MARKET MOVEMENTS:
–Brent crude oil is down 1.9% to $62.07 a barrel
–European benchmark gas is up 0.8% to 31.74 euros a megawatt-hour
–Gold futures are up 0.3% to $4,144.40 a troy ounce
–LME three-month copper futures are down 2.1% to $10,568 a metric ton
TOP STORY:
BP Expects Boost From Higher Upstream Production But Warns of Weak Oil Trading Result
BP expects a rise in upstream production and higher refining margins in its products segment to boost earnings, but warned of a weak contribution from its oil trading division.
The company is in the midst of a strategic reset and review of its portfolio as it seeks to shore up its balance sheet amid declining profitability and pressure from an activist investor.
The British energy major said Tuesday that upstream production for the third quarter will be higher than the previous three months, driven by increased gas production at its U.S. shale business BPX energy and from its gas and low-carbon energy segment.
OTHER STORIES:
IEA Forecasts Bigger Oil Surplus, With Global Inventories Soon Set to Rise
The oil market is facing an even larger surplus than previously anticipated, with global inventories soon poised to rise as large crude shipments make their way to major hubs, the International Energy Agency said in its closely watched monthly report.
The Paris-based organization now forecasts oil-supply growth of 3 million barrels a day this year and 2.4 million the next, from earlier estimates of 2.7 million and 2.1 million barrels a day, respectively. Global demand, however, is expected to grow by 710,000 barrels a day and 699,000 barrels a day over the periods.
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Spain's Grid Operator Denies Risk of Imminent Power Blackout After Sharp Voltage Swings
Spain's electricity-grid operator said there was no risk of an imminent second major blackout in the country after detecting two sharp voltage variations in recent weeks.
Red Electrica which operates Spain's grid, and in which the Spanish government owns a 20% stake, said the recent voltage swings didn't pose a risk to the supply of electricity because they didn't surpass the acceptable limits.
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Alterra's Plan to Unlock Climate Investments Targets Developing World
Clean-energy investor Alterra aims to foster $250 billion in climate investments worldwide by 2030 and is looking to developing countries as it strives to meet that goal, a plan that also reflects efforts by the United Arab Emirates to expand its economy beyond fossil fuels.
Part of Alterra's plan involves backing funds sponsored by large private-equity managers as an early investor to bolster their fundraising. To that end, Alterra has pledged roughly $6.5 billion across funds managed by BlackRock, Brookfield Asset Management and TPG, including co-investment vehicles as well as pools dedicated to emerging markets.
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Ford Cuts Production of Five Trucks, SUVs After Fire at Aluminum Supplier
Ford Motor is temporarily cutting production of at least five models including popular SUVs after a devastating fire at a crucial aluminum supplier's plant.
Starting this week, Ford isn't producing its lucrative three-row SUVs, the Expedition and Lincoln Navigator, at its Kentucky Truck Plant because of the difficulties with aluminum supply, an official from the United Auto Workers told members at the plant last week. The SUV pause is set to last a week, according to a memo the company sent to workers and viewed by The Wall Street Journal. The memo didn't specify the reason for the move.
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Brazilian Rare Earths Raises $78 Million to Accelerate Brazil Projects
Brazilian Rare Earths, an Australian company backed by mining billionaire Gina Rinehart, raised 120 million Australian dollars, equivalent to $78 million, to accelerate the development of its rare-earths projects in Brazil.
The company said Tuesday it received firm commitments for 25.6 million new shares at an issue price of A$4.68 each, in line with its five-day trading average. Shares rose 7.8% by mid-afternoon in Sydney.
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Rio Tinto 3Q Iron-Ore Shipments Flat On-Year; Boosts Annual Bauxite Forecast
Rio Tinto reported flat third-quarter iron-ore shipments from its huge Australian operations and upgraded its annual production forecast for aluminum-rich bauxite in the first set of results under new chief executive Simon Trott.
The world's second-biggest miner by market value said that in the three months through September it shipped 84.3 million metric tons of iron ore from mines in Australia's Pilbara region, which account for the bulk of its profits.
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McEwen Agrees to Acquire Canadian Gold
McEwen is set to acquire all the shares of Canadian Gold.
The two companies said Tuesday that they have entered into a definitive agreement whereby McEwen will acquire all of the issued and outstanding common shares of TSX Venture-listed Canadian Gold by way of a statutory plan of arrangement.
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China Defends Rare-Earths Controls, Says Door to Talks Still Open
China's commerce ministry defended the country's rare-earth exports controls on Tuesday, saying it had given the U.S. advance notice of the measures, a source of tension between the world's two largest economies.
In its latest explanation of the recently imposed cubs on rare earths--critical materials used for everything from electronics to cars--the ministry said China's restrictions do not amount to a ban. They are intended to protect China's national security, and the stability of global industrial and supply chains, it said in a statement.
MARKET TALKS:
Brazilian Soybean Farmers Eye Replanting Amid Improving Weather -- Market Talk
0941 ET - Brazilian farmers are in the process of planting soybean crops, with the Brazilian planting season extending through the start of 2026. Farmers there are reporting "inadequate germination" for the soybeans they've so far planted, says Michael Cordonnier of Soybean And Corn Advisor, due to dry weather not providing the proper moisture. "That is always a concern in central Brazil if farmers plant after the first rain with subsequent rains delayed for several weeks," says Cordonnier in a note. He adds that replanting will cost farmers, but at the same time may not have a noticeable impact on yields. CBOT grain futures are lower, with soybeans down 0.5%, corn off 0.2%, and wheat 0.7% lower. (kirk.maltais@wsj.com)
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Oil Futures Resume Decline on Trade Tensions, Oversupply Fears
0920 ET - Oil futures are back in the red as the U.S. and China impose port fees on each other's ships, keeping trade tensions alive as the market also frets about oversupply. The IEA's monthly report was "unusually bearish," adding to downside momentum, Ritterbusch says in a note. The Paris-based agency raised its supply growth estimates for both this year and 2026, while lowering slightly its 2025 demand growth outlook. "While the charts may suggest further WTI decline to the $55 area from here, a sharp upside reversal could develop on any indications out of the White House that Trump discussions with the Chinese president may go ahead as scheduled," Ritterbusch says. WTI is down 2.1% at $58.23 a barrel, and Brent is 2.1% lower at $62.00 a barrel. (anthony.harrup@wsj.com)
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U.S. Natural Gas Pressured By Mild October Weather -- Market Talk
0917 ET - U.S. natural gas futures are lower with mild October weather maintaining downward pressure while buoyant LNG flows provide some support. The heat driving power-sector demand in the central U.S. is expected to ease, and warmer temperatures in the northeast and northern plains will limit early season heating demand, Gary Cunningham of Tradition Energy says in a note. "The pivot in forecasts is causing adjustments to projections on storage, with outlooks now showing strong injections for the next few weeks, which in turn is pulling prices for early 2026 lower." The November contract is likely to find support at $3.03 with any rallies capped at $3.13 resistance, he adds. November gas is down 2.5% at $3.041/mmBtu. (anthony.harrup@wsj.com)
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Long Gold Is Most Crowded Trade, BofA Survey Finds -- Market Talk
1403 GMT - A majority of investors consider being long gold to be the most crowded trade, Bank of America's October global fund manager survey shows. A total of 43% of investors cite long gold in this category, overtaking long 'Magnificent 7'--Apple, Microsoft, Amazon, Alphabet, Meta Platforms, Nvidia and Tesla--at 39%. This month, 39% of investors polled said their current gold position was closest to 0%, while 19% have a 2% allocation, and 16% have a 4% allocation. The weighted average allocation to gold is just 2.4%, according to the survey. A long position is where investors buy an asset in the expectation that it will increase in value. (emese.bartha@wsj.com)
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Palm Oil Falls, Likely Reflecting Oversupply Worries -- Market Talk
1027 GMT - Palm-oil prices closed lower, reversing earlier gains. Persistent concerns over rising inventories and slowing demand from India likely capped upside potential for the commodity, Kenanga Futures writes in a note. The Bursa Malaysia Derivatives contract for December delivery fell 39 ringgit to 4,460 ringgit a ton. (kimberley.kao@wsj.com)
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China Could Roll out Measures to Curb Competition in Solar Industry -- Market Talk
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October 14, 2025 11:25 ET (15:25 GMT)
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