Octopus Energy to Spin off AI Arm Kraken to Create Potential $15 Billion Software Platform — Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 0.6% to $68.36 a barrel

--European benchmark gas is up 1.8% to 32.98 euros a megawatt-hour

--Gold futures are down 1.2% to $3,673 a troy ounce

--LME three-month copper futures are down 0.4% to $9,935.50 a metric ton

TOP STORY:

Octopus Energy to Spin Off AI Arm Kraken to Create Potential $15 Billion Software Platform

British renewable-energy startup Octopus Energy is spinning off its artificial intelligence arm, Kraken, in what could create a stand-alone entity worth $15 billion.

Kraken has operated in Octopus's shadow but has helped power its parent to unicorn status as the startup provides renewable energy to British and European consumers. Based on its last funding round in 2024, Octopus was valued at over $9 billion.

The company is now looking to spin off the golden goose as demand for Kraken, which serves as an AI platform designed for energy and utility companies, grows. Kraken serves companies with some 75 million customers and has annual recurring revenue of $500 million. Its customers include French energy giant EDF, Australian utilities firm Origin Energy and Japan's Tokyo Gas, which use the Kraken software within their business. Origin has a 22.7% stake in Octopus Energy.

OTHER STORIES:

Equinor Says Worker Died Following Norwegian Oil Refinery Accident

Equinor said a worker died in an accident at its Mongstad oil refinery in Norway, bringing all non-essential activity at the plant to a halt until further notice.

Some of the refinery's production was already shut down due to continuing maintenance, but the remaining production is currently unaffected, an Equinor spokesperson said.

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Santos Confirms XRG Consortium Pulls $18.7 Billion Takeover Bid

SYDNEY--Santos confirmed that a consortium led by Abu Dhabi National Oil Co. has abandoned a $18.7 billion takeover offer, highlighting disagreements over terms given the length of time it could take for a deal to complete.

Santos said it was informed by the consortium fronted by Adnoc unit XRG of its intention to withdraw the indicative bid on Wednesday evening. The Australian company had signaled it would have recommended its shareholders support an offer worth US$5.626 a share.

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Exxon Mobil to Halt European Recycling Plant Investments

BRUSSELS--Energy giant Exxon Mobil is halting more than $100 million in planned investments for two European chemical recycling projects because of concerns over new rules that the company says will undermine the projects' business case.

Exxon senior vice president Jack Williams said the projects, which it had planned to develop in Belgium and the Netherlands, are now on hold. A European Union proposal on chemical recycling threatens to curb the amount of recycling credits the company can claim for processing that takes place at existing petrochemical plants, he said.

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Commercial Metals to Expand Construction Portfolio with $675 Million Buy

Commercial Metals will buy Concrete Pipe & Precast for $675 million in cash, a deal it said will expand its commercial portfolio in early-stage construction and increase the breadth of its participation on job sites.

The Irving, Texas, steelmaker said Thursday that the buy will immediately establish a scalable growth platform for the company, while also better positioning it to capitalize on construction trends.

MARKET TALKS:

U.S. Natural Gas Falls Ahead of Storage Data -- Market Talk

0938 ET - U.S. natural gas futures are lower awaiting the EIA's weekly inventory report due at 10:30 a.m. ET. The inventory data "may provide a catalyst to help prices break in either direction-but the market appears to be finding a short-term equilibrium between bullish and bearish risks," Eli Rubin of EBW Analytics says in a note. Analysts in a WSJ survey expect a storage injection of 78 Bcf, which would nudge the surplus over the five-year average up to 192 Bcf from 188 Bcf the week before. Nymex natural gas is off 1.8% at $3.043/mmBtu. (anthony.harrup@wsj.com)

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Oil Futures Little Changed in Early U.S. Trade -- Market Talk

0928 ET - Oil futures are flitting between small gains and losses as the market waits to see what additional sanctions the EU will impose against Russia. The possibility of disruptions in Russian oil supply has supported prices the past week, while concerns about higher OPEC+ output keeps a lid on gains. This week's large U.S. crude inventory draw and the Fed's interest rate cut "have helped to keep the losses in check," ING strategists Ewa Manthey and Warren Patterson say in a note. WTI is flat at $64.05 a barrel and Brent edges up 0.1% to $68.01. (anthony.harrup@wsj.com)

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Corn Supported by Global Economics -- Market Talk

0925 ET - CBOT corn futures are down 0.2% premarket as traders sift through the export sales report showing relatively robust corn sales. The low price of corn futures in Chicago makes them more competitive for foreign buyers, as the U.S. dollar index slides and the Brazilian real goes higher, says ADM Investor Services in a note. "U.S. export prices remain competitive vs South American nearby prices," says ADMIS. The Fed's 25 basis point rate cut is also buoying the strength of U.S. corn. Soybean futures are also down 0.2% premarket, while wheat rises 0.3%. (kirk.maltais@wsj.com)

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Gold Trims Earlier Declines But Remains Lower After Jobs Data, Fed Rate Cut -- Market Talk

1315 GMT - Gold prices pare some earlier losses but remain in negative territory, with futures down 0.5% to $3,700.10 a troy ounce. The latest U.S. figures showed the number of Americans who newly filed for unemployment benefits declined sharply last week, though broader data signaled the labor market is weakening across the country. Over the past three months, the U.S. economy added fewer than 30,000 jobs a month on average, down from a rate well above 100,000 a month earlier this year. Gold fell more than 1% earlier in the session as investors interpreted the Federal Reserve's policy outlook as less dovish than previously expected, despite a rate cut and signals of further easing. Meanwhile, the U.S. dollar index trades 0.3% higher at 97.20. (giulia.petroni@wsj.com)

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Base Metals Edge Lower on Firmer U.S. Dollar -- Market Talk

1304 GMT - Base-metal prices slip in afternoon trade on a stronger U.S. dollar, after the Federal Reserve cut interest rates but also emphasized its meeting-by-meeting stance on future policy. Copper futures on the London Metal Exchange are down 0.2% to $9,949 a metric ton, while aluminum edges 0.1% lower to $2,697 a ton. The dollar index instead trades 0.3% higher at 97.15. Lower borrowing costs typically weaken the greenback, making dollar-denominated commodities cheaper for holders of other currencies. However, a rise in LME copper inventories and higher output of refined copper in China are weighing on sentiment, analysts at ANZ say. (giulia.petroni@wsj.com)

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Crude Palm Oil Ended Lower on Soybean Oil Weakness -- Market Talk

1027 GMT - Crude palm oil ended lower on weaker soybean oil prices, according to David Ng, a trader at Kuala Lumpur-based Iceberg X. The recent strength in ringgit may affect overall demand for palm oil, Ng adds. He sees prices supported above 4,400 ringgit a ton and resistance at 4,530 ringgit a ton. The Bursa Malaysia Derivatives contract for December delivery fell 41 ringgit to 4,434 ringgit a ton. (tracy.qu@wsj.com)

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Mixed U.S. Crude, Distillate Inventory Figures Raise Demand Concerns -- Market Talk

0920 GMT - The latest U.S. inventory figures were mixed, as a big crude draw was tempered by rising distillate stocks, fueling concerns over the demand outlook. Commercial crude oil stocks plummeted by 9.3 million barrels driven a massive drop in net crude imports, while distillate fuel stocks jumped by 4 million barrels and were 8% below the five-year average for the time of year. "Net imports are volatile by nature, and the market might view it as a low-quality beat when the drop in net exports was the only driver behind the declining oil inventories," analysts at DNB Carnegie say. "We also note that distillates, the star performer in the oil products market over the last months, continue to build and have caught up with last year's level." (giulia.petroni@wsj.com)

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China Solar Recovery Set to Gain Momentum Amid Supply-Side Reforms -- Market Talk

0851 GMT - China's solar sector is set to extend its recovery, with top-tier polysilicon producers' margins possibly turning positive from September, says Deutsche Bank's Gary Zhou. The bank notes polysilicon prices are rising, and wafer producers are building inventory in anticipation of further price gains. While planned outputs for wafer, solar cells and panels are set to increase in September, polysilicon output is expected to decline 3% on month. Zhou attributes this to Beijing's crackdown on unhealthy competition, aimed at curbing polysilicon supply and supporting price recovery. The analyst expects further updates on supply-side reform from industry talks in coming weeks. DB keeps GCL Tech as its top pick in the sector, citing its long-term cost advantage and its position as a key beneficiary of supply-side reforms. (jason.chau@wsj.com)

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Gold Still Has Positive Outlook Despite Recent Softness -- Market Talk

0841 GMT - Gold still has a positive outlook despite recent weakness, Julius Baer's Carsten Menke says in a research note. Gold's recent price drop looks a lot like a classic "buy the rumor, sell the fact" situation, considering how widely the Federal Reserve's interest-rate cut was expected, Menke says. The reaction reflects profit-taking in the short term, Menke notes. Such profit-taking is healthy and shouldn't be mistaken as a sign of a changing fundamental backdrop, Menke adds. Julius Baer keeps a constructive view on gold. Spot gold is little changed at $3,656.37/oz. (tracy.qu@wsj.com)

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Oil Slips After Fed Rate Cut, Mixed U.S. Demand Signals -- Market Talk

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September 18, 2025 10:33 ET (14:33 GMT)