Venezuela to Give U.S. Up to 50 Million Barrels -2-

0834 GMT - Oil prices fall in early trading after President Trump said Venezuela would give the U.S. up to 50 million barrels of sanctioned oil, a move expected to deepen global oversupply. Brent crude is down 0.9% to $60.18 a barrel, while WTI falls 1.1% to $56.48 a barrel. "Oil prices extended their decline as the U.S. moved to tighten its grip on Venezuela's oil industry, adding to pressure from an already oversupplied global market," says Soojin Kim from MUFG. The barrels will be sold at market price, with proceeds overseen by the White House to benefit both countries. Trump is also set to meet American oil executives on Friday to discuss investments in Venezuela's oil sector. "While Venezuela now accounts for only about 1% of global supply, uncertainty over its exports has added to bearish sentiment," Kim says. ([e-mail])

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Energy Stocks Fall as Prospect of Venezuelan Oil Influx Fuels Bearish Sentiment -- Market Talk

0826 GMT - European oil stocks slide in opening trade as traders worry about Venezuelan oil flowing into an already saturated market. Oil prices had been largely unresponsive to U.S. intervention in Venezuela but slide after President Trump said Venezuela's interim government would hand over 50 million barrels of crude to the U.S. The prospect of additional supply has compounded an already bearish oil market. Brent crude is down 1.1% at $60.01 a barrel, while WTI falls 1.5% to $56.29 a barrel. In London, BP and Harbour Energy slide around 2.5% while Shell drops 1.8%. Spain's Repsol and Italy's Eni fall around 2%. France's TotalEnergies trades down 1.6%. ([e-mail])

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China's Japan Export Ban Shows Its Rare-Earths Leverage -- Market Talk

0521 GMT - China's ban on exports of dual-use goods to Japan highlights China's strategic leverage on rare earths, Citi analysts say in a research note. China banned the export to Japan of goods with potential military uses, including rare earth metals. The ban has a greater impact on Japan than on the rare-earth magnet sector, they say. Japan accounts for only around 5% of Chinese exports of neodymium magnets, the most widely used type of rare-earth magnet, the analysts say. As Europe and other Asian markets constitute the bulk of export demand, the potential loss of Japanese market share is manageable, they note. However, more than 90% of Japan's heavy rare earths imports are from China. ([e-mail])

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Iron Ore Rises; Market Fundamentals Broadly Neutral -- Market Talk

0300 GMT - Iron ore gains in early Asian trading, with the most-traded iron-ore contract on the Dalian Commodity Exchange up 2.1% at 812.50 yuan a ton. Market fundamentals remain broadly neutral, with elevated supply and rigid demand largely offsetting each other, Nanhua Futures analysts say in commentary. They note year-end seasonal shipment increases and strong output growth from smaller miners pushing port inventories higher, capping upside potential for prices. Meanwhile, healthy steel mill margins, low raw material inventories, the bottoming out and rebound of hot metal output, as well as restocking needs, should provide support on the demand side. Prices are also being driven more by macro expectations, keeping them relatively firm, Nanhua adds. ([e-mail])

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(END) Dow Jones Newswires

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