BP, Japan's JERA to Create Offshore Wind JV -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 1.3% at $72.04 a barrel

--European benchmark gas is down 2.5% at 45.34 euros a megawatt-hour

--Gold futures are up 0.8% at $2,680.60 a troy ounce

--LME three-month copper futures are up 1.5% at $9,225.00 a metric ton

TOP STORY:

BP, Japan's JERA to Create Offshore Wind JV

BP will merge its offshore wind-energy business with that of Japanese power-utility JERA to create a combined standalone company, in line with the British energy company's strategy to focus on its more profitable oil-and-gas operations.

The companies said Monday that the equally-owned company, to be called JERA Nex BP, will have 13 gigawatt of potential net generating capacity. They have agreed to invest up to $5.8 billion in the company before the end of 2030.

JERA Nex BP will focus on the development of its existing assets, initially the ones in Northwest Europe, Australia and Japan, while also pursuing new competitive projects.

OTHER STORIES:

Saudi Arabia Cuts Oil Prices for Asia After OPEC+ Delays Output Hike

Top oil exporter Saudi Arabia cut prices for all crude grades it sells to Asian customers after the Organization of the Petroleum Exporting Countries and its allies further delayed a planned output hike amid softer prices.

State-owned oil giant Saudi Arabian Oil Co., known as Aramco, on Sunday set its official selling price for January loadings of its flagship Arab Light crude to Asia--its main market--at $0.90 a barrel over the Oman/Dubai average, from $1.70 a barrel in December. Prices for other lighter and heavier crude grades were lowered as well.

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Domino's Pizza Group Reaches New Midterm Framework to Boost Profit and Growth

Domino's Pizza Group said it reached a new five-year framework with its franchise partners effective from Jan. 3.

The master franchise holder of Domino's stores in the U.K. and Ireland on Monday said the new profit and growth framework will increase the marketing contribution, along with digital investment and new-store incentives. The deal will also align the shared investment between the holder and its franchise partners.

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Perpetua Resources to Explore Antimony Supply Chain Options with Sunshine Silver

Perpetua Resources said it will explore antimony processing opportunities with Sunshine Silver Mining & Refining Company.

On Monday, Perpetua on Monday said that it as entered into a memorandum of understanding with Susnhine Silver Mining to evaluate the technical potential for processing and refining antimony from the its Stibnite Gold project in Idaho at the Sunshine Mine Complex.

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Boliden to Buy Swedish and Portuguese Mines From Lundin Mining for Up to $1.45 Billion

Boliden will pay up to $1.45 billion for two mines from Lundin Mining in a deal to boost its copper and zinc production.

The Swedish miner said Monday that it has agreed to buy the Neves-Corvo mine in Portugal and the Zinkgruvan mine in Sweden for an upfront cash consideration of $1.3 billion plus contingent payments that could reach up to $150 million, it said.

MARKET TALKS:

Metal Prices Mixed; Copper Gains as China Stimulus Boosts Demand Hopes -- Market Talk

1150 GMT - Metal prices are mixed, with LME three-month copper up 1.4% at $9,217.50 a metric ton and LME three-month aluminum down 0.25% at $2,601 a ton. LME three-month zinc rises 1.9% to $3,131 a ton. Copper and zinc have both rallied as China loosened its monetary policy stance on Monday, SP Angel analysts say in a note. China is emphasizing the need to boost consumption and expand domestic demand in an effort to kickstart the economy, SP Angel says. The country's top decision-making body, the Politburo, said Beijing must implement more proactive fiscal policies and moderately loosen monetary policies. This boosted investor appetite for some industrial metals.([e-mail])

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Assad's Fall Unlikely to Materially Affect Energy Markets -- Market Talk

1123 GMT - The fall of Syrian President Bashar al-Assad isn't expected to have significant implications for energy markets, according to Capital Economics' Jason Tuvey. Syria's oil production was a small portion of global oil supplies even at its peak of around 0.6 million barrels a day in the early 2000s, the economist says, and it has shrunk since the start of the civil war in 2011. Now, production is less than 100,000 barrels a day, while much of the country's oil infrastructure was destroyed. "Even if the political situation stabilizes, it will take years, if not decades, to rebuild and the economy may never return to its pre-war size," Tuvey says in a note to clients. "It's a similar story for energy markets." ([e-mail])

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Saudi Oil-Price Cut Indicates Demand Softness in Asia -- Market Talk

1034 GMT - Saudi Arabia's decision to cut official oil selling prices for Asia underscores weaker demand in the continent, according to DNB Markets analysts. State-owned oil giant Aramco will sell January loadings of its flagship Arab Light grade to Asian buyers at a premium of $0.90 a barrel to the regional Dubai/Oman benchmark, compared with $1.70 in December. "This is the lowest premium to Dubai since the start of 2021, and at the same time as OPEC has extended its production cuts," DNB's Helge Andre Martinsen and Tobias Ingebrigtsen say in a note. "Combined, this indicates demand softness in Asia."([e-mail])

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European Luxury, Mining Stocks Rise on Chinese Stimulus Comments -- Market Talk

1025 GMT - European luxury and mining stocks rise after China's leaders signaled more forceful stimulus measures to boost domestic demand are on the way next year. A readout from the country's Politburo contained some unusually straightforward pledges, including a direct mention of greatly boosting consumption, Societe Generale analysts Wei Yao and Michelle Lam write. European luxury stocks Burberry and Kering both trade around 3% higher, Moncler is up 2.6%, LVMH up 2.1% and Brunello up 2%. Among mining companies, Rio Tinto is up 3.4%, Antofagasta is up 3% and Glencore and Anglo American trade around 2.6% up. ([e-mail])

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Palm Oil Ends Marginally Lower Amid Weaker Exports Data -- Market Talk

1015 GMT - Palm oil ended marginally lower amid weaker demand. Cargo surveyors ITS and Amspec estimated Malaysian palm oil exports in November dropped 9.26% and 10.35%, respectively, from October, Phillip Nova analyst Lim Tai An said in a research note. Yet investor sentiment continues to be buoyed by supply disruptions caused by ongoing weather challenges, the analyst said. From a technical view, crude palm oil has recovered more than two-thirds of the ground lost during its mid-September slump and is now poised to test the recent high of 5,202 ringgit a ton, he added. The Bursa Malaysia Derivatives contract for February delivery ended 10 ringgit lower at 5,118 ringgit a ton. ([e-mail])

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Metal Prices Rise as China Pledges Fresh Fiscal Stimulus -- Market Talk

1010 GMT - Metal prices rise, with LME three-month copper up 1.4% at $9,220 a metric ton and LME three-month aluminum up 0.1% at $2,608.50 a ton. Industrial metals have gained after China signaled it will implement more aggressive fiscal stimulus in 2025, boosting demand expectations. The country's November inflation data had pointed to persistently weak domestic demand amid a moribund real estate market. The Politburo pledged Monday to implement more proactive fiscal policy, boost domestic demand and stabilize housing and property markets, as well as loosen its official stance on monetary policy. China's recent stimulus package had broadly missed expectations, damping metal demand, market watchers say. Investor appetite for industrial metals had been further suppressed by a stronger U.S. dollar and President-elect Trump's tariff threats. ([e-mail])

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Gold Futures Rise on Safe-haven Demand, China Central Bank Buying -- Market Talk

0908 GMT - Gold futures rise on geopolitical risk and central bank purchases. Futures are up 0.35% at $2,669.10 a troy ounce. The precious metal has gained on safe-haven demand after Syrian rebels seized Damascus and ousted former President Bashar al-Assad, who has fled to Russia. Israel's Prime Minister Benjamin Netanyahu ordered the country's military to seize the demilitarized buffer zone between Israel and Syria over the weekend. A softer U.S. dollar has further enhanced gold's appeal as a safe-haven. China's central bank also resumed purchases of bullions in November after a six-month pause, which should shore up Chinese investor demand. Gold's record highs over 2024 reflect a combination of geopolitical tensions, easing U.S. interest-rate policies and strong central-bank purchases.([e-mail])

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Europe's Gas Price Falls on Steady Supply -- Market Talk

0935 GMT - European natural-gas prices fall in early trade amid expectations of steady gas supply through the end of the year. The benchmark Dutch TTF is down 2.2% at 45.46 euros a megawatt hour, after reaching yearly highs of 49 euros a megawatt hour in recent days. Still, colder weather forecasts in January suggest stronger heating demand, which is expected to accelerate storage withdrawals. According to Gas Infrastructure Europe, EU storage levels were 82.38% full as of Saturday. Meanwhile, fears of supply shortages this winter led Europe to raise its mandated level for gas inventories to 50% by Feb. 1, from 45% this year. "This requires strong LNG imports till January to compensate for the absence of Russian gas supply from January onwards and winter demand," ANZ Research analysts say. ([e-mail])

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Oil Gains Amid Rising Mideast Uncertainty After Assad's Fall -- Market Talk

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