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    Home»Commodities»OPEC Sees Lower Supply Growth From Rivals, Keeps Demand Outlook Steady — Commodities Roundup
    Commodities

    OPEC Sees Lower Supply Growth From Rivals, Keeps Demand Outlook Steady — Commodities Roundup

    June 16, 20259 Mins Read


    MARKET MOVEMENTS:

    –Brent crude oil is down 3.3% to $71.76 a barrel.

    –European benchmark gas is down 0.2% to 37.83 euros a megawatt-hour.

    –Gold futures are down 0.9% to $3,422.60 a troy ounce.

    –LME three-month copper futures are up 0.4% at $9,687.0 a metric ton.

    TOP STORY:

    OPEC Sees Lower Supply Growth From Rivals, Keeps Demand Outlook Steady

    The Organization of the Petroleum Exporting Countries trimmed next year's forecast for supply growth from the U.S. and other rivals while keeping its oil demand expectations unchanged as it continues to ramp up production.

    The Vienna-based cartel expects supply from producers outside of the wider OPEC+ alliance to rise by 730,000 barrels a day in 2026, down from 800,000 barrels a day previously. U.S. oil output is projected to grow by 210,000 barrels a day, compared with previous expectations of a 280,000 barrels-a-day increase, reflecting lower capital spending and a slowdown in drilling activity.

    In afternoon trading in Europe, Brent crude, the international energy benchmark, stood above $73 a barrel, while the U.S. oil gauge West Texas Intermediate traded at around $72 a barrel.

    Oil prices spiked last week after Israel launched a series of strikes against Iran, shaking global markets and stoking fears of a regional conflict that could severely disrupt global energy flows. OPEC's latest report made no direct reference to the current conflict between Israel and Iran.

    OTHER STORIES:

    Korea Zinc Backs Trump Plan for Deep Sea Mining

    The world's largest zinc smelter is taking a stake in a deep-sea mining company as it seeks to diversify its sources of metals away from China.

    Korea Zinc is making an equity investment of $85.2 million in Canadian startup The Metals Company, which aims to harvest minerals from the deep ocean. The investment represents a 5% stake in TMC.

    The move by the smelting giant is the first time a company within the metals industry has publicly shown support for TMC since the Trump administration backed a plan to allow U.S. companies to mine the deep sea.

    --

    U.S. Steel Shares Rise on National Security Agreement Ahead of Nippon Steel Deal

    United States Steel shares rose in premarket trading on Monday after receiving approval from the Trump administration to be sold to Japan's Nippon Steel in a $14.1 billion deal.

    Shares rose 5% to $54.81.

    On Friday, President Trump issued an executive order that said any U.S. national security issues around the merger could be mitigated with a national security agreement on terms determined by the U.S. government.

    --

    Nippon Steel Shares Rise on Pact With Trump for U.S. Steel Deal

    Nippon Steel shares rose after it reached an agreement with the Trump administration to resolve national-security concerns over its planned $14.1 billion acquisition of U.S. Steel.

    Shares rose as much as 5.0% to 2,970 yen, equivalent to $20.61, early on Monday in Tokyo and were recently up 2.0%. Japan's benchmark Nikkei Stock Average index was 0.8% higher.

    --

    TMC Shares Rise After $85.2M Investment From Korea Zinc

    TMC the metals company shares were 20% higher, at $5.20, after the company said it received an $85.2 million strategic investment from Korea Zinc.

    The Vancouver, British Columbia, resource-exploration company said Monday that Korea Zinc is buying common shares and warrants in a private placement.

    Korea Zinc will buy 19.6 million shares at $4.34 a share, and will receive a three-year warrant to buy 6.9 million shares with an exercise price of $7 a share, TMC said.

    --

    TotalEnergies Buys Stake in Chevron-Operated Exploration Blocks in the U.S.

    TotalEnergies said it is buying a 25% share in several offshore oil and gas exploration areas in the U.S. operated by Chevron, expanding its reach in the U.S. waters.

    The French oil major on Monday said the deal builds on existing partnerships between the companies in projects such as Ballymore, Anchor, Jack and Tahiti. This new acquisition will give it access to multiple potential sites for future discoveries.

    --

    Santos Gets $18.72 Billion Takeover Offer From Adnoc-Led Consortium

    SYDNEY- Santos, Australia's second-largest producer of oil and natural gas, said on Monday that it has received a takeover offer from a consortium led by Abu Dhabi National Oil Co unit XRG worth some $18.72 billion.

    Santos said the consortium is offering 8.89 Australian dollars a share, equivalent to $5.76, in cash. That offer, described by Santos as final, follows two proposals made in March worth A$8.00 a share and A$8.60 a share, respectively.

    Santos said it intends to recommend that shareholders accept the deal terms if a binding offer is made by the consortium, which also includes Abu Dhabi Development Holding Co. and private-equity firm Carlyle. Santos's share price ended last week at A$6.96.

    --

    Eastern Platinum Hit by Cybersecurity Incident

    Eastern Platinum was hit by a cyberattack that affected its internal information-technology systems.

    The Vancouver, British Columbia, miner of platinum group metals said Monday it detected a cybersecurity incident and took immediate containment measures to protect its network and data. It has since been working with cybersecurity experts to investigate the incident's scope and undertake necessary remedial action, the company said.

    --

    Critical Metals Shares Rise After Securing Funding to Develop Large Site in Greenland

    Shares of Critical Metals climbed after the company said it received a letter of interest from the Export-Import Bank of the U.S. for up to $120 million in funding.

    The stock rose 19%, to $2.41, in pre-market trading Monday. Despite surging 40% in the past month, shares have lost more than 80% of their value in the past year.

    The mining company before the bell said that the funding would be used to develop the Tanbreez project, one of the world's largest rare earth deposits located in Greenland. The project is expected to produce up to 85,000 metric tons of rare earth material annually in its initial commercial production phase.

    --

    SSR Mining Resumes Operations in Saskatchewan

    SSR Mining said Monday that it has restarted its operations in Saskatchewan after returning power to a site nearby forest fires had knocked out.

    The Canadian miner said that it resumed operations at its Seabee operations on Friday after a two-week temporary suspension due to forest fires in the vicinity that caused interruption to the company's power supply.

    --

    BHP Inks Major Logistics Deal With Aurizon to Handle Australian Copper Shipments

    Rail-freight operator Aurizon Holdings said it has been awarded contracts by BHP Group to handle rail, road and port logistics for the mining giant's Australian copper operations.

    The contracts are worth roughly 1.5 billion Australian dollars (US$973 million) in total anticipated revenue for Aurizon over a 10-year period, the rail company said.

    MARKET TALKS:

    Livestock Bounce Back From Risk-Off Trade -- Market Talk

    1119 ET - Livestock futures on the CME are up in early trading, climbing back after geopolitical worries gave livestock traders reasons for concern Friday. But with Iran signaling that it wants to negotiate a de-escalation of its conflict with Israel, livestock futures are making up ground. Also supporting livestock is easing concerns about ICE's intentions toward detaining migrant farm workers, says StoneX in a note. "Weekend announcements from the Trump admin that ICE would not be targeting farm economy immigrants, but instead criminals should help relieve some market stress about packing plant labor," says the firm. Live cattle is up 1.5% to $2.157 a pound, and lean hogs are up 1.3% to $1.10875 a pound. (kirk.maltais@wsj.com)

    --

    London-Listed Gold Miners Fall on Drop in Gold Prices -- Market Talk

    1516 GMT - London-listed gold miners trade down in late-afternoon European trade. Safe-haven demand for gold slipped as Iran signalled it would consider restarting talks over its nuclear program if the U.S. doesn't join Israel's attack. Gold futures are down 1.1% at $3,415.60 a troy ounce but the precious metal remains up 1.8% on week. Hochschild Mining shares trade down 5.6% while Endeavour Mining drops 3%. Gold and silver miner Fresnillo falls 1%.(adam.whittaker@wsj.com)

    --

    Corn Sinks on Supportive Weather, Oil Slide -- Market Talk

    1108 ET - Nascent U.S. corn crops are getting supportive rain, which is pressuring CBOT futures. "Weather is non-threatening, which has managed funds re-engaging as sellers for now," says Doug Bergman of RCM Alternatives in a note. Also weighing down corn futures is the weakness seen in crude oil prices, which is coming after Iran signaled its willingness to re-enter negotiations with Israel that would put hostilities between the two nations on pause. Corn is often exposed to movement in crude oil prices, due to the importance of the ethanol market as a source of demand for U.S. corn. Most-active corn futures on the CBOT are down 2.8%, while soybeans falls 0.4% and wheat topples 1.7%. (kirk.maltais@wsj.com)

    --

    Gold Futures Fall as Iran Signals Desire to De-escalate Hostilities -- Market Talk

    1454 GMT - Gold futures slide as safe-haven demand eases. Futures are down 1.1% at $3,415.60 a troy ounce, though the precious metal remains up 1.8% on week. Gold slid after Iran signaled it wants to de-escalate hostilities with Israel and restart talks over its nuclear program. Officials in Tehran told their Arab counterparts that they would be open to returning to negotiations as long as the U.S. doesn't join the attack. Gold had rallied on Friday following Israeli strikes on Iranian nuclear facilities, followed by an Iranian counter strike. The countries continued to carry out air attacks on each other over the weekend. Still, gold's longer-term price trajectory remains tilted upwards on geopolitical tensions, long-term inflation concerns and continued central bank purchases, StoneX's Fawad Razaqzada says in a note. (joseph.hoppe@wsj.com)

    --

    Oil Plummets After Iran Signals Willingness to Negotiate -- Market Talk

    (MORE TO FOLLOW) Dow Jones Newswires

    June 16, 2025 12:00 ET (16:00 GMT)

    Copyright (c) 2025 Dow Jones & Company, Inc.



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