IEA Will Launch Largest-Ever Oil Release From -2-

1223 GMT - OPEC+ crude output surged in February but is expected to plunge in March as the Iran war severely disrupts flows through the Strait of Hormuz, says Amena Bakr from Kpler. Middle-Eastern outages are currently estimated at around 6? million barrels a day and could reach 9.5 million by the end of the month, according to the data provider. Iraq and Kuwait have seen sharp declines, while Saudi Arabia and the UAE are using alternate pipeline routes and drawing on storage to maintain exports. OPEC+ is also expected to boost production this summer to offset lost supply and meet demand in the Gulf. "When it comes to prices, contrary to common belief, leading members of the OPEC+ group do not favor prices breaking into the three-digit zone and price volatility, as both could destroy demand," Bakr says. ([e-mail])

--

Palm Oil Gains After February Output Drop -- Market Talk

1016 GMT - Palm oil ended higher after the Malaysian palm oil board reported a sharp decline in February production. AmInvestment Bank says the drop likely reflects fewer working days last month. Production may continue easing during Ramadan and Hari Raya before recovering in May. The Bursa Malaysia Derivatives contract for May delivery rises 71 ringgit to 4,499 ringgit a ton. ([e-mail])

--

European Energy Stocks Trade Higher as Oil Prices Rise -- Market Talk

0941 GMT - European energy stocks rise as oil prices climb. The Wall Street Journal reported the International Energy Agency has proposed the largest release of oil reserves in its history. The IEA is considering a release of 400 million barrels of oil, which would more than double its biggest prior release, according to officials familiar with the matter. Brent crude trades up 4.1% to $91.49 a barrel while WTI is up 3.5% to $82.24 a barrel. In London, BP rises 0.55% while Shell ticks up 0.14%. France's TotalEnergies is up 0.4%. Spain's Repsol is 0.8% higher and Norway's Equinor rises 1%. ([e-mail])

--

Shifting Energy Supply Seen as Most Durable Solution to Energy Shock for Asia -- Market Talk

0917 GMT - Diversifying energy supply away from the Middle East and investing in domestic production, storage and renewables is likely the most sustainable policy response to the current energy price shock, Capital Economics says in a note. Senior Asia economist Gareth Leather says inflation-suppressing measures, such as subsidies in Indonesia or price caps in Korea and Taiwan, provide limited incentives for energy conservation and are fiscally costly. Countries with weaker fiscal positions may instead pass higher costs to consumers, as seen in Pakistan and Sri Lanka, though this could lift inflation, weigh on growth and heighten risks of social unrest. Leather also notes that some governments are trying to curb demand directly, though rationing energy rather than relying on price signals would allocate supply inefficiently and disrupt economic activity. ([e-mail])

--

Aluminum Prices Rise on Supply Worries, LME Warehouse Withdrawals -- Market Talk

0847 GMT - Aluminum prices climb back above $3,400, boosted by supply concerns and withdrawals from London Metal Exchange warehouses. "We see this shift in warehouse dynamics as a sign that the physical market is becoming more cautious," analysts at Sucden Financial say. The Middle East conflict is putting pressure on supply from the Gulf, with withdrawals from LME warehouses--typically made when buyers take metal for physical consumption or export--indicating the market is concerned that aluminum shipments or deliveries might be delayed or reduced. In early trading, LME futures rise 0.1% to $3,404 a metric ton. ([e-mail])

--

Copper Slips as Funds Reduce Bullish Bets -- Market Talk

0813 GMT - Copper prices slip in early trading, with futures on the London Metal Exchange down 0.7% to $12,999 a metric ton. The base metal maintains a strong inverse relationship with oil prices, according to analysts at Sucden Financial, with recent data showing that investment funds have sharply reduced their bullish bets. "We expect copper to remain highly sensitive to energy markets," the analysts say. "If oil volatility persists, the metal could retest support near $13,000 a ton." ([e-mail])

--

Gold Falls as Middle East Conflict Clouds Outlook -- Market Talk

0800 GMT - Gold prices fall in early trading but remain above the $5,200 mark as investors grapple with mixed messages over the Middle East conflict. Bullion gained in the previous session, boosted by a softer dollar and falling oil prices that eased inflation concerns. However, "the developments continue to obscure the outlook for interest rate cuts in the U.S.," analysts at ANZ say. "This has seen investors withdraw increasing amounts of gold from ETFs." Traders now await the release of U.S. inflation data later this week for more cues on the interest-rate outlook. Gold futures in New York fall 0.7% to $5,204.40 a troy ounce. ([e-mail])

--

European Gas Rises as Qatar LNG Halt Ripples Through Market -- Market Talk

0743 GMT - European natural-gas prices rise after Tuesday's pullback, as Qatar's LNG halt is expected to have far-reaching effects on global markets over the coming months. In early trading, the benchmark Dutch TTF front-month contract rises 3.2% to 48.91 euros a megawatt-hour. Prices retreated in the previous session after President Trump said the war in Iran would end soon. However, several Asian countries are already tapping the spot market to secure fuel, analysts at ANZ say. Meanwhile, tenders for delivery in March have remained unawarded, indicating a shortage of immediately available fuel. "This is raising concerns in Southeast Asia where hotter weather in the months ahead is expected to raise power demand," the analysts say. "The region will also need to compete with European buyers looking to refill storage following their heating season." ([e-mail])

--

Oil Rises as Market Weighs Mixed Messages on Hormuz, IEA Proposes Record Reserves Release -- Market Talk

0736 GMT - Oil prices rise after tumbling in the previous session following a Wall Street Journal report saying that the International Energy Agency proposed a record release of oil reserves to bring down prices. In early trading, Brent crude rises 0.7% to $88.45 a barrel, while WTI is up 1.5% to $80.65 a barrel. Officials familiar with the matter said the release would exceed the 182 million barrels of oil that IEA member countries put onto the market in two rounds when Russia invaded Ukraine in 2022. Oil fell sharply on Tuesday amid shifting comments from the Trump administration about shipping through the Strait of Hormuz. President Trump warned Iran against mining the waterway, while Energy Secretary Chris Wright posted, and later deleted, a message claiming the U.S. Navy had escorted an oil tanker through the strait. ([e-mail])

--

Iron Ore Gains on Tightening Spot Liquidity Amid Mideast Tensions -- Market Talk

0237 GMT - Iron ore is higher in early Asian trade. Prices are supported by tightening spot liquidity amid tensions in the Middle East, according to Nanhua Futures analysts in a research note. Fundamentals show seasonal weakness in both supply and demand, they say. While near-term price has support, the upside is capped by high supply and weak demand, they note. The most-traded iron-ore contract on the Dalian Commodity Exchange is 0.8% higher at CNY787.0 a ton. ([e-mail])

Write to Barcelona Editors at [e-mail]

(END) Dow Jones Newswires

03-11-26 1128ET