MARKET MOVEMENTS:

--Brent crude oil is up 0.1% to $76.61 a barrel.

--European benchmark gas is down 2.2% to EUR48.55 a megawatt-hour.

--Gold futures are flat at $2,653.60 a troy ounce.

--LME three-month copper futures are up 0.8% to $8,950.50 a metric ton.


TOP STORY:

Saudi Lifts Selling Prices to Asia for First Time in Three Months

Top oil exporter Saudi Arabia raised prices for all crude grades it sells to Asian customers for the first time in three months after the price of some Middle Eastern grades strengthened in December.

State-owned oil giant Saudi Arabian Oil Co., known as Aramco, on Monday set its official selling price for February loadings of its flagship Arab Light crude to Asia--its main market--at $1.50 a barrel over the Oman/Dubai average, from $0.90 a barrel in January. Prices for other lighter and heavier crude grades were hiked as well.

Aramco also raised its February prices for all grades for customers in northwest Europe and the Mediterranean by $1.30 a barrel for all grades, while it cut prices for the U.S. by $0.30-$0.40 a barrel.


OTHER STORIES:

ArcelorMittal South Africa to Wind Down Long-Steel Products Business

ArcelorMittal South Africa is to wind down its long-steel products business affecting around 3,500 jobs, after weak economic conditions, high costs and Chinese steel imports weighed on the company.

The South African business of Luxembourg-based ArcelorMittal said on Monday steel production is anticipated to cease by late January and that its remaining production processes would be wound down by the first quarter of the year.

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Data Centers Need to Look Beyond Green Energy, Siemens Executive Says -- Interview

There isn't enough green energy around the world to power data centers, and operators need to look elsewhere for a solution to the artificial intelligence energy-consumption conundrum, the head of Siemens's Smart Infrastructure division said.

Electrical-equipment makers have been among the early beneficiaries of a boom in data-center construction, as companies snap up gear such as power transformers, generators and switchboards to build more facilities. This gives the likes of Siemens's smart infrastructure division insight into the challenges facing data-center companies as they race to satisfy AI's growing computing needs.


MARKET TALKS:

Palm Oil Ends Lower Amid Weak Sentiment -- Market Talk

1005 GMT - Palm oil ended lower amid weak sentiment. Indonesia delayed its B40 biodiesel mandate, which was set to take effect on January 1. Investors remained concerned about policy advancements and its impact on palm oil demand, Tongguan Jinyuan Futures said in a research note. Meanwhile, high palm oil prices undermined the demand, with India's imports dropping sharply, it said. The resilience reflected in the U.S. labor data supported the dollar index and broadly weighed on the commodities market, it added. The Bursa Malaysia Derivatives contract for March delivery ended 26 ringgit lower at 4,342 ringgit a ton. (sherry.qin@wsj.com)

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Gold Futures Drop Ahead of U.S. Data But Early 2025 Outlook Is Robust -- Market Talk

0914 GMT - Gold futures slide as investors position themselves ahead of U.S. economic data. Futures are down 0.4% at $2,644.0 a troy ounce. Friday's U.S. jobs report is expected to shed further light on the Federal Reserve's approach to monetary policy easing, and particularly the size and scope of future interest-rate cuts. Higher rates for longer typically damp the appeal of non-interest bearing bullion. The precious metal was a stand-out performer in the commodities complex in 2024, BMI analysts say in a note. Gold is likely to demonstrate its resilience as a safe-haven asset in the first quarter of 2025, as prices receive support from both the Fed's rate cuts and high levels of geopolitical tension, BMI says. BMI expects spot gold to trade in the range of $2,500-2,800 an ounce in the coming months. (joseph.hoppe@wsj.com)

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Europe's Gas Price Slips But Remains Supported by Cold Weather, Supply Worries -- Market Talk

0902 GMT - European natural-gas prices fall in early trade but remain elevated on the month due to colder weather forecasts and supply concerns following the suspension of Russian gas transit through Ukraine. The benchmark Dutch TTF contract is down 1.2% at 49 euros a megawatt hour after breaking above 50 euros last week on confirmation that Russian pipeline flows via Ukraine were halted with the expiration of Gazprom's transit deal. "Adding further support to European gas is the forecast for colder-than-usual weather over the next two weeks, which could see storage falling at a quicker-than-expected pace," ING analysts say. "Storage levels should still mean that Europe gets through this winter comfortably, however, the refilling of storage through the injection season will be a bigger job than last year." (giulia.petroni@wsj.com)

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Oil Starts 2025 Strong on Chinese Optimism, Colder Weather -- Market Talk

0847 GMT - Oil prices edge lower in early European trade but are off to a strong start of the year, supported by hopes over Chinese stimulus and prospects of higher fuel demand due to colder weather. Brent crude and WTI both fall 0.5% to $76.13 and $73.59 a barrel, respectively, although they are up more than 7% and 9% on the month. "The strength in the market appears to be on the back of a stronger physical market in the Middle East," ING analysts say in a note to clients. "There are suggestions that Asian buyers have been looking to other Middle Eastern grades amid broader sanctions against Russia and Iran." Meanwhile, the market awaits to see whether U.S. President-elect Donald Trump will enforce stricter sanctions against Iran, leaving the market tighter than expected. (giulia.petroni@wsj.com)

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Chinese Oil Majors Likely to Face Tepid Demand This Year -- Market Talk

0832 GMT - China's oil majors will likely face another year of soft demand this year, according to a report by S&P Global Ratings. Slow momentum in manufacturing and looming protectionism risks may cap the headroom space for economic growth, weighing on oil demand, S&P says. The rise in new-energy vehicles is also dampening demand for key transportation fuels and oil demand growth, S&P adds. Still, the creditworthiness of China's national oil companies looks resilient, supported by robust output and sufficient financial headroom for capital spending, S&P says. Natural gas will be a key transitional energy source for China's oil-and-gas production growth, S&P adds. (kimberley.kao@wsj.com)

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Iron Ore Falls Amid Weak Sentiment -- Market Talk

0243 GMT - Iron ore prices are lower in early Asian trading amid weak sentiment. Demand is falling as Chinese steel mills cut production due to thin profitability and the off-season, Baocheng Futures says in a research note. Meanwhile, iron ore arrivals at Chinese ports are picking up as overseas miners increased shipments at the year-end to hit annual goals, it says. However, the yuan's depreciation could limit the downward trajectory of iron ore prices, it says. The most-traded iron ore contract on the Dalian Commodity Exchange is down 0.3% at CNY766.5 a ton. (sherry.qin@wsj.com)

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Copper Edges Higher; Prices May Face Pressure Ahead -- Market Talk

0214 GMT - Copper edges higher in early Asian trade. Chinese inventory last week continued to show consumption, though the upcoming Lunar New Year holiday later this month will likely mean weaker domestic consumption, and prices appear to be on the downward trend, analysts at Galaxy Futures write in a note. The less dovish Fed interest-rate cycle and uncertainty about policies from the incoming U.S. administration could increase the pressure on copper prices, they add. The three-month LME copper contract is 0.1% higher at $8,888.00/ton. (kimberley.kao@wsj.com)

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Glencore, Anglo American Among Jefferies' Top Mining Picks for 2025 -- Market Talk

0213 GMT - Glencore, Anglo American, Teck, and Alcoa are Jefferies' top picks among mining stocks this year. While we have recently become more cautious on the near-term outlook for the sector due to cyclical factors, and we believe the risk to consensus estimates is to the downside, it is too late to make downgrades to our ratings, in our view," analysts at the bank write. "All things considered, our bias is to buy our preferred miners and steel producers following the recent significant weakness," they add. Jefferies also prefer Freeport-McMoRan and Lundin Mining, citing a longer run exposure to copper. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

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Most Mined Commodities Unlikely to See Much Gains in 2025 -- Market Talk

0203 GMT - There are likely to be limited gains in most mined commodity prices this year, with possible exceptions for copper, aluminum and steelmaking coal, Jefferies analysts say in a note. "We do not expect a significant acceleration in demand growth for the major metals and mined commodities in 2025," they write. Naming a stronger U.S. dollar for now, the property market downturn in China, a potentially slowing U.S. economy and an escalation of trade wars as macro headwinds, the analysts note "at least offset the tailwinds," pointing to lower corporate tax rates and deregulation in the U.S., easier monetary policy in major economies, a possible end to the war in the Ukraine, and a modest China stimulus. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)


Write to Barcelona Editors at barcelonaeditors@dowjones.com


(END) Dow Jones Newswires

01-06-25 0637ET