-- Brent crude oil is up 1.3% at $93.63 a barrel.
-- European benchmark gas is down 2.3% to EUR39.38 a
-- Gold futures are down 0.5% at $1,911.10 a troy ounce.
-- LME three-month copper futures are down 0.3% at $8,081.50 a
-- Wheat futures are down 0.3% to $5.88 a bushel.
A Futuristic Plan to Make Steel With Nuclear Fusion
America's largest steel company is betting nuclear fusion can
help it eliminate carbon emissions and power one of the world's
most energy-intensive manufacturing processes.
In a first-of-its-kind partnership between a major industrial
company and a fusion startup, Nucor and Helion Energy plan to
develop a 500-megawatt fusion power plant that would be placed at
one of Nucor's U.S. steel mills by 2030, the companies said.
That amount is enough electricity to power a few hundred
thousand homes, about as much as a conventional power plant. Nucor
is investing $35 million in Helion, which is backed by OpenAI Chief
Executive Sam Altman.
The deal is a bet on fusion, a technology that can seem more
science fiction than science and hasn't yet produced
Samsung SDI to Invest $2 Billion in Second Stellantis Battery JV
South Korean battery maker Samsung SDI plans to invest almost $2
billion in a second U.S.-based plant for the joint venture with
Samsung SDI said Wednesday that it will invest 2.656 trillion
won ($1.98 billion) to secure a 51% stake in the new plant for
StarPlus Energy, a JV with Stellantis.
The planned investment will be made over three years from April
2024 through November 2027, the South Korean company said in a
Japan Can Keep Importing Russian Oil Above Price Cap Through
June 2024, US Says
Japan has said it has won authorization from the U.S. to
continue importing Russian crude oil at a price above the
$60-a-barrel cap observed by other U.S. allies.
The exception granted to Japan will last until June 28, 2024,
after previously having been scheduled to expire on Sept. 30, 2023.
It covers oil exported to Japan from the Sakhalin-2 project in
Russia's Far East, in which Japanese trading companies have
A U.S. Treasury Department license dated Sept. 14 authorized the
Japanese officials have said the country needs to import a small
amount of Sakhalin-2 oil that is extracted alongside much larger
quantities of natural gas. Russian liquefied natural gas, or LNG,
accounts for nearly 10% of Japan's total LNG imports under
UK's Rosebank Oil Field Gets Green Light
An oil field northwest of Shetland, off the coast of Scotland,
has been given the go-ahead to start pumping oil and gas, despite
concerns from environmental groups about starting new fossil-fuel
The Rosebank oil field was given the green light by the North
Sea Transition Authority on Wednesday for owners Equinor and Ithaca
Energy to start drilling, though this is not expected to start
until the second quarter of 2025 with production expected between
2026 and 2027. London-listed Ithaca said the parties will jointly
invest $3.8 billion in the field, with Equinor owning 80% of the
project, and the remaining owned by Ithaca.
Surging Oil Prices a Concern For Central Banks
1030 GMT - Rising crude oil prices are likely to become of
increasing concern for central banks, with inflation expected to
rise on the back of tighter supply. Brent crude is up 0.9% to
$93.30 a barrel with some analysts expecting $100 a barrel to be
breached in the near-term. "The recent surge in oil prices will
make things even more complicated as it will both worsen the
economic slowdown but also push up inflation," ING says in a note.
For central banks, balancing growth and inflation will likely
become even harder and could even threaten their credibility, ING
says. "Central banks most concerned about their credibility and the
longer-term impact on inflation expectations could end up
continuing to hike interest rates," it added.
Palm Oil Gains for Third Straight Day, Tracking Soybean Oil
1025 GMT - Palm oil prices closed higher for a third consecutive
day, tracking soybean oil's gains overnight on the Chicago Board of
Trade. Soybean oil is likely consolidating in a key support zone,
while crude oil prices have been in overall bullish trend, said
Anilkumar Bagani, the commodity head of Sunvin Group. The Bursa
Malaysia Derivatives benchmark contract for December delivery ended
MYR81 higher at MYR3,773 a ton. (email@example.com;
Interest Rates Remaining High Likely to Keep Pressure on
0855 GMT - Interest rates remaining higher for longer is likely
to keep the pressure on gold prices, with uncertainty driving
investors to other haven assets. Gold prices are currently sitting
at $1,913 a troy ounce--a six-month low for the precious metal.
This pressure is likely to continue, according to Nicky Shiels,
Metals Strategist at MKS PAMP. "The narrative is collectively
turning bearish for gold and with a risk-out mentality across
markets," Shiels says in a note. "It doesn't matter, now, that
rates will likely be lower next year than this year, as broader
macro markets don't like the uncertainty the 'higher for longer'
narrative brings and that has implications for gold." Shiels adds
that higher oil prices were also a headwind, given $100-a-barrel
oil could fuel inflation. (firstname.lastname@example.org)
Metals Waver on Lingering Demand Worries
0749 GMT - Metal prices are holding steady, as worries over
demand and higher rates of inflation are keeping prices capped.
Three-month copper is edging 0.1% higher at $8,112 a metric ton
while aluminum is 0.3% lower at $2,234.50 a ton. Gold meanwhile is
down 0.2% at $1,915.60 a troy ounce. "Tepid demand has led to a
significant increase in exchange inventories," ING analysts say in
a note. "LME copper inventories increased to a fresh one-year high
of 164,000 tons with inflows of around 110,000 tons since
mid-July," they say, noting that net longs for copper in London
have fallen to a three-month low amid weak demand in China.
Oil Rises on Shortage Concerns
0732 GMT - Crude oil prices are rising, as worries over supply,
stemming from Saudi-led production cuts, provide support to energy
markets. Brent crude is up 0.5% to $92.86 a barrel while WTI is
0.8% higher at $91.11 a barrel. "The likelihood of $100 a barrel
has certainly increased following Saudi Arabia and Russia's
decision to extend cuts to oil production and exports earlier this
month," according to Vivek Dhar, analyst at Commonwealth Bank of
Australia. Dhar says in a note that both OPEC and the IEA forecast
of deficits should mean prices are well supported, with the only
major caveat being worries over global economic growth. "We
continue to believe though that global growth concerns will weigh
more materially on global oil demand when labor markets loosen."
Lithium Prices Likely to Drift Lower, Says Jefferies
2310 GMT --With global and Chinese demand for electric vehicles
stalling, and continued supply growth in the market, Jefferies
expects lithium prices to drift lower into the year-end. In a note,
analyst Mitch Ryan says a forecast for lithium carbonate to average
US$38,397/ton this year is 22% lower than what he had projected
before. That reflects deep cuts to price forecasts for 3Q and 4Q.
The bank "would need to see a strong resurgent demand in auto sales
for lithium prices to recover which may be a multi-year boom/bust
trend," Ryan adds. Jefferies drops its price target for Pilbara
Minerals by 9% to A$5.00/share. Pilbara Minerals ended Tuesday at
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(END) Dow Jones Newswires
September 27, 2023 08:38 ET (12:38 GMT)
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