BP Suspends Share Buyback Amid Overhaul -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 0.2% to $69.16 a barrel.

--European benchmark gas is down 4.3% to 32.09 euros a megawatt hour.

--Gold futures are down 0.3% to $5,061 a troy ounce.

--LME three-month copper futures are down 0.6% to $13,105 a metric ton.

TOP STORY:

BP Suspends Share Buyback Amid Overhaul

BP suspended its share-buyback program and said it would reduce spending this year, part of a broader plan by the British energy giant to overhaul its business.

The London-based company is in the early stages of a turnaround aimed at bringing the business back to its oil-and-gas roots after an ill-timed move into renewables that left it the least profitable of the major oil companies.

BP said Tuesday that the moves to scrap its quarterly share buyback and curb capital expenditure were aimed at shoring up the company's finances as it works to become a simpler, more profitable business.

OTHER STORIES:

U.S. Frackers Explore New Frontier: Shale Abroad

American shale producers are in a midlife crisis: They know their best days of growth are behind them. Yet it's too early to call it quits, with oil demand expected to keep growing for a while longer. Many have combined forces, and some are spending extra capital to squeeze the most out of the acreage they have left. More recently, they have started looking abroad for shale.

In January, shale pioneer Harold Hamm's Continental Resources made its second acquisition in Argentina's Vaca Muerta shale play. The company also signed a deal to develop shale fields in Turkey. Another of the industry's early movers, EOG Resources, last year got licenses to explore shale in the United Arab Emirates and Bahrain. These moves are notable because most pure-play U.S. producers have focused on drilling in their own backyard. In recent years only major oil companies such as Exxon Mobil and Chevron have maintained big footprints abroad.

--

Williams 4Q Profit Rises as New Projects Came Online in 2025

Williams' fourth-quarter profit rose, benefiting from pipeline transmission and offshore projects that came online throughout last year.

The energy infrastructure company on Tuesday posted a higher net income of $733 million, or 60 cents a share, compared with $485 million, or 40 cents a share, in the same quarter a year ago.

--

Pandora CEO Eyes Boost From Netflix's 'Bridgerton' Tie-Up as Sales Growth Loses Shine -- Interview

A TV collaboration could help Pandora get back on track amid humdrum sales trends, the company's new chief executive said.

The Danish jewelry giant has launched a new collection tied to the latest season of hit Netflix period drama "Bridgerton", aiming to jumpstart sales, add some brand fizz and lure shoppers, especially younger ones, back to its stores.

MARKET TALKS:

Soybeans in Brazil's Mato Grosso Region Show Quality Issues -- Market Talk

0921 ET - Soybeans harvested in the northern portion of the Brazilian state of Mato Grosso are exhibiting quality issues, says Michael Cordonnier of Soybean and Corn Advisor in a note. The culprit for the low-quality beans is too much rain, which is why crops there are battling mold issues. In some cases, farmers are harvesting their fields early in an effort to yield a crop before it's destroyed by mold, says Cordonnier. He adds that the soybean harvest in Mato Grosso is 39% complete, and unfortunately for farmers there, more rain is expected. CBOT soybeans rise 0.4% premarket, while corn is up 0.4% and wheat is unchanged. ([e-mail])

--

Grains Mostly Higher Ahead of WASDE Release -- Market Talk

0907 ET - CBOT corn and soybeans post gains overnight ahead of the release of the WASDE report at noon eastern time. How the agricultural market reacts to the report will be colored by two factor: whether President Trump's call for China to purchase 8 million more metric tons of U.S. soybeans is factored into the USDA's export outlook and what the agency has to say about Brazilian crop production. "Private buyers in China are likely to prefer the cheaper deliveries from Brazil that are currently coming onto the market," says Commerzbank in a note. "Last week's price increase seems exaggerated." ([e-mail])

--

U.S. Natural Gas Futures Steady in Early Trade -- Market Talk

0859 ET - U.S. natural gas futures are steady following two straight losing sessions. Temperatures are picking up across much of the country, keeping a lid on heating demand. Physical pricing is shrinking in most of the U.S., notes Eli Rubin of EBW Analytics. While demand could rise later in the week with a possible weekend snow storm in the Northeast, "springlike weather outside of the Northeast and the Presidents Day holiday highlight incremental short-term downside." Nymex gas for March delivery is up 0.6% at $3.156/mmBtu.([e-mail])

--

Palm Oil Falls on Concerns of Weak Demand -- Market Talk

1022 GMT - Palm oil fell after data from cargo surveyor AmSpec Agri Malaysia showed exports during the Feb. 1-10 period fell over 14% on month. Expectations of weakening demand over the coming weeks likely weighed on sentiment, pressuring CPO prices, says David Ng, a trader at Kuala Lumpur-based Iceberg X. He added that palm oil's price competitiveness against other vegetable oils are also eroding. Ng see prices supported above MYR4,050 and resistance at MYR4,300. The Bursa Malaysia Derivatives contract for April delivery fell MYR63 to MYR4,097 a ton. ([e-mail])

--

BP Doesn't Appear to Have Shareholder Interests at Heart, ACCR Says -- Market Talk

1150 GMT - BP doesn't appear to have shareholder interests at heart, the Australasian Centre for Corporate Responsibility's Nick Mazan writes. ACCR is an activist investor which is calling for BP to demonstrate that higher spending on oil-and-gas production will deliver value for shareholders. "Axing the share buyback programme could be a sign that BP doesn't have confidence in this weaker market or its operating assets," Mazan says. The ACCR is critical of BP's capital allocation across its upstream unit. BP's upstream business has been the source of 75% of disposal losses and impairments since 2020, the ACCR says, citing its own analysis. BP's shares fall 4.2% to 457.6 pence. ([e-mail])

--

LNG Market Seen Relatively Balanced in 2026 If Qatar Project Delayed -- Market Talk

1124 GMT - The global LNG market is expected to be relatively balanced in 2026 even if Qatar delays the start of a massive LNG project, according to DNB. QatarEnergy is postponing the startup of its North Field East LNG expansion project to year end, Bloomberg reports, citing unnamed sources. The delay would reduce estimates for capacity growth, DNB analysts say. "This is not dramatic in our view, but combined with an increased gas injection need over the summer, due to low gas inventory levels, we are seeing a relatively balanced LNG market in 2026," they say. ([e-mail])

--

Low-Carbon Demand Largely Driven by Government Mandates, Shell CEO Says -- Market Talk

1053 GMT - Demand for low-carbon energy is largely driven by compliance markets, where government mandates require adoption, rather than voluntary consumer markets, Shell Chief Executive Wael Sawan says. "In Europe, the concept of voluntary markets has not materialized in a way, I would admit, we had hoped it would materialize," he says at the International Energy Week in London. "So we have to pace ourselves to the demand that is emerging in the market." Shell believes net zero is achievable with supportive government policies. The company sees potential, for example, to transition existing LNG infrastructure to lower-carbon solutions--starting with bio-LNG and eventually moving to synthetic LNG--though progress depends on policy decisions and funding priorities. ([e-mail])

--

Shell Captures U.S. LNG Value Without Tying Up Significant Capital, CEO Says -- Market Talk

1032 GMT - Shell doesn't see the need to leverage its own capital in U.S. liquefied natural gas, citing abundant low-cost funding already available for infrastructure, Chief Executive Wael Sawan says. Instead, the company is one of the largest offtakers of U.S. LNG--meaning it buys large volumes under long-term contracts--with many customer contracts indexed to natural gas prices at Henry Hub, effectively managing price exposure. This approach allows Shell to capture attractive value in the LNG chain without tying up significant capital, Sawan says at International Energy Week in London. ([e-mail])

--

Copper Still Above $13,000 With Price Action Contained Ahead of Holiday in China -- Market Talk

0916 GMT - Copper prices slip in early trading but remain above $13,000 as China heads into the Lunar New Year holiday, reducing market liquidity. Futures on the London Metal Exchange are down 0.4% to $13,131.50 a metric ton. "Price action is likely to remain contained unless speculative appetite resurges or a macro headline disrupts sentiment, in which case thinner liquidity could amplify moves," analysts at Sucden Financial say. "We have also seen Chinese physical players offloading SHFE [Shanghai Futures Exchange] inventory, reflecting a desire to reduce exposure to post-holiday volatility rather than extend hedging into an uncertain macro backdrop." ([e-mail])

--

European Gas Prices Hold Below 35 Euros on Warmer Forecasts -- Market Talk

0857 GMT - European natural gas prices remain below 35 euros a megawatt-hour in early trading after falling sharply in the previous session. The benchmark TTF contract is down 0.5% to 33.67 euros. "Weather models point to warmer conditions across most of the continent in coming days," ANZ Research analysts say. "This eased concerns of supply tightness amid low gas storage levels." According to industry group Gas Infrastructure Europe, inventory levels across the European Union are below 37% of capacity. ([e-mail])

--

Gold Inches Lower As Investors Await U.S. Data -- Market Talk

(MORE TO FOLLOW) Dow Jones Newswires

02-10-26 1007ET