IEA Lifts Oil Demand Forecast But Warns Supply Surplus Persists -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil rises 0.1% to $65.02 a barrel.

--European benchmark gas is up 3.9% to 37.29 euros a megawatt-hour.

--Gold futures are up 2.3% to $4,876.90 a troy ounce.

--LME three-month copper futures are up 0.9% to $12,909 a metric ton.

TOP STORY:

IEA Lifts Oil Demand Forecast But Warns Supply Surplus Persists

The International Energy Agency raised its forecast for global oil-demand growth due to an improved economic outlook and lower crude prices, but warned supply is still expected to outpace consumption.

The Paris-based organization, which represents major oil-consuming nations, now expects demand to grow by 930,000 barrels a day this year from 860,000 barrels a day previously. That compares with demand growth of 850,000 barrels a day last year.

Global oil-supply growth was revised to 2.5 million barrels a day, from an earlier forecast of 2.4 million barrels a day and compared with last year's 3 million barrels a day. In December, supply fell by 350,000 barrels a day compared with the previous month.

OTHER STORIES:

Halliburton Profit Slips Despite Higher Revenue

Halliburton's fourth-quarter profit slipped despite an uptick in revenue, boosted by strength across the company's international business.

The Houston oil-services company on Wednesday posted a profit of $589 million, or 70 cents a share, compared with $615 million, also equivalent to 70 cents a share, a year earlier.

--

Geothermal Wildcatter Zanskar, Which Uses AI to Find Heat, Raises $115 Million

ESMERALDA COUNTY, Nevada-Geothermal company Zanskar has privately raised $115 million to find and develop overlooked geothermal fields such as one in Nevada, concealed beneath an arid expanse of high desert.

The land doesn't vent steam, emit fumaroles, or boast hot springs. In other words, it has none of the telltale signs that companies have typically relied on as they have scoured the West for heat to turn into electrons.

--

Offshore Wind Triumphed in Court, but Industry's Path in U.S. Remains Choppy

Three East Coast wind projects scored court victories over Trump administration attempts to shut them down last week, but government opposition to offshore turbines could hamper any industry plans for building new ones.

"It's not good for companies to have this level of very increased risk coming from the erratic policy environment," said Ben Backwell, chief executive of the Global Wind Energy Council, an industry group.

--

OpenAI to Cover Data-Center Power Costs Amid Mounting Pressure

OpenAI said it would pay higher electricity prices for the giant data centers it is building across the U.S., the tech industry's latest pledge to address fears about rising utility costs and community disruptions.

OpenAI's promise follows a similar commitment from its biggest investor, Microsoft, which drew praise from President Trump after rolling out a plan to make sure its data centers benefit local communities. A big part of the framework is covering any increase in power costs resulting from new data centers.

--

Yomiuri: Mitsubishi Corp. Aims for U.S. Shale Gas Project to Form 1st Part of Value Chain, CEO Says

Mitsubishi Corp. aims to "build a natural gas value chain that addresses global energy challenges," President and CEO Katsuya Nakanishi said when the Japanese trading house announced a plan to acquire all interests in entities collectively called Aethon, which are engaged in the development of shale gas and other resources in the United States.

The announcement was made at a press conference on Friday, and Nakanishi added that the project is "highly significant for Japan's energy security."

--

Beach Energy Ramps Up Waitsia Gas Plant; 2Q Output Falls 9%

SYDNEY--Beach Energy said it is ramping up production at the Waitsia Gas Plant in Western Australia, removing a key uncertainty that has weighed on its stock price for a prolonged period.

Beach said it achieved a peak production rate of 165 terajoules a day this month, and it aims to progress toward the plant's nameplate capacity through the end of March.

--

GreenFirst Secures C$30M Loan Through Canadian Softwood Lumber Program

GreenFirst Forest Products has secured a loan of 30 ?million Canadian dollars ($21.7 ?million) through a federal program aimed at supporting Canada's lumber industry.

The Canadian lumber and forest-products company on Wednesday said it has agreed to the term loan under the Softwood Lumber Program offered by the government of Canada.

--

Barry Callebaut Shares Climb After Former Unilever Chief Named as New CEO

Barry Callebaut shares jumped after the Swiss chocolatier named former Unilever Chief Executive Hein Schumacher as its new CEO, succeeding current chief Peter Feld.

Shares in Barry Callebaut climbed as much as 7.9% in early morning European trading Wednesday, reaching 1,345 Swiss francs. The stock then pared back slightly, up 5% to 1,309 Swiss francs.

MARKET TALKS:

DAVOS: Energy Debate Has Moved From Sustainability to Affordability, TotalEnergies CEO Says -- Market Talk

1333 GMT - The debate in the energy industry has shifted from sustainability to affordability, TotalEnergies Chairman and CEO Patrick Pouyanne says in Davos, Switzerland. Pouyanne says oil is the cheapest fuel, and that the concept of "green premium" doesn't exist in practice. "Nobody wants to pay more," Pouyanne says in a panel at the World Economic Forum in Davos. "Nobody is ready to pay a premium to be clean." ([e-mail])

--

Grains Higher as U.S. Tone Regarding Greenland Seems to Soften -- Market Talk

0833 ET - CBOT grain futures are higher premarket, ahead of President Trump's speech in Davos. Tariff threats against countries that stand in the way of the U.S. annexing Greenland moved grain futures Tuesday, but this morning WSJ reports that Trump's tone around his desire to control Greenland has softened. Although the President hasn't taken aggressive economic or military consequences off the table, he said Tuesday that the U.S. and NATO would "work something out where NATO is going to be very happy, and where we're going to be very happy." CBOT corn is up 0.8%, soybeans climb 1.1%, and wheat is up 0.9%. ([e-mail])

--

Cold Blast Across U.S. Lifts Diesel Futures -- Market Talk

0819 ET - The extreme cold blast across the U.S. and lifting natural gas prices is also pushing diesel futures up. The Northeast is the region of the U.S. that experiences diesel price pressure from increased heating oil demand, says Matt Muenster of transport technology firm Breakthrough. Cold weather last year led to a surge in heating oil demand from the beginning of 2025 through February. "This year, we are picking up that same demand-driven price pressure in mid-January even though U.S. diesel inventory levels are higher than a year ago," he says. Price pressure could again continue into February as refinery utilization declines, he adds. Nymex diesel futures are up 2.8% at $2.4045 a gallon. WTI crude edges up 0.3% to $60.55 a barrel. ([e-mail])

--

U.S. Natural Gas Futures Extend Weather-Driven Rally -- Market Talk

0802 ET - U.S. natural gas futures are again sharply higher after overnight forecasts added to the extreme cold that entered the outlook over the long weekend. The "extreme bullish shift catalyzed an enormous short squeeze at the front of the curve," Eli Rubin of EBW Analytics says in a note. The reset will likely settle out over the next seven to 10 days, "but physical market fireworks into the weekend may drive upside first," he adds. After several weeks of below-average storage draws, next week could be the coldest EIA storage week since 2018, he says, "with early projections suggesting the second-largest weekly storage draw in history at 342 Bcf." The Nymex front month is up 20% at $4.696/mmBtu following yesterday's 26% rise. ([e-mail])

--

DAVOS: Commodity Currencies Rally Along With Gold Prices -- Market Talk

1321 GMT - The Australian, New Zealand and Canadian dollars rally along with the South African rand as gold prices rise on demand for safe havens amid renewed concerns over a trade war. President Trump has threatened tariffs against several European nations as he seeks to acquire Greenland. He is due to speak at the World Economic Forum in Davos at 1330 GMT.The Australian dollar rises to a 15-month high of $0.6768, LSEG data show. The New Zealand dollar rises to a four-month high of $0.5863. The U.S. dollar falls to a two-week low of 16.2996 South African rand and hits a two-week low of 1.3790 Canadian dollars. ([e-mail])

--

DAVOS: Complex U.S. Policy Environment Softened Demand for Wind Energy Products, GE Vernova CEO Says -- Market Talk

1254 GMT - A complex policy environment around wind energy has helped make demand for wind products considerably softer than for the rest of U.S. power-equipment maker GE Vernova's portfolio, Chief Executive Scott Strazik tells Bloomberg in an interview at the World Economic Forum in Davos, Switzerland. But such changes in order book demand often shift around energy policies that can change from one U.S. administration to another, he says. Strazik says that in the long term, a diverse set of technologies is needed to meet power equipment demand. A polarized world boosts the need for "more local manufacturing capability," he adds. ([e-mail])

--

DAVOS: Gold Futures Rise as Market Awaits Trump's Speech -- Market Talk

(MORE TO FOLLOW) Dow Jones Newswires

01-21-26 0912ET