MARKET MOVEMENTS:
–Brent crude oil is up 2.9% at $101.36 a barrel.
–European benchmark gas is up 4.2% to 43.70 euros a megawatt-hour.
–Copper futures rise 2% to $13,424.50 a metric ton.
–Gold futures are up 0.6% to $4,750.10 a troy ounce.
TOP STORY:
Secretive Shipments of Iranian Oil to China Are Under Threat by U.S.
Iran, China and an array of middlemen have evaded U.S. sanctions for years by shipping oil on aging tankers with opaque records and transferring cargoes between ships at sea, all to avoid scrutiny and legal liability.
U.S. forces boarded one such sanctioned tanker that has frequented China and Iran as it sailed on Tuesday through the Indian Ocean, roughly midway between Sri Lanka and Indonesia.
OTHER STORIES:
Why Gasoline Is So Much Cheaper in the U.S. Than Overseas
The war in Iran has lifted U.S. gasoline prices to more than $4 a gallon, the highest average price in four years.
Yet U.S. prices are still lower than they are in Germany, South Korea and most other developed countries.
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GE Vernova Lifts Outlook on Surge From Data Center Demand
GE Vernova is riding the data-center boom, lifting its outlook for the year as demand for the power and grid equipment needed to support artificial intelligence surges.
The energy company, formed from the breakup of General Electric, said Wednesday that accelerating investments in electrification infrastructure helped drive a sharp increase in orders and backlog during the recent quarter.
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How Asia’s Biggest Nations Are Riding Out the Energy Shock
When the war in Iran started nearly two months ago, countries in Asia-which receive more than 80% of the oil and liquefied natural gas delivered through the Strait of Hormuz-were among the most exposed to the energy shock.
But now, a combination of deep reserves, aggressive energy conservation efforts and savvy diplomatic efforts have allowed the deepest-pocketed of them to weather the blow-at least for now.
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EU Floats Plan to Mitigate Energy Crisis
The European Union has floated ideas from shoring up grids to encouraging member states to coordinate on fuel storage in a bid to mitigate volatile energy prices brought on by the conflict in the Middle East.
The plan–called AccelerateEU–includes encouraging the bloc’s 27 member states to coordinate in areas like the refilling of underground gas storage and exceptional releases of oil stocks.
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Lime Rock New Energy Raises $640 Million for Second Buyout Fund
Lime Rock New Energy has raised $640 million for its latest fund focused on investing in product and service providers that support the shift away from fossil fuels to a lower-carbon economy, with backing from new European and Asian investors.
The fund
The Westport, Conn.-based private-equity investor wrapped up Lime Rock New Energy Fund II above an initial $500 million goal, said Mark McCall, a managing director at Lime Rock New Energy. By comparison, the firm brought in about $320 million for a predecessor vehicle that closed in 2021, excluding co-investment pools, according to McCall.
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Orivium Targets $20 Million Raise in Race to Extract Untapped Metals
Orivium, a startup that aims to extract copper from mining waste and hard-to-process ores, is looking to raise $20 million to develop technology it thinks can unlock valuable critical minerals and lessen U.S. reliance on foreign-made metal.
The company says it can separate metals from waste and ore without the massive amounts of energy and chemicals used in traditional smelting and refining methods. Chief Executive Bill Amelio -formerly CEO of Chinese computer giant Lenovo and electronic components distributor Avnet -likens the process to fracking, only greener.
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U.S. Crude Oil Stockpiles Rise Amid Increase in Imports
U.S. crude oil inventories rose last week as imports picked up from the week before and exports declined, according to data released Wednesday by the U.S. Energy Information Administration.
Commercial crude oil stocks excluding the Strategic Petroleum Reserve increased by 1.9 million barrels to 465.7 million barrels in the week ended April 17, and were about 3% above the five-year average for the time of year, the EIA said. Crude stocks were expected to have fallen by 1 million barrels, according to a Wall Street Journal survey of analysts.
MARKET TALKS:
Gold Trims Gains as Brent Climbs Above $100 — Market Talk
1510 GMT – Gold futures trim earlier gains after Brent crude rose back above $100 a barrel, with lack of progress in U.S.-Iran talks weighing on sentiment. “While the conflict, now in its eighth week, continues to disrupt energy supplies and fuel inflation risks, expectations that central banks will keep interest rates elevated remain a key headwind for bullion,” says Soojin Kim from MUFG. In mid-morning U.S. trading, New York gold futures are up 0.7% to $4,755.60 a troy ounce. (giulia.petroni@wsj.com)
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Brent Above $100 a Barrel After Iran Attacks Three Ships in Hormuz
1435 GMT – Brent crude climbs above $100 a barrel after Iran attacked three ships in the Strait of Hormuz, escalating tensions in the critical shipping lane and casting doubt over the prospects for future peace talks. The international oil benchmark rises 2% to $100.47 a barrel, while the U.S. oil gauge WTI is up 2.1% to $91.56 a barrel. “Oil prices continue to whipsaw as traders respond to a confusing and often contradictory flow of headlines, underscoring the deep mistrust between Tehran and Washington,” says Saxo Bank’s Ole Hansen. “Headline-driven optimism can reverse quickly when not backed by enforcement on the ground.” (giulia.petroni@wsj.com)
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Hogs Inch Up on Supportive Seasonal Trend — Market Talk
1002 ET – Spring is often a time of year where lean hog futures tend to rise, and that’s being seen this year. “We’re seeing some degree of producer short covering here after this moderate pullback in values and ahead of what’s normally a stronger trending time of year,” says StoneX in a note. The upcoming Cold Storage report from the USDA is expected to give investors a better idea if consumer demand for pork products is trending higher, says the firm. CME lean hogs are up 0.3% to open trading, while live cattle futures fall 0.4%. (kirk.maltais@wsj.com)
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Oil Futures Gain on Concerns About Strait of Hormuz
0928 ET – Crude futures are higher for a third consecutive session with Brent crude again testing $100 a barrel levels as expectations for a reopening of the Strait of Hormuz are set back. President Trump’s extension of the cease-fire removes the immediate prospect of escalation, but is seen delaying talks “and likely keeps the U.S. blockade intact indefinitely,” Ritterbusch & Associates says in a note. Exports via alternative routes and SPR releases dampen the price impact of the closed strait to some extent, the firm adds, while “price-related demand destruction is becoming an increased topic of conversation.” Brent is up 1.6% at $100.06 a barrel and WTI is up 2% at $91.44. (anthony.harrup@wsj.com)
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SovEcon Warns of Cold Risk to Russian Wheat — Market Talk
0926 ET – SovEcon raises its outlook for Russia’s wheat crop, but warns of the possibility of the winter crop being harmed by a drop below normal temperatures. “The riskiest period for the crop is still ahead,” says the firm in a note. Spring cold snaps have been a factor limiting Russian crops in recent years, says SovEcon. The firm lifts its winter wheat harvest forecast by 2.1 million metric tons to 66.7 million tons, while keeping its spring wheat outlook at 23 million tons. CBOT wheat futures are up 0.1%. (kirk.maltais@wsj.com)
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Rainfall Risks Support Grain Futures — Market Talk
0917 ET – CBOT grain futures are higher, supported by rainfall in the U.S. keeping a number of farmers from getting their spring planting started. The 6-10 day outlooks from the NOAA show above-average precipitation expected throughout most of the Corn Belt, keeping things wet. Even so, analysts and traders don’t expect any delays at this stage of the season to meaningfully impact crop yields. “This forecast will slow spring fieldwork, but it is still early enough where the market will believe crops can still go in timely,” says Doug Bergman of RCM Alternatives. Corn climbs 0.4%, soybeans are up 0.3%, and wheat rises 0.1%. (kirk.maltais@wsj.com)
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Palm Oil Prices Close Higher on Strong Demand — Market Talk
1005 GMT – Palm oil prices ended higher, thanks to a stronger China market, firmer crude oil and overnight strength in soybean oil, says Abdul Hameed, director of sales at Pakistan-based Manzoor Trading. Higher crude oil prices are improving biodiesel economics, while Indonesia’s renewed commitment to launch B50 from July 1 remains one of the key drivers, he adds. The price gap between palm oil and soybean is also working in palm’s favor, he notes, adding that palm oil’s cheaper prices create strong buying interest from major destination markets. The Bursa Malaysia Derivatives contract for July delivery closed 67 ringgit higher at 4,626 ringgit a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
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European Gas Prices Slip as U.S. Extends Cease-Fire, Traders Cut Positions — Market Talk
0725 GMT – European natural-gas prices fall after the U.S. extended the cease-fire with Iran, easing fears of near-term escalation, while traders reduce their positions and overall market exposure. In early trading, the benchmark Dutch TTF front-month contract is down 0.4% to 41.75 euros a megawatt-hour. “Traders have scaled back exposure to gas, with total open interest in Europe’s benchmark dropping to its lowest point since September,” analysts at ANZ say. Meanwhile, Europe is benefiting from weaker Asian demand, particularly from India and China. “Higher prices and supply disruptions are triggering demand losses in many countries,” the analysts say. “The 30-day moving average for deliveries to the region is down around 15% compared to the same period last year.” (giulia.petroni@wsj.com)
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04-22-26 1133ET