Biden Rushes to Trump-Proof His Signature Energy, Chip Policies -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 0.3% at $73.03 a barrel.

--European benchmark gas is up 1.8% at 47.51 euros a megawatt hour.

--Gold futures are up 0.7% at $2,684.80 a troy ounce.

--LME three-month copper futures are up 0.3% at $9,011.50 a metric ton.

TOP STORY:

Biden Rushes to Trump-Proof His Signature Energy, Chip Policies

The White House is racing to lock down President Biden's dearest policy goals, distributing billions of dollars to safeguard favored projects before President-elect Donald Trump takes office in January.

With less than two months left in his term, Biden plans to pursue a laundry list of items including funding weapons for Ukraine, pressing for stability in Gaza and winning confirmation of roughly a dozen federal judges. The judicial confirmations could bring him close to the 234 Trump accomplished during his first term.

One of the Biden administration's most aggressive moves could come from a $400 billion clean-energy lending program inside the Energy Department. The Loan Programs Office was turbocharged by the 2022 Inflation Reduction Act, which gave it extra funds to lend to clean-energy businesses. Biden administration officials fear a Trump administration could stop making loans from the program, which was largely dormant during Trump's first term.

OTHER STORIES:

Repsol to Sell Colombian Assets for $530 Million to GeoPark

Repsol signed a deal to sell upstream assets in Colombia to Latin American oil-and-gas explorer GeoPark for $530 million.

The Spanish energy major said Friday that the transaction includes 100% of Repsol Colombia Oil & Gas and a 25% stake in SierraCol Energy Arauca.

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For EV Startups, Things Are Going From Bad to Worse

Electric-vehicle startups were struggling before the election. Donald Trump's victory could send them into a tailspin.

Several high-profile companies, including electric SUV maker Fisker and bus manufacturer Arrival, filed for bankruptcy earlier this year. Swedish-based battery maker Northvolt became the latest casualty last week, filing for Chapter 11 after BMW canceled a key order.

MARKET TALKS:

OPEC+ Likely to Delay Output Hikes by Three Months, Commerzbank Says -- Market Talk

1158 GMT - OPEC+ is expected to further delay its planned output hike by at least three months, providing support to oil prices, according to Commerzbank Research analysts. The cartel and its allies postponed their Sunday meeting to discuss oil production policy to next Thursday. "Scheduling conflicts are cited as the reason, but there is also speculation whether--as has often been the case in the past--there are difficulties in formulating a joint production strategy," analyst Barbara Lambrecht says in a note. "However, we suspect that this is more about individual quotas than the overall strategy." Commerzbank expects the alliance to opt for another delay, otherwise the market risks facing a massive supply surplus next year. ([e-mail])

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Coffee, Cocoa Gain on Persistent Supply Concerns -- Market Talk

1054 GMT - Agricultural soft commodities gain, with arabica coffee futures rising to $3.28 a pound and cocoa futures up 1.8% to $9,235 a metric ton. Coffee value has gained 74% since the start of 2024 and 8.4% in the last week alone. Like cocoa, coffee's gains reflect concerns of a poor crop in powerhouse producer Brazil in 2025, and follow a lower-than-expected harvest this year, Commerzbank's Carsten Fitch writes. Brazilian coffee producers are reportedly holding back forward sales for the coming crop in anticipation of even higher prices, Fitch says in a note. There is also a shortage of the robusta coffee variety, with concerns that the crop of major producer Vietnam could be smaller due to drought and heavy rainfall at the start of the harvest, Fitch adds. Robusta rises 0.1% to $5,573 a ton. ([e-mail])

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Metal Prices Rise But Remain Subdued by Strong Dollar, Weak Demand -- Market Talk

1045 GMT - Metal prices rise, with LME three-month copper up 0.2% at $9,006 a metric ton and LME three-month aluminum up 0.2% at $2,596 a ton. The metals complex is mostly down on-month, dragged by a stronger U.S. dollar and still-weak demand in China, BMI analysts say in a note. Copper is down 5.75% on-month, while aluminum is down 2.15%. China's decision to cancel export tax rebates from December provided short-term support for aluminum and placed a price floor under copper, but President-elect Donald Trump's newly announced tariffs on China, Mexico and Canada injected fresh volatility into the complex, BMI says. The persistently strong U.S. dollar following Trump's victory sparked a bearish market sentiment for base metals, given their inverse relationship with the greenback, BMI adds. ([e-mail])

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Palm Oil Rises on Buying Interest -- Market Talk

1016 GMT - Palm oil closed higher, driven by sustained buying interest, Kenanga Futures writes in a note. There are concerns about production disruptions in Indonesia and Malaysia due to severe rainfall, it adds. Some palm oil estates are affected by the continuing flood in the east coast of Malaysia, says David Ng, a trader at Kuala Lumpur-based Iceberg X. That will likely affect output and support price sentiment in the market, he adds. Ng sees support for CPO futures at MYR4,950 and resistance at MYR5,200. The Bursa Malaysia Derivatives contract for February delivery closed MYR138 higher at MYR5,023 a ton. ([e-mail])

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Anglo American's Restructuring Plan Makes It an Attractive Target -- Market Talk

0938 GMT - Anglo American is a more attractive acquisition target without its metallurgical coal assets, Anglo American Platinum and De Beers, Jefferies analysts Christopher LaFemina and Albert Realini write. The miner is well positioned to benefit from rising copper price and a resilient iron ore price after its restructuring is complete, they say. It will have a strong balance sheet and robust cash flow which will enable large capital returns, they add. It is Jefferies' view that BHP won't revise its bid in the near future but it might emerge alongside other bidders as Anglo's restructuring progresses. Shares are up 3% at 2,464 pence. ([e-mail])

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Anglo American's Restructuring Plan Could Boost Share Price -- Market Talk

0925 GMT - Anglo American's share price has room to grow as it completes its restructuring plan and overcomes operational challenges, Jefferies analysts Christopher LaFemina and Albert Realini write. Jefferies upgraded the rating for the miner to buy from hold, reversing a previous downgrade following the failed takeover offer from rival BHP. Anglo American's shares have fallen around 15% since it announced its plan to sell assets in May, the analysts write. Jefferies raised its target price to 2,850 pence a share to reflect the progress on restructuring, operational improvements, free-cash-flow growth and near-term M&A potential. Shares are up 3% at 2,464 pence. ([e-mail])

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Gold Futures Rise on Weaker Dollar, Safe-Haven Demand -- Market Talk

0908 GMT - Gold futures rise as the dollar slips back and geopolitical concerns continue to bubble. Futures are up 0.7% at $2,683.40 a troy ounce. The precious metal has gained on the back of safe-haven demand amid the escalation in Russia-Ukraine conflict, BMI analysts say in a note. However, prices continue to be weighed down by persistent dollar strength, BMI says. The precious metal is down 3.5% on month. Donald Trump's victory in the U.S. presidential election in early November sparked a selloff as investors took profits and liquidated hedging positions. ([e-mail])

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Oil Headed for Weekly Loss With Geopolitics, OPEC+ in Focus -- Market Talk

0907 GMT - Oil prices are headed for weekly losses of around 3% as traders monitor developments in the Middle East and await OPEC+'s policy decision next Thursday. Brent crude is down 0.6% to $72.38 a barrel, while WTI falls 0.2% to $68.63 a barrel in early European trade. Israel and Hezbollah exchanged accusations over alleged violations of their ceasefire agreement--a deal that alleviated risks of broader supply disruptions in the region. Meanwhile, Russia struck Ukraine's energy infrastructure again after two weeks of military escalation between the two countries, renewing market concerns over supply. Still, concerns over slower global demand growth and expectations of a surplus next year continue to put pressure on prices, with analysts now waiting to see if OPEC+ will opt for yet another delay to its planned output hike. ([e-mail])

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Iron Ore Rises Amid Prospects of Increased Steel Exports From China -- Market Talk

0234 GMT - Iron ore rises in the morning Asian session amid prospects of higher demand from the steel sector. Chinese steel manufacturers will likely boost exports ahead of an expected rise global trade tensions, ANZ Research analysts say in a research report. That bodes well for demand of the steelmaking material. China's steel sector has improved, with steel mill operations narrowing losses, the analysts say. Strong steel exports and destocking have helped improve profit margins, the analysts add. The most-traded iron-ore contract on the Dalian Commodity Exchange is 1.0% higher at CNY796.5 a ton. ([e-mail])

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Copper Edges Higher; Gains Capped by Chinese Economic Woes -- Market Talk

0151 GMT - Copper edges higher in early Asian trade. Prices for base metals like lead, nickel and copper have reached highs not seen in months, pointing to increased market interest and that the sector will likely experience tighter near-term supply dynamics, Daria Efanova, Head of Research at Sucden Financial writes in a note. However, prices have been under pressure, given the growing external challenges to the Chinese economy, with Trump's promise of heightened tariffs on Chinese products complicating consumption recovery, the ANZ Research team writes in a note. Copper is 0.3% higher at $9,028.00/ton. ([e-mail])

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11-29-24 0843ET