Saudi Arabia Slashes August Crude Prices for Asia as Gulf Supplies Rebound — Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is down 0.3% to $71.94 a barrel.

--European benchmark gas is up 0.4% to 44.51 euros a megawatt-hour.

--Copper futures are up 0.2% to $13,388 a metric ton.

--Gold futures are up 0.8% to $4,156.80 a troy ounce.

TOP STORY:

Saudi Arabia Slashes August Crude Prices for Asia as Gulf Supplies Rebound

Saudi Arabia, the world's top oil exporter, sharply cut the price of its flagship crude grade for Asian buyers, selling it at a discount for the first time in years as Gulf supplies return to global markets.

State producer Saudi Aramco on Monday lowered the official selling price for August shipments of its Arab Light crude to Asia--the largest market for Middle Eastern oil--by $11 a barrel to a discount of $1.50 a barrel to the Oman/Dubai benchmark, down from a premium of $9.50 a barrel for July cargoes.

It is the first time Arab Light to Asia has been sold at a discount of $1.50 a barrel or more since Saudi Arabia's price war with Russia in 2020.

OTHER STORIES:

Italy's Eni Invests $225 Million in U.S. Startup EnergyX's Chile Lithium Project

Italian energy company Eni is buying a 25% stake in a Chilean lithium project owned by Energy Exploration Technologies for $225 million, raising its bet on the U.S. startup as it branches out into batteries and the critical minerals needed to make them.

Eni's stake gives it the rights to up to a quarter of future lithium production from the project, known as Black Giant, which could help supply a massive battery plant the company is developing in southern Italy at a time when demand for the critical mineral is forecast to rise sharply.

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BP to Sell Stake in Bay du Nord to Project Partner Equinor

BP said it would sell its non-operated interest in the Bay du Nord project in Canada, giving sole ownership to project partner Equinor.

The energy company said Monday that the sale of its 37.2% stake in the project is part of a simplification of its portfolio. Financial terms of the sale weren't disclosed.

MARKET TALKS:

Oil Futures Resist Slide Into Pre-Conflict Territory -- Market Talk

1225 ET - Crude futures are near pre-war levels while resisting further declines despite optimism about resumed oil flows through the Strait of Hormuz. Futures markets have been following headlines, and are usually more skeptical than they have been around the reopening of the strait, says Mark Malek, chief investment officer at Siebert Financial. While transit has picked up, insurance premiums remain well above pre-war levels as insurers await more clarity, and Iran appears determined to charge some kind of tolls for use the strait, he says. If the issues between the U.S. and Iran are resolved, futures prices could even come down further, but "I don't see a real solution in the near term," he adds. "Until all these issues are resolved, I don't see that the all-clear flags can be raised. WTI and Brent are practically unchanged at $68.67 and $72.10 a barrel, respectively. (anthony.harrup@wsj.com)

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Cattle Flat as Screwworm Cases Rise -- Market Talk

1039 ET - The USDA now reports 30 domestic cases of New World screwworm in the U.S., including the first case reported in July. Texas is still getting the brunt of the infections, but cattle traders continue to watch for updates from the USDA's Animal and Plant Health Inspection Service. "The outbreak remains geographically concentrated but continues to be closely watched for cattle movement, supply and animal-health implications" says Joe Davis of Futures International in a note. Live cattle futures are up 0.2%, while lean hogs are down 0.3%. (kirk.maltais@wsj.com)

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U.S. Natural Gas Futures Inch Up After July 4 Holiday -- Market Talk

1030 ET - U.S. natural gas futures start the week with modest gains with the market focusing on summer weather. The early July heat wave failed to lift prices, although there are signs of support, Eli Rubin of EBW Analytics says in a note. The July 4 holiday diminished the impact of the high temperatures on power-sector gas consumption, although "chances for a heat ridge rebuilding into the central U.S. in late July are supportive," he says, while a retreat in daily production at the weekend "defers a key bearish threat." Nymex natural gas is up 0.8% at $3.222/mmBtu. (anthony.harrup@wsj.com)

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USDA Plans for Fertilizer Help Come as Prices Sink -- Market Talk

1019 ET - Prices of one of the biggest ingredients in fertilizers, urea, are down sharply. They hit a year-high of $866 a ton in late April/early May in the midst of the U.S.-Iran war, but sank to $720 a ton as of late June--a decline of nearly 17%. While prices are now easing, help was nevertheless announced by the U.S. government last week to deal with any onerous costs. Ag Secretary Brooke Rollins announced $500 million in new aid designed to offset that rise in fertilizer prices. (kirk.maltais@wsj.com)

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Crude Futures Hover Near Pre-War Levels

0939 ET - Oil futures are hovering around their pre-conflict level with the market still optimistic about continued flow of oil through the Strait of Hormuz as the U.S. and Iran seek a long-term peace agreement. "I still think a lot of people are sitting on the sidelines, and they're not willing to do much risk at the moment," says Neil Crosby, head of research at Sparta Commodities. Oil appears to have reached its most bearish point as trapped tankers have left through the strait, Chinese imports are low, U.S. exports high, and there's still access to oil from strategic reserves. There's also a lot of Russian crude on the market because of attacks on their refineries, he says. WTI is down 0.1% at $68.62 a barrel and Brent is off 0.1% at $72.08. (anthony.harrup@wsj.com)

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Momentum Across Commodities Seen in Grains -- Market Talk

0917 ET - Momentum spread out across the entire commodities space is appearing in CBOT grain futures, with the most-active contracts up strongly ahead of today's open. "Corn and beans shot out of the gate last night and accelerated momentum that had been building into the holiday weekend," says Matt Zeller of StoneX in a note. Zeller says the below normal precipitation outlook alone isn't enough to support prices. CBOT corn rises 3.1% premarket, while soybeans climb 3% and wheat is up 1.8%. (kirk.maltais@wsj.com)

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Hot and Dry Outlook Lifts Grain Futures -- Market Talk

0908 ET - The latest projections from the National Weather Service are showing elevated temperatures spanning the U.S. Corn Belt while below-usual precipitation blankets most of the prime farming states in the middle of the country. The NWS's Climate Prediction Center says that below-normal rainfall is expected to be the case for a large area ranging from western North Dakota to central Tennessee--covering most Corn Belt states except for roughly half of Indiana and Ohio. This is expected to be seen through next week, according to the NWS. CBOT grain futures are up premarket on the latest forecasts, with corn rising 3.1%, soybeans climbing 3%, and wheat advancing 1.8%. (kirk.maltais@wsj.com)

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Palm Oil Rises; Prices Likely to Be Steady This Week -- Market Talk

1018 GMT - Palm oil rose in Asian trading. Prices are expected to remain relatively steady this week as concerns over lower oil prices are offset by Indonesia rolling out its B50 biodiesel mandate that requires a 50% palm oil-diesel blend, Nomura analysts write in a note. Nomura expects CPO prices to average around 4,500 ringgit a ton, but prices could decline to 4,400 ringgit a ton if exports weaken. The Bursa Malaysia Derivatives contract for September delivery rose 70 ringgit to 4,550 ringgit a ton. (kimberley.kao@wsj.com)

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Antofagasta's Growth Prospects Are Better Than Peers -- Market Talk

0944 GMT - London-listed copper miner Antofagasta has better medium-term growth prospects than its peers, J.P. Morgan analysts write as they upgrade the stock to overweight from neutral and raise its target price to 4,500 pence from 3,400 pence. The miner can grow its output by up to 30% by 2028 as its Centinela second concentrator project progresses, they add. This growth is relatively lower-risk than peers given it relies on expanding existing projects, they write. A tug of war for copper between the U.S. and China will keep prices elevated while supply-side risks could continue to tighten the market, the analysts write. Shares rise 0.2% to 3,877 pence. (adam.whittaker@wsj.com)

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Goldman Lowers Aluminum Price Forecast on Faster Mideast Supply Recovery -- Market Talk

0754 GMT - Goldman Sachs cut its aluminum price forecast, citing a faster-than-expected supply recovery in the Middle East. The bank now expects the global aluminum market to post a deficit of 100,000 metric tons in 2026, down sharply from its previous forecast of 720,000 tons, while raising its 2027 surplus estimate to around 1.5 million tons from 590,000 tons. Reflecting the weaker outlook, Goldman lowered its fourth-quarter 2026 LME aluminum forecast to $2,950 a ton from $3,200 and cut its 2027 average price forecast to $2,700 from $2,950. The bank expects inventories to rebuild through 2027, allowing smelter margins to normalize from recent elevated levels. In early European trading, three-month LME aluminum futures are up 1% at $3,121.50 a ton. (giulia.petroni@wsj.com)

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Gold Rises on Weaker U.S. Jobs Data, Lower Oil Prices -- Market Talk

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July 06, 2026 12:44 ET (16:44 GMT)