Halliburton and Its Rivals Can't Wait to Get Back Into Venezuela -- Commodities Roundup

MARKET MOVEMENTS:

-- Brent crude oil rises 0.8% to $64.26 a barrel.

-- European benchmark gas is up 10.5% to 36.63 euros a megawatt-hour.

-- Gold futures are down 0.2% to $4,615.10 a troy ounce.

-- LME three-month copper futures are down 2.7% to $12,787 a metric ton.

TOP STORY:

Halliburton and Its Rivals Can't Wait to Get Back Into Venezuela

America's top oil producers have expressed hesitancy about rushing back to Venezuela, but the companies that provide them with equipment and expertise are raring to go.

"We left only because of the U.S. sanctions that were put in place and have effectively been evaluating how to return ever since," Halliburton Chief Executive Officer Jeff Miller said in an interview. "I see this as that moment in time where we get to execute on plans to return."

OTHER STORIES:

Trump to Push Plan for Tech Companies to Fund New Power Plants

WASHINGTON-The Trump administration is planning to propose that the nation's largest power grid operator hold an emergency auction in which tech companies would bid to have new power plants built, according to people familiar with the matter.

The directive, expected Friday, would be an unprecedented attempt by the federal government to check rising electricity prices within PJM Interconnection, a 13-state power market spanning from New Jersey to Kentucky. The build-out of data centers there in response to the artificial-intelligence boom is straining the grid's capacity and has resulted in substantially higher costs in several of the grid operator's recent power auctions.

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As Tech Giants Get More Hands-On With Energy, Their Risks Rise

Tech giants are sick of waiting around for electricity. But locking in future power means taking on more upfront risk.

The race to build up more AI data centers has created a strain on the existing power grid while also bottlenecking the ambitious plans of the world's largest tech companies. AI systems consume far more energy than more typical servers and other computing gear, but new energy generation facilities don't exactly go up overnight. As a result, companies better known for driving advertising clicks and social network likes are now diving into the power business.

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European Gas Price Climbs on Cold Snap, Tight Inventories

European natural-gas prices surged on expectations of another late-month cold snap boosting heating demand, while inventories remained well below historical averages.

In midmorning trading on Friday, the Dutch TTF benchmark climbed 6.1% to 35.18 euros a megawatt-hour, putting prices on track for a weekly gain of more than 20%.

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Equinor Can Resume Work on Offshore Wind Project Trump Tried to Halt

Work on New York's Empire Wind project can resume after a federal judge on Thursday said he wasn't convinced construction had to stop immediately.

At a hearing in Washington, D.C. on Thursday, U.S. District Judge Carl Nichols said Empire Wind-being developed by Norwegian company Equinor -proved it would "suffer irreparable harm" by the current hiatus the Trump administration ordered last month. He said the harm from the suspension "outweighs the harms laid out by the government in this stage" of the construction.

MARKET TALKS:

Oil Futures Pick Up After Selloff

0934 ET - Oil futures are recovering some of the ground lost the previous session when markets saw reduced risk of U.S. strikes against Iran. Crude is "trying to hold a bullish structure after trading in a $6.00 range the past week," Dennis Kissler of BOK Financial says in a note. Lack of progress in Russian/Ukraine peace efforts looks supportive of prices, along with additional sanctions to be set against Iran, he says. "While it seems the geopolitical aspects have cooled for now, the U.S. is said to be sending yet another major warship to the Middle East which is signaling to traders that Iran will be under extreme scrutiny." WTI is up 1.6% at $60.12 a barrel and Brent is up 1.5% at $64.74. ([e-mail])

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Silver Headed for Weekly Gain of 15% Despite Pullback -- Market Talk

0950 GMT - Silver prices are on track for a weekly gain of 15% after hitting a fresh record earlier this week, despite a recent pullback following the Trump administration's decision to hold off on imposing import tariffs on critical minerals. "Silver continues to attract speculative interest, increasingly from both buyers and sellers, resulting in erratic price swings and challenging trading conditions," analysts at Saxo Bank say. Physical market tightness is beginning to ease as silver moves from Comex warehouses back to Europe, and pressure on industrial users from high prices could help rebalance the market, according to the bank. However, strong speculative demand in China persists, with Shanghai prices trading nearly $10 above London. ([e-mail])

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European TTF Gas on Track for Weekly Gain of More Than 20% -- Market Talk

0926 GMT - European natural-gas prices extend their rally, hovering near 35 euros a megawatt hour as forecasts of colder weather across parts of Europe raise concerns over supply. The benchmark Dutch TTF contract is up 5.2% to 34.88 euros in early trading and is headed for a remarkable weekly gain of 23%. Meanwhile, according to industry group Gas Infrastructure Europe, gas storage levels are now below 52% full, below the five-year average. "We have been warning about the potential for a short-covering rally in the market, given the sizable short position that funds held in TTF through the early part of winter," ING analysts say. "Investment funds have already reduced their net short in TTF from 92.76 terawatt hours in mid-December to 55.14 terawatt hours currently." ([e-mail])

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Copper Back Below $13,000 on Profit-Taking, Speculative Interest Concerns -- Market Talk

0909 GMT - Copper prices slump back below the $13,000 mark as investors book profits after the base metal hit a fresh record last week. "This week the market was reminded of the strong demand dynamics in China, with imports remaining near record highs," ANZ Research analysts say. "However, a surge in investor appetite for real assets such as commodities in recent weeks has raised concerns that recent gains have been driven by speculators." Copper futures on the London Metal Exchange are down 2.1% to $12,873.50 a metric ton. Meanwhile, aluminum trades 1.4% lower to $3,128.50 a ton. ([e-mail])

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London-Listed Miners Fall on Lower Metal Prices -- Market Talk

0902 GMT - London-listed miners weigh heavily on the blue-chip index following falls in metal prices as easing geopolitical tensions help temper safe-haven demand. Antofagasta is leading the index down 2.1%, while Rio Tinto, Anglo American and Glencore lose 2.1%, 1.8% and 10%, respectively. Gold futures in New York fall 0.3% to $4,608.40 a troy ounce, while silver futures are down 1.5% to $90.97. ([e-mail])

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Gold Edges Lower But Remains on Track for Weekly Gain -- Market Talk

0855 GMT - Gold prices slip in early trading after the latest U.S. data showed unemployment claims dropped last week, lowering probabilities of imminent interest-rate cuts by the Federal Reserve. Futures in New York fall 0.3% to $4,608.40 a troy ounce, also weighed down by easing demand for safe-haven assets as fears of imminent U.S. military action in Iran fade. Bullion, however, is still on track for a weekly gain of more than 2% after hitting a fresh record earlier this week. Meanwhile, silver futures are down 1.5% to $90.97 after the Trump administration held off on imposing import tariffs on critical minerals, but the precious metal is up nearly 15% on the week. ([e-mail])

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Crude Futures Mixed But Iran Concerns Subside -- Market Talk

0841 GMT - Oil prices are mixed as traders weigh risks of supply disruptions, though concerns over imminent U.S. military action in Iran have faded. "While risks have eased somewhat, they remain significant, keeping the market nervous in the short term," ING analysts say. "However, the longer this goes on without any U.S. intervention, the risk premium will continue to fade, allowing more bearish fundamentals to dominate." Meanwhile, the ICE Brent prompt timespread--the price difference between near-term and later-dated Brent contracts--suggests some supply tightness in the spot market, likely due to reduced oil exports from Kazakhstan through the Caspian Pipeline Consortium terminal, the analysts say. Brent crude slips 0.1% to $63.70 a barrel, while WTI rises 0.5% to $58.47 a barrel. ([e-mail])

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Glencore, Rio Tinto Merger Has Legs -- Market Talk

0731 GMT - A tie-up between miners Glencore and Rio Tinto looks increasingly likely to go ahead, RBC Capital Markets analyst Ben Davis tells investors in a note. The pair said last week that they were in talks over a deal that would create the world's largest miner, valued in the hundreds of billions of dollars. A merger that was until recently dismissed as unserious "has now found its sweet spot after a strong copper rally, heightened resource scarcity fears and an Argentina turnaround," Davis says. The deal has momentum, though it won't be straightforward, he adds. ([e-mail]; @joshualeokirby)

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Oil Likely Rangebound Unless Chinese Demand Recovers, Supply Faces Shortfall -- Market Talk

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01-16-26 1019ET