-- Brent crude oil is down 0.1% at $87.08 a barrel.
-- European benchmark gas is up 0.1% to EUR49.34 a
-- Gold futures are down 0.1% at $1,984.60 a troy ounce.
-- LME three-month copper futures are down 0.7% at $8,024.50 a
-- Wheat futures are up 0.4% to $5.83 a bushel.
Why the Shine Has Come Off Clean-Energy Stocks
Clean-energy stocks have fallen out of favor, with pressures
created by rising interest rates outweighing supportive government
The iShares Global Clean Energy ETF reached its lowest level
since July 2020 this week. The exchange-traded fund invests in
renewable-energy companies and utilities in line with a benchmark
compiled by S&P Dow Jones Indices, including First Solar and
Plug Power. It has plunged 33% this year.
Some stocks have fallen even harder. U.S.-listed Enphase Energy
has shed 64% in 2023, while competitor SolarEdge Technologies has
sunk more than 70%. Excluding stocks that have been ejected from
the S&P 500, SolarEdge ranks as the index's worst performer
Supply-chain problems and waning demand have added to the
challenges created by higher borrowing costs. The result: a
stock-market selloff despite commitments by the U.S. and other
large economies to foster sustainable power generation.
Exxon, Chevron Look to the West in an Increasingly Uncertain
As the world becomes more dangerous, the two largest Western
crude producers are focusing their investments closer to home.
Chevron on Monday announced that it was acquiring Hess in a $53
billion deal that gives it access to one of this century's biggest
oil finds in the South American country of Guyana and allows it to
double down on shale by expanding its presence to North Dakota.
Both regions are established oil producers with limited
geopolitical tensions, affording Chevron new reserves with fewer
The deal follows a megadeal in the U.S. shale patch by Exxon
Mobil, which this month acquired Pioneer Natural Resources in a $60
billion merger that anchors its future to the prolific Permian
Basin of West Texas and New Mexico.
The back-to-back acquisitions signal that the oil majors are
increasingly turning their attention to the Western Hemisphere as
international investments are complicated by the threat of
expanding regional conflicts, from Ukraine to the Middle East.
Sibanye-Stillwater Says More Than 4,000 Workers Could Be
Affected by Restructuring
Sibanye-Stillwater said that more than 4,000 employees and
contractors could potentially be affected by the proposed
restructuring of four shafts at its South Africa platinum group
metal operations, and that it will consult with unions and
The Johannesburg-listed precious metals miner said one of the
shafts ceased production in 2022 and that one other was at the end
of its operating life, adding that the remaining two required
restructuring so as to achieve sustainable production.
As an alternative to closure, it is proposing reducing the
workforce at two of the shafts, the company said.
Global Fossil-Fuel Demand to Hit New Record in 2024, Report
Global demand for fossil fuels is likely to hit a new record
next year, amid surging demand from Asia, according to a new
The Economist Intelligence Unit report said global demand for
coal, oil and gas is set to reach new heights in 2024, with high
commodity prices likely to spur investment into the sector.
Global energy consumption is likely to rise by 1.8% on year in
2024, with oil demand alone rising 1.7%. Much of this will be
spurred by demand from Asia, Latin America and the Middle East,
despite surging prices for energy, the EIU said Wednesday.
Fresnillo Drops After 3Q Output Falls, Costs Weigh
1017 GMT - Fresnillo shares drop nearly 2% after the Mexican
precious-metal miner reported lower third-quarter silver and gold
production, but stuck to its full-year guidance. Lower mining
grades in the quarter across the company's flagship silver mines
drove most of the production downturn, Citigroup says. Given the
run rate for the first nine months of 2023, full-year production is
most likely to be at the lower end of Fresnillo's guidance for both
silver and gold, Citi says. "The company has also flagged that cost
headwinds from inflation and currency headwinds are likely to
impact earnings in 2H23, implying limited room for softening in the
rate of cost increase," Citi analysts say in a note.
Palm Oil Rises in Possible Technical Rebound
1015 GMT - Palm oil ended higher, reversing earlier losses in a
possible technical rebound after prices fell to their lowest in
more than a week earlier in the session. Prices seem to have been
supported near MYR3,650/ton after retreating from the MYR3,700/ton
level, based on technical analysis, Lim Tai An, an analyst at
Phillip Nova, says in a commentary. The Bursa Malaysia Derivatives
contract for January delivery closed MYR15 higher at MYR3,682 a
SSAB's Solid Earnings Should be Well Received
0854 GMT - SSAB's solid earnings and cash flow delivery with
in-line guidance should be well received by the market, and could
be a catalyst for small positive revisions to full-year 2023
consensus estimates, Citi analyst Krishan Agarwal says in a note.
SSAB delivered a solid set of 3Q results with reported Ebitda 13%
ahead of Visible Alpha consensus, driven by steel pricing, and a
large beat on free cash flow, he says. SSAB also announced a SEK2.5
billion share buy back program, highlighting the continued strength
in its earnings and cash flow while 4Q guidance is largely in line
with current market expectations. "We expect shares to respond
positively to the strong print." SSAB B shares are last up 7.4%.
Metals Mixed as China Demand Remains Soft
0753 GMT - Metal prices are mixed in early trading in London,
with worries over demand keeping prices range-bound. Three-month
copper is down 0.4% at $8,045 a metric ton while aluminum is up
0.1% at $2,208 a ton. Gold, meanwhile, is down 0.2% at $1,982.90 a
troy ounce. Sucden Financial notes that Chinese support for the
economy has stepped up, after the government issued additional
sovereign debt and raised the budget deficit ratio. "We expect that
while these announcements are not game changers for the market, the
cumulative impact of policy support, especially in the form of
housing market aid, will help stabilize the demand for steel in Q4
2023 before a slight recovery next year," Sucden says.
Oil Continues Slide as Investors Eye Middle East Conflict
0736 GMT - Oil prices are continuing to slide, amid worries that
the wider Middle Eastern region could become embroiled in the
current conflict in Israel. Brent crude is down 0.5% to $86.74 a
barrel while WTI is 0.6% lower at $83.24 a barrel. "Although there
was no further escalation in the Israel-Hamas conflict yesterday,
the market remains on edge and the focus continues to be on any
further developments within the region," ING says in a note, adding
that markets should remain volatile due to the conflict.
Lynas's Extended License Smooths Pathway for Growth
0332 GMT - An extension to Lynas's Malaysian license takes the
pressure off the ramp-up of its new Kalgoorlie rare-earths plant in
Australia and opens the door to new growth opportunities, Macquarie
analysts say in a note. Lynas could upgrade the remaining two
trains at solvent extraction and product finishing, and lift the
processing capacity to 12,500 metric tons, or it could unlock
capacity at its Mt. Weld operation by changing its mining schedule,
the analysts say. "The excess cracking and leaching capacity could
also open opportunities to process concentrates from other
rare-earths miners in Australia," they add. They lift their target
on the stock by 3% to A$7.70 and keep an outperform rating. Lynas
is up 4.6% at A$7.13. (email@example.com; @RhiannonHoyle)
Lynas License Extension Seen Giving Production Boost
2344 GMT - The extension of Lynas's Malaysian license to 2026
should result in higher output of neodymium-praseodymium, or NdPr,
in FY 2025-26 than was anticipated before, Citi analyst Paul
McTaggart says in a note. "We've increased our NdPr production
forecasts 16%/8% in FY25/26 as we incorporate importing/processing
lanthanide concentrate in Malaysia until March 2026," McTaggart
says. Higher expected rare-earths production results in a 14% and
6% increase in earnings estimates for fiscal years 2025 and 2026
respectively, and a slight lift in Citi's target on Lynas to A$7.20
from A$7.15, he says. Lynas is up 3.7% at
Write to Barcelona Editors at firstname.lastname@example.org
(END) Dow Jones Newswires
October 25, 2023 07:38 ET (11:38 GMT)
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