Transocean to Acquire Valaris in $5.8 Billion Deal -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 0.8% to $68.60 a barrel.

--European benchmark gas is down 6.8% to 33.26 euros a megawatt hour.

--Gold futures are up 1.6% to $5,059.40 a troy ounce.

--LME three-month copper futures are up 0.5% to $13,123.50 a metric ton.

TOP STORY:

Transocean to Acquire Valaris in $5.8 Billion Deal

Transocean agreed to acquire fellow offshore drilling services company Valaris in an all-stock deal worth $5.8 billion.

The companies said the deal will expand their reach and customer access in the world's most attractive offshore drilling basins. The combined company will own 73 rigs.

OTHER STORIES:

Energy Trader Vitol Delays Peak Oil Demand Forecast to Mid-2030s

Energy trader Vitol pushed back its forecast for peak global oil demand, pointing to a slower adoption of electric vehicles in the U.S. and certain parts of Asia.

In a report Monday, the company said demand is now expected to peak at around 112 million barrels a day in the mid-2030s, later than its previous projection of the early 2030s. By 2040, global oil consumption is expected to be roughly 5 million barrels a day higher than today.

--

Adnoc Gas Reports Record Profit Despite Fall in Prices

Adnoc Gas reported record full-year profit despite a fall in prices as its domestic gas unit delivered double-digit earnings growth.

The Abu Dhabi-owned gas company said Monday that net profit for 2025 rose 3% on year to $5.17 billion. Earnings rose despite a 14% fall in average Brent crude oil prices.

--

Cleveland-Cliffs 4Q Revenue Ticks Down Amid Weak Automotive Production

Cleveland-Cliffs reported lower fourth-quarter revenue and said its 2025 was weighed down by weak production from the automotive industry.

The steel company reported a narrowed net loss of $235 million, or 44 cents a share, compared with a loss of $434 million, or 92 cents a share, the year prior.

--

Neara Raises More Than $60 Million as Data Centers Pressure Power Grids

Neara, an Australian startup that makes digital models of power networks, has raised more than $60 million to accelerate its expansion as rapid growth in data centers and renewable energy stretch aging electricity grids globally.

The Sydney-based company secured about 90 million Australian dollars, equivalent to about $63 million, in a Series D funding round led by Menlo Park, Calif.-based TCV.

MARKET TALKS:

Oil Futures Lower With Market Watching U.S.-Iran -- Market Talk

0940 ET - Oil futures are lower with the market focused on further U.S.-Iran talks following indirect discussions held last week in Oman. "Geopolitical premiums are steadily deflating, but there will be no certainty short-term on the fate of Iran until such time as a framework deal is said to have emerged," Neil Crosby of Sparta Commodities says in a note. The market is also looking for clarity on Indian purchases of Russian crude, he adds. "We still have too few firm statements from the Indian side stating there will be a top-down order to cut purchases, though it does seem from flows data and various statements that the Russia-India trade is coming under greater pressure." WTI is off 0.4% at $63.31 a barrel, and Brent is down 0.3% at $67.85.([e-mail])

--

USDA Announces New Flash Sale of Soybeans to China -- Market Talk

0929 ET - The USDA says in a notice that 264,000 metric tons of soybeans were sold to China for delivery in the 2025/26 marketing year. The sale comes after President Trump's post on Truth Social last week pushing for China to purchase an additional 8 million metric tons of U.S. soybeans for this marketing year, on top of the 12 million tons agreed to when Trump and Chinese president Xi Jinping met in South Korea in October. CBOT soybean futures are down 0.1% in pre-market trade, while corn falls 0.3% and wheat is unchanged. ([e-mail])

--

U.S. Natural Gas Retreats on Milder Weather Outlook -- Market Talk

0854 ET - U.S. natural gas futures start the week lower with weather-driven demand easing and production practically back at pre-winter storm levels. The recent swing in storage to a deficit against the five-year average, and expectations the deficit will increase with this week's report, leaves the market more sensitive to another late-winter cold spell, Ritterbusch and Associates says in a note. But by March, "the cold weather factor tends to subside with the rollover to the April contract as prompt month." Nymex natural gas is off 8.2% at $3.141/mmBtu.([e-mail])

--

European Gas Prices Fall Despite Low Storage Levels -- Market Talk

1143 GMT - European natural-gas prices drop despite low storage levels, with the benchmark Dutch TTF contract down 7.7% to 32.94 euros a megawatt-hour. According to industry group Gas Infrastructure Europe, inventories across the EU are at around 37% of capacity, well below the five-year average. Prices had climbed above 40 euros at the end of last month as colder temperatures raised expectations for higher heating demand and a massive winter storm in the U.S. threatened LNG exports. Traders are also watching U.S.-Iran talks closely, as any disruptions to energy flows could push prices higher. Meanwhile, U.S. futures on the New York Mercantile Exchange fall 7.1% to $3.183 per million British thermal unit. ([e-mail])

--

Copper Edges Lower But Remains Above $13,000 -- Market Talk

1117 GMT - Copper prices slip in afternoon trading, though futures on the London Metal Exchange remain above the $13,000 mark. "Many copper plants are scheduled to take longer breaks from production over the coming Lunar New Year holiday due to recent volatility," analysts at ANZ Research say. Meanwhile, "exchange stockpiles in London, New York and Shanghai all recorded sharp rises." Worries, however, were partly eased by China's State Grid boosting investment in ultrahigh voltage grids and pumped storage power stations--a move expected to boost copper demand. LME futures trade 0.3% lower at $13,018 a metric ton. ([e-mail])

--

Palm Oil Rises; Prices Likely to See Further Upside -- Market Talk

1007 GMT - Palm oil closed higher, with the Bursa Malaysia Derivatives contract for April delivery up 8 ringgit at 4,162 ringgit a ton. Crude palm oil prices will likely continue rising to hit 4,200 ringgit a ton this week, with demand rising ahead of the Lunar New Year and amid concerns over weak production in Malaysia, Raghavendra Divekar of Nomura said in a note. However, if prices of other edible oils decline or if exports fall sharply, CPO prices could decline to about 4,050 ringgit a ton, Divekar said. ([e-mail])

--

Gold Back Above $5,000 Ahead of Key U.S. Data This Week -- Market Talk

0837 GMT - Gold prices rise back above the $5,000 mark on a softer dollar and as traders await the release of key U.S. data later this week. In early trading, futures in New York are up 1.4% to $5,050.80 a troy ounce, while the U.S. dollar index falls 0.2% to 97.41. "Investors reasserted their long-term bullish views on the precious metal," analysts at ANZ say. Large institutional investors remain bullish on bullion despite the recent selloff, a view echoed by the People's Bank of China, which extended its gold-buying streak to 15 months in January, according to the research firm. Traders now await U.S. nonfarm payrolls data and consumer-price index figures for more cues on the path of interest-rate cuts. Meanwhile, silver climbs 6% to $81.55 an ounce. ([e-mail])

--

European Energy Stocks Fall as Oil Prices Weaken -- Market Talk

0835 GMT - European oil stocks trade down in opening trade as oil prices slip. Brent crude falls 1.1% to $67.28 a barrel, while WTI drops 1% to $62.26 a barrel. The outlook for oil remains challenging. Demand growth is stunted and supply remains plentiful. On Friday, Saudi Arabia cut the price of its crude for Asian buyers for the fourth consecutive month. In London, BP shares fall 0.5% and Shell drops 0.1%. Shares in France's TotalEnergies and Italy's Eni both fall 0.5%. Spain's Repsol drops 1%. ([e-mail])

--

Oil Slips With Focus on U.S.-Iran Talks -- Market Talk

0830 GMT - Oil prices fall 1% in early trading as investors closely monitor developments in U.S.-Iran negotiations. Brent crude slips 1.1% to $67.13 a barrel, while WTI is down 1% to $62.26 a barrel. But "there's still plenty of uncertainty over how things will evolve," ING analysts say. "This suggests the market will likely continue to price in a risk premium." According to the research firm, speculators are growing wary of betting against oil. Positioning data show traders sharply increased bullish bets on Brent crude, largely by covering short positions, pushing net longs to their highest level since April 2025. Options markets echo the shift, with traders increasingly positioned for a potential rise in oil prices. ([e-mail])

--

London's Miners Rise as Precious-Metal Prices Remain Elevated -- Market Talk

0820 GMT - London's miners rise in opening trade as precious-metal prices tick upward. In New York, gold futures are up 0.9% at $5,026 a troy ounce while silver climbs 4.5% to $80.39 an ounce. Prices remain elevated after rebounding from recent volatility. Geopolitical uncertainty and central-bank buying are supporting gold prices. Hochschild Mining rises 3.6% while Fresnillo is up 2.1%. Endeavour Mining rises 2.7%. Commodity giant Glencore rises 2%, while Anglo American is up 0.5%. Copper miner Antofagasta is up 3.1%. ([e-mail])

--

Gold Likely Rangebound Amid Raft of U.S. Data -- Market Talk

(MORE TO FOLLOW) Dow Jones Newswires

02-09-26 1022ET