supply fossil-free steel to Nordec for use in the manufacture of frame structures for buildings, facades and bridges.
SSAB's fossil-free steel replaces the coking coal traditionally used for iron ore-based steelmaking with fossil-free electricity and hydrogen. It aims to deliver fossil-free steel to the market at commercial scale during 2026.
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Orsted to Sell French Onshore Wind and Solar Business to Engie
Orsted has agreed to sell its French onshore wind and solar business in France to Engie as part of a strategic refocus.
The Danish renewable-energy company is working through a transformation plan that includes cost cuts, asset sales and a refocus of business priorities as it tries to right itself from a costly move into the U.S. offshore wind market.
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Sinopec's Net Profit Declined on Higher Costs
China Petroleum & Chemical's first-quarter net profit fell 8.9% on year on rising raw material costs.
Net profit for the quarter ended March was 18.32 billion yuan ($2.53 billion), while revenue fell 0.2% on year to CNY789.97 billion, the Chinese state-owned oil-and-gas major, also known as Sinopec, said Sunday.
MARKET TALK:
Oil Falls on U.S. Inflation Concerns -- Market Talk
0804 GMT - Oil prices trade lower after the latest U.S. data reinforced prospects of higher-for-longer interest rates, but signs of a tightening physical market limit the downside. Brent is down 1% at $88.60 a barrel while WTI falls 0.5% to $83.47 a barrel. All eyes are now on the Fed's two-day meeting on Wednesday and the April jobs report on Friday. Meanwhile, the strength in oil timespreads--the premium of a front-month contract to the second month--suggests a deficit over the second quarter of the year, according to ING analysts. "The Brent June/July spread traded to a high of $1.34/bbl on Friday, after trading closer to a backwardation of $0.70/bbl at the start of the week," they say in a note. The outlook for the second half is instead less clear and depends on OPEC+'s output policy. (giulia.petroni@wsj.com)
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Metal Prices Are Mixed as Gold Slips on Easing Tensions -- Market Talk
0743 GMT - Metal prices are mixed, with gold futures slipping 0.2% to $2,342.5 a troy ounce but some base metals gaining. The precious metal has given away some of its gains on easing safe-haven demand as geopolitical tensions moderate and markets turn their attention to U.S. inflation. However, it remains up 4.7% on month and has risen nearly 16% over the last three months. Elsewhere, copper gains 0.6% to $10,017.5 a metric ton, having hit $10,033.5 in Friday's session--its highest price since the March 2022 record of $10,707.5 a ton. Existing copper market tightness is being exacerbated by fresh sanctions on Russian metals in the U.S. and U.K. exchanges banned delivery of new output from the country from April 12, a move intended to hit Russian finances. (joseph.hoppe@wsj.com)
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Iron Ore Lower Amid High Supply, Inventory Levels -- Market Talk
0255 GMT - Iron ore is lower in early Asian trade. Considering that the overall supply and inventory levels of iron ore are high, the fundamental situation of the steelmaking material is relatively weak, analysts at Huatai Futures write in a commentary. Still, they note that iron-ore demand is likely to be helped by improved production at steel plants. The most-traded iron-ore contract on the Dalian Commodity Exchange is down 0.3% at CNY876.0 a ton. (tracy.qu@wsj.com)
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Palm Oil Follows Soybean Oil Higher -- Market Talk
0240 GMT - Palm-oil prices are higher in Asian trading, driven by soybean oil strength last Friday on the Chicago Board of Trade. The two often trade in tandem as they are used in similar products. Bargain buying by India is also seen supporting prices, AmInvestment Bank says in a note. However, the technical outlook suggests that CPO futures are showing weakness, and traders are advised to sell if prices rebound, it adds. AmInvestment Bank pegs support for crude palm-oil futures at MYR3,830 and resistance at MYR3,965. The Bursa Malaysia Derivatives contract for July delivery is MYR10 higher at MYR3,906 a ton.(yingxian.wong@wsj.com)
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Copper Edges Up on Signs of Supply Tightness -- Market Talk
0142 GMT - Copper rises in early Asian trade on signs of tightening supplies. Even though the economic backdrop has improved in recent months, this year's rally in copper prices was triggered by closures of mining operations in Latin America, ANZ Research analysts say in a note. "The subsequent tightness in the concentrate market has seen processing fees fall close to zero," they add. The upside to copper prices in the short-term could be capped by macro drivers such as ongoing demand concerns in China and lingering uncertainty over U.S. monetary policy, ING analysts say in a note. The three-month LME copper contract is up 0.2% at $9,985.50 a ton.(amanda.lee@wsj.com)
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Gold Falls on Dimming Fed Rate Cuts Hopes -- Market Talk
0050 GMT - Gold prices are lower in early Asian trade as expectations of rate cuts by the U.S. Fed fade. "Sticky inflation has seen policymakers shift the debate from how many times they will cut rates to whether they should ease at all this year," ANZ Research analysts say in a research note. Investors will focus on the FOMC meeting later this week. Following the precious metal's recent rally, profit-taking has emerged, they say. However, investor demand for gold remains robust amid elevated geopolitical risks, they add. Spot gold is 0.2% lower at $2,333.51/oz.(sherry.qin@wsj.com)
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
04-29-24 0639ET
