BP Agrees to Sell Majority of Castrol Lubricants Unit to Stonepeak -- Commodities Roundup

MARKET MOVEMENTS:

-- Brent crude oil is up 0.2% to $61.97 a barrel.

-- European benchmark gas is up 1% to 28.01 euros a megawatt-hour.

-- Gold futures are up 0.35% to $4,521.60 a troy ounce.

-- LME three-month copper futures are up 1.4% to $12,225.5 a metric ton.

TOP STORY:

BP Agrees to Sell Majority of Castrol Lubricants Unit to Stonepeak

BP said it has agreed to sell a majority stake in its Castrol lubricants business to investment firm Stonepeak, a deal that values the entire division at $8 billion.

Under the deal, BP is set to receive roughly $6 billion in proceeds from the sale of a 65% stake to Stonepeak.

The companies announced the deal early Wednesday after The Wall Street Journal reported that an agreement was near.

OTHER STORIES:

Christmas in Ukraine Approaches With Power Grid in Crisis

For four straight days this month, Oleksandra Mazur had no light, no heat and no running water. Russian strikes had left her Odesa neighborhood completely without electricity, knocking out other basic services in her apartment building.

"It's much worse than last year," said Mazur, 23. "We're not in any mood to celebrate. We don't know what Christmas and New Year will look like-whether we'll be able to cook a meal."

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Small Nebraska Town Is Reeling From Exit of Meatpacking Giant Tyson

LEXINGTON, Neb.-Wet concrete slid down the cement truck's chute, marking Ramon Prado's latest construction project in his adopted hometown. The 47-year-old entrepreneur says he has built and sold a dozen houses, and rents out several he owns. Now he is building four apartments on a quiet street near a cornfield.

Prado usually has a wait list for his rentals. But watching a crew smooth the apartments' parking lot, he faces new uncertainty: Will he find takers this time?

MARKET TALKS:

Gold Is Attractive for Diversification -- Market Talk

1138 GMT - Gold looks attractive as it acts as a portfolio diversifier amid the unpredictable environment in the U.S., Patrick Brenner from Schroders says in a note. The U.S. faces "policy uncertainty fiscal fragility and growing investor doubts over the long-term role of Treasuries and the U.S. dollar," he says. Gold is the preferred diversifier in these conditions, Brenner says. ([e-mail])

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BP's Castrol Business Sale Reinforces Strategy Reset -- Market Talk

1045 GMT - The sale of BP's stake in its Castrol lubricants business is a positive step forward, with the price tag broadly in line with expectations, Quilter Cheviot analyst Maurizio Carulli writes. The oil major is selling 65% of the business, rather than the 100% hoped for, retaining the rest under a joint venture with Stonepeak. Still, BP has an option to sell its remaining stake in the joint venture after a two-year lockup period. The deal reinforces BP's strategy reset, which was started by former CEO Murray Auchincloss and expected to be accelerated by incoming CEO Meg O'Neill, Carulli writes. Shares are up 0.05% at 427.70 pence. ([e-mail].)

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Palm Oil Closes Slightly Lower Ahead of Christmas Break -- Market Talk

1015 GMT - Palm oil closed nearly flat, with the Bursa Malaysia Derivatives contract for March delivery ending one ringgit lower at 4,035 ringgit a ton. While stronger overnight rival oils supported palm oil futures, gains were likely offset by a stronger ringgit and abundant tropical oil supply ahead of the holiday break, according to Kenanga Futures analysts in a note. They expect the contract to trade largely rangebound, pegging support and resistance levels for the March futures contract at 4,000 ringgit a ton and 4,080 ringgit a ton, respectively. ([e-mail])

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Gold, Silver Price Corrections May Be Healthy in Near Term -- Market Talk

0933 GMT - Corrections in gold and silver prices would be healthy in the near term, Swissquote Bank senior analyst Ipek Ozkardeskaya says in commentary. The precious metals have rallied to fresh all-time highs but have risen "too far, too fast," she says. The rising gold volatility index suggests prices could pull back even as upward momentum persists, she notes. She expects any selloff to hit silver harder than gold, as the gold-silver ratio--historically in the 60-80 range--is falling rapidly toward the lower end. "Assuming that the ratio remains within its historical range, silver may either underperform gold on the way up or correct more sharply on the way down," she says. Spot gold rises 0.1% to $4489.49 a troy ounce, while spot silver adds 0.5% to $71.81 an ounce. ([e-mail])

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Gold Prices Continue Upward Trend Amid Rate-Cut Hopes, Geopolitical Uncertainty -- Market Talk

0905 GMT - Gold prices are up again, having hit a record high in the previous session, as investors continued to favor precious metals amid rate-cut expectations and geopolitical uncertainty. Futures in New York rise 0.2% to $4,516.16 an ounce and are up 71% over the year to date. Prices have risen 3.3% over the past three sessions. Gold prices have hit record highs more than 50 times this year, Swissquote senior analyst Ipek Ozkardeskaya writes, adding that the forces pushing prices higher remain in place. "In theory, the medium- to long-term outlook remains positive," she says. ([e-mail])

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Oil Prices Continue to Climb as Venezuela Tensions Rise -- Market Talk

0845 GMT - Oil prices continue rising along with tensions over Venezuela, adding to supply-disruption fears and marking the largest five-day gain since Oct. 27 and the longest winning streak since March 27. President Trump ordered a blockade of oil tankers going in and out of the country and declared that the airspace around Venezuela should be considered closed. Brent crude rose 0.4% to $62.14 a barrel, having risen 5.87% over the past five sessions. WTI crude gained 0.6% to $58.71 a barrel. ([e-mail])

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China Could Mark Weakest Steel Production This Year Since 2018 -- Market Talk

0840 GMT - China's steel production in 2025 could be the lowest since 2018, Citi analysts say in a research note. They say most of the production weakness in 2H has been driven by weak steel margins rather than government-mandated cuts. Investors have mixed views on the likelihood of a new round of government-imposed capacity reductions, the analysts note. In November, China's steel output fell 11%, while ex-China production rose 2.6%. India is on track to produce 164 million tons of steel in 2025, leading global growth, they say. Meanwhile, Vietnam has become Asia's fifth-largest steel producer by end-November, up from virtually no steel industry 15 years ago, they add. ([e-mail])

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Iron Ore Lower as Shipments Remain High -- Market Talk

0249 GMT - Iron ore is lower in early Asian trading. Both upside and downside forces are present for iron ore, and prices are expected to trade within a range, according to Nanhua Futures analysts in a research note. Price is facing pressure as shipments remain at a high level, the analysts say. However, demand may be supported by low steel mill inventories, they note. The most-traded iron-ore contract on the Dalian Commodity Exchange is down 0.3% at CNY775.0/ton. ([e-mail])

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Palm Oil Falls on Softer Soybean Oil -- Market Talk

0242 GMT - Palm oil prices fell in early Asian trading, weighed by softer soybean oil overnight on the Chicago Board of Trade. Technical analysis suggests crude palm oil futures appears positive, however, upside momentum may be gradual as prices face resistance near the MYR4,037/ton-MYR4,064/ton zone, pointing to a sideways-to-higher trading bias in the near term, AmInvestment Bank says in a note. It sees support for CPO futures at 3,995 ringgit a ton and resistance at 4,037 ringgit a ton. The Bursa Malaysia Derivatives contract for March delivery is 4 ringgit lower at 4,032 ringgit a ton. ([e-mail])

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Base Metals Rise, Supported by Weaker Dollar -- Market Talk

0205 GMT - Base metals are broadly higher in early Asian trade. Prices are supported by continued upside momentum and a weaker dollar during thin year-end liquidity, Sucden Financial says in a note. The recent rally in nickel is likely driven by positioning and liquidity, though any pullbacks may be shallow as trading thins in the year-end period, it adds. The three-month LME nickel is 1.05% higher at $15,900.00/ton, while that of copper and aluminum are each 0.5% higher. ([e-mail])

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Oil Slips; Prices Likely to Remain Volatile -- Market Talk

0145 GMT - Oil slips in early Asian trade. Prices are likely to remain volatile, with moves dominated by geopolitical developments, Konstantinos Chrysikos at Kudotrade writes in a note. The main challenge for oil prices is the 2026 surplus narrative, with the International Energy Agency December outlook pointing toward supply growth exceeding demand growth, leaving a large projected supply, Chrysikos says. This could keep the market under constant pressure, Chrysikos adds. Front-month WTI crude oil futures are down 0.05% at $58.35/bbl; front-month Brent crude oil futures are 0.05% lower at $62.36/bbl. ([e-mail])

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Gold Climbs Above $4,500/oz for First Time Amid Rising Geopolitical Tensions -- Market Talk

2354 GMT - Gold climbs above the $4,500/oz level for the first time amid rising geopolitical tensions. The U.S. has deployed large numbers of special-operations aircraft, troops, and equipment to the Caribbean area this week, providing Washington with additional options for possible military action in Venezuela, the WSJ reported, citing U.S. officials and open-source flight-tracking data. Tensions between the U.S. and Venezuela have escalated further, Exness' Li Xing says in an email. Also, frictions between China and Japan remain elevated and risks in Eastern Europe continue to increase, the financial markets strategist adds. Spot gold is 0.5% higher at $4,506.86/oz after earlier touching a record high of $4,508.73/oz, ICE data show. ([e-mail])

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(END) Dow Jones Newswires

12-24-25 0811ET