BP to Sell U.S. Biogas Unit as Oil Profits Surge — Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is down 5.3% to $79.30 a barrel.

--European benchmark gas is down 2.3% to 54.65 euros a megawatt-hour.

--Copper futures are up 1.5% to $14,050 a metric ton.

--Gold futures are up 1.3% to $4,143.80 a troy ounce.

TOP STORY:

BP to Sell U.S. Biogas Unit as Oil Profits Surge

BP has put its U.S. biogas business up for sale in the British oil major's latest move to pivot back to fossil fuels.

The London-based company said Tuesday it intended to sell Archaea, which it bought in a $4.1 billion deal in 2022 in a bet on growing demand for renewable fuel. BP had already written down the value of the business, which turns landfill trash into renewable natural gas.

OTHER STORIES:

Saudi Aramco's Bumper $33 Billion Profit Gives Kingdom's Finances a Boost

Saudi Aramco, the oil-rich kingdom's moneymaking engine, delivered bumper profits through the first months of the Iran war, despite unprecedented disruptions to its operations.

The key to success: skyrocketing oil prices offset the fewer barrels it was able to sell to the world. Also critical: Aramco used a backup pipeline built during the early 1980s Iran-Iraq war to deliver larger-than-expected amounts of oil to the Red Sea, offsetting the impact of the effective closure of the Strait of Hormuz, where most of its oil and other products formerly transited.

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Hormuz Opening Uncertain After New Strike

A new strike hit a ship moving through the Strait of Hormuz, and negotiations to reopen the waterway ran into a dispute over fees, clouding the outlook for the vital energy corridor even as the Trump administration insisted that a deal could be close.

U.S. Treasury Secretary Scott Bessent said in an interview Tuesday on CNBC that the U.S. and Iran could reach a deal by Wednesday to resolve the dispute in the strait, sending oil prices lower. Later, Secretary of State Marco Rubio said that talks to reopen the strait have made progress but hadn't reached a final agreement.

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McDonald's Aims to Improve Service and Food, and Chose a New U.S. Boss to Help

McDonald's MCD is shaking up its U.S. business, picking a new leader to help boost sluggish domestic sales and improve service and quality at the world's biggest burger chain.

The company on Tuesday appointed Skye Anderson president of its U.S. business, succeeding Joe Erlinger, who had held the role since 2019. It marked a rapid advance for Anderson, a 26-year veteran of the company who was named U.S. chief operating officer in April after serving in a global business role.

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Atkore Agrees to Be Bought by Prysmian for $3.8 Billion, Including Debt

U.S.-listed Atkore ATKR said it agreed to be bought by Italy's Prysmian PRY, in a deal that values the manufacturer of electrical infrastructure products at around $3.8 billion, including debt.

Under the deal, Atkore shareholders will receive $95 a share in cash. This is a roughly 30% premium to the stock's closing price of $72.96 on Friday.

MARKET TALKS:

Lean Hogs Keep Slipping on Steady Outlook -- Market Talk

1033 ET - Lean hog futures on the CME are down 0.3%, continuing the move down from Monday--but lean hogs may steady, says Ben Johnson of New Frontier Capital Markets in a note. One reason may be higher cutout prices reported by the USDA, with carcass cutouts rising 90 cents per hundredweight to $100.91 per cwt. Hams were among the cutouts that rose, climbing $2.19 per cwt to $83.94 per cwt. "Hams bounced...they need to settle in," says Johnson. Live cattle is virtually unchanged. (kirk.maltais@wsj.com)

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Oil Weakness Spills Over to Grains -- Market Talk

1031 ET - Weakness in crude oil prices seem to be pressuring CBOT grains, with the renewable-fuels connection more of a factor versus yesterday. "The weakness in grains appears to mostly be coming from spillover selling related to oil after Bessent made comments that a U.S./Iran deal was coming together, which put oil down $2.50 [a barrel] while equities are set to start the day at new all-time highs," says Doug Bergman of RCM Alternatives in a note. Crude oil is down 5.4%, to roughly $76 a barrel, while Brent crude falls 4.6% to $79.88 a barrel. (kirk.maltais@wsj.com)

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Oil Extends Losses After Bessent Raises Hopes of Imminent Hormuz Deal -- Market Talk

1428 GMT - Oil prices extend losses after U.S. Treasury Secretary Scott Bessent said there's a chance the U.S. will have a deal to open the Strait of Hormuz Tuesday or Wednesday. "We are in talks with the Iranians and I think there is a chance we may have a deal today or tomorrow to open the Strait and move towards a more normalized position in this conflict," Bessent said on CNBC. Brent crude is down 4.6% to $79.89 a barrel, while WTI futures fall 5.3% to $76.11 a barrel. (giulia.petroni@wsj.com)

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Palm Oil Ends Higher on Stronger Soy Oil, Improving Demand Prospects -- Market Talk

1009 GMT - Palm oil closed higher, supported by overnight gains in rival soy oil and improving demand prospects ahead of India's festive season, Kenanga Futures analysts say in a note. However, softer crude prices amid renewed U.S.-Iran talks that may lead to a partial reopening of the Strait of Hormuz for energy shipments may weigh on biodiesel demand expectations and limit further price gains. Kenanga Futures sees support and resistance for the October futures contract at 4,600 ringgit a metric ton and 4,700 ringgit a ton, respectively. The Bursa Malaysia Derivatives contract for October delivery rose 65 ringgit to 4,694 ringgit a ton. (jason.chau@wsj.com)

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USDA Confirms New Flash Soybean Sale to China -- Market Talk

0956 ET - The USDA has confirmed another flash sale of soybean exports to China, following Monday's announcement and sales reported in recent weeks. Today, the USDA says that 132,000 metric tons of soybeans were purchased for delivery to China in the 2026/27 marketing year. Meanwhile, in its Crop Progress report, the government says U.S. soybean acres remained in 63% good-or-excellent condition. That's unchanged from this time last week. CBOT soybean futures are down in early trading, sinking 1.2%. Corn falls 0.9% and wheat is off 1.5%. (kirk.maltais@wsj.com)

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Cocoa Shorts Punished as Analysts Struggle to Identify Rally Trigger -- Market Talk

0846 GMT - The sharp rise in cocoa prices on Monday punished speculators betting against the commodity, though there was no obvious driver of the rally, HCCO analysts write. "The market is once again struggling to identify a clear fundamental trigger for yesterday's movement." New York cocoa jumped over 10% Monday to close at $5,939 a metric ton. More speculative traders took bets against cocoa last week, a move that was "swiftly punished yesterday," the analysts write. Trade flows are dominating moves in cocoa contracts, they say. Cocoa contracts pare gains slightly Tuesday, slipping 0.6% to $5,903 a ton. (josephmichael.stonor@wsj.com)

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Oil's Geopolitical Risk Premium Only Modest Despite Middle East Disruptions -- Market Talk

0802 GMT - Current oil prices include only a modest geopolitical risk premium despite persistent uncertainty in the Middle East, analysts at Goldman Sachs say. The U.S. bank estimates that Brent crude, the global oil benchmark, is fairly valued at around $80 a barrel based on oil inventories, expected demand from OECD countries, its estimate of the long-term value of oil and historical trading patterns linking inventories to prices. Goldman expects Brent to remain in its $80-$90 range until either a new U.S.-Iran deal is reached or the conflict escalates significantly. Still, the physical market is getting tighter amid lower flows from the Persian Gulf and the Red Sea, lower Russian oil exports, and stronger Asian imports. "Our estimated Persian Gulf flows edged down to 36% of prewar levels versus nearly 80% of prewar levels in the first half of July," they say. (giulia.petroni@wsj.com)

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Gold Rises With Focus on U.S.-Iran Signals, Upcoming Jobs Data -- Market Talk

0755 GMT - Gold prices rise in early European trading as investors weigh mixed signals on U.S.-Iran talks and await a series of U.S. jobs data this week. "Markets continue to assess the outlook for U.S. monetary policy following last week's Federal Reserve meeting," analysts at ING say. "While policymakers kept rates unchanged, uncertainty over the policy path remains elevated as investors weigh persistent inflation risks against signs of moderating economic momentum." Upcoming data includes job openings later on Tuesday, the ADP employment report on Wednesday and nonfarm payrolls figures due on Friday. Gold futures in New York are up 0.7% to $4,119.40 a troy ounce after finding support in the previous session from falling oil prices and easing inflationary concerns. (giulia.petroni@wsj.com)

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Iron Ore Prices Flat, May Face Downside Pressure -- Market Talk

0304 GMT - Iron ore prices are volatile early Tuesday while analysts are expecting further downside pressure from weak fundamentals. Global iron-ore shipments remain elevated, leading to a continued buildup in port inventories, Everbright Futures say in a note. On the demand side, hot metal output has declined for consecutive weeks, while steelmakers' profitability has deteriorated, prompting mills to take a cautious approach to raw material purchases, they add. The combination of rising supply and weaker demand has kept port inventories high and weakened cost support for prices, they say. The most actively traded September iron-ore contract on the Dalian Commodity Exchange is flat at CNY702.5 a ton.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

August 04, 2026 12:22 ET (16:22 GMT)