Abu Dhabi's Adnoc to Spend $55 Billion in Domestic Manufacturing Push -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 2% to $110.38 a barrel.

--European benchmark gas is up 2.5% to 46.91 euros a megawatt-hour.

--Gold futures are down 1.5% to $4,573.40 a troy ounce.

TOP STORY:

Abu Dhabi's Adnoc to Spend $55 Billion in Domestic Manufacturing Push

Abu Dhabi's Adnoc said it will accelerate a plan to boost the United Arab Emirates' domestic manufacturing capabilities with $55 billion of spending across its operations.

Adnoc, or Abu Dhabi National Oil Co., said the spending will be on projects across its upstream and downstream operations through to 2028 and reinforces its five-year capital expenditure plan that was approved last year.

OTHER STORIES:

Hubbell to Buy NSI Industries for $3 Billion

Hubbell agreed to acquire NSI Industries for $3 billion, aiming to increase its offerings of critical infrastructure to its electrical and utility customers.

NSI, a portfolio company of Sentinel Capital Partners, provides electrical fittings, connectors, components and wire-management products.

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An Aluminum Crisis Is Roiling the Auto Industry

For Texas Ford dealer Sam Pack, the F-150 and Super Duty trucks aren't just important vehicles-he says they are the "foundation" of his business. That is why Pack, who owns four stores in the Dallas-Fort Worth area, is a little nervous right now.

Pack's truck supply is limited because of a shortage of aluminum that is roiling the entire auto industry. He has about 42 days' worth of F-150 inventory, down from the 60 days he normally maintains. "We'd love to have more," he said.

MARKET TALKS:

Oil Extends Gains on Protracted Hormuz Closure, Rising Tensions

1116 GMT - Oil prices extend gains in afternoon trading, with Brent crude for July delivery up 3.7% to $112.14 a barrel, while WTI futures for June delivery rise 3.6% to $105.62 a barrel. "Crude futures are waking up to protracted Strait of Hormuz closure," according to Sparta Commodities. "The chances for a strong rebound in transits still seem remote. Chances for conflict escalation are growing." Meanwhile, the U.S. Central Command denied claims that a U.S. warship was hit by Iran. "The Iranian state media claims that Iran's Islamic Revolutionary Guard Corps hit a U.S. warship with two missiles," Centcom says in a post on X. "No U.S. Navy ships have been struck. U.S. forces are supporting Project Freedom and enforcing the naval blockade on Iranian ports." Project Freedom is a new U.S. initiative to guide commercial ships out of the Strait of Hormuz.([e-mail])

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Palm Oil Rises, Tracks Gains in Crude, Soybean Prices -- Market Talk

1018 GMT - Palm oil closed higher, tracking gains in the crude oil and soybean oil market, according to David Ng, a trader at Kuala Lumpur-based Iceberg X. Prices are supported by expectations of another month of lower stocks, Ng says. He sees prices of palm oil supported above 4,550 ringgit a ton and faces resistance at 4,680 ringgit a ton. The Bursa Malaysia Derivatives contract for July delivery rose 50 ringgit to 4,620 ringgit a ton. ([e-mail])

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Oil Slips After Trump Says U.S. Will Assist Stranded Ships in Hormuz

0643 GMT - Oil prices edge lower after President Trump said the U.S. would start guiding commercial vessels out of the Strait of Hormuz in an effort to unblock the vital shipping lane. The plan, however, doesn't currently involve U.S. Navy warships escorting vessels through the strait. "The market does not seem convinced by the plan," analysts at ING say. "Even if this allows vessels to leave the Persian Gulf, we're likely to see little inbound traffic." Meanwhile, U.S.-Iran negotiations have yet to yield a meaningful breakthrough, heightening concerns that the conflict could drag on if the two sides fail to reach a compromise on Hormuz and Iran's nuclear program. In early European trading, Brent crude for July delivery is down 0.5% to $107.64 a barrel, while WTI futures for June fall 0.6% to $101.28 a barrel. ([e-mail])

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Aluminium Market Exposed to Significant Supply Deficit Even if U.S.-Iran Conflict Ends -- Market Talk

0759 GMT - The aluminium market is expected to face significant supply shortages for the remainder of the year even if U.S.-Iran hostilities end, analysts at BMI say. The market is expected to remain tight due to a slow recovery in Gulf smelting capacity, particularly in the U.A.E., Bahrain and Qatar, where operations have been disrupted or damaged. This adds to existing global supply constraints, including China's production cap. "Aluminium exports from the Middle East are unlikely to immediately return to normal levels even if the Strait of Hormuz is re-opened, leaving the global aluminium market exposed to a meaningful supply deficit in 2026," the analysts say. BMI forecasts prices at around $3,500 a metric ton in the near term, with risks skewed to the upside. ([e-mail])

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Brent Could Climb Toward $200 in Worst-Case Iran Conflict Scenario, ANZ Says

0723 GMT - Brent crude could surge toward $200 a barrel if the U.S. and Iran fail to reach a deal and the Strait of Hormuz remains effectively closed through 2027, analysts at ANZ say. In such a scenario, global oil supply would fall by around 15 million-20 million barrels a day and most of the International Energy Agency's coordinated stockpile releases would already be exhausted. Meanwhile, demand destruction would intensify and damage to key infrastructure in the Persian Gulf would further delay recovery, ANZ says. This would keep prices elevated well above $100 a barrel for most of 2027, according to the firm. ([e-mail])

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Oil Supply Disruptions to Persist Even if Hormuz Reopens in June, ANZ Says

0704 GMT - The oil supply crunch could begin to ease in the second half of the year if the Strait of Hormuz reopens in June. However, some permanent loss of capacity is likely to keep disruptions in place through year-end and into 2027, according to ANZ. "The ongoing threat of a sudden closure of the strait would keep a geopolitical risk premium embedded in prices, which would keep Brent crude above $90 a barrel for the remainder of 2026," analysts at the firm say. Brent is then expected to ease to around $80-$85 a barrel in 2027 as the market gradually rebalances. ([e-mail])

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Gold Falls in Thin Trade as U.S.-Iran Uncertainty Clouds Rate Outlook -- Market Talk

0651 GMT - Gold prices fall in thin trading, as elevated oil prices and uncertainty over the future of U.S.-Iran peace talks clouds the outlook for monetary policy. "High energy prices continue to raise the chances of interest rates remaining high for the foreseeable future," analysts at ANZ Research say. New York futures are down 1% to $4,597.70 a troy ounce. Markets in China, Japan and the U.K. are closed Monday for public holidays, damping liquidity. Meanwhile, silver futures are down 1.4% to $75.33 an ounce and platinum falls 0.5% to $2,002.50 an ounce. ([e-mail])

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Brent Crude Oil Price Likely to Rise Further Than Previously Thought

0110 GMT - Brent crude oil price is likely to rise further than previously thought in 2026, says Amarpreet Singh of Barclays' Commodities Research in a research report. "Flows through the Strait of Hormuz remain at a trickle, inventory draws are accelerating and last year's builds in the U.S., despite a somewhat longer transmission lag, have already been largely offset," the analyst says. The longer the Strait's disruption lasts, the "bigger and sticker" the oil-price shock, Singh says. Barclays raises its Brent crude-oil-price forecast for 2026 to $100 per barrel from $85 a barrel. It also "sees risks skewed higher depending on how much longer it takes to resolve the impasse." Front-month Brent crude oil futures are 0.2% lower at $107.92 a barrel. ([e-mail])

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(END) Dow Jones Newswires

05-04-26 0945ET