U.S. Pushes to Restore Russian Gas Sales to Europe Via Ukraine — Commodities Roundup

MARKET MOVEMENTS:

--Brent crude is down 6.4% to $106.26 a barrel.

--European benchmark gas drops 8.3% to 95.32 euros a megawatt-hour.

--Copper futures are up 1.5% at $14,345.50 a metric ton.

--Gold futures are up 1.8% to $3,970.80 a troy ounce.

TOP STORY:

U.S. Pushes to Restore Russian Gas Sales to Europe Via Ukraine

The U.S. is backing a quick resumption of Russian natural-gas sales to Europe via pipelines running through Moscow's wartime enemy-Ukraine-as part of negotiations aimed at securing an energy ceasefire ahead of the coming winter, according to U.S., European and Ukrainian officials.

The idea, broached by U.S. envoys Jared Kushner and Steve Witkoff during trips to Moscow and Kyiv in September, would involve selling Russian gas via a U.S. intermediary to circumvent European sanctions-and could create a lucrative opportunity for American investors, people who attended the discussions said.

OTHER STORIES:

Blackstone Leads $3.1 Billion Investment in Mitsubishi's Stake in LNG Canada

A Blackstone-led group has agreed to invest $3.1 billion in Mitsubishi 8058 Corp.'s interest in a natural-gas liquefaction project in Canada.

The U.S. investment firm said Monday that its funds, in partnership with Canadian institutional investors, have agreed to acquire a 49.9% noncontrolling stake in a Mitsubishi subsidiary that holds the Japanese trading house's interest in the liquefaction business in British Columbia, the project known as LNG Canada.

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Oil Prices Fall More Than 5% as Iran Peace Talks Hopes Rise

Oil prices fell more than 5% Monday as renewed diplomatic efforts to end the conflict between the U.S. and Iran eased concerns over Middle East oil supplies, reversing some of last week's gains.

Brent crude futures for January delivery fell 6.1% to $106.52 a barrel, while U.S. West Texas Intermediate futures for December delivery dropped 6.1% to $97.83 a barrel and January futures lost 5.8% to $96.19 a barrel.

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Homeowners Fight Utilities Over Grid Upgrades in Their Backyards

Vicky Hu didn't realize she lived at the heart of the internet until the summer of 2025 when a representative from her utility called and said it might run a transmission line through her backyard and plant a pole there.

"He said, 'Oh, we will minimize the damage, the impact. You will not even notice the pole is in your backyard,'" Hu recalled.

MARKET TALKS:

Oil Down More than 6% on Middle East Diplomatic Breakthrough Hopes -- Market Talk

1534 GMT - Oil and gas prices slide even further in early U.S. trading on rising hopes for a diplomatic breakthrough in Middle East peace talks. Front-month Brent crude falls 6.6% to $105.95 a barrel, while WTI futures are down 6.6% to $97.29 a barrel. The TTF gas contract, Europe's benchmark, drops 8.7% to 94.90 euros a megawatt-hour. The sharp declines come after state-run news agency IRNA reported that Iran's supreme leader gave the government certain powers to pursue negotiations. (giulia.petroni@wsj.com)

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Oil Drops More Than 4% on U.S.-Iran Diplomatic Hopes -- Market Talk

1201 GMT - Oil prices extend losses in afternoon trade, with both benchmarks sliding more than 4% as progressing talks between Iranian officials and Qatari mediators raise hopes for U.S.-Iran peace negotiations. Front-month Brent crude is down 4.4% at $108.46 a barrel, while WTI futures decline 4.5% to $99.40 a barrel. "The latest decline reflects improving expectations surrounding diplomatic negotiations involving Iran, with renewed discussions raising hopes that regional hostilities and disruptions to energy shipments could eventually ease," Naeem Aslam of Zaye Capital Markets says. However, uncertainty remains elevated across global energy markets amid concerns that the U.S. could resume military strikes against Iran following the midterm elections. (giulia.petroni@wsj.com)

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Soybeans Struggle Despite Strong Exports -- Market Talk

0954 ET - Strong export demand for U.S. soybeans has yet to prompt a meaningful bullish response from the market, since traders have largely factored in expectations following China's commitment to buy 920 million bushels--25 million metric tons--of U.S. soybeans, Joe Davis of Futures International says in a note. "The primary concern moving forward is whether the record-sized U.S. crop could ultimately outpace demand during the 2026-27 marketing year, particularly if demand projections are already approaching their limits." Assuming Brazil's crop avoids significant weather problems, maintaining the pace of U.S. exports could prove difficult into 2027, he adds. Soybeans are off 0.5% on CBOT. (anthony.harrup@wsj.com)

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U.S. Natural Gas Futures See Modest Pick-Up -- Market Talk

0937 ET - U.S. natural gas futures are higher in early trading after three straight weeks of declines. Futures are "correcting the oversold condition with profit-taking by fund shorts now seen as buyers," Dennis Kissler of BOK Financial says in a note. Near-term fundamentals remain negative with weather forecasts into mid-November mostly mild for most of the U.S., he adds. "Seasonally prices remain under pressure into the second week of November." Nymex natural gas is up 1.2% at $2.934/mmBtu.(anthony.harrup@wsj.com)

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Oil Futures Slide on Hopes for Middle East Peace Talks -- Market Talk

0909 ET - Crude futures are tumbling to start the week on hopes for U.S.-Iran peace talks. The pullback comes with "escalation longs" at a peak so close to the U.S. midterm elections, Scott Shelton of TP ICAP says in a note. But "there is nothing I see to suggest that this any different that previous peace attempts, and the size of the move is because positions have never been larger as people have their bets on for what is going to happen post U.S. midterms," he adds. "This next step is either escalation or Iran capitulating." WTI is down 6.2% at $97.62 and Brent is off 6.1% at $106.57 a barrel. (anthony.harrup@wsj.com)

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Morgan Stanley Raises Bullish European Gas Price Scenario on Winter Supply Risks -- Market Talk

1054 GMT - Morgan Stanley raised its bullish price scenario for European natural gas to 150 euros a megawatt-hour from 135 euros, citing colder November forecasts, firm Asian LNG demand and geopolitical risks that could tighten winter supplies. TTF prices already climbed above 100 euros a megawatt-hour last week. Europe is entering winter with gas storage at just 73% of capacity, well below the 10-year seasonal average of 90%, leaving the market vulnerable to colder weather and sharp price swings. Strong Asian demand is also making it harder for Europe to attract additional LNG cargoes, increasing the risk of tighter supplies in the first quarter. Morgan Stanley has kept its winter average price forecast at 90 euros a megawatt-hour but says risks remain tilted to the upside, particularly if colder weather accelerates storage withdrawals. (giulia.petroni@wsj.com)

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Copper Prices Should Rise on Tight Supply, Morgan Stanley Says -- Market Talk

1042 GMT - Copper markets are showing signs of tightening supply, with inventories increasingly concentrated in the U.S., high Chinese physical premiums and mounting mine supply challenges, according to Morgan Stanley. About 80% of global visible inventories are now held in the U.S., leaving markets elsewhere increasingly tight. Meanwhile, in China, smelter maintenance and reduced scrap availability are supporting demand for refined copper despite softer end-use consumption. Morgan Stanley expects copper to average $14,800 a metric ton in the fourth quarter and $14,400 in the first quarter of 2027. However, the bank says it is more cautious over next year's full outlook, citing uncertainty around U.S. tariff policy, an expected return to growth in mine supply and the likelihood that U.S. imports will eventually slow. LME three-month copper futures are up 0.9% to $14,251 a metric ton. (giulia.petroni@wsj.com)

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Brent Could Reach $140 a Barrel Next Year in Upside Scenario, Goldman Says -- Market Talk

1027 GMT - Brent crude prices could reach $140 a barrel and average around $130 next year if Gulf oil production remains significantly below prewar levels, according to Goldman Sachs. In this upside scenario, output would be 3.5 million barrels a day below its 2025 average, compared with 1.1 million barrels a day above that level in the bank's base case. "The most likely price-upside triggers are intensified shipping attacks, damage to oil infrastructure, and a more persistent risk premium," analysts at Goldman say. Brent could, however, fall into the $60s if Gulf production recovers faster than expected, rising to 2.5 million barrels a day above 2025 levels, in the event that the U.S. and Iran reach a deal that markets perceive as sustainable. (giulia.petroni@wsj.com)

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Palm Oil Closes Lower, Tracking Crude Weakness -- Market Talk

1014 GMT - Palm oil futures end lower, tracking weakness in crude prices. Weaker oil prices weigh on palm oil's appeal as a biodiesel feedstock. Sentiment also remains cautious amid expectations of rising October stockpiles and uncertainty around a potential Malaysian export tax waiver, say Kenanga Futures analysts in a note. They peg the support and resistance levels for the January futures contract at 4,630 ringgit and 4,750 ringgit, respectively. The Bursa Malaysia Derivatives contract for January delivery declines 31 ringgit to 4,650 ringgit a metric ton. (megan.cheah@wsj.com)

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Goldman Lifts Oil Price Forecast on Middle East Supply Risks -- Market Talk

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November 02, 2026 11:17 ET (16:17 GMT)