MARKET MOVEMENTS:
–Brent crude oil is down 0.1% to $67.91 a barrel
–European benchmark gas is down 0.3% to 31.63 euros a megawatt-hour
–Gold futures are flat at $3,475.60 a troy ounce
–LME three-month copper futures are up 0.7% to $9,913 a metric ton
TOP STORY:
Trump Leans on National Security to Justify Next Wave of Tariffs
The Trump administration plans to expand national-security tariffs on steel, aluminum and a variety of other industries in coming months in hopes of redirecting production in these sectors to the U.S. and thwarting potential legal threats in the trade war.
Tariffs on steel and aluminum were expanded this month, covering more than 400 new product lines with 50% levies and increasing compliance costs for companies. Those charges will likely be broadened further, along with expansions of existing tariffs on copper and automotive parts.
New levies on sectors like semiconductors, heavy trucks, pharmaceuticals and ingredients, processed critical minerals, and commercial aircraft and parts, among others, are also likely to be unveiled in coming months.
OTHER STORIES:
Wood Group to Sell North America Transmission and Distribution Business for $110 Million
John Wood Group said it is selling its North American transmission-and-distribution engineering business to Qualus for $110 million, in line with its plan to sell noncore businesses.
The Scottish energy-services company--which is in talks with Dubai energy-services provider Sidara over a 207.55 million pounds ($280.4 million) takeover offer--said Friday that the sale follows a competitive auction process.
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Sandfire Resources Won't Jump Gun on Shareholder Returns
Sandfire Resources' shrinking debt load puts it on course to resume shareholder returns in the not too distant future, although its chief executive cautions the company intends to tread carefully to protect its strengthening balance sheet.
It has been three years since Australia-listed Sandfire paid a dividend, and analysts have forecast payouts could resume as early as February, when the miner reports its first-half results for fiscal 2026.
MARKET TALKS:
Winter LNG Competition Likely to Push European Gas Prices Higher -- Market Talk
1200 GMT - The benchmark European gas futures contract TTF has fallen more than expected in recent weeks, but increased competition for LNG cargoes this winter will likely drive prices higher, according to BNP Paribas. "The lack of spot LNG demand in Asia-Pacific so far has enabled Europe to fill its gas stocks to a relatively comfortable level without having to pay a large premium," Aldo Spanjer says. But LNG imports in the Asia-Pacific region are expected to rise due to colder weather, delays in nuclear reactors' operations in South Korea, and gas-supply issues in Bangladesh, according to the head of energy strategy. BNP forecasts TTF will reach 40 euros a megawatt hour this winter, from around 32 euros currently. (giulia.petroni@wsj.com)
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Gold Futures Fall But Keep Near Record Highs on Safe-Haven Demand -- Market Talk
1108 GMT - Gold futures fall, but remain close to record highs on escalating concerns about the U.S. Federal Reserve's independence. Futures are down 0.3% at $3,464.0 a troy ounce, but are on track to end the week 1.3% higher. The precious metal trades at the upper end of a range in place since mid-May, Commerzbank analysts say in a note. After President Trump's move to dismiss Fed Gov. Lisa Cook, the market is becoming increasingly concerned the Fed's independence is being undermined, analysts say. This is driving a flight to safe-haven assets like gold. Still, gold is unlikely to sustain its breach of the recent trading range just yet, Commerzbank says. Recent political and economic turmoil is relatively unlikely to be repeated and interest-rate cut expectations are already mostly priced in, analysts say. (joseph.hoppe@wsj.com)
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Palm Oil Ends Down; Might See Support at MYR4,200/Ton -- Market Talk
1026 GMT - Palm oil futures ended lower. Prices have retreated from the upper bound of a short-term uptrend in mid-August, pressured by strength in the ringgit that makes it more expensive for foreign buyers, Darren Lim of Phillip Nova writes in a note. Lim sees support at 4,320 ringgit, with stronger support at 4,200 ringgit. The Bursa Malaysia Derivatives contract for November delivery fell 72 ringgit to 4,377 ringgit a ton. (kimberley.kao@wsj.com)
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Base-Metal Prices Rise in Thin Trading -- Market Talk
0933 GMT - Base-metal prices rise in muted trading, with LME three-month copper up 0.7% at $9,908.0 a metric ton and LME three-month aluminum up 0.3% at $2,615.50 a ton. Base-metal prices have been relatively stable recently, as U.S. interest-rate cut expectations and supportive regulation is offset by looser physical markets and weaker Chinese economic data, Goldman Sachs analysts say in a note. Support for aluminum prices from Chinese policies--involving measures and regulations to cut production and curb price wars--will likely be short-lived, Goldman says. Equally, LME copper prices should be stable toward the end of the year, with no near-term risk of a copper shortage and global inventories building, analysts write. Goldman retains its year-end LME copper price expectation of $9,700 a ton, and remains bearish on LME aluminum. (joseph.hoppe@wsj.com)
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Oil Market Braces for Supply Surplus, But Demand Trends Will Also Be Crucial
0915 GMT - A looming supply surplus hangs over the oil market, but its extent largely depends on the evolution of the demand outlook, Commerzbank Research's Barbara Lambrecht says. If sentiment indicators for China, Europe, and the U.S. improve more than most analysts expect in the coming days, the global consumption outlook could also brighten. "After all, most countries are benefiting not only from the decline in oil prices, but also from the depreciation of the U.S. dollar," the commodity analyst says. In euros, a barrel of Brent crude is currently about 20% cheaper than at the start of the year, according to the firm. Plus, strong travel activity over the coming Labor Day weekend in the U.S. could further boost demand. (giulia.petroni@wsj.com)
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BP Looks on Track to Meet 2025 Disposal Targets -- Market Talk
0906 GMT - BP's strategic review of Castrol continues to progress at speed and the lubricants business remains a prime asset for disposal, RBC Capital Markets analysts write after speaking to finance chief Kate Thomson. The sale of Castrol and solar business Lightsource BP would help the company meet its net-debt targets, they write. BP continues to expect $3 billion to $4 billion in divestment proceeds this year, with $3 billion in sales already agreed, they add. The oil major has so far received $1.7 billion in proceeds and expects most of the remaining amount in the fourth quarter of the year, they write. BP has other sales that it expects to complete by the end of the year, they write. Shares trade up 1.2% at 434.30 pence. (adam.whittaker@wsj.com)
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Oil Surplus, U.S. Tariff Concerns Keep Outlook Bearish
0857 GMT - Oil's outlook remains bearish, with WTI net longs standing at their lowest level since the 2008 financial crisis on concerns over the impact of U.S. tariffs and a looming supply surplus, according to BMI. "U.S. Federal Reserve Chairman Jerome Powell's dovish Jackson Hole speech helped to boost risk assets, and expectations for an upcoming U.S. rate cut and a weaker dollar may have lent some support to Brent," analysts at the firm say. "However, investors are unlikely to back any sustained rally in oil against a looming supply glut." BMI forecasts Brent to average $68 a barrel this year and $67 a barrel the next, but says risks are tilted to the downside. (giulia.petroni@wsj.com)
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European Gas Poised for 6% Weekly Loss as Storage Levels Approach Target -- Market Talk
0824 GMT - European gas prices are set for a weekly loss of more than 6%, as the region continues to replenish its inventories despite lower Norwegian flows due to maintenance works. In early trading, the benchmark Dutch TTF contract is down 0.6% to 31.52 euros a megawatt hour. "Europe is heading into the winter better prepared than predicted a few months ago," ANZ Research analysts say. "Fuel storage sites are more than 76%, putting them on track to reach 80% within a month, a level they are legally required to meet by Nov. 1." Prices are also supported by increased availability of LNG cargoes as China scales back its imports due to ample domestic supplies. (giulia.petroni@wsj.com)
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Oil Caught Between Demand Concerns, Geopolitical Risks
0749 GMT - Oil prices slip in early trading but remain on track for a modest weekly gain, as traders balance concerns over softer demand heading into the fall and risks of disruption to Russian supplies. Brent crude and WTI are both down 0.6% to $67.57 and $64.19 a barrel, respectively. Both benchmarks settled higher in the previous session, supported by Ukraine's attacks on Russian energy infrastructure and German Chancellor Friedrich Merz reportedly saying direct talks between Russia's Vladimir Putin and Ukraine's Volodymyr Zelensky wouldn't happen. "The lack of progress toward a peace deal means risks of sanctions and secondary tariffs continue to hang over the oil market," analysts at ING say. However, growing fears of a looming supply glut later this year are clouding the market's outlook, capping price gains despite a higher geopolitical-risk premium. (giulia.petroni@wsj.com)
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Aluminum Gains on Supply Constraints -- Market Talk
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August 29, 2025 09:16 ET (13:16 GMT)
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