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    Home»Commodities»BP Pledges Further Cost, Portfolio Review — Commodities Roundup
    Commodities

    BP Pledges Further Cost, Portfolio Review — Commodities Roundup

    August 5, 20258 Mins Read


    MARKET MOVEMENTS:

    –Brent crude oil is down 1% to $68.06 a barrel

    –European benchmark gas is up 0.3% at 34.38 euros a megawatt-hour

    –Gold futures are up 0.3% at $3,438 a troy ounce

    –LME three-month copper futures are down 0.8% to $9,631.50 a metric ton

    TOP STORY:

    BP Pledges Further Cost, Portfolio Review

    BP said it would launch a new cost review and evaluate its portfolio, as the oil major presses ahead with a plan to address investor concerns.

    The London-based company is under pressure from investors to revive its flagging share price and boost shareholder returns. Earlier this year it jettisoned a push into low-carbon energy such as wind, solar and electric-vehicle charging and refocused on fossil fuels.

    Activist hedge fund Elliott Investment Management has taken a stake in the company with a view to pushing for significant changes.

    OTHER STORIES:

    Saudi Aramco Keeps Dividend After Profit Takes Hit From Lower Oil Prices

    Saudi Arabia's national oil company posted a drop in second-quarter net profit, hurt by falling oil prices and higher costs, but maintained its quarterly dividend at more than $21 billion.

    Weaker oil prices weighed on the results of oil majors after a quarter during which heightened tariff and geopolitical uncertainty sent crude markets on a volatile ride, but they continued to hand billions of dollars to shareholders nevertheless.

    --

    India Defies Trump on Russian Oil Despite Tariff Threats

    NEW DELHI-India is digging in its heels and resisting pressure from the U.S. to curb purchases of Russian oil, despite threats by President Trump to retaliate by imposing higher tariffs on India.

    Last week, Trump said he would place a 25% tariff on Indian imports to the U.S. in retaliation for India's large-scale purchases of cheap Russian oil. Then, on Monday, the president said he would be "substantially raising" tariffs on Indian goods-on top of the 25% duty-because of the "massive amounts" of Russian oil that India buys.

    --

    Marathon Petroleum 2Q Revenue Declines but Beats Estimates

    Marathon Petroleum posted better-than-expected results in its latest quarter even as its financial performance weakened from a year earlier.

    The oil company on Tuesday posted a profit of $1.22 billion, or $3.96 a share, for the second quarter, down from $1.52 billion, or $4.33 a share, in the prior-year period.

    --

    Fresnillo Shares Boosted by First-Half Results

    Fresnillo's shares jumped after the miner upgraded its gold production guidance for the year and said pretax profit for the first half surged due to an increase in precious-metals price.

    The Mexican precious-metals miner led the FTSE 100 index and Stoxx 600 risers on Tuesday early morning, trading 9.55% higher at 15.71 pounds.

    --

    Australia Considers Critical Minerals Price Floor to Help Support New Projects

    Australia is considering establishing a price floor for critical minerals such as rare earths, to help shore up supply of commodities essential to defense and strategic technologies, said Resources Minister Madeleine King.

    The U.S. recently surprised commodity markets by guaranteeing a price floor for rare-earth minerals and magnets produced by American supplier MP Materials, helping to protect that company from swings in prices. Analysts and traders speculated that other Western governments might follow suit, as the U.S. and its allies seek to undercut China's dominance in refining many key minerals.

    --

    Trafigura's Nyrstar Smelters Get $87 Million Rescue Package in Australian Critical Minerals Push

    A unit of commodities trading giant Trafigura will receive 135 million Australian dollars, equivalent to $87 million, in fiscal support from federal and state governments in Australia to help keep two smelters afloat and consider ways to expand them to produce critical minerals essential to electronics and defense.

    Trafigura subsidiary Nyrstar said the funding package agreed with federal and state officials will help the company continue to operate the Port Pirie lead smelter in South Australia and Hobart zinc smelter in Tasmania. At the same time, Nyrstar will consider options to modernize the smelters and potentially produce critical minerals germanium and indium in Hobart, and antimony and bismuth in Port Pirie, it said.

    --

    Archer Daniels Midland's 2Q Profit, Revenue Falls Amid Ongoing Uncertainty

    Archer Daniels Midland logged lower profit and revenue in the second quarter, hurt by what Chief Executive Juan Luciano called a challenging environment.

    The processor of agricultural commodities like oilseeds, corn and wheat on Tuesday posted a profit of $219 million, or 45 cents a share, compared with $486 million, or 98 cents a share, a year earlier.

    --

    Aurubis Operating Profit Declines; Tightens Guidance

    Aurubis, one of the world's largest copper recyclers, reported a fall in operating profit and narrowed its guidance range.

    The German metals supplier on Tuesday said it booked an operating profit of 286 million euros ($331 million) in the first nine months of the fiscal year that ends Sept. 30, down from 333 million euros in the same period a year prior, as it benefited from high copper demand and lower energy costs.

    MARKET TALKS:

    Gold Futures Rise, Extending Rally on U.S. Economic Uncertainty -- Market Talk

    1435 GMT - Gold futures rise, recouping losses from earlier in the session. Futures are up 0.3% at $3,436.30 a troy ounce. The precious metal continues to extend the rally begun Friday by significantly weaker-than-expected U.S. jobs data. The Nonfarm Payroll data also brought significant downward revisions to prior months' figures, raising concerns about the health of the economy and increasing expectations of an interest rate cut in September. The precious metal is benefiting from several factors, including fresh uncertainty stoked by President Trump's firing of the head of the Bureau of Labor Statistics shortly after the data release, Commerzbank analysts say in a note. The potential loss of trust in U.S. economic statistics could lead to the U.S. losing further attractiveness for investors, boosting gold's safe-haven appeal, Commerzbank says. (joseph.hoppe@wsj.com)

    --

    Live Cattle Rises as Traders Look to Retest Highs -- Market Talk

    1032 ET - Live cattle futures are up 1.3%, driven in part by traders evaluating the supply and demand situation for cattle and beef as still very tight. At the same time, packer margins are slim, says AgResource in a note. "Daily price volatility is expected to remain extreme as traders debate whether packers will keep bidding cash cattle higher as their margins collapse to the lowest level in a decade," says the firm. Cattle is trading slightly above $2.27 a pound, only a few cents off from the record high of $2.30 a pound. Lean hog futures are up 0.9%. (kirk.maltais@wsj.com)

    --

    Higher Aluminum Costs Hurt Molson Coors' FY Outlook -- Market Talk

    1006 ET - Molson Coors generally manufactures its beers in the markets in which they are sold using locally sourced ingredients, meaning the company doesn't expect tariffs to directly affect its input costs, CFO Tracey Joubert says on a call with analysts. "That said, tariffs do have indirect impacts, like the recent spike in Midwest premium pricing," Joubert says. The Midwest premium--which measures the price of aluminum supplied to the region--has risen more than 180% since the beginning of the year, and is likely to increase the company's aluminum costs for the year by up to $55 million, according to Molson Coors. These costs are having a "pretty negative impact on our business this year," CEO Gavin Hattersley says. (connor.hart@wsj.com)

    --

    Middle Eastern Producers Unlikely to Match Russia's Oil Price Discounts to India -- Market Talk

    1423 GMT - Middle Eastern producers are unwilling to match the discounts Russia offers on crude shipments to India, says Amena Bakr, head of Middle East energy and OPEC+ insights at Kpler. "I don't think the entire volume of Russian crude can be replaced by Middle Eastern producers," she said, adding that price remains a key sticking point. India has been importing around 1.5 million--and, at times, up to 2 million--barrels per day of Russian crude, according to Kpler. Traders are now waiting to see how the situation develops, with New Delhi resisting pressure from Washington to curb its purchases of Russian oil despite President Trump's tariff threats. (giulia.petroni@wsj.com)

    --

    U.S. Natural Gas Futures Attempt a Rebound -- Market Talk

    0946 ET - Natural gas futures are pulling up toward the $3 level seen as a point of contention between bulls and bears. The market may be oversold on a medium-term basis, but there are few near-term bullish catalysts, Eli Rubin of EBW Analytics says in a note. "While pricing may continue to decrease in search of more durable support, any unexpected bullish catalysts or profit-taking by shorts can lead to a rapid recovery." Nymex natural gas is up 1.4% at $2.974/mmBtu. (anthony.harrup@wsj.com)

    --

    Oil Losses Deepen As OPEC+ Unwind Outweighs India Tension

    0900 ET - Crude futures extend losses with OPEC+ plans for higher output raising concerns of oversupply while India pushes back against U.S. tariff threats over its Russian oil purchases. "Oil spreads are trading like the market thinks India will ignore the U.S. threats and keep buying Russian oil," Scott Shelton of TP-ICAP says in a note. "Overall, as long as India doesn't buckle under the pressure of U.S. threats, the signs are definitely there for weaker physical as Asia is weakening, which should reverberate into the North Sea and the U.S. markets should it continue." WTI is down 1.5% at $65.32 a barrel, and Brent is off 1.3% at $67.86. (anthony.harrup@wsj.com)

    --

    Gold Futures Slide as Market Risk Appetite Builds -- Market Talk

    (MORE TO FOLLOW) Dow Jones Newswires

    August 05, 2025 11:10 ET (15:10 GMT)

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



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